First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — NAREIT REITWorld 2016
33 slides from First Industrial Realty Trust's conference presentation, November 2016
Slide 1: NAREIT REITWorld 2016
NAREIT REITWorld 2016 November 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: 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 cash flow Growth through development and select acquisitions 3
Slide 4: Our Progress – The FR Timeline
OUR PROGRESS – THE FR TIMELINE Today - Drive NOI/Cash flow 2013 - Portfolio enhancement - Drive occupancy - Development focused and NOI/Cash flow investment - Portfolio refinement - Reduce debt costs 2011 - Expanding - Grow the dividend - Drive occupancy and investment NOI/Cash flow - Reduce debt co
Slide 5: 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 12% Bulk Warehouse New Jersey 68% Chicago Salt Lake City Cleveland Indianapolis Baltimore/ Cincinnati Washington Denver St. Loui
Slide 6: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS Occupancy %(1) Cash Rental Rates %(2) Same Store NOI %(3) 100 10 10 96.1 6.4 95.4 94.3 6.7 5 3.5 6.3 92.9 2.2 5.2 89.9 5 4.2 87.9 0 '11 '12 '13 '14 '15 YTD 2.7 16 -3.4 -5 0.1 -4.7 0 '11 '12 '13 '14 '15 YTD 16 -10 -11.8 75 '11 '12 '13 '14 '15 3Q16 -15 -5 (1) Period End
Slide 7: 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 8: U.S. Net Absorption and New Completions
U.S. NET ABSORPTION AND NEW COMPLETIONS 400 300 Forecast 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -100 -200 Completions Net Absorption -300 Source: CBRE Econometric Advisors as of 11/11/16. 8
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
SIGNIFICANT PORTFOLIO TRANSFORMATION Σ of Investment(1) = $1.1B 300 Dispositions Development (Starts) Acquisitions Land Inventory @ 6.6% 11 250 16 53 200 15 119 150 0 67 22 100 17 214 47 117 117 128 50 31 50 ($M) 36 0 17 (70) (86) (50) (87) (103) (145) (139) (158) (100) Σ of Sales = $788M @ 6.0% (15
Slide 11: 2016 Developments Placed in Service or Completed
2016 DEVELOPMENTS PLACED IN SERVICE OR COMPLETED(1) Estimated Stabilized Estimated GAAP Cash % Estimated Name Market SF $/SF GAAP Investment Flow Leased Completion Yield(2) ($M) ($M) First Arlington Commerce Completed Dallas 153,200 $9.5 $62 6.8% $0.6 100% Center @ I-20 3Q15 Completed First 33 Comme
Slide 12: 2016 Developments Placed in Service or Completed
2016 DEVELOPMENTS PLACED IN SERVICE OR COMPLETED First Arlington Commerce Center @ I-20 Dallas – 153,200 SF First 33 Commerce Center First Park @ Ocean Ranch – Building 3 First Park Tolleson Pennsylvania – 584,760 SF San Diego – 65,600 SF Phoenix – 386,100 SF First Park 94 – Building I First Arlingt
Slide 13: 2016 Developments in Process and Key Land Sites
2016 Developments in Process and Key Land Sites
Slide 14: Developments in Process/Planned
DEVELOPMENTS IN PROCESS/PLANNED IN PROCESS Estimated Stabilized Estimated GAAP % Estimated Name Market SF $/SF(1) GAAP Cash Flow Investment ($M) Leased Completion Yield(2) ($M) First Park McDonough - BTS Atlanta 402,304 $21.2 $53 8.8% $1.9 100% 4Q16 First Reyes Logistics - BTS Southern CA 63,450 $17
Slide 15: First Park McDonough – BTS
FIRST PARK MCDONOUGH – BTS ATLANTA, GA Summary Square Feet: 402,304 Percent Leased: 100% Estimated GAAP Investment: $21.2M / $53/SF Estimated GAAP Yield: 8.8% Estimated Completion: 4Q16 Stabilized Cash Flow: $1.9M 15
Slide 16: 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 16
Slide 17: 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 17
Slide 18: First Park @ PV 303 Land with Option Parcel
FIRST PARK @ PV 303 LAND WITH OPTION PARCEL GOODYEAR, AZ Summary Square Feet: 618,350 Percent Leased: 0% Estimated GAAP Investment: $32.8M / $53/SF Estimated GAAP Yield: 7.7% Target Completion Date: 1Q17 18
Slide 19: 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 Completion Date: 1Q17 19
Slide 20: First Park 94 – Building 2
FIRST PARK 94 – BUILDING 2 SE WISCONSIN / CHICAGO Summary Square Feet: 618,350 Percent Leased: 0% Estimated GAAP Investment: $29.9 / $50/SF Estimated GAAP Yield: 8.0% Target Completion Date: 2Q17 20
Slide 21: 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: $86.5M / $92/SF Estimated GAAP Yield: ≈ Mid to low 6% Target Construction Date: By 1Q17 Target Completion Date: 4Q17 21
Slide 22: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS LAND HOLDINGS (AS OF 9/30/16) Site Market Acres Developable SF First Nandina Inland Empire 69.2 1,450,000 Logistics Center First Perry Logistics Inland Empire 11.0 236,000 Center First Grand Parkway Pennsylvania Houston 46.7 676,000 Commerce Center Chicago First
Slide 23: 2016 Acquisitions
2016 Acquisitions
Slide 24: 8751 Skinner Court
8751 SKINNER COURT ORLANDO, FL Summary Square Feet: 125,775 Purchase Price: $9.3M / $74/SF Yield: 7.8% % Leased: 100% 24
Slide 25: 4473 Shader Road
4473 SHADER ROAD ORLANDO, FL Summary Square Feet: 199,100 Percent Leased: 100% Purchase Price: $14.1M / $71/SF Yield: 6.6% 25
Slide 26: 1445 Engineer Street
1445 ENGINEER STREET SAN DIEGO, CA Summary Square Feet: 99,307 Percent Leased: 100% Purchase Price: $11.9M / $120/SF Yield: 6.1% 26
Slide 27: 81 Paragon Drive
81 PARAGON DRIVE ROMEOVILLE, IL Summary Square Feet: 121,142 Percent Leased: 0% Purchase Price: $9.0 M / $74/SF Estimated GAAP Yield: 6.5% 27
Slide 28: 1351 NW 78th Ave
1351 NW 78TH AVE DORAL, FL Summary Square Feet: 63,389 Percent Leased: 100% Purchase Price: $8.4M / $133/SF Yield: 7.4% 28
Slide 29: Balance Sheet
First Bandini Logistics Center – Los Angeles, CA BALANCE SHEET
Slide 30: Strong Balance Sheet
STRONG BALANCE SHEET AS OF SEPTEMBER 30, 2016 FIXED VS. FLOATING SUMMARY Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (2) Secured 503 38 5.4% 3.5 Floating Unsecured(1) 829 62 4.0% 4.5 Fixed 12% 88% Total 1,332 4.5% 4.1 W/A interest rate without LOC 4.9% MATURITIES Secured Debt Unse
Slide 31: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage Unsecured Leverage 3.47x 45 43.9% 3.5 3.36x 3.17x 2.99x 3.00x 40.4% 40.6% 3.0 40 37.5% 2.5 35 33.3% 2.0 30 1.5 2012A 2013A 2014A 2015A 3Q16A 2012A 2013A 2014A 2015A 3Q16A Secured Leverage Fixed Charge Coverage 30 3.5 25.2% 3.02x 25 3.0 2.76x 21.3% 2
Slide 32: Conclusion
CONCLUSION Transformation • Strong balance sheet Creating stability for future • Refined portfolio economic cycles with • Tested platform Performance • Bumps, increasing market rents and lower TI/LC/CapEx On-going cash flow growth • Lease up of developments & value-add opportunity via acquisitions •
Slide 33: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA
First Industrial Realty Trust — NAREIT REITWorld 2016 on 6ix