INVESTORS

Low End of

High End of 

Guidance for 2018

Guidance for 2018

(Per share/unit)

(Per share/unit)

Net Income

1.08

1.12

Add:   Real Estate Depreciation/Amortization

0.90

0.90

Add:   Impairment of Depreciable Real Estate - 1Q18

0.02

0.02

Less: Gain on Sale of Depreciable Real Estate Through October 24, 2018

(0.44)

(0.44)

FFO (NAREIT Definition)

$1.56

$1.60

Plus: Net Adjustment for Severance Charge, Impairment of Non-Depreciable Real Estate, and NAREIT Gain

0.01

0.01

FFO Before Severance Charge, Impairment of Non-Depreciable Real Estate, and NAREIT Gain

$1.57

$1.61

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

 (In thousands except per share/Unit data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2018

2017

2018

2017

Statement of Operations and Other Data:

    Total Revenues

$        100,256

$          99,310

$        298,872

$        294,272

    Property Expenses

(28,466)

(28,452)

(86,430)

(83,835)

    General and Administrative (a) 

(6,581)

(6,492)

(21,470)

(21,310)

    Impairment of Real Estate 

-

-

(2,756)

-

    Depreciation of Corporate FF&E 

(206)

(166)

(577)

(501)

    Depreciation and Other Amortization of Real Estate 

(28,439)

(29,530)

(85,019)

(86,729)

        Total Expenses

(63,692)

(64,640)

(196,252)

(192,375)

    Gain on Sale of Real Estate 

8,135

23,271

53,291

52,140

    Interest Expense 

(12,424)

(14,376)

(37,818)

(43,660)

    Amortization of Debt Issuance Costs 

(850)

(778)

(2,550)

(2,336)

    Mark-to-Market Gain on Interest Rate Protection Agreements 

-

1,848

-

1,848

    Loss from Retirement of Debt 

-

-

(39)

(1,653)

       Income from Operations Before Equity in Loss of Joint Venture and Income Tax Benefit (Provision) 

31,425

44,635

115,504

108,236

    Equity in Loss of Joint Venture 

(197)

-

(199)

-

    Income Tax Benefit (Provision) 

302

21

93

(1,236)

         Net Income 

31,530

44,656

115,398

107,000

    Net Income Attributable to the Noncontrolling Interest 

(619)

(1,458)

(2,986)

(3,531)

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

$         30,911

$         43,198

$       112,412

$       103,469

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

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

$         30,911

$         43,198

$       112,412

$       103,469

     Depreciation and Other Amortization of Real Estate 

28,439

29,530

85,019

86,729

     Impairment of Depreciable Real Estate 

-

-

2,285

-

     Noncontrolling Interest 

619

1,458

2,986

3,531

     Gain on Sale of Depreciable Real Estate 

(7,520)

(23,271)

(52,660)

(52,140)

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

$         52,449

$         50,915

$       150,042

$       141,589

     Loss from Retirement of Debt 

-

-

39

1,653

     Restricted Stock/Unit Amortization 

2,003

1,844

5,689

6,767

     Amortization of Debt (Premiums)/Discounts and Hedge Costs 

(10)

(15)

(34)

74

     Amortization of Debt Issuance Costs 

850

778

2,550

2,336

     Depreciation of Corporate FF&E 

206

166

577

501

     Impairment of Non-Depreciable Real Estate 

-

-

471

-

     Mark-to-Market Gain on Interest Rate Protection Agreements 

-

(1,848)

-

(1,848)

     Gain on Sale of Non-Depreciable Real Estate 

(615)

-

(631)

-

     Non-incremental Building Improvements 

(3,850)

(4,539)

(8,655)

(10,421)

     Non-incremental Leasing Costs 

(5,165)

(5,446)

(17,307)

(15,979)

     Capitalized Interest 

(1,550)

(1,107)

(4,867)

(3,014)

     Capitalized Overhead 

(628)

(76)

(987)

(234)

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

(393)

(1,275)

(1,578)

(4,356)

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

$         43,297

$         39,397

$       125,309

$       117,068

FIRST INDUSTRIAL REALTY TRUST, INC.

Selected Financial Data

(Unaudited)

 (In thousands except per share/Unit data)

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

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2018

2017

2018

2017

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

$         30,911

$         43,198

$       112,412

$       103,469

     Interest Expense 

12,424

14,376

37,818

43,660

     Depreciation and Other Amortization of Real Estate 

28,439

29,530

85,019

86,729

     Impairment of Real Estate 

-

-

2,756

-

     Severance Expense (a) 

-

-

1,298

-

     Income Tax (Benefit) Provision 

(302)

(21)

(93)

1,236

     Noncontrolling Interest 

619

1,458

2,986

3,531

     Loss from Retirement of Debt 

-

-

39

1,653

     Mark-to-Market Gain on Interest Rate Protection Agreements 

-

(1,848)

-

(1,848)

     Amortization of Debt Issuance Costs 

850

778

2,550

2,336

     Depreciation of Corporate FF&E 

206

166

577

501

     Gain on Sale of Real Estate 

(8,135)

(23,271)

(53,291)

(52,140)

     Adjusted EBITDA (b) 

$         65,012

$         64,366

$       192,071

$       189,127

     General and Administrative (a) 

6,581

6,492

20,172

21,310

     FFO from Joint Venture 

197

-

199

-

     Net Operating Income ("NOI") (b) 

$         71,790

$         70,858

$       212,442

$       210,437

     Non-Same Store NOI 

(3,069)

(5,966)

(9,552)

(15,541)

     Same Store NOI Before Same Store Adjustments (b) 

$         68,721

$         64,892

$       202,890

$       194,896

     Straight-line Rent 

405

31

286

(2,308)

     Above (Below) Market Lease Amortization 

(201)

(242)

(606)

(766)

     Lease Termination Fees 

(88)

(211)

(268)

(668)

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

$         68,837

$         64,470

$       202,302

$       191,154

Weighted Avg. Number of Shares/Units Outstanding - Basic

128,526

123,483

126,380

121,909

Weighted Avg. Number of Shares Outstanding - Basic

125,768

119,446

123,098

117,870

Weighted Avg. Number of Shares/Units Outstanding - Diluted

128,888

124,027

126,779

122,391

Weighted Avg. Number of Shares Outstanding - Diluted

126,130

119,990

123,497

118,352

Per Share/Unit Data:

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

$          30,911

$          43,198

$        112,412

$        103,469

 Less: Allocation to Participating Securities 

(101)

(145)

(349)

(327)

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

$          30,810

$          43,053

$        112,063

$        103,142

 Basic Per Share 

$              0.24

$              0.36

$              0.91

$              0.88

 Diluted Per Share 

$              0.24

$              0.36

$              0.91

$              0.87

 FFO (NAREIT) (b) 

$          52,449

$          50,915

$        150,042

$        141,589

 Less: Allocation to Participating Securities 

(168)

(165)

(453)

(433)

 FFO (NAREIT) Allocable to Common Stockholders and Unitholders 

$          52,281

$          50,750

$        149,589

$        141,156

 Basic Per Share/Unit 

$              0.41

$              0.41

$              1.18

$              1.16

 Diluted Per Share/Unit 

$              0.41

$              0.41

$              1.18

$              1.15

 Common Dividends/Distributions Per Share/Unit 

$          0.2175

$          0.2100

$          0.6525

$          0.6300

Balance Sheet Data (end of period):

      Gross Real Estate Investment

$     3,623,916

$     3,492,647

      Real Estate and Other Assets Held For Sale, Net

7,221

18,646

      Total Assets

3,125,327

2,927,826

      Debt

1,299,131

1,368,291

      Total Liabilities

1,462,302

1,533,553

      Total Equity

$     1,663,025

$     1,394,273

a)

Nine Months Ended

September 30, 2018

     General and Administrative per the Form 10-Q

21,470

     Severance Expense

(1,298)

     General and Administrative per Reconcilation within the Selected Financial Data

20,172

b) Investors in, and analysts following, the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), adjusted EBITDA and adjusted funds from operations ("AFFO"), variously defined below, as supplemental performance measures. While we believe net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, as defined by GAAP, is the most appropriate measure, we consider FFO, NOI, adjusted EBITDA and AFFO, given their wide use by, and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, FFO, NOI, adjusted EBITDA and AFFO are commonly used in various ratios, pricing multiples/yields and returns and valuation calculations used to measure financial position, performance and value.

As used herein, we calculate FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of depreciable real estate, minus gain on sale of depreciable real estate.

NOI is defined as our revenues, minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses.

Adjusted EBITDA is defined as NOI minus general and administrative expenses and the equity in FFO loss from our investment in a joint venture. For the nine months ended September 30, 2018, $1,298 of severance expense included in general and administrative expense was not deducted to arrive at adjusted EBITDA.

AFFO is defined as adjusted EBITDA minus GAAP interest expense, minus capitalized interest and overhead, (minus)/plus amortization of debt (premiums)/discounts and hedge costs, minus straight-line rental income, amortization of above (below) market leases and lease inducements, minus provision for income taxes or plus benefit for income taxes, plus restricted stock/unit amortization, minus severance expense and minus non-incremental capital expenditures. Non-incremental capital expenditures refer to building improvements and leasing costs required to maintain current revenues plus tenant improvements amortized back to the tenant over the lease term. Excluded are first generation leasing costs, capital expenditures underwritten at acquisition and development/redevelopment costs.

FFO, NOI, adjusted EBITDA and AFFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. FFO, NOI, adjusted EBITDA and AFFO should not be considered as substitutes for net income available to common stockholders and participating securities (calculated in accordance with GAAP) as a measure of results of operations or cash flows (calculated in accordance with GAAP) as a measure of liquidity. FFO, NOI, adjusted EBITDA and AFFO as currently calculated by us may not be comparable to similarly titled, but variously calculated, measures of other REITs.

In addition, we consider cash-basis same store NOI ("SS NOI") to be a useful supplemental measure of our operating performance. Same store properties include all properties owned prior to January 1, 2017 and held as an in service property through the end of the current reporting period (including nine land parcels that are leased under ground lease arrangements), and developments and redevelopments that were placed in service prior to January 1, 2017 (the "Same Store Pool"). Properties which are at least 75% occupied at acquisition are placed in service, unless we anticipate tenant move-outs within two years of ownership would drop occupancy below 75%. Acquired properties with occupancy greater than 75% at acquisition, but with tenants that we anticipate will move out within two years of ownership, will be placed in service upon the earlier of reaching 90% occupancy or twelve months after move out. Acquisitions that are less than 75% occupied at the date of acquisition, developments and redevelopments are placed in service as they reach the earlier of a) stabilized occupancy (generally defined as 90% occupied), or b) one year subsequent to acquisition or development/redevelopment construction completion.

We define SS NOI as NOI, less NOI of properties not in the Same Store Pool, less the impact of straight-line rent, the amortization of above (below) market rent and the impact of lease termination fees. We exclude straight-line rent and above (below) market rent in calculating SS NOI because we believe it provides a better measure of actual cash basis rental growth for a year-over-year comparison. In addition, we believe that SS NOI helps the investing public compare the operating performance of a company's real estate as compared to other companies. While SS NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. SS NOI also does not reflect general and administrative expense, interest expense, depreciation and amortization, income tax benefit and expense, gains and losses on retirement of debt, impairment of real estate, sale of real estate, equity in income or loss from our joint venture, capital expenditures and leasing costs, or trends in development and construction activities that could materially impact our results from operations. Further, our computation of SS NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating SS NOI.