ý | 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 |
Maryland (First Industrial Realty Trust, Inc.) | 36-3935116 (First Industrial Realty Trust, Inc.) | |
Delaware ( First Industrial, L.P.) | 36-3924586 (First Industrial, L.P.) | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
311 S. Wacker Drive, Suite 3900, Chicago, Illinois | 60606 | |
(Address of principal executive offices) | (Zip Code) |
First Industrial Realty Trust, Inc. | Yes þ No o |
First Industrial, L.P. | Yes þ No o |
First Industrial Realty Trust, Inc. | Yes þ No o |
First Industrial, L.P. | Yes þ No o |
First Industrial Realty Trust, Inc.: | |||||||
Large accelerated filer | þ | Accelerated filer | o | ||||
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
First Industrial, L.P.: | |||||||
Large accelerated filer | o | Accelerated filer | þ | ||||
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
First Industrial Realty Trust, Inc. | Yes o No þ |
First Industrial, L.P. | Yes o No þ |
• | Stockholders’ Equity, Noncontrolling Interest and Partners’ Capital. The 3.7% equity interest in the Operating Partnership held by entities other than the Company are 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, though 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 |
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited) (In thousands except share and per share data) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in Real Estate: | |||||||
Land | $ | 788,401 | $ | 745,912 | |||
Buildings and Improvements | 2,506,453 | 2,511,737 | |||||
Construction in Progress | 50,543 | 36,319 | |||||
Less: Accumulated Depreciation | (802,166 | ) | (791,330 | ) | |||
Net Investment in Real Estate | 2,543,231 | 2,502,638 | |||||
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $1,194 and $1,171 | 2,370 | 2,510 | |||||
Cash and Cash Equivalents | 3,180 | 3,987 | |||||
Restricted Cash | 4,272 | 23,005 | |||||
Tenant Accounts Receivable, Net | 5,720 | 5,612 | |||||
Deferred Rent Receivable, Net | 64,062 | 62,335 | |||||
Deferred Leasing Intangibles, Net | 32,392 | 33,326 | |||||
Prepaid Expenses and Other Assets, Net | 77,192 | 76,395 | |||||
Total Assets | $ | 2,732,419 | $ | 2,709,808 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Indebtedness: | |||||||
Mortgage Loans Payable, Net | $ | 505,451 | $ | 561,241 | |||
Senior Unsecured Notes, Net | 204,839 | 364,457 | |||||
Unsecured Term Loans, Net | 456,137 | 455,970 | |||||
Unsecured Credit Facility | 313,500 | 52,500 | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | 79,952 | 93,699 | |||||
Deferred Leasing Intangibles, Net | 11,462 | 11,841 | |||||
Rents Received in Advance and Security Deposits | 41,029 | 40,153 | |||||
Dividends and Distributions Payable | 22,112 | 14,812 | |||||
Total Liabilities | 1,634,482 | 1,594,673 | |||||
Commitments and Contingencies | — | — | |||||
Equity: | |||||||
First Industrial Realty Trust Inc.’s Stockholders’ Equity: | |||||||
Common Stock ($0.01 par value, 150,000,000 shares authorized and 111,247,508 and 111,027,225 shares issued and outstanding) | 1,113 | 1,111 | |||||
Additional Paid-in-Capital | 1,757,677 | 1,756,415 | |||||
Distributions in Excess of Accumulated Earnings | (680,473 | ) | (674,759 | ) | |||
Accumulated Other Comprehensive Loss | (21,602 | ) | (9,667 | ) | |||
Total First Industrial Realty Trust, Inc.’s Stockholders’ Equity | 1,056,715 | 1,073,100 | |||||
Noncontrolling Interest | 41,222 | 42,035 | |||||
Total Equity | 1,097,937 | 1,115,135 | |||||
Total Liabilities and Equity | $ | 2,732,419 | $ | 2,709,808 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
(Unaudited) (In thousands except per share data) | |||||||
Revenues: | |||||||
Rental Income | $ | 71,752 | $ | 68,210 | |||
Tenant Recoveries and Other Income | 21,715 | 21,756 | |||||
Total Revenues | 93,467 | 89,966 | |||||
Expenses: | |||||||
Property Expenses | 28,367 | 29,791 | |||||
General and Administrative | 7,674 | 6,966 | |||||
Acquisition Costs | 64 | — | |||||
Depreciation and Other Amortization | 31,128 | 28,306 | |||||
Total Expenses | 67,233 | 65,063 | |||||
Other Income (Expense): | |||||||
Gain on Sale of Real Estate | 7,251 | 7,930 | |||||
Interest Expense | (16,259 | ) | (16,642 | ) | |||
Amortization of Deferred Financing Costs | (873 | ) | (746 | ) | |||
Mark-to-Market Loss on Interest Rate Protection Agreements | — | (12,990 | ) | ||||
Total Other Income (Expense) | (9,881 | ) | (22,448 | ) | |||
Income from Continuing Operations Before Equity in Income of Joint Ventures and Income Tax Provision | 16,353 | 2,455 | |||||
Equity in Income of Joint Ventures | — | 71 | |||||
Income Tax Provision | (58 | ) | (60 | ) | |||
Net Income | 16,295 | 2,466 | |||||
Less: Net Income Attributable to the Noncontrolling Interest | (607 | ) | (93 | ) | |||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 15,688 | $ | 2,373 | |||
Basic and Diluted Earnings Per Share: | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ | 0.14 | $ | 0.02 | |||
Dividends/Distributions Per Share | $ | 0.1900 | $ | 0.1275 | |||
Weighted Average Shares Outstanding - Basic | 110,793 | 110,310 | |||||
Weighted Average Shares Outstanding - Diluted | 110,985 | 110,675 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
(Unaudited) (In thousands) | |||||||
Net Income | $ | 16,295 | $ | 2,466 | |||
Mark-to-Market Loss on Interest Rate Protection Agreements | (12,496 | ) | (9,446 | ) | |||
Reclassification of Fair Value of Interest Rate Protection Agreements (See Note 10) | — | 12,990 | |||||
Amortization of Interest Rate Protection Agreements | 102 | 131 | |||||
Foreign Currency Translation Adjustment | — | 15 | |||||
Comprehensive Income | 3,901 | 6,156 | |||||
Comprehensive Income Attributable to Noncontrolling Interest | (145 | ) | (233 | ) | |||
Comprehensive Income Attributable to First Industrial Realty Trust, Inc. | $ | 3,756 | $ | 5,923 |
Common Stock | Additional Paid-in- Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | ||||||||||||||||||
(Unaudited) (In thousands) | |||||||||||||||||||||||
Balance as of December 31, 2015 | $ | 1,111 | $ | 1,756,415 | $ | (674,759 | ) | $ | (9,667 | ) | $ | 42,035 | $ | 1,115,135 | |||||||||
Stock Based Compensation Activity | 2 | 1,117 | (213 | ) | — | — | 906 | ||||||||||||||||
Conversion of Limited Partner Units to Common Stock | — | 98 | — | — | (98 | ) | — | ||||||||||||||||
Reallocation—Additional Paid in Capital | — | 47 | — | — | (47 | ) | — | ||||||||||||||||
Common Stock Dividends and Unit Distributions | — | — | (21,189 | ) | — | (816 | ) | (22,005 | ) | ||||||||||||||
Net Income | — | — | 15,688 | — | 607 | 16,295 | |||||||||||||||||
Other Comprehensive Loss | — | — | — | (11,935 | ) | (459 | ) | (12,394 | ) | ||||||||||||||
Balance as of March 31, 2016 | $ | 1,113 | $ | 1,757,677 | $ | (680,473 | ) | $ | (21,602 | ) | $ | 41,222 | $ | 1,097,937 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
(Unaudited) (In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 16,295 | $ | 2,466 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation | 25,829 | 23,258 | |||||
Amortization of Deferred Financing Costs | 873 | 746 | |||||
Other Amortization | 8,104 | 7,741 | |||||
Provision for Bad Debt | 265 | 498 | |||||
Equity in Income of Joint Ventures | — | (71 | ) | ||||
Gain on Sale of Real Estate | (7,251 | ) | (7,930 | ) | |||
Mark-to-Market Loss on Interest Rate Protection Agreements | — | 12,990 | |||||
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | (2,453 | ) | (3,425 | ) | |||
Increase in Deferred Rent Receivable | (1,839 | ) | (2,272 | ) | |||
Decrease in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | (12,460 | ) | (6,476 | ) | |||
Payments of Discounts Associated with Retirement of Debt | (554 | ) | — | ||||
Cash Book Overdraft | — | 429 | |||||
Net Cash Provided by Operating Activities | 26,809 | 27,954 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of Real Estate | (47,406 | ) | — | ||||
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | (35,905 | ) | (25,556 | ) | |||
Net Proceeds from Sales of Investments in Real Estate | 15,393 | 25,573 | |||||
Contributions to and Investments in Joint Ventures | — | (9 | ) | ||||
Distributions from Joint Ventures | — | 126 | |||||
Repayments of Notes Receivable | — | 2,720 | |||||
Decrease (Increase) in Escrows | 19,477 | (756 | ) | ||||
Net Cash (Used in) Provided by Investing Activities | (48,441 | ) | 2,098 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Financing Costs | (236 | ) | (2,114 | ) | |||
Repurchase and Retirement of Restricted Stock | (5,230 | ) | (2,101 | ) | |||
Common Stock Dividends and Unit Distributions Paid | (14,705 | ) | (11,786 | ) | |||
Repayments on Mortgage Loans Payable | (60,879 | ) | (2,980 | ) | |||
Repayments of Senior Unsecured Notes | (159,125 | ) | — | ||||
Proceeds from Unsecured Credit Facility | 298,000 | 32,000 | |||||
Repayments on Unsecured Credit Facility | (37,000 | ) | (49,000 | ) | |||
Net Cash Provided by (Used in) Financing Activities | 20,825 | (35,981 | ) | ||||
Net Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | (14 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (807 | ) | (5,929 | ) | |||
Cash and Cash Equivalents, Beginning of Year | 3,987 | 9,500 | |||||
Cash and Cash Equivalents, End of Year | $ | 3,180 | $ | 3,557 | |||
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | |||||||
Interest Expense Capitalized in Connection with Development Activity | $ | 449 | $ | 459 | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||||||
Common Stock Dividends and Unit Distributions Payable | $ | 22,112 | $ | 14,912 | |||
Exchange of Limited Partnership Units for Common Stock: | |||||||
Noncontrolling Interest | $ | (98 | ) | $ | (95 | ) | |
Additional Paid-in-Capital | 98 | 95 | |||||
Total | $ | — | $ | — | |||
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | $ | 5,082 | $ | — | |||
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | $ | 16,151 | $ | 8,881 | |||
Write-off of Fully Depreciated Assets | $ | (14,457 | ) | $ | (9,849 | ) |
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited)(In thousands except Unit data) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in Real Estate: | |||||||
Land | $ | 788,401 | $ | 745,912 | |||
Buildings and Improvements | 2,506,453 | 2,511,737 | |||||
Construction in Progress | 50,543 | 36,319 | |||||
Less: Accumulated Depreciation | (802,166 | ) | (791,330 | ) | |||
Net Investment in Real Estate | 2,543,231 | 2,502,638 | |||||
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $1,194 and $1,171 | 2,370 | 2,510 | |||||
Cash and Cash Equivalents | 3,180 | 3,987 | |||||
Restricted Cash | 4,272 | 23,005 | |||||
Tenant Accounts Receivable, Net | 5,720 | 5,612 | |||||
Deferred Rent Receivable, Net | 64,062 | 62,335 | |||||
Deferred Leasing Intangibles, Net | 32,392 | 33,326 | |||||
Prepaid Expenses and Other Assets, Net | 87,877 | 87,110 | |||||
Total Assets | $ | 2,743,104 | $ | 2,720,523 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Liabilities: | |||||||
Indebtedness: | |||||||
Mortgage Loans Payable, Net | $ | 505,451 | $ | 561,241 | |||
Senior Unsecured Notes, Net | 204,839 | 364,457 | |||||
Unsecured Term Loans, Net | 456,137 | 455,970 | |||||
Unsecured Credit Facility | 313,500 | 52,500 | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | 79,952 | 93,699 | |||||
Deferred Leasing Intangibles, Net | 11,462 | 11,841 | |||||
Rents Received in Advance and Security Deposits | 41,029 | 40,153 | |||||
Distributions Payable | 22,112 | 14,812 | |||||
Total Liabilities | 1,634,482 | 1,594,673 | |||||
Commitments and Contingencies | — | — | |||||
Partners’ Capital: | |||||||
First Industrial, L.P.'s Partners' Capital: | |||||||
General Partner Units (111,247,508 and 111,027,225 units outstanding) | 1,049,517 | 1,054,028 | |||||
Limited Partners Units (4,295,884 and 4,305,707 units outstanding) | 80,462 | 80,769 | |||||
Accumulated Other Comprehensive Loss | (22,437 | ) | (10,043 | ) | |||
Total First Industrial L.P.'s Partners’ Capital | 1,107,542 | 1,124,754 | |||||
Noncontrolling Interest | 1,080 | 1,096 | |||||
Total Partners’ Capital | 1,108,622 | 1,125,850 | |||||
Total Liabilities and Partners’ Capital | $ | 2,743,104 | $ | 2,720,523 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
(Unaudited) (In thousands except per Unit data) | |||||||
Revenues: | |||||||
Rental Income | $ | 71,752 | $ | 68,210 | |||
Tenant Recoveries and Other Income | 21,715 | 21,756 | |||||
Total Revenues | 93,467 | 89,966 | |||||
Expenses: | |||||||
Property Expenses | 28,367 | 29,791 | |||||
General and Administrative | 7,674 | 6,949 | |||||
Acquisition Costs | 64 | — | |||||
Depreciation and Other Amortization | 31,128 | 28,306 | |||||
Total Expenses | 67,233 | 65,046 | |||||
Other Income (Expense): | |||||||
Gain on Sale of Real Estate | 7,251 | 7,930 | |||||
Interest Expense | (16,259 | ) | (16,642 | ) | |||
Amortization of Deferred Financing Costs | (873 | ) | (746 | ) | |||
Mark-to-Market Loss on Interest Rate Protection Agreements | — | (12,990 | ) | ||||
Total Other Income (Expense) | (9,881 | ) | (22,448 | ) | |||
Income from Continuing Operations Before Equity in Income of Joint Ventures and Income Tax Provision | 16,353 | 2,472 | |||||
Equity in Income of Joint Ventures | — | 71 | |||||
Income Tax Provision | (58 | ) | (60 | ) | |||
Net Income | 16,295 | 2,483 | |||||
Less: Net Income Attributable to the Noncontrolling Interest | (14 | ) | (26 | ) | |||
Net Income Available to Unitholders and Participating Securities | $ | 16,281 | $ | 2,457 | |||
Basic and Diluted Earnings Per Unit: | |||||||
Net Income Available to Unitholders | $ | 0.14 | $ | 0.02 | |||
Distributions Per Unit | $ | 0.1900 | $ | 0.1275 | |||
Weighted Average Units Outstanding - Basic | 115,096 | 114,681 | |||||
Weighted Average Units Outstanding - Diluted | 115,288 | 115,046 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
(Unaudited) (In thousands) | |||||||
Net Income | $ | 16,295 | $ | 2,483 | |||
Mark-to-Market Loss on Interest Rate Protection Agreements | (12,496 | ) | (9,446 | ) | |||
Reclassification of Fair Value of Interest Rate Protection Agreements (See Note 10) | — | 12,990 | |||||
Amortization of Interest Rate Protection Agreements | 102 | 131 | |||||
Foreign Currency Translation Adjustment | — | (26 | ) | ||||
Comprehensive Income | $ | 3,901 | $ | 6,132 | |||
Comprehensive Income Attributable to Noncontrolling Interest | (14 | ) | (26 | ) | |||
Comprehensive Income Attributable to Unitholders | $ | 3,887 | $ | 6,106 |
General Partner Units | Limited Partner Units | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | |||||||||||||||
(Unaudited) (In thousands) | |||||||||||||||||||
Balance as of December 31, 2015 | $ | 1,054,028 | $ | 80,769 | $ | (10,043 | ) | $ | 1,096 | $ | 1,125,850 | ||||||||
Stock Based Compensation Activity | 906 | — | — | — | 906 | ||||||||||||||
Conversion of Limited Partner Units to General Partner Units | 98 | (98 | ) | — | — | — | |||||||||||||
Unit Distributions | (21,189 | ) | (816 | ) | — | — | (22,005 | ) | |||||||||||
Contributions from Noncontrolling Interest | — | — | — | 3 | 3 | ||||||||||||||
Distributions to Noncontrolling Interest | — | — | — | (33 | ) | (33 | ) | ||||||||||||
Net Income | 15,674 | 607 | — | 14 | 16,295 | ||||||||||||||
Other Comprehensive Loss | — | — | (12,394 | ) | — | (12,394 | ) | ||||||||||||
Balance as of March 31, 2016 | $ | 1,049,517 | $ | 80,462 | $ | (22,437 | ) | $ | 1,080 | $ | 1,108,622 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
(Unaudited) (In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 16,295 | $ | 2,483 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation | 25,829 | 23,258 | |||||
Amortization of Deferred Financing Costs | 873 | 746 | |||||
Other Amortization | 8,104 | 7,741 | |||||
Provision for Bad Debt | 265 | 498 | |||||
Equity in Income of Joint Ventures | — | (71 | ) | ||||
Gain on Sale of Real Estate | (7,251 | ) | (7,930 | ) | |||
Mark-to-Market Loss on Interest Rate Protection Agreements | — | 12,990 | |||||
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | (2,423 | ) | (3,952 | ) | |||
Increase in Deferred Rent Receivable | (1,839 | ) | (2,272 | ) | |||
Decrease in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | (12,460 | ) | (6,469 | ) | |||
Payments of Discounts Associated with Retirement of Debt | (554 | ) | — | ||||
Cash Book Overdraft | — | 429 | |||||
Net Cash Provided by Operating Activities | 26,839 | 27,451 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of Real Estate | (47,406 | ) | — | ||||
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | (35,905 | ) | (25,556 | ) | |||
Net Proceeds from Sales of Investments in Real Estate | 15,393 | 25,573 | |||||
Contributions to and Investments in Joint Ventures | — | (9 | ) | ||||
Distributions from Joint Ventures | — | 126 | |||||
Repayments of Notes Receivable | — | 2,720 | |||||
Decrease (Increase) in Escrows | 19,477 | (256 | ) | ||||
Net Cash (Used in) Provided by Investing Activities | (48,441 | ) | 2,598 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Financing Costs | (236 | ) | (2,114 | ) | |||
Repurchase and Retirement of Restricted Units | (5,230 | ) | (2,101 | ) | |||
Unit Distributions Paid | (14,705 | ) | (11,786 | ) | |||
Contributions from Noncontrolling Interests | 3 | 2 | |||||
Distributions to Noncontrolling Interests | (33 | ) | — | ||||
Repayments on Mortgage Loans Payable | (60,879 | ) | (2,980 | ) | |||
Repayments of Senior Unsecured Notes | (159,125 | ) | — | ||||
Proceeds from Unsecured Credit Facility | 298,000 | 32,000 | |||||
Repayments on Unsecured Credit Facility | (37,000 | ) | (49,000 | ) | |||
Net Cash Provided by (Used in) Financing Activities | 20,795 | (35,979 | ) | ||||
Net Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | (14 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (807 | ) | (5,930 | ) | |||
Cash and Cash Equivalents, Beginning of Year | 3,987 | 9,485 | |||||
Cash and Cash Equivalents, End of Year | $ | 3,180 | $ | 3,541 | |||
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | |||||||
Interest Expense Capitalized in Connection with Development Activity | $ | 449 | $ | 459 | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||||||
General and Limited Partner Unit Distributions Payable | $ | 22,112 | $ | 14,912 | |||
Exchange of Limited Partner Units for General Partner Units: | |||||||
Limited Partner Units | $ | (98 | ) | $ | (95 | ) | |
General Partner Units | 98 | 95 | |||||
Total | $ | — | $ | — | |||
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | $ | 5,082 | $ | — | |||
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | $ | 16,151 | $ | 8,881 | |||
Write-off of Fully Depreciated Assets | $ | (14,457 | ) | $ | (9,849 | ) |
Purchase Price | Weighted Average Life (in Months) | ||||
Land (A) | $ | 43,848 | N/A | ||
Building and Improvements | 7,249 | (B) | |||
Other Assets | 61 | (C) | |||
In-Place Leases | 663 | 32 | |||
Above Market Leases | 197 | 32 | |||
Assumed Mortgage Loan Premium (See Note 4) | (529 | ) | 44 | ||
Total Purchase Price | $ | 51,489 | |||
Assumed Mortgage Loan (See Note 4) | (4,513 | ) | |||
Total Net Assets Acquired | $ | 46,976 |
Outstanding Balance at | Interest Rate at March 31, 2016 | Effective Interest Rate at Issuance | Maturity Date | ||||||||||
March 31, 2016 | December 31, 2015 | ||||||||||||
Mortgage Loans Payable, Gross | $ | 508,525 | $ | 564,891 | 4.03% – 8.26% | 3.82% – 8.26% | June 2018 – September 2022 | ||||||
Unamortized Deferred Financing Costs | (3,625 | ) | (3,714 | ) | |||||||||
Unamortized Premiums | 551 | 64 | |||||||||||
Mortgage Loans Payable, Net | $ | 505,451 | $ | 561,241 | |||||||||
Senior Unsecured Notes, Gross | |||||||||||||
2016 Notes | $ | — | $ | 159,679 | N/A | N/A | 1/15/2016 | ||||||
2017 Notes | 54,981 | 54,981 | 7.50% | 7.52% | 12/1/2017 | ||||||||
2027 Notes | 6,070 | 6,070 | 7.15% | 7.11% | 5/15/2027 | ||||||||
2028 Notes | 31,901 | 31,901 | 7.60% | 8.13% | 7/15/2028 | ||||||||
2032 Notes | 10,600 | 10,600 | 7.75% | 7.87% | 4/15/2032 | ||||||||
2017 II Notes | 101,871 | 101,871 | 5.95% | 6.37% | 5/15/2017 | ||||||||
Subtotal | $ | 205,423 | $ | 365,102 | |||||||||
Unamortized Deferred Financing Costs | (450 | ) | (499 | ) | |||||||||
Unamortized Discounts | (134 | ) | (146 | ) | |||||||||
Senior Unsecured Notes, Net | $ | 204,839 | $ | 364,457 | |||||||||
Unsecured Term Loans, Gross | |||||||||||||
2014 Unsecured Term Loan (A) | $ | 200,000 | $ | 200,000 | 3.99% | N/A | 1/29/2021 | ||||||
2015 Unsecured Term Loan (A) | 260,000 | 260,000 | 3.39% | N/A | 9/12/2022 | ||||||||
Subtotal | $ | 460,000 | $ | 460,000 | |||||||||
Unamortized Deferred Financing Costs | (3,863 | ) | (4,030 | ) | |||||||||
Unsecured Term Loans, Net | $ | 456,137 | $ | 455,970 | |||||||||
Unsecured Credit Facility (B) | $ | 313,500 | $ | 52,500 | 1.58% | N/A | 3/11/2019 |
Amount | |||
Remainder of 2016 | $ | 8,571 | |
2017 | 168,849 | ||
2018 | 168,477 | ||
2019 | 394,061 | ||
2020 | 90,857 | ||
Thereafter | 656,633 | ||
Total | $ | 1,487,448 |
March 31, 2016 | December 31, 2015 | ||||||||||||||
Carrying Amount (A) | Fair Value | Carrying Amount (A) | Fair Value | ||||||||||||
Mortgage Loans Payable, Net | $ | 509,076 | $ | 537,245 | $ | 564,955 | $ | 595,964 | |||||||
Senior Unsecured Notes, Net | 205,289 | 227,684 | 364,956 | 386,253 | |||||||||||
Unsecured Term Loans | 460,000 | 460,920 | 460,000 | 460,970 | |||||||||||
Unsecured Credit Facility | 313,500 | 313,500 | 52,500 | 52,500 | |||||||||||
Total | $ | 1,487,865 | $ | 1,539,349 | $ | 1,442,411 | $ | 1,495,687 |
March 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Assets: | |||||||
Net Investment in Real Estate | $ | 304,246 | $ | 306,866 | |||
Other Assets, Net | 20,524 | 20,104 | |||||
Total Assets | $ | 324,770 | $ | 326,970 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Liabilities: | |||||||
Mortgage Loans Payable, Net | $ | 71,415 | $ | 77,071 | |||
Other Liabilities, Net | 38,404 | 43,103 | |||||
Partners’ Capital | 214,951 | 206,796 | |||||
Total Liabilities and Partners’ Capital | $ | 324,770 | $ | 326,970 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
Balance as of December 31, 2015 | $ | 42,035 | $ | 41,877 | |||
Net Income | 607 | 93 | |||||
Unit Distributions | (816 | ) | (557 | ) | |||
Other Comprehensive (Loss) Income (Including a Reallocation of $3 and $2) | (459 | ) | 142 | ||||
Conversion of Limited Partner Units to Common Stock | (98 | ) | (95 | ) | |||
Reallocation - Additional Paid-in-Capital | (47 | ) | (34 | ) | |||
Balance as of March 31, 2016 | $ | 41,222 | $ | 41,426 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
Balance as of December 31, 2015 | $ | 1,096 | $ | 1,080 | |||
Net Income | 14 | 26 | |||||
Contributions | 3 | 2 | |||||
Distributions | (33 | ) | — | ||||
Balance as of March 31, 2016 | $ | 1,080 | $ | 1,108 |
Interest Rate Protection Agreements | Accumulated Other Comprehensive Loss of the Operating Partnership | Comprehensive Loss Attributable to Noncontrolling Interest of the Company | Accumulated Other Comprehensive Loss of the Company | ||||||||||||
Balance as of December 31, 2015 | $ | (10,043 | ) | $ | (10,043 | ) | $ | 376 | $ | (9,667 | ) | ||||
Other Comprehensive Loss Before Reclassifications | (14,332 | ) | (14,332 | ) | 459 | (13,873 | ) | ||||||||
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,938 | 1,938 | — | 1,938 | |||||||||||
Net Current Period Other Comprehensive Loss | (12,394 | ) | (12,394 | ) | 459 | (11,935 | ) | ||||||||
Balance as of March 31, 2016 | $ | (22,437 | ) | $ | (22,437 | ) | $ | 835 | $ | (21,602 | ) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||||||||
Details about Accumulated Other Comprehensive Loss Components | Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | Affected Line Items in the Consolidated Statements of Operations | |||||||
Interest Rate Protection Agreements: | ||||||||||
Reclassification of Fair Value of Interest Rate Protection Agreements (See Note 10) | $ | — | $ | 12,990 | Mark-to-Market Loss on Interest Rate Protection Agreements | |||||
Amortization of Interest Rate Protection Agreements (Previously Settled) | 102 | 131 | Interest Expense | |||||||
Settlement Payments to our Counterparties | 1,836 | 1,057 | Interest Expense | |||||||
$ | 1,938 | $ | 14,178 | Total |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
Numerator: | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 15,688 | $ | 2,373 | |||
Net Income Allocable to Participating Securities | (63 | ) | (41 | ) | |||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ | 15,625 | $ | 2,332 | |||
Denominator (In Thousands): | |||||||
Weighted Average Shares - Basic | 110,793 | 110,310 | |||||
Effect of Dilutive Securities: | |||||||
LTIP Unit Awards (As Defined in Note 9) | 192 | 365 | |||||
Weighted Average Shares - Diluted | 110,985 | 110,675 | |||||
Basic and Diluted EPS: | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ | 0.14 | $ | 0.02 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||
Numerator: | |||||||
Net Income Available to Unitholders and Participating Securities | $ | 16,281 | $ | 2,457 | |||
Net Income Allocable to Participating Securities | (63 | ) | (41 | ) | |||
Net Income Available to Unitholders | $ | 16,218 | $ | 2,416 | |||
Denominator (In Thousands): | |||||||
Weighted Average Units - Basic | 115,096 | 114,681 | |||||
Effect of Dilutive Securities that Result in the Issuance of General Partner Units: | |||||||
LTIP Unit Awards (As Defined in Note 9) | 192 | 365 | |||||
Weighted Average Units - Diluted | 115,288 | 115,046 | |||||
Basic and Diluted EPU: | |||||||
Net Income Available to Unitholders | $ | 0.14 | $ | 0.02 |
Fair Value Measurements at Reporting Date Using: | ||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||
Liabilities: | ||||||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||
2014 Swaps | $ | (11,808 | ) | — | $ | (11,808 | ) | — | ||||||
2015 Swaps | $ | (9,131 | ) | — | $ | (9,131 | ) | — |
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, 2015 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 one industrial property comprising approximately 0.1 million square feet of GLA and several land parcels for an aggregate purchase price of approximately $51.5 million, excluding costs incurred in conjunction with the acquisitions. |
• | We placed in-service one development totaling approximately 0.1 million square feet of GLA at a total cost of approximately $7.6 million. |
• | We sold five industrial properties comprising approximately 0.4 million square feet of GLA for total gross sales proceeds of approximately $16.3 million. |
• | We paid off and retired our 2016 Notes, at maturity, in the amount of $159.7 million. |
• | We paid off a mortgage loan in the amount of $57.9 million. |
• | We declared a first quarter cash dividend of $0.19 per common share or Unit, an increase of 49% from 2015. |
2016 | 2015 | $ Change | % Change | |||||||||||
($ in 000’s) | ||||||||||||||
REVENUES | ||||||||||||||
Same Store Properties | $ | 87,469 | $ | 84,406 | $ | 3,063 | 3.6 | % | ||||||
Acquired Properties | 2,055 | — | 2,055 | — | ||||||||||
Sold Properties | 354 | 4,829 | (4,475 | ) | (92.7 | )% | ||||||||
(Re) Developments | 3,102 | 306 | 2,796 | 913.7 | % | |||||||||
Other | 487 | 425 | 62 | 14.6 | % | |||||||||
Total Revenues | $ | 93,467 | $ | 89,966 | $ | 3,501 | 3.9 | % |
2016 | 2015 | $ Change | % Change | |||||||||||
($ in 000’s) | ||||||||||||||
PROPERTY EXPENSES | ||||||||||||||
Same Store Properties | $ | 24,377 | $ | 25,024 | $ | (647 | ) | (2.6 | )% | |||||
Acquired Properties | 630 | — | 630 | — | ||||||||||
Sold Properties | 122 | 2,200 | (2,078 | ) | (94.5 | )% | ||||||||
(Re) Developments | 1,153 | 384 | 769 | 200.3 | % | |||||||||
Other | 2,085 | 2,183 | (98 | ) | (4.5 | )% | ||||||||
Total Property Expenses | $ | 28,367 | $ | 29,791 | $ | (1,424 | ) | (4.8 | )% |
2016 | 2015 | $ Change | % Change | |||||||||||
($ in 000’s) | ||||||||||||||
DEPRECIATION AND OTHER AMORTIZATION | ||||||||||||||
Same Store Properties | $ | 25,908 | $ | 26,195 | $ | (287 | ) | (1.1 | )% | |||||
Acquired Properties | 1,616 | — | 1,616 | — | ||||||||||
Sold Properties | 52 | 1,484 | (1,432 | ) | (96.5 | )% | ||||||||
(Re) Developments | 3,311 | 391 | 2,920 | 746.8 | % | |||||||||
Corporate Furniture, Fixtures and Equipment and Other | 241 | 236 | 5 | 2.1 | % | |||||||||
Total Depreciation and Other Amortization | $ | 31,128 | $ | 28,306 | $ | 2,822 | 10.0 | % |
Number of Leases Commenced | Square Feet Commenced (in 000’s) | Net Rent Per Square Foot (1) | GAAP Basis Rent Growth (2) | Weighted Average Lease Term (3) | Lease Costs Per Square Foot (4) | Weighted Average Tenant Retention (5) | ||||||||||||||||
New Leases | 35 | 485 | $ | 5.52 | 17.2 | % | 5.0 | $ | 5.78 | N/A | ||||||||||||
Renewal Leases | 95 | 3,115 | $ | 4.65 | 14.9 | % | 3.5 | $ | 1.02 | 70.6 | % | |||||||||||
Development Leases | 2 | 208 | $ | 4.91 | N/A | 9.3 | N/A | N/A | ||||||||||||||
Total / Weighted Average | 132 | 3,808 | $ | 4.78 | 15.2 | % | 4.0 | $ | 1.66 | N/A |
(1) | Net rent is the average base rent calculated in accordance with GAAP, over the term of the lease. |
(2) | GAAP basis rent growth is a ratio of the change in net rent (on a GAAP basis, including straight-line rent adjustments as required by GAAP) compared to the net rent (on a GAAP basis) of the comparable lease. New leases where there were no prior comparable leases are excluded. |
(3) | The lease term is expressed in years. Assumes no exercise of lease renewal options, if any. |
(4) | 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 signed during the period and do not reflect actual expenditures for the period. |
(5) | Represents the weighted average square feet of tenants renewing their respective leases. |
2016 | 2015 | ||||||
(In thousands) | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 15,688 | $ | 2,373 | |||
Adjustments: | |||||||
Depreciation and Other Amortization of Real Estate | 30,956 | 28,136 | |||||
Equity in Depreciation and Other Amortization of Joint Ventures | — | 17 | |||||
Non-NAREIT Compliant Gain | (7,251 | ) | (7,930 | ) | |||
Non-NAREIT Compliant Gain from Joint Ventures | — | (63 | ) | ||||
Noncontrolling Interest Share of Adjustments | (889 | ) | (767 | ) | |||
Funds from Operations Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 38,504 | $ | 21,766 |
2016 | 2015 | ||||||
(In thousands) | |||||||
Same Store Revenues | $ | 87,469 | $ | 84,406 | |||
Same Store Property Expenses | 24,377 | 25,024 | |||||
Same Store Net Operating Income Before Same Store Adjustments | $ | 63,092 | $ | 59,382 | |||
Same Store Adjustments: | |||||||
Lease Inducement Amortization | 223 | 197 | |||||
Straight-line Rent | (76 | ) | (2,075 | ) | |||
Above / Below Market Rent Amortization | (229 | ) | (105 | ) | |||
Lease Termination Fees | (128 | ) | (51 | ) | |||
Same Store Net Operating Income | $ | 62,882 | $ | 57,348 |
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 |
FIRST INDUSTRIAL REALTY TRUST, INC. | ||
By: | /S/ SCOTT A. MUSIL | |
Scott A. Musil Chief Financial Officer (Principal Financial and 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 and Accounting Officer) |
Exhibits | Description | |
31.1* | Certification of Principal Executive Officer of First Industrial Realty Trust, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |
31.2* | Certification of Principal Financial Officer of First Industrial Realty Trust, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |
31.3* | Certification of Principal Executive Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |
31.4* | Certification of Principal Financial Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |
32.1** | Certification of the Principal Executive Officer and Principal Financial Officer of First Industrial Realty Trust, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2** | Certification of the Principal Executive Officer and Principal Financial Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
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 March 31, 2016, 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. |
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: April 28, 2016 | /S/ BRUCE W. DUNCAN | |
Bruce W. Duncan | ||
President, Chief Executive Officer and Chairman of the Board of Directors (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: April 28, 2016 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial and Accounting 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-l5(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: April 28, 2016 | /S/ BRUCE W. DUNCAN | |
Bruce W. Duncan | ||
President, Chief Executive Officer and Chairman of the Board of Directors (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-l5(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: April 28, 2016 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial and Accounting Officer) | ||
First Industrial Realty Trust, Inc. |
Dated: April 28, 2016 | /S/ BRUCE W. DUNCAN | |
Bruce W. Duncan | ||
President, Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) |
Dated: April 28, 2016 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Dated: April 28, 2016 | /S/ BRUCE W. DUNCAN | ||
Bruce W. Duncan | |||
President, Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) | |||
First Industrial Realty Trust, Inc. | |||
Dated: April 28, 2016 | /S/ SCOTT A. MUSIL | ||
Scott A. Musil | |||
Chief Financial Officer (Principal Financial and Accounting Officer) | |||
First Industrial Realty Trust, Inc. |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 28, 2016 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FR | |
Entity Registrant Name | FIRST INDUSTRIAL REALTY TRUST INC | |
Entity Central Index Key | 0000921825 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 116,847,508 | |
First Industrial, L.P. | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FRFI | |
Entity Registrant Name | FIRST INDUSTRIAL LP | |
Entity Central Index Key | 0001033128 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Real Estate Held for Sale, Accumulated Depreciation | $ 1,194 | $ 1,171 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Common Stock, shares issued | 111,247,508 | 111,027,225 |
Common Stock, shares outstanding | 111,247,508 | 111,027,225 |
First Industrial, L.P. | ||
Real Estate Held for Sale, Accumulated Depreciation | $ 1,194 | $ 1,171 |
General Partner Units, units outstanding | 111,247,508 | 111,027,225 |
Limited Partner Units, units outstanding | 4,295,884 | 4,305,707 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY/ PARTNER'S CAPITAL - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in- Capital |
Distributions in Excess of Accumulated Earnings |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest |
First Industrial, L.P. |
First Industrial, L.P.
General Partner Units
|
First Industrial, L.P.
Limited Partner Units
|
First Industrial, L.P.
Accumulated Other Comprehensive Loss
|
First Industrial, L.P.
Noncontrolling Interest
|
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2015 | $ 1,115,135 | $ 1,111 | $ 1,756,415 | $ (674,759) | $ (9,667) | $ 42,035 | |||||
Beginning Balance at Dec. 31, 2015 | $ 1,125,850 | $ 1,054,028 | $ 80,769 | $ (10,043) | $ 1,096 | ||||||
Increase (Decrease) in Stockholders' Equity / Partners' Capital [Roll Forward] | |||||||||||
Stock Based Compensation Activity | 906 | 2 | 1,117 | (213) | |||||||
Stock Based Compensation Activity | 906 | 906 | |||||||||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 0 | 98 | (98) | 0 | 98 | (98) | ||||
Reallocation—Additional Paid in Capital | 0 | 47 | (47) | ||||||||
Common Stock Dividends and Unit Distributions | (22,005) | (21,189) | (816) | ||||||||
Unit Distributions | (22,005) | (21,189) | (816) | ||||||||
Contributions from Noncontrolling Interest | 3 | 3 | |||||||||
Distributions to Noncontrolling Interest | (816) | (33) | (33) | ||||||||
Net Income | 16,295 | 15,688 | 607 | 16,295 | 15,674 | 607 | 14 | ||||
Other Comprehensive Loss | (12,394) | (11,935) | (459) | (12,394) | (12,394) | ||||||
Ending Balance at Mar. 31, 2016 | $ 1,097,937 | $ 1,113 | $ 1,757,677 | $ (680,473) | $ (21,602) | $ 41,222 | |||||
Ending Balance at Mar. 31, 2016 | $ 1,108,622 | $ 1,049,517 | $ 80,462 | $ (22,437) | $ 1,080 |
Organization |
3 Months Ended |
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Mar. 31, 2016 | |
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 96.3% ownership interest ("General Partner Units") at March 31, 2016. 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. Noncontrolling interest in the Operating Partnership of approximately 3.7% ("Limited Partner Units" and together with the General Partner Units, the "Units") at March 31, 2016 represents the aggregate partnership interest held by the limited partners thereof. Profits, losses and distributions of the Operating Partnership, the LLCs, the Other Real Estate Partnerships and the TRSs are allocated to the general partner and the limited partners or the members, as applicable, of such entities in accordance with the provisions contained within their respective organizational documents. We also provided various services to two joint ventures (the "2003 Net Lease Joint Venture" and the "2007 Europe Joint Venture," collectively the "Joint Ventures"). Our noncontrolling equity ownership interests in the 2003 Net Lease Joint Venture and the 2007 Europe Joint Venture were 15% and 10%, respectively. The Joint Ventures were accounted for under the equity method of accounting. As of March 31, 2016, we owned 584 industrial properties located in 24 states, containing an aggregate of approximately 63.2 million square feet of gross leasable area ("GLA"). Of the 584 properties owned on a consolidated basis, none of them are directly owned by the Company. |
Summary of Significant Accounting Policies |
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Mar. 31, 2016 | |
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, 2015 ("2015 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2015 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2015 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, 2015 audited consolidated financial statements included in our 2015 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission ("SEC"). 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 March 31, 2016 and December 31, 2015, and the reported amounts of revenues and expenses for the three months ended March 31, 2016 and 2015. 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 March 31, 2016 and December 31, 2015, the results of our operations and comprehensive income for each of the three months ended March 31, 2016 and 2015, and our cash flows for each of the three months ended March 31, 2016 and 2015; all adjustments are of a normal recurring nature. Reclassifications Interest income which was included in other income and expense on the consolidated statement of operations for the three months ended March 31, 2015 has been reclassified to be included in tenant recoveries and other income to conform to the 2016 presentation. Deferred Financing Costs Effective January 1, 2016, we adopted Accounting Standards Update ("ASU") No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"), which amended the presentation of debt issuance costs on a consolidated balance sheet. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The recognition and measurement guidance for debt issuance costs are not affected by this update. Debt issuance costs related to revolving credit agreements are not within the scope of this new guidance. The Financial Accounting Standards Board ("FASB") issued ASU No. 2015-15,"Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" ("ASU 2015-15"), which expanded upon ASU 2015-03. ASU 2015-15 stated that given the absence of authoritative guidance within 2015-03, the SEC staff would not object to deferring and presenting debt issuance costs as an asset for revolving credit agreements and subsequently amortizing the deferred issuance costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the revolving credit agreement. The adoption of ASU 2015-03 was applied retrospectively. See Note 4 for more information about the reclassification of our debt issuance costs. The debt issuance costs related to our unsecured credit facility (the "Unsecured Credit Facility") remain classified as an asset and are included in prepaid expenses and other assets, net on the consolidated balance sheets. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services. For the real estate industry, leasing transactions are not within the scope of the new standard. A majority of our tenant-related revenue is recognized pursuant to lease agreements. In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual periods beginning after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application is permitted. ASU 2016-02 requires the use of a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest period presented in the consolidated financial statements, with certain practical expedients available. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 intends to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, the classification of certain items on the statement of cash flows, statutory tax withholding requirements and the accounting for forfeitures. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is permitted. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements. |
Investment in Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Real Estate | Investment in Real Estate Acquisitions During the three months ended March 31, 2016, we acquired one industrial property comprising approximately 0.1 million square feet of GLA and several land parcels. The purchase price of these acquisitions totaled approximately $51,489, excluding costs incurred in conjunction with the acquisition of the industrial property and land parcels. The following table summarizes the fair value of amounts recognized for each major class of asset and liability for the industrial property and land parcels acquired during the three months ended March 31, 2016:
(A) Included in the purchase price for the three months ended March 31, 2016, is $12,864 relating to a land parcel that we acquired and transferred to a special purpose entity to facilitate a potential Section 1031 exchange under the Code. To realize the tax deferral available under the Section 1031 exchange, we must complete the Section 1031 exchange and take title to the to-be-exchanged land parcel within 180 days of the acquisition date. We determined that this special purpose entity is a variable interest entity ("VIE"), and we are the primary beneficiary. Therefore, we consolidate this entity. As of March 31, 2016, this VIE has no significant liabilities or significant cash flows. (B) See Note 2 to the consolidated financial statements in our 2015 Form 10-K for the disclosure of useful lives of our Investment in Real Estate and our Depreciation policy. (C) Represents a leasing commission, which is included in prepaid expenses and other assets, net on the consolidated balance sheets and amortized over the remaining term of the lease. Real Estate and Other Assets Held for Sale As of March 31, 2016, we had two industrial properties comprising approximately 0.1 million square feet of GLA held for sale. See Note 12. Sales During the three months ended March 31, 2016, we sold five industrial properties comprising approximately 0.4 million square feet of GLA. Gross proceeds from the sales of the industrial properties were approximately $16,319. The gain on sale of real estate was approximately $7,251. |
Indebtedness |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness The following table discloses certain information regarding our indebtedness:
(A) The interest rate at March 31, 2016 reflects the interest rate protection agreements 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 deferred financing costs of $3,872 and $4,204 as of March 31, 2016 and December 31, 2015, respectively, which are included in prepaid expenses and other assets, net on the consolidated balance sheets. Mortgage Loans Payable, Net During the three months ended March 31, 2016, we assumed a mortgage loan in the amount of $4,513 in conjunction with the acquisition of one industrial property, totaling approximately 0.1 million square feet of GLA. The mortgage loan bears interest at a fixed rate of 7.35%, principal payments are amortized over 25 years and the loan matures in September 2019. In conjunction with the assumption of the mortgage loan, we recorded a premium in the amount of $529, which will be amortized as an adjustment to interest expense through maturity. Additionally, during the three months ended March 31, 2016, we paid off a mortgage loan in the amount of $57,901. As of March 31, 2016, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $676,569. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of March 31, 2016. Senior Unsecured Notes, Net During the three months ended March 31, 2016, we paid off and retired our 2016 Notes, at maturity, in the amount of $159,679. Indebtedness The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and deferred financing costs, for the next five years as of March 31, and thereafter:
The Unsecured Credit Facility, the Unsecured Term Loans (as defined in Note 10) 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 that the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans and indentures governing our senior unsecured notes as of March 31, 2016. 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 March 31, 2016 and December 31, 2015, the fair value of our indebtedness was as follows:
(A) The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing 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. |
Variable Interest Entities |
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Variable Interest Entities | Variable Interest Entities During the year ended December 31, 2015, the Operating Partnership adopted ASU No. 2015-02, "Consolidation (Topic 810) - Amendments to the Consolidation Analysis,” which modified the analysis it must perform to determine whether it should consolidate certain types of legal entities. The guidance does not amend the existing disclosure requirements for VIEs or voting interest model entities. The guidance, however, modified the requirements to qualify under the voting interest model. Under the revised guidance, the Other Real Estate Partnerships are variable interest entities 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 under the revised guidance and the Company is the primary beneficiary. Because the Operating Partnership was already consolidated in the balance sheets of the Company, the revised guidance has no impact on the consolidated financial statements of the Company. There were no other legal entities qualifying under the scope of the revised guidance that were consolidated as a result of the adoption. In addition, there were no voting interest entities under prior existing guidance determined to be VIEs under the revised guidance. The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets:
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Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership |
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Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership | Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership Conversion of Limited Partner Units into Shares of Common Stock For the three months ended March 31, 2016 and 2015, 9,823 and 9,825 Limited Partner Units, respectively, were converted into an equivalent number of shares of common stock of the Company, resulting in a reclassification of $98 and $95, respectively, of noncontrolling interest to the Company’s stockholders’ equity. Noncontrolling Interest of the Company The following table summarizes the changes in noncontrolling interest for the Company for the three months ended March 31, 2016 and 2015:
Noncontrolling Interest of the Operating Partnership The following table summarizes the changes in noncontrolling interest for the Operating Partnership for the three months ended March 31, 2016 and 2015:
Dividends/Distributions During the three months ended March 31, 2016, we accrued $22,005 common stock dividends and Unit distributions. |
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss by component for the Company and the Operating Partnership for the three months ended March 31, 2016:
The following table summarizes the reclassifications out of accumulated other comprehensive loss for both the Company and the Operating Partnership for the three months ended March 31, 2016 and 2015:
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in other comprehensive income (loss) and is subsequently reclassified to earnings through interest expense over the life of the derivative or over the life of the debt. In the next 12 months, we expect to amortize approximately $385 into net income by increasing interest expense for interest rate protection agreements we settled in previous periods. Additionally, recurring settlement amounts on the 2014 and 2015 Swaps (as defined in Note 10) will also be reclassified to net income. See Note 10 for more information about our derivatives. |
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:
Participating securities include 421,291 and 391,721 of unvested restricted stock or restricted Unit awards outstanding at March 31, 2016 and 2015, respectively, 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. |
Benefit Plans |
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Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Benefit Plans | Benefit Plans Restricted Stock or Restricted Unit Awards For the three months ended March 31, 2016, the Company awarded 308,373 shares of restricted stock awards to certain employees, which had a fair value of $6,047 on the date such awards were approved by the Compensation Committee of the Board of Directors. These restricted stock awards were issued based upon the achievement of certain corporate performance goals and generally vest over a period of three years. The Operating Partnership issued restricted Unit awards to the Company in the same amount for this award issuance. Compensation expense is charged to earnings over the vesting periods for the restricted stock or restricted Unit awards expected to vest except if the recipient is not required to provide future service in exchange for vesting of such restricted stock or restricted Unit awards. If vesting of a recipient's restricted stock or restricted Unit awards is not contingent upon future service, the expense is recognized immediately at the date of grant. During the three months ended March 31, 2016 and 2015, we recognized $1,590 and $1,250, respectively, of compensation expense related to restricted stock or restricted Unit awards granted to our Chief Executive Officer for which future service was not required. LTIP Unit Awards For the three months ended March 31, 2016, the Company granted 254,524 Long-Term Incentive Program ("LTIP") performance units ("LTIP Unit Awards") to certain employees, which had a fair value of $2,561 on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The LTIP Unit Awards vest based upon the relative total shareholder return ("TSR") of the Company's common stock compared to the TSRs of the MSCI US REIT Index and the NAREIT Industrial Index. The TSR for the LTIP Unit Awards is calculated based on the performance period from January 1, 2016 through December 31, 2018. Compensation expense is charged to earnings on a straight-line basis over the performance period. At the end of the performance period each participant will be issued shares of the Company's common stock equal to the maximum shares issuable to the participant for the performance period multiplied by a percentage, ranging from 0% to 100%, based on the Company's TSR as compared to the TSRs of the MSCI US REIT Index and the NAREIT Industrial Index. The participant is also entitled to dividend equivalents for shares issued pursuant to vested LTIP Unit Awards. The dividend equivalents represent any common dividends that would have been paid with respect to such issued shares after the grant of the LTIP Unit Awards and prior to the date of settlement. The Operating Partnership issues General Partner Units to the Company in the same amounts for vested LTIP Unit Awards. Outstanding Restricted Stock or Restricted Unit Awards and LTIP Unit Awards For the three months ended March 31, 2016 and 2015, we recognized $2,963 and $2,561, respectively, in amortization related to restricted stock or restricted Unit awards and LTIP Unit Awards. Restricted stock or restricted Unit award and LTIP Unit Award amortization capitalized in connection with development activities was not significant. At March 31, 2016, we had $11,077 in unrecognized compensation related to unvested restricted stock or restricted Unit awards and LTIP Unit Awards. The weighted average period that the unrecognized compensation is expected to be recognized is 0.75 years. |
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 this objective, we primarily use interest rate protection agreements as part of our interest rate risk management strategy. Interest rate protection agreements 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. In connection with the originations of the seven-year, $200,000 unsecured loan (the "2014 Unsecured Term Loan") and the seven-year, $260,000 unsecured loan (the "2015 Unsecured Term Loan" and together with the 2014 Unsecured Term Loan, the "Unsecured Term Loans") (See Note 4) , we entered into interest rate protection agreements to manage our exposure to changes in the one month LIBOR rate. The four interest rate protection agreements, 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 protection agreements, 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 and 2015 Swaps as cash flow hedges. In order to maintain our flexibility to pursue an offering of unsecured debt, during August 2014, we entered into three interest rate protection agreements, with an aggregate notional value of $220,000, to manage our exposure to changes in the three month LIBOR rate (the "Settled Swaps"). At origination, we designated the Settled Swaps as cash flow hedges but, during the three months ended March 31, 2015, the Settled Swaps were de-designated and the fair market value loss of $12,990 was reclassified to earnings from other comprehensive income since we determined the forecasted offering of unsecured debt was no longer probable to occur within the time period stated in the respective designation memos. During the year ended December 31, 2015, we made a settlement payment of $11,546 to our derivative counterparties. 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 March 31, 2016, we had not posted any collateral related to these agreements and were not in breach of any of the agreement provisions. If we had breached these provisions, 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 2014 and 2015 Swaps, which are included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets and are accounted for at fair value on a recurring basis as of March 31, 2016:
There was no ineffectiveness recorded on the 2014 and 2015 Swaps during the three months ended March 31, 2016. See Note 7 for more information regarding our derivatives. The estimated fair value of the 2014 and 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 and 2015 Swaps fell within Level 2 of the fair value hierarchy. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2016 | |
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 March 31, 2016, we had five industrial properties totaling approximately 1.5 million square feet of GLA under construction. The estimated total investment as of March 31, 2016 is approximately $94,100. Of this amount, approximately $50,300 remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated total investment. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events From April 1, 2016 to April 28, 2016, we acquired one industrial property and one land parcel for a purchase price of approximately $23,266, excluding costs incurred in conjunction with such acquisitions. During the same period, we sold five industrial properties for approximately $15,418. Additionally, on April 5, 2016, the Company issued 5,600,000 shares of the Company's common stock in an underwritten public offering. Proceeds to the Company, net of the underwriter's discount, were $124,936. The proceeds were contributed to the Operating Partnership in exchange for General Partner Units and will be reflected in the financial statements as a general partner contribution. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2016 | |
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, 2015 ("2015 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2015 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2015 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, 2015 audited consolidated financial statements included in our 2015 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission ("SEC"). |
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 March 31, 2016 and December 31, 2015, and the reported amounts of revenues and expenses for the three months ended March 31, 2016 and 2015. 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 March 31, 2016 and December 31, 2015, the results of our operations and comprehensive income for each of the three months ended March 31, 2016 and 2015, and our cash flows for each of the three months ended March 31, 2016 and 2015; all adjustments are of a normal recurring nature. |
Reclassifications | Reclassifications Interest income which was included in other income and expense on the consolidated statement of operations for the three months ended March 31, 2015 has been reclassified to be included in tenant recoveries and other income to conform to the 2016 presentation. |
Deferred Financing Costs | Deferred Financing Costs Effective January 1, 2016, we adopted Accounting Standards Update ("ASU") No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"), which amended the presentation of debt issuance costs on a consolidated balance sheet. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The recognition and measurement guidance for debt issuance costs are not affected by this update. Debt issuance costs related to revolving credit agreements are not within the scope of this new guidance. The Financial Accounting Standards Board ("FASB") issued ASU No. 2015-15,"Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" ("ASU 2015-15"), which expanded upon ASU 2015-03. ASU 2015-15 stated that given the absence of authoritative guidance within 2015-03, the SEC staff would not object to deferring and presenting debt issuance costs as an asset for revolving credit agreements and subsequently amortizing the deferred issuance costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the revolving credit agreement. The adoption of ASU 2015-03 was applied retrospectively. See Note 4 for more information about the reclassification of our debt issuance costs. The debt issuance costs related to our unsecured credit facility (the "Unsecured Credit Facility") remain classified as an asset and are included in prepaid expenses and other assets, net on the consolidated balance sheets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services. For the real estate industry, leasing transactions are not within the scope of the new standard. A majority of our tenant-related revenue is recognized pursuant to lease agreements. In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual periods beginning after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early application is permitted. ASU 2016-02 requires the use of a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest period presented in the consolidated financial statements, with certain practical expedients available. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 intends to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, the classification of certain items on the statement of cash flows, statutory tax withholding requirements and the accounting for forfeitures. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is permitted. We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements. |
Investment in Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Fair Value of Assets and Liabilities Acquired | The following table summarizes the fair value of amounts recognized for each major class of asset and liability for the industrial property and land parcels acquired during the three months ended March 31, 2016:
(A) Included in the purchase price for the three months ended March 31, 2016, is $12,864 relating to a land parcel that we acquired and transferred to a special purpose entity to facilitate a potential Section 1031 exchange under the Code. To realize the tax deferral available under the Section 1031 exchange, we must complete the Section 1031 exchange and take title to the to-be-exchanged land parcel within 180 days of the acquisition date. We determined that this special purpose entity is a variable interest entity ("VIE"), and we are the primary beneficiary. Therefore, we consolidate this entity. As of March 31, 2016, this VIE has no significant liabilities or significant cash flows. (B) See Note 2 to the consolidated financial statements in our 2015 Form 10-K for the disclosure of useful lives of our Investment in Real Estate and our Depreciation policy. (C) Represents a leasing commission, which is included in prepaid expenses and other assets, net on the consolidated balance sheets and amortized over the remaining term of the lease. |
Indebtedness (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Indebtedness | The following table discloses certain information regarding our indebtedness:
(A) The interest rate at March 31, 2016 reflects the interest rate protection agreements 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 deferred financing costs of $3,872 and $4,204 as of March 31, 2016 and December 31, 2015, respectively, which are included in prepaid expenses and other assets, net on the consolidated balance sheets. |
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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 deferred financing costs, for the next five years as of March 31, and thereafter:
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Summary of Indebtedness at Estimated Fair Value | At March 31, 2016 and December 31, 2015, the fair value of our indebtedness was as follows:
(A) The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing costs. |
Variable Interest Entities (Tables) |
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets:
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Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership (Tables) |
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Noncontrolling Interest Rollforward | The following table summarizes the changes in noncontrolling interest for the Company for the three months ended March 31, 2016 and 2015:
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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 three months ended March 31, 2016 and 2015:
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Accumulated Other Comprehensive Loss (Tables) |
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Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss by component for the Company and the Operating Partnership for the three months ended March 31, 2016:
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Reclassification Out of Accumulated Other Comprehensive Loss | The following table summarizes the reclassifications out of accumulated other comprehensive loss for both the Company and the Operating Partnership for the three months ended March 31, 2016 and 2015:
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Earnings Per Share / Unit (EPS / EPU) (Tables) |
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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:
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Derivatives (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements on Recurring Basis | The following table sets forth our financial liabilities related to the 2014 and 2015 Swaps, which are included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets and are accounted for at fair value on a recurring basis as of March 31, 2016:
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Investment in Real Estate - Additional Information (Detail) $ in Thousands, ft² in Millions |
3 Months Ended | |||
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Mar. 31, 2016
USD ($)
ft²
Property
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Real Estate [Line Items] | ||||
Number of industrial properties acquired | Property | 1 | |||
Gross leasable area (GLA) of industrial properties acquired | ft² | 0.1 | |||
Purchase price of industrial properties acquired | $ 51,489 | |||
Number of land parcels acquired | Property | 0 | |||
Land (A) | $ 43,848 | [1] | ||
Number of days to realize tax deferrals after the acquisition date - 1031 Exchange | 180 days | |||
Number of industrial properties held for sale | Property | 2 | |||
Gross leasable area (GLA) of industrial properties held for sale | ft² | 0.1 | |||
Number of industrial properties sold | Property | 5 | |||
Gross leasable area (GLA) of industrial properties sold | ft² | 0.4 | |||
Proceeds from sale of industrial properties | $ 16,319 | |||
Gain on sale of real estate | 7,251 | |||
Land Parcel | ||||
Real Estate [Line Items] | ||||
Land (A) | $ 12,864 | |||
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Investment in Real Estate - Summary of the Fair Value of Assets and Liabilities Acquired (Detail) $ in Thousands |
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Mar. 31, 2016
USD ($)
| ||||||||
Real Estate [Abstract] | ||||||||
Land (A) | $ 43,848 | [1] | ||||||
Building and Improvements | 7,249 | [2] | ||||||
Other Assets | 61 | [3] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Assumed Mortgage Loan Premium (See Note 4) | (529) | |||||||
Total Purchase Price | 51,489 | |||||||
Assumed Mortgage Loan (See Note 4) | (4,513) | |||||||
Total Net Assets Acquired | $ 46,976 | |||||||
Assumed mortgage loan premium, weighted average life | 44 months | |||||||
In-Place Leases | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquired finite lived intangible assets, fair value | $ 663 | |||||||
Acquired finite lived intangible assets, weighted average life | 32 months | |||||||
Above Market Leases | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquired finite lived intangible assets, fair value | $ 197 | |||||||
Acquired finite lived intangible assets, weighted average life | 32 months | |||||||
|
Indebtedness - Additional Information (Detail) $ in Thousands, ft² in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
USD ($)
ft²
Property
|
Dec. 31, 2015
USD ($)
|
|
Debt Disclosure [Line Items] | ||
Assumed mortgage loan | $ (4,513) | |
Number of industrial properties acquired | Property | 1 | |
Gross leasable area (GLA) of industrial properties acquired | ft² | 0.1 | |
Assumed mortgage, premium | $ (529) | |
2016 Notes | ||
Debt Disclosure [Line Items] | ||
Extinguishment of debt, amount | 159,679 | |
Mortgages | ||
Debt Disclosure [Line Items] | ||
Unamortized deferred financing costs | 3,625 | $ 3,714 |
Assumed mortgage loan | $ 4,513 | |
Number of industrial properties acquired | Property | 1 | |
Gross leasable area (GLA) of industrial properties acquired | ft² | 0.1 | |
Assumed mortgage, fixed interest rate | 7.35% | |
Assumed mortgage, term | 25 years | |
Assumed mortgage, premium | $ (529) | |
Assumed mortgage, premium | (551) | (64) |
Extinguishment of debt, amount | 57,901 | |
Net carrying value of industrial properties collateralized by mortgage loans | 676,569 | |
Senior Unsecured Notes | ||
Debt Disclosure [Line Items] | ||
Unamortized deferred financing costs | 450 | 499 |
Unsecured Term Loan | ||
Debt Disclosure [Line Items] | ||
Unamortized deferred financing costs | 3,863 | 4,030 |
Unsecured Credit Facility | ||
Debt Disclosure [Line Items] | ||
Unamortized deferred financing costs | $ (3,872) | $ (4,204) |
Indebtedness - Schedule of Maturities of Long-Term Debt (Detail) $ in Thousands |
Mar. 31, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2016 | $ 8,571 |
2017 | 168,849 |
2018 | 168,477 |
2019 | 394,061 |
2020 | 90,857 |
Thereafter | 656,633 |
Total | $ 1,487,448 |
Indebtedness - Summary of Indebtedness at Estimated Fair Value (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Debt Disclosure [Line Items] | |||||
Total, Carrying Amount | [1] | $ 1,487,865 | $ 1,442,411 | ||
Total, Fair Value | 1,539,349 | 1,495,687 | |||
Mortgages | |||||
Debt Disclosure [Line Items] | |||||
Total, Carrying Amount | [1] | 509,076 | 564,955 | ||
Mortgage Loans Payable, Net, Fair Value | 537,245 | 595,964 | |||
Senior Unsecured Notes | |||||
Debt Disclosure [Line Items] | |||||
Total, Carrying Amount | [1] | 205,289 | 364,956 | ||
Senior Unsecured Debt, Net, Fair Value | 227,684 | 386,253 | |||
Unsecured Term Loan | |||||
Debt Disclosure [Line Items] | |||||
Total, Carrying Amount | [1] | 460,000 | 460,000 | ||
Unsecured Term Loan, Fair Value | 460,920 | 460,970 | |||
Unsecured Credit Facility | |||||
Debt Disclosure [Line Items] | |||||
Total, Carrying Amount | [1] | 313,500 | 52,500 | ||
Unsecured Credit Facility, Fair Value | $ 313,500 | $ 52,500 | |||
|
Variable Interest Entities - Condensed Balance Sheet (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets: | ||
Net Investment in Real Estate | $ 2,543,231 | $ 2,502,638 |
Total Assets | 2,732,419 | 2,709,808 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 505,451 | 561,241 |
Total Liabilities and Equity/Partners' Capital | 2,732,419 | 2,709,808 |
Other Real Estate Partnerships | ||
Assets: | ||
Net Investment in Real Estate | 304,246 | 306,866 |
Other Assets, Net | 20,524 | 20,104 |
Total Assets | 324,770 | 326,970 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 71,415 | 77,071 |
Other Liabilities, Net | 38,404 | 43,103 |
Partners’ Capital | 214,951 | 206,796 |
Total Liabilities and Equity/Partners' Capital | $ 324,770 | $ 326,970 |
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | $ 0 | $ 0 |
Common stock dividends and Unit distributions | $ 22,005 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Shares | 9,823 | 9,825 |
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | $ 98 | $ 95 |
Common Stock / Operating Partnership Units | ||
Class of Stock [Line Items] | ||
Common stock dividends and Unit distributions | 22,005 | |
First Industrial, L.P. | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | 0 | 0 |
Noncontrolling Interest | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | (98) | $ (95) |
Common stock dividends and Unit distributions | $ 816 |
Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership - Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Noncontrolling Interest [Line Items] | ||
Beginning Balance | $ 42,035 | |
Net Income | 607 | $ 93 |
Other Comprehensive (Loss) Income (Including a Reallocation of $3 and $2) | (12,394) | |
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | 0 | 0 |
Reallocation - Additional Paid-in-Capital | 0 | |
Ending Balance | 41,222 | |
Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 42,035 | 41,877 |
Net Income | 607 | 93 |
Distributions | (816) | (557) |
Other Comprehensive (Loss) Income (Including a Reallocation of $3 and $2) | (459) | 142 |
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | (98) | (95) |
Reallocation - Additional Paid-in-Capital | (47) | (34) |
Ending Balance | 41,222 | 41,426 |
Reallocation - Other Comprehensive Income (Loss) | 3 | 2 |
First Industrial, L.P. | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 1,096 | |
Net Income | 14 | 26 |
Contributions | 3 | |
Distributions | (33) | |
Other Comprehensive (Loss) Income (Including a Reallocation of $3 and $2) | (12,394) | |
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | 0 | 0 |
Ending Balance | 1,080 | |
First Industrial, L.P. | Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 1,096 | 1,080 |
Net Income | 14 | 26 |
Contributions | 3 | 2 |
Distributions | (33) | 0 |
Ending Balance | $ 1,080 | $ 1,108 |
Accumulated Other Comprehensive Loss (Changes in AOCI) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ (9,667) |
Other Comprehensive Loss Before Reclassifications | (13,873) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,938 |
Net Current Period Other Comprehensive Loss | (11,935) |
Balance | (21,602) |
Interest Rate Protection Agreements | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (10,043) |
Other Comprehensive Loss Before Reclassifications | (14,332) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,938 |
Net Current Period Other Comprehensive Loss | (12,394) |
Balance | (22,437) |
Comprehensive Loss Attributable to Noncontrolling Interest of the Company | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 376 |
Other Comprehensive Loss Before Reclassifications | 459 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 0 |
Net Current Period Other Comprehensive Loss | 459 |
Balance | 835 |
First Industrial, L.P. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (10,043) |
Balance | (22,437) |
First Industrial, L.P. | Interest Rate Protection Agreements | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (10,043) |
Other Comprehensive Loss Before Reclassifications | (14,332) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,938 |
Net Current Period Other Comprehensive Loss | (12,394) |
Balance | $ (22,437) |
Accumulated Other Comprehensive Loss (Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Mark-to-Market Loss on Interest Rate Protection Agreements | $ 0 | $ (12,990) |
Interest Expense | 16,259 | 16,642 |
Total | (9,881) | (22,448) |
Reclassification Out Of Accumulated Other Comprehensive Income | Interest Rate Protection Agreements | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total | 1,938 | 14,178 |
Interest Rate Swap | Reclassification Out Of Accumulated Other Comprehensive Income | Interest Rate Protection Agreements | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Mark-to-Market Loss on Interest Rate Protection Agreements | 0 | 12,990 |
Interest Expense | 1,836 | 1,057 |
Interest Rate Contract | Reclassification Out Of Accumulated Other Comprehensive Income | Interest Rate Protection Agreements | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest Expense | $ 102 | $ 131 |
Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Accumulated Other Comprehensive Loss [Abstract] | |
Amortization to be reclassified from OCI into income | $ 385 |
Earnings Per Share / Unit (EPS / EPU) - Computation of Basic and Diluted EPS / EPU (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Numerator: | ||
Net Income Available to Common Stockholders / Unitholders and Participating Securities | $ 15,688 | $ 2,373 |
Net Income Allocable to Participating Securities | (63) | (41) |
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ 15,625 | $ 2,332 |
Denominator: | ||
Weighted Average Shares / Units - Basic | 110,793 | 110,310 |
LTIP Unit Awards (As Defined in Note 9) | 192 | 365 |
Weighted Average Shares / Units - Diluted | 110,985 | 110,675 |
Basic and Diluted EPS / EPU: | ||
Net Income Available to Common Stockholders / Unitholders | $ 0.14 | $ 0.02 |
First Industrial, L.P. | ||
Numerator: | ||
Net Income Available to Common Stockholders / Unitholders and Participating Securities | $ 16,281 | $ 2,457 |
Net Income Allocable to Participating Securities | (63) | (41) |
Net Income Available to Unitholders | $ 16,218 | $ 2,416 |
Denominator: | ||
Weighted Average Shares / Units - Basic | 115,096 | 114,681 |
LTIP Unit Awards (As Defined in Note 9) | 192 | 365 |
Weighted Average Shares / Units - Diluted | 115,288 | 115,046 |
Basic and Diluted EPS / EPU: | ||
Net Income Available to Common Stockholders / Unitholders | $ 0.14 | $ 0.02 |
Earnings Per Share / Unit (EPS / EPU) - Additional Information (Detail) - shares |
Mar. 31, 2016 |
Mar. 31, 2015 |
---|---|---|
Earnings Per Share [Abstract] | ||
Unvested Restricted Stock / Unit Awards | 421,291 | 391,721 |
Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amortization related to restricted stock/Unit awards and LTIP Unit Awards | $ 2,963 | $ 2,561 |
Unrecognized compensation related to unvested restricted stock/Unit awards and LTIP Unit Awards | $ 11,077 | |
Weighted average period of unrecognized compensation expected to be recognized | 9 months | |
LTIP Unit Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of LTIP Unit Awards | 0.00% | |
LTIP Unit Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of LTIP Unit Awards | 100.00% | |
Management | Restricted Stock/Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock/Unit awards and LTIP Unit Awards issued | 308,373 | |
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 6,047 | |
Vesting period of restricted stock/Unit awards issued | 3 years | |
Compensation expense recognized at date of grant | $ 1,590 | $ 1,250 |
Management | LTIP Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock/Unit awards and LTIP Unit Awards issued | 254,524 | |
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 2,561 |
Derivatives - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Derivative [Line Items] | |||
Mark-to-Market Loss on Settled Swaps | $ 12,990 | ||
2014 Swaps | |||
Derivative [Line Items] | |||
Debt Instrument, Term | 7 years | ||
Debt Instrument, Face Amount | $ 200,000 | ||
Debt instrument, LIBOR Rate | one month LIBOR | ||
Swaps, Number of Instruments Held | 4 | ||
Swaps, Notional Amount | $ 200,000 | ||
Swaps, Average Fixed Interest Rate | 2.29% | ||
2015 Swaps | |||
Derivative [Line Items] | |||
Debt Instrument, Term | 7 years | ||
Debt Instrument, Face Amount | $ 260,000 | ||
Debt instrument, LIBOR Rate | one month LIBOR | ||
Swaps, Number of Instruments Held | 6 | ||
Swaps, Notional Amount | $ 260,000 | ||
Swaps, Average Fixed Interest Rate | 1.79% | ||
Settled Swaps | |||
Derivative [Line Items] | |||
Debt instrument, LIBOR Rate | three month LIBOR | ||
Swaps, Number of Instruments Held | 3 | ||
Swaps, Notional Amount | $ 220,000 | ||
Settlement Payment on Settled Swaps | $ 11,546 |
Derivatives - Fair Value Measurements on Recurring Basis (Detail) $ in Thousands |
Mar. 31, 2016
USD ($)
|
---|---|
2014 Swaps | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | $ (11,808) |
2014 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | 0 |
2014 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | (11,808) |
2014 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | 0 |
2015 Swaps | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | (9,131) |
2015 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | 0 |
2015 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | (9,131) |
2015 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Fair Value on Recurring Basis [Line Items] | |
Fair Value | $ 0 |
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, ft² in Millions |
Mar. 31, 2016
USD ($)
ft²
Property
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Number of industrial properties under construction | Property | 5 |
Gross leasable area (GLA) of industrial properties under construction | ft² | 1.5 |
Estimated total investment | $ 94,100 |
Estimated total investment remaining to be funded | $ 50,300 |
Subsequent Events - Additional Information (Detail) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Apr. 28, 2016
USD ($)
Property
Land_Parcel
shares
|
Mar. 31, 2016
USD ($)
Property
|
Mar. 31, 2015
USD ($)
|
|
Subsequent Event [Line Items] | |||
Number of industrial properties acquired | Property | 1 | ||
Number of land parcels acquired | Property | 0 | ||
Purchase price of industrial properties acquired | $ | $ 47,406 | $ 0 | |
Number of industrial properties sold | Property | 5 | ||
Proceeds from sale of industrial properties | $ | $ 16,319 | ||
Subsequent Events | |||
Subsequent Event [Line Items] | |||
Number of industrial properties acquired | Property | 1 | ||
Number of land parcels acquired | Land_Parcel | 1 | ||
Purchase price of industrial properties acquired | $ | $ 23,266 | ||
Number of industrial properties sold | Property | 5 | ||
Proceeds from sale of industrial properties | $ | $ 15,418 | ||
Number of shares of common stock issued | shares | 5,600,000 | ||
Proceeds from issuance of common stock | $ | $ 124,936 |
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