INVESTORS
Approaching three decades as a public company focused on top U.S. markets
Press Release
First Industrial Realty Trust Reports Fourth Quarter And Full Year 2007 Results
18% Growth In FFO Per Share For Fourth Quarter And 12% For Full Year 2007
- 5.7% Increase In Same Property Net Operating Income In Fourth Quarter
- Occupancy Rises To 95.1%; Rental Rates Up 6.2%
- 24% Net Economic Gain Margin On Properties Harvested During The Quarter
- Added $1.9 Billion In Joint Venture Capital Capacity Since Beginning Of 2007
- Developable Land Now Totals More Than 4,300 Acres; Buildable To 68 Million S.F.
- Repurchased $40 Million Of Common Shares In The Fourth Quarter; $69 Million For Full Year 2007
CHICAGO, Feb. 20 /PRNewswire-FirstCall/ -- First Industrial Realty Trust, Inc. (NYSE: FR), a leading provider of industrial real estate supply chain solutions, today announced results for fourth quarter and full year 2007. Diluted net income available to common stockholders per share (EPS) increased to $1.00 in the fourth quarter from $0.49 a year ago. Full year 2007 diluted net income available to common stockholders was $2.99 per share, up from $2.04 per share in 2006.
Fourth quarter funds from operations (FFO) grew 18% to $1.22 per share/unit on a diluted basis from $1.03 per share/unit a year ago. Full year 2007 FFO rose 12% to $4.64 per share/unit on a diluted basis from $4.13 per share/unit in 2006.
"We delivered 12 percent growth in funds from operations in 2007 and expanded our franchise by adding new markets in Toronto, Calgary, Edmonton, The Netherlands, and Belgium, as well as $1.9 billion of new joint venture capacity," said Mike Brennan, president and CEO. "Our strong occupancy and same store net operating income growth reflect the high quality of our portfolio which in turn produces favorable returns as we harvest stabilized properties."
Mr. Brennan added, "We are well positioned to meet our customers' industrial real estate needs as they manage the growing complexity of their supply chains."
Fourth Quarter Portfolio Performance for On Balance Sheet Properties
- 5.7% growth in same property net operating income (NOI) on a cash basis, up from 2.5% in fourth quarter 2006. Excluding lease termination fees, same property cash basis NOI increased 4.4%.
- Occupancy rose to 95.1% from 94.2% in fourth quarter 2006.
- Rental rates increased 6.2%.
- Retained tenants in 62% of square footage up for renewal during the quarter.
Investment Performance: Fourth Quarter and Full Year 2007
Balance Sheet Investment/ 4th Quarter Full Year
Disposition Activity 2007 (in millions) 2007 (in millions)
Property Acquisitions $46.6 $399.1
Square Feet 1.6 million 8.6 million
Stabilized Weighted Average
Capitalization Rate 9.1% 8.7%
Developments Placed in Service $61.0 $139.0
Square Feet 1.2 million 2.6 million
Stabilized Weighted Average
Capitalization Rate 8.1% 8.4%
Land Acquisitions $19.3 $71.7
Total Investments $126.9 $609.8
Property Sales $231.5 $882.8
Square Feet 3.6 million 14.0 million
Weighted Average
Capitalization Rate 7.0% 7.1%
Land Sales $2.0 $13.2
Total Dispositions $233.5 $896.0
Joint Venture Investment/Disposition
Activity
Investments
2005 Development/Redevelopment
- Acquisitions $28.0 $289.3
2005 Development/Redevelopment
- Placed in Service $45.8 $160.6
2006 Strategic Land and
Development - Acquisitions $31.5 $251.5
2007 Core Asset Program --- $103.6
Total Joint Venture
Investments $105.3 $805.0
Dispositions
2005 Development/Redevelopment $61.9 $245.1
2005 Core $53.5 $482.5
1998 Core --- $46.5
2003 Net Lease --- $3.3
Total Joint Venture
Dispositions $115.4 $777.4
"The strength of our platform is evident in the continuing growth of our investment pipeline, especially in our new markets," said Johannson Yap, chief investment officer. "We have already made strategic land acquisitions in Seattle and Canada, and continue to develop investment opportunities in The Netherlands and Belgium."
Land and Development
Developable land now totals 4,354 acres (3,760 acres in joint ventures and 594 acres on balance sheet) that can accommodate up to 68 million square feet of development.
Developments currently in process will total 10.3 million square feet of space (5.5 million in joint ventures and 4.8 million on balance sheet) and represent a projected investment of $554 million ($298 million for the joint ventures and $256 million on balance sheet).
Investment Pipeline and First Quarter To-Date Investments
Year-to-date, $146 million of acquisitions have already been completed. Acquisitions under contract or letter of intent total $955 million. Development currently and soon to be in process on land currently owned is $763 million. Development soon to be in process on land under contract or letter of intent is estimated to be $324 million. The total pipeline is $2.2 billion and the breakdown is as follows:
(millions) Balance Sheet Joint Ventures Total
Developments $386 $701 $1,087
Acquisitions $339 $762 $1,101
Total $725 $1,463 $2,188
Solid Financial Position
- Fixed-charge coverage was 2.9 times and interest coverage was 3.5 times for the year.
- 96% of real estate assets are unencumbered by mortgages.
- No debt maturities in 2008.
- 7.4 years weighted average maturity for permanent debt.
- 100% of permanent debt is fixed rate.
In terms of private capital sources, $1.9 billion of new joint venture capacity was added since the beginning of 2007. This includes a $475 million and $285 million joint venture with the California State Teachers' Retirement System (CalSTRS) for investments in The Netherlands/Belgium and Canada, respectively.
"We expanded our joint venture capital base by $1.9 billion since the beginning of 2007, and our total capital base for our balance sheet and joint ventures is now approximately $10 billion," said Mike Havala, chief financial officer. "Growing our capital base is a key element of our strategy to serve our customers' growing supply chain needs."
Common Stock Repurchase Activity
During fourth quarter 2007, $40 million of common stock was purchased at an average price per share of $37.97. First Industrial has $60 million remaining under its $100 million common stock repurchase program. For full year 2007, First Industrial purchased $69 million under its prior and current common stock repurchase programs.
Supplemental Reporting Measure
First Industrial defines FFO as net income available to common stockholders, plus depreciation and amortization of real estate, minus accumulated depreciation and amortization on real estate sold. The National Association of Real Estate Investment Trusts ("NAREIT") has provided a recommendation on how real estate investment trusts (REITs) should define funds from operations ("FFO"). NAREIT suggests that FFO be defined as net income, excluding gains (or losses) from the sale of previously depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
NAREIT has also clarified that non-recurring charges and gains should be included in FFO.
Importantly, as part of its guidance concerning FFO, NAREIT has stated that the "management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community." As a result, modifications to the NAREIT calculation of FFO are common among REITs.
First Industrial calculates FFO to include all cash gains and losses on all industrial property sales whether depreciation is or is not accumulated under the GAAP accounting rules. The Company believes that FFO inclusive of all cash gains and losses is a better performance measure because it reflects all the activities of the Company and better reflects the Company's strategy, which includes investing in real estate; adding value through redevelopment, leasing and repositioning; and then selling the improved real estate in order to maximize investment returns. The Company provides additional disclosure on net economic gains in its quarterly Supplemental Information Report.
Outlook for 2008
Mr. Brennan stated, "Our outlook for 2008 is positive as customers continue to demand quality industrial space for their supply chain needs across all of our markets."
Mr. Brennan added, "First Industrial's guidance range for 2008 FFO per share/unit is $4.80 to $5.00 and $3.30 to $3.50 for EPS. On balance sheet investment volume assumptions for 2008, which include both developments placed in service and acquisitions, range from $900 million to $1.0 billion with a 8.0% to 9.0% average cap rate. On balance sheet sales volume in 2008 is assumed to be $1.1 billion to $1.2 billion with a 7.0% to 8.0% average cap rate. Book gains from property sales/fees are estimated to be $243 million to $253 million. Our assumption for net economic gains for on balance sheet transactions in 2008 is between $146 million and $156 million.
Our estimate for First Industrial's FFO from joint ventures in 2008 is between $60 million and $70 million. Joint venture investment volume assumptions for 2008, which include both developments placed in service and acquisitions, range from $950 million to $1.05 billion. Joint venture sales volume in 2008 is assumed to be approximately $1.2 billion to $1.3 billion."
Low End High End
of of Low End High End
Guidance Guidance of of
for for Guidance Guidance
1Q 2008 1Q 2008 for 2008 for 2008
(Per share/(Per share/(Per share/(Per share/
unit) unit) unit) unit)
Net Income Available to Common
Stockholders $0.58 $0.68 $3.30 $3.50
Add: Real Estate
Depreciation/Amortization 0.86 0.86 3.45 3.45
Less: Accumulated
Depreciation/Amortization on
Real Estate Sold (0.47) (0.47) (1.95) (1.95)
FFO $0.97 $1.07 $4.80 $5.00
Mr. Brennan continued, "A number of factors could impact our ability to deliver results in line with our assumptions, such as interest rates, the overall economy, the supply and demand of industrial real estate, the timing and yields for divestment and investment, and numerous other variables. There can be no assurance that First Industrial can achieve such results for 2008. However, I believe that First Industrial has the proper strategy, infrastructure, and capabilities to deliver such results."
First Industrial Realty Trust, Inc. (NYSE: FR) provides industrial real estate solutions for every stage of a customer's supply chain, no matter how large or complex. Across more than 30 markets in the United States, Canada, The Netherlands and Belgium, our local market experts buy, (re)develop, lease, manage and sell industrial properties, including all of the major facility types -- R&D/flex, light industrial, manufacturing, and regional and bulk distribution centers. We continue to receive leading customer service scores from Kingsley Associates, an independent research firm, and in total, we own and manage more than 100 million square feet of industrial space. For more information, please visit us at http://www.firstindustrial.com.
This press release contains forward-looking information about the Company. A number of factors could cause the Company's actual results to differ materially from those anticipated, including changes in: national, international, regional and local economic conditions generally and real estate markets specifically, legislation/regulation (including changes to laws governing the taxation of real estate investment trusts), availability of financing, interest rate levels, competition, supply and demand for industrial properties in the Company's current and proposed market areas, potential environmental liabilities, slippage in development or lease-up schedules, tenant credit risks, higher-than-expected costs, changes in general accounting principles, policies and guidelines applicable to real estate investment trusts, and risks related to doing business internationally (including foreign currency exchange risks). For further information on these and other factors that could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission.
A schedule of selected financial information is attached.
First Industrial Realty Trust, Inc. will host a quarterly conference call at 11:00 a.m. CST, 12:00 p.m. EST, on Thursday, February 21, 2008. The call-in number is (888) 693-3477 and the passcode is "First Industrial." The conference call will also be webcast live on First Industrial's website, http://www.firstindustrial.com, under the "Investor Relations" tab. The replay will also be available on the website.
The Company's fourth quarter and full year 2007 supplemental information can be viewed on First Industrial's website, http://www.firstindustrial.com, under the "Investor Relations" tab.
FIRST INDUSTRIAL REALTY TRUST, INC.
Selected Financial Data
(In thousands, except for per share/unit and property data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
Statement of Operations
and Other Data:
Total Revenues $114,739 $100,783 $434,927 $350,924
Property Expenses (33,119) (31,064) (129,403) (115,230)
Contractor Expenses (14,275) (9,597) (34,553) (10,263)
General &
Administrative
Expense (25,623) (21,579) (92,101) (77,497)
Depreciation of
Corporate F, F&E (436) (572) (1,837) (1,913)
Depreciation and
Amortization of
Real Estate (39,438) (35,163) (151,845) (128,669)
Total Expenses (112,891) (97,975) (409,739) (333,572)
Interest Income 511 269 1,926 1,614
Interest Expense (29,550) (30,288) (119,314) (121,141)
Amortization of
Deferred Financing
Costs (738) (840) (3,210) (2,666)
Mark-to-Market/Loss
on Settlement of
Interest Rate
Protection Agreements (a) - - - (3,112)
Loss from Early
Retirement of Debt - - (393) -
Loss from Continuing
Operations Before
Equity in Net Income
of Joint Ventures,
Income Tax Benefit
(Provision) and
Minority Interest
Allocable to
Continuing Operations(27,929) (28,051) (95,803) (107,953)
Equity in Net Income
of Joint Ventures (b) 6,412 18,654 30,045 30,673
Income Tax Benefit
(Provision) 6,080 (1,469) 10,571 9,882
Minority Interest
Allocable to Continuing
Operations 2,593 2,243 9,944 11,593
Loss from Continuing
Operations (12,844) (8,623) (45,243) (55,805)
Income from
Discontinued
Operations (Including
Gain on Sale of Real
Estate of $70,526 and
$42,052 for the Three
Months Ended
December 31, 2007 and
2006, respectively,
and $244,962 and
$213,442 for the Year
Ended December 31,
2007 and 2006,
respectively (c)) 72,012 47,894 260,975 240,145
Provision for Income
Taxes Allocable to
Discontinued Operations
(Including a provision
allocable to Gain on
Sale of Real Estate
of $4,935 and $5,244
for the Three Months
Ended December 31,
2007 and 2006,
respectively, and
$36,032 and $47,511
for the Year Ended
December 31, 2007
and 2006,
respectively(c) (4,913) (6,240) (38,044) (51,102)
Minority Interest
Allocable to
Discontinued
Operations (c) (8,559) (5,353) (28,178) (24,594)
Income Before Gain
(Loss) on Sale of
Real Estate 45,696 27,678 149,510 108,644
Gain (Loss) on Sale of
Real Estate 4,918 (303) 9,425 6,071
(Provision) Benefit for
Income Taxes Allocable
to Gain (Loss) on Sale
of Real Estate (1,947) 69 (3,082) (2,119)
Minority Interest
Allocable to Gain
(Loss) on Sale of Real
Estate (376) 30 (802) (514)
Net Income 48,291 27,474 155,051 112,082
Preferred Dividends (4,857) (5,934) (21,320) (21,424)
Redemption of Preferred
Stock - - (2,017) (672)
Net Income Available
to Common
Stockholders $43,434 $21,540 $131,714 $89,986
RECONCILIATION OF NET
INCOME AVAILABLE TO
COMMON STOCKHOLDERS
TO FFO (d) AND
FAD (d)
Net Income Available
to Common
Stockholders $43,434 $21,540 $131,714 $89,986
Add: Depreciation and
Amortization of Real
Estate 39,438 35,163 151,845 128,669
Add: Income Allocated
to Minority Interest 6,342 3,080 19,036 13,515
Add: Depreciation and
Amortization of Real
Estate Included in
Discontinued Operations 2,005 6,913 13,850 29,713
Add: Depreciation and
Amortization of Real
Estate - Joint
Ventures (b) 1,849 2,820 8,953 10,869
Less: Accumulated
Depreciation/Amortization
on Real Estate Sold (31,258) (16,456) (85,163) (61,239)
Less: Accumulated
Depreciation/Amortization
on Real Estate Sold -
Joint Ventures (b) (964) (764) (5,535) (2,102)
Funds From Operations
("FFO")(d) $60,846 $52,296 $234,700 $209,411
Add: Loss from Early
Retirement of Debt - - 393 -
Add: Restricted Stock
Amortization 3,493 2,512 14,150 9,624
Add: Amortization of
Deferred Financing
Costs 738 840 3,210 2,666
Add: Depreciation
of Corporate F, F&E 436 572 1,837 1,913
Add: Redemption of
Preferred Stock - - 2,017 672
Less: Non-Incremental
Capital Expenditures (9,591) (10,917) (31,313) (39,931)
Less: Straight-Line
Rent (1,736) (2,297) (9,711) (10,151)
Funds Available for
Distribution
("FAD")(d) $54,186 $43,006 $215,283 $174,204
FIRST INDUSTRIAL REALTY TRUST, INC.
Selected Financial Data
(In thousands, except for per share/unit and property data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
RECONCILIATION OF
NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS
TO EBITDA (d) AND
NOI (d)
Net Income Available
to Common
Stockholders 43,434 $21,540 $131,714 $89,986
Add: Interest Expense 29,550 30,288 119,314 121,141
Add: Depreciation
and Amortization of
Real Estate 39,438 35,163 151,845 128,669
Add: Preferred Dividends 4,857 5,934 21,320 21,424
Add: Mark-to-Market/Loss
on Settlement of
Interest Rate
Protection
Agreements (a) - - - 3,112
Add: Provision for
Income Taxes 780 7,640 30,555 43,339
Add: Redemption of
Preferred Stock - - 2,017 672
Add: Income Allocated
to Minority Interest 6,342 3,080 19,036 13,515
Add: Amortization of
Deferred Financing Costs 738 840 3,210 2,666
Add: Depreciation of
Corporate F, F&E 436 572 1,837 1,913
Add: Depreciation and
Amortization of Real
Estate Included in
Discontinued Operations 2,005 6,913 13,850 29,713
Add: Loss from Early
Retirement of Debt - - 393 -
Add: Depreciation and
Amortization of Real
Estate - Joint
Ventures (b) 1,849 2,820 8,953 10,869
Less: Accumulated
Depreciation/Amortization
on Real Estate Sold (31,258) (16,456) (85,163) (61,239)
Less: Accumulated
Depreciation/Amortization
on Real Estate
Sold - Joint
Ventures (b) (964) (764) (5,535) (2,102)
EBITDA (d) $97,207 $97,570 $413,346 $403,678
Add: General and
Administrative
Expense 25,623 21,579 92,101 77,497
Less: Net Economic
Gains, Net of Income
Tax Provision (d) (43,641) (22,371) (149,498) (124,893)
Less: Provision for
Income Taxes (780) (7,640) (30,555) (43,339)
Less: Equity in FFO
of Joint Ventures,
Net of Income
Tax Provision (d) (12,256) (22,257) (52,989) (52,774)
Net Operating
Income ("NOI") (d) $66,153 $66,881 $272,405 $260,169
RECONCILIATION OF GAIN
ON SALE OF REAL ESTATE
TO NET ECONOMIC
GAINS (d)
Gain (Loss) on Sale
of Real Estate 4,918 (303) 9,425 6,071
Gain on Sale of Real
Estate included in
Discontinued
Operations 70,526 42,052 244,962 213,442
Less: Provision for
Income Taxes (780) (7,640) (30,555) (43,339)
Less: Accumulated
Depreciation/Amortization
on Real Estate Sold (31,258) (16,456) (85,163) (61,239)
Add: Assignment Fees - - 3,275 793
Add: Income Taxes
Allocable to FFO from
Joint Ventures 235 4,718 7,554 9,165
Net Economic
Gains (d) $43,641 $22,371 $149,498 $124,893
Weighted Avg. Number
of Shares/Units
Outstanding -
Basic/Diluted(e) 49,715 50,739 50,597 50,703
Weighted Avg. Number of
Shares Outstanding -
Basic/Diluted(e) 43,234 44,118 44,086 44,012
Per Share/Unit Data:
FFO:
- Basic/Diluted (e) $1.22 $1.03 $4.64 $4.13
Loss from Continuing
Operations Less
Preferred Dividends
and Redemption of
Preferred Stock Per
Weighted Average
Common Share
Outstanding:
- Basic/Diluted(e) $(0.35) $(0.33) $(1.43) $(1.69)
Net Income Available
to Common Stockholders
Per Weighted Average
Common Share Outstanding:
- Basic/Diluted(e) $1.00 $0.49 $2.99 $2.04
Dividends/
Distributions $0.72 $0.71 $2.85 $2.81
FFO Payout Ratio 58.8% 68.9% 61.4% 68.0%
FAD Payout Ratio 66.1% 83.8% 67.0% 81.8%
Balance Sheet Data
(end of period):
Real Estate Before
Accumulated
Depreciation $3,326,268 $3,219,728
Real Estate and
Other Held For
Sale, Net 37,875 115,961
Total Assets 3,258,033 3,224,399
Debt 1,946,670 1,834,658
Total Liabilities 2,183,755 2,048,873
Stockholders' Equity
and Minority
Interest $1,074,278 $1,175,526
a) Represents the mark to market/loss on settlement of interest rate
protection agreements that did not qualify for hedge accounting in
accordance with Statement of Financial Accounting Standard No. 133,
"Accounting for Derivative Instruments and Hedging Activities".
b) Represents the Company's share of net income, depreciation and
amortization on real estate and accumulated depreciation and
amortization on real estate sold from the Company's joint ventures in
which it owns minority equity interests.
c) In August 2001, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard No. 144 "Accounting for the
Impairment or Disposal of Long-Lived Assets" ("FAS 144"). FAS 144
requires that the operations and gain (loss) on sale of qualifying
properties sold and properties that are classified as held for sale be
presented in discontinued operations. FAS 144 also requires that prior
periods be restated.
d) Investors in and analysts following the real estate industry utilize
FFO, NOI, EBITDA and FAD, variously defined, as supplemental
performance measures. While the Company believes net income available
to common stockholders, as defined by GAAP, is the most appropriate
measure, it considers FFO, NOI, EBITDA and FAD, given their wide use by
and relevance to investors and analysts, appropriate supplemental
performance measures. FFO, reflecting the assumption that real estate
asset values rise or fall with market conditions, principally adjusts
for the effects of GAAP depreciation and amortization of real estate
assets. NOI provides a measure of rental operations, and does not
factor in depreciation and amortization and non-property specific
expenses such as general and administrative expenses. EBITDA provides
a tool to further evaluate the ability to incur and service debt and to
fund dividends and other cash needs. FAD provides a tool to further
evaluate the ability to fund dividends. In addition, FFO, NOI, EBITDA
and FAD are commonly used in various ratios, pricing multiples/yields
and returns and valuation calculations used to measure financial
position, performance and value.
The Company calculates FFO to be equal to net income available to
common stockholders, plus depreciation and amortization on real estate,
minus accumulated depreciation and amortization on real estate sold.
Accordingly, as calculated by the Company, FFO includes net economic
gains resulting from all Company property sales as well as assignment
fees. Assignment fees are earned when the Company assigns its interest
in a purchase contract to a third party for consideration.
NOI is defined as revenues of the Company, minus property expenses such
as real estate taxes, repairs and maintenance, property management,
utilities, insurance and other expenses. NOI includes NOI from
discontinued operations.
EBITDA is defined as NOI, plus the equity in FFO of the Company's joint
ventures, which are accounted for under the equity method of
accounting, plus Net Economic Gains, minus general and administrative
expenses. EBITDA includes EBITDA from discontinued operations.
FAD is defined as EBITDA, minus GAAP interest expense, minus preferred
stock dividends, minus straight-line rental income, minus provision for
income taxes, plus restricted stock amortization, minus non-incremental
capital expenditures. Non-incremental capital expenditures are
building improvements and leasing costs required to maintain current
revenues.
FFO, NOI, EBITDA and FAD do not represent cash generated from operating
activities in accordance with GAAP and are not necessarily indicative
of cash available to fund cash needs, including the repayment of
principal on debt and payment of dividends and distributions. FFO,
NOI, EBITDA and FAD should not be considered as substitutes for net
income available to common stockholders (calculated in accordance with
GAAP), as a measure of results of operations, or cash flows (calculated
in accordance with GAAP) as a measure of liquidity. FFO, NOI, EBITDA
and FAD, as calculated by the Company, may not be comparable to
similarly titled, but variously calculated, measures of other REITs or
to the definition of FFO published by NAREIT.
The Company also reports Net Economic Gains, which, effectively,
measure the value created in the Company's capital recycling
activities. Net Economic Gains are calculated by subtracting from gain
on sale of real estate (calculated in accordance with GAAP, including
gains on sale of real estate classified as discontinued operations) the
recapture of accumulated depreciation and amortization on real estate
sold (excluding the recapture of accumulated amortization related to
above/below market leases and lease inducements as this amortization is
included in revenues and FFO) and the provision for income taxes
(excluding taxes associated with joint ventures). Net Economic Gains
also includes assignment fees.
In addition, the Company considers cash-basis same store NOI ("SS NOI")
to be a useful supplemental measure of its operating performance.
Beginning with the fourth quarter of 2006, the Company adopted the
following definition of its same store pool of properties: Same store
properties, for the period beginning January 1, 2007, include all
properties owned prior to January 1, 2006 and held as an operating
property through the end of the current reporting period and
developments and redevelopments that were placed in service or were
substantially completed for 12 months prior to January 1, 2006 (the
"Same Store Pool"). The Company defines SS NOI as NOI, less NOI of
properties not in the Same Store Pool, less the impact of straight-line
rent and the amortization of above/below market rent. For the quarters
ended December 31, 2007 and 2006, NOI was $66,153 and $66,881,
respectively; NOI of properties not in the Same Store Pool was $15,460
and $18,007, respectively; the impact of straight-line rent and the
amortization of above/below market rent was $641 and $1,531,
respectively. The Company excludes straight-line rents and above/below
market rent amortization in calculating SS NOI because the Company
believes it provides a better measure of actual cash basis rental
growth for a year-over-year comparison. In addition, the Company
believes that SS NOI helps the investing public compare the
operating performance of a company's real estate as compared to other
companies. While SS NOI is a relevant and widely used measure of
operating performance of real estate investment trusts, it does not
represent cash flow from operations or net income as defined by GAAP
and should not be considered as an alternative to those measures in
evaluating our liquidity or operating performance. SS NOI also does
not reflect general and administrative expenses, interest expenses,
depreciation and amortization costs, capital expenditures and leasing
costs, or trends in development and construction activities that could
materially impact our results from operations. Further, the Company's
computation of SS NOI may not be comparable to that of other real
estate companies, as they may use different methodologies for
calculating SS NOI.
e) Pursuant to Statement of Financial Accounting Standard No. 128,
"Earnings Per Share", the diluted weighted average number of
shares/units outstanding and the diluted weighted average number of
shares outstanding are the same as the basic weighted average number of
shares/units outstanding and the basic weighted average number of
shares outstanding, respectively, for periods in which continuing
operations is a loss, as the dilutive effect of stock options and
restricted stock would be antidilutive to the loss from continuing
operations per share.
SOURCE First Industrial Realty Trust, Inc.
CONTACT: Sean P. O'Neill, SVP, Investor Relations and Corporate Communications, +1-312-344-4401, or Art Harmon, Director, Investor Relations and Corporate Communications, +1-312-344-4320, both of First Industrial Realty Trust