FIRST INDUSTRIAL REALTY TRUST INC

Previous wording

•the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the outbreak of COVID-19;

Current wording

•the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events;

Previous wording

The Company is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). As of March 31, 2024, we owned 421 industrial properties located in 19 states, containing an aggregate of approximately 66.7 million square feet of gross leasable area ("GLA"). Of the 421 properties owned on a consolidated basis, none of them are directly owned by the Company.

Current wording

The Company is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). As of June 30, 2024, we owned 424 industrial properties located in 19 states, containing an aggregate of approximately 67.9 million square feet of gross leasable area ("GLA"). Of the 424 properties owned on a consolidated basis, none of them are directly owned by the Company.

Previous wording

Summary of the Three Months Ended March 31, 2024

Current wording

Summary of the Six Months Ended June 30, 2024

Previous wording

Our operating results remained strong during the three months ended March 31, 2024. Our quarter end in-service occupancy was 95.5% and for new and renewal leases that commenced during the three months ended March 31, 2024, we increased cash rental rates by 44.8%. At March 31, 2024, we had four projects comprising 1.4 million square feet of GLA under development with an estimated investment of approximately $203 million.

Current wording

Our operating results were strong during the six months ended June 30, 2024. Our quarter end in-service occupancy was 95.3% and for new and renewal leases that commenced during the six months ended June 30, 2024, we increased cash rental rates by 44.2% (43.4% during the second quarter). At June 30, 2024, we had four projects comprising 0.8 million square feet of GLA under development with an estimated investment of approximately $129.4 million.

Previous wording

During the three months ended March 31, 2024, we completed the following significant real estate activities:

Current wording

During the six months ended June 30, 2024, we completed the following significant real estate activities:

Previous wording

•We sold nine industrial properties comprising approximately 0.4 million square feet of GLA for gross proceeds of $48.5 million.

Current wording

•We sold 10 industrial properties comprising approximately 0.5 million square feet of GLA for gross proceeds of $56.5 million.

Previous wording

Our significant financing activities during the three months ended March 31, 2024 were:

Current wording

Our significant financing activities during the six months ended June 30, 2024 were:

Previous wording

•We declared first quarter cash dividends of $0.37 per common share or Unit per quarter, an increase of 15.6% from the 2023 quarterly rate.

Current wording

•We declared first and second quarter cash dividends of $0.37 per common share or Unit per quarter, an increase of 15.6% from the 2023 quarterly rate.

Previous wording

•At March 31, 2024, we had $442.9 million available for additional borrowings under our Unsecured Credit Facility and cash and cash equivalents of $48.3 million, after excluding our Joint Venture partner's 6% share of cash and cash equivalents that we consolidate and report in our financial statements. Assuming the exercise of extension options in two of our bank loans, our next debt maturity is not until 2026.

Current wording

•At June 30, 2024, we had $450.5 million available for additional borrowings under our Unsecured Credit Facility and cash and cash equivalents and restricted cash of $46.0 million, after excluding our Joint Venture partner's 6% share of cash and cash equivalents that we consolidate and report in our financial statements. Assuming the exercise of extension options in two of our bank loans, our next debt maturity is not until 2026.

Previous wording

The tables below summarize our revenues, property expenses and depreciation and other amortization by various categories for the three months ended March 31, 2024 and 2023. Same store properties are properties owned prior to January 1, 2023 and held as an in-service property through March 31, 2024 and developments and redevelopments that were placed in service prior to January 1, 2023. Properties that 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%. Properties that are less than 75% occupied at the date of acquisition are placed in service as they reach the earlier of 90% occupancy or one year subsequent to acquisition. Developments, redevelopments and acquired income-producing land parcels for which our ultimate intent is to redevelop or develop on the land parcel are placed in service as they reach the earlier of 90% occupancy or one year subsequent to development/redevelopment construction completion. 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. Properties are moved from the same store classification to the redevelopment classification when capital expenditures for a project are estimated to exceed 25% of the undepreciated gross book value of the property. Acquired properties are properties that were acquired subsequent to December 31, 2022 and held as an operating property through March 31, 2024. Sold properties are properties that were sold subsequent to December 31, 2022. Developments and redevelopments (collectively referred to as "(Re)Developments") include (re)developments that were not: a) substantially complete 12 months prior to January 1, 2023; or b) stabilized prior to January 1, 2023. Other revenues are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, interest income, joint venture fees and other miscellaneous revenues. Other property expenses are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, vacant land expenses and other miscellaneous regional expenses.

Current wording

The tables below summarize our revenues, property expenses and depreciation and other amortization by various categories for the three and six months ended June 30, 2024 and 2023. Same store properties are properties owned prior to January 1, 2023 and held as an in-service property through June 30, 2024 and developments and redevelopments that were placed in service prior to January 1, 2023. Properties that 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%. Properties that are less than 75% occupied at the date of acquisition are placed in service as they reach the earlier of 90% occupancy or one year subsequent to acquisition. Developments, redevelopments and acquired income-producing land parcels for which our ultimate intent is to redevelop or develop on the land parcel are placed in service as they reach the earlier of 90% occupancy or one year subsequent to development/redevelopment construction completion. 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. Properties are moved from the same store classification to the redevelopment classification when capital expenditures for a project are estimated to exceed 25% of the undepreciated gross book value of the property. Acquired properties are properties that were acquired subsequent to December 31, 2022 and held as an operating property through June 30, 2024. Sold properties are properties that were sold subsequent to December 31, 2022. Developments and redevelopments (collectively referred to as "(Re)Developments") include (re)developments that were not: a) substantially complete 12 months prior to January 1, 2023; or b) stabilized prior to January 1, 2023. Other revenues are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, interest income, joint venture fees and other miscellaneous revenues. Other property expenses are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, vacant land expenses and other miscellaneous regional expenses.

Previous wording

Revenues from same store properties increased $6.7 million primarily due to increases in rental rates and tenant recoveries, offset by a decrease in occupancy. Revenues from acquired properties increased $0.9 million due to the four industrial properties acquired subsequent to December 31, 2022 totaling approximately 0.2 million square feet of GLA. Revenues from sold properties decreased $2.3 million due to the 20 industrial properties sold subsequent to December 31, 2022 totaling approximately 1.4 million square feet of GLA. Revenues from (re)developments increased $6.7 million due to an increase in occupancy and tenant recoveries. Revenues from other increased $1.0 million primarily due to revenue from income-producing land parcels for which our ultimate intent, for the majority of the land parcels, is to redevelop or develop in the future, offset by a decrease in joint venture fees and legal settlement proceeds.

Current wording

Revenues from same store properties increased $12.6 million primarily due to increases in rental rates and tenant recoveries, offset by a decrease in occupancy. Revenues from acquired properties increased $1.6 million due to the five industrial properties acquired subsequent to December 31, 2022 totaling approximately 0.2 million square feet of GLA. Revenues from sold properties decreased $3.5 million due to the 21 industrial properties sold subsequent to December 31, 2022 totaling approximately 1.5 million square feet of GLA. Revenues from (re)developments increased $13.2 million due to an increase in occupancy and tenant recoveries. Revenues from other increased $0.9 million primarily due to revenues from income-producing land parcels for which our ultimate intent is to redevelop or develop in the future, offset by a decrease in joint venture fees and legal settlement proceeds.

Previous wording

Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties increased $2.9 million primarily due to an increase in real estate tax expense and snow removal costs. Property expenses from acquired properties increased $0.2 million due to properties acquired subsequent to December 31, 2022. Property expenses from sold properties decreased $0.5 million due to properties sold subsequent to December 31, 2022. Property expenses from (re)developments increased $2.3 million primarily due to the substantial completion of developments. Property expenses from other remained relatively unchanged.

Current wording

Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties increased $4.9 million primarily due to an increase in real estate tax expense, snow removal costs and repair and maintenance expense. Property expenses from acquired properties increased $0.3 million due to properties acquired subsequent to December 31, 2022. Property expenses from sold properties decreased $1.2 million due to properties sold subsequent to December 31, 2022. Property expenses from (re)developments increased $4.4 million primarily due to the substantial completion of developments. Property expenses from other remained relatively unchanged.

Previous wording

General and administrative expense increased by $2.4 million, or 25.9%, due to an increase in equity compensation amortization expense primarily due to certain tenured employees that are retirement eligible, or will become retirement eligible prior to the normal vesting schedule, which requires the acceleration of expense.

Current wording

General and administrative expense increased by $2.5 million, or 13.4%, primarily due to an increase in equity compensation amortization expense due to certain tenured employees that are retirement eligible, or will become retirement eligible prior to the normal vesting schedule, which requires the acceleration of expense.

Previous wording

Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $0.3 million due to properties acquired subsequent to December 31, 2022. Depreciation and other amortization from sold properties decreased $0.4 million due to properties sold subsequent to December 31, 2022. Depreciation and other amortization from (re)developments increased $2.6 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other was not significant for either period.

Current wording

Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $0.5 million due to properties acquired subsequent to December 31, 2022. Depreciation and other amortization from sold properties decreased $0.8 million due to properties sold subsequent to December 31, 2022. Depreciation and other amortization from (re)developments increased $5.1 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other was not significant for either period.

Previous wording

For the three months ended March 31, 2024, we recognized $30.9 million of gain on sale of real estate related to the sale of nine industrial properties comprised of approximately 0.4 million square feet of GLA.

Current wording

For the six months ended June 30, 2024, we recognized $37.0 million of gain on sale of real estate related to the sale of 10 industrial properties comprised of approximately 0.5 million square feet of GLA. For the six months ended June 30, 2023, we recognized $13.1 million of gain on sale of real estate related to the sale of one industrial property comprised of approximately 0.2 million square feet of GLA and one land parcel.

Previous wording

Equity in income of joint venture for the three months ended March 31, 2024 was $1.4 million which was primarily comprised of our share of rental income recognized by the Joint Venture. Equity in income of joint venture for the three months ended March 31, 2023 was $27.6 million and included our pro-rata share of gain from the sale of real estate by the Joint Venture of $19.6 million as well as an incentive fee of $8.0 million we earned from the Joint Venture. The amounts for both periods include our partner's 6% interest in the Joint Venture that we consolidate and report within our financial statements.

Current wording

Equity in income of joint venture for the six months ended June 30, 2024 was $2.6 million which was primarily comprised of our pro-rata share of rental income recognized by the Joint Venture. Equity in income of joint venture for the six months ended June 30, 2023 was $29.1 million and included our pro-rata share of gain from the sale of real estate by the Joint Venture as well as incentive fees we earned from the Joint Venture. The amounts for both periods include our partner's 6% interest in the Joint Venture that we consolidate and report within our financial statements.

Previous wording

Income tax expense decreased by $6.0 million, or 83.5%, primarily due to decreases in our share of taxable gains and incentive fees from the Joint Venture, partially offset by an increase in our share of equity in income from the Joint Venture related to an increase in rental income recognized by the Joint Venture.

Current wording

Income tax provision decreased $6.0 million, or 79.0%, primarily due to decreases in our pro-rata share of taxable gain and incentive fees from the Joint Venture, partially offset by an increase in our pro-rata share of rental income recognized by the Joint Venture.

Previous wording

Our net income was $70.5 million and $60.8 million for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Our net income was $52.9 million and $56.2 million for the three months ended June 30, 2024 and 2023, respectively.

Previous wording

For the three months ended March 31, 2024 and 2023, the average daily occupancy rate of our same store properties was 96.8% and 98.6%, respectively.

Current wording

For the three months ended June 30, 2024 and 2023, the average daily occupancy rate of our same store properties was 97.0% and 97.8%, respectively.

Previous wording

Joint Venture development services expense, which relates to expenses paid to a third party to assist with the development of properties in the Joint Venture, decreased by $0.4 million, or 45.7%, due to a decrease in development costs incurred by our Joint Venture during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

Current wording

Joint Venture development services expense, which relates to expenses paid to a third party to assist with the development of properties in the Joint Venture, decreased by $1.0 million, or 72.5%, due to a decrease in development costs incurred by our Joint Venture during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023.

Previous wording

Interest expense increased by $4.8 million, or 29.6%, due to an increase in the weighted average debt balance outstanding for the three months ended March 31, 2024 ($2,264.8 million) as compared to the three months ended March 31, 2023 ($2,069.5 million), an increase in the weighted average interest rate for the three months ended March 31, 2024 (4.18%) as compared to the three months ended March 31, 2023 (3.94%) and a decrease in capitalized interest of $1.3 million during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

Current wording

Interest expense increased by $3.2 million, or 18.0%, due to a decrease in capitalized interest of $1.7 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, an increase in the weighted average debt balance outstanding for the three months ended June 30, 2024 ($2,247.7 million) as compared to the three months ended June 30, 2023 ($2,161.7 million) and an increase in the weighted average interest rate for the three months ended June 30, 2024 (4.16%) as compared to the three months ended June 30, 2023 (4.03%).

Previous wording

The following table provides a summary of our commenced leases for the three months ended March 31, 2024. The table does not include month-to-month leases or leases with terms less than twelve months.

Current wording

The following table provides a summary of our commenced leases for the three and six months ended June 30, 2024. The table does not include month-to-month leases or leases with terms less than twelve months.

Previous wording

The following table provides a summary of our leases that commenced during the three months ended March 31, 2024, which included rent concessions during the lease term.

Current wording

The following table provides a summary of our leases that commenced during the three and six months ended June 30, 2024, which included rent concessions during the lease term.

Previous wording

At March 31, 2024, our cash and cash equivalents was approximately $48.3 million, after excluding our Joint Venture partner's share of cash and cash equivalents that we consolidate and report in our financial statements. We also had $442.9 million available for additional borrowings under our Unsecured Credit Facility as of March 31, 2024.

Current wording

At June 30, 2024, our cash and cash equivalents and restricted cash was approximately $46.0 million, after excluding our Joint Venture partner's share of cash and cash equivalents that we consolidate and report in our financial statements. We also had $450.5 million available for additional borrowings under our Unsecured Credit Facility as of June 30, 2024.

Previous wording

As of April 19, 2024, we had approximately $398.9 million available for additional borrowings under our Unsecured Credit Facility.

Current wording

As of July 18, 2024, we had approximately $498.5 million available for additional borrowings under our Unsecured Credit Facility.

Previous wording

Our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB/Stable, respectively. In the event of a downgrade, we believe we would continue to have access to sufficient capital. However, our cost of borrowing would increase and our ability to access certain financial markets may be limited.

Current wording

Our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB/Positive, respectively. In the event of a downgrade, we believe we would continue to have access to sufficient capital. However, our cost of borrowing would increase and our ability to access certain financial markets may be limited.

Previous wording

The following table summarizes our cash flow activity for the Company for the three months ended March 31, 2024 and 2023:

Current wording

The following table summarizes our cash flow activity for the Company for the six months ended June 30, 2024 and 2023:

Previous wording

The following table summarizes our cash flow activity for the Operating Partnership for the three months ended March 31, 2024 and 2023:

Current wording

The following table summarizes our cash flow activity for the Operating Partnership for the six months ended June 30, 2024 and 2023:

Previous wording

Changes in cash flow for the three months ended March 31, 2024, compared to the prior year comparable period are described as follows:

Current wording

Changes in cash flow for the six months ended June 30, 2024, compared to the prior year comparable period are described as follows:

Previous wording

Operating Activities: Cash provided by operating activities decreased $7.8 million, primarily due to the following:

Current wording

Operating Activities: Cash provided by operating activities increased $14.1 million, primarily due to the following:

Previous wording

◦increase in net operating income ("NOI") from same store properties, acquired properties and recently developed properties of $8.8 million offset by a decrease in NOI due to the disposition of real estate of $1.8 million; and

Current wording

•increase in net operating income ("NOI") from same store properties, acquired properties and recently developed properties of $17.7 million offset by a decrease in NOI due to the disposition of real estate of $2.3 million; and

Previous wording

◦decrease of $6.0 million in income tax provision.

Current wording

•decrease of $6.0 million in income tax provision; offset by:

Previous wording

•decrease in distributions from our Joint Venture of $4.5 million in 2024 as compared to 2023;

Current wording

◦decrease in distributions from our Joint Venture of $4.2 million in 2024 as compared to 2023; and

Previous wording

•increase of $4.8 million in interest expense; and

Current wording

◦increase of $8.0 million in interest expense.

Previous wording

Investing Activities: Cash used in investing activities decreased $85.1 million, primarily due to the following:

Current wording

Investing Activities: Cash used in investing activities decreased $179.2 million, primarily due to the following:

Previous wording

•decrease of $31.5 million related to the acquisition, development and investment in real estate attributable to fewer acquisitions and a reduction in expenditures related to developments under construction during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023; and

Current wording

•decrease of $134.4 million related to the acquisition, development and investment in real estate attributable to fewer acquisitions and a reduction in expenditures related to developments under construction during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023;

Previous wording

•increase of $47.8 million in net proceeds received from the disposition of real estate in 2024 as compared to 2023.

Current wording

•increase of $39.1 million in net proceeds received from the disposition of real estate in 2024 as compared to 2023; and

Previous wording

Financing Activities: Cash used in financing activities decreased $1.2 million, primarily due to the following:

Current wording

Financing Activities: Cash used in financing activities was $95.7 million for the six months ended June 30, 2024 compared to $18.0 million provided by financing activities for the six months ended June 30, 2023, resulting in a decrease of cash provided by financing activities of $113.6 million, primarily due to the following:

Previous wording

◦decrease in net borrowings under our Unsecured Credit Facility of $7.0 million in 2024 as compared to 2023; and

Current wording

•decrease in net borrowings under our Unsecured Credit Facility of $115.0 million in 2024 as compared to 2023; and

Previous wording

◦increase in dividend and unit distributions of $3.5 million due to the Company increasing the dividend rate in 2024 as well as an increase in common shares and units outstanding.

Current wording

•increase in dividend and unit distributions of $10.4 million due to the Company increasing the dividend rate in 2024 as well as an increase in common shares and units outstanding; offset by: