First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Bank of America Merrill Lynch 2018 Global Real Estate Conference
37 slides from First Industrial Realty Trust's conference presentation, September 2018
Slide 1: Bank of America Merrill Lynch 2018 Global Real Estate Conference
Bank of America Merrill Lynch 2018 Global Real Estate Conference SEPTEMBER 2018
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: Strategy for Success
STRATEGY FOR SUCCESS Maximize the economics on every lease Focus on higher rent growth assets and markets Continue to reduce allocation to low barrier markets Emphasize development as long as yields and demand justify Maintain balance sheet discipline 3
Slide 4: Portfolio and Platform
PORTFOLIO AND PLATFORM AS OF JUNE 30, 2018 Square Footage Percentage by Property Type of Rental Income(1) 0.8% Seattle Bulk Minneapolis/St. Paul Warehouse Central/Eastern PA 72% 6.2% Milwaukee Detroit 1.3% 3.3% New Jersey 1.8% 9.9% 5.6% 6.9% Chicago Northern California 3.4% Cleveland 0.7% 3.8% 5.0%
Slide 5: 2018 Highlights to Date
2018 HIGHLIGHTS TO DATE • Occupancy of 96.9% at 2Q18, up 120 basis points from 2Q17 • Cash Same Store NOI grew 5.4% in 1H18 • Cash Rental Rates were up 8.4% in 1H18 • Leased 62% of The Ranch by First Industrial business park in the Inland Empire West • Announced four new development starts totaling
Slide 6: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS 8.0% cash rental rate change on 2018 rollovers signed as of July 25th.(4) Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 8.6 8.4 97.3 6.6 96.9 6.1 5.2 5.4 96.1 96.0 5 5 4.2 4.4 3.5 2.7 94.3 2.2 92.9 0 0 '13 '14 '15 '16 '17 1H18 '13 '14 '15 '1
Slide 7: U.S. Net Absorption and New Completions
U.S. NET ABSORPTION AND NEW COMPLETIONS MINIMAL E-COMMERCE TAILWIND FORECAST 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -100 -200 1H18 Net Absorption 105 MSF Completions 93 MSF -300 COMPLETIONS NET ABSORPTION Source: CBRE-EA Industrial
Slide 8: Investment Activity
INVESTMENT ACTIVITY
Slide 9: Current Development Projects
CURRENT DEVELOPMENT PROJECTS First Joliet Logistics Center First Glacier Logistics Center 355,199 SF First Logistics Center @ 66,751 SF First Aurora I-78/81 – Building A Commerce Center 738,720 SF 555,840 SF First Logistics Center @ I-78/81 – Building B 250,200 SF First Perry Logistics Center 239,95
Slide 10: Current Development Projects
CURRENT DEVELOPMENT PROJECTS Estimated GAAP Estimated % Estimated Property Market SF Investment $/SF Cash Leased Completion ($M) Yield(1) The Ranch by First Inland 936,000 87.6 94 62% 7.2% Complete Industrial Empire First Park @ PV 303 – Phoenix 643,798 35.8 56 0% 7.9% Complete Building B First Joli
Slide 11: The Ranch by First Industrial
THE RANCH BY FIRST INDUSTRIAL INLAND EMPIRE SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 936,000 $87.6M $94 7.2% 62% Complete 11
Slide 12: First Park @ PV 303 – Building B
FIRST PARK @ PV 303 – BUILDING B PHOENIX SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 643,798 $35.8M $56 7.9% 0% Complete 12
Slide 13: First Joliet Logistics Center
FIRST JOLIET LOGISTICS CENTER CHICAGO SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 355,199 $21.2M $60 7.1% 0% 3Q18 13
Slide 14: First 290 @ Guhn Road
FIRST 290 @ GUHN ROAD HOUSTON SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 126,000 $9.1M $72 7.0% 0% 3Q18 14
Slide 15: First Logistics Center @ I-78/81 – Bldg. A
FIRST LOGISTICS CENTER @ I-78/81 – BLDG. A CENTRAL PENNSYLVANIA SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 738,720 $48.9M $66 6.8% 0% 4Q18 15
Slide 16: First Logistics Center @ I-78/81 – Bldg. B
FIRST LOGISTICS CENTER @ I-78/81 – BLDG. B CENTRAL PENNSYLVANIA SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 250,200 $17.5 $70 6.9% 0% 4Q18 16
Slide 17: First Nandina Logistics Center
FIRST NANDINA LOGISTICS CENTER INLAND EMPIRE SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 1,387,899 $89.3M $64 7.5% 0% 4Q18 17
Slide 18: First Nandina Logistics Center
FIRST NANDINA LOGISTICS CENTER INLAND EMPIRE 16875 HEACOCK ST FIRST INLAND LOGISTICS CENTER FIRST 36 LOGISTICS CENTER FIRST SAN MICHELE LOGISTICS CENTER FIRST NANDINA LOGISTICS CENTER 17825 INDIAN ST 18
Slide 19: First Glacier Logistics Center
FIRST GLACIER LOGISTICS CENTER SEATTLE SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 66,751 $9.9 $148 5.5% 0% 2Q19(1) (1) Expected third quarter 2018 start. 19
Slide 20: First Perry Logistics Center
FIRST PERRY LOGISTICS CENTER INLAND EMPIRE SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 239,950 $20.5M $85 5.9% 0% 2Q19(1) (1) Expected third quarter 2018 start. 20
Slide 21: First Aurora Commerce Center – Bldg. D
FIRST AURORA COMMERCE CENTER – BLDG. D DENVER SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 555,840 $38.3M $69 7.2% 0% 2Q19(1) (1) Expected third quarter 2018 start. 21
Slide 22: First Park 121
FIRST PARK 121 DALLAS SUMMARY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 345,280 $27.5M $80 7.1% 0% 2Q19(1) (2 Buildings) (1) Expected third quarter 2018 start. 22
Slide 23: Property Acquisitions
PROPERTY ACQUISITIONS 2018 6407 S 210th St 35,132 SF 28545 Livingston Ave 170,556 SF 4401 Shader Rd 93,608 SF First Park @ Ocean Ranch II 225,489 SF 23
Slide 24: Property Acquisitions
PROPERTY ACQUISITIONS 2018 Purchase Estimated Property Market SF Price $/SF % Leased Cash ($M) Yield(1) 6407 S. 210th St Seattle 35,132 $5.6 $159 100% 5.7% First Park @ San Diego 225,489 $36.7 $163 70% 5.4% Ocean Ranch II 4401 Shader Rd Orlando 93,608 $8.7 $93 100% 5.7% 28545 Livingston Southern 170
Slide 25: 6407 S 210th Street
6407 S 210th STREET SEATTLE SUMMARY Cash % SF Purchase Price $/SF Yield Leased 35,132 $5.6M $159 5.7% 100% 25
Slide 26: First Park @ Ocean Ranch II
FIRST PARK @ OCEAN RANCH II SAN DIEGO SUMMARY Cash % SF Purchase Price $/SF Yield Leased 225,489 (3 bldgs.) $36.7M $163 5.4% 70% 26
Slide 27: 4401 Shader Road
4401 SHADER ROAD ORLANDO SUMMARY Cash % SF Purchase Price $/SF Yield Leased 93,608 $8.7M $93 5.7% 100% 27
Slide 28: 28545 Livingston Ave
28545 LIVINGSTON AVE SOUTHERN CALIFORNIA SUMMARY Cash % SF Purchase Price $/SF Yield Leased 170,556 $20.7M $121 5.6% 0% 28
Slide 29: First Park @ PV 303 – Joint Venture
FIRST PARK @ PV 303 – JOINT VENTURE • Acquisition of 532 net acres at PV 303 Business Park in Phoenix • $49M (≈ $2 per land foot), FR share: 49% • Partner: Diamond Realty, the US real estate arm of Mitsubishi Corporation • Speculative and build-to-suit development plus one-off land sales to users •
Slide 30: First Park @ PV 303 – Joint Venture
FIRST PARK @ PV 303 – JOINT VENTURE 30
Slide 31: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS AS OF JULY 31, 2018 Developable Site Market Acres SF First Park 94 Chicago 154.0 3,200,000 First Aurora Commerce Center Denver 93.6 1,334,160 First Park Fairburn Atlanta 68.7 1,260,000 First Mountain Creek Dallas 104.5 1,200,000 Distribution Center Rockdale Nashv
Slide 32: Balance Sheet
BALANCE SHEET
Slide 33: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS (DEBT + PREFERRED) TO EBITDA TOTAL LEVERAGE(1) (annualized) 6.5 45 6.2x 40.6% 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 30 5.0 4.9x 4.8x 27.6% 26.8% 25 4.5 2014 2015 2016 2017 2Q18 2014 2015 2016 2017 2Q18 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.0% 4.0 18.4% 3.5 3.75x
Slide 34: Strong Balance Sheet
STRONG BALANCE SHEET AS OF JUNE 30, 2018 Fixed vs. Floating Floating 0% Fixed 100% Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) Secured 301 23 5.8% 3.0 Unsecured 1,009 77 3.8% 7.3 Total 1,310 4.3% 6.3 34
Slide 35: Strong Balance Sheet
STRONG BALANCE SHEET AS OF JUNE 30, 2018 Maturities Secured Debt Unsecured Debt Line of Credit (1) 600 500 400 $M 300 559 200 260 200 100 4 80 67 82 59 0 2018 2019 2020 2021 2022 Thereafter Average Interest 5.78% 7.65% 6.90% 3.75% 3.16% 4.39% Rate % 35 (1) LOC balance is $0 at June 30, 2018.
Slide 36: Why First Industrial?
WHY FIRST INDUSTRIAL? Cash flow growth opportunity Ability to create value through development and select acquisitions via platform Valuation gap to peers and market transactions 36
Slide 37: Q&A
Q&A