First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Bank of America 2016 Global Real Estate Conference
31 slides from First Industrial Realty Trust's conference presentation, September 2016
Slide 1: Bank of America 2016 Global Real Estate Conference
Bank of America 2016 Global Real Estate Conference September 2016
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains 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 for such forward-looking statements to be covered by the safe harbor provisions for forward-looking sta
Slide 3: 1H 2016 Update
1H 2016 UPDATE • Occupancy of 95.8% • Cash same store NOI ↑ 8.2% and cash rental rates ↑ 5.1% • 1.6 MSF of new development leasing • Raised $125M of equity in April • ≈ $210M new planned and under construction developments in New Jersey, Chicago, Southern California, and Phoenix – High 6% targeted G
Slide 4: Long-Term Vision
LONG-TERM VISION USING PLATFORM TO DRIVE SHAREHOLDER VALUE Talented people/platform to create/add value Strong balance sheet Active portfolio management Operational excellence and best-in-class customer service Continual focus on driving AFFO Growth through development and select acquisitions 4
Slide 5: Our Progress – The FR Timeline
OUR PROGRESS – THE FR TIMELINE Today - Drive NOI/AFFO 2013 - Portfolio enhancement - Drive occupancy - Development focused and NOI/AFFO investment - Portfolio refinement - Reduce debt costs 2011 - Expanding - Grow the dividend - Drive occupancy and investment NOI/AFFO - Reduce debt costs - Strengthe
Slide 6: Portfolio and Platform
PORTFOLIO AND PLATFORM SF BY PROPERTY TYPE(1) BROAD MARKET PRESENCE Light R&D/ Seattle Industrial Flex 16% 4% Minneapolis Regional Milwaukee Warehouse Detroit Pennsylvania Bulk 13% Warehouse New Jersey 67% Chicago Salt Lake City Cleveland Indianapolis Baltimore/ Cincinnati Washington Denver St. Loui
Slide 7: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS Occupancy %(1) Cash Rental Rates %(2) Same Store NOI %(3) 100 10 10 8.2 96.1 95.8 94.3 5.1 5 3.5 6.3 92.9 2.2 5.2 89.9 5 4.2 87.9 0 '11 '12 '13 '14 '15 1H16 2.7 -3.4 -5 0.1 -4.7 0 '11 '12 '13 '14 '15 1H16 -10 -11.8 75 '11 '12 '13 '14 '15 2Q16 -15 -5 (1) Period End. (2
Slide 8: Why Industrial Real Estate?
WHY INDUSTRIAL REAL ESTATE? • Expanding investment • Increased globalization, • Constrained financing due from new, sophisticated consumption and to Basel III investors urbanization • Non-institutional • Strong capital flows due • Broad-based demand with developers have not re- to under-allocation e
Slide 9: Strategy for Success
STRATEGY FOR SUCCESS Leasing and Operations Capital Portfolio Management Management Management • 95%+ Average Occupancy • Strong Balance Sheet • Grow Rents/Bumps • Development Focus • Investment Grade • Reduce TI/LC/CapEx • Selective Acquisitions • Capital Availability and • Best-In-Class Customer S
Slide 10: Significant Portfolio Transformation ($M)
SIGNIFICANT PORTFOLIO TRANSFORMATION Σ of Investment(2) 300 Dispositions Development (Starts) Acquisitions Land Inventory = $1.09B @ 6.4% 250 16 10 35 200 15 119 150 0 67 22 100 17 214 47 117 117 128 50 31 50 ($M) 36 0 17 (70) (86) (50) (87) (103) (101) (145) (158) (100) Σ of Sales = $749M @ 6.0% (1
Slide 11: 2015 Property Acquisitions
2015 PROPERTY ACQUISITIONS GAAP Expected Name Market SF Investment(1) Occupancy $/SF GAAP (M) Yield(1) 6150 Sycamore Canyon Blvd. Southern CA 171,619 $14.8 100% $86 5.0% 145 West 134th Street Southern CA 44,644 $5.7 100% $121 5.1%(2) 17825 Indian Street Southern CA 366,117 $29.0 100% $79 4.8% 750 Ga
Slide 12: 2015 Property Acquisitions
2015 PROPERTY ACQUISITIONS 6150 Sycamore Canyon Blvd. | Inland Empire - 171,619 SF 145 West 134th Street | Los Angeles – 44,644 SF 17825 Indian Street | Inland Empire - 366,117 SF 750 Gateway Blvd. | Dallas – 79,887 SF Energy Commerce Business Park | Houston – 287,560 SF 400-500 Old Post Rd | Baltim
Slide 13: 2015 Developments Placed In-Service
2015 DEVELOPMENTS PLACED IN-SERVICE GAAP Expected Stabilized % Name Market SF Investment $/SF GAAP Cash Flow Leased ($M) Yield(1) ($M) First Park @ Ocean Ranch Southern CA 171,676 $20.5 $119 6.7% $1.4 100% Bldgs. 1 and 2 First 36 Logistics Center Southern CA 555,670 $33.4 $60 6.8% $2.3 100% First Pi
Slide 14: 2015 Developments Placed In-Service
2015 DEVELOPMENTS PLACED IN-SERVICE First Park @ Ocean Ranch I & II | San Diego – 171,676 SF First 36 Logistics Center | Inland Empire – 555,670 SF First Pinnacle Industrial I & II | Dallas – 598,445 SF Interstate North Business Pk II | Minneapolis – 142,290 SF First Northwest Commerce Cntr | Housto
Slide 15: Developments Placed in Service, in Process or in Lease-Up – 2016
DEVELOPMENTS PLACED IN SERVICE, IN PROCESS OR IN LEASE-UP – 2016 Estimated Stabilized Estimated GAAP $/SF(2) Cash % Estimated Name Market SF GAAP Investment Flow Leased Completion Yield(1) ($M) ($M) First Arlington Commerce Completed Dallas 153,200 $9.5 $62 6.8% $0.6 100% Center @ I-20 3Q15 Complete
Slide 16: Developments 2016
DEVELOPMENTS 2016 First Arlington Commerce Center @ I-20 First 33 Commerce Center Dallas – 153,200 SF Pennsylvania – 584,760 SF First Park @ Ocean Ranch – Building 3 First Park Tolleson First Park 94 – Building I San Diego – 65,600 SF Phoenix – 386,100 SF Chicago – 601,439 SF First Arlington Commerc
Slide 17: 2016 Investments To Date
LN cB) ~Y far) (an) ie) ke WY ~Y Cc cB) = ~ WN cD) > = WW a oO N
Slide 18: First Florence Logistics Center
FIRST FLORENCE LOGISTICS CENTER FLORENCE, NJ Summary Square Feet: 577,200 Percent Leased: 0% Estimated GAAP Investment: $38.5M/ $67/SF Estimated GAAP Yield: 6.9% Target Completion Date: 1Q17 18
Slide 19: First Reyes Logistics Center BTS
FIRST REYES LOGISTICS CENTER BTS LOS ANGELES, CA Summary Square Feet: 63,450 Percent Leased: 100% Estimated GAAP Investment $17.6 Estimated GAAP Yield: 5.1% Economic Yield: 4.1% Target Completion Date: 4Q16 19
Slide 20: First Park 94 – Building 2
FIRST PARK 94 – BUILDING 2 SE WISCONSIN / CHICAGO Summary Square Feet: 602,348 Percent Leased: 0% Estimated GAAP Investment: $30.0 / $50/SF Estimated GAAP Yield: 7.9% Estimated Completion: 2Q17 20
Slide 21: First Park @ PV 303 Land with Option Parcel
FIRST PARK @ PV 303 LAND WITH OPTION PARCEL GOODYEAR, AZ Summary Square Feet: 618,277 Percent Leased: 0% Estimated GAAP Investment: $32.8M / $55/SF Estimated GAAP Yield: ≈ Mid to high 7% Construction Date: 3Q16 Target Completion Date: 1Q17 21
Slide 22: First Sycamore @ 215 Logistics Center
FIRST SYCAMORE @ 215 LOGISTICS CENTER INLAND EMPIRE EAST, CA Summary Square Feet: 242,580 Percent Leased: 0% Estimated GAAP Investment: $17.8M/ $73/SF Estimated GAAP Yield: ≈ 6.0% Target Construction Date: 3Q16 Target Completion Date: 1Q17 22
Slide 23: The Ranch by First Industrial
THE RANCH BY FIRST INDUSTRIAL INLAND EMPIRE WEST, CA Summary Square Feet: 936,000 Percent Leased: 0% Estimated GAAP Investment: $88.0M / $94/SF Estimated GAAP Yield: ≈ Mid to low 6% Target Construction Date: 3Q/4Q16 Target Completion Date: 3Q17 23
Slide 24: 8751 Skinner Court – Acquisition
8751 SKINNER COURT – ACQUISITION ORLANDO, FL Summary Square Feet: 125,775 GAAP Investment: $9.3M / $74/SF GAAP Yield: 7.8% % Leased: 100% 24
Slide 25: 4473 Shader Road – Acquisition
4473 SHADER ROAD – ACQUISITION ORLANDO, FL Summary Square Feet: 199,100 Percent Leased: 100% GAAP Investment: $14.1M / $71/SF Stabilized Economic Yield: 6.6% 25
Slide 26: 1445 Engineer Street – Acquisition
1445 ENGINEER STREET – ACQUISITION SAN DIEGO, CA Summary Square Feet: 99,307 Percent Leased: 100% GAAP Investment: $12.1M / $122/SF GAAP Yield: 6.2% Closing Date: 3Q16 26
Slide 27: Balance Sheet
First Bandini Logistics Center – Los Angeles, CA BALANCE SHEET
Slide 28: Strong Balance Sheet
STRONG BALANCE SHEET AS OF JUNE 30, 2016 FIXED VS. FLOATING SUMMARY Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (2) Secured 506 38 5.4% 3.8 Fixed Unsecured(1) 813 62 4.1% 4.6 Floating 89% 11% Total 1,319 4.6% 4.3 W/A interest rate without LOC 4.9% MATURITIES Secured Debt Unsecured
Slide 29: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage Unsecured Leverage 45 43.9% 3.5 3.36x 3.42x 3.17x 2.99x 3.00x 40.4% 40.6% 3.0 40 37.5% 2.5 35 33.9% 2.0 30 1.5 2012A 2013A 2014A 2015A 2Q16A 2012A 2013A 2014A 2015A 2Q16A Secured Leverage Fixed Charge Coverage 30 3.5 25.2% 25 3.0 2.76x 2.92x 21.3% 2
Slide 30: Conclusion
CONCLUSION Transformation • Strong balance sheet Creating stability for future • Refined portfolio economic cycles with • Tested platform Performance • Bumps, increasing market rents and lower On-going cash flow growth TI/LC/CapEx opportunity via • Lease up of development portfolio • Best-in-class c
Slide 31: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA
First Industrial Realty Trust — Bank of America 2016 Global Real Estate Conference on 6ix