As filed with the Securities and Exchange Commission on September 7, 2000
Registration No. 333- 38850
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
FIRST INDUSTRIAL REALTY TRUST, INC.
(Exact name of registrant as specified in its charter)
Maryland 36-3935116
(State or other jurisdiction (I.R.S. Employer Identification Number)
of incorporation or organization)
311 S. Wacker Drive, Suite 4000
Chicago, Illinois 60606
(312) 344-4300
(Address, including zip code, and telephone number, including area
code, of registrant's principal executive offices)
Michael W. Brennan
President and Chief Executive Officer
First Industrial Realty Trust, Inc.
311 S. Wacker Drive, Suite 4000
Chicago, Illinois 60606
(312) 344-4300
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copies to:
Gerald S. Tanenbaum, Esq.
Roger Andrus, Esq.
Cahill Gordon & Reindel
80 Pine Street
New York, New York 10005
(212) 701-3000
Approximate date of commencement of proposed sale to the public: From time
to time after the effective date of this registration statement.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box: / /
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box: /X/
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering: / /
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering: / /
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box: / /
The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
PROSPECTUS
First Industrial Realty Trust, Inc.
242,876 Shares
Common Stock
The selling stockholders listed in this prospectus may, from time to time,
offer and sell up to 242,876 shares of our common stock. The purchase price of
any shares of common stock offered by the selling stockholders will be the
market price of a share of common stock at that time unless otherwise indicated
in an accompanying prospectus supplement.
We will receive no proceeds from the sale of the common stock, but will
incur expenses in connection with this offering. See "Plan of Distribution."
New York Stock Exchange Trading Symbol: FR
On September 7, 2000, the last reported sale price of a share of common
stock on the New York Stock Exchange was $30.50 per share.
Investing in the common stock involves certain risks. See "Risk Factors"
beginning on page 1.
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Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
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September 8, 2000
TABLE OF CONTENTS
Page
RISK FACTORS...............................................................1
USE OF PROCEEDS............................................................7
SELLING STOCKHOLDERS.......................................................7
PLAN OF DISTRIBUTION.......................................................9
DESCRIPTION OF COMMON STOCK...............................................11
CERTAIN PROVISIONS OF MARYLAND LAW AND THE FIRST INDUSTRIAL
REALTY TRUST INC. ARTICLES OF INCORPORATION AND BYLAWS..................13
RESTRICTIONS ON TRANSFERS OF CAPITAL STOCK................................15
FEDERAL INCOME TAX CONSIDERATIONS.........................................16
EXPERTS...................................................................19
LEGAL MATTERS.............................................................19
WHERE YOU CAN FIND MORE INFORMATION.......................................19
No dealer, salesperson or other person has been authorized to give any
information or make any representations other than those contained in or
incorporated by reference in this Prospectus and any accompanying Prospectus
Supplement and if given or made, such other information or representations must
not be relied upon as having been authorized by the Company or by any of the
Selling Stockholders. This Prospectus and any accompanying Prospectus Supplement
do not constitute an offer to sell, or a solicitation of an offer to buy, to any
person in any jurisdiction where such an offer or solicitation would be
unlawful. Neither the delivery of this Prospectus nor any sale made hereunder
shall, under any circumstances, create an implication that the information
contained herein is correct as of any time subsequent to the date hereof.
FIRST INDUSTRIAL REALTY TRUST, INC.
In this prospectus, the terms "we" and "our" refer to First Industrial
Realty Trust, Inc. and its subsidiaries, including First Industrial, L.P.,
unless the context otherwise requires. Unless otherwise indicated, all
information regarding our properties is as of June 30, 2000.
General
First Industrial Realty Trust, Inc. is a real estate investment trust, or
REIT, under Sections 856 through 860 of the Internal Revenue Code of 1986. First
Industrial Realty Trust, Inc. and its consolidated partnerships and limited
liability companies are a self-administered and fully integrated real estate
company which owns, manages, acquires, sells and develops industrial real
estate. As of June 30, 2000, our portfolio consisted of 528 light industrial
properties, 163 bulk warehouse properties, 157 R&D/flex properties, 83 regional
warehouse properties and 44 manufacturing properties containing approximately
68.3 million square feet of gross leasable area located in 24 states.
Our interests in our properties and land parcels are held through
partnerships and limited liability companies controlled by First Industrial
Realty Trust, Inc., including First Industrial, L.P., of which First Industrial
Realty Trust, Inc. is the sole general partner.
We utilize an operating approach that combines the effectiveness of
decentralized, locally based property management, acquisition, sales and
development functions with the cost efficiencies of centralized acquisition,
sales and development support, capital markets expertise, asset management and
fiscal control systems. At June 30, 2000, we had 278 employees.
We have grown and will seek to continue to grow through the development of
industrial properties and acquisition of additional industrial properties.
First Industrial Realty Trust, Inc. is a Maryland corporation organized on
August 10, 1993, and which completed its initial public offering in June 1994.
Our principal executive offices are located at 311 S. Wacker Drive, Suite 4000,
Chicago, Illinois 60606, telephone number (312) 344-4300.
RISK FACTORS
Forward-looking statements may prove inaccurate.
Your investment in the common stock will involve certain risks. For
example, there is the risk that an investment in the common stock will result in
a loss. You should carefully consider the following discussion of risks before
deciding whether an investment in the common stock is suitable for you. We make
statements in this prospectus and the documents we incorporate by reference that
are not based on historical facts including statements regarding, among other
items:
o the condition of the real estate market
o legislative or regulatory changes affecting the real estate market
o legislative or regulatory changes affecting the taxation of REITs
o availability of capital
o interest rates
o competition
o supply and demand for industrial properties in our current and
proposed market areas, and
o general accounting principles, policies and guidelines applicable to
REITs.
Sometimes these statements will contain words such as "believes,"
"expects," "intends," "plans" and other similar words. These statements are not
guarantees of our future performance and are subject to risks, uncertainties and
other important factors that could cause our actual performance or achievements
to be materially different from those we anticipate. These risks, uncertainties
and factors include those discussed below and those set forth elsewhere in this
prospectus and in the documents we incorporate by reference, including our 1999
Annual Report on Form 10-K. In light of these risks and uncertainties, the
forward-looking statements discussed in this prospectus and the documents we
incorporate by reference might not occur.
Real estate investments' value fluctuates depending on conditions in the general
economy and the real estate business. These conditions may also limit our
revenues and available cash.
The factors that affect the value of our real estate and the revenues we
derive from our properties include, among other things:
o general economic climate
o local conditions such as oversupply or a reduction in demand in the
area
o the attractiveness of the properties to tenants
o tenant defaults
o zoning or other regulatory restrictions
o competition from other available real estate
o our ability to provide adequate maintenance and insurance, and
o increased operating costs, including insurance premiums and real
estate taxes.
Many real estate costs are fixed, even if income from our properties decreases.
Our financial results depend on leasing space in our real estate properties
to tenants on terms favorable to us. In addition, because substantially all of
our income comes from rentals of real property, our income and funds available
for distribution to our stockholders will decrease if a significant number of
our tenants cannot pay their rent. If a tenant does not pay its rent, we might
not be able to enforce our rights as landlord without delays and we might incur
substantial legal costs.
Our income may also be reduced if tenants are unable to pay rent or we are
unable to rent properties on favorable terms. Costs associated with real estate
investment, such as real estate taxes and maintenance costs, generally are not
reduced when circumstances cause a reduction in income from the investment.
We may be unable to sell properties when appropriate because real estate
investments are illiquid.
Real estate investments generally cannot be sold quickly and, therefore,
will tend to limit our ability to vary our property portfolio promptly in
response to changes in economic or other conditions. The inability to respond
promptly to changes in the performance of our property portfolio could adversely
affect our financial condition and ability to service debt and make
distributions to our stockholders.
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We may be unable to renew leases or find other lessees.
We are subject to the risks that, upon expiration, leases may not be
renewed, the space subject to such leases may not be relet or the terms of
renewal or reletting, including the cost of required renovations, may be less
favorable than expiring lease terms. If we were unable to promptly renew a
significant number of expiring leases or to promptly relet the space covered by
such leases, or if the rental rates upon renewal or reletting were significantly
lower than the then current rates, our cash funds from operations and ability to
make expected distributions to stockholders might be adversely affected. Leases
with respect to approximately 6.3 million, 12.4 million and 10.4 million square
feet of gross leasable area expire in the remainder of 2000, 2001 and 2002,
respectively.
We may incur unanticipated costs and liabilities due to environmental problems.
Under various federal, state and local laws, ordinances and regulations, an
owner or operator of real estate may be liable for the costs of clean-up of
certain conditions relating to the presence of hazardous or toxic materials on,
in or emanating from the property, and any related damages to natural resources.
Environmental laws often impose liability without regard to whether the owner or
operator knew of, or was responsible for, the presence of hazardous or toxic
materials. The presence of such materials, or the failure to address those
conditions properly, may adversely affect the ability to rent or sell the
property or to borrow using the property as collateral. Persons who dispose of
or arrange for the disposal or treatment of hazardous or toxic materials may
also be liable for the costs of clean-up of such materials, or for related
natural resource damages, at or from an off-site disposal or treatment facility,
whether or not the facility is owned or operated by those persons. No assurance
can be given that existing environmental assessments with respect to any of our
properties reveal all environmental liabilities, that any prior owner or
operator of any of the properties did not create any material environmental
condition not known to us or that a material environmental condition does not
otherwise exist as to any of our properties.
We might fail to qualify or remain qualified as a REIT.
First Industrial Realty Trust, Inc. intends to operate so as to qualify as
a REIT under the Internal Revenue Code of 1986. Although we believe that First
Industrial Realty Trust, Inc. is organized and will operate in a manner so as to
qualify as a REIT, qualification as a REIT involves the satisfaction of numerous
requirements, some of which must be met on a recurring basis. These requirements
are established under highly technical and complex Code provisions of which
there are only limited judicial or administrative interpretations, and involve
the determination of various factual matters and circumstances not entirely
within our control. If First Industrial Realty Trust, Inc. were to fail to
qualify as a REIT in any taxable year, First Industrial Realty Trust, Inc. would
be subject to federal income tax, including any applicable alternative minimum
tax, on First Industrial Realty Trust, Inc.'s taxable income at corporate rates.
Unless entitled to relief under certain statutory provisions, First Industrial
Realty Trust, Inc. also would be disqualified from treatment as a REIT for the
four taxable years that follow. See "Federal income tax considerations."
The REIT distribution requirements may require us to turn to external financing
sources.
First Industrial Realty Trust, Inc. could, in certain instances, have
taxable income without sufficient cash to enable First Industrial Realty Trust,
Inc. to meet the distribution requirements of the REIT provisions of the Code.
In that situation, we could be required to borrow funds or sell properties on
adverse terms in order to meet those distribution requirements. In addition,
because First Industrial Realty Trust, Inc. must distribute to its stockholders
at least 95% of our REIT taxable income each year (90% for taxable years
beginning after December 31, 2000), our ability to accumulate capital may be
limited. Thus, in connection with future acquisitions, First Industrial Realty
Trust, Inc. may be more dependent on outside sources of financing, such as debt
financing or issuances of additional capital stock, which may or may not be
available on favorable terms. Additional debt financings may substantially
increase our leverage and additional equity offerings may result in substantial
dilution of stockholders' interests. See "Federal income tax considerations."
-3-
There are restrictions on the transfer of our common stock.
To maintain First Industrial Realty Trust, Inc.'s qualification as a REIT
under the Code, no more than 50% in value of our outstanding capital stock may
be owned, actually or by attribution, by five or fewer individuals, as defined
in the Code to include certain entities, during the last half of a taxable year.
Accordingly, First Industrial Realty Trust, Inc.'s articles of incorporation
contain provisions restricting the ownership and transfer of our capital stock.
See "Restrictions on transfer of capital stock."
Debt financing and the degree of leverage could reduce our cash flow.
Where possible, we intend to continue to use leverage to increase the rate
of return on our investments and to allow us to make more investments than we
otherwise could. Our use of leverage presents an additional element of risk in
the event that the cash flow from our properties is insufficient to meet both
debt payment obligations and the distribution requirements of the REIT
provisions of the Code.
Cross-collateralization of mortgage loans could result in foreclosure on
substantially all of our properties if we are unable to service our
indebtedness.
If First Industrial, L.P. determines to obtain additional debt financing in
the future, it may do so through mortgages on some or all of its properties.
These mortgages may be on recourse, non-recourse or cross-collateralized bases.
Cross-collateralization makes all of the subject properties available to the
lender in order to satisfy our debt. Holders of indebtedness that is so secured
will have a claim against these properties and to the extent indebtedness is
cross-collateralized, lenders may seek to foreclose upon properties that are not
the primary collateral for their loan, which may, in turn, result in
acceleration of other indebtedness secured by properties. Foreclosure of
properties would result in a loss of income and asset value to First Industrial,
L.P. and First Industrial Realty Trust, Inc., making it difficult for us to meet
both debt payment obligations and the distribution requirements of the REIT
provisions of the Code.
We may have to make lump-sum payments on our existing indebtedness.
We are required to make lump-sum or "balloon" payments under the terms of
some of our indebtedness, including First Industrial, L.P.'s:
o $200 million aggregate principal amount of 7.60% Notes due 2028 (the
"2028 Notes")
o $100 million aggregate principal amount of 7.15% Notes due 2027 (the
"2027 Notes")
The holders of the 2027 Notes have the right to require First
Industrial Realty Trust, Inc. to redeem through First Industrial, L.P.
the 2027 Notes, in whole or in part, on May 15, 2002.
o $100 million aggregate principal amount of 7.50% Notes due 2017 (the
"2017 Notes")
o $100 million aggregate principal amount of 7 3/8% Notes due 2011 (the
"Trust Notes")
The trust to which the Trust Notes were issued must exercise its right
to require First Industrial Realty Trust, Inc., through First
Industrial, L.P., to redeem the Trust Notes on May 15, 2004 if the
holder of a call option with respect to the Trust Notes fails to give
written notice on or before May 1, 2004 that it intends to exercise
such option.
o $150 million aggregate principal amount of 7.60% Notes due 2007 (the
"2007 Notes")
o $150 million aggregate principal amount of 7.0% Notes due 2006 (the
"2006 Notes")
o $50 million aggregate principal amount of 6.90% Notes due 2005 (the
"2005 Notes")
-4-
o $100 million aggregate principal amount of 6 1/2% dealer remarketable
securities due April 5, 2011 (the "Drs.")
The Drs. are subject to mandatory redemption by First Industrial, L.P.
under certain circumstances on April 5, 2001.
and
o a $300 million unsecured revolving credit facility (the "Acquisition
Facility") under which First Industrial Realty Trust, Inc., through
First Industrial, L.P., may borrow to finance the acquisition of
additional properties and for other corporate purposes, including
working capital.
The Acquisition Facility provides for the repayment of principal in a
lump-sum or "balloon" payment at maturity in 2003. Under the
Acquisition Facility, First Industrial, L.P. has the right, subject to
certain conditions, to increase the aggregate commitment under the
Acquisition Facility up to $400 million.
Our ability to make required payments of principal on outstanding
indebtedness, whether at maturity or otherwise, may depend on our ability either
to refinance the applicable indebtedness or to sell properties. We have no
commitments to refinance the 2005 Notes, the 2006 Notes, the 2007 Notes, the
Trust Notes, the 2017 Notes, the 2027 Notes, the 2028 Notes, the Drs. or the
Acquisition Facility. Some of the existing debt obligations of First Industrial
Realty Trust, Inc., held through First Industrial, L.P., are secured by our
properties, and therefore such obligations will permit the lender to foreclose
on those properties in the event of a default.
There is no limitation on debt in our organizational documents.
We currently have a policy of maintaining a ratio of debt to total market
capitalization of 50% or less. We compute that percentage by calculating our
total consolidated debt as a percentage of the aggregate market value of all
outstanding shares of our common stock, assuming the exchange of all limited
partnership units of First Industrial, L.P. for common stock, plus the aggregate
stated value of all outstanding shares of preferred stock and total consolidated
debt. We also currently have a policy of maintaining a coverage ratio of at
least 2.0:1. We calculate the coverage ratio as total revenues minus property
expenses and general and administrative expenses divided by interest expense
plus capitalized interest and dividends on preferred stock.
As of June 30, 2000, our ratio of debt to our total market capitalization
was 40.9% and for the twelve months ended June 30, 2000 our coverage ratio was
2.20. The organizational documents of First Industrial Realty Trust, Inc.,
however, do not contain any limitation on the amount or percentage of
indebtedness we may incur and our Board of Directors has the power to alter the
current policy. Accordingly, we could become more highly leveraged, resulting in
an increase in debt service that could adversely affect our ability to make
expected distributions to stockholders and in an increased risk of default on
our obligations.
Rising interest rates on our Acquisition Facility could decrease our available
cash.
Our Acquisition Facility bears interest at a floating rate. Increases in
the interest rate payable on balances outstanding under the Acquisition Facility
would decrease our cash available for distribution to stockholders.
Our charter documents may hinder attempts to acquire us.
Provisions of our articles of incorporation may have the effect of
delaying, deferring or preventing a third party from making an acquisition
proposal for us and thus inhibit a change in control, thereby limiting the
opportunity for stockholders to receive a premium for their common stock. See
"Certain provisions of Maryland law and the First Industrial Realty Trust, Inc.
articles of incorporation and bylaws."
-5-
The provisions of our preferred stock may hinder attempts to acquire us.
Under our articles of incorporation, we have authority to issue up to
10,000,000 shares of preferred stock on such terms as may be authorized by our
board of directors. The following amounts were outstanding on March 31, 2000:
o 1,650,000 shares of our Series A Preferred Stock
o 40,000 shares of our Series B Preferred Stock
o 20,000 shares of our Series C Preferred Stock
o 50,000 shares of our Series D Preferred Stock, and
o 30,000 shares of our Series E Preferred Stock
The terms of the preferred stock could delay, deter or prevent a change in
control or other transaction that might involve a premium price or otherwise be
in the best interest of stockholders. The board of directors has also reserved
1,000,000 shares of our junior participating preferred stock for issuance under
a shareholder rights plan adopted by our board of directors. The terms of the
shareholder rights plan could delay, deter or prevent a change in control or
other transaction that might involve a premium price or otherwise be in the best
interest of stockholders.
Maryland law provisions may hinder attempts to acquire us.
Under the Maryland General Corporation Law, as applicable to real estate
investment trusts, specified "business combinations" between a Maryland REIT,
such as First Industrial Realty Trust, Inc., and any person who beneficially
owns 10% or more of the voting power of the corporation's shares (an "Interested
Stockholder") or, in certain circumstances, an associate or an affiliate of the
Interested Stockholder, are prohibited for five years after the most recent date
on which the Interested Stockholder becomes an Interested Stockholder. Business
combinations for the purposes of the preceding sentence are defined by the MGCL
to include specified mergers, consolidations, share exchanges and asset
transfers, some issuances and reclassifications of equity securities, the
adoption of a plan of liquidation or dissolution or the receipt of any loan
advance, guarantee, pledge or other financial assistance or tax advantage. After
the five-year period, any such business combination must be recommended by the
board of directors and approved by two super-majority stockholder votes unless,
among other conditions, the corporation's common stockholders receive a minimum
price, as defined in the MGCL, for their shares, in cash or in the same form as
previously paid by the Interested Stockholder for its shares. The provisions of
the MGCL do not apply to business combinations that are approved or exempted by
the board of directors prior to the time that the Interested Stockholder becomes
an Interested Stockholder.
First Industrial Realty Trust, Inc.'s articles of incorporation exempt from
the business combination provisions of the MGCL any business combination in
which there is no Interested Stockholder other than Jay H. Shidler, Chairman of
our Board of Directors, or any entity controlled by Mr. Shidler, unless Mr.
Shidler is an Interested Stockholder without taking into account Mr. Shidler's
ownership of shares of our common stock and the right to acquire shares of our
common stock in an aggregate amount which does not exceed the number of shares
that Mr. Shidler owned and had the right to acquire, including through the
exchange of limited partnership units of First Industrial, L.P., at the time of
the consummation of our initial public offering.
As a result, Mr. Shidler and entities controlled by him may enter into
business combinations with us that may not be in the best interest of our
stockholders. With respect to business combinations with any other persons, the
business combination provisions of the MGCL may delay, deter or prevent a change
in control of First Industrial Realty Trust, Inc. that might involve a premium
price or otherwise be in the best interest of stockholders.
-6-
The MGCL provides that "control shares" of a Maryland REIT acquired in a
control share acquisition have no voting rights, except to the extent approved
by a vote of two-thirds of the votes entitled to be cast on the matter,
excluding shares owned by the acquiror, by officers of the corporation and by
employees who are also directors of the corporation. "Control shares" are
defined as voting shares of stock or beneficial interests that entitle their
holder to one of several specified ranges of voting power in elections of
directors. If voting rights with respect to control shares have not been
approved at a meeting of stockholders, then, subject to certain conditions and
limitations, the issuer may redeem any or all of such control shares for fair
value. If voting rights for control shares are approved at a stockholders
meeting and the acquiror becomes entitled to vote a majority of the shares
entitled to vote, all other stockholders may exercise appraisal rights. First
Industrial Realty Trust, Inc.'s bylaws contain a provision exempting any and all
acquisitions of our shares of capital stock from the control share provisions of
the MGCL. There can be no assurance that this provision will not be amended or
eliminated in the future.
The composition of our board of directors could hinder a change in control.
First Industrial Realty Trust, Inc.'s directors are divided into three
classes by our articles of incorporation, with terms expiring over a three-year
period. The classified board provision could make it more difficult and
time-consuming to remove the incumbent directors and may delay, deter or prevent
a change in control of First Industrial Realty Trust, Inc. that might involve a
premium price or otherwise be in the best interest of stockholders.
Some of our officers and directors may have conflicts of interest with us
because of their equity ownership in industrial properties not owned by us.
Entities affiliated with, or controlled by, some of our officers and
directors hold equity interests in industrial properties not owned by us. Some
of these properties may compete with properties owned by us. There can be no
assurance that decisions by our officers and directors will fully represent the
interests of our stockholders rather than those individuals and their
affiliates.
Some of our officers and directors may have interests opposed to us with respect
to certain transactions because they may suffer adverse tax consequences.
Some of the officers and directors of First Industrial Realty Trust, Inc.
own limited partnership units of First Industrial, L.P., which may be exchanged
for shares of common stock. Prior to the exchange of units for common stock, the
officers and directors who own limited partnership units may suffer different
and more adverse tax consequences than holders of common stock upon the sale of
certain of our properties, the refinancing of debt associated with those
properties or in connection with a proposed tender offer or merger involving us.
Therefore, those individuals and First Industrial Realty Trust, Inc., as
partners in First Industrial, L.P., may have different objectives regarding the
appropriate terms of any such transaction.
USE OF PROCEEDS
We will not receive any proceeds from this offering.
SELLING STOCKHOLDERS
The selling stockholders are, except for one, persons who may receive, or
have received, shares of common stock in exchange for limited partnership units
of First Industrial, L.P. issued as consideration for the contribution of
certain real estate to us. The limited partnership units were issued in private
transactions exempt from registration under the Securities Act. The limited
partnership units must be held for one year before they can be acquired by us in
exchange for our common stock. One selling stockholder is an affiliate of First
Industrial Realty Trust, Inc. who is selling shares of common stock granted
under the First Industrial Realty Trust, Inc. Deferred Income Plan.
-7-
The table below provides, as of September 7, 2000, the names of each
selling stockholder and the number of shares of common stock offered by each
selling stockholder. As we are not obligated to issue common stock upon exchange
for the limited partnership units and the selling stockholders may sell all,
some or none of their shares of common stock, no estimate can be made of the
aggregate number of shares of common stock that are to be offered hereby, or the
aggregate number of shares of common stock that will be owned by each selling
stockholder upon completion of the offering to which this prospectus relates.
The number of shares in the column "Number of shares offered hereby" includes
the number of shares of common stock the selling stockholder may receive in
exchange for limited partnership units, except as noted. Amounts shown in the
"Number of shares and units owned before the offering" represent the number of
securities shown in the column "Number of shares offered hereby" plus shares of
common stock and limited partnership units owned by the selling stockholders
that are not covered by the registration statement of which this prospectus
forms a part. All of the selling stockholders are offering all of the common
stock they will own as a result of the exchange of our common stock for their
limited partnership units, except as noted.
With respect to the information presented concerning the selling
stockholders listed in the table below, we have not conducted any independent
inquiry or investigation to ascertain that information and have relied on
written questionnaires furnished to us by the selling stockholders for the
express purpose of including that information in this prospectus. Unless
otherwise indicated, none of the selling stockholders has, or within the past
three years has had, any position, office of other material relationship with us
or any of our affiliates.
The shares of common stock offered by this prospectus may be offered from
time to time by the selling stockholders named below:
Number of shares and units owned Number of shares offered
Name before the offering hereby
- ---------------------------------------------------- ----------------------------------- ------------------------
Jay H. Shidler 1,311,116 1,036(1)(2)
Michael T. Tomasz 220,749 10,186(2)
Kris Nielsen 150 150(2)
John E. De B Blockey, Trustee of John E. De B
Blockey Revocable Living Trust 19,072 360(2)
J. Stanley Mattison 79 67(2)
Eileen Millar 3,072 3,072(2)
Michael Jenkins 442 343(2)
Robert W. Holman Jr. 172,292 67(2)
James C. Reynolds 128,527 130(2)
Paul T. Lambert 39,816 67(2)
William Baloh 8,582 2,149(3)
Sam Shamie Trust Agreement dated March 16, 1978, as
restated on November 16, 1993 422,340 84,587(3)
Richard H. Zimmerman Living Trust dated October 15,
1990, as amended 58,988 11,814(3)
Keith J. Pomeroy Revocable Trust Agreement dated
December 13, 1976, as amended and restated on
June 28, 1995 161,036 32,253(3)
Enid Barden Trust of June 28, 1995 23,088 4,624(3)
Sam L. Yaker Revocable Trust Agreement dated
February 14, 1984 37,870 7,585(3)
Armenag Kalaydjian Revocable Trust Agreement dated
February 28, 1984 27,079 5,424(3)
RBZ LLC, a Michigan limited liability company 155 31(3)
KEP LLC, a Michigan limited liability company 98,626 19,753(3)
ESAA Associates Limited Partnership, a Michigan
limited partnership 24,217 4,850(3)
-8-
Number of shares and units owned Number of shares offered
Name before the offering hereby
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The Bullock Childrens Education Trust U/A/D
12/20/94 F/B/O Benjamin Dure Bullock, Henry D.
& Terri D. Bullock & Richard J. Holmstrom as
Trustees 4,570 2,670(4)
The Bullock Childrens Education Trust U/A/D
12/20/94 F/B/O Christine Laurel Bullock, Henry
D. & Terri D. Bullock & Richard J. Holmstrom as
Trustees 4,570 2,670(4)
The Henry D. & Terri D. Bullock Trust U/A/D
8/28/92, Henry D. Bullock & Terri D. Bullock as
Trustees 83,825 6,766(4)
JPG Investment 919 919(5)
The UCLA Foundation - The Anderson School 40 40(4)
Northwestern University 40 40(4)
Muskingum College 40 40(4)
Menlo Park Presbyterian Church 400 400(4)
Foundation for Advanced Christian Training (FACT)
90 90(4)
Menlo School 350 350(4)
Timothy J. Donohue 17,150 1,000(4)
Yale Law School Fund 3,000 3,000(6)
Stephen Mann 12,017 12,017(6)
Michael W. Brennan 386,719 2,873(7)
BSDK Enterprises 3,596 3,596(8)
Larry L. Miller 17,857 17,857(9)
- -------------------------------------------------------------------------------
(1) Mr. Shidler is the Chairman of the Board of Directors of First Industrial
Realty Trust, Inc.
(2) Represents shares of common stock that may be received in exchange for
limited partnership units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on January 28, 2000.
(3) Represents shares of common stock that may be received in exchange for
limited partnership units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on April 30, 1998.
(4) Represents shares of common stock that may be received in exchange for
limited partnership units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on June 30, 1994.
(5) Represents shares of common stock that may be received in exchange for
limited partnerships units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on December 4, 1997.
(6) Represents shares of common stock that may be received in exchange for
limited partnership units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on March 18, 1998.
(7) Mr. Brennan is the President, Chief Executive Officer and a Director of
First Industrial Realty Trust, Inc. Mr. Brennan may sell shares of common
stock granted under the First Industrial Realty Trust, Inc. Deferred Income
Plan.
(8) Represents shares of common stock that may be received in exchange for (i)
2,186 limited partnership units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on October 30, 1997 and (ii) 1,410 limited partnership units that were
issued as consideration for the contribution of certain real estate to
First Industrial Realty Trust, Inc. on April 15, 1998.
(9) Represents shares of common stock that may be received in exchange for
limited partnership units that were issued as consideration for the
contribution of certain real estate to First Industrial Realty Trust, Inc.
on May 4, 2000 and June 27, 2000.
PLAN OF DISTRIBUTION
We are registering the selling stockholders' common stock for sale to
provide them with freely tradable securities, but the registration of their
common stock does not necessarily mean that any of those shares will be
-9-
issued by us or offered or sold by the selling stockholders. We will not receive
any proceeds from the offering by the selling stockholders of their common
stock.
All but one of the selling stockholders may offer shares of common stock
that may be issued to them upon the exchange by First Industrial Realty Trust,
Inc. of shares of its common stock for limited partnership units of First
Industrial, L.P. The limited partnership units were previously issued to the
selling stockholders in private placements exempt from the registration
provisions of the Securities Act. First Industrial Realty Trust, Inc. will issue
up to 240,003 shares of common stock to the selling stockholders in exchange for
their limited partnership units. One selling stockholder is an affiliate of
First Industrial Realty Trust, Inc. who may sell 2,873 shares of common stock
granted under the First Industrial Realty Trust, Inc. Deferred Income Plan.
First Industrial Realty Trust, Inc. will issue one share of common stock
for each limited partnership unit acquired from the selling stockholders.
Consequently, with each exchange, First Industrial Realty Trust, Inc.'s interest
in First Industrial, L.P. will increase.
The common stock may be sold from time to time to purchasers:
o directly by the selling stockholders or
o through underwriters, broker-dealers or agents who may receive
compensation, which will not exceed amounts customary for the type of
transaction, in the form of discounts, concessions or commissions from
the selling stockholders and/or the purchasers of shares of common
stock.
The selling stockholders and any broker-dealers or agents who participate
in the distribution of the common stock may be deemed to be "underwriters." As a
result, any profits on the sale of the common stock by the selling stockholders
and any discounts, commissions or concessions received by any broker-dealers or
agents might be deemed to be underwriting discounts and commissions under the
Securities Act. If the selling stockholders were deemed to be underwriters, the
selling stockholders may be subject to certain statutory liabilities of,
including, but not limited to, Sections 11, 12 and 17 of the Securities Act and
Rule 10b-5 under the Exchange Act.
If the shares of common stock are sold through underwriters or
broker-dealers, the selling stockholders will be responsible for underwriting
discounts or commissions or agent's commissions.
The common stock offered by this prospectus may be sold in one or more
transactions at:
o fixed prices,
o prevailing market prices at the time of sale,
o varying prices determined at the time of sale, or
o negotiated prices.
These sales may be effected in transactions:
o on any national securities exchange or quotation service on which the
common stock may be listed or quoted at the time of the sale,
including the New York Stock Exchange,
o in the over-the-counter market,
o in transactions otherwise than on these exchanges or services or in
the over-the-counter market, or
o through the writing of options.
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These transactions may include block transactions or crosses. Crosses are
transactions in which the same broker acts as an agent on both sides of the
trade.
At any time a particular offer of the common stock is made, a revised
prospectus or prospectus supplement, if required, will be distributed. The
revised prospectus or prospectus supplement will include the aggregate number of
shares of common stock being offered and the terms of the offering, including
the name or names of any underwriters, dealers or agents, any discounts,
commissions, concessions and other items constituting compensation from the
selling stockholders and any discounts, commissions or concessions allowed or
reallowed or paid to dealers. The prospectus supplement and, if necessary, a
post-effective amendment to the registration statement of which this prospectus
is a part, will be filed with the Commission to reflect the disclosure of
additional information with respect to the distribution of the common stock.
Under the securities laws of certain states, the common stock may be
offered and sold in the state only through registered or licensed brokers or
dealers. In addition, in certain states the common stock may not be offered or
sold unless it has been registered or qualified for sale in the state or an
exemption from registration or qualification is available and is complied with.
There can be no assurance that any selling stockholder will sell any or all
of the common stock registered under the registration statement of which this
prospectus forms a part. In addition, any shares of common stock covered by this
prospectus that qualify for sale pursuant to Rule 144 of the Securities Act may
be sold under Rule 144 rather than using this prospectus.
The selling stockholders and any other person participating in the
distribution will be subject to the applicable provisions of the Exchange Act
and the rules and regulations under the Exchange Act. The Exchange Act rules
include, without limitation, Regulation M, which may limit the timing of
purchases and sales of any of the common stock by the selling stockholders and
any other person participating in the distribution. In addition, Regulation M of
the Exchange Act may restrict the ability of any person engaged in the
distribution of the common stock to engage in market-making activities with
respect to the particular shares of common stock being distributed for a period
of up to five business days prior to the commencement of the distribution. This
may affect the marketability of the shares of common stock and the ability of
any person or entity to engage in market-making activities with respect to the
shares of common stock.
Under various registration rights agreements for the benefit of certain
selling stockholders, we have agreed to pay all expenses of registering the
common stock offered hereby, except for underwriting discounts and commissions,
fees and disbursements of counsel, accountants or others representing any
selling stockholder and transfer taxes, if any. We have agreed to indemnify each
selling stockholder and its officers and directors and any person who controls
any selling stockholder against certain losses, claims, damages and expenses
arising under the securities laws.
DESCRIPTION OF COMMON STOCK
The following is a summary of the material terms of our common stock. You
should read our articles of incorporation and bylaws, which are incorporated by
reference to the registration statement of which this prospectus is a part.
General
Under our articles of incorporation, First Industrial Realty Trust, Inc.
has authority to issue 100 million shares of its common stock, par value $.01
per share. Under Maryland law, stockholders generally are not responsible for
the corporation's debts or obligations. At September 6, 2000 we had outstanding
38,577,196 shares of common stock.
-11-
Terms
Subject to the preferential rights of any other shares or series of stock,
including preferred stock outstanding from time to time, and to the provisions
of our articles of incorporation regarding excess stock, common stock holders
will be entitled to receive dividends on shares of common stock if, as and when
authorized and declared by our board of directors out of assets legally
available for that purpose. Subject to the preferential rights of any other
shares or series of stock, including preferred stock outstanding from time to
time, and to the provisions of our articles of incorporation regarding excess
stock, common stockholders will share ratably in the assets of First Industrial
Realty Trust, Inc. legally available for distribution to its stockholders in the
event of its liquidation, dissolution or winding up after payment of, or
adequate provision for, all known debts and liabilities of First Industrial
Realty Trust, Inc. For a discussion of excess stock, please see "Restrictions on
transfer of capital stock."
Subject to the provisions of our articles of incorporation regarding excess
stock, each outstanding share of common stock entitles the holder to one vote on
all matters submitted to a vote of stockholders, including the election of
directors, and, except as otherwise required by law or except as provided with
respect to any other class or series of stock, common stock holders will possess
the exclusive voting power. There is no cumulative voting in the election of
directors, which means that the holders of a majority of the outstanding shares
of common stock can elect all of the directors then standing for election, and
the holders of the remaining shares of common stock will not be able to elect
any directors.
Common stock holders have no conversion, sinking fund or redemption rights,
or preemptive rights to subscribe for any securities of First Industrial Realty
Trust, Inc.
Subject to the provisions of our articles of incorporation regarding excess
stock, all shares of common stock will have equal dividend, distribution,
liquidation and other rights, and will have no preference, appraisal or exchange
rights.
Under the MGCL, a corporation generally cannot dissolve, amend its articles
of incorporation, merge, sell all or substantially all of its assets, engage in
a share exchange or engage in similar transactions outside the ordinary course
of business unless approved by the affirmative vote of stockholders holding at
least two-thirds of the shares entitled to vote on the matter unless a lesser
percentage, but not less than a majority of all of the votes to be cast on the
matter, is set forth in the corporation's articles of incorporation. Our
articles of incorporation do not provide for a lesser percentage in such
situations.
Restrictions on ownership
For First Industrial Realty Trust, Inc. to qualify as a REIT under the
Code, not more than 50% in value of its outstanding capital stock may be owned,
actually or by attribution, by five or fewer individuals, as defined in the Code
to include certain entities, during the last half of a taxable year. To assist
us in meeting this requirement, we may take certain actions to limit the
beneficial ownership, directly or indirectly, by individuals of our outstanding
equity securities. See "Restrictions on transfer of capital stock."
Transfer agent
The transfer agent and registrar for the common stock is Equiserve - First
Chicago Trust Division.
Shareholder rights plan
On September 4, 1997, the board of directors of First Industrial Realty
Trust, Inc. adopted a shareholder rights plan. Under the shareholder rights
plan, one right was attached to each outstanding share of common stock at the
close of business on October 19, 1997, and one right will be attached to each
share of common stock thereafter issued. Each right entitles the holder to
purchase, under certain conditions, one one-hundredth of a share of our junior
participating preferred stock for $125.00. The rights may also, under certain
conditions, entitle the
-12-
holders to receive common stock, or common stock of an entity acquiring First
Industrial Realty Trust, Inc., or other consideration, each having a value equal
to twice the exercise price of each right ($250.00). We have designated
1,000,000 shares as junior participating preferred stock and have reserved such
shares for issuance under the shareholder rights plan. The rights are redeemable
by us at a price of $.001 per right. If not exercised or redeemed, all rights
expire on October 20, 2007. The description and terms of the rights are set
forth in a shareholder rights agreement between us and First Chicago Trust
Company of New York.
CERTAIN PROVISIONS OF MARYLAND LAW AND THE
FIRST INDUSTRIAL REALTY TRUST INC. ARTICLES OF INCORPORATION AND BYLAWS
The following summary of certain provisions of Maryland law is not complete
and is qualified by reference to Maryland law and our articles of incorporation
and bylaws, which are incorporated by reference to the registration statement of
which this prospectus is a part.
Business combinations
Under the MGCL, certain "business combinations" between a Maryland
corporation and an "Interested Stockholder" or, in certain circumstances, an
associate or an affiliate thereof, are prohibited for five years after the most
recent date on which the Interested Stockholder became an Interested
Stockholder. Business combinations for the purposes of the preceding sentence
are defined by the MGCL to include specified mergers, consolidations, share
exchanges and asset transfers, some issuances and reclassifications of equity
securities, the adoption of a plan of liquidation or dissolution or the receipt
of any loan advance, guarantee, pledge or other financial assistance or tax
advantage. After the five-year period, any such business combination must be
recommended by the board of directors of the corporation and approved by the
affirmative vote of at least
o 80% of the votes entitled to be cast by holders of outstanding voting
shares of the corporation and
o two-thirds of the votes entitled to be cast by holders of outstanding
shares of the corporation other than shares held by the Interested
Stockholder with whom the business combination is to be effected.
The super-majority vote requirements will not apply if, among other things, the
corporation's stockholders receive a minimum price (as defined in the MGCL) for
their shares and the consideration is received in cash or in the same form as
previously paid by the Interested Stockholder for its shares. These provisions
of Maryland law do not apply, however, to business combinations that are
approved or exempted by the board of directors of the corporation prior to the
time that the Interested Stockholder becomes an Interested Stockholder. Our
articles of incorporation exempt from these provisions of the MGCL any business
combination in which there is no Interested Stockholder other than Jay H.
Shidler, the Chairman of our board of directors, or any entity controlled by Mr.
Shidler unless Mr. Shidler is an Interested Stockholder without taking into
account his ownership of shares of our common stock and the right to acquire
shares of our common stock in an aggregate amount that does not exceed the
number of shares of our common stock that he owned and had the right to acquire,
including through the exchange of limited partnership units of First Industrial,
L.P., at the time of the consummation of our initial public offering.
Control share acquisitions
The MGCL provides that "control shares" of a Maryland corporation acquired
in a "control share acquisition" have no voting rights except to the extent
approved by a vote of two-thirds of the votes entitled to be cast on the matter,
excluding shares of stock owned by the acquiror or by officers or by directors
who are also employees of the corporation. "Control shares" are voting shares of
stock that, if aggregated with all other shares of
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stock previously acquired by that person, would entitle the acquiror to exercise
voting power in electing directors within one of the following ranges of voting
power:
o one-fifth or more but less than one-third,
o one-third or more but less than a majority, or
o a majority of all voting power.
Control shares do not include shares the acquiring person is then entitled to
vote as a result of having previously obtained stockholder approval. A "control
share acquisition" means the acquisition of control shares, subject to certain
exceptions.
A person who has made or proposes to make a control share acquisition may
compel the board of directors, upon satisfaction of certain conditions,
including an undertaking to pay expenses, to call a special meeting of
stockholders to be held within 50 days after receiving a demand to consider the
voting rights of the shares. If no request for a meeting is made, the
corporation may itself present the question at any stockholders meeting.
If voting rights are not approved at the meeting or if the acquiring person
does not deliver an acquiring person statement as required by the MGCL, then,
subject to certain conditions and limitations, the corporation may redeem any or
all of the control shares, except those for which voting rights have previously
been approved. The corporation's redemption of the control shares will be for
fair value determined, without regard to voting rights, as of the date of the
last control share acquisition or of any meeting of stockholders at which the
voting rights of the control shares are considered and not approved. If voting
rights for control shares are approved at a stockholders meeting and the
acquiror becomes entitled to vote a majority of the shares entitled to vote, all
other stockholders may exercise appraisal rights. The fair value of the shares
as determined for purposes of the appraisal rights may not be less than the
highest price per share paid in the control share acquisition. Certain
limitations and restrictions otherwise applicable to the exercise of dissenters'
rights do not apply in the context of a control share acquisition.
The control share acquisition statute does not apply to
o shares acquired in a merger, consolidation or share exchange if the
corporation is a party to the transaction, or
o acquisitions approved or exempted by our articles of incorporation or
bylaws.
Our bylaws contain a provision exempting any and all acquisitions of our
shares of capital stock from the control share provisions of the MGCL. There can
be no assurance that this bylaw provision will not be amended or eliminated in
the future.
Amendment of articles of incorporation
Our articles of incorporation, including the provisions on classification
of the board of directors discussed below, may be amended only by the
affirmative vote of the holders of not less than two-thirds of all of the votes
entitled to be cast on the matter.
Meetings of stockholders
Our bylaws provide for annual meetings of stockholders to be held on the
third Wednesday in April or on any other day as may be established from time to
time by our board of directors. Special meetings of stockholders may be called
by
o our Chairman of the board or our President
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o a majority of the board of directors or
o stockholders holding at least 25% of our outstanding capital stock
entitled to vote at the meeting.
Our bylaws provide that any stockholder of record wishing to nominate a
director or have a stockholder proposal considered at an annual meeting must
provide written notice and certain supporting documentation to us relating to
the nomination or proposal not less than 75 days nor more than 180 days prior to
the anniversary date of the prior year's annual meeting or special meeting in
lieu thereof (the "Anniversary Date"). In the event that the annual meeting is
called for a date more than seven calendar days before the Anniversary Date,
stockholders generally must provide written notice within 20 calendar days after
the date on which notice of the meeting is mailed to stockholders or the date of
the meeting is publicly disclosed.
The purpose of requiring stockholders to give us advance notice of
nominations and other business is to afford our board of directors a meaningful
opportunity to consider the qualifications of the proposed nominees or the
advisability of the other proposed business and, to the extent deemed necessary
or desirable by our board of directors, to inform stockholders and make
recommendations about the qualifications or business, as well as to provide a
more orderly procedure for conducting meetings of stockholders. Although our
bylaws do not give our board of directors any power to disapprove stockholder
nominations for the election of directors or proposals for action, they may have
the effect of precluding a contest for the election of directors or the
consideration of stockholder proposals if the proper procedures are not followed
and of discouraging or deterring a third party from conducting a solicitation of
proxies to elect its own slate of directors or to approve its own proposal. Our
bylaws may have those effects without regard to whether consideration of the
nominees or proposal might be harmful or beneficial to us and our stockholders.
Classification of the board of directors
Our bylaws provide that the number of our directors may be established by
the board of directors but may not be fewer than the minimum number required by
Maryland law nor more than twelve. Any vacancy will be filled, at any regular
meeting or at any special meeting called for that purpose, by a majority of the
remaining directors, except that a vacancy resulting from an increase in the
number of directors will be filled by a majority of the entire board of
directors. Under the terms of our articles of incorporation, our directors are
divided into three classes. One class holds office for a term expiring at the
annual meeting of stockholders to be held in 2000, and the other two classes
hold office for terms expiring at the annual meetings of stockholders to be held
in 2001 and 2002, respectively. As the term of each class expires, directors in
that class will be elected for a term of three years and until their successors
are duly elected and qualified. We believe that classification of our board of
directors will help to assure the continuity and stability of our business
strategies and policies as determined by our board of directors.
The classified board provision could have the effect of making the removal
of incumbent directors more time consuming and difficult, which could discourage
a third party from making a tender offer or otherwise attempting to obtain
control of us, even though such an attempt might be beneficial to us and our
stockholders. At least two annual meetings of stockholders, instead of one, will
generally be required to effect a change in a majority of our board of
directors. Thus, the classified board provision could increase the likelihood
that incumbent directors will retain their positions. Holders of shares of
common stock will have no right to cumulative voting for the election of
directors. Consequently, at each annual meeting of stockholders, the holders of
a majority of the shares of common stock will be able to elect all of the
successors of the class of directors whose term expires at that meeting.
RESTRICTIONS ON TRANSFERS OF CAPITAL STOCK
For First Industrial Realty Trust, Inc. to qualify as a REIT under the
Code, among other things, not more than 50% in value of its outstanding capital
stock may be owned, actually or by attribution, by five or fewer indi-
-15-
viduals (as defined in the Code to include certain entities) during the last
half of a taxable year. Our capital stock must also be beneficially owned by 100
or more persons during at least 335 days of a taxable year of 12 months or
during a proportionate part of a shorter tax year. See "Certain federal income
tax considerations." To ensure that we remain a qualified REIT, our articles of
incorporation, subject to certain exceptions, provide that no holder may own, or
be deemed to own by virtue of the attribution provisions of the Code, more than
an aggregate of 9.9% in value of our capital stock. Any transfer of capital
stock or any security convertible into capital stock that would create a direct
or indirect ownership of capital stock in excess of the ownership limit or that
would result in our disqualification as a REIT, including any transfer that
results in the capital stock being owned by fewer than 100 persons or results in
us being "closely held" within the meaning of Section 856(h) of the Code, shall
be null and void, and the intended transferee will acquire no rights to the
capital stock.
Capital stock owned, or deemed to be owned, or transferred to a stockholder
in excess of the ownership limit will automatically be exchanged for shares of
"excess stock", as defined in our articles of incorporation, that will be
transferred, by operation of law, to us as trustee of a trust for the exclusive
benefit of the transferees to whom such capital stock may be ultimately
transferred without violating the ownership limit. While the excess stock is
held in trust, it will not be entitled to vote, it will not be considered for
purposes of any stockholder vote or the determination of a quorum for such vote,
and it will not be entitled to participate in the accumulation or payment of
dividends or other distributions. A transferee of excess stock may, at any time
such excess stock is held by us in trust, designate as beneficiary of the
transferee stockholder's interest in the trust representing the excess stock any
individual whose ownership of the capital stock exchanged into such excess stock
would be permitted under the ownership limit, and may transfer that interest to
the beneficiary at a price not in excess of the price paid by the original
transferee-stockholder for the capital stock that was exchanged into excess
stock. Immediately upon the transfer to the permitted beneficiary, the excess
stock will automatically be exchanged for capital stock of the class from which
it was converted.
In addition, we will have the right, for a period of 90 days during the
time any excess stock is held by us in trust, and, with respect to excess stock
resulting from the attempted transfer of our preferred stock, at any time when
any outstanding shares of preferred stock of such series are being redeemed, to
purchase all or any portion of the excess stock from the original
transferee-stockholder at the lesser of the price paid for the capital stock by
the original transferee-stockholder and the market price, as determined in the
manner set forth in our articles of incorporation, of the capital stock on the
date we exercise our option to purchase or, in the case of a purchase of excess
stock attributed to preferred stock which has been called for redemption, at its
stated value, plus all accumulated and unpaid dividends to the date of
redemption. The 90-day period begins on the date of the violative transfer if
the original transferee-stockholder gives notice to us of the transfer or, if no
such notice is given, the date the board of directors determines that a
violative transfer has been made.
FEDERAL INCOME TAX CONSIDERATIONS
This section is a summary of the material federal income tax matters of
general application pertaining to REITs under the Code. The discussion is based
on current law and does not purport to deal with all aspects of federal income
taxation that may be relevant to investors subject to special treatment under
the federal income tax laws, such as tax-exempt investors, dealers in securities
or foreign persons. The provisions of the Code pertaining to REITs are highly
technical and complex and sometimes involve mixed questions of fact and law. In
addition, this section does not discuss foreign, state or local taxation. We
have received an opinion from Cahill Gordon & Reindel as to the conclusions of
law expressed in this summary. Prospective investors should consult their own
tax advisors regarding the federal, state, local, foreign and other tax
consequences specific to them of holding and disposing of the common stock.
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Taxation of First Industrial Realty Trust, Inc.
In the opinion of Cahill Gordon & Reindel, commencing with our taxable year
ended December 31, 1994:
o we have been organized in conformity with the requirements for
qualification as a REIT under the Code,
o our method of operation has enabled us to meet the requirements for
qualification as a REIT under the Code, and
o provided that we continue to satisfy the various requirements
applicable under the Code to REITs, as described herein, we will
continue to so qualify.
Cahill Gordon & Reindel's opinion is based on various assumptions and is
conditioned upon certain representations made by us as to factual matters with
respect to us and certain partnerships and limited liability companies through
which we hold substantially all of our assets. Moreover, our qualification and
taxation as a REIT depends upon our ability to meet, as a matter of fact,
through actual annual operating results, distribution levels, diversity of stock
ownership and various other qualification tests imposed under the Code discussed
below, the results of which will not be reviewed by Cahill Gordon & Reindel. No
assurance can be given that the actual results of our operations for any
particular taxable year will satisfy those requirements.
To qualify as a REIT under the Code for a taxable year, we must meet
certain organizational and operational requirements, which generally require us
to be a passive investor in real estate and to avoid excessive concentration of
ownership of our capital stock. Generally, at least 75% of the value of our
total assets at the end of each calendar quarter must consist of real estate
assets, cash or governmental securities. We may not own securities possessing
10% or more of the voting power of the outstanding voting securities of any
corporation or, for taxable years beginning after December 31, 2000, 10% or more
of the value of the outstanding securities of any corporation, and the value of
any one issuer's securities may not exceed 5% of the value of our gross assets.
Shares of qualified REITs, qualified temporary investments and shares of certain
wholly owned subsidiary corporations are exempt from these prohibitions. We hold
assets through certain wholly owned subsidiary corporations and hold preferred
stock interests in certain corporations. In the opinion of Cahill Gordon &
Reindel, based on certain factual representations, these holdings do not violate
the prohibition on ownership of voting securities.
Under recent legislation, for tax years beginning after December 31, 2000,
the 10% and 5% limitations described above will not apply to the ownership of
securities of a "taxable REIT subsidiary." This legislation may permit a REIT to
own up to 100% of the securities of a taxable REIT subsidiary subject only to
the limitations that the aggregate value of the securities of all taxable REIT
subsidiaries owned by the REIT does not exceed 20% of the value of the assets of
the REIT, and the aggregate value of all securities owned by the REIT (including
the securities of all taxable REIT subsidiaries, but excluding government
securities) does not exceed 25% of the value of the assets of the REIT. A
taxable REIT subsidiary generally is any corporation (other than another REIT
and corporations involved in certain lodging, healthcare and franchising
activities) owned by a REIT with respect to which the REIT and such corporation
jointly elect that such corporation shall be treated as a taxable REIT
subsidiary.
For each taxable year, at least 75% of a REIT's gross income must be
derived from specified real estate sources and 95% must be derived from such
real estate sources plus certain other permitted sources. Real estate income for
purposes of these requirements includes
o gain from the sale of real property not held primarily for sale to
customers in the ordinary course of business
o dividends on REIT shares
-17-
o interest on loans secured by mortgages on real property
o certain rents from real property and
o certain income from foreclosure property.
For rents to qualify, they may not be based on the income or profits of any
person, except that they may be based on a percentage or percentages of gross
income or receipts. Also, subject to certain limited exceptions, the REIT may
not manage the property or furnish services to tenants except through an
independent contractor which is paid an arm's-length fee and from which the REIT
derives no income. However, a REIT may render a de minimis amount of otherwise
impermissible services to tenants, or in connection with the management of
property, and treat amounts received with respect to such property as rents from
real property. In addition, for taxable years beginning after December 31, 2000,
a taxable REIT subsidiary may provide certain services to tenants of the REIT,
which services could not otherwise be provided by the REIT or the REIT's other
subsidiaries.
Substantially all of our assets are held through certain partnerships. In
general, in the case of a REIT that is a partner in a partnership, applicable
regulations treat the REIT as holding directly its proportionate share of the
assets of the partnership and as being entitled to the income of the partnership
attributable to such share.
We must satisfy certain ownership restrictions that limit the concentration
of ownership of our capital stock by a few individuals and the ownership by us
of our tenants. Our outstanding capital stock must be held by at least 100
stockholders. No more than 50% in value of our outstanding capital stock,
including in some circumstances capital stock into which outstanding securities
might be converted, may be owned actually or constructively by five or fewer
individuals or certain other entities at any time during the last half of our
taxable year. Accordingly, our articles of incorporation contain certain
restrictions regarding the transfer of our common stock, preferred stock and any
other outstanding securities convertible into common stock when necessary to
maintain our qualification as a REIT under the Code. However, because the Code
imposes broad attribution rules in determining constructive ownership, no
assurance can be given that the restrictions contained in our articles of
incorporation will be effective in maintaining our REIT status. See
"Restrictions on transfers of capital stock."
So long as we qualify for taxation as a REIT, distribute at least 95% of
our REIT taxable income (90% for tax years beginning after December 31, 2000),
computed without regard to net capital gain or the dividends paid deduction, for
our taxable year to our stockholders annually and satisfy certain other
distribution requirements, we will not be subject to federal income tax on that
portion of such income distributed to stockholders. We will be taxed at regular
corporate rates on all income not distributed to stockholders. Our policy is to
distribute at least 95% of our taxable income (90% for tax years beginning after
December 31, 2000). We may elect to pass through to our shareholders on a pro
rata basis any taxes paid by us on our undistributed net capital gain income for
the relevant tax year. REITs also may incur taxes for certain other activities
or to the extent distributions do not satisfy certain other requirements.
Our failure to qualify during any taxable year as a REIT could, unless
certain relief provisions were available, have a material adverse effect upon
our stockholders. If disqualified for taxation as a REIT for a taxable year, we
also would be disqualified for taxation as a REIT for the next four taxable
years, unless the failure were considered to be due to reasonable cause and not
willful neglect. We would be subject to federal income tax at corporate rates on
all of our taxable income and would not be able to deduct any dividends paid,
which could result in a discontinuation of or substantial reduction in dividends
to stockholders. Dividends also would be subject to the regular tax rules
applicable to dividends received by stockholders of corporations. Should the
failure to qualify as a REIT be determined to have occurred retroactively in one
of our earlier tax years, the imposition of a substantial federal income tax
liability on us attributable to any nonqualifying tax years may adversely affect
our ability to pay dividends. In the event that we fail to meet certain income
tests applicable to REITs, we may, generally, nonetheless retain our
qualification as a REIT if we pay a 100% tax on the amount by which we failed to
meet the relevant income test so long as such failure was considered to be due
to reasonable cause and not willful neglect. Any such taxes would adversely
affect our ability to pay dividends and distributions.
-18-
EXPERTS
The consolidated financial statements incorporated in this prospectus by
reference to the Annual Report on Form 10-K for the year ended December 31,
1999, have been so incorporated in reliance on the report of
PricewaterhouseCoopers LLP, independent accountants, given on the authority of
said firm as experts in auditing and accounting.
LEGAL MATTERS
Certain legal matters will be passed upon for us by Cahill Gordon &
Reindel, New York, New York. Cahill Gordon & Reindel will rely as to all matters
of Maryland law on the opinion of McGuireWoods LLP, Baltimore, Maryland.
WHERE YOU CAN FIND MORE INFORMATION
First Industrial Realty Trust, Inc. is subject to the informational
requirements of the Securities Exchange Act of 1934 and files reports, proxy
statements and other information with the Securities and Exchange Commission.
You may read and copy any of our reports, proxy statements and other information
at, and obtain copies upon payment of prescribed fees from, the Public Reference
Section of the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549.
Those documents are also available for inspection and copying at the regional
offices of the Commission located at 7 World Trade Center, New York, New York
10048 and at Northwestern Atrium Center, 500 West Madison Street, Chicago,
Illinois 60661-2511. In addition, the Commission maintains a Web site that
contains reports, proxy and information statements and other information
regarding registrants that file electronically with the Commission at
http://www.sec.gov. Our common stock is listed on the New York Stock Exchange
and our Commission filings can also be inspected and copied at the offices of
the NYSE at 20 Broad Street, New York, New York 10005.
This prospectus is a part of a registration statement we filed with the
Commission. As permitted by the Commission, this prospectus does not contain all
the information that you can find in the registration statement or the exhibits
to the registration statement.
We "incorporate by reference" information we file with the Commission,
which means that we can disclose important information to you by referring you
to those documents. The information incorporated by reference is an important
part of this prospectus and more recent information automatically updates and
supersedes more dated information contained or incorporated by reference in this
prospectus. Our Commission file number is 1-13102.
We have previously filed the following documents with the Commission and
incorporate them by reference into this prospectus:
1) Annual Report on Form 10-K for year ended December 31, 1999, filed
March 15, 2000;
2) Quarterly Report on Form 10-Q for the quarter ended March 31, 2000,
filed May 15, 2000;
3) Quarterly Report on Form 10-Q for the quarter ended June 30, 2000,
filed August 10, 2000; and
4) The description of the common stock included in First Industrial
Realty Trust, Inc.'s registration statement on Form 8-A dated June 23,
1994 and the description of the associated preferred share purchase
rights included in the Form 8-A filed September 24, 1997.
All documents filed by First Industrial Realty Trust, Inc. under Section
13(a), 13(c), 14, or 15(d) of the Exchange Act subsequent to the date of this
prospectus and prior to the termination of this offering shall be
-19-
deemed to be incorporated by reference in this prospectus and made a part hereof
from the date of the filing of such documents.
We will provide without charge to each person, including any beneficial
owner, to whom this prospectus is delivered, upon written or oral request, a
copy of these filings or portions of these filings by writing to or calling us
at First Industrial Realty Trust, Inc., Attention: Investor Relations, 311 S.
Wacker Drive, Suite 4000, Chicago, Illinois 60606, telephone (312) 344-4300. The
copies of filings will not include exhibits unless those exhibits are
specifically incorporated by reference into the filing.
-20-
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth the estimated expenses in connection with
the issuance and distribution of the securities registered hereby, which will be
borne by First Industrial Realty Trust, Inc. (the "Company"):
Securities and Exchange Commission registration fee......... $ 1,850
NYSE fee.................................................... 875
Legal fees and expenses..................................... 62,000
Accounting fees and expenses................................ 5,000
------
Total....................................................... $69,725
======
Item 15. Indemnification of Directors and Officers.
The Company's Articles of Incorporation and Bylaws provide certain
limitations on the liability of the Company's directors and officers for
monetary damages to the Company. The Articles of Incorporation and Bylaws
obligate the Company to indemnify its directors and officers, and permit the
Company to indemnify its employees and other agents, against certain liabilities
incurred in connection with their service in such capacities. These provisions
could reduce the legal remedies available to the Company and its stockholders
against these individuals. The provisions of Maryland law provide for the
indemnification of officers and directors of a company under certain
circumstances.
Item 16. Exhibits.
Exhibit
Number Description
4.2 Amended and Restated Articles of Incorporation of the Company
(incorporated by reference to Exhibit 3.1 of the Form 10-Q of the
Company for the fiscal quarter ended June 30, 1996, File No. 1-13102).
4.3 Amended and Restated Bylaws of the Company, dated September 4, 1997
(incorporated by reference to Exhibit 1 of the Company's Form 8-K
dated September 4, 1997 as filed on September 29, 1997, File No.
1-13102).
4.4 Rights Agreement, dated as of September 16, 1997, between the Company
and First Chicago Trust Company of New York, as Rights Agent
(incorporated by reference to Exhibit 99.1 of Form 8-A12B as filed on
September 24, 1997, Registration No. 333-29879, File No. 1-13102).
5* Opinion of Cahill Gordon & Reindel, counsel to the Company, as to the
legality of the securities being registered, together with the opinion
of McGuireWoods LLP.
8* Opinion of Cahill Gordon & Reindel, counsel to the Company, as to
certain tax matters.
23.1* Consent of PricewaterhouseCoopers LLP.
II-1
23.2* Consent of Cahill Gordon & Reindel (included in Exhibit 5 and Exhibit
8).
23.3* Consent of McGuireWoods LLP (included in Exhibit 5).
24** Powers of Attorney.
- -----------------------
* Filed herewith.
** Previously filed.
II-2
Item 17. Undertakings.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) under the
Securities Act of 1933, if, in the aggregate, the changes in volume
and price represent no more than a 20% change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement; and
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) herein do not
apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed with
or furnished to the Commission by the undersigned registrant pursuant to
Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof; and
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(b) The registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of
an employee benefit plan's annual report pursuant to Section 15(d) of
the Securities Exchange Act of 1934) that is incorporated by reference
in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the provisions
described under Item 15 above, or otherwise, the registrant has been
advised that in the opinion
II-3
of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act of 1933 and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer, or
controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Securities Act of 1933
and will be governed by the final adjudication of such issue.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Amendment No. 1 to
the registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Chicago, State of Illinois, on
September 7, 2000.
FIRST INDUSTRIAL REALTY TRUST, INC.
By: /s/ Michael J. Havala
----------------------------------------
Name: Michael J. Havala
Title: Chief Financial Officer
II-5
Pursuant to the requirements of the Securities Act of 1933, this Amendment
No. 1 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated:
Signature Title Date
--------- ----- ----
* President, Chief September 7, 2000
- -------------------------------------------- Executive Officer and
Michael W. Brennan Director (Principal
Executive
Officer)
/s/ Michael J. Havala Chief Financial Officer September 7, 2000
- ------------------------------------ (Principal Financial
Michael J. Havala and Accounting
Officer)
* Director of Strategic September 7, 2000
- ------------------------------------ Planning and Director
Michael G. Damone
* Director September 7, 2000
- ------------------------------------
John L. Lesher
* Director September 7, 2000
- ------------------------------------
Kevin W. Lynch
* Director September 7, 2000
- ------------------------------------
John E. Rau
* Chairman of the Board of September 7, 2000
- ------------------------------------ Directors
Jay H. Shidler
* Director September 7, 2000
- ------------------------------------
Robert J. Slater
* Director September 7, 2000
- ------------------------------------
W. Edwin Tyler
* Director September 7, 2000
- ------------------------------------
J. Steven Wilson
*By: /s/ Michael J. Havala
-------------------------------
Michael J. Havala
Attorney-in-Fact
II-6
EXHIBIT INDEX
Exhibit
Number Description
4.2 Amended and Restated Articles of Incorporation of the Company
(incorporated by reference to Exhibit 3.1 of the Form 10-Q of the
Company for the fiscal quarter ended June 30, 1996, File No. 1-13102).
4.3 Amended and Restated Bylaws of the Company, dated September 4, 1997
(incorporated by reference to Exhibit 1 of the Company's Form 8-K
dated September 4, 1997 as filed on September 29, 1997, File No.
1-13102).
4.4 Rights Agreement, dated as of September 16, 1997, between the Company
and First Chicago Trust Company of New York, as Rights Agent
(incorporated by reference to Exhibit 99.1 of Form 8-A12B as filed on
September 24, 1997, File No. 1-13102).
5* Opinion of Cahill Gordon & Reindel, counsel to the Company, as to the
legality of the securities being registered, together with the opinion
of McGuireWoods LLP.
8* Opinion of Cahill Gordon & Reindel, counsel to the Company, as to
certain tax matters.
23.1* Consent of PricewaterhouseCoopers LLP.
23.2* Consent of Cahill Gordon & Reindel (included in Exhibit 5 and Exhibit
8).
23.3* Consent of McGuireWoods LLP (included in Exhibit 5).
24** Powers of Attorney.
- -------------------------------
* Filed herewith.
** Previously filed.
Exhibit 5
[LETTERHEAD OF CAHILL GORDON & REINDEL]
September 7, 2000
(212) 701-3000
First Industrial Realty Trust, Inc.
311 S. Wacker Drive
Suite 4000
Chicago, Illinois 60606
Ladies and Gentlemen:
This opinion is being rendered in connection with the registration
statement on Form S-3 (Registration No. 333-38850) (the "Registration
Statement") filed by First Industrial Realty Trust, Inc., a Maryland corporation
(the "Company"), with the Securities and Exchange Commission (the "Commission")
for registration under the Securities Act of 1933, as amended (the "Securities
Act"), of (i) 240,003 shares (the "Exchange Shares") of common stock of the
Company, par value $.01 per share (the "Common Stock"), that may be issued in
exchange for units of partnership interest in First Industrial, L.P., a Delaware
limited partnership, and (ii) 2,873 shares of common stock that have been issued
to an affiliate of the Company under the Company's Deferred Income Plan (the
"DIP Shares").
In connection therewith, we have examined, among other things, originals or
copies, certified or otherwise identified to our satisfaction, of the Charter
and Bylaws of the Company, each as amended to date, a copy of the minutes of a
meeting of the Board of Directors held on March 9, 2000 (the "Authorizing
Resolutions") containing resolutions of the Board of Directors of the Company
pertaining to the filing of the Registration Statement, the issuance of the
Exchange Shares, the DIP Shares and other matters, and such other documents as
we have deemed necessary or appropriate for the purpose of rendering this
opinion.
In our examination of documents, instruments and other papers, we have
assumed the genuineness of all signatures on original and certified documents
and the conformity to original and certified documents of all copies submitted
to us as conformed photostatic or other copies. As to matters of fact, we have
relied upon representations of officers of the Company.
Based upon the foregoing examination, information supplied and assumptions,
it is our opinion that:
1. The Exchange Shares are duly authorized under the Charter and, when
issued as described in the Registration Statement or a prospectus supplement
relating thereto and in accordance with the Authorizing Resolutions, and upon
receipt by the Company of the consideration provided for in the Authorizing
Resolutions, will be legally issued, fully paid and nonassessable.
-2-
2. The DIP Shares issued in accordance with the Registration Statement, the
terms of the Company's Deferred Income Plan and the Authorizing Resolutions are
duly authorized, legally issued, fully paid and nonassessable.
We are attorneys admitted to practice in the State of New York. We express
no opinion concerning the laws of any jurisdiction other than the laws of the
United States of America and the State of New York. With respect to matters of
Maryland law, we have relied, without independent investigation, upon the
opinion of McGuireWoods LLP, a copy of which is attached hereto.
We hereby consent to the reference to our firm in the Registration
Statement under the caption "Legal Matters," and to the inclusion of this
opinion as an exhibit to the Registration Statement. Our consent to such
reference does not constitute a consent under Section 7 of the Securities Act as
in consenting to such reference we have not certified any part of the
Registration Statement and do not otherwise come within the categories of
persons whose consent is required under Section 7 or under the rules and
regulations of the Commission thereunder.
Very truly yours,
/s/ CAHILL GORDON & REINDEL
[LETTERHEAD OF McGUIREWOODS LLP]
September 7, 2000
First Industrial Realty Trust, Inc.
311 S. Wacker Drive, Suite 4000
Chicago, Illinois 60606
Ladies and Gentlemen:
This opinion is furnished in our capacity as special Maryland counsel for
First Industrial Realty Trust, Inc., a Maryland corporation (the "Company"), in
connection with the filing by the Company with the Securities and Exchange
Commission of a Registration Statement (No. 333-38850) on Form S-3 (which,
together with the Prospectus relating thereto, shall hereinafter be referred to
collectively as the "Registration Statement") pursuant to the Securities Act of
1933, as amended (the "Securities Act"), relating to (i) the offer and sale from
time to time of up to 240,003 shares (the "Exchange Shares") of common stock of
the Company, par value $.01 per share (the "Common Stock"), which may be issued
in exchange for units of partnership interest (the "Units") in First Industrial,
L.P., a Delaware limited partnership (the "Operating Partnership"), conveyed to
holders of Units in transactions involving acquisitions by the Operating
Partnership of real property or entities holding interests in real property; and
(ii) 2,873 shares of common stock issued to an affiliate of the Company under
the Company's Deferred Income Plan (the "DIP Shares").
In connection therewith, we have examined, among other things, originals or
copies, certified or otherwise identified to our satisfaction, of the Charter
and Bylaws of the Company, each as amended to date, a copy of the minutes of a
meeting of the Board of Directors held on March 9, 2000 (the "Authorizing
Resolutions") containing resolutions of the Board of Directors of the Company
pertaining to the filing of the Registration Statement, the issuance of the
Exchange Shares and DIP Shares and other matters, and such other documents as we
have deemed necessary or appropriate for the purpose of rendering this opinion.
In conducting our examination, we have assumed the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and
the conformity to originals of all documents submitted to us as copies. As to
matters of fact which have not been independently established, we have relied
upon representations of officers of the Company.
We are attorneys admitted to practice in the State of Maryland. We express
no opinion concerning the laws of any jurisdictions other than the laws of the
United States of America and the State of Maryland.
Based upon the foregoing, we are of the opinion that (i) the Exchange
Shares are duly authorized under the Charter and, when issued as described in
the Registration Statement or a supplement relating thereto and in accordance
with the Authorizing Resolutions, and upon receipt by the Company of the
consideration provided for in the Authorizing Resolutions, will be legally
issued, fully paid and nonassessable; and (ii) the DIP Shares issued in
accordance with the Registration Statement, the terms of the Company's Deferred
Income Plan and the Authorizing Resolutions are duly authorized, legally issued,
fully paid and nonassessable.
The foregoing assumes that all requisite steps will be taken to comply with
the requirements of the Securities Act and applicable requirements of state laws
regulating the offer and sale of securities.
-2-
This opinion may be relied upon by Messrs. Cahill Gordon & Reindel with
respect to that firm's opinion to be filed as an exhibit to the Registration
Statement. In addition, we hereby consent to the filing of this opinion as an
exhibit to the Registration Statement and to the reference to our firm under the
caption "Legal Matters" in the Prospectus. Our consent to such reference does
not constitute a consent under Section 7 of the Securities Act and in consenting
to such reference we have not certified any part of the Registration Statement
and do not otherwise come within the categories of persons whose consent is
required under Section 7 or under the rules and regulations of the Securities
and Exchange Commission thereunder.
Very truly yours,
/S/ McGUIREWOODS LLP
Exhibit 8
[LETTERHEAD OF CAHILL GORDON & REINDEL]
September 7, 2000
(212) 701-3000
First Industrial Realty Trust, Inc.
311 South Wacker Drive, Suite 4000
Chicago, Illinois 60606
Ladies and Gentlemen:
We have acted as tax counsel to First Industrial Realty Trust, Inc. (the
"Company") in connection with the Form S-3 Registration Statement filed by the
Company with the Securities and Exchange Commission on June 8, 2000, as amended
on September 7, 2000, including the documents incorporated by reference therein,
and the prospectus included therein (the "Registration Statement").(*) We have
been asked to provide our opinion as to certain federal income tax matters
arising under the Internal Revenue Code of 1986, as amended (the "Code"),
relating to the Company's qualification for taxation as a real estate investment
trust (a "REIT") under the Code.
The opinions set forth in this letter are based on relevant provisions of
the Code, Treasury Regulations thereunder and interpretations of the foregoing
as expressed in court decisions and administrative determinations as of the date
hereof. These provisions and interpretations are subject to changes (possibly on
a retroactive basis) that might result in modifications of our opinions.
For purposes of rendering the opinions contained in this letter, we have
reviewed the Registration Statement and such other documents, law and facts as
we have deemed necessary. In our review, we have assumed the genuineness of all
signatures; the proper execution of all documents; the authenticity of all
documents submitted to us as originals; the conformity to originals of all
documents submitted to us as copies; and the authenticity of the originals of
any copies.
These opinions also are premised on certain written representations made by
the Company in a certificate dated as of the date hereof (the "Certificate").
For purposes of our opinions, we have not made an independent investigation of
the representations contained in the Certificate, and consequently we have
relied on the rep-
- ----------
* Capitalized terms used in this letter that are not otherwise defined herein
have the meanings ascribed to them in the Registration Statement.
-2-
resentations therein that the information contained in the Certificate or
otherwise furnished to us accurately describes all material facts relevant to
our opinions.
Based upon and subject to the foregoing:
(i) We are of the opinion that, commencing with the Company's taxable
year ended on December 31, 1994, the Company has been organized in
conformity with the requirements for qualification as a REIT under the Code
and the Company's method of operation, as described in the Registration
Statement and as set forth in the Certificate, has enabled it to meet the
requirements for qualification as a REIT under the Code and, provided that
the Company continues to satisfy the applicable asset composition, source
of income, shareholder diversification, distribution, recordkeeping and
other requirements of the Code necessary to qualify as a REIT, it will
continue to so qualify; and
(ii) We hereby confirm the legal conclusions stated as opinions in the
Registration Statement under the heading "Federal Income Tax
Considerations" (the "Tax Section").
We express no opinion other than the opinions expressly set forth herein
and in the Tax Section (the "Opinions"). The Opinions are not binding on the
Internal Revenue Service (the "IRS") and the IRS may disagree with the Opinions.
Although we believe that the Opinions would be sustained if challenged, there
can be no assurance that this will be the case. The Opinions are based upon the
law as it currently exists. Consequently, future changes in the law may cause
the federal income tax treatment of the matters referred to herein and in the
Tax Section to be materially and adversely different from that described above
and in the Tax Section (possibly on a retroactive basis). In addition, any
variation in the facts from those set forth in the Registration Statement or the
representations contained in the Certificate or otherwise provided to us may
affect the conclusions stated in the Opinions. Moreover, the Company's
qualification and taxation as a REIT depend upon the Company's ability to meet,
through actual annual operating results, distribution levels, diversity of stock
ownership and various other qualification tests imposed under the Code, none of
which will be reviewed by us. Accordingly, no assurance can be given that the
actual results of the Company's operations for any taxable year will satisfy the
requirements for the Company to maintain its qualification as a REIT.
Very truly yours,
/s/ CAHILL GORDON & REINDEL
Exhibit 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Amendment No. 1
to the Registration Statement on Form S-3 of our report dated February 14, 2000
relating to the consolidated financial statements which appear in First
Industrial Realty Trust, Inc.'s Annual Report on Form 10-K for the year ended
December 31, 1999. We also consent to the incorporation by reference of our
report dated February 14, 2000 relating to the financial statement schedule,
which also appears in the Annual Report on Form 10-K. We also consent to the
reference to us under the heading "Experts" in such Amendment No. 1 to the
Registration Statement.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
September 7, 2000