First Industrial Realty Trust(US:FR)2020-03-04 22:56Company Overview and Strategy - The company experienced a 13.9% increase in cash rental rates in 2019, with an estimated growth of 10% to 14% projected for 2020[3] - Occupancy rate was 97.6% with Cash Same Store NOI growing 3.1% in 2019, and a projected growth of 4.75% at the guidance midpoint for 2020[3] - The company's strategy focuses on generating long-term cash flow growth through increasing rents, rental rate bumps, development, lower capital expenditure, and sustaining occupancy[4] - The company focuses on US-only, top logistics markets[6] Portfolio Composition and Transformation - As of December 31, 2019, the company had a total market capitalization of $6.9 billion, with 450 industrial buildings comprising a total portfolio size of 63.4 million square feet[10] - The portfolio is primarily composed of bulk warehouse (77%), regional warehouse (11%), light industrial (10%), and R&D/Flex (2%) based on rental income[11] - Since 2010, the company's portfolio transformation involved $2.191 billion in total investments and $1.563 billion in total dispositions, resulting in a net increase of $3.75 billion or 62 million square feet[13] Financial Performance - The company increased its First Quarter 2020 dividend to $0.25 per share, an 8.7% increase aligned with forecasted growth in cash flow[3] - The company's development platform has created approximately $480 million of value in the last four years, translating to approximately $3.75 per share of NAV[28] Industrial Landscape and Development - Every $1 billion of e-commerce sales requires 1.25 million square feet of industrial space[25] - In 2019, net absorption was 183 million square feet versus completions of 224 million square feet, marking the first year since 2009 where completions exceeded net absorption[26]