INVESTORS

Low End of

High End of

Guidance for 2021

Guidance for 2021

(Per share/unit)

(Per share/unit)

Net Income

$

1.17

$

1.27

Add:  Real Estate Depreciation/Amortization

0.99

0.99

Less:  Gain on Sale of Real Estate Through April 21, 2021

(0.31)

(0.31)

FFO (NAREIT Definition)

$

1.85

$

1.95

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

(In thousands except per share/Unit data)

Three Months Ended

March 31,

March 31,

2021

2020

Statements of Operations and Other Data:

    Total Revenues

$

116,259

$

110,343

    Property Expenses

(33,242)

(29,081)

    General and Administrative (a)

(8,564)

(9,251)

    Depreciation of Corporate FF&E

(188)

(194)

    Depreciation and Other Amortization of Real Estate

(31,787)

(30,737)

      Total Expenses

(73,781)

(69,263)

    Gain on Sale of Real Estate

34,645

13,993

    Interest Expense

(12,673)

(12,804)

    Amortization of Debt Issuance Costs

(949)

(788)

      Income from Operations Before Equity in Loss of        

         Joint Ventures and Income Tax Benefit

$

63,501

$

41,481

    Equity in Loss of Joint Ventures

(73)

(29)

    Income Tax Benefit

155

77

      Net Income

$

63,583

$

41,529

    Net Income Attributable to the Noncontrolling Interests

(1,385)

(895)

      Net Income Available to First Industrial Realty Trust, Inc.'s

         Common Stockholders and Participating Securities

$

62,198

$

40,634

RECONCILIATION OF NET INCOME AVAILABLE TO

FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON

STOCKHOLDERS AND PARTICIPATING SECURITIES

TO FFO (b) AND AFFO (b)

     Net Income Available to First Industrial Realty Trust, Inc.'s

         Common Stockholders and Participating Securities

$

62,198

$

40,634

     Depreciation and Other Amortization of Real Estate

31,787

30,737

     Noncontrolling Interests

1,385

895

     Gain on Sale of Real Estate

(34,645)

(13,993)

     Income Tax Provision - Allocable to Gain on Sale of Real Estate       

79

—

     Funds From Operations (NAREIT) ("FFO") (b)

$

60,804

$

58,273

     Amortization of Equity Based Compensation

3,613

3,641

     Amortization of Debt Discounts and Hedge Costs

104

104

     Amortization of Debt Issuance Costs

949

788

     Depreciation of Corporate FF&E

188

194

     Non-incremental Building Improvements

(2,350)

(1,505)

     Non-incremental Leasing Costs

(4,619)

(3,498)

     Capitalized Interest

(1,923)

(1,558)

     Capitalized Overhead

(1,623)

(1,720)

     Straight-Line Rent, Amortization of Above (Below) Market

         Leases and Lease Inducements

(5,428)

(3,171)

     Adjusted Funds From Operations ("AFFO") (b)

$

49,715

$

51,548

RECONCILIATION OF NET INCOME AVAILABLE TO

FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON

Three Months Ended

STOCKHOLDERS AND PARTICIPATING SECURITIES TO ADJUSTED

March 31,

March 31,

EBITDA (b) AND NOI (b)

2021

2020

     Net Income Available to First Industrial Realty Trust, Inc.'s 

         Common Stockholders and Participating Securities

$

62,198

$

40,634

     Interest Expense

12,673

12,804

     Depreciation and Other Amortization of Real Estate

31,787

30,737

     Severance and Retirement Benefit Expense (a)

—

1,204

     Income Tax Benefit - Not Allocable to Gain on Sale of Real Estate

(234)

(77)

     Income Tax Provision - Allocable to Gain on Sale of Real Estate

79

—

     Noncontrolling Interests

1,385

895

     Amortization of Debt Issuance Costs

949

788

     Depreciation of Corporate FF&E

188

194

     Gain on Sale of Real Estate

(34,645)

(13,993)

     Adjusted EBITDA (b)

$

74,380

$

73,186

     General and Administrative (a)

8,564

8,047

     FFO from Joint Ventures

73

29

     Net Operating Income ("NOI") (b)

$

83,017

$

81,262

     Non-Same Store NOI

(5,370)

(5,379)

     Same Store NOI Before Same Store Adjustments (b)

$

77,647

$

75,883

     Straight-line Rent

(2,342)

(1,639)

     Above (Below) Market Lease Amortization

(225)

(281)

     Lease Termination Fees

(125)

(616)

     Same Store NOI (Cash Basis without Termination Fees) (b)

$

74,955

$

73,347

Weighted Avg. Number of Shares/Units Outstanding - Basic

131,172

129,070

Weighted Avg. Number of Shares Outstanding - Basic

129,088

126,934

Weighted Avg. Number of Shares/Units Outstanding - Diluted

131,634

129,400

Weighted Avg. Number of Shares Outstanding - Diluted

129,172

127,111

Per Share/Unit Data:

Net Income Available to First Industrial Realty Trust, Inc.'s 

     Common Stockholders and Participating Securities

$

62,198

$

40,634

 Less: Allocation to Participating Securities 

(61)

(59)

Net Income Available to First Industrial Realty Trust, Inc.'s

     Common Stockholders

$

62,137

$

40,575

Basic and Diluted Per Share

$

0.48

$

0.32

FFO (NAREIT) (b)

$

60,804

$

58,273

Less: Allocation to Participating Securities 

(153)

(172)

FFO (NAREIT) Allocable to Common Stockholders and Unitholders

$

60,651

$

58,101

Basic and Diluted Per Share/Unit

$

0.46

$

0.45

Common Dividends/Distributions Per Share/Unit

$

0.27

$

0.25

Balance Sheet Data (end of period):

March 31, 2021

December 31, 2020

      Gross Real Estate Investment

$

4,146,176

$

4,087,633

      Total Assets

3,816,853

3,791,938

      Debt

1,593,942

1,594,641

      Total Liabilities

1,835,968

1,844,618

      Total Equity

1,980,885

1,947,320

a)

Three Months Ended

March 31, 2020

General and Administrative per the Form 10-Q

$

9,251

Severance and Retirement Benefit Expense

(1,204)

General and Administrative per Reconciliation within the Selected Financial Data

$

8,047

b) Investors in, and analysts following, the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), adjusted EBITDA and adjusted funds from operations ("AFFO"), variously defined below, as supplemental performance measures. While we believe net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, as defined by GAAP, is the most appropriate measure, we consider FFO, NOI, adjusted EBITDA and AFFO, given their wide use by, and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, FFO, NOI, adjusted EBITDA and AFFO are commonly used in various ratios, pricing multiples/yields and returns and valuation calculations used to measure financial position, performance and value.

In accordance with the NAREIT definition of FFO, we calculate FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate. We also exclude the same adjustments from our share of net income from unconsolidated joint ventures.

NOI is defined as our revenues, minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses.

Adjusted EBITDA is defined as NOI minus general and administrative expenses and the equity in FFO from our investment in joint ventures. For the three months ended March 31, 2020, $1,204 of severance and retirement benefit expense included in general and administrative expense was not deducted to arrive at adjusted EBITDA.

AFFO is defined as adjusted EBITDA minus interest expense, minus capitalized interest and overhead, (minus)/plus amortization of debt discounts and hedge costs, minus straight-line rent, amortization of above (below) market leases and lease inducements, minus provision for income taxes or plus benefit for income taxes not allocable to gain on sale of real estate, plus amortization of equity based compensation, minus severance and retirement benefit expense and minus non-incremental capital expenditures. Non-incremental capital expenditures refer to building improvements and leasing costs required to maintain current revenues plus tenant improvements amortized back to the tenant over the lease term. Excluded are first generation leasing costs, capital expenditures underwritten at acquisition and development/redevelopment costs. 

FFO, NOI, adjusted EBITDA and AFFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. FFO, NOI, adjusted EBITDA and AFFO should not be considered as substitutes for net income available to common stockholders and participating securities (calculated in accordance with GAAP) as a measure of results of operations or cash flows (calculated in accordance with GAAP) as a measure of liquidity. FFO, NOI, adjusted EBITDA and AFFO as currently calculated by us may not be comparable to similarly titled, but variously calculated, measures of other REITs.

In addition, we consider cash-basis same store NOI ("SS NOI") to be a useful supplemental measure of our operating performance. Same store properties include all properties owned prior to January 1, 2020 and held as an in service property through the end of the current reporting period (including certain land parcels that are leased under ground lease arrangements where we are the lessor), and developments and redevelopments that were placed in service prior to January 1, 2020 (the "Same Store Pool"). Properties which are at least 75% occupied at acquisition are placed in service, unless we anticipate tenant move-outs within two years of ownership would drop occupancy below 75%. Acquired properties with occupancy greater than 75% at acquisition, but with tenants that we anticipate will move out within two years of ownership, will be placed in service upon the earlier of reaching 90% occupancy or twelve months after move out. Acquisitions that are less than 75% occupied at the date of acquisition, developments and redevelopments are placed in service as they reach the earlier of a) stabilized occupancy (defined as 90% occupied), or b) one year subsequent to acquisition or development/redevelopment construction completion.

We define SS NOI as NOI, less NOI of properties not in the Same Store Pool, less the impact of straight-line rent, the amortization of above (below) market rent and the impact of lease termination fees. We exclude lease termination fees, straight-line rent and above (below) market rent in calculating SS NOI because we believe it provides a better measure of actual cash basis rental growth for a year-over-year comparison. In addition, we believe that SS NOI helps the investing public compare the operating performance of a company's real estate as compared to other companies. While SS NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. SS NOI also does not reflect general and administrative expense, interest expense, depreciation and amortization, income tax benefit and expense, gains and losses on the sale of real estate, equity in income or loss from our joint ventures, capital expenditures and leasing costs. Further, our computation of SS NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating SS NOI.