First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Investor Day (November 2013)
91 slides from First Industrial Realty Trust's investor day presentation, Nov 12, 2013
Slide 1: Growing Cash Flow, Delivering Value
Growing Cash Flow, Delivering Value First Industrial Investor Day | November 12, 2013
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking
Slide 3: Agenda
Agenda • Real Estate Industry Tenure I. Where We’ve Been and Where We’re Going Bruce Duncan, President and Chief Executive Officer 39 II. The Balance Sheet: Optimizing The Cost of Capital Scott Musil, Chief Financial Officer 24 III. Portfolio Management and Cash Flow Opportunities Bob Walter, Senior
Slide 4: Agenda
Agenda Real Estate Industry Tenure IV. Portfolio Overviews • Peter Schultz, Executive Vice President – East Region 29 • David Harker, Executive Vice President – Central Region 28 • Jojo Yap, Chief Investment Officer and Executive Vice 25 President – West Region V. The FR Opportunity Bruce Duncan, Pr
Slide 5: Where We've Been and Where We're Going
Where We’ve Been and Where We’re Going Bruce Duncan, President and Chief Executive Officer
Slide 6: Where We've Been… 2009–2010
Where We’ve Been… 2009 – 2010 • Addressed liquidity and maturities • Rationalized G&A • Redefined strategy • Set the stage for portfolio refinement Minneapolis, MN (285,000 SF – Acquired 2010) 6
Slide 7: Where We've Been… 2011 To-Date
Where We’ve Been… 2011 – To-Date • Drove occupancy and NOI Occupancy increased 620 bps since YE 2010, 460 bps since Investor Day 2011 • Strengthened balance sheet • Implemented “Addition by Subtraction” • Initiated selective growth • Re-initiated common dividend $0.34/share per annum rate Central PA
Slide 8: Key Portfolio Cash Flow Metrics
Where We’ve Been… Key Portfolio Cash Flow Metrics Occupancy %(1) Cash Rental Rates %(2) (FY) Same Store NOI % (FY) 100 5 10 0 6.3 2009 2010 2011 2012 YTD13 91.2 89.9 5 -2.8 87.9 -5 -4.7 2.5 85.0 -6.9 -10 0.1 82.0 0 -11.8 2009 2010 2011 2012 YTD13 -15 -15.1 -2.7 75 -3.8 2009 2010 2011 2012 3Q13 -5 -2
Slide 9: Relative Performance From 11/9/11 to 10/31/13
Relative Performance From 11/9/11 to 10/31/13 Total Return with Dividends Reinvested 100% 92.6% 90% 80% 70% 60% 58.1% 49.2% 50% 40% 30% 21.1% 20% 10% 0% First Industrial (FR) FTSE NAREIT S&P 500 (SPX) MSCI REIT Index Industrial Index (RMS) 9
Slide 10: Portfolio Snapshot 3Q13
Portfolio Snapshot 3Q13 Geography (by rental income) Asset Types (by rental income) Regional Distribution 13% 36% Light Midwest Industrial 18% 27% Northeast 12% West R&D/Flex 21% 10% Southwest 13% Southeast Bulk ADESA Distribution 3% 47% • 62 MSF in-service • Diverse tenant base – 696 properties − T
Slide 11: Broad Platform and Presence
Broad Platform and Presence Seattle Minneapolis Milwaukee Central & Detroit Eastern PA New Jersey Chicago Salt Lake City Cleveland Indianapolis Balt/Wash Denver Cincinnati St. Louis Nashville Southern California Phoenix Atlanta Dallas % of Rental Top 5 Markets Income Houston So. California 9.7% Tamp
Slide 12: Favorable Industry Fundamentals
Favorable Industry Fundamentals U.S. Industrial Real Estate Annual Completions/Net Absorption (MSF) 400 ■ Completions ■ Net Absorption 300 200 Forecast 100 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (100) (200) (300)
Slide 13: The Top Ten Vacancies from 2011 Investor Day
The Top Ten Vacancies from 2011 Investor Day Lease-Up Opportunities Market Property 3Q11 (SF) 3Q13 (SF) Atlanta 596 Bonnie Valentine 371,525 212,525 Minneapolis 2300 West Highway 13 238,239 0 Atlanta 3060 South Park 226,393 159,193 Atlanta Southmeadow Industrial 191,315 51,765 Central & Eastern PA 2
Slide 14: Drive to +95%! Ten Key Bulk Opportunities
Drive to +95%! Ten Key Bulk Opportunities Total Potential Annual Market Property Vacant SF Cash Flow ($M) Los Angeles First Dominguez Gateway Center 213,544 2.4 Chicago 9501 Nevada 118,670 1.4 Atlanta 596 Bonnie Valentine 212,525 0.7 Central & Eastern PA 18212 Shawley 150,000 0.7 Central & Eastern P
Slide 15: Investment Growth: Leased or Ready for Occupancy
Investment Growth Leased or Ready for Occupancy Estimated Initial GAAP SF (K) $M Yield (%) Comments Leased Acquisitions I-94 Distribution Center, Chicago 627 28 6.7 Acquired 4Q13 Vacant Spec Developments/Acquisitions First Bandini Logistics Center, So. Cal 489 54 6.5 Completed 3Q13 First Logistics C
Slide 16: Investment Growth: In Process, Planned & Additional Land
Investment Growth In Process, Planned & Additional Land Estimated Initial GAAP SF (K) $M Yield (%) Comments In Process First 36 Logistics Center, So. Cal 555 32 6.9 Complete 2Q14 First Figueroa Logistics Center, So. Cal 43 9 3.6 Complete 3Q14 Rust-Oleum Expansion, Chicago 250 9 6.5 Expansion 3Q14 TO
Slide 17: Where We're Going… Strategy for Success
Where We’re Going… Strategy for Success Leasing and Operations Capital Portfolio Management Management Management • Drive to +95% by YE 2015 • Conservative and Flexible • Selective Acquisitions • Grow Rents Balance Sheet • Targeted Development • Normalize TI/LC/CapEx • Return to Investment Opportuni
Slide 18: Growing Cash Flow, Delivering Value
Growing Cash Flow, Delivering Value Cumulative Cash Flow Potential 2014 – 2017 $M Balance Sheet Small Tenant Occupancy, Bumps, TI/LC/CapEx Key Bulk and Additional Opportunities East Region Central Region West Region TOTAL $52.5 to $68.5M $/share $0.46 to $0.60 18
Slide 19: The Balance Sheet: Optimizing The Cost of Capital
The Balance Sheet Optimizing The Cost of Capital Scott Musil, Chief Financial Officer
Slide 20: Progress Made Since Investor Day 2011
Progress Made Since Investor Day 2011 Recast credit facility due September 2012 Raised $100.6M of secured debt at 4.03% interest rate Paid off and retired $86M of secured debt at 7.1% average interest rate Raised approximately $309M of equity Redeemed $200M of Series J & K Preferred Stock
Slide 21: Capital Management
Capital Management (millions) $2,500 ■ Preferred Stock ■ Net Debt $2,309 Net Debt(1) & Pref. Stock/ EBITDA(2) 11.1x $2,000 $1,741 Net Debt(1) & Pref. Stock/ EBITDA(2) 8.6x $1,500 $1,397 Net Debt(1) & Pref. Stock/ EBITDA(2) 6.7x Debt/Total Debt/Total Debt/Total Assets(3) Assets(3) Assets(3) 56.4% 45.
Slide 22: Path to Investment Grade: The Next Step
Path to Investment Grade The Next Step S&P(1) Current Rating: BB+ (stable) “We would consider raising the corporate credit rating again if FCC improves above 2.3x…” Moody’s(2) Current Rating: Ba2 (positive) “Upgrade would depend on First Industrial further growing its occupancy closer to 92%, mainta
Slide 23: Path to Investment Grade: Improving the Ratios
Path to Investment Grade Improving the Ratios Fixed Charge (Debt + Preferred) to Indebtedness Subject to Coverage(1) EBITDA(2) (annualized) Encumbrance(3) 2.5 x 10.0 x 25% 23.4% 9.0 8.8x 21.8% 21.0% 8.0 7.8x 20% 19.0%(4) 2.20x 17.9%(4) 7.0 6.7x (1) 6.0 15% 2.0 1.95x 5.0 4.0 10% 3.0 1.73x 2.0 5% 1.55
Slide 24: Rating Agency Progress Summary
Rating Agency Progress Summary S&P(1) Current Rating: BB+ (stable) “We would consider raising the corporate credit rating again if FCC improves above 2.3x…” • FCC 3Q stand alone at 2.20x Moody’s(2) Current Rating: Ba2 (positive) “Upgrade would depend on First Industrial further growing its occupancy
Slide 25: Laddered Debt Maturities and Blended Interest Rates
Laddered Debt Maturities and Blended Interest Rates(1) (millions) $300 Unsecured Secured $250 6.15% $200 6.49% 4.50% $150 6.56% 7.75% $100 4.03% 4.85% 5.93% $50 5.58% $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1) Excludes LOC outstanding balance of $255M as of 10/24/13, mortgage amortization p
Slide 26: Cumulative Cash Flow Opportunities (2014–2017)
The Balance Sheet Cumulative Cash Flow Opportunities (2014 – 2017) Debt Amount Average Rate Potential Savings If Refinanced: Year 3Q13 ($M)(1) (%) @ 5.5% ($M) @ 4.5% 2014 125 6.56 1.3 2.6 2015 23 5.58 0.0 0.2 2016 238 6.15 1.5 3.9 2017 157 6.49 1.6 3.1 Cumulative $543M 6.32% $4.4M $9.8M (1) Excludes
Slide 27: Portfolio Management and Cash Flow Opportunities
Portfolio Management and Cash Flow Opportunities Bob Walter, Senior Vice President – Capital Markets and Asset Management
Slide 28: Portfolio Management "Addition by Subtraction"
Portfolio Management “Addition by Subtraction” 4Q10 through 3Q13 Sales by Geography (% by sales price) Disposition Highlights Southeast 10% Southwest • $249M overall 16% – 36% over book value • 8.7 MSF buildings West Coast – $220M 4% – $25/SF Northeast • 208 acres of land 5% – $29M and 12% overall •
Slide 29: Upgrading the Portfolio
Upgrading the Portfolio FR Portfolio – Assets Book Value $2.9B (3Q10) GAAP Yield/ LTM Sales Cap Rate + Investments 2010+ = $337M(1) 12% Increase 6.7% - Dispositions 4Q10+ = $249M 9% Decrease 5.8% Total Portfolio Change $586M = 21% Net Change (1) Reflects full development cost of First 36 and First F
Slide 30: Historic Retention (by SF)
Historic Retention (by SF) 100% ---- FR Average ■ Retention 90% 80% 78.8% 75.5% 73.2% 72.4% 71.1% 70% 68.7% 66.4% 64.8% 60% 50% 2006 2007 2008 2009 2010 2011 2012 2013YTD 30
Slide 31: Small Tenant Occupancy and Cash Flow Opportunity
Small Tenant Occupancy and Cash Flow Opportunity(1) The Path to +95% Average 9/30/13 Target In-place Incremental 9/30/13 Occupancy Occupancy Net Rent Cash Flow Property Type MSF % % ($/SF) ($M)(2) Bulk Warehouse 35.4 93.1 96.0 Regional Warehouse 8.2 92.1 96.0 4.30 1.9 Light Industrial 14.8 88.2 92.0
Slide 32: Rental Rate Bumps
Rental Rate Bumps(1) Historical and Embedded Bumps 2013 Trends Amount • 50% of all leases have bumps averaging 4.2% Year ($M) 2011 6.4 • 71% of leases signed (12+ mos.) contained bumps 2012 6.8 averaging 2.7% annualized 2013 5.1 2014 4.8 2015 4.0 2017 Potential Impact $M Change ($M) 2016 3.3 3Q13 NO
Slide 33: The TI/LC/CapEx Opportunity
The TI/LC/CapEx Opportunity (millions) ■ 2011-17 CapEx ■ 2011-17 TI/LC $50 $40 $30 Assumptions:(1) • 92% YE Occ. $20 • 9/30/13 expiration schedule • 4-yr lease term • 70% retention $10 • 95% Occ. YE15 • $0.25/SF in CapEx $0 2011 2012 2013 YTD 2011-13 Average 2014-17 Average Annualized (1) Uses avera
Slide 34: U.S. Market Rent Recovery
U.S. Market Rent Recovery $/SF Torto Wheaton Warehouse Rent Annual Index 7 Previous Peak 6 5 Previous Bottom 4 3 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Source: CBRE Econometric Advisors (CBRE-EA) 3Q 2013 34
Slide 35: The Opportunity to Increase Rents
The Opportunity to Increase Rents(1) $/SF Peak Rent 5 $4.89(1) Rents In-Place Signed Prior to 2009 = $4.67(2) 9.1 MSF Rents In-Place 4 Signed Post 2008 = $4.18(2) 47.2 MSF 2008 3 1/1/09 2013 YTD (1) Assumes no additional sales or acquisitions. (2) Net rent in-place 9/30/13. 35
Slide 36: Portfolio Cash Flow Opportunities by 2017
Portfolio Cash Flow Opportunities by 2017(1) Small Tenant Leasing $8 to $9M Bumps $14 to $19M TI/LC/CapEx (annual) $7 to $8M Total Potential Impact $29 to $36M Potential Rental Rate Growth TBD (1) Assumes no additional sales or acquisitions. 36
Slide 37: Portfolio Overview – East Region
Portfolio Overview – East Region Peter Schultz, Executive Vice President – East Region
Slide 38: 3Q13 Regional Summary – East
3Q13 Regional Summary – East Occupancy 3Q11 3Q13 100% 90% 80% 70% 60% 50% 40% 30% Atlanta Baltimore/DC Central and Eastern Cincinnati Indianapolis Miami New Jersey Tampa Pennsylvania Geography Total Rental Income - $90.3M Property Type within Region (by rental income) % of FR = 34.9% Miami Regional
Slide 39: East Region Opportunities and Challenges
East Region Opportunities and Challenges Atlanta Opportunities: Market still lags but continues to improve Challenges: Supply remains elevated; competitive leasing environment Central & Eastern PA Opportunities: Positive supply/demand dynamic for Class A product; limited new speculative starts Chall
Slide 40: Key Bulk Warehouse Opportunities – East
Key Bulk Warehouse Opportunities – East Total Potential Market Property Vacant SF Annual Cash Flow ($M) Atlanta 596 Bonnie Valentine 212,525 0.7 Atlanta 3060 South Park 159,193 0.5 Miami 6891 Northwest 74th 72,304 0.5 Central & Eastern PA 200 Cascade 127,400 0.7 Central & Eastern PA 301 Railroad 139
Slide 41: 596 Bonnie Valentine, Atlanta
596 Bonnie Valentine Atlanta Summary Square Feet: 848,525 Opportunity SF: 212,525 Clear Height: 32’ Office Finish: 1% Occupancy 9/30/13: 75% FR Occupancy Impact: 34 bps Potential NOI Impact: $0.7M 41
Slide 42: 3060 South Park, Atlanta
3060 South Park Atlanta Summary Square Feet: 657,451 Opportunity SF: 159,193 Clear Height: 31’ Office Finish: 1% Occupancy 9/30/13: 76% FR Occupancy Impact: 26 bps Potential NOI Impact: $0.5M 42
Slide 43: 6891 Northwest 74th, Miami
6891 Northwest 74th Miami Summary Square Feet: 142,804 Opportunity SF: 72,304 Clear Height: 24’ Office Finish: 2% Occupancy 9/30/13: 49% FR Occupancy Impact: 12 bps Potential NOI Impact: $0.5M 43
Slide 44: 200 Cascade, Central & Eastern Pennsylvania
200 Cascade Central & Eastern Pennsylvania Summary Square Feet: 560,728 – two buildings Opportunity SF: 127,400 Clear Height: 18-30’ Office Finish: 8% Occupancy 9/30/13: 77% FR Occupancy Impact: 21 bps Potential NOI Impact: $0.7M 44
Slide 45: 301 Railroad, Central & Eastern Pennsylvania
301 Railroad Central & Eastern Pennsylvania Summary Square Feet: 243,932 Opportunity SF: 139,960 Clear Height: 24’ Office Finish: 1% Occupancy 9/30/13: 43% FR Occupancy Impact: 23 bps Potential NOI Impact: $0.6M 45
Slide 46: 18212 Shawley, Central & Eastern Pennsylvania
18212 Shawley Central & Eastern Pennsylvania Summary Square Feet: 300,000 Opportunity SF: 150,000 Clear Height: 35’ Office Finish: 1% Occupancy 9/30/13: 50% FR Occupancy Impact: 24 bps Potential NOI Impact: $0.7M 46
Slide 47: Additional Opportunities – East
Additional Opportunities – East Total Potential Market Property SF Annual Cash Flow ($M) Central & Eastern PA First Logistics Center @ I-83 708,000 2.9 Central & Eastern PA First 33 Commerce Center 584,000 TBD Central & Eastern PA Covington Land 502,000 TBD TOTAL $2.9M 47
Slide 48: First Logistics Center @ I-83, Central & Eastern Pennsylvania
First Logistics Center @ I-83 Central & Eastern Pennsylvania Summary Square Feet: 708,000 Estimated Investment: $34M Estimated GAAP Yield: 8.4% Completion Date: 4Q13 Potential NOI Impact: $2.9M 48
Slide 49: First 33 Commerce Center, Central & Eastern Pennsylvania
First 33 Commerce Center Central & Eastern Pennsylvania (Potentially Next 24 Months) – 584,000 SF 49
Slide 50: Covington Land, Central & Eastern Pennsylvania
Covington Land Central & Eastern Pennsylvania – 502,000 SF 502,000 SF 50
Slide 51: East Region Summary
East Region Summary Total Potential Annual Key Bulk Warehouse Opportunities Cash Flow ($M) 596 Bonnie Valentine 0.7 3060 South Park 0.5 6891 Northwest 74th 0.5 200 Cascade 0.7 301 Railroad 0.6 18212 Shawley 0.7 TOTAL $3.7M Additional Opportunities First Logistics Center @ I-83 2.9 First 33 Commerce
Slide 52: Portfolio Overview – Central Region
Portfolio Overview – Central Region David Harker, Executive Vice President – Central Region
Slide 53: 3Q13 Regional Summary – Central
3Q13 Regional Summary – Central Occupancy 3Q11 3Q13 100% 90% 80% 70% 60% 50% Chicago Cleveland Dallas/Ft Worth Detroit Houston Milwaukee Minneapolis Nashville St Louis Geography Total Rental Income - $114.4M Property Type within Region (by rental income) % of FR = 44.3% Light St Louis Chicago Region
Slide 54: Central Region Opportunities and Challenges
Central Region Opportunities and Challenges Chicago Opportunities: Increased intermodal traffic and resurgence of manufacturing driving demand; lack of land in O'Hare and I-55 pushing rates and redevelopments Challenges: Illinois taxation and political environment creating uncertain business environ
Slide 55: Key Bulk Warehouse Opportunities – Central
Key Bulk Warehouse Opportunities – Central Total Potential Market Property Vacant SF Annual Cash Flow ($M) Chicago 9501 Nevada 118,670 1.4 St. Louis 8921-8957 Frost 80,000 0.3 TOTAL 198,670 SF $1.7M 55
Slide 56: 9501 Nevada, Chicago
9501 Nevada Chicago Summary Square Feet: 118,670 Opportunity SF: 118,670 Clear Height: 25’ Office Finish: 35% Occupancy 9/30/13: 0% FR Occupancy Impact: 19 bps Potential NOI Impact: $1.4M 56
Slide 57: 8921-8957 Frost, St. Louis
8921-8957 Frost St. Louis Summary Square Feet: 100,000 Opportunity SF: 80,000 Clear Height: 20’ Office Finish: 3% Occupancy 9/30/13: 20% FR Occupancy Impact: 13 bps Potential NOI Impact: $0.3M 57
Slide 58: New Acquisitions and Additional Opportunities – Central
New Acquisitions and Additional Opportunities– Central Total Potential Market Property SF Annual Cash Flow ($M) New Acquisitions - Leased Chicago I-94 Distribution Center 626,784 1.9 Additional Opportunities Chicago 4100 Rock Creek 509,216 1.4 Chicago Rust-Oleum Expansion 250,000 0.6 Houston First N
Slide 59: I-94 Distribution Center, Chicago
I-94 Distribution Center Chicago Summary Square Feet: 626,784 Investment: $28.3M In-Place GAAP Yield: 6.7% NOI Impact: $1.9M 59
Slide 60: 4100 Rock Creek, Chicago
4100 Rock Creek Chicago Houbolt Road Exit Summary Square Feet: 509,216 Initial Investment: $20.5M Estimated GAAP Yield: 6.6% Potential NOI Impact: $1.4M 60
Slide 61: Rust-Oleum Expansion, Chicago
Rust-Oleum Expansion Chicago Summary Square Feet: 250,000 Estimated Investment: $9M Estimated GAAP Yield: 6.5% Completion Date: 3Q14 Annual NOI Impact $0.6M 61
Slide 62: First Northwest Commerce Center, Houston
First Northwest Commerce Center Houston (Next 12 Months) Summary Square Feet: 350,000 Estimated Investment: $20M Estimated GAAP Yield: 8.0% Targeted Completion Date: 1Q15 Potential NOI Impact: $1.6M 62
Slide 63: First Pinnacle Logistics Center, Dallas
First Pinnacle Logistics Center Dallas (Next 12 Months) Summary Square Feet: 598,000 Estimated Investment(1): $26M Estimated GAAP Yield(1): 7.5% Targeted Completion Date: 1Q15 Potential NOI Impact: $1.9M (1) Incremental investment $23M, yield 8.3% 63
Slide 64: Rockdale Land, Nashville – 1,500,000 SF
Rockdale Land Nashville – 1,500,000 SF 64
Slide 65: Central Region Summary
Central Region Summary Total Potential Annual Key Bulk Warehouse Opportunities Cash Flow ($M) 9501 Nevada 1.4 8921-8957 Frost 0.3 TOTAL $1.7M Acquisitions – Leased I-94 Distribution Center $1.9M Additional Opportunities 4100 Rock Creek 1.4 Rust-Oleum Expansion 0.6 First Northwest Commerce Center TBD
Slide 66: Portfolio Overview – West Region
Portfolio Overview – West Region Jojo Yap, Chief Investment Officer and Executive Vice President – West Region
Slide 67: 3Q13 Regional Summary – West
3Q13 Regional Summary – West Occupancy 3Q11 3Q13 100% 90% 80% 70% 60% 50% Denver Phoenix Salt Lake City Southern Seattle California Geography Total Rental Income - $54.0M Property Type within Region (by rental income) Seattle % of FR = 20.8% Light Industrial Northern 29% $2.6 California $2.3 Denver
Slide 68: West Region Challenges and Opportunities
West Region Challenges and Opportunities Denver Opportunities: Increasing rents driven by demand from small to mid-sized businesses Challenges: Heavily reliant on energy and federal government Inland Empire Opportunities: Port activity and supply chain reconfiguration continues to drive absorption C
Slide 69: Key Bulk Warehouse Opportunities – West
Key Bulk Warehouse Opportunities – West Total Potential Market Property Vacant SF Annual Cash Flow ($M) Southern California First Dominguez Gateway Center 213,544 2.4 Phoenix 9180 Buckeye 98,230 0.5 TOTAL 311,774 SF $2.9M 69
Slide 70: First Dominguez Gateway Center, Southern California
First Dominguez Gateway Center Southern California Summary Square Feet: 213,544 Opportunity SF: 213,544 Clear Height: 22’ Office Finish: 7% Occupancy 9/30/13: 0% FR Occupancy Impact: 34 bps Potential NOI Impact: $2.4M 70
Slide 71: 9180 Buckeye, Phoenix
9180 Buckeye Phoenix Summary Square Feet: 197,526 Opportunity SF: 98,230 Clear Height: 29’ Office Finish: 6% Occupancy 9/30/13: 50% FR Occupancy Impact: 16 bps Potential NOI Impact: $0.5M 71
Slide 72: Additional Opportunities – West
Additional Opportunities – West Total Potential Market Property SF Annual Cash Flow ($M) Southern California First Bandini Logistics Center 489,000 3.5 Southern California First 36 Logistics Center 555,000 2.2 Southern California First Figueroa Logistics Center 43,000 0.3 Southern California First N
Slide 73: First Bandini Logistics Center, Southern California
First Bandini Logistics Center Southern California Summary Square Feet: 489,000 Estimated Investment: $54M Estimated GAAP Yield: 6.5% Completion Date: 3Q13 Potential NOI Impact: $3.5M 73
Slide 74: First 36 Logistics Center @ Moreno Valley
First 36 Logistics Center @ Moreno Valley Southern California Summary Square Feet: 555,000 Estimated Investment: $32M Estimated GAAP Yield: 6.9% Completion Date: 2Q14 Potential Annual NOI Impact: $2.2M 74
Slide 75: First Figueroa Logistics Center, Southern California
First Figueroa Logistics Center Southern California Summary Square Feet: 43,000 Estimated Investment(1): $9M Estimated GAAP Yield(1): 3.6% Completion Date: 3Q14 Potential Gross NOI Impact: $0.3M (1) Incremental investment $5M, yield 6.7% 75
Slide 76: First Nandina Logistics Center, Southern California
First Nandina Logistics Center Southern California (Potentially Next 24 Months) – 1,368,000 SF Building Area 1,368,000 76
Slide 77: First Inland Logistics Center – Potential Expansion
First Inland Logistics Center – Potential Expansion Southern California – 394,000 SF 77
Slide 78: Stockton Land, Northern California – 1,200,000 SF
Stockton Land Northern California – 1,200,000 SF 78
Slide 79: West Region Summary
West Region Summary Total Potential Annual Key Bulk Warehouse Opportunities Cash Flow ($M) First Dominguez Gateway Center 2.4 9180 Buckeye 0.5 TOTAL $2.9M Additional Opportunities First Bandini Logistics Center 3.5 First 36 Logistics Center @ Moreno Valley 2.2 First Figueroa Logistics Center 0.3 Fir
Slide 80: The FR Opportunity
The FR Opportunity Bruce Duncan, President and Chief Executive Officer
Slide 81: Growing Cash Flow, Delivering Value
Growing Cash Flow, Delivering Value Cumulative Cash Flow Potential 2014 – 2017 $M Balance Sheet 4.0 to 10.0 Small Tenant Opportunity, Bumps, TI/LC/CapEx 29.0 to 36.0 Key Bulk and Additional Opportunities East Region 6.0 to 7.0 Central Region 5.0 to 6.0 West Region 8.5 to 9.5 Total $52.5 to $68.5M $/
Slide 82: FR Valuation
FR Valuation With our potential cash flow opportunity (and track record), there’s still a significant valuation discount relative to: • Public Peers • Replacement Cost 82
Slide 83: Public Market Valuation Summary
Public Market Valuation Summary(1) FR DCT EGP Occupancy 91.2% 92.8% 95.7% Square Feet (M) 62.0 62.2 32.3 Shares Outstanding (M) 115 335 31 10/31/13 Closing Price $18.07 $7.75 $63.66 Equity Capitalization ($B) 2.1 2.6 1.9 Debt + Preferred Stock ($B) 1.4 1.4 0.9 Total Capitalization ($B) 3.5 4.0 2.8 3
Slide 84: Where We're Going… Strategy for Success
Where We’re Going… Strategy for Success Leasing and Operations Capital Portfolio Management Management Management • Drive to +95% by YE 2015 • Conservative and Flexible • Selective Acquisitions • Grow Rents Balance Sheet • Targeted Development • Normalize TI/LC/CapEx • Return to Investment Opportuni
Slide 85: Growing Cash Flow, Delivering Value Q&A
Growing Cash Flow, Delivering Value Q&A First Industrial Investor Day | November 12, 2013
Slide 86: Biography: Bruce W. Duncan
Biography Bruce W. Duncan President and Chief Executive Officer Named President and Chief Executive Officer of First Industrial Realty Trust, Inc. in January 2009, Bruce Duncan brings more than 30 years of real estate management and investment experience to the Company. Mr. Duncan presently serves a
Slide 87: Biography: Scott Musil
Biography Scott Musil Chief Financial Officer Bringing more than 20 years of experience to the position of First Industrial Realty Trust's Chief Financial Officer, Scott Musil leads all aspects of the Company's finance function including capital markets, treasury, financial planning and reporting, t
Slide 88: Biography: Jojo Yap
Biography Jojo Yap Chief Investment Officer and Executive Vice President, West Region Mr. Yap is the Chief Investment Officer and a co-founder of First Industrial Realty Trust. He directs the overall investment and disposition strategy of the Company, including the approval process, for both on- bal
Slide 89: Biography: Robert Walter
Biography Robert Walter Senior Vice President, Capital Markets and Asset Management With more than 25 years of senior management and real estate finance experience, Bob Walter joined First Industrial Realty Trust in 2007 to lead the Company's capital raising efforts. As Senior Vice President of Capi
Slide 90: Biography: Peter Schultz
Biography Peter Schultz Executive Vice President, East Region Bringing nearly 30 years of commercial real estate management experience to the role of Executive Vice President, Peter Schultz is focused on creating sophisticated industrial real estate solutions for customers in the Eastern U.S. As Exe
Slide 91: Biography: David Harker
Biography David Harker Executive Vice President, Central Region As Executive Vice President for First Industrial Realty Trust, Mr. Harker is responsible for all aspects of the Company's operations including leasing, acquisition, and divestment activity in the Central Region, which spans from Michiga
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