First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — BMO Capital Markets 12th Annual Real Estate Conference 2017
24 slides from First Industrial Realty Trust's conference presentation, September 2017
Slide 1: Investor Presentation
Investor Presentation BMO Capital Markets 12th Annual Real Estate Conference September 2017
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/AFFO 2013 - Portfolio enhancement - Drive occupancy - Development focused and NOI/AFFO investment - Portfolio - Reduce capital costs 2011 refinement - Grow the dividend - Drive occupancy - Expanding and NOI/AFFO investment - Strengthen balance - Reduc
Slide 5: Portfolio and Platform
PORTFOLIO AND PLATFORM SF BY PROPERTY TYPE(1) BROAD MARKET PRESENCE R&D/ Seattle Flex Light 3% Industrial 15% Minneapolis Regional Warehouse Milwaukee Detroit 12% Central/Eastern PA New Jersey Chicago Cleveland Salt Lake City Indianapolis Baltimore/ Cincinnati Washington Bulk Denver Northern Califor
Slide 6: Strong Operating Results
STRONG OPERATING RESULTS Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 7.2 96.1 96.0 95.7 6.6 94.3 92.9 5 3.5 6.3 6.1 2.2 5.2 5.0 89.9 5 4.2 87.9 0 2.7 -3.4 -5 0.1 -4.7 0 -10 75 -11.8 -15 -5 Driven by leasing and operational execution, supported by fundamentals (1) Period
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 2019 -100 -200 Completions Net Absorption -300 Source: CBRE Econometric Advisors as of 9/7/17. 8
Slide 9: Strategy for Success
STRATEGY FOR SUCCESS Leasing and Operations Capital Portfolio Management Management Management • ≈ 96% 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
Slide 10: Significant Portfolio Transformation Since 2010
SIGNIFICANT PORTFOLIO TRANSFORMATION SINCE 2010 $15M Land Not Placed In 1300 Production 1100 900 $530M / 8.7 MSF Developments Placed In-Service $136M / 1.8 MSF And Completed Not In Service Developments In 700 Process (1) 500 $574M / 6.9 MSF 300 Acquisitions ($M) 100 (100) $76M Land Dispositions (300
Slide 11: 2017 Investment Activity
2017 INVESTMENT ACTIVITY(1) Purchase Purchase Estimated Acquisitions Market Size (SF) Price (M) Price/SF Occupancy(1) GAAP Yield 21301 E 33rd Drive Denver 181,348 $11.2 $62 100% 5.9% 2777 Loker Avenue West San Diego 123,454 $21.5 $174 100% 5.0% 550 Gills Drive Orlando 102,568 $8.0 $78 100% 6.1% 1058
Slide 12: 2017 Investment Activity
2017 INVESTMENT ACTIVITY 10586 Tamarind Ave 21301 E 33rd Drive 106,455 SF 181,348 SF First Park 94 - Building II 602,348 SF The Ranch by First Industrial 936,000 SF 550 Gills Drive 102,568 SF First Sycamore 215 Logistics Center 242,580 SF First Park @ PV 303 618,350 SF 2777 Loker Avenue West 123,454
Slide 13: First Park @ PV 303
FIRST PARK @ PV 303 GOODYEAR, AZ Summary Square Feet: 618,350 Percent Leased: 100% Estimated GAAP Investment(1): $45.4M / $55/SF Estimated GAAP Yield: 7.2% Completed: 1Q17 (1) Estimated GAAP investment, estimated GAAP yield, and stabilized cash flow reflect totals for the building plus related land,
Slide 14: 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: 2Q17 14
Slide 15: First Park 94 – Building II
FIRST PARK 94 – BUILDING II SE WISCONSIN / CHICAGO Summary Square Feet: 602,348 Percent Leased: 50% Estimated GAAP Investment: $31.2 / $52/SF Estimated GAAP Yield: 8.0% Target Completion Date: 2Q17 15
Slide 16: 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: $86.7M / $93/SF Estimated GAAP Yield: 6.9% Target Completion Date: 4Q17 16
Slide 17: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS LAND HOLDINGS (AS OF 6/30/17) Site Market Acres Developable SF First Nandina Logistics Inland Empire 69.2 1,450,000 Center First Perry Logistics Inland Empire 11.0 236,000 Center First Fontana Logistics Inland Empire 19.1 401,820 Center First Grand Parkway Pennsy
Slide 18: 2016 Investment Activity
2016 INVESTMENT ACTIVITY Purchase Purchase Estimated Acquisitions Market Size (SF) Price (M) Price/SF Occupancy(2) GAAP Yield 8751 Skinner Court Orlando 125,775 $9.3 $74 100% 7.8% 4473 Shader Road Orlando 199,100 $14.0 $70 100% 6.6% 1445 Engineer Street San Diego 99,307 $11.9 $120 100% 6.1% 81 Parag
Slide 19: 2016 Investment Activity
2016 INVESTMENT ACTIVITY 6635 E 30th St 99,877 SF First Park 94 - Building I First 33 Commerce Ctr First San Michele 601,439 SF 584,760 SF Logistics Center 81 Paragon Drive 187,985 SF 121,142 SF First Florence Logistics Ctr 577,200 SF First Reyes Logistics Ctr 63,450 SF 8751 Skinner Court 1445 Engin
Slide 20: Balance Sheet
First Pinnacle Industrial Center – Dallas, TX BALANCE SHEET
Slide 21: Strong Balance Sheet
STRONG BALANCE SHEET AS OF JUNE 30, 2017 FIXED VS. FLOATING SUMMARY Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (2) Floating Secured 457 34 5.4% 2.7 9% Fixed 91% Unsecured(1) 890 66 4.1% 5.8 Total 1,347 4.5% 4.8 W/A interest rate without LOC 4.7% MATURITIES (2) Secured Debt Unsecu
Slide 22: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage Unsecured Leverage 3.50x 3.61x 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 33.0% 31.8% 2.0 30 1.5 2012 2013 2014 2015 2016 2Q17 2012 2013 2014 2015 2016 2Q17 Secured Leverage Fixed Charge Coverage 30 3.5 3.37x 3.21x 25.2% 25
Slide 23: 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 24: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA
First Industrial Realty Trust — BMO Capital Markets 12th Annual Real Estate Conference 2017 on 6ix