First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Citi Global Property CEO Conference 2016
32 slides from First Industrial Realty Trust's conference presentation, Mar 14, 2016
Slide 1: Citi Global Property CEO Conference
= FIRST nis INDUSTRIAL REALTY-TRUST Citi Global Property CEO Conference March 14-16, 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: 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 3
Slide 4: 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 5: 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 Pennsylvania Detroit Warehouse Bulk 13% Warehouse New Jersey 66% 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 5 10 3.5 2.2 96.1 94.3 92.9 0 6.3 '10 '11 '12 '13 '14 '15 5.2 89.9 5 4.2 -3.4 87.9 -5 -4.7 2.7 85.0 -10 0.1 0 -11.8 '10 '11 '12 '13 '14 '15 -15 -15.1 -2.7 75 '10 '11 '12 '13 '14 '15 -5 -20 (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: 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 9: Improved Ratios
IMPROVED RATIOS Fixed Charge (Debt + Preferred) to Indebtedness Subject to Coverage(1) EBITDA(2) (annualized) Encumbrance(3) 3.0 x 8.0 x 25% 21.8% 2.76x 7.0 6.7x 6.2x 6.1x 20% 18.4% 6.0 16.7% 2.5 2.45x 5.0 15% 4.0 10% 3.0 2.0 1.95x 2.0 5% 1.0 1.5 x 0.0 x 0% 3Q13 4Q14 4Q15 3Q13 4Q14 4Q15 3Q13 4Q14 4Q
Slide 10: Significant Portfolio Transformation ($M)
SIGNIFICANT PORTFOLIO TRANSFORMATION 300 Dispositions Development (Starts) Acquisitions Land Inventory 250 16 200 15 119 150 0 67 Σ of Investment 22 = $853M 100 17 @ 6.4% 47 117 117 128 50 31 50 2 ($M) 36 10 0 17 8 (5) (70) (86) (50) (87) (103) Σ of Sales (145) (158) = $654M (100) @ 5.8% (150) (1) 2
Slide 11: The TI/LC/CapEx Opportunity
THE TI/LC/CAPEX OPPORTUNITY PROGRESS AND UPDATE 60 $52 $7M $6M Savings Savings 50 $45 Opportunity $39 40 ($M) 30 20 10 0 2013 2015 2016-2018 Opportunity On pace to achieve 2013 Investor Day opportunity of $8M Opportunity in 2016 - 2018 for additional savings due to portfolio refinement 11
Slide 12: FR Cash Rental Rate Trends
FR CASH RENTAL RATE TRENDS 8.0% 6.0% 5.0% 4.1% 4.0% 3.5% 2.2% 2.0% 1.2% 0.0% 2013 2014 2015 -2.0% -4.0% -3.4% Renewal Overall Strong renewal rate trends are indicative of landlord’s market 12
Slide 13: Rental Rate Bumps Trend
(1) RENTAL RATE BUMPS TREND Leases Annualized $ of Commencement Commenced With Bumps(2) Steps NOI ($M) 2013 79% 2.9% 5.1 2014 87% 2.4% 5.3 2015 91% 2.8% 5.1 2016F 93% 2.6% 5.7 Imbedded, contractual NOI growth of 2%+ on an annual same store basis from 2016 - 2018 (1) Assumes no new leasing post 4Q15.
Slide 14: 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 15: 2015 Property Acquisitions
2015 PROPERTY ACQUISITIONS GAAP Expected Name Market SF Investment Occupancy $/SF (M) Yield 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% $128 5.1% 17825 Indian Street Southern CA 366,117 $29.0 100% $79 4.8% 750 Gateway Blvd. Da
Slide 16: 400-500 Old Post Road
400-500 OLD POST ROAD BALTIMORE, MD Summary Square Feet: 992,768 Estimated Investment: $62.8M / $63/SF Estimated GAAP Yield: 6.3% Acquisition Date: 4Q15 Stabilized Cash Flow: $3.9M 16
Slide 17: Energy Commerce Business Park
ENERGY COMMERCE BUSINESS PARK HOUSTON, TX Summary Square Feet: 287,560 Percent Leased: 41% Estimated GAAP Investment: $26.6M / $93/SF Estimated GAAP Yield: 6.6% Stabilized Cash Flow: $1.76M 17
Slide 18: 750 Gateway
750 GATEWAY DALLAS, TX Summary Square Feet: 79,887 Percent Leased: 100% Estimated GAAP Investment: $7.0M / $88/SF Estimated GAAP Yield: 6.4% Stabilized Cash Flow: $0.4M 18
Slide 19: 2015 Developments Placed In-Service
2015 DEVELOPMENTS PLACED IN-SERVICE First Park @ Ocean Ranch I & II | San Diego – 171,676 SF First 36 Logistics Center | Inland Empire – 555,670 SF First Pinnacle Industrial I & II | Dallas – 598,445 SF Interstate North Business Pk II | Minneapolis – 142,290 SF First Northwest Commerce Cntr | Housto
Slide 20: Developments Placed In-Service
DEVELOPMENTS PLACED IN-SERVICE 2015 GAAP Stabilized Investment Expected Cash Flow Name Market SF ($M) $/SF Yield ($M) % Leased First Park @ Ocean Ranch Southern CA 171,676 $20.4 $119 6.8% $1.4 100% Bldgs. 1 and 2 First 36 Logistics Center Southern CA 555,670 $33.2 $60 6.8% $2.3 100% First Pinnacle I
Slide 21: 2015 Developments in Process or in Lease-Up
2015 DEVELOPMENTS IN PROCESS OR IN LEASE-UP First Arlington Commerce Center @ I-20 First 33 Commerce Center Dallas – 153,200 SF Pennsylvania – 584,760 SF First Park @ Ocean Ranch – Building 3 First Park Tolleson First Park 94 – Building I San Diego – 65,324 SF Phoenix – 386,100 SF Chicago – 600,539
Slide 22: 2015 Developments in Process or in Lease-Up
2015 DEVELOPMENTS IN PROCESS OR IN LEASE-UP Stabilized Estimated GAAP Cash Investment Estimated Flow % Estimated Name Market SF ($M) $/SF Yield ($M) Leased Completion First Arlington Commerce Completed Dallas 153,200 $9.5 $62 6.5% $0.6 67% Center @ I-20 3Q15 Completed First 33 Commerce Center Pennsy
Slide 23: First Park McDonough – Build-to-Suit
FIRST PARK MCDONOUGH – BUILD-TO-SUIT ATLANTA, GA Summary Square Feet: 402,304 Percent Leased: 100% Estimated GAAP Investment: $23.3M / $58/SF Estimated GAAP Yield: 8.0% Estimated Completion: 4Q16 Stabilized Cash Flow: $1.9M 23
Slide 24: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS LAND HOLDINGS (AS OF 12/31/15) Useable Book Developable Key Sites Area Value MSF (Acres) ($M) Inland Empire 69.2 1,450,000 18.4 Pennsylvania Houston 46.7 676,000 12.8 Chicago Chicago 233.0 4,000,000 16.1 Stockton Stockton 57.9 1,200,000 6.3 Nashville Dallas 104.5
Slide 25: First Logistics Center @ I-83 – York, PA
First Logistics Center @ I-83 – York, PA
Slide 26: 8751 Skinner Court
8751 SKINNER COURT ORLANDO, FL Summary Square Feet: 125,775 GAAP Investment: $9.3M / $74/SF GAAP Yield: 7.8% % Leased: 100% 26
Slide 27: First Reyes Logistics Center BTS
FIRST REYES LOGISTICS CENTER BTS LOS ANGELES, CA Summary Square Feet: 63,450 Estimated GAAP Investment: (1) $17.6M Estimated GAAP Yield: 5.2% Percent Leased: 100% Target Completion Date: 4Q16 (1) Represents incremental GAAP Investment. 27
Slide 28: The Ranch by First Industrial
THE RANCH BY FIRST INDUSTRIAL INLAND EMPIRE WEST, CA Summary Potential Developable 936,000 Square Feet: 28
Slide 29: PV Land with Option Parcel
PV 303 LAND WITH OPTION PARCEL GOODYEAR, AZ Summary Potential Developable 600,000 Square Feet: 29
Slide 30: Cash Flow Drivers
CASH FLOW DRIVERS New Investment/ Reinvestment of Excess CF Lower Rental TI/LC/CapEx Increases Increasing Cash Flow Average Occupancy/ Rent Bumps Lease-up of Investments Debt Costs The FR Platform Drives It All! 30
Slide 31: 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 32: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA
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