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Slide 1
First Industrial Realty Trust, Inc. Mary Voss December 2,
2004
Slide 2
Our Position We paid $24.625 for 500 shares and $24.75 for 500
shares on December 10, 1999 We paid $24.625 for 500 shares and
$24.75 for 500 shares on December 10, 1999 The current stock price
is $40.21 The current stock price is $40.21 Comprises approximately
13% of the portfolios market value. Comprises approximately 13% of
the portfolios market value. Recommendation: Hold Recommendation:
Hold
Slide 3
The Business Largest provider of diversified industrial real
estate in U.S. Largest provider of diversified industrial real
estate in U.S. Self-administered real estate investment trust that
owns, manages, acquires, sells and develops industrial real estate
Self-administered real estate investment trust that owns, manages,
acquires, sells and develops industrial real estate - Decentralized
and locally based property management, acquisition, sales and
development functions - Claims cost efficiencies of centralized
acquisition, sales and development support, capital markets
expertise, asset management and fiscal control systems In order to
maintain its status as a REIT under the Internal Revenue Code In
order to maintain its status as a REIT under the Internal Revenue
Code - distributing at least 90% of its REIT taxable income - $1.87
per share for 2003
Slide 4
Leasing 57.9 million square feet of gross leasable area (GLA)
located in 22 states 57.9 million square feet of gross leasable
area (GLA) located in 22 states Over 2,400 tenants engaged in
different businesses Over 2,400 tenants engaged in different
businesses No one tenant provided for more than 1.7% of the rent
revenues No one tenant provided for more than 1.7% of the rent
revenues Most leases are between three and six years Most leases
are between three and six years - rent increases based on the
Consumer Price Index Industrial tenants usually pay their
percentage of the propertys operating costs Industrial tenants
usually pay their percentage of the propertys operating costs -
i.e. the costs of common area maintenance, property taxes and
insurance. As of December 31, 2003, - 88% of the GLA of the
industrial properties was leased As of December 31, 2003, - 88% of
the GLA of the industrial properties was leased
Slide 5
Integrated Industrial Solutions Focused on the clients supply
chain Focused on the clients supply chain - improve the supply
chains efficiency and flexibility - improve the supply chains
efficiency and flexibility builds for, purchases from, and leases
and sells industrial properties to the client builds for, purchases
from, and leases and sells industrial properties to the client
targets large and middle market companies targets large and middle
market companies
Slide 6
The Properties In business parks that have convenient access to
transportation systems In business parks that have convenient
access to transportation systems As of December 31, 2003, the
Company's portfolio consisted of: As of December 31, 2003, the
Company's portfolio consisted of: - 423 light industrial properties
- 163 research and development/flex properties - 123 bulk warehouse
properties - 92 regional warehouse properties - 33 manufacturing
properties Weighted average age of properties was 17 years Weighted
average age of properties was 17 years
Slide 7
Slide 8
The Properties Diversified geographic exposure Diversified
geographic exposure - No single market provides more than 10% of
its annual rental income. - No single market provides more than 10%
of its annual rental income. During the third quarter: During the
third quarter: - Acquired 2.8 million sq. ft. of properties for
$149.4 million, or approximately $42 per sq. ft. - Acquired 2.8
million sq. ft. of properties for $149.4 million, or approximately
$42 per sq. ft. - Developed 503,156 sq. ft. for $29.5 million or
$59 per sq. ft. - Developed 503,156 sq. ft. for $29.5 million or
$59 per sq. ft. - Dispositions of only $69.1 million - Dispositions
of only $69.1 million
Slide 9
Financial Performance For third quarter: For third quarter: -
Diluted earnings per share was $0.82 compared to $0.66 per share
for the same quarter in 2003 - Increased occupancy 90 basis points,
sixth consecutive quarterly increase For the nine months: For the
nine months: - Revenues rose 2% to $242 million - Net loss from
continuing operations totaled $14.2 million - Due to higher
acquisition of properties, lower insurance costs, higher interest
income, absence of loss from early retirement of debt and higher
equity income of Joint Ventures
Slide 10
Financial Performance First Industrial had been a net seller of
assets for the past several quarters before third quarter First
Industrial had been a net seller of assets for the past several
quarters before third quarter Of debt 87.5% is at a fixed rate Of
debt 87.5% is at a fixed rate Average maturity of over ten years.
Average maturity of over ten years. Maturing debt is less than $1
million in 2004, which is less than 1% of total debt. Maturing debt
is less than $1 million in 2004, which is less than 1% of total
debt. In 2005 is only 3.4% of debt matures. In 2005 is only 3.4% of
debt matures.
Slide 11
Same Store NOI - Year on Year % change
Slide 12
Stock Price Performance
Slide 13
Financial Analysis DCF model returned a price of $32.92 DCF
model returned a price of $32.92 Several variables that can
significantly change this price Several variables that can
significantly change this price - Capital Expenditures - Revenue
Growth Rates - Net Investment in Real Estate Growth Rates -
Depreciation figures Lets look at the excel file Lets look at the
excel file
Slide 14
Competitors
Slide 15
Competitors Centerpoint Properties Trust; industrial properties
in the metropolitan Chicago, Illinois area Centerpoint Properties
Trust; industrial properties in the metropolitan Chicago, Illinois
area - Gross Margin (ttm):58.30%, Net Income (ttm): 35.59M
EastGroup Properties Inc; industrial properties in Sunbelt markets
EastGroup Properties Inc; industrial properties in Sunbelt markets
- Gross Margin (ttm):71.61%, Net Income (ttm): 18.24M First
Industrial First Industrial -Gross Margin (ttm):72.48%, Net Income
(ttm):14.03M First Industrial is very diversified, while these
competitors are not as geographically diversified First Industrial
is very diversified, while these competitors are not as
geographically diversified
Slide 16
REITs by Industry
Slide 17
Industry Ruled by general economic factors that govern the
economy Ruled by general economic factors that govern the economy -
Low U.S. dollar may increase industrial activity thus increasing
demand for industrial space A strong private market for industrial
real estate has created a very favorable sellers market A strong
private market for industrial real estate has created a very
favorable sellers market Redeploying capital has become a problem
Redeploying capital has become a problem
Slide 18
Significant Development October 13, 2004 October 13, 2004
Build-to-suit agreement with the Ridge Tool Company Build-to-suit
agreement with the Ridge Tool Company Ridge Tool is a subsidiary of
Emerson Electric Ridge Tool is a subsidiary of Emerson Electric
Develop a 129,000-square-foot distribution facility in Cambridge,
Ohio Develop a 129,000-square-foot distribution facility in
Cambridge, Ohio Scheduled to be completed in summer 2005. Scheduled
to be completed in summer 2005.
Slide 19
More Funding October 4, 2004 October 4, 2004 Sold 1.25 million
shares of its common stock at $37.00 per share Sold 1.25 million
shares of its common stock at $37.00 per share - The sales net
proceeds were $45.8 million June 9, 2004 June 9, 2004 priced $125
million of 5.25% senior unsecured notes due 2009 at 99.826 percent
of par to yield 5.29% priced $125 million of 5.25% senior unsecured
notes due 2009 at 99.826 percent of par to yield 5.29%
Slide 20
Good News December 1, 2004 December 1, 2004 Board of directors
declared a dividend of $0.695 per share for the quarter ending
December 31, 2004, Board of directors declared a dividend of $0.695
per share for the quarter ending December 31, 2004, The new
dividend rate ($2.78 annualized) up from the previous dividend rate
of $0.685 ($2.74 annualized) The new dividend rate ($2.78
annualized) up from the previous dividend rate of $0.685 ($2.74
annualized) - 1.5% increase "This dividend increase reflects our
strong financial position and positive outlook for our business,"
said Michael W. Brennan, president and chief executive officer.
"This dividend increase reflects our strong financial position and
positive outlook for our business," said Michael W. Brennan,
president and chief executive officer.
Slide 21
Summary Recommendation: Hold Recommendation: Hold Good future
prospects with the positive outlook on the U.S. economy Good future
prospects with the positive outlook on the U.S. economy Company is
acquiring more funding for growth Company is acquiring more funding
for growth Punished a little bit for not reporting according to
NAREITs standards Punished a little bit for not reporting according
to NAREITs standards Why not buy more? Why not buy more? - Wait for
2004 fiscal year numbers - Wait for 2004 fiscal year numbers -
Investigate competitors and the possibility of investing in them -
Investigate competitors and the possibility of investing in
them