falsefalse3122019-10-238K1 North Wacker Drive, Suite 4200Chicago60606Illinois00009218250001033128☐344-4300☐☐☐☐ 0000921825 2019-10-23 2019-10-23 0000921825 fr:FirstIndustrialL.P.Member 2019-10-23 2019-10-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________________________________________________________________________

FORM 8-K

______________________________________________________________________________________________________

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

October 23, 2019

Date of Report (Date of earliest event reported)

______________________________________________________________________________________________________

FIRST INDUSTRIAL REALTY TRUST, INC.

FIRST INDUSTRIAL, L.P.

(Exact name of registrant as specified in its charter)

 _____________________________________________________________________________________________________

 

First Industrial Realty Trust, Inc.:
Maryland		1-13102		36-3935116
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)
First Industrial, L.P.:
Delaware		333-21873		36-3924586
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

1 North Wacker Drive, Suite 4200

Chicago, Illinois 60606

(Address of principal executive offices, zip code)

(312) 344-4300

(Registrant’s telephone number, including area code)

Title of each class:		Trading Symbol(s):		Name of each exchange on which registered:
Common Stock		FR		New York Stock Exchange

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Act of 1934 (§240.12b-2 of this chapter).
☐	Emerging growth company
☐	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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Item 2.02. Results of Operations and Financial Condition.

On October 23, 2019, First Industrial Realty Trust, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2019 and certain other information.

Attached and incorporated by reference as Exhibit 99.1 is a copy of the Company’s press release dated October 23, 2019, announcing its financial results for the fiscal quarter ended September 30, 2019 and certain other information.

On October 24, 2019, the Company will hold an investor conference and webcast at 12:00 p.m. eastern time to disclose and discuss the financial results for the fiscal quarter ended September 30, 2019 and certain other information.

The information furnished in this report under this Item 2.02, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits. The following are file herewith:

Exhibit No.		Description
99.1		First Industrial Realty Trust, Inc. Press Release dated October 23, 2019(furnished pursuant to Item 2.02)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FIRST INDUSTRIAL REALTY TRUST, INC.
	By:	/S/    SCOTT A. MUSIL
		Scott A. Musil Chief Financial Officer (Principal Financial Officer)

	FIRST INDUSTRIAL, L.P.
	By:	FIRST INDUSTRIAL REALTY TRUST, INC.
		as general partner
	By:	/S/    SCOTT A. MUSIL
		Scott A. Musil Chief Financial Officer (Principal Financial Officer)

Date: October 23, 2019

•	Cash Rental Rates Were Up 31.9%, Exceeding the Previous Quarterly Record Established in 2Q19

•	Occupancy of 97.7%, Up 40 Basis Points from 2Q19; Cash Same Store NOI Grew 2.9%

•	Started a 100,000 Square-Foot Development in Philadelphia; Estimated Total Investment of $12.3 Million

•	Signed 141,000 Square Feet of New Leases for Existing Developments in the Third Quarter

•	Preleased 77% of a 435,000 Square-Foot Planned New Fourth Quarter Start at First Park 121 in Dallas

•	Added New Development Sites in the Inland Empire and South Florida in the Third and Fourth Quarter To-Date; Developable to 1.4 Million Square Feet

•	Acquired Four Buildings Totaling 229,000 Square Feet for $34.4 Million

•	Sold 1.6 Million Square Feet Plus Several Land Sites for $94.0 Million

•	Closed on $150 Million Private Placement Offering

•	Paid Off $40 Million of Mortgage Loans at a Weighted Average Interest Rate of 7.3%

•	2019 FFO Guidance Increased $0.01 at Midpoint to $1.73 Per Share

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•	In service occupancy was 97.7% at the end of the third quarter of 2019, compared to 97.3% at the end of the second quarter of 2019, and 97.6% at the end of the third quarter of 2018.

•	Tenant retention by square footage was 82.3%.

•	Same property cash basis net operating income (“SS NOI”) increased 2.9%, reflecting contractual rent escalations and increased rental rates on leasing, offset by a slight decrease in average occupancy and the negative impact of tax true-ups in markets where taxes are paid in arrears.

•	Rental rates increased 31.9% on a cash basis and increased 50.4% on a straight-line basis; leasing costs were $1.87 per square foot.

•	Leased 100% of its 120,000 square-foot First Park at Central Crossing Building III in Central New Jersey. The lease will commence upon completion in the fourth quarter.

•	Leased 21,000 square feet of its 67,000 square-foot First Glacier Logistics Center in Seattle to bring that building to 100% leased.

•	Preleased 333,000 square feet, or 77%, of a 435,000 square-foot building in northwest Dallas at First Park 121; construction expected to start on this new facility in the fourth quarter.

•	Acquired a 6.9-acre site in northeast Philadelphia for $2.0 million on which the Company commenced development of a 100,000 square-foot building; total estimated investment of $12.3 million.

•	Acquired three land sites in the Inland Empire comprised of 42 acres for $19.0 million that can support development of up to 774,000 square feet.

•	Entered into a 50-year ground lease in South Florida for a site that can support 374,000 square feet of development.

•	Acquired three buildings in Southern California: a 91,000 square-foot building in the Inland Empire for $15.2 million, a 44,000 square-foot building in the Inland Empire for $5.6 million and a 41,000 square-foot building in San Diego for $7.3 million.

•	Acquired a 54,000 square-foot building in Orlando for $6.3 million.

•	Sold eight buildings plus two units comprised of 1.6 million square feet and several land parcels for $94.0 million.

•	Recognized the sale of a 618,000 square-foot building in Phoenix for $54.5 million in which the tenant exercised its purchase option; transaction scheduled to close in 3Q20.

•	Acquired a 19.6-acre future development site in South Florida for $19.8 million with three in-place land leases; potentially buildable up to 294,000 square feet.

•	Sold one building in Minneapolis comprised of 84,000 square feet for $4.0 million.

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•	Closed on a private placement offering on July 23 for $150 million of fixed rate senior unsecured notes with a coupon rate of 3.97%. The 3.97% Series E Guaranteed Senior Notes have a 10-year term and an effective interest rate of 4.23% reflecting the settlement of interest rate protection agreements related to the offering.

•	Paid off $40 million of mortgage loans at a weighted average interest rate of 7.3%.

•	In service occupancy at year-end fourth quarter of 96.7% to 97.7%. This implies a full year quarter-end average in service occupancy of 97.25% to 97.5%.

•	Fourth quarter same-store NOI growth on a cash basis before termination fees of 1.25% to 2.75%. This implies a quarterly average same-store NOI growth for the full year 2019 of 2.8% to 3.2%, an increase of 50 basis points at the midpoint compared to prior guidance due to third quarter performance.

•	General and administrative expense of approximately $27.5 million to $28.5 million.

•	Guidance includes the incremental costs expected in 2019 related to the Company’s developments completed and under construction as of October 23, 2019 and the aforementioned planned start in Dallas in the fourth quarter. In total, the Company expects to capitalize $0.04 per share of interest related to these development projects in 2019.

•	Other than the above, guidance does not include the impact of:

◦	any other future debt repurchases prior to maturity or future debt issuances,

◦	any future investments or property sales after the date of this earnings release,

◦	any future gains related to the final settlement of two insurance claims for damaged properties previously disclosed, or

◦	any future equity issuances.

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