First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Baird 2014 Growth Stock Conference
25 slides from First Industrial Realty Trust's conference presentation, May 6, 2014
Slide 1: First Industrial Realty Trust Baird 2014 Growth Stock Conference
First Industrial Realty Trust Baird 2014 Growth Stock Conference May 6, 2014
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain 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-
Slide 3: Why FR?
Why FR? • Focused strategy: Deliver sustainable cash flow growth through leasing and disciplined portfolio and capital management Tested Leadership • Local market experts execute management, leasing, acquisitions, development and and Platform targeted sales • Track record of industry-leading custome
Slide 4: FR Recent Actions
FR Recent Actions • Increased common dividend by 20.6% to $0.1025 per share/unit for 1Q14 • Closed on a $200M 7-year term loan with an initial rate of LIBOR plus 175 bps • Used swaps to effectively fix rate at 4.04% • Received investment grading from Standard & Poor’s on unsecured notes • Completed
Slide 5: 2013 Accomplishments
2013 Accomplishments • Re-initiated common stock dividend • Increased occupancy to 92.9% at year-end, up 300 basis points from YE 2012 • Completed three new developments, 1.5 million square feet, estimated total investment of $107.3 million • Started three new developments totaling 849,155 SF • Acqu
Slide 6: Broad Platform and Presence
Broad Platform and Presence Seattle Minneapolis Central & Milwaukee Detroit Eastern PA New Jersey Chicago Cleveland Salt Lake City Indianapolis Balt/Wash Denver Cincinnati St. Louis Nashville Southern California Phoenix Atlanta Dallas Houston Tampa Miami 6
Slide 7: Where We've Been…
Where We’ve Been… 2009 – 2010 2011 – 1Q14 • Addressed liquidity and maturities • Drove occupancy and NOI • Redefined strategy – Occupancy increased 740 bps since YE 2010 • Rationalized G&A • Strengthened balance sheet • Set the stage for portfolio refinement • Executed targeted sales • Initiated sel
Slide 8: Where We've Been… Key Portfolio Cash Flow Metrics
Where We’ve Been… Key Portfolio Cash Flow Metrics Occupancy %(1) Cash Rental Rates %(2) (FY) Same Store NOI % (FY) 100 5 10 3.1 0 6.3 92.9 92.4 2009 2010 2011 2012 2013 1Q14 89.9 5 -5 -3.4 87.9 -4.7 (3) 2.7 2.3 85.0 -6.9 -10 0.1 82.0 0 -11.8 2009 2010 2011 2012 2013 1Q14 -15 -15.1 -2.7 75 -3.8 2009
Slide 9: Where We've Been… Capital Management Progress
Where We’ve Been… Capital Management Progress (millions) $2,500 ■ Preferred Stock ■ Net Debt $2,309 Net Debt(1) & Pref. Stock/ EBITDA(2) 11.1x $2,000 $1,741 Net Debt(1) & Pref. Stock/ EBITDA(2) $1,500 8.6x $1,369 Net Debt(1) & Pref. Stock/ EBITDA(2) 6.8x Debt/Total Debt/Total Debt/Total Assets(3) As
Slide 10: Upgrading the Portfolio
Upgrading the Portfolio FR Portfolio – Assets Book Value $2.9B (as of 3Q10) GAAP Yield/ LTM Sales Cap Rate + Investments 2010+ = $402M(1) 14% Increase 6.9% - Dispositions 4Q10+ = $328M 11% Decrease 6.0% Total Portfolio Change $730M = 25% Net Change (1) Through 1Q14. Reflects full development cost of
Slide 11: Favorable Industry Fundamentals
Favorable Industry Fundamentals ■ Completions ■ Net Absorption U.S. Industrial Real Estate Annual Completions/Net Absorption (MSF) 400 300 Forecast 200 100 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (100) (200) (300)
Slide 12: Where We're Going… Strategy for Success
Where We’re Going… Strategy for Success Leasing and Operations Capital Portfolio Management Management Management • Drive to +95% by YE 2015 • Conservative and Flexible • Selective Acquisitions • Grow Rents Balance Sheet • Targeted Development • Normalize TI/LC/CapEx • Return to Investment Grade Opp
Slide 13: Areas for Potential Cash Flow Growth
Areas for Potential Cash Flow Growth • Lower capital costs • Small tenant occupancy • Key bulk warehouse lease-up opportunities • Rental rate bumps on existing leases and growth in market rents • Lower TI/LC/Cap Ex • Future development and acquisitions 13
Slide 14: U.S. Market Rent Recovery
U.S. Market Rent Recovery $/SF Torto Wheaton Warehouse Rent Annual Index 7 Previous Peak 6 5 Previous Bottom 4 3 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Source: CBRE Econometric Advisors (CBRE-EA) 14
Slide 15: Drive to +95%! Ten Key Bulk Opportunities
Drive to +95%! Ten Key Bulk Opportunities Per Investor Day November 2013 Vacant SF as of Vacant SF as of Market Property 9/30/13 3/31/14 Los Angeles First Dominguez Gateway Center 213,544 0 Chicago 9501 Nevada 118,670 118,670 Atlanta 596 Bonnie Valentine 212,525 371,525 Central & Eastern PA 18212 Sh
Slide 16: First Bandini Logistics Center • Southern California Development
First Bandini Logistics Center • Southern California Development Summary Square Feet: 489,000 Estimated Investment: $54M Estimated GAAP Yield: 6.5% Completed: 4Q13 Potential NOI Impact: $3.5M 16
Slide 17: First Logistics Center @ I-83 • Central Pennsylvania Development
First Logistics Center @ I-83 • Central Pennsylvania Development Summary Square Feet: 708,000 Estimated Investment: $34M Estimated GAAP Yield: 8.4% Completed: 4Q13 Potential NOI Impact: $2.9M 17
Slide 18: 4100 Rock Creek • Chicago Acquisition – In Lease-Up
4100 Rock Creek • Chicago Acquisition – In Lease-Up Houbolt Road Exit Summary Square Feet: 509,216 Initial Investment: $20.5M Estimated GAAP Yield: 6.6% Potential NOI Impact: $1.4M 18
Slide 19: I-94 Distribution Center • Chicago Acquisition – 100% Leased
I-94 Distribution Center • Chicago Acquisition – 100% Leased Summary Square Feet: 626,784 Investment: $26.3M In-Place GAAP Yield: 6.7% NOI Impact: $1.9M 19
Slide 20: First Northwest Commerce Center • Houston Development Start – 1Q 2014
First Northwest Commerce Center • Houston Development Start – 1Q 2014 Summary Square Feet: 350,000 Estimated Investment: $20M Estimated GAAP Yield: 8.0% Targeted Completion Date: 1Q15 Potential NOI Impact: $1.6M 20
Slide 21: First Pinnacle Industrial Center • Dallas Development Start – 1Q 2014
First Pinnacle Industrial Center • Dallas Development Start – 1Q 2014 Summary Square Feet: 598,000 Estimated Investment(1): $26M Estimated GAAP Yield(1): 7.5% Targeted Completion Date: 1Q15 Potential NOI Impact: $1.9M (1) Incremental investment $23M, yield 8.3% 21
Slide 22: First 36 Logistics Center • Southern California Development
First 36 Logistics Center • Southern California Development Summary Square Feet: 555,000 Estimated Investment: $32M Estimated GAAP Yield: 6.9% Completion Date: 2Q14 Potential Annual NOI Impact: $2.2M 22
Slide 23: First Figueroa Logistics Center • Southern California Development
First Figueroa Logistics Center • Southern California Development Summary Square Feet: 43,000 Estimated Investment(1): $9M Estimated GAAP Yield(1): 3.6% Completion Date: 2Q14 Potential Gross NOI Impact: $0.3M (1) Incremental investment $5M, yield 6.7% 23
Slide 24: FR Value Propositions
FR Value Propositions • Opportunity to deliver AFFO growth of as much as 70% to 90% by YE 2017 from YE 2013 • Valuation discount relative to: − Peers − Sales comparables − Replacement cost 24
Slide 25: First Industrial
== FIRST. INDUSTRIAL
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