FIRST INDUSTRIAL REALTY TRUST INC
For the period ended Sep 30, 2024. Filed Oct 18, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 18, 2024
FR$53.76-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-18.
0000921825-24-000082
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-18.
0000921825-24-000096
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 141 current paragraphs.
79 unchanged; 54 reworded; 8 added; 10 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Summary of the Nine Months Ended September 30, 2024
Current report
Comparison of Nine Months Ended September 30, 2024 to Nine Months Ended September 30, 2023
Current report
General and administrative expense increased by $3.3 million, or 12.1%, primarily driven by higher equity compensation expense. This increase is due to the accelerated recognition of expense for certain tenured employees who are, or will soon become, retirement eligible prior to the standard vesting schedule. Additionally, the increase was influenced by a modest increase in overall compensation and a slight decrease in the amount of compensation capitalized to development activities.
Current report
General and administrative expense increased by $0.8 million, or 9.2%, due primarily to a modest increase in overall compensation and a slight decrease in the amount of compensation capitalized to development activities.
Current report
Income tax provision increased $3.0 million, or 891.3%, primarily due to an increase in income tax expense associated with gains on the sale of real estate.
Current report
As of October 18, 2024, we had approximately $483.5 million available for additional borrowings under our Unsecured Credit Facility.
Current report
•increase in accounts payable, accrued expenses, other liabilities, rents received in advance and security deposits due to timing of cash payment; offset by:
Current report
Financing Activities: Cash used in financing activities increased $188.4 million ($188.5 million for the Operating Partnership), primarily due to the following:
Removed paragraphs (10)
Previous report
Summary of the Six Months Ended June 30, 2024
Previous report
In July 2024, we executed two additional leases covering 0.5 million square feet of GLA at development properties located in the Inland Empire and Denver markets.
Previous report
Comparison of Six Months Ended June 30, 2024 to Six Months Ended June 30, 2023
Previous report
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 report
General and administrative expense remained relatively unchanged.
Previous report
Income tax provision remained relatively unchanged.
Previous report
As of July 18, 2024, we had approximately $498.5 million available for additional borrowings under our Unsecured Credit Facility.
Previous report
•decrease of $6.0 million in income tax provision; offset by:
Previous report
◦increase of $8.0 million in interest expense.
Previous report
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:
Reworded paragraphs (54)
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 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.
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 September 30, 2024, we owned 421 industrial properties located in 19 states, containing an aggregate of approximately 67.7 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.
Previous 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.
Current wording
Our operating results were strong during the nine months ended September 30, 2024. In-service occupancy at quarter end was 95.0%, and for new and renewal leases that commenced during the nine months ended September 30, 2024, we achieved a 52.9% increase in cash rental rates (66.8% in the third quarter). As of September 30, 2024, we had five projects under development, totaling 1.3 million square feet of GLA, with an aggregate estimated investment of approximately $183.4 million.
Previous wording
During the six months ended June 30, 2024, we completed the following significant real estate activities:
Current wording
During the nine months ended September 30, 2024, we completed the following significant real estate activities:
Previous wording
•We executed seven leases at development properties with the following characteristics:
Current wording
•We executed nine leases at development properties with the following characteristics:
Previous wording
Additionally, we fully leased an industrial building comprised of 0.4 million square feet of GLA in our Joint Venture to two tenants.
Current wording
Additionally, we fully leased an industrial building totaling approximately 0.4 million square feet of GLA in our Joint Venture to two tenants.
Previous wording
•We acquired one industrial property comprised of approximately 0.05 million square feet of GLA located in our Southern California market for a purchase price of $15.8 million, excluding transaction costs.
Current wording
•We acquired five industrial properties totaling approximately 0.3 million square feet of GLA located in our Houston and Southern California markets for an aggregate purchase price of $44.8 million, excluding transaction costs.
Previous wording
•We commenced speculative development of three industrial buildings totaling 0.7 million square feet of GLA in our Houston and South Florida markets.
Current wording
•We commenced speculative development of four industrial buildings totaling approximately 1.2 million square feet of GLA in our Houston, Nashville and South Florida markets.
Previous wording
•We sold 10 industrial properties comprising approximately 0.5 million square feet of GLA for gross proceeds of $56.5 million.
Current wording
•We sold 17 industrial properties totaling approximately 1.0 million square feet of GLA for gross proceeds of $138.3 million.
Previous wording
Our significant financing activities during the six months ended June 30, 2024 were:
Current wording
Our significant financing activities during the nine months ended September 30, 2024 were:
Previous 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.
Current wording
•We declared first, second and third 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 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.
Current wording
•At September 30, 2024, we had $501.5 million available for additional borrowings under our Unsecured Credit Facility and cash and cash equivalents and restricted cash of $54.6 million, after excluding our Joint Venture partner's 6% share 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 in 2026.
Previous 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.
Current wording
The tables below summarize our revenues, property expenses and depreciation and other amortization by various categories for the three and nine months ended September 30, 2024 and 2023. Same store properties are properties owned prior to January 1, 2023 and held as an in-service property through September 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 September 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
Our net income was $123.4 million and $117.0 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Our net income was $225.5 million and $194.1 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
For the six months ended June 30, 2024 and 2023, the average daily occupancy rate of our same store properties was 96.9% and 98.2%, respectively.
Current wording
For the nine months ended September 30, 2024 and 2023, the average daily occupancy rate of our same store properties was 96.8% and 97.9%, respectively.
Previous 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.
Current wording
Revenues from same store properties increased $18.7 million primarily due to increases in rental rates and tenant recoveries, offset by a decrease in occupancy. Revenues from acquired properties increased $2.7 million due to the nine industrial properties acquired subsequent to December 31, 2022 totaling approximately 0.4 million square feet of GLA. Revenues from sold properties decreased $7.9 million due to the 28 industrial properties sold subsequent to December 31, 2022 totaling approximately 2.0 million square feet of GLA. Revenues from (re)developments increased $22.3 million due to an increase in occupancy and tenant recoveries. Revenues from other increased $1.4 million primarily due to revenues from income-producing land parcels for which our ultimate intent is to redevelop, develop or sell the applicable land parcel, 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 $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.
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 $4.8 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 $0.6 million due to properties acquired subsequent to December 31, 2022. Property expenses from sold properties decreased $2.2 million due to properties sold subsequent to December 31, 2022. Property expenses from (re)developments increased $6.8 million primarily due to the substantial completion of developments. Property expenses from other remained relatively unchanged.
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 $1.3 million, or 62.6%, due to a decrease in development costs incurred by our Joint Venture during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.
Current wording
Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $1.7 million, or 62.6%. This decline is attributed to a reduction in development activities by our Joint Venture during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.
Previous wording
Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $0.2 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 $2.8 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other remained relatively unchanged.
Current wording
Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $0.9 million due to properties acquired subsequent to December 31, 2022. Depreciation and other amortization from sold properties decreased $1.7 million due to properties sold subsequent to December 31, 2022. Depreciation and other amortization from (re)developments increased $8.8 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other decreased $0.4 million as certain improvements on land parcels, for which our ultimate intent is to redevelop or develop, became fully depreciated.
Previous 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.
Current wording
For the nine months ended September 30, 2024, we recognized $93.8 million of gain on sale of real estate related to the sale of 17 industrial properties totaling approximately 1.0 million square feet of GLA. For the nine months ended September 30, 2023, we recognized $47.4 million of gain on sale of real estate related to the sale of four industrial properties totaling approximately 0.2 million square feet of GLA and two land parcels.
Previous wording
Interest expense increased by $8.0 million, or 23.5%, due to a decrease in capitalized interest of $3.0 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, an increase in the weighted average debt balance outstanding for the six months ended June 30, 2024 ($2,256.3 million) as compared to the six months ended June 30, 2023 ($2,115.8 million) and an increase in the weighted average interest rate for the six months ended June 30, 2024 (4.17%) as compared to the six months ended June 30, 2023 (3.99%).
Current wording
Interest expense increased by $8.9 million, or 16.6%, primarily due to a $4.7 million reduction in capitalized interest during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. Additionally, the increase in interest expense was influenced by a higher weighted average debt balance of $2,231.5 million for the nine months ended September 30, 2024, up from $2,155.3 million for the nine months ended September 30, 2023, as well as an increase in the weighted average interest rate to 4.14% for the nine months ended September 30, 2024, compared to 4.03% for the nine months ended September 30, 2023.
Previous 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.
Current wording
Equity in income of joint venture for the nine months ended September 30, 2024 was $3.2 million, representing our pro-rata share of the net income generated by the Joint Venture. This income is derived from rental operations and expenses related to three industrial properties, totaling 1.8 million square feet of GLA, that were completed by the joint venture during this period. In comparison, equity in income of joint venture for the nine months ended September 30, 2023 was $30.6 million. This higher amount included our pro-rata share of gain from the sale of real estate by the Joint Venture and related incentive fees. Both periods include the 6% interest held by our partner in the Joint Venture, which is consolidated and reported in our financial statements.
Previous 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.
Current wording
Income tax provision decreased $3.1 million, or 38.4%, primarily due to a reduction in our pro-rata share of taxable gain and incentive fees from the Joint Venture. This decrease was partially offset by an increase in income tax expense associated with gains from the sale of real estate.
Previous wording
Our net income was $52.9 million and $56.2 million for the three months ended June 30, 2024 and 2023, respectively.
Current wording
Our net income was $102.2 million and $77.1 million for the three months ended September 30, 2024 and 2023, respectively.
Previous 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.
Current wording
For the three months ended September 30, 2024 and 2023, the average daily occupancy rate of our same store properties was 96.6% and 97.2%, respectively.
Previous wording
Revenues from same store properties increased $6.0 million primarily due to increases in rental rates and tenant recoveries, offset by a slight decrease in occupancy. Revenues from acquired properties increased $0.7 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 $1.3 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 $6.5 million due to an increase in occupancy and tenant recoveries. While revenues from other remained relatively unchanged, there was a decrease in joint venture fees, substantially offset by an increase in revenues from income-producing land parcels for which our ultimate intent is to redevelop or develop in the future .
Current wording
Revenues from same store properties increased $6.3 million primarily due to increases in rental rates offset by a slight decrease in occupancy. Revenues from acquired properties increased $1.1 million due to the nine industrial properties acquired subsequent to December 31, 2022 totaling approximately 0.4 million square feet of GLA. Revenues from sold properties decreased $4.5 million due to the 28 industrial properties sold subsequent to December 31, 2022 totaling approximately 2.0 million square feet of GLA. Revenues from (re)developments increased $9.2 million due to an increase in occupancy and tenant recoveries. Revenues from other increased $0.5 million due to an increase in revenues from income-producing land parcels for which our ultimate intent is to redevelop, develop or sell the applicable land parcel, offset by a decrease in joint venture fees.
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 $2.1 million primarily due to an increase in real estate tax expense and repair and maintenance expenses. Property expenses from acquired properties increased $0.2 million due to properties acquired subsequent to December 31, 2022. Property expenses from sold properties decreased $0.7 million due to properties sold subsequent to December 31, 2022. Property expenses from (re)developments increased $2.0 million primarily due to the substantial completion of developments. Property expenses from other decreased $0.3 million due to a decrease in miscellaneous expenses, offset by an increase in real estate tax expense related to land parcels.
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 remained relatively unchanged. Property expenses from acquired properties increased $0.3 million due to properties acquired subsequent to December 31, 2022. Property expenses from sold properties decreased $1.0 million due to properties sold subsequent to December 31, 2022. Property expenses from (re)developments increased $2.4 million primarily due to the substantial completion of developments. Property expenses from other increased $0.7 million primarily due to an increase in real estate tax expense related to land parcels and miscellaneous expenses.
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 $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.
Current wording
Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $0.4 million, or 62.8%. This decline is attributed to a reduction in development activities by our Joint Venture during the three months ended September 30, 2024, compared to the three months ended September 30, 2023.
Previous 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.
Current wording
Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $0.4 million due to properties acquired subsequent to December 31, 2022. Depreciation and other amortization from sold properties decreased $0.9 million due to properties sold subsequent to December 31, 2022. Depreciation and other amortization from (re)developments increased $3.7 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 June 30, 2024, we recognized $6.1 million of gain on sale of real estate related to the sale of one industrial property comprised of approximately 0.1 million square feet of GLA. For the three 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.
Current wording
For the three months ended September 30, 2024, we recognized $56.8 million of gain on sale of real estate related to the sale of seven industrial properties totaling approximately 0.4 million square feet of GLA. For the three months ended September 30, 2023, we recognized $34.4 million of gain on sale of real estate related to the sale of three industrial properties totaling approximately 0.03 million square feet of GLA and one land parcel.
Previous 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%).
Current wording
Interest expense increased by $0.9 million, or 4.7%, primarily due to a $1.6 million reduction in capitalized interest during the three months ended September 30, 2024, compared to the three months ended September 30, 2023. This increase was partially offset by a lower weighted average debt balance of $2,182.4 million for the three months ended September 30, 2024, compared to $2,233.0 million for the three months ended September 30, 2023 and a slight decrease in the weighted average interest rate, which fell to 4.08% for the three months ended September 30, 2024 from 4.10% for the three months ended September 30, 2023.
Previous wording
Equity in income of joint venture decreased $0.3 million, or 19.1%, primarily due to an increase in our pro-rata share of depreciation and amortization and interest expense recognized by the Joint Venture, partially offset by an increase in our pro-rata share of rental and interest income recognized by the Joint Venture. These amounts 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 decreased $0.9 million, or 60.8%, primarily due to an increase in our pro-rata share of depreciation, amortization and interest expense recognized by the Joint Venture following the substantial completion of three buildings totaling 1.8 million square feet of GLA during the nine months ended September 30, 2024. This decrease was partially offset by an increase in our pro-rata share of rental income from the Joint Venture. Both periods reflect the 6% interest held by our partner in the Joint Venture, which is consolidated and reported in our financial statements.
Previous 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.
Current wording
The following table provides a summary of our commenced leases for the three and nine months ended September 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 and six months ended June 30, 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 nine months ended September 30, 2024, which included rent concessions during the lease term.
Previous 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.
Current wording
At September 30, 2024, our cash and cash equivalents and restricted cash was approximately $54.6 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 $501.5 million available for additional borrowings under our Unsecured Credit Facility as of September 30, 2024.
Previous wording
We have considered our short-term (through June 30, 2025) liquidity needs and the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet these needs. We believe that our principal short-term liquidity needs are to fund normal recurring expenses, property acquisitions, developments, renovations, expansions and other nonrecurring capital improvements, debt service requirements, the minimum distributions required to maintain the Company's REIT qualification under the Code and distributions approved by the Company's Board of Directors. We anticipate that these needs will be met with cash flows provided by operating activities as well as the disposition of select assets. These needs may also be met by the issuance of other debt or equity securities, subject to market conditions, or borrowings under our Unsecured Credit Facility.
Current wording
We have considered our short-term liquidity needs through September 30, 2025, as well as the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet those needs. As of September 30, 2024, our Unsecured Credit Facility had an outstanding balance of $248.0 million, maturing on July 7, 2025, with two six-month extension options available. We are evaluating whether to extend the maturity by exercising the extension options or enter into a new facility. Additionally, we have a $300.0 million unsecured term loan maturing on August 12, 2025, with two one-year extension options. We are considering either extending the maturity by exercising the extension option or refinancing part or all of this term loan with new indebtedness. Apart from these payment obligations, we believe that our principal short-term liquidity needs include funding normal recurring expenses, property acquisitions, developments, renovations, expansions, other nonrecurring capital improvements, debt service requirements, the minimum distributions required to maintain the Company's REIT qualification under the Code and distributions approved by the Company's Board of Directors. We anticipate that these will be met with cash flows provided by operating activities as well as the disposition of select assets. These needs may also be met by the issuance of other debt or equity securities or borrowings under our Unsecured Credit Facility, subject to market conditions.
Previous wording
The following table summarizes our cash flow activity for the Company for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes our cash flow activity for the Company for the nine months ended September 30, 2024 and 2023:
Previous wording
The following table summarizes our cash flow activity for the Operating Partnership for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes our cash flow activity for the Operating Partnership for the nine months ended September 30, 2024 and 2023:
Previous wording
Changes in cash flow for the six months ended June 30, 2024, compared to the prior year comparable period are described as follows:
Current wording
Changes in cash flow for the nine months ended September 30, 2024, compared to the prior year comparable period are described as follows:
Previous wording
Operating Activities: Cash provided by operating activities increased $14.1 million, primarily due to the following:
Current wording
Operating Activities: Cash provided by operating activities increased $35.3 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 $17.7 million offset by a decrease in NOI due to the disposition of real estate of $2.3 million; and
Current wording
•increase in net operating income ("NOI") from same store properties, acquired properties and recently developed properties of $31.5 million offset by a decrease in NOI due to the disposition of real estate of $5.7 million; and
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