First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — REIT Week: NAREIT's Investor Forum 2015
42 slides from First Industrial Realty Trust's conference presentation, June 2015
Slide 1: REIT Week NAREIT's Investor Forum
REIT Week NAREIT’s Investor Forum June 2015
Slide 2: Safe Harbor
Safe Harbor This presentation may contain 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 statements to be covered by the safe harbor provisions for forward-looking statements conta
Slide 3: Why FR?
Why FR? Tested Leadership and Platform •Focused strategy: Deliver sustainable cash flow growth through leasing and disciplined portfolio and capital management •Local market expertise for management, leasing, acquisitions, development and sales •Track record of industry-leading customer service Stro
Slide 4: Broad Platform and Presence
Broad Platform and Presence Seattle Minneapolis Milwaukee Detroit Central PA New Jersey Chicago Philadelphia Salt Lake City Cleveland Balt/Wash Indianapolis Denver Cincinnati St. Louis Top 5 Markets(1) % of Rental (as of 1Q15) Income Southern California Nashville So. California 12.3% Phoenix Central
Slide 5: Key Portfolio Cash Flow Metrics
Key Portfolio Cash Flow Metrics Occupancy %(1) Cash Rental Rates %(2) Same Store NOI %(3) 100 5 10 2.2 2.6 94.3 94.3 92.9 0 6.3 6.2 2010 2011 2012 2013 2014 1Q15 89.9 5 4.2 -3.4 87.9 -5 -4.7 2.7 85.0 -10 0.1 0 -11.8 2010 2011 2012 2013 2014 1Q15 -15 -15.1 -2.7 75 2010 2011 2012 2013 2014 1Q15 -5 -20
Slide 6: New Development – Completed or In Process
New Development – Completed or In Process Estimated Total Yield % Estimated Name Market SF Investment $/SF (GAAP) Leased Completion Completed First 36 Logistics Center S. California 555,670 $31.6M $57 6.9% 0% 2Q14 First Northwest Commerce Completed Center Houston 351,672 $19.7M $56 8.1% 78% 4Q14 Int
Slide 7: First 36 Logistics Center @ Moreno Valley
First 36 Logistics Center @ Moreno Valley Summary Square Feet: 555,670 Investment: $31.6M / $57/SF Estimated Yield(1): 6.9% Completed: 2Q14 7 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis.
Slide 8: First Northwest Commerce Center
First Northwest Commerce Center Summary Square Feet: 351,672 Estimated Investment: $19.7M / $56/SF Estimated Yield(1): 8.1% Completed: 4Q14 8 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis.
Slide 9: Interstate North Business Park II
Interstate North Business Park II Summary Square Feet: 142,290 Estimated $10.7M / $75/SF Investment: Estimated Yield(1): 7.3% Completed: 4Q14 9 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis.
Slide 10: First Pinnacle Industrial Center
First Pinnacle Industrial Center Summary Square Feet: 598,445 Estimated Investment: $25.7M / $43/SF Estimated Yield(1): 7.5% Completion By: 2Q15 10 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis. Two building project (376,601 SF and 221,844 SF).
Slide 11: First Arlington Commerce Center @ I-20
First Arlington Commerce Center @ I-20 Summary Square Feet: 153,187 Estimated $9.5M / $62/SF Investment: Estimated Yield(1): 6.4% Completion By: 2Q15 11 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis.
Slide 12: First 33 Commerce Center
First 33 Commerce Center Summary Square Feet: 584,760 Estimated Investment: $43.8M / $75/SF Estimated Yield(1): 6.4% Completion By: 4Q15 12 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis. Two building project (341,400 SF and 243,360 SF).
Slide 13: First Park @ Ocean Ranch
First Park @ Ocean Ranch Summary Square Feet: 237,276 $27.5M / Estimated Investment: $116/SF Estimated Yield(1) : 6.7% Completion By: 4Q15 13 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis.
Slide 14: First Park @ Ocean Ranch 1Q15 Start – Total of 237,000 SF, 3 Buildings
First Park @ Ocean Ranch 1Q15 Start – Total of 237,000 SF, 3 Buildings(1) First Park @ Ocean Ranch 14 (1) Estimated yield of 6.7% based on first year stabilized NOI over GAAP investment basis; targeted completion of 4Q15.
Slide 15: First Park Tolleson
First Park Tolleson Summary Square Feet: 386,100 Estimated Investment: $21.1M / $55/SF Estimated Yield(1): 7.8% Occupancy(1): 44% Completion Date: 1Q16 15 (1) Estimated yield based on first year stabilized NOI over GAAP investment basis.
Slide 16: Development Pipeline
Development Pipeline Key Sites Market Developable SF (K) Rockdale Land Nashville, TN 1,500 First Nandina Logistics Center Inland Empire, CA 1,450 Stockton Land Stockton, CA 1,200 Oakley Distribution Center Atlanta, GA 924 Covington Land Gouldsboro, PA 502 First Grand Parkway Commerce Center Houston,
Slide 17: Rockdale Land Nashville, TN – up to 1.5 MSF
Rockdale Land Nashville, TN – up to 1.5 MSF 17
Slide 18: First Nandina Logistics Center Inland Empire, CA - Up to 1.45 MSF
First Nandina Logistics Center Inland Empire, CA - Up to 1.45 MSF 1,388,210 SF 18
Slide 19: First Nandina Logistics Center
First Nandina Logistics Center First 36 First San Michelle First Nandina Logistics Center 19
Slide 20: Stockton Land Stockton, CA – 1.2 MSF
Stockton Land Stockton, CA – 1.2 MSF 20
Slide 21: Oakley Distribution Center Atlanta, GA – 924,000 SF
Oakley Distribution Center Atlanta, GA – 924,000 SF 21
Slide 22: Covington Land Covington, PA – 502,000 SF
Covington Land Covington, PA – 502,000 SF Proposed Building 502,000 SF 22
Slide 23: First Grand Parkway Commerce Center Houston, TX – Up to 828,000 SF
First Grand Parkway Commerce Center Houston, TX – Up to 828,000 SF 23
Slide 24: First Grand Parkway Commerce Center
First Grand Parkway Commerce Center First Grand Parkway 24
Slide 25: First San Michelle Logistics Center Inland Empire, CA – 189,000 SF
First San Michelle Logistics Center Inland Empire, CA – 189,000 SF Building 4 189,000 25
Slide 26: First San Michelle Logistics Center
First San Michelle Logistics Center First 36 First San Michelle First Nandina Logistics Center 26
Slide 27: 2014 Placed In Service Developments
2014 Placed In Service Developments Estimated Total Yield % Name Market Investment SF $/SF (GAAP) Occupancy First Logistics Center @ I-83 Central PA $35.3M 708,000 $50 8.4% 100% First Bandini Logistics Center S. California $55.0M 489,038 $112 6.1% 100% Rust-Oleum Expansion(1) Chicago $8.4M 250,243 $
Slide 28: First Logistics Center @ I-83
First Logistics Center @ I-83 Summary Square Feet: 708,000 Investment: $35.3M / $50/SF Estimated Yield: 8.4% Completed / Leased: 4Q13 / 3Q14 28
Slide 29: First Bandini Logistics Center
First Bandini Logistics Center Summary Square Feet: 489,038 Investment: $55.0M / $112/SF Estimated Yield: 6.1% Completed / Leased: 4Q13 / 4Q14 29
Slide 30: Rust-Oleum Expansion
Rust-Oleum Expansion Summary Square Feet: 250,243 Investment: $8.4M / $34/SF Estimated Yield: 6.7% Completed / Leased: 2Q14 / 2Q14 30
Slide 31: First Figueroa Logistics Center
First Figueroa Logistics Center Summary Square Feet: 43,485 Investment: $8.5M / $196/SF Estimated Yield: 4.0% Completed / Leased 2Q14 / 2Q14 31
Slide 32: Interstate North Business Park I
Interstate North Business Park I Summary Square Feet: 96,787 Investment: $7.6M / $79/SF Estimated Yield: 9.4% Completed / Leased: 4Q14 / 4Q14 32
Slide 33: 2Q15 Acquisition 6150 Sycamore Canyon – Inland Empire
2Q15 Acquisition 6150 Sycamore Canyon – Inland Empire Summary Square Feet: 171,619 Purchased Price: $14.8M / $86/SF GAAP Yield: 5.0% Acquisition Date: 2Q15 33
Slide 34: 2Q15 Acquisition 145 W 134th Street – Los Angeles
2Q15 Acquisition 145 W 134th Street – Los Angeles Summary Square Feet: 44,644 Purchase Price: $5.4M / $120/SF GAAP Yield: 5.1% Acquisition Date: 2Q15 34
Slide 35: 2014 Property Acquisitions
2014 Property Acquisitions Purchase Price Per GAAP Name Market SF Price SF Yield First Arrowhead Business Center Phoenix 220,324 $18.2M(2) $83 6.6% Rivertown Distribution Center Minneapolis 251,968 $13.4M $53 7.3% Aldrin Distribution Center Minneapolis 200,000 $12.0M $60 6.7% 4710 Guasti Road Inland
Slide 36: 2014 Property Acquisitions
2014 Property Acquisitions First Arrowhead Business Center * Phoenix, AZ * 220,324 SF 4710 Guasti Road * Inland Empire, CA * 133,342 SF Rivertown Distribution Center * Minneapolis, MN * 251,968 SF 16875 Heacock Street * Inland Empire, CA * 225,450 SF Aldrin Distribution Center * Minneapolis, MN * 20
Slide 37: Sales Summary
Sales Summary 2014 Building SF 2.0 MSF Price $103M ($51/SF without land) Average Occupancy 77% Trailing Twelve-Month Yield 6.0% Stabilized Yield 7.4% Occupancy Impact 50 bps 2015 through April Building SF 685K SF @ $48/SF Price $32.6M / $0.5M (Land) Average Occupancy 87% In-place Yield 4.9% Stabiliz
Slide 38: Upgrading the Portfolio Through April 2015
Upgrading the Portfolio Through April 2015 FR Portfolio (3Q10) Investments (2010+) Dispositions (4Q10+) $2.9B 68.9 MSF + $575M+ (1) 9.4 MSF - $461M 12.7 MSF = 36% by $ = 32% by SF 6.8% Cap (GAAP) 5.9% Cap (TTM) (1) Reflects full development cost of First 36, First Figueroa, First Northwest, Firs
Slide 39: Improved Financial Profile Significantly Strengthened Balance Sheet
Improved Financial Profile Significantly Strengthened Balance Sheet Net Debt/Preferred Stock: Reduced by approximately $983M through 1Q15 $2,309 (millions) Net Debt & $2,000 Pref. Stock/ EBITDA 11.1x $1,800 $1,744 Net Debt & Pref. Stock/ $1,600 EBITDA 8.8x $1,400 $1,326 Net Debt & Pref. Stock/ EBITD
Slide 40: Laddered Debt Maturities
Laddered Debt Maturities (as of March 31,2015) (millions) Secured Unsecured $300 4.23% 3.12% $250 6.24% $200 6.42% 4.56% $150 $100 4.03% 7.64% 7.58% $50 5.58% $0 (1) (2) 2015 2016 2017 2018 2019 2020 2021 2022 Thereafter (1) Assumes 4+1 maturity for LOC renewal. 40 (2) Assumes 2015 prepayment of a $
Slide 41: Strategy for Success
Strategy for Success Leasing and Operations Capital Portfolio Management Management Management • Drive to 95% by YE 2015 • Conservative and • Targeted Development • Grow Rents Flexible Balance Sheet Opportunities • Normalize TI/LC/CapEx • Strong Credit Ratios • Selective Acquisitions • Customer Serv
Slide 42: Q&A June 2015
FIRST INDUSTRIAL REALTY-TRUST
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