QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||
First Industrial Realty Trust, Inc. | ☑ | No | ☐ | ||
First Industrial, L.P. | ☑ | No | ☐ |
First Industrial Realty Trust, Inc. | ☑ | No | ☐ | ||
First Industrial, L.P. | ☑ | No | ☐ |
First Industrial Realty Trust, Inc.: | |||||||
☑ | Accelerated filer | ☐ | |||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ||||
Emerging growth company |
First Industrial, L.P.: | |||||||
Large accelerated filer | ☐ | ☑ | |||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ||||
Emerging growth company |
First Industrial Realty Trust, Inc. | Yes | ☐ | No | ☐ |
First Industrial, L.P. | Yes | ☐ | No | ☐ |
First Industrial Realty Trust, Inc. | Yes | No | ☑ | ||
First Industrial, L.P. | Yes | No | ☑ |
• | Stockholders' Equity, Noncontrolling Interest and Partners' Capital. The 2.2% equity interest in the Operating Partnership held by entities other than the Company is classified within partners' capital in the Operating Partnership's financial statements and as a noncontrolling interest in the Company's financial statements. |
• | Relationship to Other Real Estate Partnerships. The Company's operations are conducted primarily through the Operating Partnership and its subsidiaries, although operations are also conducted through eight other limited partnerships, which are referred to as the "Other Real Estate Partnerships." The Operating Partnership is a limited partner, holding at least a 99% interest, and the Company is a general partner, holding at least a .01% general partnership interest through eight separate wholly-owned corporations, in each of the Other Real Estate Partnerships. The Other Real Estate Partnerships are variable interest entities that both the Company and the Operating Partnership consolidate. The Company's direct general partnership interest in the Other Real Estate Partnerships is reflected as noncontrolling interest within the Operating Partnership's financial statements. |
• | Relationship to Service Subsidiary. The Company has a direct wholly-owned subsidiary that does not own any real estate but provides services to various other entities owned by the Company. Since the Operating Partnership does not have an ownership interest in this entity, its operations are reflected in the consolidated results of the Company but not the Operating Partnership. Also, this entity owes certain amounts to the Operating Partnership, for which a receivable is included on the Operating Partnership's balance sheet but is eliminated on the Company's consolidated balance sheet, since both this entity and the Operating Partnership are fully consolidated by the Company. |
• | enhances investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management views and operates the business; |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports; and |
• | eliminates duplicative disclosures and provides a more streamlined and readable presentation for our investors to review since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership. |
• | consolidated financial statements; |
• | a single set of consolidated notes to such financial statements that includes separate discussions of each entity's stockholders' equity or partners' capital, as applicable; and |
• | a combined Management's Discussion and Analysis of Financial Condition and Results of Operations section that includes distinct information related to each entity. |
Page | ||
First Industrial Realty Trust, Inc. | ||
First Industrial, L.P. | ||
First Industrial Realty Trust, Inc. and First Industrial, L.P. | ||
Item 1. | Financial Statements |
June 30, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in Real Estate: | |||||||
Land | $ | $ | |||||
Buildings and Improvements | |||||||
Construction in Progress | |||||||
Less: Accumulated Depreciation | ( | ) | ( | ) | |||
Net Investment in Real Estate | |||||||
Operating Lease Right-of-Use Assets | |||||||
Cash and Cash Equivalents | |||||||
Restricted Cash | |||||||
Tenant Accounts Receivable, Net | |||||||
Investment in Joint Venture | |||||||
Deferred Rent Receivable, Net | |||||||
Deferred Leasing Intangibles, Net | |||||||
Prepaid Expenses and Other Assets, Net | |||||||
Total Assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Indebtedness: | |||||||
Mortgage Loans Payable, Net | $ | $ | |||||
Senior Unsecured Notes, Net | |||||||
Unsecured Term Loans, Net | |||||||
Unsecured Credit Facility | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||||
Operating Lease Liabilities | |||||||
Deferred Leasing Intangibles, Net | |||||||
Rents Received in Advance and Security Deposits | |||||||
Dividends and Distributions Payable | |||||||
Total Liabilities | |||||||
Commitments and Contingencies | |||||||
Equity: | |||||||
First Industrial Realty Trust Inc.'s Stockholders' Equity: | |||||||
Common Stock ($0.01 par value, 225,000,000 shares authorized and 126,487,215 and 126,307,431 shares issued and outstanding) | |||||||
Additional Paid-in-Capital | |||||||
Distributions in Excess of Accumulated Earnings | ( | ) | ( | ) | |||
Accumulated Other Comprehensive (Loss) Income | ( | ) | |||||
Total First Industrial Realty Trust, Inc.'s Stockholders' Equity | |||||||
Noncontrolling Interest | |||||||
Total Equity | |||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||
Revenues: | |||||||||||||||
Lease Revenue | $ | $ | $ | $ | |||||||||||
Other Revenue | |||||||||||||||
Total Revenues | |||||||||||||||
Expenses: | |||||||||||||||
Property Expenses | |||||||||||||||
General and Administrative | |||||||||||||||
Impairment of Real Estate | |||||||||||||||
Depreciation and Other Amortization | |||||||||||||||
Total Expenses | |||||||||||||||
Other (Expense) Income: | |||||||||||||||
Gain on Sale of Real Estate | |||||||||||||||
Interest Expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of Debt Issuance Costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Loss from Retirement of Debt | ( | ) | |||||||||||||
Total Other (Expense) Income | ( | ) | ( | ) | |||||||||||
Income from Operations Before Equity in Income (Loss) of Joint Venture and Income Tax Provision | |||||||||||||||
Equity in Income (Loss) of Joint Venture | ( | ) | ( | ) | |||||||||||
Income Tax Provision | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net Income | |||||||||||||||
Less: Net Income Attributable to the Noncontrolling Interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ | $ | $ | $ | |||||||||||
Basic and Diluted Earnings Per Share: | |||||||||||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders | $ | $ | $ | $ | |||||||||||
Weighted Average Shares Outstanding - Basic | |||||||||||||||
Weighted Average Shares Outstanding - Diluted |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||
Payments to Settle Derivative Instruments | ( | ) | ( | ) | |||||||||||
Mark-to-Market (Loss) Gain on Derivative Instruments | ( | ) | ( | ) | |||||||||||
Amortization of Derivative Instruments | |||||||||||||||
Comprehensive Income | |||||||||||||||
Comprehensive Income Attributable to Noncontrolling Interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Comprehensive Income Attributable to First Industrial Realty Trust, Inc. | $ | $ | $ | $ |
Six Months Ended June 30, 2019: | Common Stock | Additional Paid-in- Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total | |||||||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Net Income | — | — | — | ||||||||||||||||||||
Other Comprehensive Loss | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||
Stock Based Compensation Activity | ( | ) | ( | ) | — | ( | ) | ||||||||||||||||
Common Stock Dividends and Unit Distributions ($0.2300 Per Share/Unit) | — | — | ( | ) | — | ( | ) | ( | ) | ||||||||||||||
Reallocation - Additional Paid-in-Capital | — | ( | ) | — | — | ||||||||||||||||||
Reallocation - Other Comprehensive Income | — | — | — | ( | ) | ||||||||||||||||||
Balance as of March 31, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||
Net Income | — | — | — | ||||||||||||||||||||
Other Comprehensive Loss | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||
Stock Based Compensation Activity | — | ||||||||||||||||||||||
Common Stock Dividends and Unit Distributions ($0.2300 Per Share/Unit) | — | — | ( | ) | — | ( | ) | ( | ) | ||||||||||||||
Reallocation - Additional Paid-in-Capital | — | — | — | ( | ) | ||||||||||||||||||
Reallocation - Other Comprehensive Income | — | — | — | ( | ) | ||||||||||||||||||
Balance as of June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ |
Six Months Ended June 30, 2018: | |||||||||||||||||||||||
Balance as of December 31, 2017 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Net Income | — | — | — | ||||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||||||
Stock Based Compensation Activity | ( | ) | ( | ) | — | — | ( | ) | |||||||||||||||
Common Stock Dividends and Unit Distributions ($0.2175 Per Share/Unit) | — | — | ( | ) | — | ( | ) | ( | ) | ||||||||||||||
Conversion of Limited Partner Units to Common Stock | — | — | ( | ) | |||||||||||||||||||
Retirement of Limited Partner Units | — | — | — | — | ( | ) | ( | ) | |||||||||||||||
Reallocation - Additional Paid-in-Capital | — | ( | ) | — | — | ||||||||||||||||||
Balance as of March 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||
Net Income | — | — | — | ||||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||||||
Issuance of Common Stock, Net of Issuance Costs | — | — | — | ||||||||||||||||||||
Stock Based Compensation Activity | — | — | |||||||||||||||||||||
Common Stock Dividends and Unit Distributions ($0.2175 Per Share/Unit) | — | — | ( | ) | — | ( | ) | ( | ) | ||||||||||||||
Conversion of Limited Partner Units to Common Stock | — | — | ( | ) | |||||||||||||||||||
Reallocation - Additional Paid-in-Capital | — | ( | ) | — | — | ||||||||||||||||||
Balance as of June 30, 2018 | $ | $ | $ | ( | ) | $ | $ | $ |
FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in thousands) | |||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | $ | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation | |||||||
Amortization of Debt Issuance Costs | |||||||
Other Amortization, including Stock Based Compensation | |||||||
Impairment of Real Estate | |||||||
Provision for Bad Debt | |||||||
Equity in (Income) Loss of Joint Venture | ( | ) | |||||
Distributions from Joint Venture | |||||||
Gain on Sale of Real Estate | ( | ) | ( | ) | |||
Loss from Retirement of Debt | |||||||
Payments to Settle Derivative Instruments | ( | ) | |||||
Straight-line Rental Income and Expense, Net | ( | ) | ( | ) | |||
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | ( | ) | ( | ) | |||
Increase (Decrease) in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | ( | ) | |||||
Net Cash Provided by Operating Activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of Real Estate | ( | ) | ( | ) | |||
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | ( | ) | ( | ) | |||
Net Proceeds from Sales of Investments in Real Estate | |||||||
Contributions to and Investments in Joint Venture | ( | ) | |||||
Distributions from Joint Venture | |||||||
Other Investing Activity | ( | ) | ( | ) | |||
Net Cash Used in Investing Activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Financing and Equity Issuance Costs | ( | ) | |||||
Proceeds from the Issuance of Common Stock, Net of Underwriter's Discount | |||||||
Tax Paid on Shares Withheld | ( | ) | ( | ) | |||
Common Stock Dividends and Unit Distributions Paid | ( | ) | ( | ) | |||
Repayments on Mortgage Loans Payable | ( | ) | ( | ) | |||
Proceeds from Senior Unsecured Notes | |||||||
Proceeds from Unsecured Credit Facility | |||||||
Repayments on Unsecured Credit Facility | ( | ) | ( | ) | |||
Net Cash Provided by Financing Activities | |||||||
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | ( | ) | |||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Year | |||||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | $ | |||||
FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited; in thousands) | |||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | |||||||
Interest Expense Capitalized in Connection with Development Activity | $ | $ | |||||
Cash Paid for Operating Lease Liabilities | $ | $ | |||||
Supplemental Schedule of Non-Cash Operating Activities: | |||||||
Operating Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | $ | |||||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||||||
Common Stock Dividends and Unit Distributions Payable | $ | $ | |||||
Exchange of Limited Partnership Units for Common Stock: | |||||||
Noncontrolling Interest | $ | $ | ( | ) | |||
Common Stock | |||||||
Additional Paid-in-Capital | |||||||
Total | $ | $ | |||||
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | $ | $ | |||||
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | $ | $ | |||||
Write-off of Fully Depreciated Assets | $ | ( | ) | $ | ( | ) |
June 30, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in Real Estate: | |||||||
Land | $ | $ | |||||
Buildings and Improvements | |||||||
Construction in Progress | |||||||
Less: Accumulated Depreciation | ( | ) | ( | ) | |||
Net Investment in Real Estate (including $255,559 and $260,528 related to consolidated variable interest entities, see Note 5) | |||||||
Operating Lease Right-of-Use Assets | |||||||
Cash and Cash Equivalents | |||||||
Restricted Cash | |||||||
Tenant Accounts Receivable, Net | |||||||
Investment in Joint Venture | |||||||
Deferred Rent Receivable, Net | |||||||
Deferred Leasing Intangibles, Net | |||||||
Prepaid Expenses and Other Assets, Net | |||||||
Total Assets | $ | $ | |||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Liabilities: | |||||||
Indebtedness: | |||||||
Mortgage Loans Payable, Net (including $13,164 and $20,497 related to consolidated variable interest entities, see Note 5) | $ | $ | |||||
Senior Unsecured Notes, Net | |||||||
Unsecured Term Loans, Net | |||||||
Unsecured Credit Facility | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||||
Operating Lease Liabilities | |||||||
Deferred Leasing Intangibles, Net | |||||||
Rents Received in Advance and Security Deposits | |||||||
Distributions Payable | |||||||
Total Liabilities | |||||||
Commitments and Contingencies | |||||||
Partners' Capital: | |||||||
First Industrial, L.P.'s Partners' Capital: | |||||||
General Partner Units (126,487,215 and 126,307,431 units outstanding) | |||||||
Limited Partners Units (2,908,260 and 2,624,167 units outstanding) | |||||||
Accumulated Other Comprehensive (Loss) Income | ( | ) | |||||
Total First Industrial L.P.'s Partners' Capital | |||||||
Noncontrolling Interest | |||||||
Total Partners' Capital | |||||||
Total Liabilities and Partners' Capital | $ | $ |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||
Revenues: | |||||||||||||||
Lease Revenue | $ | $ | $ | ||||||||||||
Other Revenue | |||||||||||||||
Total Revenues | |||||||||||||||
Expenses: | |||||||||||||||
Property Expenses | |||||||||||||||
General and Administrative | |||||||||||||||
Impairment of Real Estate | |||||||||||||||
Depreciation and Other Amortization | |||||||||||||||
Total Expenses | |||||||||||||||
Other (Expense) Income: | |||||||||||||||
Gain on Sale of Real Estate | |||||||||||||||
Interest Expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Amortization of Debt Issuance Costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Loss from Retirement of Debt | ( | ) | |||||||||||||
Total Other (Expense) Income | ( | ) | ( | ) | |||||||||||
Income from Operations Before Equity in Income (Loss) of Joint Venture and Income Tax Provision | |||||||||||||||
Equity in Income (Loss) of Joint Venture | ( | ) | ( | ) | |||||||||||
Income Tax Provision | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net Income | |||||||||||||||
Less: Net Income Attributable to the Noncontrolling Interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net Income Available to Unitholders and Participating Securities | $ | $ | $ | $ | |||||||||||
Basic and Diluted Earnings Per Unit: | |||||||||||||||
Net Income Available to Unitholders | $ | $ | $ | $ | |||||||||||
Weighted Average Units Outstanding - Basic | |||||||||||||||
Weighted Average Units Outstanding - Diluted |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||
Payments to Settle Derivative Instruments | ( | ) | ( | ) | |||||||||||
Mark-to-Market (Loss) Gain on Derivative Instruments | ( | ) | ( | ) | |||||||||||
Amortization of Derivative Instruments | |||||||||||||||
Comprehensive Income | $ | $ | $ | $ | |||||||||||
Comprehensive Income Attributable to Noncontrolling Interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Comprehensive Income Attributable to Unitholders | $ | $ | $ | $ |
Six Months Ended June 30, 2019: | General Partner Units | Limited Partner Units | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total | ||||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||||
Net Income | — | ||||||||||||||||||
Other Comprehensive Loss | — | — | ( | ) | — | ( | ) | ||||||||||||
Stock Based Compensation Activity | ( | ) | — | — | ( | ) | |||||||||||||
Unit Distributions ($0.2300 Per Unit) | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Distributions to Noncontrolling Interest | — | — | — | ( | ) | ( | ) | ||||||||||||
Balance as of March 31, 2019 | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Net Income | — | ||||||||||||||||||
Other Comprehensive Loss | — | — | ( | ) | — | ( | ) | ||||||||||||
Stock Based Compensation Activity | — | — | |||||||||||||||||
Unit Distributions ($0.2300 Per Unit) | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Contributions from Noncontrolling Interest | — | — | — | ||||||||||||||||
Distributions to Noncontrolling Interest | — | — | — | ( | ) | ( | ) | ||||||||||||
Balance as of June 30, 2019 | $ | $ | $ | ( | ) | $ | $ |
Six Months Ended June 30, 2018: | |||||||||||||||||||
Balance as of December 31, 2017 | $ | $ | $ | $ | $ | ||||||||||||||
Net Income | — | ||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||
Stock Based Compensation Activity | ( | ) | — | — | — | ( | ) | ||||||||||||
Unit Distributions ($0.2175 Per Unit) | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Conversion of Limited Partner Units to General Partner Units | ( | ) | — | — | |||||||||||||||
Retirement of Limited Partner Units | — | ( | ) | — | — | ( | ) | ||||||||||||
Contributions from Noncontrolling Interest | — | — | — | ||||||||||||||||
Distributions to Noncontrolling Interest | — | — | — | ( | ) | ( | ) | ||||||||||||
Balance as of March 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||||
Net Income | — | ||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||
Contribution of General Partner Units, Net of Issuance Costs | — | — | — | ||||||||||||||||
Stock Based Compensation Activity | — | — | — | ||||||||||||||||
Unit Distributions ($0.2175 Per Unit) | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Conversion of Limited Partner Units to General Partner Units | ( | ) | — | — | |||||||||||||||
Contributions from Noncontrolling Interest | — | — | — | ||||||||||||||||
Distributions to Noncontrolling Interest | — | — | — | ( | ) | ( | ) | ||||||||||||
Balance as of June 30, 2018 | $ | $ | $ | $ | $ |
FIRST INDUSTRIAL, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in thousands) | |||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | $ | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation | |||||||
Amortization of Debt Issuance Costs | |||||||
Other Amortization, including Stock Based Compensation | |||||||
Impairment of Real Estate | |||||||
Provision for Bad Debt | |||||||
Equity in (Income) Loss of Joint Venture | ( | ) | |||||
Distributions from Joint Venture | |||||||
Gain on Sale of Real Estate | ( | ) | ( | ) | |||
Loss from Retirement of Debt | |||||||
Payments to Settle Derivative Instruments | ( | ) | |||||
Straight-line Rental Income and Expense, Net | ( | ) | ( | ) | |||
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net and Operating Lease Right-of-Use Assets | ( | ) | ( | ) | |||
Increase (Decrease) in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits and Operating Lease Liabilities | ( | ) | |||||
Net Cash Provided by Operating Activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of Real Estate | ( | ) | ( | ) | |||
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | ( | ) | ( | ) | |||
Net Proceeds from Sales of Investments in Real Estate | |||||||
Contributions to and Investments in Joint Venture | ( | ) | |||||
Distributions from Joint Venture | |||||||
Other Investing Activity | ( | ) | ( | ) | |||
Net Cash Used in Investing Activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Financing and Equity Issuance Costs | ( | ) | |||||
Contribution of General Partner Units | |||||||
Tax Paid on Units Withheld | ( | ) | ( | ) | |||
Unit Distributions Paid | ( | ) | ( | ) | |||
Contributions from Noncontrolling Interests | |||||||
Distributions to Noncontrolling Interests | ( | ) | ( | ) | |||
Repayments on Mortgage Loans Payable | ( | ) | ( | ) | |||
Proceeds from Senior Unsecured Notes | |||||||
Proceeds from Unsecured Credit Facility | |||||||
Repayments on Unsecured Credit Facility | ( | ) | ( | ) | |||
Net Cash Provided by Financing Activities | |||||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | ( | ) | |||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Year | |||||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | $ | |||||
FIRST INDUSTRIAL, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited; in thousands) | |||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | |||||||
Interest Expense Capitalized in Connection with Development Activity | $ | $ | |||||
Cash Paid for Operating Lease Liabilities | $ | $ | |||||
Supplemental Schedule of Non-Cash Operating Activities: | |||||||
Operating Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | $ | |||||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||||||
General and Limited Partner Unit Distributions Payable | $ | $ | |||||
Exchange of Limited Partner Units for General Partner Units: | |||||||
Limited Partner Units | $ | $ | ( | ) | |||
General Partner Units | |||||||
Total | $ | $ | |||||
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | $ | $ | |||||
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | $ | $ | |||||
Write-off of Fully Depreciated Assets | $ | ( | ) | $ | ( | ) |
• | The new standard provided a practical expedient, which allows lessors to combine non-lease components with the related lease components if both the timing and pattern of transfer are the same for the non-lease components(s) and the related lease component, and the lease component would be classified as an operating lease. Lessors are permitted to apply the practical expedient to all existing leases on a retrospective or prospective basis. We elected the practical expedient to combine our lease and non-lease components that meet the defined criteria. The non-lease components of our leases primarily consist of common area maintenance reimbursements from our tenants. |
• | The new standard also requires lessors to exclude from variable payments certain lessor costs, such as real estate taxes, that the lessor contractually requires the lessee to pay directly to a third party on its behalf. Several of our leases require tenants to pay real estate taxes directly to taxing authorities. For periods prior to January 1, 2019, we recorded these payments in the line item Property Expenses with an offset in the line item Lease Revenue. For the three and six months ended June 30, 2018, $ |
• | The new standard requires our expected credit loss related to the collectability of lease receivables to be reflected as an adjustment to the line item Lease Revenue. For the three and six months ended June 30, 2018, the credit loss related to the collectibility of lease receivables was recognized in the line item Property Expenses and was not significant. |
Purchase Price | |||
Land | $ | ||
Building and Improvements | |||
In-Place Leases | |||
Below Market Leases | ( | ) | |
Other Assets (leasing commissions) | |||
Total Purchase Price | $ |
Outstanding Balance at | Interest Rate at June 30, 2019 | Effective Interest Rate at Issuance | Maturity Date | ||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||
Mortgage Loans Payable, Gross | $ | $ | 4.03% – 8.26% | 4.03% – 8.26% | December 2019 – August 2028 | ||||||||
Unamortized Debt Issuance Costs | ( | ) | ( | ) | |||||||||
Unamortized Premiums | |||||||||||||
Mortgage Loans Payable, Net | $ | $ | |||||||||||
Senior Unsecured Notes, Gross | |||||||||||||
2027 Notes | |||||||||||||
2028 Notes | |||||||||||||
2032 Notes | |||||||||||||
2027 Private Placement Notes | |||||||||||||
2028 Private Placement Notes | |||||||||||||
2029 Private Placement Notes | |||||||||||||
2030 Private Placement Notes | |||||||||||||
Subtotal | $ | $ | |||||||||||
Unamortized Debt Issuance Costs | ( | ) | ( | ) | |||||||||
Unamortized Discounts | ( | ) | ( | ) | |||||||||
Senior Unsecured Notes, Net | $ | $ | |||||||||||
Unsecured Term Loans, Gross | |||||||||||||
2014 Unsecured Term Loan (A) | $ | $ | N/A | ||||||||||
2015 Unsecured Term Loan (A) | N/A | ||||||||||||
Subtotal | $ | $ | |||||||||||
Unamortized Debt Issuance Costs | ( | ) | ( | ) | |||||||||
Unsecured Term Loans, Net | $ | $ | |||||||||||
Unsecured Credit Facility (B) | $ | $ | N/A |
Amount | |||
Remainder of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Amount (A) | Fair Value | Carrying Amount (A) | Fair Value | ||||||||||||
Mortgage Loans Payable, Net | $ | $ | $ | $ | |||||||||||
Senior Unsecured Notes, Net | |||||||||||||||
Unsecured Term Loans | |||||||||||||||
Unsecured Credit Facility | |||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Assets: | |||||||
Net Investment in Real Estate | $ | $ | |||||
Other Assets, Net | |||||||
Total Assets | $ | $ | |||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Liabilities: | |||||||
Mortgage Loans Payable, Net | $ | $ | |||||
Other Liabilities, Net | |||||||
Partners' Capital | |||||||
Total Liabilities and Partners' Capital | $ | $ |
2019 | 2018 | ||||||
Balance as of December 31 | $ | $ | |||||
Net Income | |||||||
Amortization of Unearned Compensation related to the Issuance of LTIP Units (A) | |||||||
Other Comprehensive (Loss) Income | ( | ) | |||||
Unit Distributions | ( | ) | ( | ) | |||
Conversion of Limited Partner Units to Common Stock (B) | ( | ) | |||||
Retirement of Limited Partner Units (C) | ( | ) | |||||
Reallocation - Additional Paid-in-Capital | |||||||
Reallocation - Other Comprehensive Income | |||||||
Balance as of June 30 | $ | $ |
2019 | 2018 | ||||||
Balance as of December 31 | $ | $ | |||||
Net Income | |||||||
Contributions | |||||||
Distributions | ( | ) | ( | ) | |||
Balance as of June 30 | $ | $ |
Derivative Instruments | Accumulated Other Comprehensive Income (Loss) of the Operating Partnership | Comprehensive (Income) Loss Attributable to Noncontrolling Interest of the Company | Accumulated Other Comprehensive Income (Loss) of the Company | ||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | ( | ) | $ | |||||||||
Other Comprehensive Loss Before Reclassifications | ( | ) | ( | ) | ( | ) | |||||||||
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | ( | ) | ( | ) | ( | ) | |||||||||
Net Current Period Other Comprehensive Loss | ( | ) | ( | ) | ( | ) | |||||||||
Balance as of June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | Affected Line Items in the Consolidated Statements of Operations | |||||||||||||
Derivative Instruments: | ||||||||||||||||||
Amortization of Previously Settled Derivative Instruments | $ | $ | $ | $ | Interest Expense | |||||||||||||
Net Settlement (Receipts) Payments to our Counterparties | ( | ) | ( | ) | Interest Expense | |||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ | $ | $ | $ | |||||||||||
Net Income Allocable to Participating Securities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders | $ | $ | $ | $ | |||||||||||
Denominator (In Thousands): | |||||||||||||||
Weighted Average Shares - Basic | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Performance units (See Note 9) | |||||||||||||||
Weighted Average Shares - Diluted | |||||||||||||||
Basic and Diluted EPS: | |||||||||||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders | $ | $ | $ | $ |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net Income Available to Unitholders and Participating Securities | $ | $ | $ | $ | |||||||||||
Net Income Allocable to Participating Securities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net Income Available to Unitholders | $ | $ | $ | $ | |||||||||||
Denominator (In Thousands): | |||||||||||||||
Weighted Average Units - Basic | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||
Performance units and certain Performance LTIP Units (See Note 9) | |||||||||||||||
Weighted Average Units - Diluted | |||||||||||||||
Basic and Diluted EPU: | |||||||||||||||
Net Income Available to Unitholders | $ | $ | $ | $ |
Fair Value Measurements: | ||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||
Liabilities: | ||||||||||||||
2014 Swaps | $ | ( | ) | $ | ( | ) | ||||||||
2015 Swaps | $ | ( | ) | $ | ( | ) |
Remainder of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total Lease Payments | |||
Less Imputed Interest (A) | |||
Total | $ |
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
Remainder of 2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total | $ |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | changes in national, international, regional and local economic conditions generally and real estate markets specifically; |
• | changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; |
• | our ability to qualify and maintain our status as a real estate investment trust; |
• | the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; |
• | the availability and attractiveness of terms of additional debt repurchases; |
• | changes in our credit agency ratings; |
• | our ability to comply with applicable financial covenants; |
• | our competitive environment; |
• | changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; |
• | difficulties in identifying and consummating acquisitions and dispositions; |
• | our ability to manage the integration of properties we acquire; |
• | potential liability relating to environmental matters; |
• | defaults on or non-renewal of leases by our tenants; |
• | decreased rental rates or increased vacancy rates; |
• | higher-than-expected real estate construction costs and delays in development or lease-up schedules; |
• | changes in general accounting principles, policies and guidelines applicable to real estate investment trusts; and |
• | other risks and uncertainties described in this report, in Item 1A, "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2018 as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the Securities and Exchange Commission (the "SEC"). |
• | We acquired four industrial properties comprised of approximately 0.3 million square feet of GLA located in our Chicago, Denver, and Southern California markets for a purchase price of $28.4 million, excluding transactions costs. |
• | We acquired 100 acres of land for development located in our Phoenix, Southern California and Dallas markets for an aggregate purchase price of $20.2 million, excluding transaction costs. Included in the 100 acres is 39 acres we purchased from our Joint Venture. |
• | We sold two industrial properties comprised of approximately 0.1 million square feet of GLA for gross sales proceeds of $12.1 million. |
• | The Joint Venture sold 236 acres of land (including the 39 acres we purchased from the Joint Venture) for an aggregate purchase price of $57.2 million. |
• | We paid off $72.1 million in mortgage loans payable. |
• | We declared first and second quarter cash dividends of $0.23 per common share or Unit per quarter, an increase of 5.7% from the 2018 quarterly rate. |
Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
($ in 000's) | ||||||||||||||
REVENUES | ||||||||||||||
Same Store Properties | $ | 189,753 | $ | 183,252 | $ | 6,501 | 3.5 | % | ||||||
Acquired Properties | 3,572 | 911 | 2,661 | 292.1 | % | |||||||||
Sold Properties | 535 | 7,765 | (7,230 | ) | (93.1 | )% | ||||||||
(Re)Developments | 13,408 | 1,740 | 11,668 | 670.6 | % | |||||||||
Other | 1,368 | 1,035 | 333 | 32.2 | % | |||||||||
Real Estate Tax Reimbursement (A) | — | 3,748 | (3,748 | ) | (100.0 | )% | ||||||||
Provision for Bad Debt (B) | — | 165 | (165 | ) | (100.0 | )% | ||||||||
Total Revenues | $ | 208,636 | $ | 198,616 | $ | 10,020 | 5.0 | % |
Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
($ in 000's) | ||||||||||||||
PROPERTY EXPENSES | ||||||||||||||
Same Store Properties | $ | 48,822 | $ | 46,638 | $ | 2,184 | 4.7 | % | ||||||
Acquired Properties | 1,616 | 360 | 1,256 | 348.9 | % | |||||||||
Sold Properties | 74 | 2,555 | (2,481 | ) | (97.1 | )% | ||||||||
(Re)Developments | 3,243 | 1,462 | 1,781 | 121.8 | % | |||||||||
Other | 3,792 | 3,036 | 756 | 24.9 | % | |||||||||
Real Estate Tax Expense (A) | — | 3,748 | (3,748 | ) | (100.0 | )% | ||||||||
Provision for Bad Debt (B) | — | 165 | (165 | ) | (100.0 | )% | ||||||||
Total Property Expenses | $ | 57,547 | $ | 57,964 | $ | (417 | ) | (0.7 | )% |
Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
($ in 000's) | ||||||||||||||
DEPRECIATION AND OTHER AMORTIZATION | ||||||||||||||
Same Store Properties | $ | 51,839 | $ | 52,440 | $ | (601 | ) | (1.1 | )% | |||||
Acquired Properties | 2,276 | 826 | 1,450 | 175.5 | % | |||||||||
Sold Properties | 127 | 2,127 | (2,000 | ) | (94.0 | )% | ||||||||
(Re) Developments | 5,136 | 1,106 | 4,030 | 364.4 | % | |||||||||
Corporate Furniture, Fixtures and Equipment and Other | 451 | 452 | (1 | ) | (0.2 | )% | ||||||||
Total Depreciation and Other Amortization | $ | 59,829 | $ | 56,951 | $ | 2,878 | 5.1 | % |
Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
($ in 000's) | ||||||||||||||
REVENUES | ||||||||||||||
Same Store Properties | $ | 94,286 | $ | 91,401 | $ | 2,885 | 3.2 | % | ||||||
Acquired Properties | 2,062 | 772 | 1,290 | 167.1 | % | |||||||||
Sold Properties | 33 | 3,163 | (3,130 | ) | (99.0 | )% | ||||||||
(Re)Developments | 7,169 | 998 | 6,171 | 618.3 | % | |||||||||
Other | 545 | 572 | (27 | ) | (4.7 | )% | ||||||||
Real Estate Tax Reimbursement (A) | — | 1,862 | (1,862 | ) | (100.0 | )% | ||||||||
Provision for Bad Debt (B) | — | 77 | (77 | ) | (100.0 | )% | ||||||||
Total Revenues | $ | 104,095 | $ | 98,845 | $ | 5,250 | 5.3 | % |
Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
($ in 000's) | ||||||||||||||
PROPERTY EXPENSES | ||||||||||||||
Same Store Properties | $ | 23,450 | $ | 22,871 | $ | 579 | 2.5 | % | ||||||
Acquired Properties | 874 | 313 | 561 | 179.2 | % | |||||||||
Sold Properties | 11 | 1,060 | (1,049 | ) | (99.0 | )% | ||||||||
(Re)Developments | 1,514 | 911 | 603 | 66.2 | % | |||||||||
Other | 1,530 | 1,459 | 71 | 4.9 | % | |||||||||
Real Estate Tax Expense (A) | — | 1,862 | (1,862 | ) | (100.0 | )% | ||||||||
Provision for Bad Debt (B) | — | 77 | (77 | ) | (100.0 | )% | ||||||||
Total Property Expenses | $ | 27,379 | $ | 28,553 | $ | (1,174 | ) | (4.1 | )% |
Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
($ in 000's) | ||||||||||||||
DEPRECIATION AND OTHER AMORTIZATION | ||||||||||||||
Same Store Properties | $ | 25,791 | $ | 26,151 | $ | (360 | ) | (1.4 | )% | |||||
Acquired Properties | 1,114 | 763 | 351 | 46.0 | % | |||||||||
Sold Properties | — | 777 | (777 | ) | (100.0 | )% | ||||||||
(Re) Developments | 2,658 | 718 | 1,940 | 270.2 | % | |||||||||
Corporate Furniture, Fixtures and Equipment and Other | 211 | 227 | (16 | ) | (7.0 | )% | ||||||||
Total Depreciation and Other Amortization | $ | 29,774 | $ | 28,636 | $ | 1,138 | 4.0 | % |
Three Months Ended | Number of Leases Commenced | Square Feet Commenced (in 000's) | Net Rent Per Square Foot (A) | Straight Line Basis Rent Growth (B) | Weighted Average Lease Term (C) | Lease Costs Per Square Foot (D) | Weighted Average Tenant Retention (E) | |||||||||||||||
New Leases | 26 | 446 | $ | 5.56 | 17.7 | % | 5.5 | $ | 4.63 | N/A | ||||||||||||
Renewal Leases | 43 | 1,891 | $ | 6.37 | 29.5 | % | 5.3 | $ | 1.90 | 73.1 | % | |||||||||||
Development / Acquisition Leases | 6 | 724 | $ | 6.32 | N/A | 4.6 | N/A | N/A | ||||||||||||||
Total / Weighted Average | 75 | 3,061 | $ | 6.24 | 27.3 | % | 5.2 | $ | 2.42 | 73.1 | % | |||||||||||
Six Months Ended | ||||||||||||||||||||||
New Leases | 40 | 662 | $ | 5.80 | 19.8 | % | 5.5 | $ | 4.73 | N/A | ||||||||||||
Renewal Leases | 91 | 4,949 | $ | 5.26 | 21.9 | % | 4.9 | $ | 1.40 | 80.8 | % | |||||||||||
Development / Acquisition Leases | 10 | 936 | $ | 6.37 | N/A | 4.8 | N/A | N/A | ||||||||||||||
Total / Weighted Average | 141 | 6,547 | $ | 5.48 | 21.6 | % | 4.9 | $ | 1.79 | 80.8 | % |
(A) | Net rent is the average base rent calculated in accordance with GAAP, over the term of the lease. |
(B) | Straight Line basis rent growth is a ratio of the change in net rent (including straight line rent adjustments) on a new or renewal lease compared to the net rent (including straight line rent adjustments) of the comparable lease. New leases where there were no prior comparable leases are excluded. |
(C) | The lease term is expressed in years. Assumes no exercise of lease renewal options, if any. |
(D) | Lease costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions paid and costs capitalized for leasing transactions. Lease costs per square foot represent the total turnover costs expected to be incurred on the leases that commenced during the period and do not reflect actual expenditures for the period. |
(E) | Represents the weighted average square feet of tenants renewing their respective leases. |
Three Months Ended | Number of Leases With Rent Concessions | Square Feet (in 000's) | Rent Concessions ($) | ||||||
New Leases | 16 | 315 | $ | 430 | |||||
Renewal Leases | 2 | 256 | $ | 193 | |||||
Development / Acquisition Leases | 5 | 564 | $ | 852 | |||||
Total | 23 | 1,135 | $ | 1,475 | |||||
Six Months Ended | |||||||||
New Leases | 24 | 473 | $ | 635 | |||||
Renewal Leases | 3 | 324 | $ | 217 | |||||
Development / Acquisition Leases | 9 | 777 | $ | 1,349 | |||||
Total | 36 | 1,574 | $ | 2,201 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Net cash provided by operating activities | $ | 120,118 | $ | 93,817 | ||||
Net cash used in investing activities | (157,562 | ) | (139,483 | ) | ||||
Net cash provided by financing activities | 20,516 | 76,697 |
2019 | 2018 | |||||||
(In thousands) | ||||||||
Net cash provided by operating activities | $ | 120,177 | $ | 93,760 | ||||
Net cash used in investing activities | (157,562 | ) | (139,483 | ) | ||||
Net cash provided by financing activities | 20,457 | 76,754 |
• | increase in NOI from same store properties, acquired properties and recently developed properties of $15.6 million offset by decreases in NOI due to building disposals of $4.7 million; and |
• | an increase in distributions from our Joint Venture of $16.1 million in 2019. |
• | decrease of $84.4 million in net proceeds received from the disposition of real estate in 2019 |
• | decrease of $35.3 million related to the acquisition of real estate in 2019; and |
• | decrease of $31.9 million related to net contributions made to our Joint Venture in 2019. |
• | decrease of $300.0 million related to the issuance of Private Placement Notes in 2018; and |
• | decrease of $145.6 million related to the proceeds received from the issuance of common stock in an underwritten public offering during 2018 |
• | increase in net proceeds from the Unsecured Credit Facility of $302.5 million; and |
• | decrease in repayments of Mortgage Loans Payable of $86.6 million. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ | 39,800 | $ | 45,209 | $ | 63,603 | $ | 81,501 | |||||||
Adjustments: | |||||||||||||||
Depreciation and Other Amortization of Real Estate | 29,603 | 28,448 | 59,458 | 56,580 | |||||||||||
Impairment of Depreciable Real Estate | — | — | — | 2,285 | |||||||||||
Gain on Sale of Depreciable Real Estate | (1,097 | ) | (25,067 | ) | (889 | ) | (45,140 | ) | |||||||
Gain on Sale of Real Estate from Joint Venture | (15,747 | ) | — | (16,714 | ) | — | |||||||||
Income Tax Provision - Gain on Sale of Real Estate from Joint Venture | 2,877 | — | 3,095 | — | |||||||||||
Noncontrolling Interest Share of Adjustments | (344 | ) | (65 | ) | (992 | ) | (375 | ) | |||||||
Funds from Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ | 55,092 | $ | 48,525 | $ | 107,561 | $ | 94,851 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Same Store Revenues | $ | 94,286 | $ | 91,401 | $ | 189,753 | $ | 183,252 | |||||||||||
Same Store Property Expenses | (23,450 | ) | (22,871 | ) | (48,822 | ) | (46,638 | ) | |||||||||||
Same Store Net Operating Income Before Same Store Adjustments | $ | 70,836 | $ | 68,530 | 3.4% | $ | 140,931 | $ | 136,614 | 3.2% | |||||||||
Same Store Adjustments: | |||||||||||||||||||
Straight-line Rent | 14 | (8 | ) | 119 | (595 | ) | |||||||||||||
Above / Below Market Rent Amortization | (256 | ) | (249 | ) | (507 | ) | (501 | ) | |||||||||||
Lease Termination Fees | (443 | ) | (163 | ) | (1,014 | ) | (174 | ) | |||||||||||
Same Store Net Operating Income | $ | 70,151 | $ | 68,110 | 3.0% | $ | 139,529 | $ | 135,344 | 3.1% |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibits | Description | |
101.1* | The following financial statements from First Industrial Realty Trust, Inc.'s and First Industrial L.P.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statement of Changes in Stockholders' Equity / Consolidated Statement of Changes in Partners' Capital (unaudited), (v) Consolidated Statements of Cash Flows (unaudited) and (vi) Notes to Consolidated Financial Statements (unaudited) |
* | Filed herewith. |
** | Furnished herewith. |
FIRST INDUSTRIAL REALTY TRUST, INC. | ||
By: | /S/ SCOTT A. MUSIL | |
Scott A. Musil Chief Financial Officer (Principal Financial Officer) | ||
By: | /S/ SARA E. NIEMIEC | |
Sara E. Niemiec Chief Accounting Officer (Principal Accounting Officer) |
FIRST INDUSTRIAL, L.P. | ||
By: | FIRST INDUSTRIAL REALTY TRUST, INC. | |
as general partner | ||
By: | /S/ SCOTT A. MUSIL | |
Scott A. Musil Chief Financial Officer (Principal Financial Officer) | ||
By: | /S/ SARA E. NIEMIEC | |
Sara E. Niemiec Chief Accounting Officer (Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial Realty Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: July 26, 2019 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial Realty Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: July 26, 2019 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: July 26, 2019 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
First Industrial Realty Trust, Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: July 26, 2019 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) | ||
First Industrial Realty Trust, Inc. |
Date: July 26, 2019 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) |
Date: July 26, 2019 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) |
Date: July 26, 2019 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
First Industrial Realty Trust, Inc. | ||
Date: July 26, 2019 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) | ||
First Industrial Realty Trust, Inc. |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
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Net Investment in Real Estate | $ 2,973,831 | $ 2,861,860 |
Mortgage Loans Payable, Net | $ 221,357 | $ 296,470 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 225,000,000 | 225,000,000 |
Common Stock, shares issued | 126,487,215 | 126,307,431 |
Common Stock, shares outstanding | 126,487,215 | 126,307,431 |
First Industrial, L.P. | ||
Net Investment in Real Estate | $ 2,973,831 | $ 2,861,860 |
Mortgage Loans Payable, Net | $ 221,357 | $ 296,470 |
General Partner Units, units outstanding | 126,487,215 | 126,307,431 |
Limited Partner Units, units outstanding | 2,908,260 | 2,624,167 |
Other Real Estate Partnerships | ||
Net Investment in Real Estate | $ 255,559 | $ 260,528 |
Mortgage Loans Payable, Net | $ 13,164 | $ 20,497 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY / PARTNERS' CAPITAL (Parenthetical) - $ / shares |
3 Months Ended | |||
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Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
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Dividends/Distributions Per Share/Unit | $ 0.2300 | $ 0.2300 | $ 0.2175 | $ 0.2175 |
First Industrial, L.P. | ||||
Dividends/Distributions Per Share/Unit | $ 0.2300 | $ 0.2300 | $ 0.2175 | $ 0.2175 |
Organization |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization First Industrial Realty Trust, Inc. (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"). Unless stated otherwise or the context otherwise requires, the terms "we," "our" and "us" refer to the Company and its subsidiaries, including its operating partnership, First Industrial, L.P. (the "Operating Partnership"), and its consolidated subsidiaries. We began operations on July 1, 1994. The Company's operations are conducted primarily through the Operating Partnership, of which the Company is the sole general partner (the "General Partner"), with an approximate 97.8% ownership interest ("General Partner Units") at June 30, 2019. The Operating Partnership also conducts operations through eight other limited partnerships (the "Other Real Estate Partnerships"), numerous limited liability companies ("LLCs") and certain taxable REIT subsidiaries ("TRSs"), the operating data of which, together with that of the Operating Partnership, is consolidated with that of the Company as presented herein. The Operating Partnership holds at least a 99% limited partnership interest in each of the Other Real Estate Partnerships. The general partners of the Other Real Estate Partnerships are separate corporations, wholly-owned by the Company, each with at least a .01% general partnership interest in the Other Real Estate Partnerships. The Company does not have any significant assets or liabilities other than its investment in the Operating Partnership and its 100% ownership interest in the general partners of the Other Real Estate Partnerships. The Company's noncontrolling interest in the Operating Partnership of approximately 2.2% at June 30, 2019 represents the aggregate partnership interest held by the limited partners thereof ("Limited Partner Units" and together with the General Partner Units, the "Units"). The limited partners of the Operating Partnership are persons or entities who contributed their direct or indirect interests in properties to the Operating Partnership in exchange for common Limited Partner Units of the Operating Partnership and/or recipients of LTIP Units of the Operating Partnership pursuant to the Company's stock incentive plan. See Note 9 for more information. We also own a 49% equity interest in, and provide various services to, a joint venture (the "Joint Venture") through a wholly- owned TRS of the Operating Partnership. The Joint Venture is accounted for under the equity method of accounting. The operating data of the Joint Venture is not consolidated with that of the Company or the Operating Partnership as presented herein. See Note 5 for more information related to the Joint Venture. Profits, losses and distributions of the Operating Partnership, the LLCs, the Other Real Estate Partnerships, the TRSs and the Joint Venture are allocated to the general partner and the limited partners, the members or the shareholders, as applicable, of such entities in accordance with the provisions contained within their respective organizational documents. As of June 30, 2019, we owned 462 industrial properties located in 21 states, containing an aggregate of approximately 63.4 million square feet of gross leasable area ("GLA"). Of the 462 properties owned on a consolidated basis, none of them are directly owned by the Company.
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Summary of Significant Accounting Policies |
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Jun. 30, 2019 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the accounting policies described in the consolidated financial statements and related notes included in our annual report on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2018 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2018 Form 10-K, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The following notes to these interim consolidated financial statements highlight significant changes to the notes included in the December 31, 2018 audited consolidated financial statements included in our 2018 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission. Use of Estimates In order to conform with GAAP, in preparation of our consolidated financial statements we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of June 30, 2019 and December 31, 2018, and the reported amounts of revenues and expenses for the three and six months ended June 30, 2019 and 2018. Actual results could differ from those estimates. In our opinion, the accompanying unaudited interim consolidated financial statements reflect all adjustments necessary for a fair statement of our financial position as of June 30, 2019 and December 31, 2018, the results of our operations and comprehensive income for each of the three and six months ended June 30, 2019 and 2018, and our cash flows for each of the six months ended June 30, 2019 and 2018. All adjustments are of a normal recurring nature. Reclassifications We adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification 842 Leases effective January 1, 2019. Upon adoption of the new standard, tenant recovery revenue and fee revenue collected for delinquent lease payments for 2018 has been reclassified to the Lease Revenue line item in the Consolidated Statements of Operations to conform to the 2019 financial statement presentation. This reclassification had no impact to the 2018 results of operations. Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which amended the existing accounting standards for lease accounting to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet. We adopted the standard effective January 1, 2019 and have elected to use January 1, 2019 as our date of initial application. Consequently, financial information will not be updated and disclosures required under the new standard will not be provided for periods presented before January 1, 2019 as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. As a lessor, our rental revenue remained mainly consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. The new standard defines initial direct costs as only the incremental costs of signing a lease. As such, certain compensation and certain external legal fees related to the execution of successful lease agreements no longer meet the definition of initial direct costs under the new standard and will be accounted for in the line item General and Administrative Expense. However, the adoption of the standard, along with the adoption of ASU No. 2018-11, Leases - Targeted Improvements which the FASB issued in July 2018, did change our presentation of our results from operations in the Consolidated Statements of Operations. The main changes caused by the adoption of the standards are:
We are a lessee on a limited number of ground and office leases. Under the new standard, the expense pattern for these leases is generally consistent with that of our historical recognition; however, we are required to record right-of-use assets and lease liabilities on our Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at lease commencement to determine the present value of lease payments. For leases that commenced prior to the effective date of the standard, we recognized right-of-use assets and lease liabilities based on the present value of remaining lease payments and the incremental borrowing rate on the date of adoption. We have elected the short term lease exemption for certain qualifying leases with lease terms of twelve months or less and, accordingly, did not record right-of-use assets and lease liabilities. We have also elected the practical expedient to not separate lease and non-lease components. For additional disclosures related to leases, refer to Note 13. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeting Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). ASU 2017-12 is intended to better align financial reporting for hedging activities with the economic objectives of those activities. We adopted ASU 2017-02 effective January 1, 2019, and the adoption did not impact our financial condition or results of operations.
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Investment in Real Estate |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||
Investment in Real Estate | Investment in Real Estate Acquisitions During the six months ended June 30, 2019, we acquired four industrial properties comprised of approximately 0.3 million square feet of GLA and four land parcels, one of which was acquired from our Joint Venture (see Note 5). We accounted for the properties and land parcels as asset acquisitions and therefore capitalized transaction costs to the basis of the acquired assets. The following table summarizes the amounts recognized for each major asset class for the industrial properties and land parcels acquired during the six months ended June 30, 2019:
The revenue and net income associated with the acquisition of the industrial properties and land parcels, since their respective acquisition dates, are not significant for the six months ended June 30, 2019. Sales During the six months ended June 30, 2019, we sold two industrial properties comprised of approximately 0.1 million square feet of GLA. Gross proceeds from the sales were $12,091. The gain on sale of real estate attributable to these sales was $889.
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Indebtedness |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness The following table discloses certain information regarding our indebtedness:
_______________ (A) The interest rate at June 30, 2019 also reflects the derivative instruments we entered into to effectively convert the variable rate to a fixed rate. See Note 10. (B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized debt issuance costs of $2,927 and $3,554 as of June 30, 2019 and December 31, 2018, respectively, which are included in the line item Prepaid Expenses and Other Assets, Net. Mortgage Loans Payable, Net During the six months ended June 30, 2019, we paid off mortgage loans in the amount of $72,073. As of June 30, 2019, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $336,242. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of June 30, 2019. Senior Unsecured Notes, Net On July 23, 2019, the Operating Partnership issued $150,000 of senior unsecured notes in a private placement. See Subsequent Events (Note 14). Indebtedness The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and debt issuance costs, for the next five years as of June 30, and thereafter:
Our unsecured credit facility (the "Unsecured Credit Facility"), our unsecured term loans (the "Unsecured Term Loans"), our private placement notes (the "Private Placement Notes") and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and the Unsecured Term Loans an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans, the Private Placement Notes and the indentures governing our senior unsecured notes as of June 30, 2019. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs. Fair Value At June 30, 2019 and December 31, 2018, the fair value of our indebtedness was as follows:
_______________ (A) The carrying amounts include unamortized premiums and discounts and exclude unamortized debt issuance costs. The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured notes were determined by using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured notes from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and the Unsecured Term Loans was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured notes, the Unsecured Term Loans and the Unsecured Credit Facility was primarily based upon Level 3 inputs.
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Variable Interest Entities |
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities Other Real Estate Partnerships The Other Real Estate Partnerships are variable interest entities ("VIEs") of the Operating Partnership and the Operating Partnership is the primary beneficiary, thus causing the Other Real Estate Partnerships to be consolidated by the Operating Partnership. In addition, the Operating Partnership is a VIE of the Company and the Company is the primary beneficiary. The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets, net of intercompany amounts:
Joint Venture During the second quarter 2018, we entered into the Joint Venture with a third party partner for the purpose of developing, leasing, operating and potentially selling approximately 532 net developable acres of land located in the Phoenix, Arizona metropolitan area. The purchase price of the land was $49,000 and was acquired by the Joint Venture via cash equity contributions from us and our joint venture partner. Through a wholly-owned TRS of the Operating Partnership, we own a 49% interest in the Joint Venture. During the six months ended June 30, 2019, the Joint Venture sold three land parcels, totaling 236 net developable acres, for gross proceeds of $57,178 and a total gain on sale of real estate of $30,236. Our economic share of the gain on sale is $14,816. However, we were the purchaser of one of the land parcels, acquiring 39 net developable acres from the Joint Venture. Accordingly, we netted our gain on sale pertaining to that sale in the amount of $3,121 against the basis of the land acquired. During the six months ended June 30, 2018, the Joint Venture sold one land parcel, totaling 21 net developable acres, for gross proceeds of $3,973 and total gain on sale of real estate of $181. Net income of the Joint Venture for the six months ended June 30, 2019 and 2018 was $30,148 and $154, respectively. Under the Joint Venture's operating agreement, we act as the managing member of the Joint Venture and are entitled to receive fees for providing management, leasing, development, construction supervision, disposition and asset management services to the Joint Venture. In addition, the Joint Venture's operating agreement provides us the ability to earn an incentive fee based on the ultimate financial performance of the Joint Venture. In accordance with GAAP, for the three months ended June 30, 2019, we calculated the incentive fee using a hypothetical liquidation basis assuming the remaining net assets of the Joint Venture were distributed at book value. Under this hypothetical liquidation methodology, we recognized an incentive fee of approximately $4,900, which is recorded in the Equity In Income of Joint Venture line item in the statement of operations and as an increase to the Investment in Joint Venture line item on the balance sheet. Any incentive fee earned will be calculated based on the final economic performance of the Joint Venture and will be paid towards the end of the Joint Venture's life. As part of our assessment of the appropriate accounting treatment for the Joint Venture, we reviewed the operating agreement of the Joint Venture in order to determine our rights and the rights of our joint venture partner, including whether those rights are protective or participating. We found that the operating agreement contains certain protective rights, such as the requirement of both member's approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget. However, we also found that we and our Joint Venture partner jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) review and approve the Joint Venture's tax return before filing and (iv) approve each lease at a developed property. We consider the latter rights substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the Joint Venture. As such, we concluded to account for our investment in the Joint Venture under the equity method of accounting.
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Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership | Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership Noncontrolling Interest of the Company The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for Limited Partner Units, as well as the equity positions of the holders of LTIP Units, are collectively referred to as the “Noncontrolling Interests.” Subject to vesting and other certain exceptions (including the “book-up” requirements of LTIP Units - See Note 9 for additional detail), the holders of Noncontrolling Interests may convert their Units into an equal number of shares of Common Stock, or a cash equivalent, at the Company's election. Net income is allocated to the Noncontrolling Interests based on the weighted average ownership percentage during the period. The following table summarizes the changes in noncontrolling interest for the Company for the six months ended June 30, 2019 and 2018:
_______________ (A) During the six months ended June 30, 2019, 297,216 LTIP Units were issued to certain employees and directors. (B) During the six months ended June 30, 2018, 1,019,677 Limited Partner Units were converted into an equivalent number of shares of common stock of the Company, resulting in a reclassification of $12,327 of noncontrolling interest to the Company's stockholders' equity. (C) During the six months ended June 30, 2018, 33,333 Limited Partner Units were forfeited by a unitholder and were retired by the Operating Partnership. Noncontrolling Interest of the Operating Partnership The following table summarizes the changes in noncontrolling interest for the Operating Partnership for the six months ended June 30, 2019 and 2018:
Dividends/Distributions During the six months ended June 30, 2019, we declared $59,786 common stock dividends and Unit distributions.
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Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated other comprehensive income by component for the Company and the Operating Partnership for the six months ended June 30, 2019:
The following table summarizes the reclassifications out of accumulated other comprehensive income for both the Company and the Operating Partnership for the three and six months ended June 30, 2019 and 2018:
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Earnings Per Share / Unit (EPS / EPU) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share / Unit (EPS / EPU) | Earnings Per Share and Earnings Per Unit ("EPS"/"EPU") The computation of basic and diluted EPS of the Company is presented below:
The computation of basic and diluted EPU of the Operating Partnership is presented below:
At June 30, 2019 and 2018, participating securities for the Company include 274,624 and 413,193, respectively, of restricted stock, which participate in non-forfeitable distributions. At June 30, 2019 and 2018, participating securities for the Operating Partnership include 400,181 and 413,193, respectively, of restricted Unit awards and certain LTIP Units, which participate in non-forfeitable distributions. Under the two class method, participating security holders are allocated income, in proportion to total weighted average shares or Units outstanding, based upon the greater of net income or common stock dividends or Unit distributions declared.
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Long-Term Compensation |
6 Months Ended |
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Jun. 30, 2019 | |
Share-based Compensation [Abstract] | |
Long-Term Compensation | Awards of LTIP Units During 2018, the Company modified its stock incentive program to allow for the granting of awards to certain officers, certain employees and directors in the form of LTIP units ("LTIP Units"). An LTIP Unit is a class of limited partnership interest of the Operating Partnership that is structured as a “profits interest” for U.S. federal income tax purposes. Generally, LTIP Units entitle the holder to receive distributions from the Operating Partnership that are equivalent to the dividends and distributions that would be made with respect to the number of shares of Common Stock underlying such LTIP Units, though receipt of such distributions may be delayed or made contingent on vesting. Once an LTIP Unit has vested and received allocations of book income sufficient to increase the book capital account balance associated with such LTIP Unit (which will initially be zero) to equal, on a per-unit basis, the book capital account balance associated with a “common” Limited Partner Unit of the Operating Partnership, it automatically becomes a common Limited Partner Unit that is convertible by the holder into one share of Common Stock or a cash equivalent, at the Company’s option. Awards with Performance Measures During the six months ended June 30, 2019, the Company granted 36,064 performance units ("Performance units") and 166,942 LTIP Units, based on performance-based criteria ("Performance LTIP Units" and, together with the Performance units, collectively the "Performance Awards") to certain employees, which had a fair value of $2,527 on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The Performance Awards vest based upon the relative total shareholder return ("TSR") of the Company's common stock compared to a weighted average TSR of the MSCI US REIT Index and the NAREIT Industrial Index over a performance period of three years. Compensation expense is charged to earnings over the vesting periods for Performance Awards. At the end of the measuring period, vested Performance units convert into shares of common stock. Service Based Awards For the six months ended June 30, 2019, the Company awarded 87,606 shares of restricted stock awards and 112,428 of LTIP Units based on service-based criteria ("Service LTIP Units") to certain employees and outside directors, which had an aggregate fair value of $6,727 on the date such awards were approved by the Compensation Committee of the Board of Directors. Both the restricted stock awards and Service LTIP Units granted to employees were based upon the prior achievement of certain corporate performance goals and will vest ratably over a period of three years based on continued employment. Restricted Stock awards and Service LTIP Units granted to outside directors vest after a one year period. The Operating Partnership issued restricted Unit awards to the Company in the same amount for the restricted stock awards. Compensation expense is charged to earnings over the vesting periods for both the restricted stock/restricted Unit awards and the Service LTIP Units. Outstanding Restricted Stock/Restricted Unit Awards, Performance Units and LTIP Units We recognized $2,053 and $1,997 for the three months ended June 30, 2019 and 2018, respectively and $3,815 and $3,686 for the six months ended June 30, 2019 and 2018, respectively, in compensation expense related to the amortization of restricted stock or restricted Unit awards, Performance units, and LTIP Units. Restricted stock or restricted Unit award, Performance unit and LTIP Unit amortization capitalized in connection with development activities was $238 and $442 for the three and six months ended June 30, 2019 and was not significant for the comparable 2018 periods. At June 30, 2019, we had $13,093 in unrecognized compensation related to unvested restricted stock or restricted Unit awards, Performance units and LTIP Units. The weighted average period that the unrecognized compensation is expected to be recognized is 1.02 years.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Our objectives in using derivatives are to add stability to interest expense and to manage our cash flow volatility and exposure to interest rate movements. To accomplish these objectives, we primarily use derivative instruments as part of our interest rate risk management strategy. Derivative instruments designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Fair Value Hedges During December 2018, in anticipation of issuing long-term debt in the future, we entered into two treasury locks with an aggregate notional value of $100,000 to manage our exposure to changes in the ten-year U.S. Treasury rate (the "2018 Treasury Locks"). During April 2019, we paid $3,149 to settle the 2018 Treasury Locks with our counterparties. The 2018 Treasury Locks fixed the ten-year U.S. Treasury rate at a weighted average of 2.93%. We had designated the 2018 Treasury Locks as cash flow hedges and will amortize the payment made to our counterparties into interest expense over the 10-year period which corresponds to the term of our newly issued private placement debt (see Note 14). In connection with the originations of the Unsecured Term Loans (see Note 4), we entered into interest rate swaps to manage our exposure to changes in the one month LIBOR rate. The four interest rate swaps, which fix the variable rate of the 2014 Unsecured Term Loan, have an aggregate notional value of $200,000, mature on January 29, 2021 and fix the LIBOR rate at a weighted average rate of 2.29% (the "2014 Swaps"). The six interest rate swaps, which fix the variable rate of the 2015 Unsecured Term Loan, have an aggregate notional value of $260,000, mature on September 12, 2022 and fix the LIBOR rate at a weighted average rate of 1.79% (the "2015 Swaps"). We designated the 2014 Swaps and 2015 Swaps as cash flow hedges. Our agreements with our derivative counterparties contain provisions where if we default on any of our indebtedness, then we could also be declared in default on our derivative obligations subject to certain thresholds. As of June 30, 2019, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements. If we had breached these agreements, we could have been required to settle our obligations under the agreements at their termination value. The following table sets forth our financial liabilities related to the 2015 Swaps and the 2014 Swaps, which are included in the line item Accounts Payable, Accrued Expenses and Other Liabilities and are accounted for at fair value on a recurring basis as of June 30, 2019:
There was no ineffectiveness recorded on the 2014 Swaps and the 2015 Swaps during the six months ended June 30, 2019. See Note 7 for more information regarding our derivatives. The estimated fair value of the 2014 Swaps and the 2015 Swaps was determined using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments are incorporated in the fair value to account for potential non-performance risk, including our own non-performance risk and the respective counterparty's non-performance risk. We determined that the significant inputs used to value the 2014 Swaps and the 2015 Swaps fell within Level 2 of the fair value hierarchy.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions During the six months ended June 30, 2019, we recognized fees of $69 from the Joint Venture related to asset management and development services provided to the Joint Venture. At June 30, 2019, we had a receivable from the Joint Venture of $46 related to the asset management and development fees. See Note 5 for more information on the Joint Venture. At June 30, 2019 and December 31, 2018, the Operating Partnership had receivable balances of $10,059 and $10,118, respectively, from a direct wholly-owned subsidiary of the Company.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, we are involved in legal actions arising from the ownership of our industrial properties. In our opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on our consolidated financial position, operations or liquidity. In conjunction with the development of industrial properties, we have entered into agreements with general contractors for the construction of industrial properties. At June 30, 2019, we had 14 industrial properties totaling approximately 4.5 million square feet of GLA under construction. The estimated total investment as of June 30, 2019 is approximately $336,500. Of this amount, approximately $188,400 remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated total investment.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Disclosures | Leases Lessee Disclosures We are a lessee on a limited number of ground and office leases (the "Operating Leases"). Our office leases have remaining lease terms of less than one year to seven years and our ground leases have remaining terms of 35 years to 52 years. For the six months ended June 30, 2019, we recognized $927 of operating lease expense, inclusive of short-term and variable lease costs which are not significant. The following is a schedule of the maturities of operating lease liabilities for the next five years as of June 30, 2019, and thereafter:
(A) Calculated using the discount rate for each lease. As of June 30, 2019, our weighted average remaining lease term for the Operating Leases is 34.3 years and the weighted average discount rate is 7.4%. Future minimum rental payments for the Operating Leases as of December 31, 2018 are as follows:
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Lessor Disclosures | Lessor Disclosures Our properties and certain land parcels are leased to tenants and classified as operating leases. Future minimum rental receipts, excluding variable payments and tenant reimbursements of expenses, under non-cancelable operating leases executed as of June 30, 2019 are approximately as follows:
Future minimum rental receipts, excluding tenant reimbursements of expenses, under non-cancelable operating leases executed as of December 31, 2018 were approximately as follows:
Several of our operating leases include options to extend the lease term. For purposes of determining the lease term, we exclude these option periods unless it is reasonably certain at lease commencement that the option will be exercised. Also, four leases include options that grant the lessee a right to purchase the property at various times at appraised fair market value or at a fixed price. For purposes of determining lease term, we exclude the impact of a purchase option unless it is reasonably certain at lease commencement that the lessee will exercise the option.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events From July 1, 2019 to July 26, 2019, we acquired three industrial properties and two land parcels for an aggregate purchase price of approximately $31,676, excluding transaction costs. In addition, we sold one industrial property and one land parcel for approximately $6,244, excluding transaction costs. On July 23, 2019, the Operating Partnership issued $150,000 of 3.97% Series E Guaranteed Senior Notes due July 23, 2029 (the "2029 II Private Placement Notes") in a private placement pursuant to a Note and Guaranty Agreement dated May 16, 2019. The 2029 II Private Placement Notes are unsecured obligations of the Operating Partnership that are fully and unconditionally guaranteed by the Company and require semi-annual interest payments.
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Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2019 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the accounting policies described in the consolidated financial statements and related notes included in our annual report on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2018 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2018 Form 10-K, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The following notes to these interim consolidated financial statements highlight significant changes to the notes included in the December 31, 2018 audited consolidated financial statements included in our 2018 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission.
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Use of Estimates | Use of Estimates In order to conform with GAAP, in preparation of our consolidated financial statements we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of June 30, 2019 and December 31, 2018, and the reported amounts of revenues and expenses for the three and six months ended June 30, 2019 and 2018. Actual results could differ from those estimates. In our opinion, the accompanying unaudited interim consolidated financial statements reflect all adjustments necessary for a fair statement of our financial position as of June 30, 2019 and December 31, 2018, the results of our operations and comprehensive income for each of the three and six months ended June 30, 2019 and 2018, and our cash flows for each of the six months ended June 30, 2019 and 2018. All adjustments are of a normal recurring nature.
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Reclassifications | Reclassifications
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which amended the existing accounting standards for lease accounting to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet. We adopted the standard effective January 1, 2019 and have elected to use January 1, 2019 as our date of initial application. Consequently, financial information will not be updated and disclosures required under the new standard will not be provided for periods presented before January 1, 2019 as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. As a lessor, our rental revenue remained mainly consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. The new standard defines initial direct costs as only the incremental costs of signing a lease. As such, certain compensation and certain external legal fees related to the execution of successful lease agreements no longer meet the definition of initial direct costs under the new standard and will be accounted for in the line item General and Administrative Expense. However, the adoption of the standard, along with the adoption of ASU No. 2018-11, Leases - Targeted Improvements which the FASB issued in July 2018, did change our presentation of our results from operations in the Consolidated Statements of Operations. The main changes caused by the adoption of the standards are:
We are a lessee on a limited number of ground and office leases. Under the new standard, the expense pattern for these leases is generally consistent with that of our historical recognition; however, we are required to record right-of-use assets and lease liabilities on our Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at lease commencement to determine the present value of lease payments. For leases that commenced prior to the effective date of the standard, we recognized right-of-use assets and lease liabilities based on the present value of remaining lease payments and the incremental borrowing rate on the date of adoption. We have elected the short term lease exemption for certain qualifying leases with lease terms of twelve months or less and, accordingly, did not record right-of-use assets and lease liabilities. We have also elected the practical expedient to not separate lease and non-lease components. For additional disclosures related to leases, refer to Note 13. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeting Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). ASU 2017-12 is intended to better align financial reporting for hedging activities with the economic objectives of those activities. We adopted ASU 2017-02 effective January 1, 2019, and the adoption did not impact our financial condition or results of operations.
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Investment in Real Estate Investment in Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary of Acquisition Purchase Price Allocation |
The revenue and net income associated with the acquisition of the industrial properties and land parcels, since their respective acquisition dates, are not significant for the six months ended June 30, 2019.
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Indebtedness (Tables) |
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Indebtedness | The following table discloses certain information regarding our indebtedness:
_______________ (A) The interest rate at June 30, 2019 also reflects the derivative instruments we entered into to effectively convert the variable rate to a fixed rate. See Note 10. (B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized debt issuance costs of $2,927 and $3,554 as of June 30, 2019 and December 31, 2018, respectively, which are included in the line item Prepaid Expenses and Other Assets, Net.
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Schedule of Maturities | The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and debt issuance costs, for the next five years as of June 30, and thereafter:
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Summary of Indebtedness at Estimated Fair Value | At June 30, 2019 and December 31, 2018, the fair value of our indebtedness was as follows:
_______________ (A) The carrying amounts include unamortized premiums and discounts and exclude unamortized debt issuance costs.
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Variable Interest Entities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Partnerships' Summarized Balance Sheet | The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets, net of intercompany amounts:
|
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest Rollforward | The following table summarizes the changes in noncontrolling interest for the Company for the six months ended June 30, 2019 and 2018:
_______________ (A) During the six months ended June 30, 2019, 297,216 LTIP Units were issued to certain employees and directors. (B) During the six months ended June 30, 2018, 1,019,677 Limited Partner Units were converted into an equivalent number of shares of common stock of the Company
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First Industrial, L.P. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest Rollforward | The following table summarizes the changes in noncontrolling interest for the Operating Partnership for the six months ended June 30, 2019 and 2018:
|
Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | The following table summarizes the changes in accumulated other comprehensive income by component for the Company and the Operating Partnership for the six months ended June 30, 2019:
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Reclassification Out of Accumulated Other Comprehensive Income | The following table summarizes the reclassifications out of accumulated other comprehensive income for both the Company and the Operating Partnership for the three and six months ended June 30, 2019 and 2018:
|
Earnings Per Share / Unit (EPS / EPU) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share / Unit | The computation of basic and diluted EPS of the Company is presented below:
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First Industrial, L.P. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share / Unit | The computation of basic and diluted EPU of the Operating Partnership is presented below:
|
Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements on Recurring Basis | The following table sets forth our financial liabilities related to the 2015 Swaps and the 2014 Swaps, which are included in the line item Accounts Payable, Accrued Expenses and Other Liabilities and are accounted for at fair value on a recurring basis as of June 30, 2019:
|
Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Operating Lease Liabilities | The following is a schedule of the maturities of operating lease liabilities for the next five years as of June 30, 2019, and thereafter:
(A) Calculated using the discount rate for each lease.
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Lessee, Operating Leases | Future minimum rental payments for the Operating Leases as of December 31, 2018 are as follows:
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Lessor, Operating Lease, Payments to be Received, Maturity | Our properties and certain land parcels are leased to tenants and classified as operating leases. Future minimum rental receipts, excluding variable payments and tenant reimbursements of expenses, under non-cancelable operating leases executed as of June 30, 2019 are approximately as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental receipts, excluding tenant reimbursements of expenses, under non-cancelable operating leases executed as of December 31, 2018 were approximately as follows:
|
Organization - Additional Information (Details) ft² in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
ft²
Property
State
| |
Organization [Line Items] | |
Company's ownership interest | 97.80% |
Limited partners' ownership interest in the Operating Partnership | 2.20% |
Number of industrial properties | Property | 462 |
Number of states in which industrial properties are located | State | 21 |
Gross leasable area (GLA) of industrial properties owned | ft² | 63.4 |
Other Real Estate Partnerships | |
Organization [Line Items] | |
Company's ownership interest | 100.00% |
Number of Other Real Estate Partnerships | 8 |
Operating Partnership's minimum ownership interest in the Other Real Estate Partnerships | 99.00% |
General partners' minimum ownership interest in the Other Real Estate Partnerships | 0.01% |
Joint Venture | |
Organization [Line Items] | |
Equity Method Investment, Ownership Percentage | 49.00% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Real Estate Taxes | $ 1,862 | $ 3,748 |
Investment in Real Estate - Additional Information (Details) $ in Thousands, ft² in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019
USD ($)
ft²
Property
|
Jun. 30, 2018
Property
|
|
Real Estate Properties [Line Items] | ||
Number of industrial properties | 462 | |
Gross leasable area (GLA) of industrial properties | ft² | 63.4 | |
Acquisition Activity | ||
Real Estate Properties [Line Items] | ||
Number of industrial properties | 4 | |
Gross leasable area (GLA) of industrial properties | ft² | 0.3 | |
Number of Land Parcels | 4 | |
Disposition Activity | ||
Real Estate Properties [Line Items] | ||
Number of industrial properties | 2 | |
Gross leasable area (GLA) of industrial properties | ft² | 0.1 | |
Proceeds from sale of industrial properties | $ | $ 12,091 | |
Gain on sale of real estate | $ | $ 889 | |
Joint Venture | Acquisition Activity | ||
Real Estate Properties [Line Items] | ||
Number of Land Parcels | 1 | |
Joint Venture | Disposition Activity | ||
Real Estate Properties [Line Items] | ||
Number of Land Parcels | 3 | 1 |
Investment in Real Estate Investment in Real Estate - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Real Estate [Line Items] | ||
Land | $ 934,398 | $ 909,318 |
Buildings and Improvements | 2,737,139 | $ 2,704,850 |
Acquisition Activity | ||
Real Estate [Line Items] | ||
Land | 26,305 | |
Buildings and Improvements | 20,092 | |
Purchase price of industrial properties acquired | 48,582 | |
Acquisition Activity | In-Place Leases | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible assets, fair value | (2,585) | |
Acquisition Activity | Below Market Leases | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible assets, fair value | 656 | |
Acquisition Activity | Other Assets (leasing commissions) | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible liabilities, fair value | $ 256 |
Indebtedness - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 1,388,845 | ||||
Unsecured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unamortized Debt Issuance Costs | $ 2,927 | $ 3,554 | |||
Interest Rate | [1] | 3.51% | |||
Mortgage Loans Payable | |||||
Debt Instrument [Line Items] | |||||
Unamortized Debt Issuance Costs | $ 917 | 1,246 | |||
Extinguishment of debt, amount | 72,073 | ||||
Net carrying value of industrial properties collateralized by mortgage loans | 336,242 | ||||
Long-term Debt, Gross | $ 222,274 | 297,610 | |||
2014 Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [1] | 3.39% | |||
Long-term Debt, Gross | $ 200,000 | 200,000 | |||
2015 Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [1] | 2.89% | |||
Long-term Debt, Gross | $ 260,000 | 260,000 | |||
2028 Private Placement Notes | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.86% | ||||
Long-term Debt, Gross | $ 150,000 | 150,000 | |||
Effective Interest Rate | 3.86% | ||||
2030 Private Placement Notes | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.96% | ||||
Long-term Debt, Gross | $ 150,000 | $ 150,000 | |||
Effective Interest Rate | 3.96% | ||||
|
Indebtedness - Schedule of Maturities (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2019 | $ 4,264 |
2020 | 59,046 |
2021 | 425,113 |
2022 | 341,552 |
2023 | 321 |
Thereafter | 558,549 |
Total | $ 1,388,845 |
Indebtedness - Summary of Indebtedness at Estimated Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Mortgage Loans Payable, Net | $ 227,413 | $ 304,508 | |||
Senior Unsecured Notes, Net | 585,968 | 546,607 | |||
Unsecured Term Loans | 461,106 | 461,317 | |||
Unsecured Credit Facility | 158,177 | 0 | |||
Total | 1,432,664 | 1,312,432 | |||
Carrying Amount (A) | |||||
Debt Instrument [Line Items] | |||||
Mortgage Loans Payable, Net | [1] | 222,274 | 297,716 | ||
Senior Unsecured Notes, Net | [1] | 548,497 | 548,494 | ||
Unsecured Term Loans | [1] | 460,000 | 460,000 | ||
Unsecured Credit Facility | [1] | 158,000 | 0 | ||
Total | [1] | $ 1,388,771 | $ 1,306,210 | ||
|
Variable Interest Entities - Summarized Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets: | ||
Net Investment in Real Estate | $ 2,973,831 | $ 2,861,860 |
Total Assets | 3,254,901 | 3,142,691 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 221,357 | 296,470 |
Total Liabilities and Equity/Partners' Capital | 3,254,901 | 3,142,691 |
Other Real Estate Partnerships | ||
Assets: | ||
Net Investment in Real Estate | 255,559 | 260,528 |
Other Assets, Net | 23,742 | 25,059 |
Total Assets | 279,301 | 285,587 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 13,164 | 20,497 |
Other Liabilities, Net | 7,520 | 9,045 |
Partners' Capital | 258,617 | 256,045 |
Total Liabilities and Equity/Partners' Capital | $ 279,301 | $ 285,587 |
Variable Interest Entities - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019
USD ($)
Property
|
Jun. 30, 2018
USD ($)
Property
|
Jun. 30, 2019
USD ($)
Property
|
Jun. 30, 2018
USD ($)
Property
|
|
Variable Interest Entity [Line Items] | ||||
Equity in Income (Loss) of Joint Venture | $ 15,516 | $ (2) | $ 16,360 | $ (2) |
Joint Venture | ||||
Variable Interest Entity [Line Items] | ||||
Number of Acres | Property | 532 | 532 | ||
Purchase price | $ 49,000 | |||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||
Proceeds from Sale of Equity Method Investments | $ 57,178 | 3,973 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 3,121 | 14,816 | ||
Net Income of Joint Venture | $ 30,148 | $ 154 | ||
Equity in Income (Loss) of Joint Venture | $ 4,900 | |||
Disposition Activity | Joint Venture | ||||
Variable Interest Entity [Line Items] | ||||
Number of Acres | Property | 236 | 21 | 236 | 21 |
Number of Land Parcels | Property | 3 | 1 | 3 | 1 |
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 30,236 | $ 181 | ||
Acquisition Activity | ||||
Variable Interest Entity [Line Items] | ||||
Purchase price | $ 48,582 | |||
Number of Land Parcels | Property | 4 | 4 | ||
Acquisition Activity | Joint Venture | ||||
Variable Interest Entity [Line Items] | ||||
Number of Acres | Property | 39 | 39 | ||
Number of Land Parcels | Property | 1 | 1 |
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Class of Stock [Line Items] | ||||||
Restricted stock/Unit awards and LTIP Unit Awards issued | 297,216 | |||||
Conversion of Limited Partner Units to Common Stock / General Partner Units | $ 0 | $ 0 | $ 0 | $ 0 | ||
Limited Partners' Capital Account, Units Retired | 33,333 | |||||
Common Stock Dividends and Unit Distributions | $ 29,864 | $ 29,922 | 28,209 | 27,107 | ||
Common Stock / Operating Partnership Units | ||||||
Class of Stock [Line Items] | ||||||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Shares | 1,019,677 | |||||
Conversion of Limited Partner Units to Common Stock / General Partner Units | $ 12,327 | |||||
Common Stock Dividends and Unit Distributions | 59,786 | |||||
First Industrial, L.P. | ||||||
Class of Stock [Line Items] | ||||||
Conversion of Limited Partner Units to Common Stock / General Partner Units | 0 | 0 | 0 | 0 | ||
Noncontrolling Interest | ||||||
Class of Stock [Line Items] | ||||||
Conversion of Limited Partner Units to Common Stock / General Partner Units | (7,318) | (5,009) | 0 | (12,327) | ||
Common Stock Dividends and Unit Distributions | $ 652 | $ 664 | $ 643 | $ 775 | $ 1,316 | $ 1,418 |
Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership - Summary of Changes in Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | $ 34,397 | $ 34,397 | ||||
Net Income | $ 913 | $ 1,195 | 1,450 | $ 2,367 | ||
Amortization of Unearned Compensation related to the Issuance of LTIP Units (A) | 2,053 | (2,035) | 1,997 | $ (4,385) | ||
Other Comprehensive Income (Loss) | (4,463) | (6,330) | 2,748 | 6,549 | ||
Unit Distributions | (29,864) | (29,922) | (28,209) | (27,107) | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units | 0 | 0 | 0 | 0 | ||
Retirement of Limited Partner Units | (934) | |||||
Reallocation - Additional Paid-in-Capital | 0 | 0 | 0 | 0 | ||
Reallocation - Other Comprehensive Income | 0 | 0 | ||||
Ending Balance | 37,859 | 37,859 | ||||
Noncontrolling Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | 34,397 | 48,077 | 34,397 | 48,077 | ||
Net Income | 1,450 | 2,367 | ||||
Amortization of Unearned Compensation related to the Issuance of LTIP Units (A) | 511 | 270 | 781 | 0 | ||
Other Comprehensive Income (Loss) | (101) | (140) | 17 | 183 | (241) | 200 |
Unit Distributions | (652) | (664) | (643) | (775) | (1,316) | (1,418) |
Conversion of Limited Partner Units to Common Stock / General Partner Units | (7,318) | (5,009) | 0 | (12,327) | ||
Retirement of Limited Partner Units | (934) | 0 | (934) | |||
Reallocation - Additional Paid-in-Capital | (458) | 3,238 | 1,926 | 292 | 2,780 | 2,218 |
Reallocation - Other Comprehensive Income | 1 | 7 | 8 | 0 | ||
Ending Balance | 37,859 | 38,183 | 37,859 | 38,183 | ||
First Industrial, L.P. | ||||||
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | 857 | 857 | ||||
Net Income | 24 | 22 | 50 | 43 | ||
Other Comprehensive Income (Loss) | (4,463) | (6,330) | 2,748 | 6,549 | ||
Contributions | 5 | 5 | 116 | |||
Distributions | (21) | (43) | (43) | (21) | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units | 0 | 0 | 0 | 0 | ||
Retirement of Limited Partner Units | (934) | |||||
Ending Balance | 848 | 848 | ||||
First Industrial, L.P. | Noncontrolling Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | 857 | 779 | 857 | 779 | ||
Net Income | 50 | 43 | ||||
Contributions | 5 | 5 | 116 | 5 | 121 | |
Distributions | (21) | $ (43) | (43) | $ (21) | (64) | (64) |
Ending Balance | $ 848 | $ 879 | $ 848 | $ 879 |
Accumulated Other Comprehensive Income (Changes in AOCI) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Accumulated Other Comprehensive Income [Line Items] | |
Beginning Balance | $ 1,679,911 |
Ending Balance | 1,674,403 |
Derivative Instruments | |
Accumulated Other Comprehensive Income [Line Items] | |
Beginning Balance | 3,574 |
Other Comprehensive Loss Before Reclassifications | (9,715) |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | (1,078) |
Net Current Period Other Comprehensive Loss | (10,793) |
Ending Balance | (7,219) |
Comprehensive (Income) Loss Attributable to Noncontrolling Interest of the Company | |
Accumulated Other Comprehensive Income [Line Items] | |
Beginning Balance | (72) |
Other Comprehensive Loss Before Reclassifications | 233 |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | 0 |
Net Current Period Other Comprehensive Loss | 233 |
Ending Balance | 161 |
Accumulated Other Comprehensive Income (Loss) of the Company | |
Accumulated Other Comprehensive Income [Line Items] | |
Beginning Balance | 3,502 |
Other Comprehensive Loss Before Reclassifications | (9,482) |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | (1,078) |
Net Current Period Other Comprehensive Loss | (10,560) |
Ending Balance | (7,058) |
First Industrial, L.P. | Accumulated Other Comprehensive Income (Loss) of the Operating Partnership | |
Accumulated Other Comprehensive Income [Line Items] | |
Beginning Balance | 3,574 |
Other Comprehensive Loss Before Reclassifications | (9,715) |
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income | (1,078) |
Net Current Period Other Comprehensive Loss | (10,793) |
Ending Balance | $ (7,219) |
Accumulated Other Comprehensive Income (Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Accumulated Other Comprehensive Income [Line Items] | ||||
Interest Expense - Amortization of Derivative Instruments | $ 12,332 | $ 12,603 | $ 25,099 | $ 25,394 |
Total | (12,029) | 11,619 | (25,835) | 18,023 |
Interest Rate Swap | Reclassification out of Accumulated Other Comprehensive Income | Derivative Instruments | ||||
Accumulated Other Comprehensive Income [Line Items] | ||||
Interest Expense - Amortization of Derivative Instruments | 24 | 23 | 48 | 47 |
Interest Expense - Settlement Payments | (550) | 97 | (1,126) | 560 |
Total | $ (526) | $ 120 | $ (1,078) | $ 607 |
Accumulated Other Comprehensive Income - Additional Information (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Amortization to be reclassified from OCI into income | $ 391 |
Earnings Per Share / Unit (EPS / EPU) - Computation of Basic and Diluted EPS / EPU (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Numerator: | ||||
Net Income Available to Common Stockholders / Unitholders and Participating Securities | $ 39,800 | $ 45,209 | $ 63,603 | $ 81,501 |
Net Income Allocable to Participating Securities | (89) | (151) | (149) | (248) |
Net Income Available to Common Stockholders / Unitholders | $ 39,711 | $ 45,058 | $ 63,454 | $ 81,253 |
Denominator: | ||||
Weighted Average Shares / Units - Basic | 126,206 | 123,616 | 126,200 | 121,741 |
Performance units and certain Performance LTIP Units (See Note 9) | 283 | 469 | 272 | 417 |
Weighted Average Shares / Units - Diluted | 126,489 | 124,085 | 126,472 | 122,158 |
Basic and Diluted Earnings Per Share / Unit: | ||||
Net Income Available to Common Stockholders / Unitholders | $ 0.31 | $ 0.36 | $ 0.50 | $ 0.67 |
First Industrial, L.P. | ||||
Numerator: | ||||
Net Income Available to Common Stockholders / Unitholders and Participating Securities | $ 40,689 | $ 46,382 | $ 65,003 | $ 83,825 |
Net Income Allocable to Participating Securities | (128) | (151) | (204) | (248) |
Net Income Available to Common Stockholders / Unitholders | $ 40,561 | $ 46,231 | $ 64,799 | $ 83,577 |
Denominator: | ||||
Weighted Average Shares / Units - Basic | 128,831 | 126,832 | 128,824 | 125,289 |
Performance units and certain Performance LTIP Units (See Note 9) | 390 | 469 | 375 | 417 |
Weighted Average Shares / Units - Diluted | 129,221 | 127,301 | 129,199 | 125,706 |
Basic and Diluted Earnings Per Share / Unit: | ||||
Net Income Available to Common Stockholders / Unitholders | $ 0.31 | $ 0.36 | $ 0.50 | $ 0.67 |
Earnings Per Share / Unit (EPS / EPU) - Additional Information (Details) - shares |
Jun. 30, 2019 |
Jun. 30, 2018 |
---|---|---|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Unvested Restricted Stock / Unit Awards | 274,624 | 413,193 |
First Industrial, L.P. | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Unvested Restricted Stock / Unit Awards | 400,181 | 413,193 |
Long-Term Compensation - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock/Unit awards and LTIP Unit Awards issued | 297,216 | |||
Amortization related to restricted stock/Unit awards and LTIP Unit Awards | $ 2,053 | $ 1,997 | $ 3,815 | $ 3,686 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 238 | 442 | ||
Unrecognized compensation related to unvested restricted stock/Unit awards and LTIP Unit Awards | 13,093 | $ 13,093 | ||
Weighted average period of unrecognized compensation expected to be recognized | 1 year 7 days | |||
Management | Performance Share/Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock/Unit awards and LTIP Unit Awards issued | 36,064 | |||
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | 2,527 | $ 2,527 | ||
Vesting period of restricted stock/Unit awards issued | 3 years | |||
Management | LTIP Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock/Unit awards and LTIP Unit Awards issued | 166,942 | |||
Management | Restricted Stock/Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock/Unit awards and LTIP Unit Awards issued | 87,606 | |||
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 6,727 | $ 6,727 | ||
Vesting period of restricted stock/Unit awards issued | 3 years | |||
Management | Service LTIP Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock/Unit awards and LTIP Unit Awards issued | 112,428 | |||
Director | Restricted Stock/Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of restricted stock/Unit awards issued | 1 year |
Derivatives - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
|
Derivative [Line Items] | ||||
Payments to Settle Derivative Instruments | $ (3,149) | $ 0 | $ (3,149) | $ 0 |
2018 Treasury Locks | ||||
Derivative [Line Items] | ||||
Swaps, Number of Instruments Held | 2 | 2 | ||
Swaps, Notional Amount | $ 100,000 | $ 100,000 | ||
Debt instrument, LIBOR Rate | ten-year U.S. Treasury | |||
Payments to Settle Derivative Instruments | $ 3,149 | |||
Swaps, Average Fixed Interest Rate | 2.93% | 2.93% | ||
2014 Swaps | ||||
Derivative [Line Items] | ||||
Swaps, Number of Instruments Held | 4 | 4 | ||
Swaps, Notional Amount | $ 200,000 | $ 200,000 | ||
Debt instrument, LIBOR Rate | one month LIBOR | |||
Swaps, Average Fixed Interest Rate | 2.29% | 2.29% | ||
2015 Swaps | ||||
Derivative [Line Items] | ||||
Swaps, Number of Instruments Held | 6 | 6 | ||
Swaps, Notional Amount | $ 260,000 | $ 260,000 | ||
Debt instrument, LIBOR Rate | one month LIBOR | |||
Swaps, Average Fixed Interest Rate | 1.79% | 1.79% |
Derivatives - Fair Value Measurements on Recurring Basis (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
2015 Swaps | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | $ (1,421) |
2015 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | 0 |
2015 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | (1,421) |
2015 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | 0 |
2014 Swaps | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | (1,789) |
2014 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | 0 |
2014 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | (1,789) |
2014 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Liability, Fair Value | $ 0 |
Related Party Transactions Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | ||
Receivable balance due from a direct wholly-owned subsidiary | $ 10,059 | $ 10,118 |
Joint Venture | ||
Related Party Transaction [Line Items] | ||
Asset Management Fees | 69 | |
Receivable balance due from joint venture | $ 46 |
Commitments and Contingencies - Additional Information (Details) $ in Thousands, ft² in Millions |
Jun. 30, 2019
USD ($)
ft²
Property
|
---|---|
Other Commitments [Line Items] | |
Number of industrial properties | Property | 462 |
Gross leasable area (GLA) of industrial properties | ft² | 63.4 |
Development Activity | |
Other Commitments [Line Items] | |
Number of industrial properties | Property | 14 |
Gross leasable area (GLA) of industrial properties | ft² | 4.5 |
Estimated total investment | $ | $ 336,500 |
Estimated total investment remaining to be funded | $ | $ 188,400 |
Lessee Lease Terms (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Lessee Leases [Line Items] | |
Ground Leases Terms Minimum | 35 years |
Ground Leases Terms Maximum | 52 years |
Operating Lease Expense | $ 927 |
Weighted Average Remaining Lease Term | 34 years 3 months 18 days |
Weighted Average Discount Rate | 7.40% |
Minimum | |
Lessee Leases [Line Items] | |
Lessee, Remaining Lease Terms for Office Leases | 1 year |
Maximum | |
Lessee Leases [Line Items] | |
Lessee, Remaining Lease Terms for Office Leases | 7 years |
Lessee Operating Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating Lease Liabilities, Payments Due [Abstract] | ||
Remainder of 2019 | $ 792 | |
2020 | 1,536 | |
2021 | 1,503 | |
2022 | 1,465 | |
2023 | 1,329 | |
Thereafter | 29,025 | |
Total Lease Payments | 35,650 | |
Less Imputed Interest | 23,365 | |
Operating Lease Liabilities | $ 12,285 | $ 0 |
Operating Leases, Lease Income [Abstract] | ||
2019 | 1,464 | |
2020 | 1,536 | |
2021 | 1,503 | |
2022 | 1,465 | |
2023 | 1,329 | |
Thereafter | 29,025 | |
Total | $ 36,322 |
Lessor Operating Leases (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
Property
|
Dec. 31, 2018
USD ($)
|
---|---|---|
Lessor, Lease, Description [Line Items] | ||
Number of industrial properties | Property | 462 | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||
Remainder of 2019 | $ 161,684 | |
2020 | 322,411 | |
2021 | 282,344 | |
2022 | 240,517 | |
2023 | 201,543 | |
Thereafter | 573,652 | |
Total | $ 1,782,151 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2019 | $ 305,689 | |
2020 | 288,817 | |
2021 | 244,743 | |
2022 | 205,097 | |
2023 | 169,243 | |
Thereafter | 451,151 | |
Total | $ 1,664,740 | |
Leases with purchase options [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Number of industrial properties | Property | 4 |
Subsequent Events - Additional Information (Details) $ in Thousands |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Jul. 26, 2019
USD ($)
Property
|
Jun. 30, 2019
USD ($)
Property
|
Jul. 23, 2019
USD ($)
|
|
Subsequent Event [Line Items] | |||
Number of industrial properties | 462 | ||
Long-term Debt, Gross | $ | $ 1,388,845 | ||
Acquisition Activity | |||
Subsequent Event [Line Items] | |||
Number of industrial properties | 4 | ||
Number of Land Parcels | 4 | ||
Purchase price of industrial properties acquired | $ | $ 48,582 | ||
Disposition Activity | |||
Subsequent Event [Line Items] | |||
Number of industrial properties | 2 | ||
Proceeds from sale of industrial properties | $ | $ 12,091 | ||
Subsequent Event | Acquisition Activity | |||
Subsequent Event [Line Items] | |||
Number of industrial properties | 3 | ||
Number of Land Parcels | 2 | ||
Purchase price of industrial properties acquired | $ | $ 31,676 | ||
Subsequent Event | Disposition Activity | |||
Subsequent Event [Line Items] | |||
Number of industrial properties | 1 | ||
Number of Land Parcels | 1 | ||
Proceeds from sale of industrial properties | $ | $ 6,244 | ||
2029 II Private Placement Notes | |||
Subsequent Event [Line Items] | |||
Long-term Debt, Gross | $ | $ 150,000 | ||
2029 II Private Placement Notes | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Long-term Debt, Gross | $ | $ 150,000 | ||
Effective Interest Rate | 3.97% |
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