First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — NAREIT REITWeek 2016
28 slides from First Industrial Realty Trust's conference presentation, June 2016
Slide 1: NAREIT REITWeek
a= FIRST ea INDUSTRIAL REALTY-TRUST NAREIT REITWeek June 2016 FR LISTED NYSE
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: 1Q 2016 Update
1Q 2016 UPDATE • Occupancy of 94.8% • Cash same store NOI ↑ 9.6% and cash rental rates ↑ 6.9% • 595K SF of new development leasing ahead of pro forma • Raised $125M of equity in April • ≈ $180M planned new development starts in Southern California, New Jersey and Phoenix – Mid 6% GAAP yield(1) • Inc
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 17% 4% Minneapolis Regional Milwaukee Detroit Pennsylvania Warehouse Bulk 13% Warehouse New Jersey 66% 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 9.6 10 96.1 6.9 94.3 94.8 5 3.5 6.3 92.9 2.2 5.2 89.9 5 4.2 87.9 0 '11 '12 '13 '14 '15 1Q16 2.7 -3.4 -5 0.1 -4.7 0 '11 '12 '13 '14 '15 1Q16 -10 -11.8 75 '11 '12 '13 '14 '15 1Q16 -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 300 Dispositions Development (Starts) Acquisitions Land Inventory Σ of Investment(2) = $1.04B 250 16 @ 6.4% 7 200 24 15 119 150 0 67 22 100 17 185 47 117 117 128 50 31 50 ($M) 36 0 17 (32) (70) (86) (50) (87) (103) Σ of Sales (145) (158) = $681M (100) @ 5.9% (150
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 $5.4 100% $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 $33.5 $60 6.9% $2.3 100% First Pi
Slide 14: Developments in Process or in Lease-Up
DEVELOPMENTS IN PROCESS OR IN LEASE-UP Estimated Stabilized Estimated GAAP Cash % Estimated Name Market SF $/SF GAAP Investment Flow Leased Completion Yield(1) ($M) ($M) First Arlington Commerce Completed Dallas 153,200 $9.5 $62 6.8% $0.6 100% Center @ I-20 3Q15 Completed First 33 Commerce Center Pe
Slide 15: Developments in Process or in Lease-Up
DEVELOPMENTS IN PROCESS OR IN LEASE-UP 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 – 600,539 SF Fi
Slide 16: First Quarter 2016
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Slide 17: 8751 Skinner Court – 1Q16 Acquisition
8751 SKINNER COURT – 1Q16 ACQUISITION ORLANDO, FL Summary Square Feet: 125,775 GAAP Investment: $9.3M / $74/SF GAAP Yield: 7.8% % Leased: 100% 17
Slide 18: 4473 Shader Road – 2Q16 Acquisition
4473 SHADER ROAD – 2Q16 ACQUISITION ORLANDO, FL Summary Square Feet: 199,100 Percent Leased: 100% Total Investment: $14.2M / $71/SF Stabilized Economic Yield: 6.6% 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: 5.2% Economic Yield: 4.1% Target Completion Date: 4Q16 19
Slide 20: 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 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: $88.0M / $94/SF Estimated GAAP Yield: ≈ Mid to low 6% Target Construction Date: 3Q/4Q16 Target Completion Date: 3Q17 21
Slide 22: First Park @ PV 303 Land with Option Parcel
FIRST PARK @ PV 303 LAND WITH OPTION PARCEL GOODYEAR, AZ Summary Square Feet: 600,000 Percent Leased: 0% Estimated GAAP Investment: $32.8M / $55/SF Estimated GAAP Yield: ≈ Mid to high 7% Target Construction Date: 3Q16 Target Completion Date: 1Q17 22
Slide 23: 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/ $73/SF Estimated GAAP Yield: ≈ 6.0% Target Construction Date: 3Q/4Q16 Target Completion Date: 1Q17 23
Slide 24: Balance Sheet
First Bandini Logistics Center – Los Angeles, CA BALANCE SHEET
Slide 25: Strong Balance Sheet
STRONG BALANCE SHEET AS OF MARCH 31, 2016 FIXED VS. FLOATING SUMMARY Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (2) Floating Fixed Secured 508 34 5.4% 4.0 21% 79% Unsecured(1) 979 66 3.6% 4.5 Total 1,487 4.2% 4.3 W/A interest rate without LOC 4.9% MATURITIES Secured Debt Unsecure
Slide 26: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage Unsecured Leverage 45 43.9% 3.5 3.36x 3.28x 3.17x 2.99x 3.00x 40.4% 40.6% 3.0 40 37.5% 2.5 34.9% 35 2.0 30 (1) 1.5 (1) 2012A 2013A 2014A 2015A 1Q16A 2012A 2013A 2014A 2015A 1Q16A Secured Leverage Fixed Charge Coverage 30 3.5 25.2% 25 3.0 2.76x 2.82x
Slide 27: 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 28: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA