First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — REITweek: 2020 Virtual Investor Conference
37 slides from First Industrial Realty Trust's conference presentation, June 2020
Slide 1: REITweek: 2020 Virtual Investor Conference
REITweek: 2020 Virtual Investor Conference June 2020
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: Company Overview
Company Overview ms FIRST Fi INDUSTRIAL REALTY sTRUST
Slide 4: Recent Highlights
Recent Highlights(1) • Collected 97% of April billings and 96% of May billings as of May 29, 2020 – Received rent payments from Pier 1 Imports for both April and May • 1Q20 Operating Metrics – Occupancy 97.1%; Cash Same Store NOI grew 8.4%; Cash Rental Rates up 10.8% • 2020 FFO per share guidance re
Slide 5: Monthly Tenant Billings & Receivables Update
Monthly Tenant Billings & Receivables Update March Through May 29, 2020 March April May % Collected as of April 22, 2020 (1) 97% 93% -% Tenant Payments 2% 4% 96% Total Collected as of May 29, 2020 99% 97% 96% Rent Deferrals & Pending Collections 1% 3% 4% Total 100% 100% 100% Pending Collection Cover
Slide 6: COVID-19 Approach
COVID-19 Approach • Proactive tenant outreach • Discussions with tenants requesting rent deferment – Obtained detailed financial information to evaluate and prioritize requests – Grants to-date have been in the form of deferrals of one to three months to be paid back in 2020 • Halted new development
Slide 7: Strategy
Strategy Generating long-term cash Distribution and other flow growth from increasing US-only, top rents, rental rate bumps, critical supply chain logistics markets development, lower cap ex, properties sustaining occupancy Development platform Strong balance sheet and Increasing capital allocation
Slide 8: National Platform
National Platform As of March 31, 2020 Total Number of Total Occupancy Market Cap Properties Portfolio Size $6.0 445 64.1 97.1% BILLION INDUSTRIAL MILLION IN-SERVICE BUILDINGS SQUARE FEET OCCUPANCY 77% 11% 10% 2% BULK REGIONAL LIGHT R&D WAREHOUSE WAREHOUSE INDUSTRIAL FLEX Number of properties and to
Slide 9: Portfolio Composition
Portfolio Composition % of Rental Income as of March 31, 2020 1.2% Seattle Minneapolis/St. Paul 5.6% Milwaukee Detroit Central/Eastern PA 1.1% 3.1% 1.7% 10.4% 5.4% New Jersey Chicago 7.2% Cleveland Northern California 1.7% 4.0% Baltimore/D.C. 0.7% 5.6% Cincinnati Denver 20.5% 1.4% Nashville 5.8% 5.3
Slide 10: Portfolio Transformation Summary
Portfolio Transformation Summary As of March 31, 2020 $150M $2,500 Developable Land $2,200 $154M Developments In Process Total Investments $1,900 $1,600 $1,218M Completed Developments $2,347M $1,300 IN 29.2 MSF $1,000 6.8% Cap Rate $700 $400 $825M Acquisitions $100 (M) -$200 $1,589M -$500 OUT 33.9 M
Slide 11: Portfolio Proximity To Population Centers
Portfolio Proximity To Population Centers 30 mi 20 mi 10 mi Average Average Population (M) 3.9 2.2 0.7 Population 24% 75% 95% % of FR Portfolio by SF > 1M $66,216 Exceeds U.S. Median Household Income of $66,388 $60,548 $67,835 Median Household Income Proximity to higher income population centers fit
Slide 12: Key Portfolio Cash Flow Metrics
Key Portfolio Cash Flow Metrics OCCUPANCY CASH RENTAL RATES CASH SAME STORE NOI (period end) (period average) (full year) 100% 15% 13.9% 10% 98.5% 8.4% 98% 97.6% 8% 97.3% 97.1% 10.8% 96.1% 10% 6.1% 96.0% 8.6% 5.8% 96% 8.1% 6% 5.2% 6.6% 4.4% 94% 4% 5% 3.1% 3.5% 92% 2% 90% 0% 0% '15 '16 '17 '18 '19 1Q
Slide 13: Financial Performance
Financial Performance FFO PER SHARE AFFO (M) DIVIDEND PER SHARE $2.00 $205 $196 CAGR 14.4% $1.00 CAGR 11.7% $1.00 2015-2020F CAGR 5.8% 2015-2020F $184 $0.92 2015-2020F $1.78 $180 $0.87 $1.74 $168 $0.84 $1.75 $156 $155 $0.76 $1.60 $0.75 $1.56 $133 $1.50 $1.45 $130 $113 $1.34 $0.51 $105 $0.50 $1.25 $8
Slide 14: Strong Balance Sheet
Strong Balance Sheet TOTAL LEVERAGE (1) (DEBT + PREFERRED) TO EBITDA 6.5 (annualized) 45 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 5.2x 29.8% 4.9x 30 27.6% 27.8% 5.0 25.9% 4.7x 4.6x 25 4.5 2015 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.0% 5.0 16.7% 14
Slide 15: Manageable Maturity Schedule
Manageable Maturity Schedule As of March 31, 2020 Maturities Secured Debt Unsecured Debt Line of Credit 700 600 500 320 (1) Weighted Average Maturity = 4.9 years Weighted Average Interest Rate = 3.6% 400 $M 300 200 260 200 100 182 225 131 150 19 77 11 67 1 0 9 2020 2021 2022 2023 - 2026 2027 2028 20
Slide 16: Industrial Landscape
Industrial Landscape ms FIRST INDUSTRIAL REALTY-+TRUST
Slide 17: Industrial Real Estate Demand Drivers
Industrial Real Estate Demand Drivers E-commerce Supply Chain Consumption Optimization Global GDP Growth Trade COVID-19 crisis driving increased e-commerce adoption | 17
Slide 18: Supply/Demand Picture
Supply/Demand Picture NEW SUPPLY ENTITLEMENTS CONSTRUCTION QUALITY LAND TAKE LONGER TIME AND COSTS INCREASING TOUGH TO FIND ON HOLD MOSTLY IN LARGER FORMAT, CERTAIN SUBMARKETS Development largely limited to projects under way and build-to-suits. | 18
Slide 19: Investment Activity
Investment Activity ig FIRST Fi
Slide 20: Creating Value Through Development
Creating Value Through Development Total SF Total GAAP Investment Cash Yield Margin % Range Placed In-Service ($M) 2016-17 3,881,743 255.9 7.4% ±45% 2018 3,454,560 227.1 7.9% 82% – 92% 2019 4,428,701 324.3 6.7% 42% - 52% 1Q20 643,798 53.0 7.9% 48% - 58% Totals 12,408,802 $860.3 7.3% ±57% Created ≈$4
Slide 21: 2019 Developments Placed In Service
2019 Developments Placed In Service As of March 31, 2020 Estimated GAAP Placed % Estimated Property Market SF Investment $/SF In Service Leased Cash Yield ($M) Date The Ranch by First Inland 358,065 32.4 90 100% 8.3% 2Q19 Industrial – Bdgs. III & V Empire First Park Fairburn - BTS Atlanta 703,339 39
Slide 22: 2020 Developments Placed In Service
2020 Developments Placed In Service As of March 31, 2020 Estimated GAAP Placed % Estimated Property Market SF Investment $/SF In Service Leased Cash Yield ($M) Date Ferrero BTS @ PV 303 Phoenix 643,798 53.0 82 100% 7.9% 1Q20 Total 643,798 $53.0 $82 100% 7.9% Average potential margin expected is appr
Slide 23: Developments Completed Not In Service
Developments Completed Not In Service As of March 31, 2020 Estimated GAAP % Estimated Completion Property Market SF Investment $/SF Leased Cash Yield Date ($M) First Grand Parkway Houston 173,045 13.3 77 0% 7.7% 4Q19 Commerce Center - Bldg. A First Grand Parkway Houston 198,905 15.2 77 29% 7.7% 4Q19
Slide 24: Developments Under Construction
Developments Under Construction As of March 31, 2020 Estimated GAAP % Estimated Estimated Property Market SF Investment $/SF Leased Cash Yield Completion ($M) First Independence Philadelphia 100,162 12.3 123 0% 6.1% 2Q20 Logistics Center First Redwood Logistics Inland 358,291 42.2 118 0% 5.9% 2Q20 C
Slide 25: First Independence Logistics Center
First Independence Logistics Center Philadelphia Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 100,162 $12.3M / $123/SF 6.1% 0% 2Q20 | 25
Slide 26: First Redwood Logistics Center I – A & B
First Redwood Logistics Center I – A & B Inland Empire Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 402,287 $47.4M / $118/SF 6.0% 0% 2Q20 (2 buildings) | 26
Slide 27: First Sawgrass Commerce Center
First Sawgrass Commerce Center South Florida Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 103,791 $15.3M / $147/SF 5.8% 0% 3Q20 | 27
Slide 28: First Redwood Logistics Center II
First Redwood Logistics Center II Inland Empire Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 71,905 $12.6M / $175/SF 5.2% 0% 3Q20 | 28
Slide 29: First Park 121 – Building E
First Park 121 – Building E Dallas Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 434,720 $31.2M / $72/SF 6.7% 77% 4Q20 | 29
Slide 30: First Cypress Creek Commerce Center
First Cypress Creek Commerce Center South Florida 86,920 SF 147,690 SF 139,320 SF Fort Lauderdale Executive Airport Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 373,930 $35.6M / $95/SF 7.1% 0% 1Q21 (3 buildings) | 30
Slide 31: 2019 Acquisitions
2019 Acquisitions Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased Cash Yield ($M) ($) First Orchard 88 Chicago 172,654 12.3 71 60% 6.5% Business Center Mahalo & Maria Los Angeles 31,900 7.1 223 100% 4.2% 21110 E 31st Circle Denver 84,700 9.0 106 100% 5.2% 930 Columbia Av
Slide 32: 2020 Acquisitions
2020 Acquisitions As of March 31, 2020 Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased Cash Yield ($M) ($) 27430 Industrial Boulevard NorCal 22,500 4.9 219 100% 5.0% Nottingham Ridge Logistics Baltimore 751,074 69.7 93 15% 5.7% Center – A & B 19302-19400 S Laurel Park Lo
Slide 33: Nottingham Logistics Center – Bldgs. A & B
Nottingham Logistics Center – Bldgs. A & B Baltimore Square Estimated GAAP Estimated % Status Feet Investment Cash Yield Leased 751,074 $69.7M / $93/SF 5.7% 15% Closed (2 buildings) Percent leased is as of the Company’s results press release dated April 22, 2020. | 33
Slide 34: Strategically Located Land Positions
Strategically Located Land Positions As of March 31, 2020 No. of Developable Market Acres Land Sites SF Chicago 1 167.7 3,200,000 South Florida 4 100.5 1,811,000 Inland Empire 6 74.8 1,495,000 Denver 1 84.8 1,333,000 Central PA Nashville 1 72.1 1,200,000 Chicago NorCal NorCal 1 58.0 1,200,000 Denver
Slide 35: First Park Miami
First Park Miami South Florida First Park Miami Total Developable Acres 63.2 Acquisition Price $48.9M Phase I (on hold) Building I 258,925 SF Building II 132,751 SF Building III 200,264 SF Total Size 591,940 SF Total Estimated Cost $90M Targeted Cash Yield = Mid-Fives | 35
Slide 36: Conclusion
Conclusion
Slide 37: Platform for Today & Tomorrow
Platform for Today & Tomorrow Near-Term • Long-Term Navigate the COVID-crisis Lever the strengths of our resilient, Work with tenants to help them with business continuity tested platform to drive growth in cash flow and value • Maximize cash flows, retain tenants • Serve logistics needs driven by a
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