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Press Release
First Industrial Realty Trust Reports Fourth Quarter and Full Year 2011 Results
(Logo: http://photos.prnewswire.com/prnh/20040106/FRLOGO)
First Industrial’s fourth quarter FFO was
FFO per share results for the fourth quarter of 2011 include a
“The First Industrial team continued to deliver on all fronts in 2011 - driving occupancy, strengthening our capital base, and improving our portfolio through targeted asset sales and a return to investing,” said
Portfolio Performance for
- In-service occupancy was 87.9% at the end of the quarter, up 130 basis points from 86.6% at the end of the third quarter 2011, and up 290 basis points from 85.0% at the end of the fourth quarter of 2010.
- Retained tenants in 69.9% of square footage up for renewal.
- Excluding lease termination fees, same store cash basis net operating income (NOI) increased 0.5%. Including lease termination fees, same store cash basis NOI decreased 1.2%.
- Rental rates decreased 11.3% on a cash basis; leasing costs were
$2.93 per square foot.
Capital Markets Activities and Financial Position (Balance Sheet Information)
In the fourth quarter, the Company:
- Closed a new
$450 million senior unsecured revolving credit facility with a three year term and one year extension option, with interest-only payments currently at LIBOR plus 210 basis points, and a facility fee on the unused portion that ranges from 25-35 basis points. - Repurchased
$6.0 million of its senior unsecured notes due 2028,$5.1 million of its 7.5% senior unsecured notes due 2017,$5.0 million of its 5.95% senior unsecured notes due 2017,$1.1 million of its senior unsecured notes due 2014, and$0.5 million of its senior unsecured notes due 2016.
“We added to our capital flexibility and capacity by putting in place our new
Investment and Divestment Activities
In the fourth quarter, the Company:
- Completed asset sales for gross proceeds of approximately
$12.4 million comprised of five industrial properties totaling approximately 468,000 square feet.
In the first quarter of 2012 to date, the Company:
- Acquired its joint venture partner’s 85% interest in a 390,000 square-foot Class A distribution center in
Central Pennsylvania for a total investment of$21.8 million at an in-place cap rate of 7.1%. - Completed the construction of its First Inland Logistics Center development, a 692,000 square-foot state-of-the-art distribution center in
Southern California .
Common Dividend Policy
First Industrial’s dividend policy is determined by our board of directors, and is dependent on multiple factors, including cash flow and capital expenditure requirements, as well as ensuring we meet the minimum distribution requirements set forth in the Code. We met these requirements in 2011.
Outlook for 2012
Mr. Duncan stated, “Industry fundamentals continue to be good, as leasing markets are active and new supply remains limited largely to bulk distribution centers in select coastal markets. As the economy continues to grow moderately, we expect tenants will continue to absorb industrial space which will benefit our portfolio. We expect our occupancy to decline in the first quarter due to seasonality and known moveouts, and increase over the balance of the year.”
Low End of |
High End of |
|||||
Guidance for 2012 |
Guidance for 2012 |
|||||
(Per share/unit) |
(Per share/unit) |
|||||
Net Income (Loss) Available to Common Stockholders |
(0.40) |
(0.30) |
||||
Add: Real Estate Depreciation/Amortization |
1.33 |
1.33 |
||||
FFO (NAREIT Definition) |
$ 0.93 |
$ 1.03 |
||||
The following assumptions were used:
- Average in-service occupancy of 87.5% to 89.0%.
- Same-store NOI of positive 2% to 4% for the full year.
- JV FFO of approximately
$0.8 million . - General and administrative expense of approximately
$21.5 million to $22.5 million . - The Company plans to sell properties in 2012 depending upon market conditions the impact of which is not included in our FFO and EPS guidance above. Guidance does not include the impact of any future impairment gains or losses.
- Guidance does not include the impact of any future property investments; however, guidance does reflect the impact of the 390,000 square-foot acquisition completed in 1Q12 described above.
- Guidance does not include the impact of any future debt repurchases prior to maturity or future debt issuances.
- Guidance does not include the impact of issuing additional equity, which the Company may elect to do, depending on market conditions.
A number of factors could impact our ability to deliver results in line with our assumptions, such as interest rates, the economies of
FFO Definition
About
Forward-Looking Information
This press release and the presentation to which it refers may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “seek,” “target,” “potential,” “focus,” “may,” “should” or similar expressions. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities (including the
A schedule of selected financial information is attached.
The Company’s fourth quarter and full year supplemental information can be viewed on First Industrial’s website, www.firstindustrial.com, under the “Investor Relations” tab.
FIRST INDUSTRIAL REALTY TRUST, INC. |
|||||||||
Selected Financial Data |
|||||||||
(In thousands, except for per share/unit) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Year Ended |
||||||||
December 31, |
December 31, |
December 31, |
December 31, |
||||||
2011 |
2010 |
2011 |
2010 |
||||||
Statement of Operations and Other Data: |
|||||||||
Total Revenues |
$ 79,677 |
$ 80,127 |
$ 317,835 |
$ 321,778 |
|||||
Property Expenses |
(27,546) |
(27,326) |
(108,590) |
(108,651) |
|||||
General & Administrative Expense |
(5,585) |
(5,358) |
(20,638) |
(26,589) |
|||||
Restructuring Costs |
- |
(309) |
(1,553) |
(1,858) |
|||||
Impairment of Real Estate |
1,006 |
(15,516) |
8,807 |
(112,904) |
|||||
Depreciation of Corporate F,F&E |
(328) |
(458) |
(1,426) |
(1,975) |
|||||
Depreciation and Amortization of Real Estate |
(32,351) |
(29,298) |
(120,178) |
(123,323) |
|||||
Construction Expenses |
- |
(51) |
- |
(507) |
|||||
Total Expenses |
(64,804) |
(78,316) |
(243,578) |
(375,807) |
|||||
Interest Income |
888 |
1,244 |
3,922 |
4,364 |
|||||
Interest Expense |
(23,196) |
(27,159) |
(100,127) |
(105,898) |
|||||
Amortization of Deferred Financing Costs |
(726) |
(1,061) |
(3,963) |
(3,473) |
|||||
Loss from Retirement of Debt |
(855) |
(320) |
(5,459) |
(4,304) |
|||||
Mark-to-Market (Loss) Gain on Interest Rate Protection Agreements |
(158) |
681 |
(1,718) |
(1,107) |
|||||
Foreign Currency Exchange Loss |
- |
- |
(332) |
(190) |
|||||
Loss from Continuing Operations Before Gain on Sale of Joint Venture Interest, |
|||||||||
Equity in Income of Joint Ventures, Gain on Change in Control of Interests |
|||||||||
and Income Tax Provision |
(9,174) |
(24,804) |
(33,420) |
(164,637) |
|||||
Gain on Sale of Joint Venture Interest |
- |
1,352 |
- |
11,226 |
|||||
Equity in Income of Joint Ventures (b) |
73 |
950 |
980 |
675 |
|||||
Gain on Change in Control of Interests |
- |
- |
689 |
- |
|||||
Income Tax Provision |
(424) |
(536) |
(450) |
(2,963) |
|||||
Loss from Continuing Operations |
(9,525) |
(23,038) |
(32,201) |
(155,699) |
|||||
Discontinued Operations: |
|||||||||
Income (Loss) Attributable to Discontinued Operations |
1,464 |
(3,702) |
2,920 |
(77,529) |
|||||
Gain on Sale of Real Estate |
7,068 |
1,525 |
20,419 |
11,092 |
|||||
Benefit (Provision) for Income Taxes Allocable to Discontinued Operations |
817 |
- |
(1,246) |
- |
|||||
Total Discontinued Operations |
9,349 |
(2,177) |
22,093 |
(66,437) |
|||||
Loss Before Gain on Sale of Real Estate |
(176) |
(25,215) |
(10,108) |
(222,136) |
|||||
Gain on Sale of Real Estate |
- |
- |
1,370 |
859 |
|||||
Provision for Income Taxes Allocable to Gain on Sale of Real Estate |
- |
- |
(452) |
(342) |
|||||
Net Loss |
(176) |
(25,215) |
(9,190) |
(221,619) |
|||||
Net Loss Attributable to the Noncontrolling Interest |
255 |
2,241 |
1,745 |
18,798 |
|||||
Net Income (Loss) Attributable to First Industrial Realty Trust, Inc. |
79 |
(22,974) |
(7,445) |
(202,821) |
|||||
Preferred Dividends |
(4,763) |
(4,854) |
(19,565) |
(19,677) |
|||||
Net Loss Available to First Industrial Realty Trust, Inc.'s |
|||||||||
Common Stockholders and Participating Securities |
$ (4,684) |
$ (27,828) |
$ (27,010) |
$ (222,498) |
|||||
RECONCILIATION OF NET LOSS AVAILABLE TO |
|||||||||
FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON |
|||||||||
STOCKHOLDERS AND PARTICIPATING SECURITIES TO FFO (c) AND FAD (c) |
|||||||||
Net Loss Available to First Industrial Realty Trust, Inc.'s |
|||||||||
Common Stockholders and Participating Securities |
$ (4,684) |
$ (27,828) |
$ (27,010) |
$ (222,498) |
|||||
Depreciation and Amortization of Real Estate |
32,351 |
29,298 |
120,178 |
123,323 |
|||||
Depreciation and Amortization of Real Estate Included in Discontinued Operations |
230 |
1,192 |
2,145 |
11,273 |
|||||
Noncontrolling Interest |
(255) |
(2,241) |
(1,745) |
(18,798) |
|||||
Depreciation and Amortization of Real Estate from Joint Ventures (b) |
102 |
(187) |
551 |
947 |
|||||
Impairment of Depreciated Real Estate |
(400) |
6,265 |
(1,687) |
90,204 |
|||||
Impairment of Depreciated Real Estate Included in Discontinued Operations |
648 |
6,019 |
6,146 |
81,648 |
|||||
Gain on Change in Control of Interests |
- |
- |
(689) |
- |
|||||
Non-NAREIT Compliant Gain |
(7,068) |
(1,525) |
(20,419) |
(11,073) |
|||||
Non-NAREIT Compliant Gain from Joint Ventures (b) |
- |
(350) |
(616) |
(231) |
|||||
Funds From Operations (NAREIT) ("FFO") (c) |
$ 20,924 |
$ 10,643 |
$ 76,854 |
$ 54,795 |
|||||
Loss from Retirement of Debt |
855 |
320 |
5,459 |
4,304 |
|||||
Restricted Stock Amortization |
991 |
1,373 |
3,759 |
6,040 |
|||||
Amortization of Deferred Financing Costs |
726 |
1,061 |
3,963 |
3,473 |
|||||
Depreciation of Corporate F,F&E |
328 |
458 |
1,426 |
1,975 |
|||||
Impairment of Undepreciated Real Estate |
(606) |
9,251 |
(7,120) |
22,700 |
|||||
Mark-to-Market Loss (Gain) on Interest Rate Protection Agreements |
158 |
(681) |
1,718 |
1,107 |
|||||
Non-Incremental Capital Expenditures |
(18,306) |
(16,289) |
(56,038) |
(42,476) |
|||||
Straight-Line Rent |
(1,987) |
(2,113) |
(7,733) |
(7,041) |
|||||
Funds Available for Distribution ("FAD") (c) |
$ 3,083 |
$ 4,023 |
$ 22,288 |
$ 44,877 |
|||||
FIRST INDUSTRIAL REALTY TRUST, INC. |
|||||||||
Selected Financial Data |
|||||||||
(In thousands, except for per share/unit) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Year Ended |
||||||||
December 31, |
December 31, |
December 31, |
December 31, |
||||||
2011 |
2010 |
2011 |
2010 |
||||||
RECONCILIATION OF NET LOSS AVAILABLE TO |
|||||||||
FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON |
|||||||||
STOCKHOLDERS AND PARTICIPATING SECURITIES TO EBITDA (c) AND NOI (c) |
|||||||||
Net Loss Available to First Industrial Realty Trust, Inc.'s |
|||||||||
Common Stockholders and Participating Securities |
$ (4,684) |
$ (27,828) |
$ (27,010) |
$ (222,498) |
|||||
Interest Expense |
23,196 |
27,159 |
100,127 |
105,898 |
|||||
Interest Expense Included in Discontinued Operations |
- |
66 |
63 |
268 |
|||||
Restructuring Costs |
- |
309 |
1,553 |
1,858 |
|||||
Impairment of Undepreciated Real Estate |
(606) |
9,251 |
(7,120) |
22,700 |
|||||
Impairment of Depreciated Real Estate |
(400) |
6,265 |
(1,687) |
90,204 |
|||||
Impairment of Depreciated Real Estate Included in Discontinued Operations |
648 |
6,019 |
6,146 |
81,648 |
|||||
Depreciation and Amortization of Real Estate |
32,351 |
29,298 |
120,178 |
123,323 |
|||||
Depreciation and Amortization of Real Estate Included in Discontinued Operations |
230 |
1,192 |
2,145 |
11,273 |
|||||
Preferred Dividends |
4,763 |
4,854 |
19,565 |
19,677 |
|||||
(Benefit) Provision for Income Taxes |
(393) |
536 |
2,148 |
3,305 |
|||||
Noncontrolling Interest |
(255) |
(2,241) |
(1,745) |
(18,798) |
|||||
Loss from Retirement of Debt |
855 |
320 |
5,459 |
4,304 |
|||||
Amortization of Deferred Financing Costs |
726 |
1,061 |
3,963 |
3,473 |
|||||
Depreciation of Corporate F,F&E |
328 |
458 |
1,426 |
1,975 |
|||||
Depreciation and Amortization of Real Estate from Joint Ventures (b) |
102 |
(187) |
551 |
947 |
|||||
Gain on Change in Control of Interests |
- |
- |
(689) |
- |
|||||
Non-NAREIT Compliant Gain |
(7,068) |
(1,525) |
(20,419) |
(11,073) |
|||||
Non-NAREIT Compliant Gain from Joint Ventures (b) |
- |
(350) |
(616) |
(231) |
|||||
EBITDA (c) |
$ 49,793 |
$ 54,657 |
$ 204,038 |
$ 218,253 |
|||||
General and Administrative Expense |
5,585 |
5,358 |
20,638 |
26,589 |
|||||
Foreign Currency Exchange Loss |
- |
- |
332 |
190 |
|||||
Mark-to-Market Loss (Gain) on Interest Rate Protection Agreements |
158 |
(681) |
1,718 |
1,107 |
|||||
NAREIT Compliant Economic Gain (c) |
- |
- |
(1,370) |
(878) |
|||||
FFO of Joint Ventures (c) |
(445) |
(1,912) |
(1,885) |
(17,569) |
|||||
Net Operating Income ("NOI") (c) |
$ 55,091 |
$ 57,422 |
$ 223,471 |
$ 227,692 |
|||||
RECONCILIATION OF GAIN ON SALE OF REAL ESTATE |
|||||||||
TO NAREIT COMPLIANT ECONOMIC GAIN (c) |
|||||||||
Gain on Sale of Real Estate |
$ - |
$ - |
$ 1,370 |
$ 859 |
|||||
Gain on Sale of Real Estate included in Discontinued Operations |
7,068 |
1,525 |
20,419 |
11,092 |
|||||
Non-NAREIT Compliant Gain |
(7,068) |
(1,525) |
(20,419) |
(11,073) |
|||||
NAREIT Compliant Economic Gain (c) |
$ - |
$ - |
$ 1,370 |
$ 878 |
|||||
Weighted Avg. Number of Shares/Units Outstanding - Basic/Diluted (a) |
91,200 |
69,413 |
85,913 |
68,327 |
|||||
Weighted Avg. Number of Shares Outstanding - Basic/Diluted (a) |
85,941 |
64,049 |
80,616 |
62,953 |
|||||
Per Share/Unit Data: |
|||||||||
FFO (NAREIT) Allocable to Common Stockholders and Unitholders |
$ 20,924 |
$ 10,643 |
$ 76,854 |
$ 54,795 |
|||||
- Basic/Diluted (a) |
$ 0.23 |
$ 0.15 |
$ 0.89 |
$ 0.80 |
|||||
Loss from Continuing Operations, including Gain on Sale of Real Estate, Net of Income Tax |
$ (9,525) |
$ (23,038) |
$ (31,283) |
$ (155,182) |
|||||
Add: Noncontrolling Interest Allocable to Continuing Operations and Gain on Sale of Real Estate |
798 |
2,065 |
3,097 |
13,623 |
|||||
Less: Preferred Dividends |
(4,763) |
(4,854) |
(19,565) |
(19,677) |
|||||
Loss from Continuing Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders |
$ (13,490) |
$ (25,827) |
$ (47,751) |
$ (161,236) |
|||||
- Basic/Diluted (a) |
$ (0.16) |
$ (0.40) |
$ (0.59) |
$ (2.56) |
|||||
Net Loss Available to First Industrial Realty Trust, Inc.'s Common Stockholders |
$ (4,684) |
$ (27,828) |
$ (27,010) |
$ (222,498) |
|||||
- Basic/Diluted (a) |
$ (0.05) |
$ (0.43) |
$ (0.34) |
$ (3.53) |
|||||
Balance Sheet Data (end of period): |
|||||||||
Real Estate Before Accumulated Depreciation |
$ 2,992,096 |
$ 2,618,767 |
|||||||
Real Estate and Other Held For Sale, Net |
91,659 |
392,291 |
|||||||
Total Assets |
2,666,657 |
2,750,054 |
|||||||
Debt |
1,479,483 |
1,742,782 |
|||||||
Total Liabilities |
1,594,062 |
1,857,910 |
|||||||
Total Equity |
$ 1,072,595 |
$ 892,144 |
|||||||
a) In accordance with GAAP, 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 units would be antidilutive to the loss from continuing operations per share. The Company has conformed with the GAAP computation of diluted common shares in computing per share amounts for items included on the Statement of Operations, including FFO and FAD.
GAAP requires unvested equity based compensation awards that have nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be included in the two class method of the computation of EPS. For the three and twelve months ended
b) Represents the Company's pro rata share of net income (loss), depreciation and amortization on real estate and Non-NAREIT compliant gain (loss).
c) Investors in and analysts following the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), EBITDA and funds available for distribution ("FAD"), variously defined, as supplemental performance measures. While the Company believes net income (loss) available to
From
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 or minus NAREIT compliant economic gain (loss), plus foreign exchange loss, plus or minus mark-to-market gain or loss on interest rate protection agreements, minus general and administrative expenses. EBITDA includes EBITDA from discontinued operations.
FAD is defined as EBITDA minus GAAP interest expense, minus restructuring costs, minus preferred stock dividends, minus straight-line rental income, minus provision for income taxes or plus benefit for income taxes, minus or plus mark-to-market gain or loss on interest rate protection agreements, plus restricted stock amortization, minus non-incremental capital expenditures. Non-incremental capital expenditures are building improvements and leasing costs required to maintain current revenues. See footnote (aa).
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 (loss) available to common stockholders and participating securities (calculated in accordance with GAAP) as a measure of results of operations or cash flows (calculated in accordance with GAAP) as a measure of liquidity. FFO, NOI, EBITDA and FAD as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.
In addition, the Company considers cash-basis same store NOI (“SS NOI”) to be a useful supplemental measure of its operating performance. Same store properties, for the period beginning
SOURCE
Art Harmon, Senior Director, Investor Relations and Corporate Communications, +1-312-344-4320