First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Citi 2017 Global Property CEO Conference
34 slides from First Industrial Realty Trust's conference presentation, March 2017
Slide 1: Citi 2017 Global Property CEO Conference
Citi 2017 Global Property CEO Conference March 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/Cash flow 2013 - Portfolio enhancement - Drive occupancy - Development focused and NOI/Cash flow investment - Portfolio refinement - Reduce debt costs 2011 - Expanding - Grow the dividend - Drive occupancy and investment NOI/Cash flow - Reduce debt co
Slide 5: Portfolio and Platform
PORTFOLIO AND PLATFORM SF BY PROPERTY TYPE(1) BROAD MARKET PRESENCE Light Seattle R&D/ Industrial Flex 15% 3% Minneapolis Regional Warehouse Milwaukee 13% Detroit Pennsylvania Bulk Warehouse New Jersey 69% Chicago Salt Lake City Cleveland Indianapolis Baltimore/ Cincinnati Washington Denver St. Loui
Slide 6: 2016 Highlights
2016 HIGHLIGHTS • Occupancy of 96.0%, Up 60 basis points from 3Q16 • Cash Same Store NOI grew 6.1% • Cash rental rates were up 6.6% • Placed in service 11 developments, 3.3 MSF – Total estimated investment of $210.1M – 98% leased at year-end – 7.4% weighted average first year GAAP yield(1) • Acquire
Slide 7: 1Q17 Update
1Q17 UPDATE • Entered into a note and guaranty agreement for $200 million of long-term unsecured notes in a private placement – Weighted average interest rate of 4.34% • $125 million with a 10-year term at 4.30% • $75 million with a 12-year term at 4.40% – Expected to close on or about April 20, 201
Slide 8: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 96.1 96.0 6.6 94.3 5 3.5 6.3 6.1 92.9 2.2 5.2 89.9 5 4.2 87.9 0 '11 '12 '13 '14 '15 '16 2.7 -3.4 -5 0.1 -4.7 0 '11 '12 '13 '14 '15 '16 -10 -11.8 75 '11 '12 '13 '14 '15 16 -15 -5 (1) Period End. (
Slide 9: 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 10: 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 3/1/17. 10
Slide 11: 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 12: Significant Portfolio Transformation
SIGNIFICANT PORTFOLIO TRANSFORMATION $167M 2,000 Developments In Process(1) $481M Developments Placed In-Service 1,500 $570M Acquisitions ($M) 1,000 $56M Land Inventory Additions 500 $819M Dispositions 0 2010 - 2016 (1) As of December 31, 2016. 12
Slide 13: 2016 Developments Placed in Service
2016 DEVELOPMENTS PLACED IN SERVICE(1) Estimated Stabilized Estimated GAAP Cash % Name Market SF $/SF (2) GAAP Completion Investment Flow Leased Yield(3) ($M) (2) ($M) First Arlington Commerce Dallas 153,200 $9.5 $62 6.8% $0.6 100% 3Q15 Center @ I-20 First 33 Commerce Center Pennsylvania 584,760 $41
Slide 14: 2016 Developments Placed in Service
2016 DEVELOPMENTS PLACED IN SERVICE First Arlington Commerce Center @ I-20 Dallas – 153,200 SF First 33 Commerce Center First Park @ Ocean Ranch – Building 3 First Park Tolleson Pennsylvania – 584,760 SF San Diego – 65,600 SF Phoenix – 386,100 SF First Park 94 – Building I First Arlington Commerce C
Slide 15: 2016 Developments Placed in Service (Con't) 4Q16
2016 DEVELOPMENTS PLACED IN SERVICE (CON’T) 4Q16 First Florence Logistics Center New Jersey – 577,200 SF First Park McDonough First Reyes Logistics Center Atlanta – 409,559 SF Los Angeles – 63,450 SF 15
Slide 16: 2017 Developments in Process and Key Land Sites
2017 Developments in Process and Key Land Sites
Slide 17: Developments in Process
DEVELOPMENTS IN PROCESS Estimated Stabilized Estimated GAAP % Estimated Name Market SF $/SF GAAP Cash Flow Investment ($M) Leased Completion Yield(1) ($M) First Park @ PV 303 Phoenix 618,350 $32.8 $53 7.0% $2.3 0% 1Q17 First Sycamore 215 Logistics Inland Empire 242,580 $17.8 $73 6.0% $1.1 0% 2Q17 Ce
Slide 18: First Park @ PV 303 Land with Option Parcel
FIRST PARK @ PV 303 LAND WITH OPTION PARCEL GOODYEAR, AZ Summary Square Feet: 618,350 Percent Leased: 0% Estimated GAAP Investment: $32.8M / $53/SF Estimated GAAP Yield: 7.0% Target Completion Date: 1Q17 18
Slide 19: 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 19
Slide 20: First Park 94 – Building II
FIRST PARK 94 – BUILDING II SE WISCONSIN / CHICAGO Summary Square Feet: 602,348 Percent Leased: 0% Estimated GAAP Investment: $29.9 / $50/SF Estimated GAAP Yield: 8.0% Target Completion Date: 2Q17 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: $86.7M / $93/SF Estimated GAAP Yield: 6.7% Target Completion Date: 4Q17 21
Slide 22: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS LAND HOLDINGS (AS OF 12/31/16) Site Market Acres Developable SF First Nandina Inland Empire 69.2 1,450,000 Logistics Center First Perry Logistics Inland Empire 11.0 236,000 Center First Grand Parkway Houston 46.7 676,000 Commerce Center Pennsylvania First Park 94
Slide 23: 2016 Acquisitions
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Slide 24: 8751 Skinner Court
8751 SKINNER COURT ORLANDO, FL Summary Square Feet: 125,775 Purchase Price: $9.3M / $74/SF % Leased: 100% Yield: 7.8% 24
Slide 25: 4473 Shader Road
4473 SHADER ROAD ORLANDO, FL Summary Square Feet: 199,100 Purchase Price: $14.0M / $70/SF Percent Leased: 100% Yield: 6.6% 25
Slide 26: 1445 Engineer Street
1445 ENGINEER STREET SAN DIEGO, CA Summary Square Feet: 99,307 Purchase Price: $11.9M / $120/SF Percent Leased: 100% Yield: 6.1% 26
Slide 27: Paragon Drive
81 PARAGON DRIVE ROMEOVILLE, IL Summary Square Feet: 121,142 Purchase Price: $9.0 M / $74/SF Percent Leased: 0% Estimated GAAP Yield: 6.5% 27
Slide 28: 1351 NW 78th Ave
1351 NW 78TH AVE DORAL, FL Summary Square Feet: 63,389 Purchase Price: $8.4M / $133/SF Percent Leased: 100% Yield: 7.4% 28
Slide 29: 6635 E 30th Street
6635 E 30TH STREET INDIANAPOLIS, IN Summary Square Feet: 99,877 Purchase Price: $4.1M/ $41/SF Percent Leased: 100% Yield: 7.9% 29
Slide 30: Balance Sheet
First Pinnacle Industrial Center – Dallas, TX BALANCE SHEET
Slide 31: Strong Balance Sheet
STRONG BALANCE SHEET AS OF DECEMBER 31, 2016 FIXED VS. FLOATING SUMMARY Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (2) Secured 498 37 5.4% 3.3 Floating Unsecured(1) 855 63 4.0% 4.2 14% Fixed 86% Total 1,353 4.5% 3.9 W/A interest rate without LOC 4.9% MATURITIES Secured Debt Unsec
Slide 32: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage Unsecured Leverage 3.50x 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% 2.0 30 1.5 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Secured Leverage Fixed Charge Coverage 30 3.5 3.21x 25.2% 25 3.0 2.76x 21.3% 2.45x 20 17
Slide 33: 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 34: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA
First Industrial Realty Trust — Citi 2017 Global Property CEO Conference on 6ix