INVESTORS

Low End of

High End of

Guidance for 2020

Guidance for 2020

(Per share/unit)

(Per share/unit)

Net Income

$     1.11

$     1.15

Add:   Real Estate Depreciation/Amortization

0.99

0.99

Less:   Gain on Sale of Real Estate Including FR's Share of Joint Venture Gain, Net of Allocable Income Tax Provision, Through October 21, 2020

(0.28)

(0.28)

FFO (NAREIT Definition)

$     1.82

$     1.86

Add: Severance Costs Related to the Closure of Our Indianapolis Office and Retirement Benefit Expense for Accelerated Vesting of Equity Awards

0.01

0.01

Less: Gains Related to the Final Settlement of Two Insurance Claims for Damaged Properties

(0.05)

(0.05)

FFO Before Severance Costs Related to the Closure of Our Indianapolis Office, Retirement Benefit Expense for Accelerated Vesting of Equity Awards and Gains Related to the Final Settlement of Two Insurance Claims for Damaged Properties

$     1.78

$     1.82

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

 (In thousands except per share/Unit data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2020

2019

2020

2019

Statements of Operations and Other Data:

    Total Revenues 

$       116,194

$       106,590

$       335,739

$       315,226

    Property Expenses

(30,355)

(28,396)

(87,487)

(85,943)

    General and Administrative (a) 

(7,485)

(6,945)

(24,970)

(20,529)

    Depreciation of Corporate FF&E 

(217)

(156)

(611)

(527)

    Depreciation and Other Amortization of Real Estate 

(34,152)

(29,993)

(96,921)

(89,451)

        Total Expenses

(72,209)

(65,490)

(209,989)

(196,450)

    Gain on Sale of Real Estate 

6,525

52,489

29,594

53,378

    Interest Expense 

(12,775)

(12,466)

(37,864)

(37,565)

    Amortization of Debt Issuance Costs 

(905)

(805)

(2,477)

(2,430)

       Income from Operations Before Equity in (Loss) Income of  

          Joint Ventures and Income Tax Benefit (Provision) 

36,830

80,318

115,003

132,159

    Equity in (Loss) Income of Joint Ventures 

(162)

(72)

(236)

16,288

    Income Tax Benefit (Provision) 

39

(244)

(105)

(3,392)

         Net Income 

36,707

80,002

114,662

145,055

    Net Income Attributable to the Noncontrolling Interests 

(748)

(1,691)

(2,400)

(3,141)

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

$         35,959

$         78,311

$       112,262

$       141,914

 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 

$         35,959

$         78,311

$       112,262

$       141,914

     Depreciation and Other Amortization of Real Estate 

34,152

29,993

96,921

89,451

     Noncontrolling Interests 

748

1,691

2,400

3,141

     Gain on Sale of Depreciable Real Estate 

(6,525)

(52,489)

(29,594)

(53,378)

     Gain on Sale of Real Estate from Joint Ventures 

-

-

-

(16,714)

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

-

-

-

3,095

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

$         64,334

$         57,506

$       181,989

$       167,509

     Amortization of Equity Based Compensation 

3,078

2,130

9,827

5,945

     Amortization of Debt Discounts and Hedge Costs 

104

85

312

135

     Amortization of Debt Issuance Costs 

905

805

2,477

2,430

     Depreciation of Corporate FF&E 

217

156

611

527

     Non-incremental Building Improvements 

(5,588)

(3,140)

(10,191)

(7,802)

     Non-incremental Leasing Costs 

(5,747)

(4,138)

(13,706)

(11,629)

     Capitalized Interest 

(1,571)

(1,841)

(5,029)

(4,161)

     Capitalized Overhead 

(1,114)

(839)

(3,832)

(2,458)

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

(1,899)

(1,503)

(7,434)

(7,760)

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

$         52,719

$         49,221

$       155,024

$       142,736

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

 (In thousands except per share/Unit data)

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

Three Months Ended

Nine Months Ended

September 30,

2020

September 30,

2019

September 30,

2020

September 30,

2019

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

         Common Stockholders and Participating Securities 

$         35,959

$         78,311

$       112,262

$       141,914

     Interest Expense 

12,775

12,466

37,864

37,565

     Depreciation and Other Amortization of Real Estate 

34,152

29,993

96,921

89,451

     Severance and Retirement Benefit Expense (a) 

-

-

1,204

-

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

(39)

244

105

297

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

-

-

-

3,095

     Noncontrolling Interests 

748

1,691

2,400

3,141

     Amortization of Debt Issuance Costs 

905

805

2,477

2,430

     Depreciation of Corporate FF&E 

217

156

611

527

     Gain on Sale of Real Estate 

(6,525)

(52,489)

(29,594)

(53,378)

     Gain on Sale of Real Estate from Joint Ventures  

-

-

-

(16,714)

     Adjusted EBITDA (b) 

$         78,192

$         71,177

$       224,250

$       208,328

     General and Administrative (a) 

7,485

6,945

23,766

20,529

     FFO from Joint Ventures 

162

72

236

426

     Net Operating Income ("NOI") (b) 

$         85,839

$         78,194

$       248,252

$       229,283

     Non-Same Store NOI 

(13,508)

(6,747)

(31,160)

(18,289)

     Same Store NOI Before Same Store Adjustments (b) 

$         72,331

$         71,447

$       217,092

$       210,994

     Straight-line Rent 

(357)

(95)

(383)

(4,826)

     Above (Below) Market Lease Amortization 

(231)

(265)

(711)

(789)

     Lease Termination Fees 

(15)

(246)

(717)

(711)

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

$         71,728

$         70,841

$       215,281

$       204,668

Weighted Avg. Number of Shares/Units Outstanding - Basic

129,914

128,837

129,357

128,829

Weighted Avg. Number of Shares Outstanding - Basic

127,903

126,480

127,306

126,295

Weighted Avg. Number of Shares/Units Outstanding - Diluted

130,294

129,256

129,720

129,219

Weighted Avg. Number of Shares Outstanding - Diluted

128,101

126,783

127,495

126,578

Per Share/Unit Data:

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

       Common Stockholders and Participating Securities 

$         35,959

$         78,311

$       112,262

$       141,914

 Less: Allocation to Participating Securities 

(59)

(170)

(177)

(319)

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

$         35,900

$         78,141

$       112,085

$       141,595

 Basic and Diluted Per Share 

$             0.28

$             0.62

$             0.88

$             1.12

 FFO (NAREIT) (b) 

$         64,334

$         57,506

$       181,989

$       167,509

 Less: Allocation to Participating Securities 

(219)

(179)

(595)

(493)

 FFO (NAREIT) Allocable to Common Stockholders and Unitholders 

$         64,115

$         57,327

$       181,394

$       167,016

 Basic Per Share/Unit 

$             0.49

$             0.44

$             1.40

$             1.30

 Diluted Per Share/Unit 

$             0.49

$             0.44

$             1.40

$             1.29

 Common Dividends/Distributions Per Share/Unit 

$             0.25

$             0.23

$             0.75

$             0.69

Balance Sheet Data (end of period):

September 30,

December 31,

2020

2019

 Gross Real Estate Investment

$    4,093,787

$    3,830,209

      Total Assets

3,738,857

3,518,828

      Debt

1,605,494

1,483,565

      Total Liabilities

1,850,258

1,720,565

      Total Equity

1,888,599

1,798,263

Nine Months Ended

September 30, 2020

a)

     General and Administrative per the Form 10-Q

24,970

     Severance and Retirement Benefit Expense

(1,204)

     General and Administrative per Reconciliation within the Selected Financial Data

23,766

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  nine months ended September 30, 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 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 equity based compensation, minus severance and retirement benefit 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, 2019 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, 2019 (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.