INVESTORS

Low End of

High End of

Guidance for 2020

Guidance for 2020

(Per share/unit)

(Per share/unit)

Net Income

0.92

1.02

Add:   Real Estate Depreciation/Amortization

0.96

0.96

Less:   Net Gain on Sale of Real Estate Through February 12, 2020

(0.11)

(0.11)

FFO (NAREIT Definition)

$1.77

$1.87

Plus:  Severance Costs Related to Closure of Indianapolis Office and Costs Related to Projected Vesting of Equity Awards for Retirement-Eligible Employees

0.01

0.01

FFO Before Severance Costs Related to Closure of Indianapolis Office and Costs Related to Projected Vesting of Equity Awards for Retirement-Eligible Employees

$1.78

$1.88

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

 (In thousands except per share/Unit data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

December 31,

December 31,

2019

2018

2019

2018

Statements of Operations and Other Data:

    Total Revenues (a)

$       110,758

$       105,082

$       425,984

$       403,954

    Property Expenses (a)

(30,642)

(30,424)

(116,585)

(116,854)

    General and Administrative (b) 

(8,040)

(6,279)

(28,569)

(27,749)

    Impairment of Real Estate 

-

-

-

(2,756)

    Depreciation of Corporate FF&E 

(186)

(223)

(713)

(800)

    Depreciation and Other Amortization of Real Estate 

(31,065)

(30,640)

(120,516)

(115,659)

        Total Expenses

(69,933)

(67,566)

(266,383)

(263,818)

    Gain on Sale of Real Estate 

71,564

28,309

124,942

81,600

    Interest Expense 

(12,708)

(12,957)

(50,273)

(50,775)

    Amortization of Debt Issuance Costs 

(788)

(854)

(3,218)

(3,404)

    Loss from Retirement of Debt 

-

-

-

(39)

       Income from Operations Before Equity in (Loss) Income of  

          Joint Venture and Income Tax (Provision) Benefit 

98,893

52,014

231,052

167,518

    Equity in (Loss) Income of Joint Venture 

(53)

(77)

16,235

(276)

    Income Tax (Provision) Benefit 

(14)

(1)

(3,406)

92

         Net Income 

98,826

51,936

243,881

167,334

    Net Income Attributable to the Noncontrolling Interest 

(1,965)

(1,109)

(5,106)

(4,095)

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

             Common Stockholders and Participating Securities 

$         96,861

$         50,827

$       238,775

$       163,239

RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO FFO (c) AND AFFO (c) 

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

         Common Stockholders and Participating Securities 

$         96,861

$         50,827

$       238,775

$       163,239

     Depreciation and Other Amortization of Real Estate 

31,065

30,640

120,516

115,659

     Impairment of Depreciable Real Estate 

-

-

-

2,285

     Noncontrolling Interest 

1,965

1,109

5,106

4,095

     Gain on Sale of Depreciable (and Non-Depreciable for 2019) Real Estate 

(71,564)

(28,249)

(124,942)

(80,909)

     Gain on Sale of Real Estate from Joint Venture 

-

-

(16,714)

-

     Income Tax Provision - Gain on Sale of Real Estate from Joint Venture 

-

-

3,095

-

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

$         58,327

$         54,327

$       225,836

$       204,369

     Loss from Retirement of Debt 

-

-

-

39

     Amortization of Stock Based Compensation 

2,431

1,897

8,376

7,586

     Amortization of Debt Discounts (Premiums) and Hedge Costs 

104

(10)

239

(44)

     Amortization of Debt Issuance Costs 

788

854

3,218

3,404

     Depreciation of Corporate FF&E 

186

223

713

800

     Impairment of Non-Depreciable Real Estate 

-

-

-

471

     Gain on Sale of Non-Depreciable Real Estate (for 2018) 

-

(60)

-

(691)

     Non-incremental Building Improvements 

(6,007)

(5,410)

(13,809)

(14,065)

     Non-incremental Leasing Costs 

(8,510)

(6,990)

(20,139)

(24,297)

     Capitalized Interest 

(1,596)

(1,002)

(5,757)

(5,869)

     Capitalized Overhead 

(767)

(727)

(3,225)

(1,714)

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

        and Lease Inducements 

(3,810)

(901)

(11,570)

(2,479)

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

$         41,146

$         42,201

$       183,882

$       167,510

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

 (In thousands except per share/Unit data)

Three Months Ended

Twelve Months Ended

RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO ADJUSTED EBITDA (c) AND NOI (c)

December 31,

2019

December 31,

2018

December 31,

2019

December 31,

2018

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

         Common Stockholders and Participating Securities 

$         96,861

$         50,827

$       238,775

$       163,239

     Interest Expense 

12,708

12,957

50,273

50,775

     Depreciation and Other Amortization of Real Estate 

31,065

30,640

120,516

115,659

     Impairment of Real Estate 

-

-

-

2,756

     Severance Expense (b) 

-

-

-

1,298

     Income Tax Provision (Benefit) 

14

1

311

(92)

     Income Tax Provision - Gain on Sale of Real Estate from Joint Venture 

-

-

3,095

-

     Noncontrolling Interest 

1,965

1,109

5,106

4,095

     Loss from Retirement of Debt 

-

-

-

39

     Amortization of Debt Issuance Costs 

788

854

3,218

3,404

     Depreciation of Corporate FF&E 

186

223

713

800

     Gain on Sale of Real Estate 

(71,564)

(28,309)

(124,942)

(81,600)

     Gain on Sale of Real Estate from Joint Venture  

-

-

(16,714)

-

     Adjusted EBITDA (c) 

$         72,023

$         68,302

$       280,351

$       260,373

     General and Administrative (b) 

8,040

6,279

28,569

26,451

     FFO from Joint Venture 

53

77

479

276

     Net Operating Income ("NOI") (c) 

$         80,116

$         74,658

$       309,399

$       287,100

     Non-Same Store NOI 

(12,561)

(8,787)

(44,600)

(30,958)

     Same Store NOI Before Same Store Adjustments (c) 

$         67,555

$         65,871

$       264,799

$       256,142

     Straight-line Rent 

(231)

680

301

727

     Above (Below) Market Lease Amortization 

(260)

(260)

(1,027)

(1,013)

     Lease Termination Fees 

(345)

(922)

(1,575)

(1,183)

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

$         66,719

$         65,369

$       262,498

$       254,673

Weighted Avg. Number of Shares/Units Outstanding - Basic

128,837

128,526

128,831

126,921

Weighted Avg. Number of Shares Outstanding - Basic

126,682

125,897

126,392

123,804

Weighted Avg. Number of Shares/Units Outstanding - Diluted

129,308

128,878

129,241

127,308

Weighted Avg. Number of Shares Outstanding - Diluted

127,030

126,249

126,691

124,191

Per Share/Unit Data:

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

       Common Stockholders and Participating Securities 

$         96,861

$         50,827

$       238,775

$       163,239

 Less: Allocation to Participating Securities 

(199)

(164)

(518)

(513)

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

$         96,662

$         50,663

$       238,257

$       162,726

 Basic Per Share 

$             0.76

$             0.40

$             1.89

$             1.31

 Diluted Per Share 

$             0.76

$             0.40

$             1.88

$             1.31

 FFO (NAREIT) (c) 

$         58,327

$         54,327

$       225,836

$       204,369

 Less: Allocation to Participating Securities 

(186)

(172)

(679)

(625)

 FFO (NAREIT) Allocable to Common Stockholders and Unitholders 

$         58,141

$         54,155

$       225,157

$       203,744

 Basic Per Share/Unit 

$             0.45

$             0.42

$             1.75

$             1.61

 Diluted Per Share/Unit 

$             0.45

$             0.42

$             1.74

$             1.60

 Common Dividends/Distributions Per Share/Unit 

$         0.2300

$         0.2175

$         0.9200

$         0.8700

Balance Sheet Data (end of period):

December 31,

December 31,

2019

2018

      Gross Real Estate Investment

$    3,830,209

$    3,673,644

      Total Assets

3,518,828

3,142,691

      Debt

1,483,565

1,297,783

      Total Liabilities

1,720,565

1,462,780

      Total Equity

1,798,263

1,679,911

a) We adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02") effective January 1, 2019. Prior to the adoption of ASU 2016-02, we included reimbursement revenue related to real estate taxes paid directly by certain tenants to the taxing authorities in Total Revenues with a corresponding expense amount in Property Expenses. Additionally, ASU 2016-02 requires credit losses on lease receivables be presented within Total Revenues. Prior to the adoption of ASU 2016-02, we included the credit losses on lease receivables within Property Expenses. The 2018 Statements of Operations have not been restated for either of these changes.

Twelve Months Ended

December 31, 2018

b)

     General and Administrative per the Form 10-Q

27,749

     Severance Expense

(1,298)

     General and Administrative per Reconciliation within the Selected Financial Data

26,451

c) 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 restated NAREIT definition of FFO which we adopted effective January 1, 2019, 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 an unconsolidated joint venture. For the comparative 2018 period, gain and losses from the sale of non-depreciable real estate as well as impairment of non-depreciable real estate were not excluded from FFO.

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 a joint venture. For the twelve months ended December 31, 2018, $1,298 of severance 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 (premiums)/discounts and hedge costs, minus straight-line rental income, amortization of above (below) market leases and lease inducements, minus provision for income taxes or plus benefit for income taxes, plus amortization of stock based compensation, minus severance expense and minus non-incremental capital expenditures. For AFFO purposes, we also exclude the income tax provision or benefit related to the gain or loss on sale of real estate, which is comparable to the NAREIT FFO treatment. 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, 2018 and held as an in service property through the end of the current reporting period (including nine 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, 2018 (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 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 retirement of debt, impairment of real estate, gains and losses on the sale of real estate, equity in income or loss from our joint venture, 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.