First Industrial Realty Trust, Inc. (NYSE:FR) Q3 2023 Earnings Conference Call October 19, 2023 11:00 AM ET Company Participants Art Harmon - Vice President, Investor Relations & Marketing Peter Baccile - President & Chief Executive Officer Scott Musil - Chief Financial Officer Peter Schultz - Executive Vice President Jojo Yap - Chief Investment Officer Chris Schneider - Senior Vice President, Operations Conference Call Participants Rob Stevenson - Janney Ki Bin Kim - Truist Nicholas Yulico - Scotiabank Cra ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ Form 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13102 (First Industrial Realty Trust, Inc.) 333-21873 (First Industrial, ...

MEDIA RELEASE • Cash Rental Rates Up 74.1% in 2Q23 • Cash Rental Rate Increase of 63% on Leases Signed To-Date Commencing in 2023 • Cash Same Store NOI Growth of 10.8% in 2Q23; Occupancy of 97.7% at Quarter-End • Renewed Largest 2024 Lease Rollover of 700,000 Square Feet • Signed 673,000 Square Feet of New Leases for Speculative Developments in the Second Quarter and Third Quarter To-Date Inclusive of Joint Venture • 2023 FFO Guidance Increased $0.01 at Midpoint to $2.35 to $2.43 Per Share/Unit Which Exclud ...

First Industrial Realty Trust, Inc. (NYSE:FR) Q2 2023 Earnings Conference Call July 20, 2023 11:00 AM ET Company Participants Art Harmon - Vice President, Investor Relations & Marketing Peter Baccile - President & Chief Executive Officer Scott Musil - Chief Financial Officer Jojo Yap - Chief Investment Officer Peter Schultz - Executive Vice President Chris Schneider - Senior Vice President, Operations Conference Call Participants Rob Stevenson - Janney Michael Carroll - RBC Capital Markets Craig Mailman - C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ Form 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13102 (First Industrial Realty Trust, Inc.) 333-21873 (First Industrial, L.P. ...

First Industrial Realty Trust, Inc. (NYSE:FR) Q1 2023 Earnings Conference Call April 20, 2023 11:00 AM ET Company Participants Arthur Harmon - VP, IR & Marketing Peter Baccile - President, CEO & Director Scott Musil - CFO, SVP, Treasurer & Assistant Secretary Peter Schultz - EVP Johannson Yap - Co-Founder, CIO & EVP, West Region Christopher Schneider - SVP, Operations & Chief Information Officer Conference Call Participants Ki Bin Kim - Truist Securities Robert Stevenson - Janney Montgomery Scott Todd Thom ...

[PART I: FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This section presents the company's financial information, including statements, management's discussion, market risk disclosures, and controls. [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, detailing the company's financial position, performance, and key activities. First Industrial Realty Trust, Inc. - Selected Financials (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $149,423 | $125,513 | +19.0% | | **Net Income** | $60,775 | $37,123 | +63.7% | | **Net Income to Common Stockholders** | $55,967 | $36,258 | +54.4% | | **Diluted EPS** | $0.42 | $0.27 | +55.6% | | **Net Cash from Operating Activities** | $70,318 | $59,898 | +17.4% | First Industrial Realty Trust, Inc. - Balance Sheet Summary | Account | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | Net Investment in Real Estate | $4,455,233 | $4,421,559 | | Total Assets | $4,950,852 | $4,954,322 | | Total Liabilities | $2,422,887 | $2,424,023 | | Total Equity | $2,527,965 | $2,530,299 | - As of March 31, 2023, the company owned **431 industrial properties** totaling approximately **65.7 million square feet** of gross leasable area (GLA) across 18 states[60](index=60&type=chunk) - During Q1 2023, the company acquired one industrial property for a total purchase price of **$6.0 million**, excluding transaction costs[66](index=66&type=chunk) - A joint venture in which the company holds a **43% interest** sold approximately **31 acres of land**, resulting in a gain on sale of **$40.0 million** for the JV, with the company's economic share of the gain being **$19.6 million** and an additional incentive fee of **$8.0 million** earned[74](index=74&type=chunk)[77](index=77&type=chunk) - As of March 31, 2023, the company had **11 development projects** under construction, totaling **3.6 million square feet** with an estimated remaining funding commitment of approximately **$258.9 million**[97](index=97&type=chunk) - Subsequent to the quarter end, the company acquired one industrial property for **$5.2 million** and sold one land parcel for **$1.1 million**[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strong Q1 2023 operating performance, business strategies, financial results, and liquidity position. - Key business strategies include: - **Internal Growth**: Increasing revenues through higher rental rates on new/renewed leases and controlling expenses - **External Growth**: Developing and acquiring industrial properties, with a focus on 15 key logistics markets - **Portfolio Enhancement**: Upgrading the portfolio by selling assets with lower growth prospects and redeploying capital into higher-growth assets[110](index=110&type=chunk)[112](index=112&type=chunk) - Q1 2023 operational highlights include: - In-service occupancy was **98.7%** at quarter-end - Increased cash rental rates by **58.3%** on new and renewal leases commenced during the quarter - A joint venture sold **31 acres of land** for **$50 million**, generating a **$17.3 million** pro-rata share of the gain and a **$7.1 million** incentive fee for the company - The quarterly dividend was increased by **8.5%** to **$0.32 per share**[113](index=113&type=chunk)[114](index=114&type=chunk) Comparison of Revenues by Category (in thousands) | Category | Q1 2023 | Q1 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Same Store Properties | $128,614 | $119,732 | $8,882 | 7.4% | | Acquired Properties | $2,497 | $134 | $2,363 | 1,763.4% | | (Re)Developments | $13,264 | $734 | $12,530 | 1,707.1% | | **Total Revenues** | **$149,423** | **$125,513** | **$23,910** | **19.0%** | - Interest expense increased by **$6.5 million (67.3%)** year-over-year, driven by a higher average debt balance (**$2.07 billion** vs **$1.69 billion**) and a higher weighted average interest rate (**3.94%** vs **3.29%**)[124](index=124&type=chunk) Q1 2023 Leasing Activity Summary | Lease Type | Leases Commenced | Square Feet (in 000's) | Straight Line Rent Growth | Weighted Avg. Term (Yrs) | | :--- | :--- | :--- | :--- | :--- | | New Leases | 24 | 1,194 | 121.1% | 5.5 | | Renewal Leases | 35 | 2,441 | 65.5% | 5.5 | | **Total / Weighted Avg.** | **65** | **3,954** | **85.3%** | **5.6** | - As of March 31, 2023, the company had approximately **$69.8 million** in cash and **$590.1 million** available for borrowing under its Unsecured Credit Facility, indicating strong liquidity[132](index=132&type=chunk) Funds From Operations (FFO) Reconciliation (in thousands) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income Available to Common Stockholders | $55,967 | $36,258 | | Depreciation and Other Amortization of Real Estate | $39,527 | $33,680 | | Gain on Sale of Real Estate from JV | ($27,632) | $0 | | Other Adjustments | $9,753 | ($792) | | **FFO Available to Common Stockholders** | **$77,615** | **$69,146** | - Cash-basis Same Store Net Operating Income (SS NOI) grew **8.1%** in Q1 2023 compared to Q1 2022, increasing from **$86.2 million** to **$93.2 million**[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's market risk exposure, primarily from interest rate fluctuations, and its use of derivatives to mitigate such risks. - As of March 31, 2023, **92.5% ($1.93 billion)** of the company's total debt was fixed-rate, including variable-rate debt effectively fixed through swaps[145](index=145&type=chunk) - The company utilizes interest rate swaps with a total notional value of **$925.0 million** to manage interest rate risk on its Unsecured Term Loans, effectively converting them to fixed-rate obligations[91](index=91&type=chunk)[145](index=145&type=chunk) - A hypothetical **10%** increase in LIBOR and SOFR rates would have increased interest expense by approximately **$0.2 million** for Q1 2023, demonstrating limited exposure on its variable-rate debt[147](index=147&type=chunk) - The company is preparing for the cessation of LIBOR after June 30, 2023, and plans to modify its LIBOR-indexed debt agreements and swaps, not anticipating a material impact from the transition[144](index=144&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting. - Management concluded that the disclosure controls and procedures for both the Company (First Industrial Realty Trust, Inc.) and the Operating Partnership (First Industrial, L.P.) were effective as of the end of the period covered by the report[162](index=162&type=chunk)[164](index=164&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of 2023 that have materially affected, or are reasonably likely to materially affect, internal controls for either entity[163](index=163&type=chunk)[165](index=165&type=chunk) [PART II: OTHER INFORMATION](index=44&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, risk factors, equity sales, defaults, and exhibits. [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period. - None reported[167](index=167&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors previously disclosed in the 2022 Annual Report on Form 10-K. - No material changes were reported to the risk factors disclosed in the 2022 Annual Report on Form 10-K[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or specific use of proceeds. - None reported[169](index=169&type=chunk) [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities. - None reported[169](index=169&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed under this item. - None reported[169](index=169&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and interactive data files. - The exhibits filed with the report are listed in the Exhibit Index, including certifications by the Principal Executive Officer and Principal Financial Officer[169](index=169&type=chunk)[171](index=171&type=chunk)

PART I [Business](index=7&type=section&id=Item%201.%20Business) First Industrial Realty Trust, Inc. is a REIT managing 416 industrial properties (62.9 million sq. ft.) as of 2022, focused on growth and portfolio enhancement - The company is a fully integrated real estate company specializing in industrial properties, operating as a **REIT**[30](index=30&type=chunk) Portfolio Overview as of December 31, 2022 | Metric | Value | | :--- | :--- | | In-Service Properties | 416 | | Gross Leasable Area (GLA) | 62.9 million sq. ft. | | States of Operation | 18 | | Ownership in Operating Partnership | ~97.7% | - The company's growth strategy is multifaceted, focusing on **internal growth**, **external growth** in 15 target markets, and **portfolio enhancement**[33](index=33&type=chunk) - Financing relies on property sales, unsecured debt, term loans, a **$750.0 million unsecured credit facility**, and potential equity issuances[34](index=34&type=chunk) - As of December 31, 2022, the company had **157 full-time employees** with an average tenure of approximately 12 years, and its Board of Directors is **43% diverse**[41](index=41&type=chunk)[42](index=42&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse business, financing, organizational, tax, and general risks, including economic downturns, geographic concentration, and cybersecurity threats - Business risks include real estate value fluctuations and significant geographic concentration, with **California (23.6%)** and **Pennsylvania (10.7%)** of consolidated net operating income as of December 31, 2022[47](index=47&type=chunk)[49](index=49&type=chunk) - Development projects pose risks such as financing issues, cost overruns, construction delays, and failure to achieve budgeted leasing levels[57](index=57&type=chunk) - Financing and capital risks include financial market disruptions, rising interest rates impacting cash flow, and the necessity to comply with debt financial covenants[72](index=72&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) - The company is transitioning its **LIBOR-indexed debt** (Unsecured Credit Facility, **$200.0 million term loan**) to **SOFR**, with modifications planned before June 2023[75](index=75&type=chunk) - Tax risks include potential failure to qualify as a **REIT**, leading to corporate income tax and a **100% penalty tax** on prohibited property sales gains[97](index=97&type=chunk)[99](index=99&type=chunk) - General risks encompass cybersecurity attacks that could compromise information and disrupt operations, and potential adverse impacts from future pandemics[102](index=102&type=chunk)[104](index=104&type=chunk) [Unresolved SEC Comments](index=24&type=section&id=Item%201B.%20Unresolved%20SEC%20Comments) The company has no unresolved comments from the Securities and Exchange Commission - None [Properties](index=25&type=section&id=Item%202.%20Properties) As of December 31, 2022, the company owned 416 industrial properties (62.9 million sq. ft.) with **98.8% occupancy**, actively managing its portfolio and achieving strong leasing growth In-Service Property Summary by Type (as of Dec 31, 2022) | Property Type | GLA (in thousands sq. ft.) | Number of Properties | Occupancy | | :--- | :--- | :--- | :--- | | Bulk Warehouse | 50,350 | 186 | 98.7% | | Regional Warehouse | 7,923 | 125 | 99.2% | | Light Industrial | 4,626 | 105 | 99.2% | | **Total** | **62,899** | **416** | **98.8%** | - In 2022, **10 development properties** (**4.1 million sq. ft.**) were placed into service at a cost of **$447.8 million**, achieving a **6.6% capitalization rate**[121](index=121&type=chunk) - As of year-end 2022, **14 development projects** (**3.6 million sq. ft.**) were under construction with an estimated total investment of **$556.2 million**[121](index=121&type=chunk) - In 2022, **11 industrial properties** and **134 acres of land** were acquired for approximately **$299.1 million**[122](index=122&type=chunk) - In 2022, **nine industrial properties** (**2.2 million sq. ft.**) and one land parcel were sold for gross proceeds of approximately **$178.3 million**[123](index=123&type=chunk) Leasing Activity Summary (Year Ended Dec 31, 2022) | Lease Type | Leases Commenced | Square Feet (in thousands) | Straight Line Rent Growth | Weighted Avg. Term (Years) | | :--- | :--- | :--- | :--- | :--- | | New Leases | 97 | 2,921 | 48.9% | 6.1 | | Renewal Leases | 120 | 5,914 | 40.3% | 5.0 | | **Total / Weighted Avg.** | **241** | **13,286** | **43.3%** | **6.8** | [Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) Ordinary course legal proceedings are not expected to materially impact the company's financial results, position, or liquidity - Legal proceedings in the ordinary course of business are not expected to have a **material impact**[131](index=131&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None PART II [Market for Registrant's Common Equity and Related Matters](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%20%2F%20Partners%27%20Capital%2C%20Related%20Stockholder%20%2F%20Unitholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades as "FR" on the NYSE, paid a **$0.295 quarterly dividend** in 2022, and outperformed key indices over five years 2022 Quarterly Stock Price and Dividends | Quarter Ended | Closing High | Closing Low | Dividend Declared | | :--- | :--- | :--- | :--- | | Dec 31, 2022 | $50.68 | $43.82 | $0.295 | | Sep 30, 2022 | $55.62 | $44.14 | $0.295 | | Jun 30, 2022 | $65.32 | $46.13 | $0.295 | | Mar 31, 2022 | $65.01 | $56.31 | $0.295 | - The company must distribute at least **90% of its REIT taxable income** to comply with IRS requirements, influencing its dividend policy[138](index=138&type=chunk) 5-Year Performance Graph Comparison | Index ($100 Invested on 12/31/17) | Value at 12/31/22 | | :--- | :--- | | First Industrial Realty Trust, Inc. | $173.34 | | S&P 500 | $156.89 | | FTSE NAREIT Equity REITs | $119.78 | [Reserved](index=33&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, the company achieved strong operating performance with **98.8% occupancy**, **26.7% cash rental rate growth**, **$381.6 million net income**, and **$410.9 million operating cash flow** - Key operational achievements in 2022 include **98.8% year-end in-service occupancy** (a **70 basis point increase**) and a **26.7% increase in cash rental rates** on new and renewal leases[148](index=148&type=chunk) - A joint venture land sale in Phoenix generated **$255.3 million gross proceeds**, with the company's pro-rata gain share of **$74.0 million** and an incentive fee of **$27.6 million**[149](index=149&type=chunk) - Significant financing activities included paying off **$68.0 million in mortgages**, increasing unencumbered real estate to **99.3%**, and refinancing a **$260.0 million term loan** with a new **$425.0 million term loan**[150](index=150&type=chunk) Comparison of Operating Results (in thousands) | Item | 2022 (in thousands) | 2021 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $539,929 | $476,290 | 13.4% | | Total Property Expenses | $143,663 | $131,300 | 9.4% | | Gain on Sale of Real Estate | $128,268 | $150,310 | (14.7)% | | Equity in Income of Joint Ventures | $114,942 | $(161) | N/A | | **Net Income** | **$381,612** | **$277,171** | **37.7%** | Cash Flow Summary (in thousands) | Cash Flow Activity | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $410,943 | $266,895 | | Net cash used in investing activities | $(629,108) | $(416,823) | | Net cash provided by financing activities | $304,503 | $9,050 | - As of December 31, 2022, **93.1% of total debt was fixed rate**, with the remaining **6.9% being variable rate**[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the market risk discussion in Item 7, detailing interest rate exposure and risk management strategies - The response to this item is included in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations"[200](index=200&type=chunk) [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section directs the reader to Item 15 for the company's complete financial statements and supplementary data - The full financial statements and schedules are located in **Item 15** of the report[201](index=201&type=chunk) [Changes in and Disagreements with Accountants](index=46&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting principles or financial disclosure - None [Controls and Procedures](index=47&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and auditors concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no material Q4 changes - The principal executive and financial officers concluded that disclosure controls and procedures for both the Company and Operating Partnership were **effective** as of period-end[205](index=205&type=chunk)[212](index=212&type=chunk) - Management concluded that internal control over financial reporting for both entities was **effective** as of December 31, 2022, based on the **COSO framework**[207](index=207&type=chunk)[214](index=214&type=chunk) - No material changes in internal control over financial reporting occurred during the **fourth quarter of 2022**[209](index=209&type=chunk)[216](index=216&type=chunk) [Other Information](index=48&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=48&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable PART III [Directors, Executive Officers, Compensation, Security Ownership, and Accountant Fees](index=49&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for Items 10-14, covering directors, executive compensation, security ownership, and accountant fees, is incorporated by reference from the definitive proxy statement - Information for **Items 10, 11, 12, 13, and 14** is incorporated by reference from the Company's definitive proxy statement[220](index=220&type=chunk) PART IV [Exhibits and Financial Statement Schedule](index=49&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statements%20and%20Financial%20Statement%20Schedule) This section provides an index to the financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section contains the index to the financial statements, schedules, and exhibits included in the report[222](index=222&type=chunk) [Form 10-K Summary](index=52&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable Financial Statements and Notes [Reports of Independent Registered Public Accounting Firm](index=54&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on financial statements and internal controls, identifying Purchase Price Allocation as a Critical Audit Matter - PricewaterhouseCoopers LLP provided an **unqualified opinion** on the consolidated financial statements and the **effectiveness of internal control** over financial reporting for both entities[234](index=234&type=chunk)[252](index=252&type=chunk) - "Purchase Price Allocation" was identified as a **Critical Audit Matter**, emphasizing significant management judgment in determining fair value of acquired real estate assets, involving assumptions on land comparables, discount rates, and market rent[243](index=243&type=chunk)[244](index=244&type=chunk) [Consolidated Financial Statements](index=63&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show **total assets grew to $4.95 billion** in 2022, with **net income available to common stockholders at $359.1 million** or **$2.72 per diluted share** Consolidated Balance Sheet Highlights (Company) | (In thousands) | Dec 31, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net Investment in Real Estate | $4,421,559 | $3,778,148 | | Total Assets | $4,954,322 | $4,179,098 | | Total Liabilities | $2,424,023 | $1,930,726 | | Total Equity | $2,530,299 | $2,248,372 | Consolidated Statement of Operations Highlights (Company) | (In thousands, except per share) | Year Ended Dec 31, 2022 (in thousands) | Year Ended Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $539,929 | $476,290 | | Net Income | $381,612 | $277,171 | | Net Income Available to Common Stockholders | $359,134 | $270,997 | | Diluted Earnings Per Share | $2.72 | $2.09 | [Notes to Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, **$2.08 billion indebtedness**, interest rate swaps, a **43% joint venture interest** with a significant land sale, and equity compensation - Real estate acquisitions are typically accounted for as **asset acquisitions**, capitalizing transaction costs when fair value is concentrated in a single asset[315](index=315&type=chunk) Indebtedness Summary (as of Dec 31, 2022) | Debt Type | Gross Balance (in thousands) | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Mortgage Loans Payable | $10,299 | 4.17% | | Senior Unsecured Notes | $998,571 | 4.38% (calculated) | | Unsecured Term Loans | $925,000 | 3.59% (calculated) | | Unsecured Credit Facility | $143,000 | 5.16% | | **Total** | **$2,076,870** | | - The company holds a **43% interest** in a joint venture, accounted for by the equity method, which sold **391 acres of land** in 2022, resulting in a **$171.7 million gain** for the JV and an **$84.1 million economic share** for the company[361](index=361&type=chunk)[364](index=364&type=chunk) - The company utilized an **"at-the-market" (ATM) offering program** in 2022, issuing **218,230 shares** and raising **$12.8 million in net proceeds**[373](index=373&type=chunk) - The company uses **interest rate swaps** to manage variable-rate term loan exposure, with **$925 million notional value** designated as cash flow hedges at year-end 2022[398](index=398&type=chunk)[399](index=399&type=chunk)[400](index=400&type=chunk)

Financial Data and Key Metrics Changes - The company reported NAREIT funds from operations (FFO) of $0.60 per fully diluted share for Q4 2022, compared to $0.52 per share in Q4 2021, and for the full year, FFO per share was $2.28 versus $1.97 in 2021 [27] - Cash same-store NOI growth for the full year was a record 10.1%, with Q4 growth at 7.6%, driven by higher occupancy and rental rate increases [10][28] - The company declared a dividend of $0.32 per share for Q1 2023, an increase of 8.5% from the prior rate, with a payout ratio of approximately 70% based on anticipated AFFO for 2023 [8] Business Line Data and Key Metrics Changes - The company placed 4.1 million square feet of development in service during the year, all 100% leased at a cash yield of 6.6% [24] - Leasing activity in Q4 included approximately 2.1 million square feet of leases commenced, with tenant retention by square footage at 81% [11][28] - The company signed leases that commenced in 2023 at a cash rental rate increase of 33%, ahead of the previous year's pace [22] Market Data and Key Metrics Changes - Industrial vacancy was reported at 3% at year-end, with net absorption of 412 million square feet versus completions of 370 million for the full year [21] - The company anticipates cash rental rate changes for 2023 to be between 40% to 50% [22] - The company expects continued demand in key markets, particularly in high barrier markets on the East and West Coast [35] Company Strategy and Development Direction - The company is focused on maintaining strong fundamentals in the industrial real estate market, with plans for new developments in high-demand areas [32] - The company is managing its portfolio actively, with sales guidance for 2023 set between $50 million to $150 million [25] - The company is prepared for economic and geopolitical challenges while aiming to outperform through the cycle [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the industrial real estate market, citing strong fundamentals and continued demand despite potential economic headwinds [32] - The company is monitoring the economic landscape closely and is prepared for both challenges and opportunities [32] - Management noted that while there is a normalization of demand, the overall market remains strong with solid interest from tenants [72] Other Important Information - The company has a development pipeline of approximately $225 million, funded by excess cash flow after dividends [75] - The company has a strong liquidity position with $600 million available on its line of credit and no maturities until 2026 [94] - The company is seeing a decline in land values in certain markets, with adjustments made to reflect increased return requirements [106][119] Q&A Session Summary Question: Can you provide commentary on the development pipeline for '23? - Management indicated that development starts will depend on lease-up performance, with expectations for additional starts in high barrier markets [35] Question: How much pressure are you seeing on the same-store expense side? - Management noted minimal pressure on expenses, with most being recoverable under net leases [53][54] Question: What are the expectations for market rent growth across the portfolio? - Management expects market rent growth of 5% to 10% nationally, with higher growth in coastal markets [96] Question: Can you clarify the impact of ADESA on rental income? - ADESA accounted for 1.8% of rental income, and management believes the basis in land and current rents are below market [29][44] Question: What is the anticipated impact of rising interest rates on operations? - Management acknowledged the impact of rising interest rates on their line of credit and overall financing costs [89] Question: How is leasing progressing for newly completed projects? - Management reported active discussions and proposals for leasing new projects, with encouraging interest from various sectors [68]

First Industrial Realty Trust, Inc. (NYSE:FR) Q3 2022 Earnings Conference Call October 20, 2022 11:00 AM ET Company Participants Arthur Harmon - Vice President, Investor Relations and Marketing Peter Baccile - President and Chief Executive Officer Scott Musil - Chief Financial Officer Robert Walter - Senior Vice President, Capital Markets and Asset Management Johannson Yap - Chief Investment Officer Peter Schultz - Executive Vice President Christopher Schneider - Senior Vice President, Operations and Chief ...