10-K 1 c93058e10vk.htm ANNUAL REPORT e10vk
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
     
þ
  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
    For the fiscal year ended December 31, 2004
 
OR
 
o
   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
    For the transition period from           to
Commission File Number 1-13102
FIRST INDUSTRIAL REALTY TRUST, INC.
(Exact name of Registrant as specified in its Charter)
     
Maryland   36-3935116
(State or other jurisdiction of
incorporation or organization)		   (I.R.S. Employer
Identification No.)
 
311 S. Wacker Drive, Suite 4000, Chicago, Illinois   60606
(Address of principal executive offices)   (Zip Code)
(312) 344-4300
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Common Stock
(Title of class)
New York Stock Exchange
(Name of exchange on which registered)
Depositary Shares Each Representing 1/100 of a Share of 8.625% Series C Cumulative Preferred Stock
(Title of class)
New York Stock Exchange
(Name of exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act:
None
      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes þ          No o
      Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     þ
      Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).     Yes þ          No o
      The aggregate market value of the voting and non-voting stock held by non-affiliates of the Registrant was approximately $1,475 million based on the closing price on the New York Stock Exchange for such stock on June 30, 2004.
      At March 23, 2005, 42,944,619 shares of the Registrant’s Common Stock, $.01 par value, were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
      Part III incorporates certain information by reference to the Registrant’s definitive proxy statement expected to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year.
 
 

FIRST INDUSTRIAL REALTY TRUST, INC.
TABLE OF CONTENTS
             
        Page
         
 Part I.
   Business     3  
   Properties     8  
   Legal Proceedings     36  
   Submission of Matters to a Vote of Security Holders     37  
 
 Part II.
   Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities     37  
   Selected Financial Data     38  
   Management’s Discussion and Analysis of Financial Condition and Results of Operations     41  
   Quantitative and Qualitative Disclosures About Market Risk     64  
   Financial Statements and Supplementary Data     64  
   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure     64  
   Controls and Procedures     64  
   Other Information     65  
 
 Part III.
   Directors and Executive Officers of the Registrant     66  
   Executive Compensation     66  
   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters     66  
   Certain Relationships and Related Transactions     66  
   Principal Accountant Fees and Services     66  
 
 Part IV.
   Exhibits and Financial Statement Schedules     67  
        71  
 Amendment No. 1 Dated March 4, 2005 to the LP Agreement
 Computation of Ratio of Earnings to Fixed Charges
 Subsidiaries
 Consent of PricewaterhouseCoopers LLP
 Certification of Principal Executive Officer
 Certification of Principal Financial Officer
 Certification of the Principal Executive Officer and Principal Financial Officer

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      This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. First Industrial Realty Trust, Inc. (the “Company”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of complying with those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company on a consolidated basis include, but are not limited to, changes in: economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of financing, interest rate levels, competition, supply and demand for industrial properties in the Company’s current and proposed market areas, potential environmental liabilities, slippage in development or lease-up schedules, tenant credit risks, higher-than-expected costs and changes in general accounting principles, policies and guidelines applicable to real estate investment trusts. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included herein and in the Company’s other filings with the Securities and Exchange Commission.

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PART I
THE COMPANY
Item 1. Business
General
      First Industrial Realty Trust, Inc. is a Maryland corporation organized on August 10, 1993, and is a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). First Industrial Realty Trust, Inc., (together with its consolidated subsidiaries, the “Company”) is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, redevelops and develops industrial real estate. The Company completed its initial public offering in June 1994 (the “Initial Offering”). Upon consummation of the Initial Offering, the Company owned 226 industrial properties which contained an aggregate of 17.4 million square feet of gross leasable area (“GLA”). As of December 31, 2004, the Company’s in-service portfolio consisted of 403 light industrial properties, 151 R&D/ flex properties, 157 bulk warehouse properties, 91 regional warehouse properties and 25 manufacturing properties containing approximately 61.7 million square feet of GLA located in 22 states. The Company’s in-service portfolio includes all properties other than developed and acquired properties that have not yet reached stabilized occupancy (generally defined as properties that are 90% leased).
      The Company’s interests in its properties and land parcels are held through (i) partnerships controlled by the Company, including First Industrial, L.P. (the “Operating Partnership”), of which the Company is the sole general partner, as well as, among others, First Industrial Financing Partnership, L.P., First Industrial Securities, L.P., First Industrial Mortgage Partnership, L.P. (the “Mortgage Partnership”), First Industrial Pennsylvania, L.P., First Industrial Harrisburg, L.P., First Industrial Indianapolis, L.P., FI Development Services, L.P. and TK-SV, LTD., each of which the sole general partner is a wholly-owned subsidiary of the Company and the sole limited partner is the Operating Partnership; (ii) limited liability companies, of which the Operating Partnership is the sole member; and (iii) First Industrial Development Services, Inc., of which the Operating Partnership is the sole stockholder, all of whose operating data is consolidated with that of the Company as presented herein. The Company, through separate wholly-owned limited liability companies of which the Operating Partnership is the sole member, also owns minority equity interests in, and provides asset and property management services to, two joint ventures which invest in industrial properties (the “September 1998 Joint Venture” and the “May 2003 Joint Venture”). The Company, through a separate, wholly-owned limited liability company of which the Operating Partnership is also the sole member, also owned a minority interest in and provided property management services to a third joint venture which invested in industrial properties (the “December 2001 Joint Venture”; together with the September 1998 Joint Venture and the May 2003 Joint Venture, the “Joint Ventures”). During the year ended December 31, 2004, the December 2001 Joint Venture sold all of its industrial properties. The operating data of the Joint Ventures is not consolidated with that of the Company as presented herein.
      The Company utilizes an operating approach which combines the effectiveness of decentralized, locally-based property management, acquisition, sales and development functions with the cost efficiencies of centralized acquisition, sales and development support, capital markets expertise, asset management and fiscal control systems. At March 23, 2005, the Company had 353 employees.
      The Company has grown and will seek to continue to grow through the development and acquisition of additional industrial properties and through its corporate services program.
      The Company maintains a website at www.firstindustrial.com. Copies of the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to such reports are available without charge on the Company’s website as soon as reasonably practicable after such reports are filed with or furnished to the SEC. In addition, the Company’s Corporate Governance Guidelines, Code of Business Conduct and Ethics, Audit Committee Charter, Compensation Committee

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Charter, Nominating/ Corporate Governance Committee Charter, along with supplemental financial and operating information prepared by the Company, are all available without charge on the Company’s website or upon request to the Company. Amendments to, or waivers from, the Company’s Code of Business Conduct and Ethics that apply to the Company’s executive officers or directors shall be posted to the Company’s website at www.firstindustrial.com. Please direct requests as follows:
First Industrial Realty Trust, Inc.
311 S. Wacker, Suite 4000
Chicago, IL 60606
Attention: Investor Relations
Business Objectives and Growth Plans
      The Company’s fundamental business objective is to maximize the total return to its stockholders through increases in per share distributions and increases in the value of the Company’s properties and operations. The Company’s growth plans include the following elements:
  •  Internal Growth. The Company seeks to grow internally by (i) increasing revenues by renewing or re-leasing spaces subject to expiring leases at higher rental levels; (ii) increasing occupancy levels at properties where vacancy exists and maintaining occupancy elsewhere; (iii) controlling and minimizing property operating and general and administrative expenses; (iv) renovating existing properties; and (v) increasing ancillary revenues from non-real estate sources.
 
  •  External Growth. The Company seeks to grow externally through (i) the development of industrial properties; (ii) the acquisition of portfolios of industrial properties, industrial property businesses or individual properties which meet the Company’s investment parameters and target markets; and (iii) the expansion of its properties.
 
  •  Corporate Services. Through its corporate services program, the Company builds for, purchases from, and leases and sells industrial properties to companies that need industrial facilities. The Company seeks to grow this business by targeting both large and middle-market public and private companies.
Business Strategies
      The Company utilizes the following six strategies in connection with the operation of its business:
  •  Organization Strategy. The Company implements its decentralized property operations strategy through the deployment of experienced regional management teams and local property managers. Each operating region is headed by a managing director, who is a senior executive officer of, and has an equity interest in, the Company. The Company provides acquisition, development and financing assistance, asset management oversight and financial reporting functions from its headquarters in Chicago, Illinois to support its regional operations. The Company believes the size of its portfolio enables it to realize operating efficiencies by spreading overhead among many properties and by negotiating purchasing discounts.
 
  •  Market Strategy. The Company’s market strategy is to concentrate on the top industrial real estate markets in the United States. These top markets are based upon one or more of the following characteristics: (i) the strength of the market’s industrial real estate fundamentals, including increased industrial demand expectations; (ii) the history and outlook for continued economic growth and industry diversity; and (iii) a minimum market size of 100 million square feet of industrial space.
 
  •  Leasing and Marketing Strategy. The Company has an operational management strategy designed to enhance tenant satisfaction and portfolio performance. The Company pursues an active leasing strategy, which includes broadly marketing available space, seeking to renew existing leases at higher rents per square foot and seeking leases which provide for the pass-through of property-

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  related expenses to the tenant. The Company also has local and national marketing programs which focus on the business and real estate brokerage communities and national tenants.
 
  •  Acquisition/ Development Strategy. The Company’s acquisition/development strategy is to invest in properties and other assets with higher yield potential in the top industrial real estate markets in the United States. Of the 827 industrial properties in the Company’s in-service portfolio at December 31, 2004, 137 properties have been developed by the Company or its former management. The Company will continue to leverage the development capabilities of its management, many of whom are leading industrial property developers in their respective markets.
 
  •  Disposition Strategy. The Company continuously evaluates local market conditions and property-related factors in all of its markets for purposes of identifying assets suitable for disposition.
 
  •  Financing Strategy. The Company plans on utilizing a portion of net sales proceeds from property sales, borrowings under its $300 million unsecured line of credit and proceeds from the issuance, when and as warranted, of additional equity securities to finance future acquisitions and developments. As of March 23, 2005, the Company had approximately $98.3 million available in additional borrowings under its $300 million unsecured line of credit.

Recent Developments
      In 2004, the Company acquired or placed in-service developments totaling 95 industrial properties and acquired several parcels of land for a total investment of approximately $517.7 million. The Company also sold 97 industrial properties and several parcels of land for a gross sales price of approximately $424.9 million. At December 31, 2004, the Company owned 827 in-service industrial properties containing approximately 61.7 million square feet of GLA.
      On May 17, 2004, the Company, through the Operating Partnership, exchanged $125.0 million of senior unsecured debt which matures on June 1, 2014 and bears a coupon interest rate of 6.42% (the “2014 Notes”) for $100.0 million aggregate principal amount of its 7.375% Notes due 2011 (the “2011 PATS”) and net cash in the amount of approximately $8.9 million. The issue price of the 2014 Notes was 99.123%.
      On May 27, 2004, the Company issued 50,000 Depositary Shares, each representing 1/100th of a share of the Company’s 6.236%, $.01 par value, Series F Flexible Cumulative Redeemable Preferred Stock (the “Series F Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share. Dividends on the Series F Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance through March 31, 2009 (the “Series F Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 6.236% per annum of the liquidation preference (the “Series F Initial Distribution Rate”) (equivalent to $62.36 per Depositary Share). On or after March 31, 2009, the Series F Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.375% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate)(as defined in the Articles Supplementary), reset quarterly. Dividends on the Series F Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series F Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series F Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s 8.625%, $.01 par value, Series C Cumulative Preferred Stock (the “Series C Preferred Stock”) and Series G Preferred Stock (hereinafter defined). On or after March 31, 2009, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series F Initial Fixed Rate Period, the Series F Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or

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$50.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series F Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.
      On May 27, 2004, the Company issued 25,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.236%, $.01 par value, Series G Flexible Cumulative Redeemable Preferred Stock (the “Series G Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share. Dividends on the Series G Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance of the Series G Preferred Stock through March 31, 2014 (the “Series G Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 7.236% per annum of the liquidation preference (the “Series G Initial Distribution Rate”) (equivalent to $72.36 per Depositary Share). On or after March 31, 2014, the Series G Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.500% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate) (as defined in the Articles Supplementary), reset quarterly. Dividends on the Series G Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series G Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series G Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock and Series F Preferred Stock. On or after March 31, 2014, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series G Initial Fixed Rate Period, the Series G Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $25.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series G Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.
      On June 2, 2004, the Company issued 500 shares of 2.965%, $.01 par value, Series H Flexible Cumulative Redeemable Preferred Stock (the “Series H Preferred Stock”), at an initial offering price of $250,000.00 per share. On or after July 2, 2004, the Series H Preferred Stock became redeemable for cash at the option of the Company, in whole but not in part, at a redemption price equivalent, initially, to $242,875.00 per share, plus accrued and unpaid dividends. The Company redeemed the Series H Preferred Stock on July 2, 2004 and paid a prorated second and third quarter dividend of $629.555 per share, totaling approximately $.3 million.
      On June 7, 2004, the Company redeemed 5,000,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.95%, $.01 par value, Series D Cumulative Preferred Stock, at a redemption price of $25.00 per Depositary Share, and a paid a prorated second quarter dividend of $.36990 per Depositary Share, totaling approximately $1.9 million.
      On June 7, 2004, the Company redeemed 3,000,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.90%, $.01 par value, Series E Cumulative Preferred Stock, at a redemption price of $25.00 per Depositary Share, and a paid prorated second quarter dividend of $.36757 per Depositary Share, totaling approximately $1.1 million.
      On June 11, 2004, the Company, through the Operating Partnership, amended and restated its $300.0 million Unsecured Line of Credit. The Unsecured Line of Credit matures on September 28, 2007 and bears interest at a floating rate of LIBOR plus .70%, or the Prime Rate, at the Company’s election.
      On June 14, 2004, the Company, through the Operating Partnership, issued $125.0 million of senior unsecured debt which matures on June 15, 2009 and bears a coupon interest rate of 5.25% (the “2009 Notes”). The issue price of the 2009 Notes was 99.826%. The Company also entered into interest rate protection agreements which were used to fix the interest rate on the 2009 Notes prior to issuance. The Company settled the interest rate protection agreements for approximately $6.7 million of proceeds, which is included in other comprehensive income.

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      On September 16, 2004, the Company and the Operating Partnership entered into a sales agreement to sell up to 3,900,000 shares of the Company’s common stock from time to time with Cantor Fitzgerald & Co., as sales agent, in a controlled equity offering program. During the year ended December 31, 2004, the Company issued 1,333,600 shares of common stock under the controlled equity offering program and received net proceeds of $48.8 million.
      On September 30, 2004, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of approximately $12.1 million which bears interest at a fixed rate of 5.6%, provides for monthly principal and interest payments based on a 30-year amortization schedule and matures on November 10, 2012. In conjunction with the assumption of the loan, the Company recorded a premium in the amount of $.5 million which will be amortized over the remaining life of the loan as an adjustment to interest expense.
      On December 3, 2004, the Company, through the Operating Partnership, paid off and retired its $4.3 million mortgage loan which bore interest at 7.61%, provided for monthly principal and interest payments based on a 30-year amortization schedule, and was to mature on May 1, 2012.
      On December 21, 2004, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $6.2 million (the “Acquisition Mortgage Loan XIV”). The Acquisition Mortgage Loan XIV is collateralized by several properties in Tampa, Florida, bears interest at a fixed rate of 6.94% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan XIV matures on July 1, 2009. In conjunction with the assumption of the Acquisition Mortgage Loan XIV, the Company recorded a premium in the amount of $.6 million which will be amortized over the remaining life of the Acquisition Mortgage Loan XIV as an adjustment to interest expense.
      From January 1, 2005 to March 23, 2005, the Company acquired eight industrial properties and several land parcels for a total estimated investment of approximately $47.6 million (approximately $1.5 million of which was made through the issuance of limited partnership interests in the Operating Partnership (“Units”)). The Company also sold 13 industrial properties for approximately $136.0 million of gross proceeds during this period.
      On March 1, 2005, the Company declared a first quarter 2005 distribution of $.6950 per common share/unit on its common stock/units which is payable on April 18, 2005. The Company also declared first quarter 2005 dividends of $53.906 per share ($.53906 per Depositary Share), on its Series C Preferred Stock, totaling, in the aggregate, approximately $1.1 million, which is payable on March 31, 2005; semi-annual dividends of $3,118.00 per share ($31.18 per Depositary Share) on its Series F Preferred Stock, totaling, in the aggregate, approximately $1.6 million, which is payable on March 31, 2005; and semi-annual dividends of $3,618.00 per share ($36.18 per Depositary Share) on its Series G Preferred Stock, totaling, in the aggregate, approximately $.9 million, which is payable on March 31, 2005.
Future Property Acquisitions, Developments and Property Sales
      The Company has an active acquisition and development program through which it is continually engaged in identifying, negotiating and consummating portfolio and individual industrial property acquisitions and developments. As a result, the Company is currently engaged in negotiations relating to the possible acquisition and development of certain industrial properties located in the United States.
      The Company also sells properties based on market conditions and property related factors. As a result, the Company is currently engaged in negotiations relating to the possible sale of certain industrial properties in the Company’s current portfolio.
      When evaluating potential industrial property acquisitions and developments, as well as potential industrial property sales, the Company will consider such factors as: (i) the geographic area and type of property; (ii) the location, construction quality, condition and design of the property; (iii) the potential for capital appreciation of the property; (iv) the ability of the Company to improve the property’s performance through renovation; (v) the terms of tenant leases, including the potential for rent increases; (vi) the

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potential for economic growth and the tax and regulatory environment of the area in which the property is located; (vii) the potential for expansion of the physical layout of the property and/or the number of sites; (viii) the occupancy and demand by tenants for properties of a similar type in the vicinity; and (ix) competition from existing properties and the potential for the construction of new properties in the area.
INDUSTRY
      Industrial properties are typically used for the design, assembly, packaging, storage and distribution of goods and/or the provision of services. As a result, the demand for industrial space in the United States is related to the level of economic output. Historically, occupancy rates for industrial property in the United States have been higher than those for other types of commercial property. The Company believes that the higher occupancy rate in the industrial property sector is a result of the construction-on-demand nature of, and the comparatively short development time required for, industrial property. For the five years ended December 31, 2004, the occupancy rates for industrial properties in the United States have ranged from 88.4%* to 93.4%*, with an occupancy rate of 89.1%* at December 31, 2004.
Item 2. Properties
General
      At December 31, 2004, the Company owned 827 in-service industrial properties containing approximately 61.7 million square feet of GLA in 22 states, with a diverse base of more than 2,400 tenants engaged in a wide variety of businesses, including manufacturing, retail, wholesale trade, distribution and professional services. The properties are generally located in business parks that have convenient access to interstate highways and/or rail and air transportation. The weighted average age of the properties as of December 31, 2004 was approximately 19 years. The Company maintains insurance on its properties that the Company believes is adequate.
      The Company classifies its properties into five industrial categories: light industrial, R&D/flex, bulk warehouse, regional warehouse and manufacturing. While some properties may have characteristics which fall under more than one property type, the Company uses what it feels is the most dominating characteristic to categorize its property. The following describes, generally, the different industrial categories:
  •  Light industrial properties are of less than 100,000 square feet, have a ceiling height of 16 to 21 feet, are comprised of 5%-50% of office space, contain less than 50% of manufacturing space and have a land use ratio of 4:1. The land use ratio is the ratio of the total property area to that which is occupied by the building.
 
  •  R&D/flex buildings are of less than 100,000 square feet, have a ceiling height of less than 16 feet, are comprised of 50% or more of office space, contain less than 25% of manufacturing space and have a land use ratio of 4:1.
 
  •  Bulk warehouse buildings are of more than 100,000 square feet, have a ceiling height of at least 22 feet, are comprised of 5%-15% of office space, contain less than 25% of manufacturing space and have a land use ratio of 2:1.
 
  •  Regional warehouses are of less than 100,000 square feet, have a ceiling height of at least 22 feet, are comprised of 5%-15% of office space, contain less than 25% of manufacturing space and have a land use ratio of 2:1.
 
      *Source: Torto Wheaton Research

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  •  Manufacturing properties are a diverse category of buildings that have a ceiling height of 10-18 feet, are comprised of 5%-15% of office space, contain at least 50% of manufacturing space and have a land use ratio of 4:1.
      Each of the properties is wholly owned by the Company. The following tables summarize certain information as of December 31, 2004 with respect to the Company’s in-service properties.
Property Summary
                                                                                   
    Light Industrial   R&D/Flex   Bulk Warehouse   Regional Warehouse   Manufacturing
                     
        Number of       Number of       Number of       Number of       Number of
Metropolitan Area   GLA   Properties   GLA   Properties   GLA   Properties   GLA   Properties   GLA   Properties
                                         
Atlanta, GA
     598,106       11       294,074       7       3,385,754       11       383,935       5       298,000       2  
Baltimore, MD
     727,370       12       —       —       749,830       4       —       —       171,000       1  
Central Pennsylvania
     383,070       4       —       —       1,963,886       9       117,579       3       —       —  
Chicago, IL
     1,144,615       20       247,084       4       2,110,988       10       50,009       1       589,000       3  
Cincinnati, OH
     384,220       3       —       —       1,693,880       7       —       —       —       —  
Columbus, OH
     217,612       2       —       —       1,654,437       4       —       —       —       —  
Dallas, TX
     1,713,803       45       492,503       20       2,369,671       18       831,941       13       224,984       2  
Denver, CO
     1,550,521       30       1,289,162       34       1,202,317       7       526,723       8       —       —  
Des Moines, IA
     —       —       —       —       —       —       88,000       1       —       —  
Detroit, MI
     2,234,543       84       426,112       15       658,643       6       684,978       16       —       —  
Grand Rapids, MI
     61,250       1       —       —       —       —       —       —       —       —  
Houston, TX
     536,211       7       201,363       3       2,130,764       13       365,960       5       —       —  
Indianapolis, IN
     775,980       17       48,200       4       3,218,628       13       277,710       7       71,600       2  
Los Angeles, CA
     272,594       11       18,921       4       961,706       5       345,258       7       —       —  
Louisville, KY
     —       —       —       —       443,500       2       —       —       —       —  
Miami, FL
     —       —       —       —       268,539       1       —       —       —       —  
Milwaukee, WI
     146,061       3       93,705       2       524,894       4       39,468       1       —       —  
Minneapolis/ St. Paul, MN
     1,118,955       18       695,165       10       1,433,082       6       201,813       2       1,057,040       11  
Nashville, TN
     273,843       5       —       —       1,549,322       7       —       —       109,058       1  
N. New Jersey
     1,167,489       21       425,996       8       1,380,965       8       238,485       3       —       —  
Philadelphia, PA
     1,131,651       23       128,059       5       43,400       1       211,316       3       56,827       2  
Phoenix, AZ
     234,851       8       —       —       407,205       3       469,923       6       —       —  
Salt Lake City, UT
     499,164       33       146,937       6       324,568       2       —       —       —       —  
San Diego, CA
     —       —       —       —       397,760       2       179,541       5       —       —  
S. New Jersey
     921,604       20       37,450       2       —       —       118,496       2       22,738       1  
St. Louis, MO
     688,165       9       —       —       1,533,507       10       96,392       1       —       —  
Tampa, FL
     517,252       13       733,522       27       —       —       41,377       1       —       —  
Other(a)
     99,000       3       —       —       668,155       4       50,000       1       —       —  
                                                             
 
Total
     17,397,930       403       5,278,253       151       31,075,401       157       5,318,904       91       2,600,247       25  
                                                             
 
(a)  Properties are located in Wichita, Kansas; McAllen, TX; Austin, TX, and Sparks, NV.

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Property Summary Totals
                                   
    Totals
     
        Average   GLA as a %
        Number of   Occupancy at   of Total
Metropolitan Area   GLA   Properties   12/31/04   Portfolio
                 
Atlanta, GA
     4,959,869       36       88%       8.0%  
Baltimore, MD
     1,648,200       17       92%       2.7%  
Central Pennsylvania
     2,464,535       16       89%       4.0%  
Chicago, IL
     4,141,696       38       84%       6.7%  
Cincinnati, OH
     2,078,100       10       88%       3.4%  
Columbus, OH
     1,872,049       6       98%       3.0%  
Dallas, TX
     5,632,902       98       92%       9.1%  
Denver, CO
     4,568,723       79       91%       7.4%  
Des Moines, IA
     88,000       1       46%       0.1%  
Detroit, MI
     4,004,276       121       93%       6.5%  
Grand Rapids, MI
     61,250       1       100%       0.1%  
Houston, TX
     3,234,298       28       91%       5.2%  
Indianapolis, IN
     4,392,118       43       81%       7.1%  
Los Angeles, CA
     1,598,479       27       100%       2.6%  
Louisville, KY
     443,500       2       100%       0.7%  
Miami, FL
     268,539       1       100%       0.4%  
Milwaukee, WI
     804,128       10       100%       1.3%  
Minneapolis/ St. Paul, MN
     4,506,055       47       87%       7.3%  
Nashville, TN
     1,932,223       13       90%       3.1%  
N. New Jersey
     3,212,935       40       87%       5.2%  
Philadelphia, PA
     1,571,253       34       91%       2.5%  
Phoenix, AZ
     1,111,979       17       92%       1.8%  
Salt Lake City, UT
     970,669       41       89%       1.6%  
San Diego, CA
     577,301       7       93%       0.9%  
S. New Jersey
     1,100,288       25       100%       1.8%  
St. Louis, MO
     2,318,064       20       95%       3.8%  
Tampa, FL
     1,292,151       41       87%       2.1%  
Other(a)
     817,155       8       100%       1.3%  
                         
 
Total or Average
     61,670,735       827       90%       100.0%  
                         
 
(a)  Properties are located in Wichita, Kansas; McAllen, TX; Austin, TX, and Sparks, NV.

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Property Acquisition Activity
      During 2004, the Company acquired 79 industrial properties totaling approximately 9.2 million square feet of GLA at a total purchase price of approximately $365.9 million, or approximately $39.62 per square foot. The Company also purchased several land parcels for an aggregate purchase price of approximately $36.5 million. The 79 industrial properties acquired have the following characteristics:
                             
                Average
    Number of           Occupancy at
Metropolitan Area   Properties   GLA   Property Type   12/31/04(g)
                 
St. Louis, MO
     6       812,685     Light Industrial/Regional & Bulk Warehouse     99 %
Nashville, TN(a)
     1       98,150     Manufacturing     N/A  
Nashville, TN
     1       522,483     Bulk Warehouse     100 %
Cincinnati, OH(a)
     1       482,772     Bulk Warehouse     N/A  
Minneapolis, MN(b)
     1       81,927     Light Industrial     N/A  
Salt Lake City, UT(c)
     4       93,600     Light Industrial     100 %
Denver, CO
     3       663,411     Bulk Warehouse     100 %
Atlanta, GA(a)
     1       151,743     Bulk Warehouse     N/A  
Phoenix, AZ
     1       22,978     Light Industrial     100 %
Chicago, IL
     1       76,430     Light Industrial     100 %
Chicago, IL
     1       169,000     Manufacturing     100 %
Minneapolis, MN
     1       216,700     Bulk Warehouse     100 %
Milwaukee, WI
     1       103,024     Bulk Warehouse     100 %
Los Angeles, CA
     2       73,000     Light Industrial     100 %
Dallas, TX
     1       85,200     Regional Warehouse     100 %
Milwaukee, WI(a)
     1       60,000     Light Industrial     N/A  
Northern New Jersey
     1       92,400     Regional Warehouse     100 %
Northern New Jersey
     1       194,258     Bulk Warehouse     100 %
Milwaukee, WI
     2       321,870     Bulk Warehouse     100 %
Minneapolis, MN
     1       71,905     Light Industrial     100 %
Dallas, TX(d)
     12       853,857     Light Industrial/Regional & Bulk Warehouse     94 %
Baltimore, MD
     1       300,000     Bulk Warehouse     100 %
Northern New Jersey
     1       208,000     Bulk Warehouse     100 %
Northern New Jersey
     1       115,536     Bulk Warehouse     100 %
Phoenix, AZ
     3       407,205     Bulk Warehouse     100 %
Baltimore, MD
     1       138,920     Bulk Warehouse     100 %
Baltimore, MD
     1       148,215     Bulk Warehouse     100 %
Baltimore, MD
     2       125,000     Light Industrial     59 %
Philadelphia, PA
     1       48,000     Light Industrial     100 %
Los Angeles, CA
     1       100,000     Bulk Warehouse     100 %
Minneapolis, MN(e)
     2       162,408     R&D/Flex     100 %
Miami, FL
     1       268,539     Bulk Warehouse     100 %
Baltimore, MD
     1       376,295     Bulk Warehouse     100 %
Tampa, FL(f)
     7       201,620     R&D/Flex/Light Industrial     100 %
Atlanta, GA(b)
     1       239,435     Manufacturing     N/A  
Dallas, TX
     1       261,102     Bulk Warehouse     100 %

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                Average
    Number of           Occupancy at
Metropolitan Area   Properties   GLA   Property Type   12/31/04(g)
                 
Houston, TX(f)
     5       155,131     Light Industrial     N/A  
Minneapolis, MN
     1       47,263     Light Industrial     100 %
Cincinnati, OH
     1       345,000     Bulk Warehouse     100 %
Nashville, TN
     1       194,113     Bulk Warehouse     100 %
Los Angeles, CA
     1       68,446     Regional Warehouse     100 %
Phoenix, AZ
     1       78,150     Regional Warehouse     100 %
                       
      79       9,235,771              
                       
 
(a)  Property was sold in 2004.
(b) Property was placed out of service in 2004.
 
(c) Three properties were placed out of service in 2004.
 
(d) Two properties were placed out of service in 2004.
 
(e) One property was placed out of service in 2004.
 
(f) Five properties were placed out of service in 2004.
 
(g) Includes only in-service properties.
Property Development Activity
      During 2004, the Company placed in-service 16 developments totaling approximately 2.0 million square feet of GLA at a total cost of approximately $115.3 million, or approximately $57.43 per square foot. The placed in-service developments have the following characteristics:
                         
            Average
            Occupancy
Metropolitan Area   GLA   Property Type   at 12/31/04
             
Phoenix, AZ
     54,890       Light Industrial       100 %
Harrisburg, PA
     103,200       Bulk Warehouse       100 %
St. Louis, MO
     180,658       Bulk Warehouse       100 %
Harrisburg, PA
     87,500       Regional Warehouse       100 %
Atlanta, GA
     231,000       Bulk Warehouse       100 %
Chicago, IL(a)
     236,213       Bulk Warehouse       N/A  
Phoenix, AZ(a)
     73,415       Light Industrial       N/A  
Harrisburg, PA
     252,000       Bulk Warehouse       100 %
Phoenix, AZ
     44,545       Light Industrial       100 %
Harrisburg, PA(a)
     314,591       Bulk Warehouse       N/A  
Phoenix, AZ(a)
     144,020       Light Industrial       N/A  
Harrisburg, PA
     110,000       Bulk Warehouse       100 %
Denver, CO
     67,280       Light Industrial       90 %
Phoenix, AZ(a)
     37,499       Light Industrial       N/A  
Phoenix, AZ(a)
     36,746       Light Industrial       N/A  
Dallas, TX(a)
     34,800       Light Industrial       N/A  
                   
      2,008,357                  
                   

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(a)  Property was sold in 2004.
      At December 31, 2004, the Company had 19 development projects not placed in service, totaling an estimated 2.7 million square feet and with an estimated completion cost of approximately $173.2 million. The Company estimates it will place in service 16 of the 19 projects in fiscal year 2005. There can be no assurance that the Company will place these projects in service in 2005 or that the actual completion cost will not exceed the estimated completion cost stated above.
Property Sales
      During 2004, the Company sold 97 industrial properties totaling approximately 7.4 million square feet of GLA and several land parcels. Total gross sales proceeds approximated $424.9 million. The 97 industrial properties sold have the following characteristics:
                     
    Number        
    of        
Metropolitan Area   Properties   GLA   Property Type
             
Minneapolis, MN
     4       435,032     Regional Warehouse/R&D/Flex/Light Industrial
Nashville, TN
     1       423,500     Bulk Warehouse
Tampa, FL
     1       11,600     Light Industrial
Salt Lake City, UT
     1       10,500     Light Industrial
Nashville, TN
     1       28,022     Light Industrial
Dallas, TX
     2       41,000     Light Industrial
Detroit, MI
     2       85,086     Light Industrial
Philadelphia, PA
     1       46,750     Regional Warehouse
Chicago, IL
     1       68,728     Regional Warehouse
Chicago, IL
     1       407,012     Bulk Warehouse
Denver, CO
     1       52,227     Light Industrial
Denver, CO
     1       69,430     Light Industrial
Minneapolis, MN
     1       30,476     Regional Warehouse
Nashville, TN
     1       98,150     Manufacturing
Northern New Jersey
     1       259,230     Bulk Warehouse
Southern New Jersey
     1       90,804     Regional Warehouse
Tampa, FL
     1       23,778     R&D/Flex
Northern New Jersey
     1       32,500     Light Industrial
Chicago, IL
     1       41,531     Manufacturing
Baltimore, MD
     1       86,234     Light Industrial
Baltimore, MD
     3       125,421     Light Industrial
Dayton, OH
     7       342,746     Light Industrial/R&D/Flex
Southern New Jersey
     1       12,000     R&D/Flex
Southern New Jersey
     1       32,914     Light Industrial
Baltimore, MD
     1       57,600     Light Industrial
Northern New Jersey
     1       20,000     R&D/Flex
Northern New Jersey
     4       118,750     R&D/Flex
Houston, TX
     3       164,387     R&D/Flex/Light Industrial/Bulk Warehouse
Los Angeles, CA
     1       230,000     Bulk Warehouse
Baltimore, MD
     1       78,418     R&D/Flex
Central Pennsylvania
     1       178,600     Bulk Warehouse
Cincinnati, OH
     1       482,772     Bulk Warehouse

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    Number        
    of        
Metropolitan Area   Properties   GLA   Property Type
             
Denver, CO
     2       41,619     Light Industrial
Phoenix, AZ
     1       26,680     Light Industrial
Dallas, TX
     1       70,936     Regional Warehouse
Detroit, MI
     1       55,535     Regional Warehouse
Phoenix, AZ
     1       144,020     Light Industrial
Baltimore, MD
     1       40,800     Light Industrial
Louisville, KY
     1       221,000     Bulk Warehouse
Phoenix, AZ
     2       73,246     Light Industrial
Salt Lake City, UT
     6       92,518     Light Industrial
Atlanta, GA
     1       151,743     Bulk Warehouse
Tampa, FL
     1       33,861     R&D/Flex
Chicago, IL
     1       147,400     Bulk Warehouse
Phoenix, AZ
     1       24,192     Light Industrial
Harrisburg, PA
     1       314,591     Bulk Warehouse
Detroit, MI
     1       13,507     Light Industrial
Milwaukee, WI
     1       60,000     Light Industrial
Chicago, IL
     1       100,074     R&D/Flex
Dallas, TX
     5       222,403     Manufacturing
Detroit, MI
     1       14,600     Light Industrial
Philadelphia, PA
     1       25,361     Light Industrial
Detroit, MI
     1       23,320     Light Industrial
Chicago, IL
     1       137,678     Light Industrial
Baltimore, MD
     1       142,189     Bulk Warehouse
Phoenix, AZ
     3       147,660     Light Industrial
Indianapolis, IN
     1       40,000     Light Industrial
Baltimore, MD
     1       49,259     Light Industrial
Los Angeles, CA
     1       7,300     Light Industrial
S. New Jersey
     1       10,300     R&D/Flex
Dallas, TX
     2       137,200     Regional Warehouse & Light Industrial
Chicago, IL
     1       236,213     Bulk Warehouse
Dallas, TX
     1       101,839     Bulk Warehouse
Philadelphia, PA
     1       214,320     Bulk Warehouse
Philadelphia, PA
     1       97,448     Regional Warehouse
                 
      97       7,404,010      
                 
Property Acquisitions, Developments and Sales Subsequent to Year End
      From January 1, 2005 to March 23, 2005, the Company acquired eight industrial properties and several land parcels for a total estimated investment of approximately $47.6 million (approximately $1.5 million of which was made through the issuance of limited partnership interests in the Operating Partnership (“Units”)). The Company also sold 13 industrial properties and several land parcels for approximately $136.0 million of gross proceeds during this period.

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Detail Property Listing
      The following table lists all of the Company’s in-service properties as of December 31, 2004, by geographic market area.
Property Listing
                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Atlanta
                                                    
4250 River Green Parkway
     Duluth, GA               1988     R&D/Flex     2.14       28,942       65 %
3400 Corporate Parkway
     Duluth, GA               1987     Light Industrial     3.73       59,959       100 %
3450 Corporate Parkway
     Duluth, GA               1988     R&D/Flex     2.38       37,346       75 %
3500 Corporate Parkway
     Duluth, GA               1991     R&D/Flex     2.80       44,242       100 %
3425 Corporate Parkway
     Duluth, GA               1990     R&D/Flex     3.49       43,006       100 %
1650 GA Highway 155
     McDonough, GA               1991     Bulk Warehouse     12.80       228,400       100 %
14101 Industrial Park Blvd. 
     Covington, GA               1984     Light Industrial     9.25       92,160       100 %
801-804 Blacklawn Road
     Conyers, GA               1982     Bulk Warehouse     6.67       111,540       70 %
1665 Dogwood Drive
     Conyers, GA               1973     Manufacturing     9.46       198,000       100 %
1715 Dogwood Drive
     Conyers, GA               1973     Manufacturing     4.61       100,000       100 %
11235 Harland Drive
     Covington, GA               1988     Light Industrial     5.39       32,361       100 %
4050 Southmeadow Parkway
     Atlanta, GA               1991     Reg. Warehouse     6.60       87,328       29 %
4051 Southmeadow Parkway
     Atlanta, GA               1989     Bulk Warehouse     11.20       151,935       100 %
4071 Southmeadow Parkway
     Atlanta, GA               1991     Bulk Warehouse     17.80       209,918       100 %
4081 Southmeadow Parkway
     Atlanta, GA               1989     Bulk Warehouse     12.83       254,172       0 %
370 Great Southwest Pkway(i)
     Atlanta, GA               1986     Light Industrial     8.06       150,536       95 %
955 Cobb Place
     Kennesaw, GA               1991     Reg. Warehouse     8.73       97,518       100 %
2039 Monier Blvd
     Lithia Springs, GA               1999     Bulk Warehouse     10.00       110,000       100 %
1005 Sigman Road
     Conyers, GA               1986     Bulk Warehouse     9.12       127,338       100 %
2050 East Park Drive
     Conyers, GA               1998     Reg. Warehouse     5.46       90,289       100 %
201 Greenwood
     McDonough, GA               1999     Bulk Warehouse     39.00       800,000       100 %
220 Greenwood
     McDonough, GA               2000     Bulk Warehouse     26.69       504,000       100 %
1255 Oakbrook Drive
     Norcross, GA               1984     Light Industrial     2.50       36,000       33 %
1256 Oakbrook Drive
     Norcross, GA               1984     Light Industrial     3.48       40,392       75 %
1265 Oakbrook Drive
     Norcross, GA               1984     Light Industrial     3.52       51,200       0 %
1266 Oakbrook Drive
     Norcross, GA               1984     Light Industrial     3.62       30,378       74 %
1275 Oakbrook Drive
     Norcross, GA               1986     Reg. Warehouse     4.36       62,400       78 %
1280 Oakbrook Drive
     Norcross, GA               1986     Reg. Warehouse     4.34       46,400       56 %
1300 Oakbrook Drive
     Norcross, GA               1986     Light Industrial     5.41       52,000       100 %
1325 Oakbrook Drive
     Norcross, GA               1986     Light Industrial     3.53       53,120       69 %
1351 Oakbrook Drive
     Norcross, GA               1984     R&D/Flex     3.93       36,600       54 %
1346 Oakbrook Drive
     Norcross, GA               1985     R&D/Flex     5.52       74,538       28 %
1412 Oakbrook Drive
     Norcross, GA               1985     R&D/Flex     2.89       29,400       56 %
Greenwood Industrial Park
     McDonough, GA               2003     Bulk Warehouse     31.70       231,000       100 %

15

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Atlanta — (Continued)
                                                    
3060 South Park Blvd
     Ellenwood, GA               1992     Bulk Warehouse     30.56       657,451       100 %
                                         
                                          4,959,869       88 %
Subtotal or Average                
             
Baltimore
     Baltimore, MD               1988     Light Industrial     3.48       60,227       100 %
3431 Benson
     Baltimore, MD               1987     Light Industrial     3.32       60,000       90 %
1811 Portal
     Baltimore, MD               1990     Light Industrial     3.18       46,522       100 %
1831 Portal
     Baltimore, MD       (d )     1982     Bulk Warehouse     6.55       171,000       100 %
1820 Portal
     Baltimore, MD               1987     Light Industrial     4.36       65,860       93 %
6615 Tributary
     Frederick, MD               1988     Light Industrial     5.47       83,934       34 %
4845 Governors Way
     Baltimore, MD               1982     Light Industrial     5.80       60,000       100 %
8900 Yellow Brick Road
     Hanover, MD               1987     Light Industrial     18.00       71,866       100 %
7476 New Ridge
     Lanhan, MD               1980     Light Industrial     16.00       43,353       70 %
9700 Martin Luther King Hwy
     Lanhan, MD               1980     Light Industrial     5.56       30,608       100 %
9730 Martin Luther King Hwy
     Lanhan, MD               1980     Bulk Warehouse     5.89       86,400       100 %
4600 Boston Way
     Dulles, VA               1999     Bulk Warehouse     14.00       138,920       100 %
22520 Randolph Drive
     Dulles, VA               1998     Bulk Warehouse     10.31       148,215       100 %
22630 Dulles Summit Court
     Lanhan, MD               1978     Light Industrial     4.85       80,000       100 %
9800 Martin Luther King Hwy
     Ashburn, VA               1990     Light Industrial     0.00       49,200       100 %
21550 Beaumeade Circle
     Ashburn, VA               1990     Light Industrial     0.00       75,800       32 %
21580 Beaumeade Circle
     Baltimore, MD               1982/92     Bulk Warehouse     27.99       376,295       100 %
4501 Hollins Ferry Road
                                                    
                                         
                                          1,648,200       92 %
Subtotal or Average                
             
Central Pennsylvania
     Cranberry, PA               1982     Reg. Warehouse     5.99       32,779       100 %
1214-B Freedom Road
     Middletown, PA               1990     Reg. Warehouse     5.20       52,800       61 %
401 Russell Drive
     Middletown, PA               1990     Reg. Warehouse     3.60       32,000       100 %
2700 Commerce Drive
     Middletown, PA               1989     Light Industrial     6.40       48,000       100 %
2701 Commerce Drive
     Middletown, PA               1989     Light Industrial     2.00       21,600       29 %
2780 Commerce Drive
     Harrisburg, PA               1991     Bulk Warehouse     17.17       300,000       69 %
7125 Grayson Road
     Harrisburg, PA               1990     Bulk Warehouse     12.42       198,386       100 %
7253 Grayson Road
     Mechanicsburg, PA               1995     Light Industrial     5.06       49,350       80 %
5020 Louise Drive
     Harrisburg, PA               1994     Bulk Warehouse     6.02       100,000       80 %
7195 Grayson Road
     York, PA               1990     Bulk Warehouse     10.00       112,500       0 %
3380 Susquehanna Trail North
     Mechanicsburg, PA               1968/97     Light Industrial     20.00       264,120       100 %
350 Old Silver Spring Road
     Hagerstown, MD       (f )     2000     Bulk Warehouse     35.00       487,000       100 %
16522 Hunters Green Parkway
     Hagerstown, MD               1992     Bulk Warehouse     22.73       300,000       100 %
18212 Shawley Drive
     Mechanicsburg, PA               2001     Bulk Warehouse     7.93       104,000       100 %
270 Old Silver Spring Road
     Gouldsboro, PA               2003     Bulk Warehouse     25.60       252,000       100 %
Covington (CAT)
                                                    

16

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Central Pennsylvania — (Continued)                                            
37 Valleyview Business Park
     Jessup, PA               2004     Bulk Warehouse     9.60       110,000       100 %
                                         
Subtotal or Average     2,464,535       89 %
             
Chicago
                                                    
720-730 Landwehr Road
     Northbrook, IL               1978     Light Industrial     4.29       66,912       100 %
20W201 101st Street
     Lemont, IL               1988     Bulk Warehouse     8.72       160,201       100 %
3600 West Pratt Avenue
     Lincolnwood, IL               1953/88     Bulk Warehouse     6.35       204,679       80 %
6750 South Sayre Avenue
     Bedford Park, IL               1975     Light Industrial     2.51       63,383       59 %
585 Slawin Court
     Mount Prospect, IL               1992     R&D/Flex     3.71       38,150       0 %
2300 Windsor Court
     Addison, IL               1986     Bulk Warehouse     6.80       105,100       100 %
3505 Thayer Court
     Aurora, IL               1989     Light Industrial     4.60       64,220       100 %
305-311 Era Drive
     Northbrook, IL               1978     Light Industrial     1.82       27,549       100 %
4330 South Racine Avenue
     Chicago, IL               1978     Manufacturing     5.57       168,000       0 %
12241 Melrose Street
     Franklin Park, IL               1969     Light Industrial     2.47       77,301       100 %
3150-3160 MacArthur Boulevard
     Northbrook, IL               1978     Light Industrial     2.14       41,780       100 %
365 North Avenue
     Carol Stream, IL               1969     Bulk Warehouse     28.65       230,231       57 %
2942 MacArthur Boulevard
     Northbrook, IL               1979     R&D/Flex     3.12       49,730       0 %
305-307 East North Avenue
     Carol Stream, IL               1999     Reg. Warehouse     0.00       50,009       100 %
11939 South Central Avenue
     Alsip, IL               1972     Bulk Warehouse     12.60       320,171       100 %
405 East Shawmut
     LaGrange, IL               1965     Light Industrial     3.39       59,075       69 %
1010-50 Sesame Street
     Bensenville, IL               1976     Manufacturing     8.00       252,000       100 %
7401 South Pulaski
     Chicago, IL               1975/86     Bulk Warehouse     5.36       213,670       96 %
7501 South Pulaski
     Chicago, IL               1975/86     Bulk Warehouse     3.88       159,728       100 %
385 Fenton Lane
     West Chicago, IL               1990     Bulk Warehouse     6.79       180,417       100 %
335 Crossroad Parkway
     Bolingbrook, IL               1996     Bulk Warehouse     12.86       288,000       100 %
905 Paramount
     Batavia, IL               1977     Light Industrial     2.60       60,000       100 %
1005 Paramount
     Batavia, IL               1978     Light Industrial     2.50       64,574       50 %
2120-24 Roberts
     Broadview, IL               1960     Light Industrial     2.30       60,009       100 %
700 Business Center Drive
     Mount Prospect, IL               1980     Light Industrial     3.12       34,800       100 %
555 Business Center Drive
     Mount Prospect, IL               1981     Light Industrial     2.96       31,175       0 %
800 Business Center Drive
     Mount Prospect, IL               1988/99     Light Industrial     5.40       81,610       100 %
580 Slawin Court
     Mount Prospect, IL               1985     Light Industrial     2.08       30,225       100 %
1150 Feehanville
     Mount Prospect, IL               1983     Light Industrial     2.74       33,600       100 %
1200 Business Center Drive
     Mount Prospect, IL               1988/2000     Light Industrial     6.68       106,000       76 %
1331 Business Center Drive
     Mount Prospect, IL               1985     Light Industrial     3.12       30,380       100 %
19W661 101st Street
     Lemont, IL               1988     Bulk Warehouse     10.94       248,791       61 %
175 Wall Street
     Glendale Heights, IL               1990     Light Industrial     4.10       50,050       100 %

17

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Chicago — (Continued)
                                                    
800-820 Thorndale Avenue
     Bensenville, IL               1985     R&D/Flex     5.56       73,249       100 %
830-890 Supreme Drive
     Bensenville, IL               1981     Light Industrial     4.77       85,542       100 %
1661 Feehanville Drive
     Mount Prospect, IL               1986     R&D/Flex     6.89       85,955       81 %
2250 Arthur Avenue
     Elk Grove Village, IL               1973     Light Industrial     3.20       76,430       100 %
1850 Touhy & 1158-60 McCage
     Elk Grove Village, IL               1978     Manufacturing     6.88       169,000       100 %
                                         
Subtotal or Average     4,141,696       84 %
             
Cincinnati
                                                    
9900-9970 Princeton
     Cincinnati, OH               1970     Bulk Warehouse     10.64       185,580       93 %
2940 Highland Avenue
     Cincinnati, OH               1969/74     Bulk Warehouse     17.08       502,000       83 %
4700-4750 Creek Road
     Blue Ash, OH               1960     Light Industrial     15.32       265,000       94 %
12072 Best Place
     Springboro, OH               1984     Bulk Warehouse     7.80       112,500       100 %
901 Pleasant Valley Drive
     Springboro, OH               1984/94     Light Industrial     7.70       69,220       100 %
4440 Mulhauser Road
     Cincinnati, OH               1999     Bulk Warehouse     15.26       240,000       100 %
4434 Mulhauser Road
     Cincinnati, OH               1999     Bulk Warehouse     25.00       140,800       77 %
9449 Glades Road
     Hamilton, OH               1999     Bulk Warehouse     7.40       168,000       40 %
422 Wards Corner Road
     Loveland, OH               1985     Light Industrial     3.74       50,000       91 %
7625 Empire Drive
     Florence, KY               1966/75     Bulk Warehouse     21.88       345,000       100 %
                                         
Subtotal or Average     2,078,100       88 %
             
Columbus
                                                    
3800 Lockbourne Industrial Pky
     Columbus, OH               1986     Bulk Warehouse     22.12       404,734       100 %
3880 Groveport Road
     Columbus, OH               1986     Bulk Warehouse     43.41       705,600       100 %
1819 North Walcutt Road
     Columbus, OH               1973     Bulk Warehouse     11.33       243,000       83 %
4115 Leap Road(i)
     Hilliard, OH               1977     Light Industrial     18.66       217,612       100 %
3300 Lockbourne
     Columbus, OH               1964     Bulk Warehouse     17.00       301,103       100 %
                                         
Subtotal or Average     1,872,049       98 %
             
Dallas/ Fort Worth
                                                    
1275-1281 Roundtable Drive
     Dallas, TX               1966     Light Industrial     1.75       30,642       100 %
2406-2416 Walnut Ridge
     Dallas, TX               1978     Light Industrial     1.76       44,000       100 %
12750 Perimeter Drive
     Dallas, TX               1979     Bulk Warehouse     6.72       178,200       100 %
1324-1343 Roundtable Drive
     Dallas, TX               1972     Light Industrial     2.09       47,000       100 %
2401-2419 Walnut Ridge
     Dallas, TX               1978     Light Industrial     1.20       30,000       100 %
4248-4252 Simonton
     Farmers Ranch, TX               1973     Bulk Warehouse     8.18       205,693       100 %
900-906 Great Southwest Pkwy
     Arlington, TX               1972     Light Industrial     3.20       69,761       55 %
2179 Shiloh Road
     Garland, TX               1982     Reg. Warehouse     3.63       65,700       100 %
2159 Shiloh Road
     Garland, TX               1982     R&D/Flex     1.15       20,800       100 %
2701 Shiloh Road
     Garland, TX               1981     Bulk Warehouse     8.20       214,650       100 %
12784 Perimeter Drive(j)
     Dallas, TX               1981     Light Industrial     4.57       95,671       100 %
3000 West Commerce
     Dallas, TX               1980     Manufacturing     11.23       128,478       100 %

18

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Dallas/ Fort Worth — (Continued)
                                                    
3030 Hansboro
     Dallas, TX               1971     Bulk Warehouse     3.71       100,000       100 %
5222 Cockrell Hill
     Dallas, TX               1973     Manufacturing     4.79       96,506       0 %
405-407 113th
     Arlington, TX               1969     Light Industrial     2.75       60,000       100 %
816 111th Street
     Arlington, TX               1972     Light Industrial     2.89       65,000       100 %
7341 Dogwood Park
     Richland Hills, TX               1973     Light Industrial     1.09       20,045       100 %
7427 Dogwood Park
     Richland Hills, TX               1973     Light Industrial     1.60       27,500       0 %
7348-54 Tower Street
     Richland Hills, TX               1978     Light Industrial     1.09       20,107       100 %
7370 Dogwood Park
     Richland Hills, TX               1987     Light Industrial     1.18       18,511       100 %
7339-41 Tower Street
     Richland Hills, TX               1980     Light Industrial     0.95       17,600       100 %
7437-45 Tower Street
     Richland Hills, TX               1977     Light Industrial     1.16       20,018       100 %
7331-59 Airport Freeway
     Richland Hills, TX               1987     R&D/Flex     2.63       37,487       74 %
7338-60 Dogwood Park
     Richland Hills, TX               1978     R&D/Flex     1.51       26,407       100 %
7450-70 Dogwood Park
     Richland Hills, TX               1985     Light Industrial     0.88       18,004       95 %
7423-49 Airport Freeway
     Richland Hills, TX               1985     R&D/Flex     2.39       33,388       90 %
7400 Whitehall Street
     Richland Hills, TX               1994     Light Industrial     1.07       22,867       100 %
1602-1654 Terre Colony
     Dallas, TX               1981     Bulk Warehouse     5.72       130,949       61 %
3330 Duncanville Road
     Dallas, TX               1987     Reg. Warehouse     2.20       50,560       100 %
6851-6909 Snowden Road
     Fort Worth, TX               1985/86     Bulk Warehouse     13.00       281,200       73 %
2351-2355 Merritt Drive
     Garland, TX               1986     R&D/Flex     5.00       16,740       100 %
10575 Vista Park
     Dallas, TX               1988     Reg. Warehouse     2.10       37,252       100 %
701-735 North Plano Road
     Richardson, TX               1972/94     Bulk Warehouse     5.78       100,065       100 %
2259 Merritt Drive
     Garland, TX               1986     R&D/Flex     1.90       16,740       0 %
2260 Merritt Drive
     Garland, TX               1986/99     Reg. Warehouse     3.70       62,847       100 %
2220 Merritt Drive
     Garland, TX               1986/2000     Reg. Warehouse     3.90       70,390       100 %
2010 Merritt Drive
     Garland, TX               1986     Reg. Warehouse     2.80       57,392       100 %
2363 Merritt Drive
     Garland, TX               1986     R&D/Flex     0.40       12,300       100 %
2447 Merritt Drive
     Garland, TX               1986     R&D/Flex     0.40       12,300       100 %
2465-2475 Merritt Drive
     Garland, TX               1986     R&D/Flex     0.50       16,740       100 %
2485-2505 Merritt Drive
     Garland, TX               1986     Bulk Warehouse     5.70       108,550       100 %
2081 Hutton Drive-Bldg 1(j)
     Carrollton, TX               1981     R&D/Flex     3.73       42,170       97 %
2150 Hutton Drive
     Carrollton, TX               1980     Light Industrial     2.50       48,325       100 %
2110 Hutton Drive
     Carrollton, TX               1985     R&D/Flex     5.83       59,528       100 %
2025 McKenzie Drive
     Carrollton, TX               1985     Reg. Warehouse     3.81       73,556       100 %
2019 McKenzie Drive
     Carrollton, TX               1985     Reg. Warehouse     3.93       80,780       55 %
1420 Valwood-Bldg 1(i)
     Carrollton, TX               1986     R&D/Flex     3.30       40,884       95 %

19

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Dallas/ Fort Worth — (Continued)
                                                    
1620 Valwood-Bldg 1(j)
     Carrollton, TX               1986     Light Industrial     6.59       103,475       100 %
1505 Luna Road — Bldg II
     Carrollton, TX               1988     Light Industrial     1.00       16,800       29 %
1625 West Crosby Road
     Carrollton, TX               1988     Light Industrial     4.72       87,687       100 %
2029-2035 McKenzie Drive
     Carrollton, TX               1985     Reg. Warehouse     3.30       81,924       96 %
1840 Hutton Drive(i)
     Carrollton, TX               1986     R&D/Flex     5.83       93,132       100 %
1420 Valwood-Bldg II
     Carrollton, TX               1986     Light Industrial     3.32       55,625       100 %
2015 McKenzie Drive
     Carrollton, TX               1986     Light Industrial     3.38       73,187       87 %
2105 McDaniel Drive
     Carrollton, TX               1986     Bulk Warehouse     4.59       107,915       100 %
2009 McKenzie Drive
     Carrollton, TX               1987     Light Industrial     3.03       66,112       100 %
1505 Luna Road — Bldg I
     Carrollton, TX               1988     Light Industrial     2.97       50,930       68 %
900-1100 Avenue S
     Grand Prairie, TX               1985     Bulk Warehouse     5.50       122,881       100 %
15001 Trinity Blvd
     Fort Worth, TX               1984     Light Industrial     4.70       83,473       100 %
Plano Crossing(k)
     Plano, TX               1998     Light Industrial     13.66       215,672       100 %
7413A-C Dogwood Park
     Richland Hills, TX               1990     Light Industrial     1.23       22,500       100 %
7450 Tower Street
     Richland Hills, TX               1977     R&D/Flex     0.68       10,000       100 %
7436 Tower Street
     Richland Hills, TX               1979     Light Industrial     0.89       15,000       100 %
7501 Airport Freeway
     Richland Hills, TX               1983     Light Industrial     2.04       15,000       100 %
7426 Tower Street
     Richland Hills, TX               1978     Light Industrial     1.06       19,780       100 %
7427-7429 Tower Street
     Richland Hills, TX               1981     Light Industrial     1.02       20,000       100 %
2840-2842 Handley Ederville Rd
     Richland Hills, TX               1977     R&D/Flex     1.25       20,260       80 %
7451-7477 Airport Freeway
     Richland Hills, TX               1984     R&D/Flex     2.30       33,627       82 %
7415 Whitehall Street
     Richland Hills, TX               1986     Light Industrial     3.95       61,260       83 %
7450 Whitehall Street
     Richland Hills, TX               1978     Light Industrial     1.17       25,000       100 %
7430 Whitehall Street
     Richland Hills, TX               1985     Light Industrial     1.06       24,600       100 %
7420 Whitehall Street
     Richland Hills, TX               1985     Light Industrial     1.06       20,300       100 %
300 Wesley Way
     Richland Hills, TX               1995     Reg. Warehouse     2.59       41,340       100 %
1172-84 113th Street(i)
     Grand Prairie, TX               1980     Bulk Warehouse     6.47       136,259       100 %
1200-16 Avenue H(i)
     Arlington, TX               1981/1982     Reg. Warehouse     5.65       125,000       100 %
1322-66 N. Carrier Parkway(j)
     Grand Prairie, TX               1979     Bulk Warehouse     9.56       206,237       80 %
2401-2407 Centennial Dr
     Arlington, TX               1977     Bulk Warehouse     4.40       112,470       100 %
3111 West Commerce St. 
     Dallas, TX               1979     Bulk Warehouse     10.99       261,102       100 %
2104 Hutton Drive
     Carrollton, TX               1990     Light Industrial     1.70       24,800       100 %
7451 Dogwood Park
     Richland Hills, TX               1977     Light Industrial     1.85       39,674       100 %
2821 Cullen Street
     Fort Worth, TX               1961     Light Industrial     0.84       17,877       100 %
1500 Broad Street
     Mansfield, TX               1969/1992     Reg. Warehouse     4.61       85,200       100 %

20

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Dallas/ Fort Worth — (Continued)
                                                    
2301 Centennial Drive
     Arlington, TX               1970     Bulk Warehouse     4.42       103,500       100 %
                                         
Subtotal or Average     5,632,902       92 %
             
Denver
                                                    
7100 North Broadway — Bldg. 1
     Denver, CO               1978     Light Industrial     16.80       32,298       72 %
7100 North Broadway — Bldg. 2
     Denver, CO               1978     Light Industrial     16.90       32,500       85 %
7100 North Broadway — Bldg. 3
     Denver, CO               1978     Light Industrial     11.60       22,259       96 %
7100 North Broadway — Bldg. 5
     Denver, CO               1978     Light Industrial     15.00       28,789       92 %
7100 North Broadway — Bldg. 6
     Denver, CO               1978     Light Industrial     22.50       38,255       76 %
20100 East 32nd Avenue Parkway
     Aurora, CO               1997     R&D/Flex     4.10       51,522       100 %
5454 Washington
     Denver, CO               1985     Light Industrial     4.00       34,740       91 %
700 West 48th Street
     Denver, CO               1984     Light Industrial     5.40       53,431       62 %
702 West 48th Street
     Denver, CO               1984     Light Industrial     5.40       23,820       87 %
6425 North Washington
     Denver, CO               1983     R&D/Flex     4.05       81,120       87 %
3370 North Peoria Street
     Aurora, CO               1978     R&D/Flex     1.64       25,538       100 %
3390 North Peoria Street
     Aurora, CO               1978     R&D/Flex     1.46       22,699       72 %
3508-3538 North Peoria Street
     Aurora, CO               1978     R&D/Flex     2.61       40,653       100 %
3568 North Peoria Street
     Aurora, CO               1978     R&D/Flex     2.24       34,937       64 %
4785 Elati
     Denver, CO               1972     Light Industrial     3.34       34,777       85 %
4770 Fox Street
     Denver, CO               1972     Light Industrial     3.38       26,565       77 %
1550 West Evans
     Denver, CO               1975     Light Industrial     3.92       78,787       91 %
3751-71 Revere Street
     Denver, CO               1980     Reg. Warehouse     2.41       55,027       51 %
3871 Revere Street
     Denver, CO               1980     Reg. Warehouse     3.19       75,265       61 %
4570 Ivy Street
     Denver, CO               1985     Light Industrial     1.77       31,355       100 %
5855 Stapleton Drive North
     Denver, CO               1985     Light Industrial     2.33       41,268       90 %
5885 Stapleton Drive North
     Denver, CO               1985     Light Industrial     3.05       53,893       92 %
5977-5995 North Broadway
     Denver, CO               1978     Light Industrial     4.96       50,280       100 %
2952-5978 North Broadway
     Denver, CO               1978     Light Industrial     7.91       88,977       100 %
4721 Ironton Street
     Denver, CO               1969     R&D/Flex     2.84       51,260       100 %
7100 North Broadway — 7
     Denver, CO               1985     R&D/Flex     2.30       24,822       89 %
7100 North Broadway — 8
     Denver, CO               1985     R&D/Flex     2.30       9,107       100 %
6804 East 48th Avenue
     Denver, CO               1973     R&D/Flex     2.23       46,464       75 %
445 Bryant Street
     Denver, CO               1960     Light Industrial     6.31       292,471       100 %
East 47th Drive — A
     Denver, CO               1997     R&D/Flex     3.00       51,210       100 %
9500 W. 49th Street — A
     Wheatridge, CO               1997     Light Industrial     1.74       19,136       69 %
9500 W. 49th Street — B
     Wheatridge, CO               1997     Light Industrial     1.74       16,441       100 %
9500 W. 49th Street — C
     Wheatridge, CO               1997     R&D/Flex     1.74       29,174       59 %
9500 W. 49th Street — D
     Wheatridge, CO               1997     Light Industrial     1.74       41,631       100 %
8100 South Park Way — A
     Littleton, CO               1997     R&D/Flex     3.33       52,581       79 %
8100 South Park Way — B
     Littleton, CO               1984     R&D/Flex     0.78       12,204       100 %
8100 South Park Way — C
     Littleton, CO               1984     Light Industrial     4.28       67,520       100 %
451-591 East 124th Avenue
     Littleton, CO               1979     Light Industrial     4.96       59,711       67 %
608 Garrison Street
     Lakewood, CO               1984     R&D/Flex     2.17       25,075       100 %
610 Garrison Street
     Lakewood, CO               1984     R&D/Flex     2.17       24,965       100 %
15000 West 6th Avenue
     Golden, CO               1985     R&D/Flex     5.25       69,279       62 %
14998 West 6th Avenue Building E
     Golden, CO               1995     R&D/Flex     2.29       42,832       100 %
14998 West 6th Avenue Building F
     Englewood, CO               1995     R&D/Flex     2.29       20,424       100 %
12503 East Euclid Drive
     Denver, CO               1986     R&D/Flex     10.90       97,871       37 %
6547 South Racine Circle
     Englewood, CO               1996     Light Industrial     3.92       59,918       89 %
7800 East Iliff Avenue
     Denver, CO               1983     R&D/Flex     3.06       22,296       100 %
2369 South Trenton Way
     Denver, CO               1983     R&D/Flex     4.80       33,108       86 %
2422 South Trenton Way
     Denver, CO               1983     R&D/Flex     3.94       27,413       49 %

21

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Denver — (Continued)
                                                    
2452 South Trenton Way
     Denver, CO               1983     R&D/Flex     6.78       47,931       73 %
1600 South Abilene
     Aurora, CO               1986     R&D/Flex     3.53       47,930       100 %
1620 South Abilene
     Aurora, CO               1986     Light Industrial     2.04       27,666       100 %
1640 South Abilene
     Aurora, CO               1986     Light Industrial     2.80       37,948       100 %
13900 East Florida Avenue
     Aurora, CO               1986     R&D/Flex     1.44       19,493       86 %
14401-14492 East 33rd Place
     Aurora, CO               1979     Bulk Warehouse     4.75       100,100       100 %
11701 East 53rd Avenue
     Denver, CO               1985     Reg. Warehouse     4.19       81,981       100 %
5401 Oswego Street
     Denver, CO               1985     Reg. Warehouse     2.80       54,738       100 %
2630 West 2nd Avenue
     Denver, CO               1970     Light Industrial     0.50       8,260       0 %
2650 West 2nd Avenue
     Denver, CO               1970     Light Industrial     2.80       36,081       87 %
14818 West 6th Avenue Bldg. A
     Golden, CO               1985     R&D/Flex     2.54       39,776       70 %
14828 West 6th Avenue Bldg. B
     Golden, CO               1985     R&D/Flex     2.54       41,805       87 %
12055 E. 49th Ave/4955 Peoria
     Denver, CO               1984     R&D/Flex     3.09       49,575       94 %
4940-4950 Paris
     Denver, CO               1984     R&D/Flex     1.58       25,290       100 %
4970 Paris
     Denver, CO               1984     R&D/Flex     0.98       15,767       100 %
5010 Paris
     Denver, CO               1984     R&D/Flex     0.92       14,822       100 %
7367 South Revere Parkway
     Englewood, CO               1997     Bulk Warehouse     8.50       102,839       86 %
8200 E. Park Meadows Drive(i)
     Lone Tree, CO               1984     R&D Flex     6.60       90,219       84 %
3250 Quentin(i)
     Aurora, CO               1984/2000     Light Industrial     8.90       144,464       100 %
11585 E. 53rd Ave.(i)
     Denver, CO               1984     Bulk Warehouse     15.10       335,967       100 %
10500 East 54th Ave.(j)
     Denver, CO               1986     Reg. Warehouse     9.12       178,148       91 %
8835 W. 116th Street
     Broomfield, CO               2002     Light Industrial     6.47       67,280       90 %
3101-3151 S. Platte River Drive
     Englewood, CO               1974     Bulk Warehouse     12.12       229,830       99 %
3155-3199 S. Platte River Drive
     Englewood, CO               1974     Bulk Warehouse     12.12       229,830       100 %
3201-3273 S. Platte River Drive
     Englewood, CO               1974     Bulk Warehouse     10.74       203,751       100 %
18150 E. 32nd Street
     Aurora, CO               2000     Reg. Warehouse     5.71       81,564       100 %
                                         
Subtotal or Average     4,568,723       91 %
             
Des Moines
                                                    
2250 Delaware Ave
     Des Moines, IA               1975     Reg. Warehouse     4.20       88,000       46 %
                                         
Subtotal or Average     88,000       46 %
             
Detroit
                                                    
1731 Thorncroft
     Troy, MI               1969     Light Industrial     2.26       38,000       100 %
1653 E. Maple
     Troy, MI               1990     R&D/Flex     1.38       23,392       100 %
47461 Clipper
     Plymouth, MI               1992     Light Industrial     1.10       11,600       0 %
238 Executive Drive
     Troy, MI               1973     Light Industrial     1.32       13,740       100 %
256 Executive Drive
     Troy, MI               1974     Light Industrial     1.12       11,273       100 %
301 Executive Drive
     Troy, MI               1974     Light Industrial     1.27       20,411       100 %
449 Executive Drive
     Troy, MI               1975     Reg. Warehouse     2.12       33,001       100 %
501 Executive Drive
     Troy, MI               1984     Light Industrial     1.57       18,061       100 %
451 Robbins Drive
     Troy, MI               1975     Light Industrial     1.88       28,401       100 %
1095 Crooks Road
     Troy, MI               1986     R&D/Flex     2.83       35,042       100 %
1416 Meijer Drive
     Troy, MI               1980     Light Industrial     1.20       17,944       100 %
1624 Meijer Drive
     Troy, MI               1984     Light Industrial     3.42       44,040       100 %

22

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Detroit — (Continued)
                                                    
1972 Meijer Drive
     Troy, MI               1985     Reg. Warehouse     2.36       37,075       100 %
1621 Northwood Drive
     Troy, MI               1977     Bulk Warehouse     1.54       24,900       100 %
1707 Northwood Drive
     Troy, MI               1983     Light Industrial     1.69       28,750       0 %
1788 Northwood Drive
     Troy, MI               1977     Light Industrial     1.55       12,480       100 %
1821 Northwood Drive
     Troy, MI               1977     Reg. Warehouse     2.07       35,050       100 %
1826 Northwood Drive
     Troy, MI               1977     Light Industrial     1.22       12,480       100 %
1864 Northwood Drive
     Troy, MI               1977     Light Industrial     1.55       12,480       100 %
2277 Elliott Avenue
     Troy, MI               1975     Light Industrial     0.96       12,612       100 %
2451 Elliott Avenue
     Troy, MI               1974     Light Industrial     1.68       24,331       100 %
2730 Research Drive
     Rochester Hills, MI               1988     Reg. Warehouse     3.52       57,850       100 %
2791 Research Drive
     Rochester Hills, MI               1991     Reg. Warehouse     4.48       64,199       100 %
2871 Research Drive
     Rochester Hills, MI               1991     Reg. Warehouse     3.55       49,543       100 %
2911 Research Drive
     Rochester Hills, MI               1992     Reg. Warehouse     5.72       80,078       100 %
3011 Research Drive
     Rochester Hills, MI               1988     Reg. Warehouse     2.55       32,637       100 %
2870 Technology Drive
     Rochester Hills, MI               1988     Light Industrial     2.41       24,445       100 %
2900 Technology Drive
     Rochester Hills, MI               1992     Reg. Warehouse     2.15       31,047       0 %
2920 Technology Drive
     Rochester Hills, MI               1992     Light Industrial     1.48       19,011       100 %
2930 Technology Drive
     Rochester Hills, MI               1991     Light Industrial     1.41       17,994       100 %
2950 Technology Drive
     Rochester Hills, MI               1991     Light Industrial     1.48       19,996       100 %
23014 Commerce Drive
     Farmington Hills, MI               1983     R&D/Flex     0.65       7,200       100 %
23028 Commerce Drive
     Farmington Hills, MI               1983     Light Industrial     1.26       20,265       100 %
23035 Commerce Drive
     Farmington Hills, MI               1983     Light Industrial     1.23       15,200       100 %
23042 Commerce Drive
     Farmington Hills, MI               1983     R&D/Flex     0.75       8,790       100 %
23065 Commerce Drive
     Farmington Hills, MI               1983     Light Industrial     0.91       12,705       100 %
23070 Commerce Drive
     Farmington Hills, MI               1983     R&D/Flex     1.43       16,765       100 %
23079 Commerce Drive
     Farmington Hills, MI               1983     Light Industrial     0.85       10,830       100 %
23093 Commerce Drive
     Farmington Hills, MI               1983     Reg. Warehouse     3.87       49,040       100 %
23135 Commerce Drive
     Farmington Hills, MI               1986     Light Industrial     2.02       23,969       100 %
23163 Commerce Drive
     Farmington Hills, MI               1986     Light Industrial     1.51       19,020       100 %
23177 Commerce Drive
     Farmington Hills, MI               1986     Light Industrial     2.29       32,127       100 %
23206 Commerce Drive
     Farmington Hills, MI               1985     Light Industrial     1.30       19,822       100 %
23370 Commerce Drive
     Farmington Hills, MI               1980     Light Industrial     0.67       8,741       100 %

23

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Detroit — (Continued)
                                                    
1451 East Lincoln Avenue
     Madison Heights, MI               1967     Light Industrial     3.92       75,000       100 %
4400 Purks Drive
     Auburn Hills, MI               1987     Light Industrial     13.04       157,100       100 %
4177A Varsity Drive
     Ann Arbor, MI               1993     Light Industrial     2.48       11,050       100 %
6515 Cobb Drive
     Sterling Heights, MI               1984     Light Industrial     2.91       47,597       100 %
32450 N. Avis Drive
     Madison Heights, MI               1974     Light Industrial     3.23       55,820       100 %
38300 Plymouth
     Livonia, MI               1997     Bulk Warehouse     6.95       127,800       100 %
12707 Eckles Road
     Plymouth, MI               1990     Light Industrial     2.62       42,300       100 %
9300-9328 Harrison Rd
     Romulus, MI               1978     Light Industrial     2.53       29,286       100 %
9330-9358 Harrison Rd
     Romulus, MI               1978     Light Industrial     2.53       29,280       88 %
28420-28448 Highland Rd
     Romulus, MI               1979     Light Industrial     2.53       29,280       100 %
28450-28478 Highland Rd
     Romulus, MI               1979     Light Industrial     2.53       29,340       100 %
28421-28449 Highland Rd
     Romulus, MI               1980     Light Industrial     2.53       29,285       100 %
28451-28479 Highland Rd
     Romulus, MI               1980     Light Industrial     2.53       29,280       100 %
28825-28909 Highland Rd
     Romulus, MI               1981     Light Industrial     2.53       29,284       100 %
28933-29017 Highland Rd
     Romulus, MI               1982     Light Industrial     2.53       29,280       88 %
28824-28908 Highland Rd
     Romulus, MI               1982     Light Industrial     2.53       29,280       100 %
28932-29016 Highland Rd
     Romulus, MI               1982     Light Industrial     2.53       29,280       100 %
9710-9734 Harrison Road
     Romulus, MI               1987     Light Industrial     2.22       25,925       100 %
9740-9772 Harrison Road
     Romulus, MI               1987     Light Industrial     2.53       29,548       100 %
9840-9868 Harrison Road
     Romulus, MI               1987     Light Industrial     2.53       29,280       100 %
9800-9824 Harrison Road
     Romulus, MI               1987     Light Industrial     2.22       25,620       100 %
29265-29285 Airport Drive
     Romulus, MI               1983     Light Industrial     2.05       23,707       100 %
29185-29225 Airport Drive
     Romulus, MI               1983     Light Industrial     3.17       36,658       100 %
29149-29165 Airport Drive
     Romulus, MI               1984     Light Industrial     2.89       33,440       100 %
29101-29115 Airport Drive
     Romulus, MI               1985     R&D/Flex     2.53       29,287       100 %
29031-29045 Airport Drive
     Romulus, MI               1985     Light Industrial     2.53       29,280       100 %
29050-29062 Airport Drive
     Romulus, MI               1986     Light Industrial     2.22       25,837       100 %
29120-29134 Airport Drive
     Romulus, MI               1986     Light Industrial     2.53       29,282       100 %
29200-29214 Airport Drive
     Romulus, MI               1985     Light Industrial     2.53       29,282       100 %
9301-9339 Middlebelt Road
     Romulus, MI               1983     R&D/Flex     1.29       15,173       76 %
26980 Trolley Industrial Drive
     Taylor, MI               1997     Bulk Warehouse     5.43       102,400       100 %
32975 Capitol Avenue
     Livonia, MI               1978     R&D/Flex     0.99       18,465       100 %
2725 S. Industrial Highway
     Ann Arbor, MI               1997     Light Industrial     2.63       37,875       23 %
32920 Capitol Avenue
     Livonia, MI               1973     Reg. Warehouse     0.47       8,000       100 %
11923 Brookfield Avenue
     Livonia, MI               1973     Light Industrial     0.76       14,600       100 %
11965 Brookfield Avenue
     Livonia, MI               1973     Light Industrial     0.88       14,600       100 %
13405 Stark Road
     Livonia, MI               1980     Light Industrial     0.65       9,750       100 %
1170 Chicago Road
     Troy, MI               1983     Light Industrial     1.73       21,500       100 %
1200 Chicago Road
     Troy, MI               1984     Light Industrial     1.73       26,210       100 %
450 Robbins Drive
     Troy, MI               1976     Light Industrial     1.38       19,050       100 %
1230 Chicago Road
     Troy, MI               1996     Reg. Warehouse     2.10       30,120       100 %
12886 Westmore Avenue
     Livonia, MI               1981     Light Industrial     1.01       18,000       100 %
12898 Westmore Avenue
     Livonia, MI               1981     Light Industrial     1.01       18,000       0 %
33025 Industrial Road
     Livonia, MI               1980     Light Industrial     1.02       6,250       0 %
47711 Clipper Street
     Plymouth Twsp, MI               1996     Reg. Warehouse     2.27       36,926       100 %
32975 Industrial Road
     Livonia, MI               1984     Light Industrial     1.19       21,000       100 %
32985 Industrial Road
     Livonia, MI               1985     Light Industrial     0.85       12,040       100 %

24

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Detroit — (Continued)
                                                    
32995 Industrial Road
     Livonia, MI               1983     Light Industrial     1.11       14,280       100 %
12874 Westmore Avenue
     Livonia, MI               1984     Light Industrial     1.01       16,000       0 %
33067 Industrial Road
     Livonia, MI               1984     Light Industrial     1.11       18,640       100 %
1775 Bellingham
     Troy, MI               1987     R&D/Flex     1.88       28,900       100 %
1785 East Maple
     Troy, MI               1985     Light Industrial     0.80       10,200       100 %
1807 East Maple
     Troy, MI               1984     R&D/Flex     2.15       28,100       100 %
980 Chicago Road
     Troy, MI               1985     Light Industrial     1.09       14,280       100 %
1840 Enterprise Drive
     Rochester Hills, MI               1990     R&D/Flex     2.42       33,240       42 %
1885 Enterprise Drive
     Rochester Hills, MI               1990     Light Industrial     1.47       19,604       100 %
1935-55 Enterprise Drive
     Rochester Hills, MI               1990     R&D/Flex     4.54       53,400       100 %
5500 Enterprise Court
     Warren, MI               1989     R&D/Flex     3.93       53,900       100 %
750 Chicago Road
     Troy, MI               1986     Light Industrial     1.54       26,709       0 %
800 Chicago Road
     Troy, MI               1985     Light Industrial     1.48       24,340       100 %
850 Chicago Road
     Troy, MI               1984     Light Industrial     0.97       16,049       0 %
2805 S. Industrial Highway
     Ann Arbor, MI               1990     R&D/Flex     1.70       24,458       90 %
6833 Center Drive
     Sterling Heights, MI               1998     Reg. Warehouse     4.42       66,132       100 %
32201 North Avis Drive
     Madison Heights, MI               1974     R&D/Flex     4.19       50,000       100 %
1100 East Mandoline Road
     Madison Heights, MI               1967     Bulk Warehouse     8.19       117,903       100 %
30081 Stephenson Highway
     Madison Heights, MI               1967     Light Industrial     2.50       50,750       100 %
1120 John A. Papalas Drive(j)
     Lincoln Park, MI               1985     Light Industrial     10.30       120,410       75 %
4872 S. Lapeer Road
     Lake Orion Twsp, MI               1999     Bulk Warehouse     9.58       125,605       72 %
22701 Trolley Industrial
     Taylor, MI               1999     Bulk Warehouse     9.12       160,035       100 %
1400 Allen Drive
     Troy, MI               1979     Reg. Warehouse     1.98       27,280       100 %
1408 Allen Drive
     Troy, MI               1979     Light Industrial     1.44       19,704       100 %
1305 Stephenson Hwy
     Troy, MI               1979     Reg. Warehouse     3.42       47,000       100 %
32505 Industrial Drive
     Madison Heights, MI               1979     Light Industrial     3.07       47,013       100 %
1799-1813 Northfield Drive(i)
     Rochester Hills, MI               1980     Light Industrial     4.22       67,360       100 %
                                         
Subtotal or Average     4,004,276       93 %
             
Grand Rapids
                                                    
5015 52nd Street SE
     Grand Rapids, MI               1987     Light Industrial     4.50       61,250       100 %
                                         
Subtotal or Average     61,250       100 %
             
Houston
                                                    
2102-2314 Edwards Street
     Houston, TX               1961     Bulk Warehouse     5.02       115,248       84 %
4545 Eastpark Drive
     Houston, TX               1972     Reg. Warehouse     3.80       81,295       100 %
3351 Rauch Street
     Houston, TX               1970     Reg. Warehouse     4.04       82,500       100 %
3851 Yale Street
     Houston, TX               1971     Bulk Warehouse     5.77       132,554       100 %
3337-3347 Rauch Street
     Houston, TX               1970     Reg. Warehouse     2.29       53,425       100 %

25

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Houston — (Continued)
                                                    
8505 North Loop East
     Houston, TX               1981     Bulk Warehouse     5.00       107,769       100 %
4749-4799 Eastpark Dr. 
     Houston, TX               1979     Bulk Warehouse     7.75       182,563       100 %
4851 Homestead Road
     Houston, TX               1973     Bulk Warehouse     3.63       142,250       85 %
3365-3385 Rauch Street
     Houston, TX               1970     Reg. Warehouse     3.31       82,140       100 %
5050 Campbell Road
     Houston, TX               1970     Bulk Warehouse     6.10       121,875       100 %
4300 Pine Timbers
     Houston, TX               1980     Bulk Warehouse     4.76       113,400       73 %
7901 Blankenship
     Houston, TX               1972     Light Industrial     2.17       48,000       0 %
2500-2530 Fairway Park
     Houston, TX               1974     Bulk Warehouse     8.72       213,638       85 %
6550 Longpointe
     Houston, TX               1980     Bulk Warehouse     4.13       97,700       100 %
1815 Turning Basin Drive
     Houston, TX               1980     Bulk Warehouse     6.34       139,630       100 %
1819 Turning Basin Drive
     Houston, TX               1980     Light Industrial     2.85       65,494       0 %
1805 Turning Basin Drive
     Houston, TX               1980     Bulk Warehouse     7.60       155,250       100 %
7000 Empire Drive
     Houston, TX               1980     R&D/Flex     6.25       95,073       78 %
9777 West Gulfbank Drive
     Houston, TX               1980     Light Industrial     15.45       252,242       89 %
9835 A Genard Road
     Houston, TX               1980     Bulk Warehouse     39.20       417,350       99 %
9835 B Genard Road
     Houston, TX               1980     Reg. Warehouse     6.40       66,600       100 %
10161 Harwin Drive
     Houston, TX               1979/1981     R & D/Flex     5.27       73,052       90 %
10165 Harwin Drive
     Houston, TX               1979/1981     R & D/Flex     2.31       33,238       73 %
10175 Harwin Drive
     Houston, TX               1797/1981     Light Industrial     2.85       39,475       83 %
10325-10415 Landsbury Dr(j)
     Houston, TX               1982     Light Industrial     265.00       131,000       90 %
8705 City Park Loop
     Houston, TX               1982     Bulk Warehouse     7.06       191,537       100 %
                                         
Subtotal or Average     3,234,298       91 %
             
Indianapolis
                                                    
2900 North Shadeland
     Indianapolis, IN               1957/1992     Bulk Warehouse     60.00       933,439       66 %
2400 North Shadeland
     Indianapolis, IN               1970     Reg. Warehouse     2.45       40,000       50 %
2402 North Shadeland
     Indianapolis, IN               1970     Bulk Warehouse     7.55       121,539       82 %
7901 West 21st Street
     Indianapolis, IN               1985     Bulk Warehouse     12.00       353,000       100 %
1445 Brookville Way
     Indianapolis, IN               1989     Bulk Warehouse     8.79       115,200       100 %
1440 Brookville Way
     Indianapolis, IN               1990     Bulk Warehouse     9.64       166,400       0 %
1240 Brookville Way
     Indianapolis, IN               1990     Light Industrial     3.50       63,000       100 %
1220 Brookville Way
     Indianapolis, IN               1990     R&D/Flex     2.10       10,000       0 %
1345 Brookville Way
     Indianapolis, IN       (m )     1992     Bulk Warehouse     5.50       130,736       90 %
1350 Brookville Way
     Indianapolis, IN               1994     Reg. Warehouse     2.87       38,460       100 %
1341 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     Light Industrial     2.03       32,400       100 %
1322-1438 Sadlier Circle East Dr
     Indianapolis, IN       (b )     1971/1992     Light Industrial     3.79       36,000       93 %
1327-1441 Sadlier Circle East Dr
     Indianapolis, IN       (b )     1992     Light Industrial     5.50       54,000       93 %

26

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Indianapolis — (Continued)
                                                    
1304 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     Reg. Warehouse     2.42       17,600       100 %
1402 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1970/1992     Light Industrial     4.13       40,800       97 %
1504 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     Manufacturing     4.14       54,000       100 %
1311 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     R&D/Flex     1.78       13,200       100 %
1365 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     Light Industrial     2.16       30,000       100 %
1352-1354 Sadlier Circle E. Drive
     Indianapolis, IN       (b )     1970/1992     Light Industrial     3.50       44,000       100 %
1335 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     R&D/Flex     1.20       20,000       100 %
1327 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     Reg. Warehouse     1.20       12,800       100 %
1425 Sadlier Circle East Drive
     Indianapolis, IN       (b )     1971/1992     R&D/Flex     2.49       5,000       100 %
1230 Brookville Way
     Indianapolis, IN               1995     Reg. Warehouse     1.96       15,000       100 %
6951 East 30th Street
     Indianapolis, IN               1995     Light Industrial     3.81       44,000       100 %
6701 East 30th Street
     Indianapolis, IN               1995     Light Industrial     3.00       7,820       100 %
6737 East 30th Street
     Indianapolis, IN               1995     Reg. Warehouse     11.01       87,500       100 %
1225 Brookville Way
     Indianapolis, IN               1997     Light Industrial     1.00       10,000       100 %
6555 East 30th Street
     Indianapolis, IN               1969/1981     Bulk Warehouse     22.00       331,826       64 %
2432-2436 Shadeland
     Indianapolis, IN               1968     Light Industrial     4.57       70,560       88 %
8402-8440 East 33rd Street
     Indianapolis, IN               1977     Light Industrial     4.70       55,200       61 %
8520-8630 East 33rd Street
     Indianapolis, IN               1976     Light Industrial     5.30       81,000       61 %
8710-8768 East 33rd Street
     Indianapolis, IN               1979     Light Industrial     4.70       43,200       87 %
3316-3346 North Pagosa Court
     Indianapolis, IN               1977     Light Industrial     5.10       81,000       72 %
3331 Raton Court
     Indianapolis, IN               1979     Light Industrial     2.80       35,000       100 %
6751 East 30th Street
     Indianapolis, IN               1997     Bulk Warehouse     6.34       100,000       100 %
9200 East 146th Street
     Noblesville, IN               1961/1981     Bulk Warehouse     21.65       150,488       77 %
6575 East 30th Street
     Indianapolis, IN               1998     Bulk Warehouse     4.00       60,000       100 %
6585 East 30th Street
     Indianapolis, IN               1998     Bulk Warehouse     6.00       100,000       100 %
9910 North by Northeast Blvd. 
     Fishers, IN               1994     Bulk Warehouse     8.40       192,000       92 %
8525 E. 33rd Street
     Indianapolis, IN               1978     Bulk Warehouse     21.87       320,000       100 %
8219 Northwest Blvd. 
     Indianapolis, IN               1990     Bulk Warehouse     8.67       204,000       100 %
9332-9350 Castlegate Drive
     Indianapolis, IN               1983     Light Industrial     4.00       48,000       100 %
9210 E. 146th Street
     Noblesville, IN               1978     Reg. Warehouse     11.91       23,950       100 %
                                         
Subtotal or Average     4,392,118       81 %
             
Los Angeles
                                                    
6407-6419 Alondra Blvd. 
     Paramount, CA               1985     Light Industrial     0.90       16,392       100 %
6423-6431 Alondra Blvd. 
     Paramount., CA               1985     Light Industrial     0.76       13,765       100 %
15101-15141 Figueroa St.(i)
     Los Angeles, CA               1982     Reg. Warehouse     4.70       129,600       100 %
21136 South Wilmington Ave
     Carson, CA               1989     Bulk Warehouse     6.02       115,702       100 %
19914 Via Baron Way
     Rancho Dominguez CA       (a )     1973     Bulk Warehouse     11.69       234,800       100 %
14912 Shoemaker Ave
     Santa Fe Springs, CA               1967     R&D/Flex     0.25       5,121       100 %
14920 Shoemaker Ave
     Santa Fe Springs, CA               1967     R&D/Flex     0.23       4,600       100 %

27

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Los Angeles — (Continued)
                                                    
14928 Shoemaker Ave
     Santa Fe Springs, CA               1967     R&D/Flex     0.23       4,600       100 %
14938 Shoemaker Ave
     Santa Fe Springs, CA               1967     R&D/Flex     0.23       4,600       100 %
14944 Shoemaker Ave
     Santa Fe Springs, CA               1978     Light Industrial     1.99       40,015       100 %
14946 Shoemaker Ave
     Santa Fe Springs, CA               1978     Light Industrial     1.68       33,769       94 %
14948 Shoemaker Ave
     Santa Fe Springs, CA               1978     Light Industrial     0.61       12,300       100 %
14141 Alondra Blvd. 
     Santa Fe Springs, CA               1969     Bulk Warehouse     23.90       395,204       100 %
12616 Yukon Ave
     Hawthorne, CA               1987     Reg. Warehouse     1.89       43,676       100 %
3355 El Segundo Blvd.(j)
     Hawthorne, CA               1959     Light Industrial     2.79       56,353       100 %
12621 Cerise
     Hawthorne, CA               1959     Light Industrial     1.11       27,000       100 %
333 Turnbull Canyon Road
     City of Industry, CA               1968/1985     Bulk Warehouse     6.61       116,000       100 %
350-390 Manville St. 
     Compton, CA               1979     Bulk Warehouse     4.75       100,000       100 %
42374 Avenida Alvarado(j)
     Temecula, CA               1987     Reg. Warehouse     5.00       103,536       100 %
3131 E. Harcourt Street(i)
     Rancho Dominguez, CA               1970     Light industrial     3.04       73,000       100 %
200 West Artesia Blvd. 
     Compton, CA               1985     Reg. Warehouse     4.21       68,446       100 %
                                         
Subtotal or Average     1,598,479       100 %
             
Louisville
                                                    
9001 Cane Run Road
     Louisville, KY               1998     Bulk Warehouse     39.60       212,500       100 %
9101 Crane Run Road
     Louisville, KY               2000     Bulk Warehouse     14.00       231,000       100 %
                                         
Subtotal or Average     443,500       100 %
             
Miami
                                                    
9400 NW 104th Street
     Medley, FL               1995     Bulk Warehouse     11.11       268,539       100 %
                                         
Subtotal or Average     268,539       100 %
             
Milwaukee
                                                    
N25 W23050 Paul Road
     Pewaukee, WI               1989     R&D/Flex     4.50       37,765       100 %
N25 W23255 Paul Road
     Pewaukee, WI               1987     R&D/Flex     4.80       55,940       100 %
N27 W23293 Roundy Drive
     Pewaukee, WI               1989     Reg. Warehouse     3.64       39,468       100 %
6523 N. Sydney Place
     Glendale, WI               1978     Light Industrial     4.00       43,440       100 %
8800 W. Bradley
     Milwaukee, WI               1982     Light Industrial     8.00       77,621       100 %
4560 North 124th Street
     Wauwatosa, WI               1976     Light Industrial     1.31       25,000       100 %
4410-80 North 132nd Street
     Butler, WI               1999     Bulk Warehouse     4.90       100,000       99 %
5355 South Westridge Drive
     New Berlin, WI               1997     Bulk Warehouse     21.38       217,680       100 %
N120W18485 Freistadt Road
     Germantown, WI               1996     Bulk Warehouse     13.14       103,024       100 %
140 N. 9000 Lilly Road
     Menmonee, WI               1990     Bulk Warehouse     10.04       104,190       100 %
                                         
Subtotal or Average     804,128       100 %
             

28

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Minneapolis/ St. Paul
                                                    
6507-6545 Cecilia Circle
     Bloomington, MN               1980     Manufacturing     9.65       74,118       91 %
6201 West 111th Street
     Bloomington, MN       (c )     1987     Bulk Warehouse     37.00       424,866       100 %
6403-6545 Cecilia Drive
     Bloomington, MN               1980     Light Industrial     9.65       87,560       86 %
6925-6943 Washington Avenue
     Edina, MN               1972     Manufacturing     2.75       31,867       73 %
6955-6973 Washington Avenue
     Edina, MN               1972     Manufacturing     2.25       31,180       97 %
7251-7267 Washington Avenue
     Edina, MN               1972     Light Industrial     1.82       26,265       70 %
7301-7325 Washington Avenue
     Edina, MN               1972     Light Industrial     1.92       27,297       63 %
7101 Winnetka Avenue North
     Brooklyn Park, MN               1990     Bulk Warehouse     14.18       268,168       88 %
7600 Golden Triangle Drive
     Eden Prairie, MN               1989     R&D/Flex     6.79       74,078       100 %
9901 West 74th Street
     Eden Prairie, MN               1983/88     Reg. Warehouse     8.86       153,813       100 %
12220-12222 Nicollet Avenue
     Burnsville, MN               1989/90     Light Industrial     1.80       17,116       100 %
12250-12268 Nicollet Avenue
     Burnsville, MN               1989/90     Light Industrial     4.30       42,365       100 %
12224-12226 Nicollet Avenue
     Burnsville, MN               1989/90     R&D/Flex     2.40       23,300       43 %
1030 Lone Oak Road
     Eagan, MN               1988     Light Industrial     6.30       83,164       100 %
1060 Lone Oak Road
     Eagan, MN               1988     Light Industrial     6.50       82,728       66 %
5400 Nathan Lane
     Plymouth, MN               1990     Light Industrial     5.70       72,089       100 %
10120 W. 76th Street
     Eden Prairie, MN               1987     Light Industrial     4.52       59,030       100 %
7615 Golden Triangle
     Eden Prairie, MN               1987     Light Industrial     4.61       52,816       100 %
7625 Golden Triangle Drive
     Eden Prairie, MN               1987     Light Industrial     4.61       73,168       89 %
2605 Fernbrook Lane North
     Plymouth, MN               1987     R&D/Flex     6.37       80,766       100 %
12155 Nicollet Avenue
     Burnsville, MN               1995     Reg. Warehouse     5.80       48,000       100 %
6655 Wedgewood Road
     Maple Grove, MN               1989     Manufacturing     17.88       123,815       96 %
900 Apollo Road
     Egan, MN               1970     Manufacturing     39.00       312,265       2 %
7316 Aspen Lane North
     Brooklyn Park, MN               1978     Manufacturing     6.63       96,000       100 %
73rd Avenue North
     Brooklyn Park, MN               1995     R&D/Flex     4.46       59,782       87 %
2720 Arthur Street
     Roseville, MN               1995     R&D/Flex     6.06       74,337       94 %
4100 Peavey Road
     Chaska, MN               1988     Manufacturing     8.27       78,029       77 %
11300 Hampshire Ave. South
     Bloomington, MN               1983     Bulk Warehouse     9.94       145,210       100 %
375 Rivertown Drive
     Woodbury, MN               1996     Bulk Warehouse     11.33       251,968       100 %
5205 Highway 169
     Plymouth, MN               1960     Light Industrial     7.92       97,523       83 %
6451-6595 Citywest Parkway
     Eden Prairie, MN               1984     R&D/Flex     6.98       83,657       100 %
7100-7198 Shady Oak Road
     Eden Prairie, MN               1982/2002     Light Industrial     14.44       120,541       86 %
7500-7546 Washington Square
     Eden Prairie, MN               1975     Light Industrial     5.40       46,285       84 %
7550-7558 Washington Square
     Eden Prairie, MN               1975     Light Industrial     2.70       31,839       100 %
5240-5300 Valley Industrial Blvd S
     Shakopee, MN               1973     Light Industrial     9.06       80,001       73 %
7125 Northland Terrace
     Brooklyn Park, MN               1996     R&D/Flex     5.89       79,958       100 %
6900 Shady Oak Road
     Eden Prairie, MN               1980     R&D/Flex     4.60       49,190       100 %
6477-6525 City West Parkway
     Eden Prairie, MN               1984     R&D/Flex     7.00       89,235       100 %
1157 Valley Park Drive
     Shakopee, MN               1997     Bulk Warehouse     9.97       126,170       81 %
500-530 Kasota Avenue SE
     Minneapolis, MN               1976     Manufacturing     4.47       77,702       100 %
770-786 Kasota Avenue SE
     Minneapolis, MN               1976     Manufacturing     3.16       56,388       100 %
800 Kasota Avenue SE
     Minneapolis, MN               1976     Manufacturing     4.10       100,250       100 %
2530-2570 Kasota Avenue
     St. Paul, MN               1976     Manufacturing     4.56       75,426       86 %
1280 Energy Park Drive
     St. Paul, MN               1984     Light Industrial     4.27       71,905       100 %
9700 West 76th Street
     Eden Prairie, MN               1984/97     R&D/Flex     6.25       80,862       100 %

29

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Minneapolis/ St. Paul — (Continued)                                            
7600 69th Avenue
     Greenfield, MN               2004     Bulk Warehouse     17.00       216,700       100 %
2041 Wooddale Drive
     Woodbury, MN               1973     Light Industrial     5.20       47,263       100 %
                                         
Subtotal or Average     4,506,055       87 %
             
Nashville
                                                    
1621 Heil Quaker Boulevard
     Nashville, TN               1975     Bulk Warehouse     11.29       160,661       100 %
3099 Barry Drive
     Portland, TN               1995     Manufacturing     6.20       109,058       0 %
3150 Barry Drive
     Portland, TN               1993     Bulk Warehouse     26.32       268,593       100 %
5599 Highway 31 West
     Portland, TN               1995     Bulk Warehouse     20.00       161,500       100 %
1650 Elm Hill Pike
     Nashville, TN               1984     Light Industrial     3.46       41,228       100 %
1931 Air Lane Drive
     Nashville, TN               1984     Light Industrial     10.11       87,549       100 %
470 Metroplex Drive(i)
     Nashville, TN               1986     Light Industrial     8.11       102,040       83 %
1150 Antiock Pike
     Nashville, TN               1987     Bulk Warehouse     9.83       146,055       68 %
4640 Cummings Park
     Nashville, TN               1986     Bulk Warehouse     14.69       100,000       81 %
556 Metroplex Drive
     Nashville, TN               1983     Light Industrial     3.66       43,026       100 %
1706 Heil Quaker Boulevard
     Laverne, TN               1986     Bulk Warehouse     25.75       518,400       100 %
375 Belvedere Drive
     Gallatin, TN               1979/85     Bulk Warehouse     31.75       194,113       100 %
                                         
Subtotal or Average     1,932,223       90 %
             
Northern New Jersey
                                                    
220 Hanover Avenue
     Hanover, NJ               1987     Bulk Warehouse     29.27       158,242       100 %
14 World’s Fair Drive
     Franklin, NJ               1980     R&D/Flex     4.53       60,000       100 %
18 World’s Fair Drive
     Franklin, NJ               1982     R&D/Flex     1.06       13,000       100 %
23 World’s Fair Drive
     Franklin, NJ               1982     Light Industrial     1.20       16,000       100 %
12 World’s Fair Drive
     Franklin, NJ               1981     Light Industrial     3.85       65,000       73 %
22 World’s Fair Drive
     Franklin, NJ               1983     Light Industrial     3.52       50,000       90 %
26 World’s Fair Drive
     Franklin, NJ               1984     Light Industrial     3.41       47,000       100 %
24 World’s Fair Drive
     Franklin, NJ               1984     Light Industrial     3.45       47,000       79 %
20 Worlds Fair Drive Lot 13
     Sumerset, NJ               1999     R&D Flex     4.25       30,000       83 %
10 New Maple Road
     Pine Brook, NJ               1973/1999     Bulk Warehouse     18.13       265,376       48 %
45 Route 46
     Pine Brook, NJ               1974/1987     Light Industrial     6.54       84,284       79 %
43 Route 46
     Pine Brook, NJ               1974/1987     Light Industrial     2.48       37,268       82 %
39 Route 46
     Pine Brook, NJ               1970     R&D Flex     1.64       22,285       65 %
26 Chapin Road
     Pine Brook, NJ               1983     Light Industrial     5.15       76,497       100 %
30 Chapin Road
     Pine Brook, NJ               1983     Light Industrial     5.15       76,770       93 %
20 Mountain Hook Road
     Pine Brook, NJ               1972/1984     Bulk Warehouse     14.02       213,991       96 %
30 Mountain Hook Road
     Pine Brook, NJ               1972/1987     Light Industrial     3.36       51,570       100 %
55 Route 46
     Pine Brook, NJ               1978/1994     R&D Flex     2.13       24,051       81 %
16 Chapin Road
     Pine Brook, NJ               1987     R&D Flex     4.61       69,030       100 %
20 Chapin Road
     Pine Brook, NJ               1987     R&D Flex     5.69       84,601       83 %
Sayreville Lot 3
     Sayreville, NJ               2002     Light Industrial     7.43       62,400       83 %
Sayreville Lot 4
     Sayreville, NJ               2001     Light Industrial     6.88       62,400       100 %
400 Raritan Center Parkway
     Edison, NJ               1983     Light Industrial     7.16       81,240       100 %
300 Columbus Circle
     Edison, NJ               1983     R&D Flex     9.38       123,029       89 %
400 Apgar
     Franklin Twnship, NJ               1987     Bulk Warehouse     14.34       111,824       92 %

30

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Northern New Jersey — (Continued)
                                                    
500 Apgar
     Franklin Twnship, NJ               1987     Reg. Warehouse     5.00       58,585       100 %
201 Circle Dr. North
     Piscataway, NJ               1987     Bulk Warehouse     5.24       113,738       74 %
1 Pearl Ct
     Allendale, NJ               1978     Light Industrial     3.00       46,400       0 %
2 Pearl Ct
     Allendale, NJ               1979     Light Industrial     3.00       39,170       100 %
3 Pearl Ct
     Allendale, NJ               1978     Light Industrial     3.00       41,470       100 %
4 Pearl Ct
     Allendale, NJ               1979     Light Industrial     3.00       41,227       50 %
5 Pearl Ct
     Allendale, NJ               1977     Light Industrial     3.00       37,343       100 %
6 Pearl Ct
     Allendale, NJ               1980     Light Industrial     10.40       99,700       58 %
7 Pearl Ct
     Allendale, NJ               1979     Light Industrial     6.50       44,750       100 %
59 Route 17
     Allendale, NJ               1979     Light Industrial     5.90       60,000       100 %
309-319 Pierce Street
     Somerset, NJ               1986     Bulk Warehouse     8.63       115,536       100 %
160 Pierce Street
     Somerset, NJ               2004     Reg. Warehouse     9.16       87,500       100 %
12 Thornton Road
     Oakland, NJ               1981     Reg. Warehouse     6.00       92,400       100 %
147 Clinton Road
     West Caldwell, NJ               1967/1983     Bulk Warehouse     14.96       194,258       100 %
200 Maltese Drive
     Totowa, NJ               1965/1975     Bulk Warehouse     9.00       208,000       100 %
                                         
Subtotal or Average     3,212,935       87 %
             
Philadelphia
                                                    
230-240 Welsh Pool Road
     Exton, PA               1975/1997     Manufacturing     6.56       30,000       100 %
264 Welsh Pool Road
     Exton, PA               1975/1996     R&D/Flex     2.84       11,256       0 %
254 Welsh Pool Road
     Exton, PA               1975/1998     Light Industrial     2.84       28,180       100 %
256 Welsh Pool Road
     Exton, PA               1975/1999     Light Industrial     2.84       12,038       100 %
213 Welsh Pool Road
     Exton, PA               1975/1998     Light Industrial     3.01       22,095       100 %
251 Welsh Pool Road
     Exton, PA               1975/1991     R&D/Flex     4.10       25,546       100 %
253-255 Welsh Pool Road
     Exton, PA               1975/1980     Light Industrial     4.10       20,800       100 %
151-161 Philips Road
     Exton, PA               1975/1990     Light Industrial     3.82       30,065       100 %
210 Philips Road
     Exton, PA               1975/1998     Manufacturing     6.56       26,827       100 %
216 Philips Road
     Exton, PA               1985     Light Industrial     2.99       39,037       100 %
964 Postal Road
     Lehigh, PA               1986     Light Industrial     0.00       44,800       100 %
966 Postal Road
     Lehigh, PA               1987     Light Industrial     0.00       43,245       100 %
999 Postal Road
     Lehigh, PA               1988     Light Industrial     5.60       43,600       65 %
7331 William Avenue
     Lehigh, PA               1989     Bulk Warehouse     3.90       43,400       100 %
7346 Penn Drive
     Lehigh, PA               1988     Reg. Warehouse     7.30       72,000       83 %
7350 William Drive
     Lehigh, PA               1989     Reg. Warehouse     8.70       96,000       100 %
7377 William Drive
     Lehigh, PA               1989     Reg. Warehouse     4.50       43,316       100 %
7072 Snow Drift
     Lehigh, PA               1975     Light Industrial     4.50       61,157       100 %
2000 Cabot Boulevard West
     Langhorne, PA               1984     R&D/Flex     3.06       39,969       63 %
2005 Cabot Boulevard West
     Langhorne, PA               1984     R&D/Flex     3.00       22,000       100 %
2010 Cabot Boulevard West
     Langhorne, PA               1984     Light Industrial     4.00       52,831       89 %
2200 Cabot Boulevard West
     Langhorne, PA               1979     Light Industrial     3.98       61,543       100 %
2260-2270 Cabot Boulevard West
     Langhorne, PA               1980     R&D/Flex     2.12       29,288       82 %
3000 Cabot Boulevard West
     Langhorne, PA               1986     Light Industrial     4.14       34,693       79 %
180 Wheeler Court
     Langhorne, PA               1974     Light Industrial     6.45       78,213       100 %
2512 Metropolitan Drive
     Trevose, PA               1981     Light Industrial     3.54       37,000       100 %
2510 Metropolitan Drive
     Trevose, PA               1981     Light Industrial     2.26       40,000       0 %

31

Table of Contents

                                                     
            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Philadelphia — (Continued)
                                                    
2515 Metropolitan Drive
     Trevose, PA               1974     Light Industrial     2.50       42,000       100 %
2555 Metropolitan Drive
     Trevose, PA               1981     Light Industrial     4.40       60,000       100 %
2450 Metropolitan Drive
     Trevose, PA               1983     Light Industrial     6.98       69,952       81 %
2495 Metropolitan Drive
     Trevose, PA               1981     Light Industrial     8.59       80,000       100 %
4667 Somerton Road
     Trevose, PA               1974     Light Industrial     7.66       118,000       100 %
835 Wheeler Way
     Langhorne, PA               1974     Light Industrial     5.68       64,402       77 %
14 McFadden Road
     Palmer, PA               1994/2000     Light Industrial     7.30       48,000       100 %
                                         
Subtotal or Average     1,571,253       91 %
             
1045 South Edward Drive
     Tempe, AZ               1976     Light Industrial     2.12       38,560       100 %
46 N. 49th Ave
     Phoenix, AZ               1986     Reg. Warehouse     5.16       82,288       100 %
240 N. 48th Avenue
     Phoenix, AZ               1977     Reg. Warehouse     4.46       83,200       50 %
220 N. 48th Avenue
     Phoenix, AZ               1977     Reg. Warehouse     4.46       83,200       100 %
54 N. 48th Avenue
     Phoenix, AZ               1977     Light Industrial     1.11       20,736       100 %
64 N. 48th Avenue
     Phoenix, AZ               1977     Light Industrial     1.43       17,280       100 %
236 N. 48th Avenue
     Phoenix, AZ               1977     Light Industrial     0.93       11,520       100 %
10 S. 48th Avenue
     Phoenix, AZ               1977     Reg. Warehouse     4.64       86,400       50 %
115 E. Watkins St. 
     Phoenix, AZ               1979     Light Industrial     1.32       24,341       100 %
135 E. Watkins Street
     Phoenix, AZ               1977     Reg. Warehouse     3.08       56,685       100 %
10220 S 51st Street
     Phoenix, AZ               1985     Light Industrial     1.54       22,978       100 %
50 South 56th Street
     Chandler, AZ               1991/97     Reg. Warehouse     4.19       78,150       100 %
4625 W McDowell Road
     Phoenix, AZ               2001     Light Industrial     3.39       44,546       100 %
4635 W McDowell Road
     Phoenix, AZ               2001     Light Industrial     3.79       54,890       100 %
405 North 75th Avenue, Bldg 1
     Phoenix, AZ       (g )     2001     Bulk Warehouse     7.35       118,908       100 %
405 North 75th Avenue, Bldg 2
     Phoenix, AZ       (g )     2001     Bulk Warehouse     7.71       135,735       100 %
405 North 75th Avenue, Bldg 3
     Phoenix, AZ       (g )     2001     Bulk Warehouse     9.30       152,562       100 %
                                         
Subtotal or Average     1,111,979       92 %
             
Salt Lake City
                                                    
512 Lawndale Drive(l)
     Salt Lake City, UT               1981     Light Industrial     35.00       386,544       83 %
1270 West 2320 South
     West Valley, UT               1986/1992     R&D/Flex     1.49       13,025       81 %
1275 West 2240 South
     West Valley, UT               1986/1992     R&D/Flex     2.06       38,227       100 %
1288 West 2240 South
     West Valley, UT               1986/1992     R&D/Flex     0.97       13,300       53 %
2235 South 1300 West
     West Valley, UT               1986/1992     Light Industrial     1.22       19,000       71 %
1293 West 2200 South
     West Valley, UT               1986/1992     R&D/Flex     0.86       13,300       67 %
1279 West 2200 South
     West Valley, UT               1986/1992     R&D/Flex     0.91       13,300       92 %
1272 West 2240 South
     West Valley, UT               1986/1992     Light Industrial     3.07       34,870       100 %
1149 West 2240 South
     West Valley, UT               1986/1992     Light Industrial     1.71       21,250       100 %
1142 West 2320 South
     West Valley, UT               1997     Light Industrial     1.52       17,500       100 %
1152 West 2240 South
     West Valley, UT               1999     R&D Flex     13.56       55,785       75 %
369 Orange Street
     Salt Lake City, UT               1980     Bulk Warehouse     6.29       136,000       91 %
1330 W. 3300 South Avenue
     Ogden, UT               1982     Bulk Warehouse     30.75       188,568       100 %
12577 South 265 West Bldg C
     Draper, UT               1996     Light Industrial     6.00       20,000       100 %
                                         
Subtotal or Average     970,669       89 %
             

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            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
San Diego
                                                    
9163 Siempre Viva Road
     San Diego, CA               1989     Reg. Warehouse     1.72       34,116       100 %
9295 Siempre Viva Road
     San Diego, CA               1989     Reg. Warehouse     1.79       35,557       100 %
9255 Customhouse Plaza
     San Diego, CA               1989     Bulk Warehouse     14.85       295,240       92 %
9375 Customhouse Plaza
     San Diego, CA               1989     Reg. Warehouse     1.46       30,944       71 %
9465 Customhouse Plaza
     San Diego, CA               1989     Reg. Warehouse     1.46       30,944       76 %
9485 Customhouse Plaza
     San Diego, CA               1989     Bulk Warehouse     4.85       102,520       96 %
2675 Customhouse Court
     San Diego, CA               1989     Reg. Warehouse     2.24       47,980       100 %
                                         
Subtotal or Average     577,301       93 %
             
Southern New Jersey
                                                    
2-5 North Olnev Ave
     Cherry Hill, NJ               1963/85     Light Industrial     2.10       58,139       100 %
2 Springdale Road
     Cherry Hill, NJ               1968     Light Industrial     1.44       21,008       96 %
4 Springdale Road(i)
     Cherry Hill, NJ               1963/85     Light Industrial     3.02       58,189       100 %
8 Springdale Road
     Cherry Hill, NJ               1966     Light Industrial     3.02       45,054       100 %
2050 Springdale Road
     Cherry Hill, NJ               1965     Light Industrial     3.40       51,060       100 %
16 Springdale Road
     Cherry Hill, NJ               1967     Light Industrial     5.30       48,922       100 %
5 Esterbrook Lane
     Cherry Hill, NJ               1966/88     Reg. Warehouse     5.45       39,167       100 %
2 Pin Oak Lane
     Cherry Hill, NJ               1968     Light Industrial     4.45       51,230       100 %
28 Springdale, Rd
     Cherry Hill, NJ               1967     Light Industrial     2.93       38,949       100 %
3 Esterbrook Lane
     Cherry Hill, NJ               1968     Light Industrial     2.15       32,844       100 %
4 Esterbrook Lane
     Cherry Hill, NJ               1969     Light Industrial     3.42       39,266       100 %
26 Springdale Road
     Cherry Hill, NJ               1968     Light Industrial     3.25       29,492       100 %
1 Keystone Ave
     Cherry Hill, NJ               1969     Light Industrial     4.15       60,983       100 %
21 Olnev Ave
     Cherry Hill, NJ               1969     Manufacturing     1.75       22,738       100 %
19 Olnev Ave
     Cherry Hill, NJ               1971     Light Industrial     4.36       53,962       100 %
2 Keystone Ave
     Cherry Hill, NJ               1970     Light Industrial     3.47       50,922       100 %
18 Olnev Ave
     Cherry Hill, NJ               1974     Light Industrial     8.85       62,542       100 %
2030 Springdale Road
     Cherry Hill, NJ               1977     Light Industrial     6.24       88,872       100 %
111 Whittendale Drive
     Morristown, NJ               1991/96     Reg. Warehouse     5.00       79,329       100 %
9 Whittendale Drive
     Morristown, NJ               2000     Light Industrial     5.51       52,800       100 %
1931 Olney Road
     Cherry Hill, NJ               1969     Light Industrial     2.90       45,770       100 %
7851 Airport Highway
     Pennsauken, NJ               1966     Light Industrial     1.95       31,600       100 %
7860-7870 Airport
     Pennsauken, NJ               1968     R&D/Flex     1.51       23,050       100 %
7110-7112 Airport
     Pennsauken, NJ               1963     R&D/Flex     1.17       14,400       100 %
                                         
Subtotal or Average     1,100,288       100 %
             
St. Louis
                                                    
8921-8971 Frost Avenue
     Hazelwood, MO               1971     Bulk Warehouse     2.00       100,000       100 %
9043-9083 Frost Avenue
     Hazelwood, MO               1970/77     Bulk Warehouse     2.69       145,000       100 %
2121 Chapin Industrial Drive
     Vinita Park, MO               1969/94     Bulk Warehouse     23.40       281,105       97 %
10431-10449 Midwest Industrial
     Olivette, MO               1967     Light Industrial     2.40       55,125       100 %
10751 Midwest Industrial Blvd. 
     Olivette, MO               1965     Light Industrial     1.70       44,100       100 %

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            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
St. Louis — (Continued)
                                                    
6951 N. Hanley(i)
     Hazelwood, MO               1965     Bulk Warehouse     9.50       129,614       100 %
1037 Warson — Bldg A
     St. Louis, MO               1968     Light Industrial     4.00       64,143       100 %
1037 Warson — Bldg B
     St. Louis, MO               1968     Light Industrial     4.00       97,154       100 %
1037 Warson — Bldg C
     St. Louis, MO               1968     Light Industrial     4.00       79,252       100 %
1037 Warson — Bldg D
     St. Louis, MO               1968     Light Industrial     4.00       92,081       100 %
6821-6857 Hazelwood Avenue
     Berkley, MO               2001     Bulk Warehouse     8.93       180,658       100 %
13701 Rider Trail North
     Earth City, MO               1985     Light Industrial     5.34       64,387       100 %
1908-2000 Innerbelt(i)
     Overland, MO               1987     Light Industrial     0.00       191,923       95 %
8449-95 Mid County Industrial
     Vinta Park, MO               1988     Reg. Warehouse     3.97       96,392       100 %
84104-76 Mid County Industrial
     Vinta Park, MO               1989     Bulk Warehouse     4.13       103,058       100 %
2001 Innerbelt Business Center
     Overland, MO               1987     Bulk Warehouse     7.84       171,637       100 %
4774 Park 36 Boulevard
     St. Louis, MO               2001     Bulk Warehouse     9.00       173,800       47 %
1010 Turner Boulevard
     St. Louis, MO               1989     Bulk Warehouse     26.95       248.635       100 %
                                         
Subtotal or Average     2,318,064       95 %
             
Tampa
                                                    
6614 Adamo Drive
     Tampa, FL               1967     Reg. Warehouse     2.78       41,377       100 %
6202 Benjamin Road
     Tampa, FL               1981     R&D/Flex     2.04       30,145       0 %
6204 Benjamin Road
     Tampa, FL               1982     Light Industrial     4.16       60,975       100 %
6206 Benjamin Road
     Tampa, FL               1983     Light Industrial     3.94       57,708       100 %
6302 Benjamin Road
     Tampa, FL               1983     R&D/Flex     2.03       29,747       100 %
6304 Benjamin Road
     Tampa, FL               1984     R&D/Flex     2.04       29,845       100 %
6306 Benjamin Road
     Tampa, FL               1984     Light Industrial     2.58       37,861       67 %
6308 Benjamin Road
     Tampa, FL               1984     Light Industrial     3.22       47,256       71 %
5313 Johns Road
     Tampa, FL               1991     R&D/Flex     1.36       25,690       100 %
5602 Thompson Center Court
     Tampa, FL               1972     R&D/Flex     1.39       14,914       100 %
5411 Johns Road
     Tampa, FL               1997     Light Industrial     1.98       30,204       100 %
5525 Johns Road
     Tampa, FL               1993     R&D/Flex     1.46       24,139       100 %
5607 Johns Road
     Tampa, FL               1991     R&D/Flex     1.34       13,500       56 %
5709 Johns Road
     Tampa, FL               1990     Light Industrial     1.80       25,480       100 %
5711 Johns Road
     Tampa, FL               1990     Light Industrial     1.80       25,455       100 %
5453 West Waters Avenue
     Tampa, FL               1987     R&D/Flex     0.66       7,200       100 %
5455 West Waters Avenue
     Tampa, FL               1987     R&D/Flex     2.97       32,424       24 %
5553 West Waters Avenue
     Tampa, FL               1987     Light Industrial     2.97       32,424       100 %
5501 West Waters Avenue
     Tampa, FL               1990     R&D/Flex     1.53       15,870       100 %
5503 West Waters Avenue
     Tampa, FL               1990     R&D/Flex     0.68       7,060       27 %
5555 West Waters Avenue
     Tampa, FL               1990     R&D/Flex     2.31       23,947       90 %
5557 West Waters Avenue
     Tampa, FL               1990     R&D/Flex     0.57       5,860       100 %
5463 W. Waters Avenue
     Tampa, FL       (e )     1996     R&D/Flex     3.50       44,427       100 %
5461 W. Waters Avenue
     Tampa, FL               1998     Light Industrial     1.84       21,778       100 %
5505 Johns Road #7
     Tampa, FL               1999     Light Industrial     2.12       30,019       100 %
5481 W. Waters Avenue
     Tampa, FL               1999     R&D/Flex     3.60       41,861       100 %
5905 Breckenridge Parkway
     Tampa, FL               1982     R&D/Flex     1.67       18,720       100 %
5907 Breckenridge Parkway
     Tampa, FL               1982     R&D/Flex     0.53       5,980       100 %
5909 Breckenridge Parkway
     Tampa, FL               1982     R&D/Flex     1.60       18,000       100 %
5911 Breckenridge Parkway
     Tampa, FL               1982     R&D/Flex     2.70       30,397       56 %
5910 Breckenridge Parkway
     Tampa, FL               1982     R&D/Flex     4.77       53,591       72 %
5912 Breckenridge Parkway
     Tampa, FL               1982     R&D/Flex     4.70       52,806       64 %

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            Year       Land        
    Location       Built —       Area       Occupancy at
Building Address   City/State   Encumbrances   Renovated   Building Type   (Acres)   GLA   12/31/04
                             
Tampa — (Continued)
                                                    
4515-4519 George Road
     Tampa, FL               1985     Light Industrial     5.00       64,742       93 %
6301 Benjamin Road
     Tampa, FL               1986     R&D/Flex     1.91       27,249       100 %
5723 Benjamin Road
     Tampa, FL               1986     R&D/Flex     2.97       42,270       100 %
6313 Benjamin Road
     Tampa, FL               1986     R&D/Flex     1.90       27,066       100 %
5801 Benjamin Road
     Tampa, FL               1986     Light Industrial     3.83       54,550       82 %
5802 Benjamin Road
     Tampa, FL               1986     R&D/Flex     4.06       57,705       87 %
5925 Benjamin Road
     Tampa, FL               1986     R&D/Flex     2.05       29,109       69 %
6089 Johns Road
     Tampa, FL       (h )     1985     R&D/Flex     1.38       24,000       100 %
6103 Johns Road
     Tampa, FL       (h )     1986     Light Industrial     1.66       28,800       100 %
                                         
Subtotal or Average     1,292,151       87 %
             
Other
                                                    
4200 West Harry Street(j)
     Wichita, KS               1972     Bulk Warehouse     21.45       177,655       100 %
6601 S. 33rd Street
     McAllen, TX               1975     Reg. Warehouse     3.31       50,000       100 %
9601 A Dessau Road
     Austin, TX               1999     Light Industrial     3.28       33,000       100 %
9601 B Dessau Road
     Austin, TX               1999     Light Industrial     3.28       33,000       100 %
9601 C Dessau Road
     Austin, TX               1999     Light Industrial     3.28       33,000       100 %
555 Vista Blvd. 
     Sparks, NV               1980     Bulk Warehouse     40.30       490,500       100 %
                                         
Subtotal or Average     817,155       100 %
             
TOTAL     61,670,735       90 %
             
 
(a) This property collateralizes a $5.5 million mortgage loan which matures on December 1, 2019.
 
(b) These properties collateralize a $2.9 million mortgage loan which matures on September 1, 2009.
 
(c) This property collateralizes a $5.7 million mortgage loan which matures on December 1, 2019.
 
(d) This property collateralizes a $2.0 million mortgage loan which matures on October 1, 2006.
 
(e) This property collateralizes a $2.5 million mortgage loan which matures on September 1, 2006.
 
(f) This property collateralizes a $16.3 million mortgage loan which matures on December 1, 2010.
 
(g) These properties collateralize a $13.9 million mortgage loan which matures on November 10, 2012.
 
(h) These properties collateralize a $6.7 million mortgage loan which matures on July 1, 2009.
 
(i) Comprised of two properties.
 
(j) Comprised of three properties.
 
(k) Comprised of four properties.
 
(l) Comprised of 28 properties.
 
(m) This property collateralizes a $2.0 million mortgage loan which matures on January 1, 2013.
Tenant and Lease Information
      The Company has a diverse base of more than 2,400 tenants engaged in a wide variety of businesses including manufacturing, retail, wholesale trade, distribution and professional services. Most leases have an initial term of between three and six years and provide for periodic rent increases that are either fixed or based on changes in the Consumer Price Index. Industrial tenants typically have net or semi-net leases and pay as additional rent their percentage of the property’s operating costs, including the costs of common area maintenance, property taxes and insurance. As of December 31, 2004, approximately 90% of the GLA of the industrial properties was leased, and no single tenant or group of related tenants accounted for more than 1.3% of the Company’s rent revenues, nor did any single tenant or group of related tenants occupy more than 1.3% of the Company’s total GLA as of December 31, 2004.

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      The following table shows scheduled lease expirations for all leases for the Company’s in-service properties as of December 31, 2004.
                                           
    Number of       Percentage of   Annual Base Rent   Percentage of Total
Year of   Leases   GLA   GLA   Under Expiring   Annual Base Rent
Expiration(1)   Expiring   Expiring(2)   Expiring   Leases   Expiring(2)
                     
                (In thousands)    
2005
     803       14,514,570       26.1 %     59,652       25.5%  
2006
     517       10,347,877       18.6 %     45,937       19.6%  
2007
     453       8,826,005       15.9 %     38,373       16.4%  
2008
     299       7,101,496       12.8 %     28,774       12.3%  
2009
     271       5,392,740       9.7 %     25,972       11.1%  
2010
     106       2,769,205       5.0 %     11,821       5.0%  
2011
     36       1,562,204       2.8 %     6,176       2.6%  
2012
     17       561,740       1.0 %     1,954       0.8%  
2013
     16       1,771,111       3.2 %     4,780       2.0%  
2014
     16       1,034,456       1.9 %     4,949       2.1%  
Thereafter
     17       1,672,514       3.0 %     5,796       2.5%  
                               
 
Total
     2,551       55,553,918       100.0 %   $ 234,184       100.0%  
                               
 
(1)  Lease expirations as of December 31, 2004 assume tenants do not exercise existing renewal, termination, or purchase options.
 
(2)  Does not include existing vacancies of 6,116,817 aggregate square feet.
Item 3. Legal Proceedings
      The Company is involved in legal proceedings arising in the ordinary course of business. All such proceedings, taken together, are not expected to have a material impact on the results of operations, financial position or liquidity of the Company.

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Item 4. Submission of Matters to a Vote of Security Holders
      None.
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
      The following table sets forth for the periods indicated the high and low closing prices per share and distributions declared per share for the Company’s common stock, which trades on the New York Stock Exchange under the trading symbol “FR”.
                         
            Distribution
Quarter Ended   High   Low   Declared
             
December 31, 2004
   $ 42.11     $ 37.26     $ 0.6950  
September 30, 2004
   $ 40.39     $ 35.81     $ 0.6850  
June 30, 2004
   $ 39.50     $ 32.69     $ 0.6850  
March 31, 2004
   $ 39.62     $ 33.00     $ 0.6850  
December 31, 2003
   $ 34.76     $ 32.20     $ 0.6850  
September 30, 2003
   $ 32.65     $ 29.33     $ 0.6850  
June 30, 2003
   $ 32.51     $ 27.96     $ 0.6850  
March 31, 2003
   $ 29.50     $ 26.57     $ 0.6850  
      The Company had 666 common stockholders of record registered with its transfer agent as of March 23, 2005.
      The Company has determined that, for federal income tax purposes, approximately 13.17% of the total $114.6 million in distributions paid with respect to 2004 represents ordinary dividend income to its stockholders, 9.10% qualify as 25 percent rate capital gain, 1.54% qualify as short-term capital gain, 31.47% qualify as a 15 percent rate capital gain and the remaining 44.72% represent a return of capital.
      Additionally, for tax purposes, 23.81% of the Company’s 2004 preferred stock dividends qualify as ordinary income, 16.47% qualify as 25 percent rate capital gain, 2.78% qualify as short-term capital gain and 56.94% qualify as 15 percent rate capital gain.
      In order to maintain its status as a REIT, the Company is required to meet certain tests, including distributing at least 90% of its REIT taxable income, or approximately $1.83 per share for 2004. The Company’s dividend policy is to meet the minimum distribution required to maintain the Company’s REIT qualification under the Internal Revenue Code.
      On March 4, 2005, the Operating Partnership issued 37,587 Units having an aggregate market value of approximately $1.5 million in exchange for property.
      All of the above Units were issued in private placements in reliance on Section 4(2) of the Securities Act of 1933, as amended, including Regulation D promulgated thereunder, to individuals or entities holding real property or interests therein. No underwriters were used in connection with such issuances.
      Subject to lock-up periods and certain adjustments, Units are convertible into common stock, par value $.01, of the Company on a one-for-one basis or cash at the option of the Company.

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Item 6. Selected Financial Data
      The following sets forth selected financial and operating data for the Company on a historical consolidated basis. The following data should be read in conjunction with the financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-K. The historical statements of operations and cash flows for the years ended December 31, 2003 and 2002, and the selected data below for 2001 and 2000 have been restated to correct the classification of income taxes. The historical statements of operations for the years ended December 31, 2004, 2003 and 2002 include the results of operations of the Company as derived from the Company’s audited financial statements. The historical statements of operations for the years ended December 31, 2001 and 2000 include the results of operations of the Company as derived from the Company’s audited financial statements except that management has made adjustments to correct the classification of income taxes. Also, the results of operations of properties sold are presented in discontinued operations if they met both of the following criteria: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Company as a result of the disposition and (b) the Company will not have any significant involvement in the operations of the property after the disposal transaction. The adjustments made by management and the resulting adjusted balances were not audited. The historical balance sheet data and other data as of December 31, 2004, 2003, 2002, 2001 and 2000 include the balances of the Company as derived from the Company’s audited financial statements.
                                           
        Restated
         
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    12/31/04   12/31/03   12/31/02   12/31/01   12/31/00
                     
    (In thousands, except per share and property data)
Statement of Operations Data:
                                        
 
Total Revenues
   $ 319,732     $ 307,815     $ 285,870     $ 295,404     $ 304,965  
 
Interest Income
     3,632       2,416       2,378       2,790       5,489  
 
Gain on Settlement of Interest Rate Protection Agreements
     1,583       —       —       —       —  
 
Property Expenses
     (108,336 )     (99,544 )     (90,468 )     (90,104 )     (91,217 )
 
General and Administrative Expense
     (39,569 )     (26,953 )     (19,610 )     (18,609 )     (17,129 )
 
Interest Expense
     (99,245 )     (95,456 )     (90,387 )     (82,580 )     (83,925 )
 
Amortization of Deferred Financing Costs
     (1,931 )     (1,764 )     (1,925 )     (1,809 )     (1,750 )
 
Depreciation and Other Amortization
     (95,138 )     (75,140 )     (62,658 )     (58,037 )     (54,452 )
 
Loss from Early Retirement from Debt(c)
     (515 )     (1,466 )     (888 )     (10,309 )     —  
 
Valuation Provision on Real Estate(a)
     —       —       —       (9,500 )     (2,900 )
 
Benefit (Provision) for Income Tax
     7,859       4,950       2,188       197       (341 )
 
Equity in Income (Loss) of Joint Ventures
     36,451       539       463       (791 )     571  
 
Minority Interest Allocable to Continuing Operations
     (293 )     562       352       520       (4,524 )
                               

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        Restated
         
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    12/31/04   12/31/03   12/31/02   12/31/01   12/31/00
                     
    (In thousands, except per share and property data)
Income from Continuing Operations
     24,230       15,959       25,315       27,172       54,787  
Income from Discontinued Operations (Including Gain on Sale of Real Estate, Net of Income Taxes, of $79,811, $77,636 and $56,810 for the Year Ended December 31, 2004, 2003 and 2002, respectively), Net of Income Taxes(b)
     88,680       101,266       98,530       48,123       45,652  
Minority Interest Allocable to Discontinued Operations
     (12,167 )     (14,916 )     (14,760 )     (7,377 )     (7,222 )
Gain on Sale of Real Estate, Net of Income Taxes
     11,431       13,445       13,082       64,304       29,296  
Minority Interest Allocable to Gain on Sale of Real Estate
     (1,568 )     (1,981 )     (1,959 )     (9,858 )     (4,635 )
                               
Net Income
     110,606       113,773       120,208       122,364       117,878  
Redemption of Preferred Stock
     (7,959 )     —       (3,707 )     (4,577 )     —  
Preferred Stock Dividends
     (14,488 )     (20,176 )     (23,432 )     (30,001 )     (32,844 )
                               
Net Income Available to Common Stockholders
   $ 88,159     $ 93,597     $ 93,069     $ 87,786     $ 85,034  
                               
Income from Continuing Operations Available to Common Stockholders Per Weighted Average Common Share Outstanding:
                                        
   
Basic
   $ 0.29     $ 0.19     $ 0.24     $ 1.21     $ 1.22  
                               
   
Diluted
   $ 0.28     $ 0.19     $ 0.24     $ 1.20     $ 1.21  
                               
Net Income Available to Common Stockholders Per Weighted Average Common Share Outstanding:
                                        
   
Basic
   $ 2.17     $ 2.43     $ 2.39     $ 2.26     $ 2.23  
                               
   
Diluted
   $ 2.16     $ 2.42     $ 2.38     $ 2.24     $ 2.21  
                               
Distributions Per Share
   $ 2.7500     $ 2.7400     $ 2.7250     $ 2.6525     $ 2.5175  
                               
Weighted Average Number of Common Shares Outstanding:
                                        
   
Basic
     40,557       38,542       38,927       38,841       38,154  
                               
   
Diluted
     40,888       38,663       39,165       39,150       38,446  
                               
Net Income
   $ 110,606     $ 113,773     $ 120,208     $ 122,364     $ 117,878  
Other Comprehensive Income (Loss):
                                        
 
Cumulative Transition Adjustment
     —       —       —       (14,920 )     —  

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        Restated
         
    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended
    12/31/04   12/31/03   12/31/02   12/31/01   12/31/00
                     
    (In thousands, except per share and property data)
   
Settlement of Interest Rate Protection Agreements
     6,816       —       1,772       (191 )     —  
   
Mark-to-Market of Interest Rate Protection Agreements and Interest Rate Swap Agreements
     106       251       (126 )     (231 )     —  
   
Write-off of Unamortized Interest Rate Protection Agreements Due to Early Retirement of Debt
     —       —       —       2,156       —  
   
Amortization of Interest Rate Protection Agreements
     (512 )     198       176       805       —  
                               
 
Comprehensive Income
   $ 117,016     $ 114,222     $ 122,030     $ 109,983     $ 117,878  
                               
Balance Sheet Data (End of Period):
                                        
 
Real Estate, Before Accumulated Depreciation
   $ 2,856,474     $ 2,738,034     $ 2,697,269     $ 2,714,927     $ 2,440,810  
 
Real Estate, After Accumulated Depreciation
     2,478,091       2,388,782       2,388,781       2,438,107       2,221,109  
 
Real Estate Held for Sale, Net
     52,790       —       7,040       30,750       236,422  
 
Total Assets
     2,713,193       2,648,023       2,629,973       2,621,400       2,618,493  
 
Mortgage Loans Payable, Net, Unsecured Lines of Credit and Senior Unsecured Debt, Net
     1,574,929       1,453,798       1,442,149       1,318,450       1,221,356  
 
Total Liabilities
     1,710,766       1,591,732       1,575,586       1,447,361       1,373,288  
 
Stockholders’ Equity
     845,494       889,173       882,326       995,597       1,058,372  
Other Data:
                                        
 
Cash Flow From Operating Activities
   $ 77,657     $ 103,156     $ 132,838     $ 147,134     $ 160,241  
 
Cash Flow From Investing Activities
     9,992       29,037       33,350       (38,804 )     (87,300 )
 
Cash Flow From Financing Activities
     (83,546 )     (131,372 )     (166,188 )     (116,061 )     (67,819 )
 
Total In-Service Properties
     827       834       908       918       969  
 
Total In-Service GLA, in Square Feet
     61,670,735       57,925,466       59,979,894       64,002,809       68,242,713  
 
In-Service Occupancy Percentage
     90 %     88 %     90 %     91 %     95 %
 
(a) Represents a valuation provision on real estate relating to certain properties located in Columbus, Ohio, Des Moines, Iowa, Grand Rapids, Michigan and Indianapolis, Indiana.
 
(b) On January 1, 2002, the Company adopted the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”). FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Company as a result of the disposal transaction and (b) the Company will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also

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requires prior period results of operations for these properties to be restated and presented in discontinued operations in prior consolidated statements of operations.
 
(c) In 2004, the Company paid off and retired a certain mortgage loan. The Company recorded a loss from the early retirement of debt in 2004 of approximately $.5 million, which is comprised of the write-off of unamortized deferred financing costs and prepayment penalties. In 2003, the Company paid off and retired a certain mortgage loan. The Company recorded a loss from the early retirement of debt in 2003 of approximately $1.5 million, which is comprised of the write-off of unamortized deferred financing costs. In 2002, the Company paid off and retired certain senior unsecured debt. The Company recorded a loss from the early retirement of debt of approximately $.9 million which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of pro rata unamortized deferred financing costs and legal costs. In 2001, the Company paid off and retired certain mortgage loans and certain senior unsecured debt. The Company recorded a loss from the early retirement of debt of approximately $10.3 million which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of unamortized deferred financing costs, the write-off of the unamortized portion of an interest rate protection agreement which was used to fix the interest rate on the senior unsecured debt prior to issuance, the settlement of an interest rate protection agreement used to fix the retirement price of the senior unsecured debt, prepayment fees, legal costs and other expenses.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
      The following discussion should be read in conjunction with “Selected Financial Data” and the historical Consolidated Financial Statements and Notes thereto appearing elsewhere in this Form 10-K.
      In addition, the following discussion contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of complying with those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company on a consolidated basis include, but are not limited to, changes in: economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of financing, interest rate levels, competition, supply and demand for industrial properties in the Company’s current and proposed market areas, potential environmental liabilities, slippage in development or lease-up schedules, tenant credit risks, higher-than-expected costs and changes in general accounting principles, policies and guidelines applicable to real estate investment trusts. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included herein and in the Company’s other filings with the Securities and Exchange Commission.
      First Industrial Realty Trust, Inc. was organized in the state of Maryland on August 10, 1993. First Industrial Realty Trust, Inc. is a real estate investment trust (“REIT”), as defined in the Internal Revenue Code (the “Code”). First Industrial Realty Trust, Inc. (together with its consolidated subsidiaries, the “Company”) began operations on July 1, 1994. The Company’s interests in its properties and land parcels are held through (i) partnerships controlled by the Company, including First Industrial, L.P. (the “Operating Partnership”), of which the Company is the sole general partner, as well as, among others, First Industrial Financing Partnership, L.P., First Industrial Securities, L.P., First Industrial Mortgage Partnership, L.P. (the “Mortgage Partnership”), First Industrial Pennsylvania, L.P., First Industrial Harrisburg, L.P., First Industrial Indianapolis, L.P., FI Development Services, L.P. and TK-SV, LTD., each of which the sole general partner is a wholly-owned subsidiary of the Company and the sole limited partner is the Operating Partnership; (ii) limited liability companies, of which the Operating

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Partnership is the sole member; and (iii) First Industrial Development Services, Inc., of which the Operating Partnership is the sole stockholder, all of whose operating data is consolidated with that of the Company as presented herein. The Company, through separate, wholly-owned limited liability companies of which the Operating Partnership is the sole member, also owns minority equity interests in, and provides asset and property management services to, two joint ventures which invest in industrial properties (the “September 1998 Joint Venture” and the “May 2003 Joint Venture”). The Company, through a separate, wholly-owned limited liability company of which the Operating Partnership is also the sole member, also owned a minority interest in and provided property management services to a third joint venture which invested in industrial properties (the “December 2001 Joint Venture”; together with the September 1998 Joint Venture and the May 2003 Joint Venture, the “Joint Ventures”). During the year ended December 31, 2004, the December 2001 Joint Venture sold all of its industrial properties. The operating data of the Joint Ventures is not consolidated with that of the Company as presented herein.
      Management believes the Company’s financial condition and results of operations are, primarily, a function of the Company’s performance in four key areas: leasing of industrial properties, acquisition and development of additional industrial properties, redeployment of internal capital and access to external capital.
      The Company generates revenue primarily from rental income and tenant recoveries from the lease of industrial properties under long-term (generally three to six years) operating leases. Such revenue is offset by certain property specific operating expenses, such as real estate taxes, repairs and maintenance, property management, utilities and insurance expenses, along with certain other costs and expenses, such as depreciation and amortization costs and general and administrative and interest expenses. The Company’s revenue growth is dependent, in part, on its ability to (i) increase rental income, through increasing either or both occupancy rates and rental rates at the Company’s properties, (ii) maximize tenant recoveries and (iii) minimize operating and certain other expenses. Revenues generated from rental income and tenant recoveries are a significant source of funds, in addition to income generated from gains/losses on the sale of the Company’s properties (as discussed below), for the Company’s distributions. The leasing of property, in general, and occupancy rates, rental rates, operating expenses and certain non-operating expenses, in particular, are impacted, variously, by property specific, market specific, general economic and other conditions, many of which are beyond the control of the Company. The leasing of property also entails various risks, including the risk of tenant default. If the Company were unable to maintain or increase occupancy rates and rental rates at the Company’s properties or to maintain tenant recoveries and operating and certain other expenses consistent with historical levels and proportions, the Company’s revenue growth would be limited. Further, if a significant number of the Company’s tenants were unable to pay rent (including tenant recoveries) or if the Company were unable to rent its properties on favorable terms, the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.
      The Company’s revenue growth is also dependent, in part, on its ability to acquire existing, and acquire and develop new, additional industrial properties on favorable terms. The Company continually seeks to acquire existing industrial properties on favorable terms, and, when conditions permit, also seeks to acquire and develop new industrial properties on favorable terms. Existing properties, as they are acquired, and acquired and developed properties, as they lease-up, generate revenue from rental income and tenant recoveries, income from which, as discussed above, is a source of funds for the Company’s distributions. The acquisition and development of properties is impacted, variously, by property specific, market specific, general economic and other conditions, many of which are beyond the control of the Company. The acquisition and development of properties also entails various risks, including the risk that the Company’s investments may not perform as expected. For example, acquired existing and acquired and developed new properties may not sustain and/or achieve anticipated occupancy and rental rate levels. With respect to acquired and developed new properties, the Company may not be able to complete construction on schedule or within budget, resulting in increased debt service expense and construction costs and delays in leasing the properties. Also, the Company faces significant competition for attractive acquisition and development opportunities from other well-capitalized real estate investors, including both

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publicly-traded real estate investment trusts and private investors. Further, as discussed below, the Company may not be able to finance the acquisition and development opportunities it identifies. If the Company were unable to acquire and develop sufficient additional properties on favorable terms, or if such investments did not perform as expected, the Company’s revenue growth would be limited and its financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.
      The Company also generates income from the sale of properties (including existing buildings, buildings which the Company has developed or re-developed on a merchant basis, and land). The Company is continually engaged in, and its income growth is dependent in part on, systematically redeploying its capital from properties and other assets with lower yield potential into properties and other assets with higher yield potential. As part of that process, the Company sells, on an ongoing basis, select stabilized properties or properties offering lower potential returns relative to their market value. The gain/loss on the sale of such properties is included in the Company’s income and is a significant source of funds, in addition to revenues generated from rental income and tenant recoveries, for the Company’s distributions. Also, a significant portion of the proceeds from such sales is used to fund the acquisition of existing, and the acquisition and development of new, industrial properties. The sale of properties is impacted, variously, by property specific, market specific, general economic and other conditions, many of which are beyond the control of the Company. The sale of properties also entails various risks, including competition from other sellers and the availability of attractive financing for potential buyers of the Company’s properties. Further, the Company’s ability to sell properties is limited by safe harbor rules applying to REITs under the Code which relate to the number of properties that may be disposed of in a year, their tax bases and the cost of improvements made to the properties, along with other tests which enable a REIT to avoid punitive taxation on the sale of assets. If the Company were unable to sell properties on favorable terms, the Company’s income growth would be limited and its financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.
      Currently, the Company utilizes a portion of the net sales proceeds from property sales, borrowings under its $300 million unsecured line of credit (the “Unsecured Line of Credit”) and proceeds from the issuance, when and as warranted, of additional equity securities to finance acquisitions and developments. Access to external capital on favorable terms plays a key role in the Company’s financial condition and results of operations, as it impacts the Company’s cost of capital and its ability and cost to refinance existing indebtedness as it matures and to fund acquisitions and developments through the issuance, when and as warranted, of additional equity securities. The Company’s ability to access external capital on favorable terms is dependent on various factors, including general market conditions, interest rates, credit ratings on the Company’s capital stock and debt, the market’s perception of the Company’s growth potential, the Company’s current and potential future earnings and cash distributions and the market price of the Company’s capital stock. If the Company were unable to access external capital on favorable terms, the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.
      In the consolidated statements of operations for the years ended December 31, 2003 and 2002 presented in its Form 8-K filed July 30, 2004, the Company allocated its entire tax provision /benefit to income from discontinued operations. The Company has determined that its tax provision /benefit should be allocated between income from continuing operations, income from discontinued operations and gain on sale of real estate. The Company has restated its consolidated statements of operations and cash flows for the years ended December 31, 2003 and 2002 to reflect this new allocation in this Form 10-K.
CRITICAL ACCOUNTING POLICIES
      The Company’s significant accounting policies are described in more detail in Note 3 to the Consolidated Financial Statements. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

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  •  The Company maintains an allowance for doubtful accounts which is based on estimates of potential losses which could result from the inability of the Company’s tenants to satisfy outstanding billings with the Company. The allowance for doubtful accounts is an estimate based on the Company’s assessment of the creditworthiness of its tenants.
 
  •  Properties are classified as held for sale when the Company has entered into a binding contract to sell such properties. When properties are classified as held for sale, the Company ceases depreciating the properties and estimates the values of such properties and measures them at the lower of depreciated cost or fair value, less costs to dispose. If circumstances arise that were previously considered unlikely, and, as a result, the Company decides not to sell a property previously classified as held for sale, the Company will reclassify such property as held and used. The Company estimates the value of such property and measures it at the lower of its carrying amount (adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used) or fair value at the date of the subsequent decision not to sell. Fair value is determined by deducting from the contract price of the property the estimated costs to close the sale.
 
  •  The Company reviews its properties on a quarterly basis for possible impairment and provides a provision if impairments are determined. The Company utilizes the guidelines established under Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards (“FAS”) No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”) to determine if impairment conditions exist. The Company reviews the expected undiscounted cash flows of each property to determine if there are any indications of impairment. If the expected undiscounted cash flows of a particular property are less than the net book basis of the property, the Company will recognize an impairment charge equal to the amount of carrying value of the property that exceeds the fair value of the property. Fair value is determined by discounting the future expected cash flows of the property. The calculation of the fair value involves subjective assumptions such as estimated occupancy, rental rates, ultimate residual value and the discount rate used to present value the cash flows.
 
  •  The Company is engaged in the acquisition of individual properties as well as multi-property portfolios. In accordance with FASB Statement of Financial Accounting Standards No. 141, “Business Combinations” (“FAS 141”), the Company is required to allocate purchase price between land, building, tenant improvements, leasing commissions, intangible assets and above and below market leases. Above-market and below-market lease values for acquired properties are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rents for each corresponding in-place lease. Acquired above and below market leases are amortized over the remaining non-cancelable terms of the respective leases as an adjustment to rental income. The Company also must allocate purchase price on multi-property portfolios to individual properties. The allocation of purchase price is based on the Company’s assessment of various characteristics of the markets where the property is located and the expected cash flows of the property.
RESULTS OF OPERATIONS
Comparison of Year Ended December 31, 2004 to Year Ended December 31, 2003
      The Company’s net income available to common stockholders was $88.2 million and $93.6 million for the years ended December 31, 2004 and 2003, respectively. Basic and diluted net income available to common stockholders were $2.17 and $2.16 per share, respectively, for the year ended December 31, 2004, and $2.43 and $2.42 per share, respectively, for the year ended December 31, 2003.
      The tables below summarize the Company’s revenues, property expenses and depreciation and other amortization by various categories for the years ended December 31, 2004 and December 31, 2003. Same

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store properties are in-service properties owned prior to January 1, 2003. Acquired properties are properties that were acquired subsequent to December 31, 2002. Sold properties are properties that were sold subsequent to December 31, 2002. Properties that are not in service are properties that are under construction that have not reached stabilized occupancy or were placed in service after December 31, 2002 or acquisitions acquired prior to January 1, 2003 that were not placed in service as of December 31, 2002. These properties are placed in service as they reach stabilized occupancy (generally defined as properties that are 90% leased). Other revenues are derived from the operations of the Company’s maintenance company, fees earned from the Company’s joint ventures, fees earned for developing properties for third parties and other miscellaneous revenues. Other expenses are derived from the operations of the Company’s maintenance company and other miscellaneous regional expenses.
      The Company’s future financial condition and results of operations, including rental revenues, may be impacted by the future acquisition and sale of properties. The Company’s future revenues and expenses may vary materially from historical rates.
      At December 31, 2004 and 2003, the occupancy rates of the Company’s same store properties were 88.6% and 87.8%, respectively.
                                   
    2004   2003   $ Change   % Change
                 
    ($ in 000’s)
REVENUES
                                
Same Store Properties
   $ 253,710     $ 268,270     $ (14,560 )     (5.4 )%
Acquired Properties
     43,864       10,178       33,686       331.0 %
Sold Properties
     20,512       57,588       (37,076 )     (64.4 )%
Properties Not In-service
     16,178       16,375       (197 )     (1.2 )%
Other
     8,849       9,148       (299 )     (3.3 )%
                         
      343,113       361,559       (18,446 )     (5.1 )%
Discontinued Operations
     (23,381 )     (53,744 )     30,363       (56.5 )%
                         
 
Total Revenues
   $ 319,732     $ 307,815     $ 11,917       3.9 %
                         
      Revenues from same store properties decreased $14.6 million due primarily to a $10.7 million lease termination fee the Company received in the first quarter 2003. Revenues from acquired properties increased $33.7 million due to the 143 industrial properties totaling approximately 15.9 million square feet of GLA acquired subsequent to December 31, 2002. Revenues from sold properties decreased $37.1 million due to the 227 industrial properties totaling approximately 14.8 million square feet of GLA sold subsequent to December 31, 2002.
                                   
    2004   2003   $ Change   % Change
                 
    ($ in 000’s)
PROPERTY EXPENSES
                                
Same Store Properties
   $ 82,008     $ 85,141     $ (3,133 )     (3.7 )%
Acquired Properties
     13,036       3,083       9,953       322.8 %
Sold Properties
     6,612       18,256       (11,644 )     (63.8 )%
Properties Not In-service
     7,584       5,956       1,628       27.3 %
Other
     6,510       4,427       2,083       47.1 %
                         
      115,750       116,863       (1,113 )     (1.0 )%
Discontinued Operations
     (7,414 )     (17,319 )     9,905       (57.2 )%
                         
 
Total Property Expenses
   $ 108,336     $ 99,544     $ 8,792       8.8 %
                         
      Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties decreased by approximately $3.1 million due primarily to a decrease in bad debt expense. Property expenses from

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acquired properties increased by $10.0 million due to properties acquired subsequent to December 31, 2002. Property expenses from sold properties decreased by $11.6 million due to properties sold subsequent to December 31, 2002. Property expenses from properties not in-service increased $1.6 million due primarily to an increase in bad debt expense. Other expense increased $2.1 million due primarily to increases in compensation.
      General and administrative expense increased by approximately $12.6 million, or 46.8%, due primarily to increases in employee incentive compensation and an increase in outside professional services fees.
      Amortization of deferred financing costs remained relatively unchanged.
                                 
    2004   2003   $ Change   % Change
                 
    ($ in 000’s)
DEPRECIATION and OTHER AMORTIZATION
                                
Same Store Properties
   $ 70,484     $ 65,433     $ 5,051       7.7 %
Acquired Properties
     16,398       3,839       12,559       327.1 %
Sold Properties
     4,523       11,886       (7,363 )     (61.9 )%
Properties Not In-service and Other
     7,861       4,187       3,674       87.7 %
Corporate Furniture, Fixtures and Equipment
     1,280       1,236       44       3.6 %
                         
      100,546       86,581       13,965       16.1 %
Discontinued Operations
     (5,408 )     (11,441 )     6,033       (52.7 )%
                         
Total Depreciation and Other Amortization
   $ 95,138     $ 75,140     $ 19,998       26.6 %
                         
      The increase in depreciation and other amortization for the same store properties is primarily due to a net increase in leasing commissions and, building and tenant improvements paid in 2004 and 2003. Depreciation and other amortization from acquired properties increased by $12.6 million due to properties acquired subsequent to December 31, 2002. Depreciation and other amortization from sold properties decreased by $7.4 million due to properties sold subsequent to December 31, 2002. Depreciation and other amortization for properties not in-service and other increased by $3.7 million due primarily to depreciation expense being recognized in 2004 for developments that were substantially completed.
      Interest income increased by approximately $1.2 million due primarily to an increase in the average mortgage loans receivable outstanding during the year ended December 31, 2004, as compared to the year ended December 31, 2003, as well as an increase in the average restricted cash balance for the year ended December 31, 2004, as compared to the year ended December 31, 2003.
      In March 2004, the Company, through the Operating Partnership, entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73.5 million, was effective from August 15, 2004 through August 15, 2009, and fixed the LIBOR rate at 3.326%. In May 2004, the Company reduced the projected amount of the future debt offering and settled $24.5 million of this interest rate protection agreement for proceeds in the amount of $1.5 million which is recognized in net income for the year ended December 31, 2004.
      In November 2004, the Company settled an interest rate protection agreement for $.3 million that had been designated as a cash flow hedge of $50.0 million of a forecasted debt issuance. Hedge ineffectiveness in the amount of $.1 million, due to a mismatch in dates, was recognized in net income. The remaining $.2 million is included in other comprehensive income and will be amortized over the term of the forecasted debt issuance. In the event that the issuance of $50.0 million of debt is not issued by December 10, 2005, the balance in other comprehensive income will be reclassified into net income.
      Interest expense increased by approximately $3.8 million due primarily to an increase in the weighted average debt balance outstanding for the year ended December 31, 2004 ($1,522.9 million) as compared to the year ended December 31, 2003 ($1,455.8 million). This was partially offset by a decrease in the weighted average interest rate for the year ended December 31, 2004 (6.60%) as compared to the year

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ended December 31, 2003 (6.61%), and an increase in capitalized interest for the year ended December 31, 2004 due to an increase in development activities.
      The loss on early retirement of debt of approximately $.5 million for the year ended December 31, 2004 is comprised of the write-off of unamortized deferred financing costs and a prepayment penalty related to the early pay off and retirement of the Acquisition Mortgage Loan XI (defined hereafter). The loss on early retirement of debt of approximately $1.5 million for the year ended December 31, 2003 is comprised of the write-off of unamortized deferred financing costs related to the early pay off and retirement of the 1995 Mortgage Loan (defined hereafter).
      Income tax benefit increased by $2.9 million due primarily to an increase in general and administrative expense (“G&A”) due to additional G&A costs incurred in 2004 compared to 2003 associated with additional investment activity in the Company’s taxable REIT subsidiary.
      Equity in income of joint ventures increased by approximately $35.9 million due primarily to the Company’s allocation of gain from the sale of all of the properties in the December 2001 Joint Venture and the Company’s recognition of the deferred gain on it’s initial sale of 30 of the 36 properties to the December 2001 Joint Venture.
      The $11.4 million gain on sale of real estate (net of income taxes) for the year ended December 31, 2004 resulted from the sale of five industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations. The $13.4 million gain on sale of real estate (net of income taxes) for the year ended December 31, 2003 resulted from the sale of 10 industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations.
      The following table summarizes certain information regarding the industrial properties included in discontinued operations by the Company for the year ended December 31, 2004 and December 31, 2003.
                 
    Year Ended
    December 31,
     
        Restated
         
    2004   2003
         
    ($ in 000’s)
Total Revenues
   $ 23,381     $ 53,744  
Operating Expenses
     (7,414 )     (17,319 )
Depreciation and Amortization
     (5,408 )     (11,441 )
Provision for Income Taxes
     (1,690 )     (1,354 )
Gain on Sale of Real Estate, Net of Income Taxes
     79,811       77,636  
             
Income from Discontinued Operations
   $ 88,680     $ 101,266  
             
      Income from discontinued operations (net of income taxes) for the year ended December 31, 2004 reflects the results of operations and gain on sale of real estate of $79.8 million relating to 92 industrial properties that were sold during the year ended December 31, 2004 and the results of operations of nine properties that were identified as held for sale at December 31, 2004.
      Income from discontinued operations (net of income taxes) for the year ended December 31, 2003 reflects the results of operations of industrial properties that were sold during the year ended December 31, 2004, nine properties that were identified as held for sale at December 31, 2004, industrial properties that were sold during the year ended December 31, 2003, as well as the gain on sale of real estate of $77.6 million from the 120 industrial properties which were sold during the year ended December 31, 2003.

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Comparison of Year Ended December 31, 2003 to Year Ended December 31, 2002
      The Company’s net income available to common stockholders was $93.6 million and $93.1 million for the years ended December 31, 2003 and 2002, respectively. Basic and diluted net income available to common stockholders were $2.43 and $2.42 per share, respectively, for the year ended December 31, 2003, and $2.39 and $2.38 per share, respectively, for the year ended December 31, 2002.
      The tables below summarize the Company’s revenues, property expenses and depreciation and other amortization by various categories. Same store properties are in-service properties owned prior to January 1, 2002. Acquired properties are properties that were acquired subsequent to December 31, 2001. Sold properties are properties that were sold subsequent to December 31, 2001. Properties that are not in service are properties that are under construction that have not reached stabilized occupancy or were placed in service after December 31, 2001 or acquisitions acquired prior to January 1, 2002 that were not placed in service as of December 31, 2001. These properties are placed in service as they reach stabilized occupancy (generally defined as properties that are 90% leased). Other revenues are derived from the operations of the Company’s maintenance company, fees earned from the Company’s joint ventures, fees earned for developing properties for third parties and other miscellaneous revenues. Other expenses are derived from the operations of the Company’s maintenance company and other miscellaneous regional expenses.
      The Company’s future financial condition and results of operations, including rental revenues, may be impacted by the acquisition and sale of properties. The Company’s future revenues and expenses may vary materially from historical rates.
      At December 31, 2003 and 2002, the occupancy rates of the Company’s same store properties were 87.0% and 88.6%, respectively.
                                   
    2003   2002   $ Change   % Change
                 
    ($ in 000’s)
REVENUES
                                
Same Store Properties
   $ 269,246     $ 272,991     $ (3,745 )     (1.4 )%
Acquired Properties
     44,119       15,627       28,492       182.3 %
Sold Properties
     24,480       64,741       (40,261 )     (62.2 )%
Properties Not In-service
     14,045       7,697       6,348       82.5 %
Other
     9,669       8,167       1,502       18.4 %
                         
      361,559       369,223       (7,664 )     (2.1 )%
Discontinued Operations
     (53,744 )     (83,353 )     29,609       (35.5 )%
                         
 
Total Revenues
   $ 307,815     $ 285,870     $ 21,945       7.7 %
                         
      Revenues from same store properties decreased $3.7 million due primarily to a decrease in occupancy and rental rates on new leases. Revenues from acquired properties increased $28.5 million due to the 154 industrial properties totaling approximately 12.3 million square feet of GLA acquired during 2003 and 2002. Revenues from sold properties decreased $40.3 million due to the 244 industrial properties totaling approximately 19.3 million square feet of GLA sold during 2003 and 2002. Revenues for properties not in service increased $6.3 million due to an increase in occupancy on developments that were substantially

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completed in 2003 and 2002. Revenues from other properties increased $1.5 million due to an increase in assignment fees.
                                   
    2003   2002   $ Change   % Change
                 
    ($ in 000’s)
PROPERTY EXPENSES
                                
Same Store Properties
   $ 85,585     $ 83,673     $ 1,912       2.3 %
Acquired Properties
     12,469       3,782       8,687       229.7 %
Sold Properties
     8,226       20,318       (12,092 )     (59.5 )%
Properties Not In-service
     5,577       3,404       2,173       63.8 %
Other
     5,006       3,858       1,148       29.8 %
                         
      116,863       115,035       1,828       1.6 %
Discontinued Operations
     (17,319 )     (24,567 )     7,248       (29.5 )%
                         
 
Total Property Expenses
   $ 99,544     $ 90,468     $ 9,076       10.0 %
                         
      Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. The increase in property expenses from same store properties is due primarily to an increase in repairs and maintenance expense, utilities expense and insurance expense, partially offset by a decrease in real estate tax expense. Due to a harsh winter in many of the Company’s markets in 2003, the Company experienced an increase in repairs and maintenance due primarily to an increase in snow removal, as well as an increase in utilities expense due to an increase in utility usage and utility rates. The increase in insurance expense is due primarily to an increase in insurance premiums. The decrease in real estate tax expense is due to a decrease in real estate taxes in certain of the Company’s markets. Property expenses from acquired properties increased by $8.7 million due to properties acquired subsequent to December 31, 2001. Property expenses from sold properties decreased by $12.1 million due to properties sold subsequent to December 31, 2001. Property expenses from properties not in service increased $2.2 million due to an increase in real estate taxes. Property expenses from other properties increased $1.1 million due to an increase in maintenance expenses.
      General and administrative expense increased by approximately $7.3 million due primarily to increases in employee compensation and additional employees in 2003, as well as an increase in the Company’s state tax provision, marketing and promotional expense and costs related to unsuccessful acquisitions and dispositions.
      Amortization of deferred financing costs remained relatively unchanged.
                                 
    2003   2002   $ Change   % Change
                 
    ($ in 000’s)
DEPRECIATION and OTHER AMORTIZATION
                                
Same Store Properties
   $ 66,822     $ 61,550     $ 5,272       8.6 %
Acquired Properties
     8,271       2,510       5,761       229.5 %
Sold Properties
     4,700       11,882       (7,182 )     (60.4 )%
Properties Not In-service and Other
     5,550       1,454       4,096       281.7 %
Corporate Furniture, Fixtures and Equipment
     1,238       1,381       (143 )     (10.4 )%
                         
      86,581       78,777       7,804       9.9 %
Discontinued Operations
     (11,441 )     (16,119 )     4,678       (29.0 )%
                         
Total Depreciation and Other Amortization
   $ 75,140     $ 62,658     $ 12,482       19.9 %
                         
      The increase in depreciation and other amortization for the same store properties is primarily due to a net increase in leasing commissions and tenant improvements paid in 2003 and 2002. Depreciation and other amortization from acquired properties increased by $5.8 million due to properties acquired

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subsequent to December 31, 2001. Depreciation and other amortization from sold properties decreased by $7.2 million due to properties sold subsequent to December 31, 2001. Depreciation and other amortization from properties not in service and other increased by $4.1 million due to primarily to depreciation expense being recognized in 2003 for developments that were substantially completed.
      Interest income remained relatively unchanged.
      Interest expense increased by approximately $5.1 million due primarily to an increase in the weighted average debt balance outstanding for the year ended December 31, 2003 ($1,455.8 million) as compared to the year ended December 31, 2002 ($1,433.0 million) and a decrease in capitalized interest for the year ended December 31, 2003 due to a decrease in development activities. This was partially offset by a decrease in the weighted average interest rate for the year ended December 31, 2003 (6.61%) as compared to the year ended December 31, 2002 (6.85%).
      The loss on early retirement of debt of approximately $1.5 million for the year ended December 31, 2003 is comprised of the write-off of unamortized deferred financing costs related to the early pay off and retirement of a certain mortgage loan. The approximate $.9 million loss on early retirement of debt for the year ended December 31, 2002 is due to the early retirement of senior unsecured debt. The loss is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of pro rata unamortized deferred financing costs and legal costs.
      Income tax benefit increased by $2.8 million due primarily to an increase in interest expense in 2003 compared to 2002 due to a decrease in capitalized interest in 2003 compared to 2002 due to a decrease in development activities.
      Equity in income of joint ventures remained relatively unchanged.
      The $13.4 million gain on sale of real estate (net of income taxes) for the year ended December 31, 2003 resulted from the sale of 10 industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations. The $13.1 million gain on sale of real estate (net of income taxes) for the year ended December 31, 2002 resulted from the sale of 28 industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations.
                 
    Year Ended
    December 31,
     
    Restated
     
    2003   2002
         
    ($ in 000’s)
Total Revenues
   $ 53,744     $ 83,353  
Operating Expenses
     (17,319 )     (24,567 )
Depreciation and Amortization
     (11,441 )     (16,119 )
Provision for Income Taxes
     (1,354 )     (947 )
Gain on Sale of Real Estate, Net of Income Taxes
     77,636       56,810  
             
Income from Discontinued Operations
   $ 101,266     $ 98,530  
             
      Income from discontinued operations (net of income taxes) for the year ended December 31, 2003 reflects the results of operations of industrial properties that were sold during the year ended December 31, 2004, nine properties identified as held for sale at December 31, 2004, industrial properties that were sold during the year ended December 31, 2003, as well as the gain on sale of real estate of $77.6 million from the 120 industrial properties which were sold during the year ended December 31, 2003.
      Income from discontinued operations (net of income taxes) for the year ended December 31, 2002 reflects the results of operations of industrial properties that were sold during the year ended December 31, 2004, nine properties identified as held for sale at December 31, 2004, industrial properties that were sold during the year ended December 31, 2003 and industrial properties that were sold during the year ended

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December 31, 2002, as well as the gain on sale of real estate of $56.8 million from the 86 industrial properties which were sold during the year ended December 31, 2002.
LIQUIDITY AND CAPITAL RESOURCES
      At December 31, 2004, the Company’s cash and cash equivalents, as well as restricted cash, was approximately $5.0 million. Restricted cash is comprised of gross proceeds from the sales of certain industrial properties. These sales proceeds will be disbursed as the Company exchanges industrial properties under Section 1031 of the Internal Revenue Code.
      The Company has considered its short-term (one year or less) liquidity needs and the adequacy of its estimated cash flow from operations and other expected liquidity sources to meet these needs. The Company’s 6.9% Notes due in 2005, in the aggregate principal amount of $50 million are due on November 21, 2005 (the “2005 Notes”). The Company expects to satisfy the maturity of the 2005 Notes with the issuance of additional debt. With the exception of the 2005 Notes, the Company believes that its principal short-term liquidity needs are to fund normal recurring expenses, debt service requirements and the minimum distribution required to maintain the Company’s REIT qualification under the Internal Revenue Code. The Company anticipates that these needs will be met with cash flows provided by operating activities.
      The Company expects to meet long-term (greater than one year) liquidity requirements such as property acquisitions, developments, scheduled debt maturities, major renovations, expansions and other nonrecurring capital improvements through the disposition of select assets, the issuance of long-term unsecured indebtedness and the issuance of additional equity securities. As of December 31, 2004 and March 23, 2005, $464.7 million of common stock, preferred stock and depositary shares and approximately $500.0 million of debt securities were registered and unissued under the Securities Act of 1933, as amended. The Company also may finance the development or acquisition of additional properties through borrowings under the Unsecured Line of Credit. At December 31, 2004, borrowings under the Unsecured Line of Credit bore interest at a weighted average interest rate of 3.518%. The Unsecured Line of Credit bears interest at a floating rate of LIBOR plus .70% or the Prime Rate, at the Company’s election. As of March 23, 2005, the Company had approximately $98.3 million available in additional borrowings under the Unsecured Line of Credit. The Unsecured Line of Credit contains certain financial covenants relating to debt service coverage, market value net worth, dividend payout ratio and total funded indebtedness. The Company’s access to borrowings may be limited if it fails to meet any of these covenants. Also, the Company’s borrowing rate on its Unsecured Line of Credit may increase in the event of a downgrade on the Company’s unsecured notes by the rating agencies.
      The Company currently has credit ratings from Standard & Poor’s, Moody’s and Fitch Ratings of BBB/ Baa2/ BBB, respectively. The Company’s goal is to maintain its existing credit ratings. In the event of a downgrade, management believes the Company would continue to have access to sufficient capital; however, the Company’s cost of borrowing would increase and its ability to access certain financial markets may be limited.
Year Ended December 31, 2004
      Net cash provided by operating activities of approximately $77.7 million for the year ended December 31, 2004 was comprised primarily of net income before minority interest of approximately $124.6 million and by adjustments for non-cash items of approximately $8.3 million, offset by the net change in operating assets and liabilities of approximately $55.2 million. The adjustments for the non-cash items of approximately $8.3 million are primarily comprised of depreciation and amortization of approximately $107.2 million and a loss on the early retirement of debt of approximately $.5 million, offset by the gain on sale of real estate of approximately $91.2 million, the effect of the straight-lining of rental income of approximately $6.8 million and a decrease of the bad debt provision of approximately $1.4 million.

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      Net cash provided by investing activities of approximately $10.0 million for the year ended December 31, 2004 was comprised primarily of the net proceeds from the sale of real estate, the repayment, including the sale, of mortgage loans receivable, a decrease in restricted cash that is held by an intermediary for Section 1031 exchange purposes, and distributions from two of the Company’s industrial real estate joint ventures, partially offset by the acquisition of real estate, development of real estate, capital expenditures related to the expansion and improvement of existing real estate and contributions to, and investments in, one of the Company’s industrial real estate joint ventures.
      During the year ended December 31, 2004, the Company acquired 79 industrial properties comprising approximately 9.2 million square feet of GLA and several land parcels. The purchase price of these acquisitions totaled approximately $402.4 million, excluding costs incurred in conjunction with the acquisition of the industrial properties and land parcels. The Company also substantially completed the development of 11 industrial properties comprising approximately 2.3 million square feet of GLA at an estimated cost of approximately $80.2 million.
      The Company, through wholly-owned limited liability companies in which the Operating Partnership is the sole member, contributed approximately $3.7 million to, and received distributions of approximately $50.5 million from, the Company’s industrial real estate joint ventures. As of December 31, 2004, the Company’s industrial real estate joint ventures owned 46 industrial properties comprising approximately 3.5 million square feet of GLA.
      During the year ended December 31, 2004, the Company sold 97 industrial properties comprising approximately 7.4 million square feet of GLA and several land parcels. Gross proceeds from the sales of the 97 industrial properties and several land parcels were approximately $424.9 million.
      Net cash used in financing activities of approximately $83.5 million for the year ended December 31, 2004 was comprised primarily by the redemption of preferred stock, common and preferred stock dividends and unit distributions, net repayments under the Company’s Unsecured Line of Credit, preferred stock offering costs, debt issuance costs incurred in conjunction with the issuance of senior unsecured debt, the repurchase of restricted stock from employees of the Company to pay for withholding taxes on the vesting of restricted stock and repayments on mortgage loans payable, partially offset by the proceeds from the sale of preferred stock, proceeds from the issuance of senior unsecured debt and mortgage loan payable, the net proceeds from the exercise of stock options and the issuance of common stock and the settlement of interest rate protection agreements in connection with the issuance of senior unsecured debt.
      On December 21, 2004, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $6.2 million (the “Acquisition Mortgage Loan XIV”). The Acquisition Mortgage Loan XIV is collateralized by several properties in Tampa, Florida, bears interest at a fixed rate of 6.94%, and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan XIV matures on July 1, 2009. In conjunction with the assumption of the Acquisition Mortgage Loan XIV, the Company recorded a premium in the amount of $.6 million which will be amortized over the remaining life of the Acquisition Mortgage Loan XIV as an adjustment to interest expense.
      On September 30, 2004, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $12.1 million and borrowed an additional $1.4 million (collectively referred to as the “Acquisition Mortgage Loan XIII”). The Acquisition Mortgage Loan XIII is collateralized by several properties in Phoenix, Arizona, bears interest at a fixed rate of 5.6% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan XIII matures on November 10, 2012. In conjunction with the assumption of the Acquisition Mortgage Loan XIII, the Company recorded a premium in the amount of $.5 million which will be amortized over the remaining life of the Acquisition Mortgage Loan XIII as an adjustment to interest expense.
      During the year ended December 31, 2004, the Company paid off and retired a mortgage loan in the amount of $4.3 million (the “Acquisition Mortgage Loan XI”). The Acquisition Mortgage Loan XI was collateralized by one property in Downers Grove, Illinois, bore interest at a fixed rate of 7.61% and

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provided for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan XI may be prepaid only after June 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium. On December 3, 2004, the Company paid off and retired the Acquisition Mortgage Loan XI. As this pay off and retirement was prior to the stated maturity date of the Acquisition Mortgage Loan XI, the Company wrote off unamortized deferred financing costs and paid a prepayment penalty in the amount of approximately $.5 million.
      On June 11, 2004, the Company, through the Operating Partnership, amended and restated its $300.0 million Unsecured Line of Credit. The Unsecured Line of Credit matures on September 28, 2007 and bears interest at a floating rate of LIBOR plus .70%, or the Prime Rate, at the Company’s election.
      On May 17, 2004, the Company, through the Operating Partnership, exchanged $125.0 million of senior unsecured debt which matures on June 1, 2014 and bears a coupon interest rate of 6.42% (the “2014 Notes”) for $100.0 million aggregate principal amount of its 7.375% Notes due 2011 (the “2011 PATS”) and net cash in the amount of approximately $8.9 million. The issue price of the 2014 Notes was 99.123%.
      On June 14, 2004, the Company, through the Operating Partnership, issued $125.0 million of senior unsecured debt which matures on June 15, 2009 and bears a coupon interest rate of 5.25% (the “2009 Notes”). The issue price of the 2009 Notes was 99.826%. The Company also entered into interest rate protection agreements which were used to fix the interest rate on the 2009 Notes prior to issuance. The Company settled the interest rate protection agreements for approximately $6.7 million of proceeds, which is included in other comprehensive income.
      The Company redeemed the Series D Preferred Stock on June 7, 2004 at a redemption price of $25.00 per Depositary Share, and paid a prorated second quarter dividend of $.36990 per Depositary Share, totaling approximately $1.9 million.
      The Company redeemed the Series E Preferred Stock on June 7, 2004 at a redemption price of $25.00 per Depositary Share, and paid a prorated second quarter dividend of $.36757 per Depositary Share, totaling approximately $1.1 million.
      On May 27, 2004, the Company issued 50,000 Depositary Shares, each representing 1/100th of a share of the Company’s 6.236%, $.01 par value, Series F Flexible Cumulative Redeemable Preferred Stock (the “Series F Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share. Dividends on the Series F Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance through March 31, 2009 (the “Series F Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 6.236% per annum of the liquidation preference (the “Series F Initial Distribution Rate”) (equivalent to $62.36 per Depositary Share). On or after March 31, 2009, the Series F Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.375% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate) (as defined in the Articles Supplementary), reset quarterly. Dividends on the Series F Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series F Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series F Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock and Series G Preferred Stock (hereinafter defined). On or after March 31, 2009, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series F Initial Fixed Rate Period, the Series F Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $50.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series F Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.

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      On May 27, 2004, the Company issued 25,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.236%, $.01 par value, Series G Flexible Cumulative Redeemable Preferred Stock (the “Series G Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share. Dividends on the Series G Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance of the Series G Preferred Stock through March 31, 2014 (the “Series G Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 7.236% per annum of the liquidation preference (the “Series G Initial Distribution Rate”) (equivalent to $72.36 per Depositary Share). On or after March 31, 2014, the Series G Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.500% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate) (as defined in the Articles Supplementary), reset quarterly. Dividends on the Series G Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series G Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series G Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock and Series F Preferred Stock. On or after March 31, 2014, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series G Initial Fixed Rate Period, the Series G Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $25.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series G Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.
      On June 2, 2004, the Company issued 500 shares of 2.965%, $.01 par value, Series H Flexible Cumulative Redeemable Preferred Stock (the “Series H Preferred Stock”), at an initial offering price of $250,000.00 per share. On or after July 2, 2004, the Series H Preferred Stock became redeemable for cash at the option of the Company, in whole but not in part, at a redemption price equivalent, initially, to $242,875.00 per share plus accrued and unpaid dividends. The Company redeemed the Series H Preferred Stock on July 2, 2004 and paid a prorated second and third quarter dividend of $629.555 per share, totaling approximately $.3 million.
      For the year ended December 31, 2004, certain employees of the Company exercised 1,287,482 non-qualified employee stock options. Net proceeds to the Company were approximately $37.3 million.
      During the year ended December 31, 2004, the Company awarded 206,117 shares of restricted common stock to certain employees and 10,500 shares of restricted common stock to certain Directors. These shares of restricted common stock had a fair value of approximately $8.4 million on the date of grant. The restricted common stock vests over periods from one to ten years. Compensation expense will be charged to earnings over the respective vesting periods.
      On September 16, 2004, the Company and the Operating Partnership entered into a sales agreement to sell up to 3,900,000 shares of the Company’s common stock from time to time with Cantor Fitzgerald & Co., as sales agent, in a controlled equity offering program. During the year ended December 31, 2004, the Company issued 1,333,600 shares of common stock under the controlled equity offering program and received net proceeds of $48.8 million.
      On March 31, 2004, the Company paid first quarter 2004 dividends of $53.906 per share (equivalent to $.53906 per Depositary Share) on its 8.625%, $.01 par value, Series C Cumulative Preferred Stock (the “Series C Preferred Stock”), $49.688 per share (equivalent to $.49688 per Depositary Share) on its 7.95%, $.01 par value, Series D Cumulative Preferred Stock (the “Series D Preferred Stock”) and $49.375 per share (equivalent to $.49375 per Depositary Share) on its 7.90%, $.01 par value, Series E Cumulative Preferred Stock (the “Series E Preferred Stock”), totaling, in the aggregate, approximately $5.0 million. On June 30, 2004, the Company paid a second quarter 2004 dividend of $53.906 per share (equivalent to

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$.53906 per Depositary Share) on its Series C Preferred Stock, totaling approximately $1.1 million. On September 30, 2004, the Company paid a third quarter 2004 dividend of $53.906 per share (equivalent to $.53906 per Depositary Share) on its Series C Preferred Stock, a prorated semi-annual dividend of $2,165.28 per share (equivalent to $21.6528 per Depositary Share) on its Series F Preferred Stock (hereinafter defined) and a prorated semi-annual dividend of $2,512.50 per share (equivalent to $25.1250 per Depositary Share) on its Series G Preferred Stock (hereinafter defined), totaling, in the aggregate, approximately $2.8 million. On December 31, 2004, the Company paid a fourth quarter 2004 dividend of $53.906 per share (equivalent to $.53906 per Depositary Share) on its Series C Preferred Stock, totaling approximately $1.1 million.
      On January 19, 2004, the Company and the Operating Partnership paid a fourth quarter 2003 dividend/distribution of $.6850 per common share/ Unit, totaling approximately $31.9 million. On April 19, 2004, the Company and the Operating Partnership paid a first quarter 2004 dividend/distribution of $.6850 per common share/ Unit, totaling approximately $32.7 million. On July 19, 2004, the Company and the Operating Partnership paid a second quarter 2004 dividend/distribution of $.6850 per common share/ Unit, totaling approximately $32.7 million. On October 18, 2004, the Company and the Operating Partnership paid a third quarter 2004 dividend/distribution of $.6850 per common share/ Unit, totaling approximately $32.9 million.
Contractual Obligations and Commitments
      The following table lists our contractual obligations and commitments as of December 31, 2004 (In thousands):
                                         
        Payments Due by Period
         
        Less than    
    Total   1 Year   1-3 Years   3-5 Years   Over 5 Years
                     
Operating and Ground Leases*
   $ 40,907     $ 1,718     $ 2,863     $ 1,740     $ 34,586  
Real Estate Development*
     59,051       59,051       —       —       —  
Long-term Debt
     1,588,849       51,876       475,579       134,042       927,352  
Interest Expense on Long-Term Debt*
     958,627       99,931       174,281       144,344       540,071  
                               
Total
   $ 2,647,434     $ 212,576     $ 652,723     $ 280,126     $ 1,502,009  
                               
 
*  Not on balance sheet.
Off-Balance Sheet Arrangements
      Letters of credit are issued in most cases as pledges to governmental entities for development purposes or to support purchase obligations. At December 31, 2004 the Company has $15.7 million in outstanding letters of credit, none of which are reflected as liabilities on the Company’s balance sheet. The Company has no other off-balance sheet arrangements other than those disclosed on the previous Contractual Obligations and Commitments table.
Environmental
      The Company incurred environmental costs of approximately $.5 million and approximately $.1 million in 2004 and 2003, respectively. The Company estimates 2005 costs of approximately $.8 million. The Company estimates that the aggregate cost which needs to be expended in 2005 and beyond with regard to currently identified environmental issues will not exceed approximately $1.4 million, a substantial amount of which will be the primary responsibility of the tenant, the seller to the Company or another responsible party. This estimate was determined by a third party evaluation.

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Inflation
      For the last several years, inflation has not had a significant impact on the Company because of the relatively low inflation rates in the Company’s markets of operation. Most of the Company’s leases require the tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing the Company’s exposure to increases in costs and operating expenses resulting from inflation. In addition, many of the outstanding leases expire within six years which may enable the Company to replace existing leases with new leases at higher base rentals if rents of existing leases are below the then-existing market rate.
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
      The ratio of earnings to fixed charges and preferred stock dividends was 1.10, 1.07 and 1.02 for the years ended December 31, 2004, 2003 and 2002, respectively. The ratio of earnings to fixed charges and preferred stock dividends between fiscal years 2004, 2003 and 2002 remained relatively unchanged.
Market Risk
      The following discussion about the Company’s risk-management activities includes “forward-looking statements” that involve risk and uncertainties. Actual results could differ materially from those projected in the forward-looking statements.
      This analysis presents the hypothetical gain or loss in earnings, cash flows or fair value of the financial instruments and derivative instruments which are held by the Company at December 31, 2004 that are sensitive to changes in the interest rates. While this analysis may have some use as a benchmark, it should not be viewed as a forecast.
      In the normal course of business, the Company also faces risks that are either non-financial or non-quantifiable. Such risks principally include credit risk and legal risk and are not represented in the following analysis.
      At December 31, 2004, $1,407.4 million (approximately 89.4% of total debt at December 31, 2004) of the Company’s debt was fixed rate debt and $167.5 million (approximately 10.6% of total debt at December 31, 2004) was variable rate debt. Currently, the Company does not enter into financial instruments for trading or other speculative purposes.
      For fixed rate debt, changes in interest rates generally affect the fair value of the debt, but not earnings or cash flows of the Company. Conversely, for variable rate debt, changes in the interest rate generally do not impact the fair value of the debt, but would affect the Company’s future earnings and cash flows. The interest rate risk and changes in fair market value of fixed rate debt generally do not have a significant impact on the Company until the Company is required to refinance such debt. See Note 5 to the consolidated financial statements for a discussion of the maturity dates of the Company’s various fixed rate debt.
      Based upon the amount of variable rate debt outstanding at December 31, 2004, a 10% increase or decrease in the interest rate on the Company’s variable rate debt would decrease or increase, respectively, future net income and cash flows by approximately $.6 million per year. A 10% increase in interest rates would decrease the fair value of the fixed rate debt at December 31, 2004 by approximately $50.6 million to $1,515.3 million. A 10% decrease in interest rates would increase the fair value of the fixed rate debt at December 31, 2004 by approximately $54.4 million to $1,620.3 million.
Subsequent Events
      On January 24, 2005, the Company and the Operating Partnership paid a fourth quarter 2004 distribution of $.6950 per share, totaling approximately $34.3 million.
      On March 1, 2005, the Company declared a first quarter 2005 distribution of $.6950 per common share/unit on its common stock/units which is payable on April 18, 2005. The Company also declared first

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quarter 2005 dividends of $53.906 per share ($.53906 per Depositary Share), on its Series C Preferred Stock, totaling, in the aggregate, approximately $1.1 million, which is payable on March 31, 2005; semi-annual dividends of $3,118.00 per share ($31.18 per Depositary Share) on its Series F Preferred Stock, totaling, in the aggregate, approximately $1.6 million, which is payable on March 31, 2005; and semi-annual dividends of $3,618.00 per share ($36.18 per Depositary Share) on its Series G Preferred Stock, totaling, in the aggregate, approximately $.9 million, which is payable on March 31, 2005.
      From January 1, 2005 to March 23, 2005, the Company awarded 189,878 shares of restricted common stock to certain employees and 1,012 shares of restricted common stock to certain Directors. These shares of restricted common stock had a fair value of approximately $8.0 million on the date of grant. The restricted common stock vests over periods from one to ten years. Compensation expense will be charged to earnings over the respective vesting period.
      From January 1, 2005 to March 23, 2005, the Company acquired eight industrial properties and several land parcels for a total estimated investment of approximately $47.6 million (approximately $1.5 million of which was made through the issuance of limited partnership interests in the Operating Partnership (“Units”)). The Company also sold thirteen industrial properties and several land parcels for approximately $136.0 million of gross proceeds during this period.
      On March 21, 2005, the Company, through wholly-owned limited liability companies in which a wholly-owned company of the Operating Partnership or the Operating Partnership is the sole member, entered into a joint venture arrangement with an institutional investor to invest in industrial properties (the “March 2005 Joint Venture”). The Company, through wholly-owned limited liability companies in which a wholly-owned company of the Operating Partnership or the Operating Partnership is the sole member, owns a ten percent equity interest in and provides property management, leasing, development, disposition and portfolio management services to the March 2005 Joint Venture.
      On January 13, 2005, the Company, through First Industrial Development Services, Inc., entered into an interest rate protection agreement which hedged the change in value of a build to suit development project the Company is in the process of constructing. This interest rate protection agreement has a notional value of $50.0 million, is based on the five year treasury, has a strike rate of 3.936% and settles on October 4, 2005. Per Statement of Financial Accounting Standard No. 133, “Accounting for Derivative Instruments and Hedging Activities”, fair value and cash flow hedge accounting for hedges of nonfinancial assets and liabilities is limited to hedges of the risk of changes in the market price of the entire hedged item because changes in the price of an ingredient or component of a nonfinancial item generally do not have a predictable, separately measurable effect on the price of the item. Since the interest rate protection agreement is hedging a component of the change in value of the build to suit development, the interest rate protection agreement doesn’t qualify for hedge accounting and the change in value of the interest rate protection agreement will be recognized immediately in net income as opposed to other comprehensive income.
Related Party Transactions
      The Company periodically engages in transactions for which CB Richard Ellis, Inc. acts as a broker. A relative of Michael W. Brennan, the President and Chief Executive Officer and a director of the Company, is an employee of CB Richard Ellis, Inc. For the year ended December 31, 2004, this relative received approximately $.03 million in brokerage commissions paid by the Company.
Other
      In December 2004, the FASB issued Statement of Financial Accounting Standard No. 123 (Revised 2004), “Share-Based Payment” (“FAS 123(R)”). FAS 123(R) is a revision of FAS 123, and also supercedes APB 25, and its related implementation guidance. FAS 123(R) requires compensation cost to be measured at the fair value of the stock option at the date of grant, eliminates the alternative to use the intrinsic value method of accounting prescribed in APB 25, and clarifies and expands the guidance of FAS 123 in several areas. FAS 123(R) is effective as of the beginning of the first interim or annual

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reporting period that begins after June 15, 2005. FAS 123(R) applies to all awards granted, modified, repurchased, or cancelled after the effective date and the cumulative effect of initially applying FAS 123(R), if any, is to be recognized as of the required effective date. The Company will adopt FAS 123(R) commencing as of July 1, 2005 using the modified prospective application method. The Company does not expect the requirements of FAS 123(R) to have a material impact on its results of operations, financial position or liquidity.
      The Emerging Issues Task Force released Issue 03-13, “Applying the Conditions in Paragraph 42 of FASB Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, in Determining Whether to Report Discontinued Operations” (“Issue 03-13”). Issue 03-13 establishes an approach for evaluating whether the criteria in paragraph 42 of FAS 144 have been met for purposes of classifying the results of operations of a component of an entity that either has been disposed of or is classified as held for sale as discontinued operations. The effective date for components classified as held for sale or disposed of is in fiscal periods beginning after December 15, 2004. The Company will adopt Issue 03-13 beginning January 1, 2005; Issue 03-13 will have no impact to net income.
Risk Factors
      The Company’s operations involve various risks that could adversely affect its financial condition, results of operations, cash flow, ability to pay distributions on its common stock and the market price of its common stock. These risks, among others contained in the Company’s other filings with the SEC, include:
Real estate investments’ value fluctuates depending on conditions in the general economy and the real estate business. These conditions may limit the Company’s revenues and available cash.
      The factors that affect the value of the Company’s real estate and the revenues the Company derives from its properties include, among other things:
  •  general economic conditions;
 
  •  local conditions such as oversupply or a reduction in demand in an area;
 
  •  the attractiveness of the properties to tenants;
 
  •  tenant defaults;
 
  •  zoning or other regulatory restrictions;
 
  •  competition from other available real estate;
 
  •  our ability to provide adequate maintenance and insurance; and
 
  •  increased operating costs, including insurance premiums and real estate taxes.
Many real estate costs are fixed, even if income from properties decreases.
      The Company’s financial results depend on leasing space in the Company’s real estate to tenants on terms favorable to the Company. The Company’s income and funds available for distribution to its stockholders will decrease if a significant number of the Company’s tenants cannot pay their rent or the Company is unable to lease properties on favorable terms. In addition, if a tenant does not pay its rent, the Company may not be able to enforce its rights as landlord without delays and the Company may incur substantial legal costs. Costs associated with real estate investment, such as real estate taxes and maintenance costs, generally are not reduced when circumstances cause a reduction in income from the investment. For the year ended December 31, 2004, approximately 75.8% of the Company’s gross revenues from continuing operations came from rentals of real property.

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The Company may be unable to sell properties when appropriate because real estate investments are not as liquid as certain other types of assets.
      Real estate investments generally cannot be sold quickly and, therefore, will tend to limit the Company’s ability to adjust its property portfolio promptly in response to changes in economic or other conditions. The inability to respond promptly to changes in the performance of the Company’s property portfolio could adversely affect the Company’s financial condition and ability to service debt and make distributions to its stockholders. In addition, like other companies qualifying as REITs under the Internal Revenue Code, the Company must comply with the safe harbor rules relating to the number of properties disposed of in a year, their tax basis and the cost of improvements made to the properties, or meet other tests which enable a REIT to avoid punitive taxation on the sale of assets. Thus, the Company’s ability at any time to sell assets may be restricted.
The Company may be unable to sell properties on advantageous terms.
      The Company has sold to third parties a significant number of properties in recent years and, as part of its business, the Company intends to continue to sell properties to third parties. The Company’s ability to sell properties on advantageous terms depends on factors beyond the Company’s control, including competition from other sellers and the availability of attractive financing for potential buyers of the Company’s properties. If the Company is unable to sell properties on favorable terms or redeploy the proceeds of property sales in accordance with the Company’s business strategy, then the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock could be adversely affected.
      The Company has also sold to its joint ventures a significant number of properties in recent years and, as part of its business, the Company intends to continue to sell properties to its joint ventures as opportunities arise. If the Company does not have sufficient properties available that meet the investment criteria of current or future joint ventures, or if the joint ventures have reduced or no access to capital on favorable terms, then such sales could be delayed or prevented, adversely affecting the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock.
      For the year ended December 31, 2004, gains on sales of properties accounted for approximately 73.2% of the Company’s net income.
The Company may be unable to acquire properties on advantageous terms or acquisitions may not perform as the Company expects.
      The Company acquires and intends to continue to acquire primarily industrial properties. The acquisition of properties entails various risks, including the risks that the Company’s investments may not perform as expected and that the Company’s cost estimates for bringing an acquired property up to market standards may prove inaccurate. Further, the Company faces significant competition for attractive investment opportunities from other well-capitalized real estate investors, including both publicly-traded real estate investment trusts and private investors. This competition increases as investments in real estate become attractive relative to other forms of investment. As a result of competition, the Company may be unable to acquire additional properties as it desires or the purchase price may be elevated. In addition, the Company expects to finance future acquisitions through a combination of borrowings under the Company’s Unsecured Line of Credit, proceeds from equity or debt offerings by the Company and proceeds from property sales, which may not be available and which could adversely affect the Company’s cash flow. Any of the above risks could adversely affect the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market value of, the Company’s common stock.

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The Company may be unable to complete development and re-development projects on advantageous terms.
      As part of its business, the Company develops new and re-develops existing properties. In addition, the Company has sold to third parties or sold to the Company’s joint ventures a significant number of development and re-development properties in recent years and the Company intends to continue to sell such properties to third parties or to sell such properties to the Company’s joint ventures as opportunities arise. The real estate development and re-development business involves significant risks that could adversely affect the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of the Company’s common stock, which include:
  •  the Company may not be able to obtain financing for development projects on favorable terms and complete construction on schedule or within budget, resulting in increased debt service expense and construction costs and delays in leasing the properties and generating cash flow;
 
  •  the Company may not be able to obtain, or may experience delays in obtaining, all necessary zoning, land-use, building, occupancy and other governmental permits and authorizations;
 
  •  the properties may perform below anticipated levels, producing cash flow below budgeted amounts and limiting the Company’s ability to sell such properties to third parties or to sell such properties to the Company’s joint ventures.
The Company may be unable to renew leases or find other lessees.
      The Company is subject to the risks that, upon expiration, leases may not be renewed, the space subject to such leases may not be relet or the terms of renewal or reletting, including the cost of required renovations, may be less favorable than expiring lease terms. If the Company were unable to promptly renew a significant number of expiring leases or to promptly relet the space covered by such leases, or if the rental rates upon renewal or reletting were significantly lower than the then current rates, the Company’s cash, funds from operations, and ability to make expected distributions to stockholders might be adversely affected. As of December 31, 2004, leases with respect to approximately 14.5 million, 10.3 million and 8.8 million square feet of GLA, representing 26.1%, 18.6% and 15.9%, of GLA expire in the remainder of 2005, 2006 and 2007, respectively.
The Company might fail to qualify or remain qualified as a REIT.
      First Industrial Realty Trust, Inc. intends to operate so as to qualify as a REIT under the Internal Revenue Code of 1986 (the “Code”). Although First Industrial Realty Trust, Inc. believes that it is organized and will operate in a manner so as to qualify as a REIT, qualification as a REIT involves the satisfaction of numerous requirements, some of which must be met on a recurring basis. These requirements are established under highly technical and complex Code provisions of which there are only limited judicial or administrative interpretations and involve the determination of various factual matters and circumstances not entirely within First Industrial Realty Trust, Inc.’s control.
      First Industrial Realty Trust, Inc. (through one of its subsidiary partnerships) entered into certain development agreements in 2000 through 2003, the performance of which has been completed. Under these agreements, First Industrial Realty Trust, Inc. provided services to unrelated third parties and certain payments were made by the unrelated third parties for services provided by certain contractors hired by First Industrial Realty Trust, Inc. First Industrial Realty Trust, Inc. believes that these payments were properly characterized by it as reimbursements for costs incurred by it on behalf of the third parties and do not constitute gross income and did not prevent First Industrial Realty Trust, Inc. from satisfying the gross income requirements of the REIT provisions (the “gross income tests”). First Industrial Realty Trust, Inc. has brought this matter to the attention of the Internal Revenue Service, or IRS. The IRS has not challenged or expressed any interest in challenging First Industrial Realty Trust Inc.’s view on this matter. If the IRS were to challenge such position and were successful, First Industrial Realty Trust, Inc. might be found not to have satisfied the gross income tests in one or more of its taxable years. If First Industrial Realty Trust, Inc. were found not to have satisfied the gross income tests, it could be subject to a penalty tax. However, such noncompliance should not adversely affect First Industrial Realty Trust,

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Inc.’s status as a REIT as long as such noncompliance was due to reasonable cause and not to willful neglect, and certain other requirements are met. Although this cannot be assured, First Industrial Realty Trust, Inc. believes that the risk of losing its REIT status as a result of these development agreements is remote.
      If First Industrial Realty Trust, Inc. were to fail to qualify as a REIT in any taxable year, it would be subject to federal income tax, including any applicable alternative minimum tax, on its taxable income at corporate rates. This could result in a discontinuation or substantial reduction in dividends to stockholders and in cash to pay interest and principal on debt securities that First Industrial Realty Trust, Inc. issues. Unless entitled to relief under certain statutory provisions, First Industrial Realty Trust, Inc. also would be disqualified from electing treatment as a REIT for the four taxable years following the year during which it failed to qualify as a REIT.
Certain property transfers may generate prohibited transaction income, resulting in a penalty tax on the gain attributable to the transaction.
      As part of its business, the Company sells properties to third parties or sells properties to the Company’s joint ventures as opportunities arise. Under the Code, a 100% penalty tax could be assessed on the gain resulting from sales of properties that are deemed to be prohibited transactions. The question of what constitutes a prohibited transaction is based on the facts and circumstances surrounding each transaction. The Internal Revenue Service could contend that certain sales of properties by the Company are prohibited transactions. While the Company’s management does not believe that the Internal Revenue Service would prevail in such a dispute, if the matter was successfully argued by the Internal Revenue Service, the 100% penalty tax could be assessed against the profits from these transactions. In addition, any income from a prohibited transaction may adversely affect the Company’s ability to satisfy the income tests for qualification as a REIT.
The REIT distribution requirements may require the Company to turn to external financing sources.
      First Industrial Realty Trust, Inc. could, in certain instances, have taxable income without sufficient cash to enable First Industrial Realty Trust, Inc. to meet the distribution requirements of the REIT provisions of the Code. In that situation, the Company could be required to borrow funds or sell properties on adverse terms in order to meet those distribution requirements. In addition, because First Industrial Realty Trust, Inc. must distribute to its stockholders at least 90% of the Company’s REIT taxable income each year, the Company’s ability to accumulate capital may be limited. Thus, in connection with future acquisitions, First Industrial Realty Trust, Inc. may be more dependent on outside sources of financing, such as debt financing or issuances of additional capital stock, which may or may not be available on favorable terms. Additional debt financings may substantially increase the Company’s leverage and additional equity offerings may result in substantial dilution of stockholders’ interests.
Debt financing, the degree of leverage and rising interest rates could reduce the Company’s cash flow.
      Where possible, the Company intends to continue to use leverage to increase the rate of return on the Company’s investments and to allow the Company to make more investments than it otherwise could. The Company’s use of leverage presents an additional element of risk in the event that the cash flow from the Company’s properties is insufficient to meet both debt payment obligations and the distribution requirements of the REIT provisions of the Code. In addition, rising interest rates would reduce the Company’s cash flow by increasing the amount of interest due on its floating rate debt and on its fixed rate debt as it matures and is refinanced.
Cross-collateralization of mortgage loans could result in foreclosure on substantially all of the Company’s properties if the Company is unable to service its indebtedness.
      If the Operating Partnership decides to obtain additional debt financing in the future, it may do so through mortgages on some or all of its properties. These mortgages may be issued on a recourse, non-recourse or cross-collateralized basis. Cross-collateralization makes all of the subject properties available to the lender in order to satisfy the Company’s debt. Holders of indebtedness that is so secured will have a

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claim against these properties. To the extent indebtedness is cross-collateralized, lenders may seek to foreclose upon properties that are not the primary collateral for their loan, which may, in turn, result in acceleration of other indebtedness secured by properties. Foreclosure of properties would result in a loss of income and asset value to the Company, making it difficult for it to meet both debt payment obligations and the distribution requirements of the REIT provisions of the Code. As of December 31, 2004, none of the Company’s current indebtedness was cross-collateralized.
The Company may have to make lump-sum payments on its existing indebtedness.
      The Company is required to make the following lump-sum or “balloon” payments under the terms of some of its indebtedness, including the Operating Partnership’s:
  •  $50 million aggregate principal amount of 7.75% Notes due 2032 (the “2032 Notes”)
 
  •  $200 million aggregate principal amount of 7.60% Notes due 2028 (the “2028 Notes”)
 
  •  approximately $15 million aggregate principal amount of 7.15% Notes due 2027 (the “2027 Notes”)
 
  •  $100 million aggregate principal amount of 7.50% Notes due 2017 (the “2017 Notes”)
 
  •  $125 million aggregate principal amount of 6.42% Notes due 2014 (the “2014 Notes”)
 
  •  $200 million aggregate principal amount of 6.875% Notes due 2012 (the “2012 Notes”)
 
  •  $200 million aggregate principal amount of 7.375% Notes due 2011(the “2011 Notes”)
 
  •  $125 million aggregate principal amount of 5.25% Notes due 2009 (the “2009 Notes”)
 
  •  $150 million aggregate principal amount of 7.60% Notes due 2007 (the “2007 Notes”)
 
  •  $150 million aggregate principal amount of 7.00% Notes due 2006 (the “2006 Notes”)
 
  •  $50 million aggregate principal amount of 6.90% Notes due 2005 (the “2005 Notes”)
 
  •  a $300 million unsecured revolving credit facility (the “Unsecured Line of Credit”) under which First Industrial Realty Trust, Inc., through the Operating Partnership, may borrow to finance the acquisition of additional properties and for other corporate purposes, including working capital.
      The Unsecured Line of Credit provides for the repayment of principal in a lump-sum or “balloon” payment at maturity in 2007. Under the Unsecured Line of Credit, the Operating Partnership has the right, subject to certain conditions, to increase the aggregate commitment under the Unsecured Line of Credit by up to $100 million. As of December 31, 2004, $167.5 million was outstanding under the Unsecured Line of Credit at a weighted average interest rate of 3.518%.
      The Company’s ability to make required payments of principal on outstanding indebtedness, whether at maturity or otherwise, may depend on its ability either to refinance the applicable indebtedness or to sell properties. The Company has no commitments to refinance the 2005 Notes, the 2006 Notes, the 2007 Notes, the 2009 Notes, the 2011 Notes, the 2012 Notes, the 2014 Notes, the 2017 Notes, the 2027 Notes, the 2028 Notes, the 2032 Notes or the Unsecured Line of Credit. Some of the existing debt obligations, other than those discussed above, of the Company, through the Operating Partnership, are secured by the Company’s properties, and therefore such obligations will permit the lender to foreclose on those properties in the event of a default.
There is no limitation on debt in the Company’s organizational documents.
      The organizational documents of First Industrial Realty Trust, Inc. do not contain any limitation on the amount or percentage of indebtedness the Company may incur. Accordingly, the Company could become more highly leveraged, resulting in an increase in debt service that could adversely affect the Company’s ability to make expected distributions to stockholders and in an increased risk of default on the Company’s obligations. As of December 31, 2004, the Company’s ratio of debt to its total market capitalization was 42.5%. The Company computes that percentage by calculating its total consolidated debt as a percentage of the aggregate market value of all outstanding shares of the Company’s common stock, assuming the exchange of all limited partnership units of the Operating Partnership for common stock, plus the aggregate stated value of all outstanding shares of preferred stock and total consolidated debt.

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Rising interest rates on the Company’s Unsecured Line of Credit could decrease the Company’s available cash.
      The Company’s Unsecured Line of Credit bears interest at a floating rate. As of December 31, 2004, the Company’s Unsecured Line of Credit had an outstanding balance of $167.5 million at a weighted average interest rate of 3.518%. Currently, the Company’s Unsecured Line of Credit bears interest at the Prime Rate or at the London Interbank Offered Rate plus .70%. Based on an outstanding balance on the Company’s Unsecured Line of Credit as of December 31, 2004, a 10% increase in interest rates would increase interest expense by $.6 million on an annual basis. Increases in the interest rate payable on balances outstanding under the Unsecured Line of Credit would decrease the Company’s cash available for distribution to stockholders.
Earnings and cash dividends, asset value and market interest rates affect the price of the Company’s common stock.
      As a real estate investment trust, the market value of the Company’s common stock, in general, is based primarily upon the market’s perception of the Company’s growth potential and its current and potential future earnings and cash dividends. The market value of the Company’s common stock is based secondarily upon the market value of the Company’s underlying real estate assets. For this reason, shares of the Company’s common stock may trade at prices that are higher or lower than the Company’s net asset value per share. To the extent that the Company retains operating cash flow for investment purposes, working capital reserves, or other purposes, these retained funds, while increasing the value of the Company’s underlying assets, may not correspondingly increase the market price of the Company’s common stock. The Company’s failure to meet the market’s expectations with regard to future earnings and cash dividends likely would adversely affect the market price of the Company’s common stock. Further, the distribution yield on the common stock (as a percentage of the price of the common stock) relative to market interest rates may also influence the price of the Company’s common stock. An increase in market interest rates might lead prospective purchasers of the Company’s common stock to expect a higher distribution yield, which would adversely affect the market price of the Company’s common stock. Additionally, if the market price of the Company’s common stock declines significantly, then the Company might breach certain covenants with respect to its debt obligations, which could adversely affect the Company’s liquidity and ability to make future acquisitions and the Company’s ability to pay dividends to its stockholders.
The Company may incur unanticipated costs and liabilities due to environmental problems.
      Under various federal, state and local laws, ordinances and regulations, an owner or operator of real estate may be liable for the costs of clean-up of certain conditions relating to the presence of hazardous or toxic materials on, in or emanating from a property, and any related damages to natural resources. Environmental laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the presence of hazardous or toxic materials. The presence of such materials, or the failure to address those conditions properly, may adversely affect the ability to rent or sell the property or to borrow using a property as collateral. Persons who dispose of or arrange for the disposal or treatment of hazardous or toxic materials may also be liable for the costs of clean-up of such materials, or for related natural resource damages, at or from an off-site disposal or treatment facility, whether or not the facility is owned or operated by those persons. No assurance can be given that existing environmental assessments with respect to any of the Company’s properties reveal all environmental liabilities, that any prior owner or operator of a property did not create any material environmental condition not known to the Company or that a material environmental condition does not otherwise exist as to any of the Company’s properties.
The Company’s insurance coverage does not include all potential losses.
      The Company currently carries comprehensive insurance coverage including property, boiler & machinery, liability, fire, flood, terrorism, earthquake, extended coverage and rental loss as appropriate for the markets where each of the Company’s properties and their business operations are located. The insurance coverage contains policy specifications and insured limits customarily carried for similar

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properties and business activities. The Company believes its properties are adequately insured. However, there are certain losses, including losses from earthquakes, hurricanes, floods, pollution, acts of war, acts of terrorism or riots, that are not generally insured against or that are not generally fully insured against because it is not deemed to be economically feasible or prudent to do so. If an uninsured loss or a loss in excess of insured limits occurs with respect to one or more of the Company’s properties, the Company could experience a significant loss of capital invested and potential revenues in these properties, and could potentially remain obligated under any recourse debt associated with the property.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
      Response to this item is included in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” above.
Item 8. Financial Statements and Supplementary Data
        See Index to Financial Statements and Financial Statement Schedule on page F-1 of this Form 10-K.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
      None.
Item 9A.      Controls and Procedures
Evaluation of Disclosure Controls and Procedures
      The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s periodic reports pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required financial disclosure.
      The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based upon this evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were not effective as of the end of the period covered by this report, because of the material weakness discussed below. To address the material weakness described below, the Company performed additional analysis and other procedures after the end of the period covered by this report to ensure the Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.
Management’s Report on Internal Control Over Financial Reporting
      Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
      Management of the Company has assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004. In making its assessment of internal control over financial reporting, management used the criteria described in the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “Internal Control-Integrated Framework”).

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      A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more than remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.
      Management of the Company has concluded that, as of December 31, 2004, the Company had a material weakness in its internal control over financial reporting designed to ensure the proper allocation of its income tax provision (benefit) among income from continuing operations, income from discontinued operations and gain on sale of real estate. This control deficiency resulted in the restatement of the Company’s consolidated financial statements for the years ended 2003 and 2002, the restatement of the quarterly financial information for the four quarters in the year ended 2003, the restatement of the quarterly financial information for the first three quarters in the year ended 2004 and an adjustment to the 2004 annual financial statements which are included in this Form 10-K. Additionally, management of the Company concluded this control deficiency could have resulted in a misstatement of the allocation of income tax provision (benefit) that would result in a material misstatement to annual or interim financial statements that would not be prevented or detected. Accordingly, management determined that this control deficiency constitutes a material weakness in the Company’s internal controls over financial reporting. Because of this material weakness, management of the Company concluded that it did not maintain effective internal control over financial reporting as of December 31, 2004, based on criteria in the Internal Control-Integrated Framework.
      Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein. See Report of Independent Registered Public Accounting Firm on page F-2 of this Form 10-K.
Remediation of Material Weakness
      As discussed in “Management’s Report on Internal Control Over Financial Reporting”, as of December 31, 2004, there was a material weakness in the Company’s internal control over financial reporting. In the first quarter of 2005, the Company implemented improved monitoring controls to ensure the proper allocation of its income tax provision (benefit) among income from continuing operations, income from discontinued operations, and gain on sale of real estate.
Changes in Internal Control Over Financial Reporting
      There has been no change in the Company’s internal control over financial reporting that occurred during the fourth quarter of 2004 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. As discussed above, in the first quarter of 2005, the Company implemented improved monitoring controls to ensure the proper allocation of its income tax provision (benefit) among income from continuing operations, income from discontinued operations, and gain on sale of real estate.
Item 9B. Other Information
      None.

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PART III
Item 10, 11, 12, 13 and 14.
Directors and Executive Officers of the Registrant,
Executive Compensation,
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,
Certain Relationships and Related Transactions and
Principal Accountant Fees and Services
      The information required by Item 10, Item 11, Item 12 (other than information required by Item 201(d) of Regulation S-K which is set forth below), Item 13 and Item 14 will be contained in the Company’s definitive proxy statement expected to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year, and thus is incorporated herein by reference in accordance with General Instruction G(3) to Form 10-K. Information contained in the parts of such proxy statement captioned “Stock Performance Graph”, “Report of the Compensation Committee”, “Report of the Audit Committee” and in statements with respect to the independence of the Audit Committee (except as such statements specifically relate to the independence of such committee’s financial expert) and regarding the Audit Committee Charter are specifically not incorporated herein by reference.
      The following information is required by section 201(d) of regulation S-K:
                           
    Number of Securities   Weighted-Average   Number of Securities
    to be Issued Upon   Exercise Price of   Remaining Available
    Exercise of   Outstanding   for Further Issuance
    Outstanding Options,   Options, Warrants   Under Equity
Plan Category   Warrants and Rights   and Rights   Compensation Plans
             
Equity Compensation Plans Approved by Security Holders
     31,000     $ 20.94       2,356,500  
Equity Compensation Plans Not Approved by Security Holders(1)
     792,421     $ 31.12       424,840  
                   
 
Total
     823,421     $ 30.74       2,781,340  
                   
 
(1)  See Notes 3 and 12 of the Notes to Consolidated Financial Statements contained herein for a description of the plan.

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PART IV
Item 15. Exhibits and Financial Statement Schedules
      (a) Financial Statements, Financial Statement Schedule and Exhibits
        (1 & 2) See Index to Financial Statements and Financial Statement Schedule on page F-1 of this Form 10-K
 
        (3) Exhibits:
     
Exhibits   Description
     
3.1
   Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.2
   Amended and Restated Bylaws of the Company, dated September 4, 1997 (incorporated by reference to Exhibit 1 of the Company’s Form 8-K, dated September 4, 1997, as filed on September 29, 1997, File No. 1-13102)
3.3
   Articles of Amendment to the Company’s Articles of Incorporation, dated June 20, 1994 (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.4
   Articles of Amendment to the Company’s Articles of Incorporation, dated May 31, 1996 (incorporated by reference to Exhibit 3.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.5
   Articles Supplementary relating to the Company’s 85/8% Series C Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company dated June 6, 1997, File No. 1-13102)
3.6
   Articles Supplementary relating to the Company’s 6.236% Series F Flexible Cumulative Redeemable Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
3.7
   Articles Supplementary relating to the Company’s 7.236% Series G Flexible Cumulative Redeemable Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
3.8
   Articles Supplementary relating to the Company’s Junior Participating Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.10 of Form S-3 of the Company and First Industrial, L.P. dated September 24, 1997, Registration No. 333-29879)
4.1
   Deposit Agreement, dated June 6, 1997, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Series C Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 8-K of the Company, dated June 6, 1997, File No. 1-13102)
4.2
   Deposit Agreement, dated May 27, 2004, by and among the Company, EquiServe Inc. and EquiServe Trust Company, N.A. and holders from time to time of Series F Depositary Receipts (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
4.3
   Deposit Agreement, dated May 27, 2004, by and among the Company, EquiServe Inc. and EquiServe Trust Company, N.A. and holders from time to time of Series G Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
4.4
   Remarketing Agreement, dated May 27, 2004, relating to 50,000 depositary shares, each representing 1/100 of a share of the Series F Flexible Cumulative Redeemable Preferred Stock, by and among Lehman Brothers Inc., the Company and First Industrial, L.P. (incorporated by reference to Exhibit 1.2 of the Form 8-K of the Company, dated May 27, 2004, File No. 1-13102).

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Exhibits   Description
     
4.5
   Remarketing Agreement, dated May 27, 2004, relating to 25,000 depositary shares, each representing 1/100 of a share of the Series G Flexible Cumulative Redeemable Preferred Stock, by and among Lehman Brothers Inc., the Company and First Industrial, L.P. (incorporated by reference to Exhibit 1.3 of the Form 8-K of the Company, dated May 27, 2004, File No. 1-13102).
4.6
   Indenture, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)
4.7
   Supplemental Indenture No. 1, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $150 million of 7.60% Notes due 2007 and $100 million of 7.15% Notes due 2027 (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)
4.8
   Supplemental Indenture No. 2, dated as of May 22, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $100 million of 73/8% Notes due 2011(incorporated by reference to Exhibit 4.4 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873)
4.9
   Supplemental Indenture No. 3 dated October 28, 1997 between First Industrial, L.P. and First Trust National Association providing for the issuance of Medium-Term Notes due Nine Months or more from Date of Issue (incorporated by reference to Exhibit 4.1 of Form 8-K of First Industrial, L.P., dated November 3, 1997, as filed November 3, 1997, File No. 333-21873)
4.10
   6.90% Medium-Term Note due 2005 in principal amount of $50 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.17 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.11
   7.00% Medium-Term Note due 2006 in principal amount of $150 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.18 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.12
   7.50% Medium-Term Note due 2017 in principal amount of $100 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.19 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.13
   Trust Agreement, dated as of May 16, 1997, between First Industrial, L.P. and First Bank National Association, as Trustee (incorporated by reference to Exhibit 4.5 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873)
4.14
   Rights Agreement, dated as of September 16, 1997, between the Company and First Chicago Trust Company of New York, as Rights Agent (incorporated by reference to Exhibit 99.1 of Form 8-A12B as filed on September 24, 1997, File No. 1-13102)
4.15
   7.60% Notes due 2028 in principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.2 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)
4.16
   Supplemental Indenture No. 5, dated as of July 14, 1998, between First Industrial, L.P. and the U.S. Bank Trust National Association, relating to First Industrial, L.P.’s 7.60% Notes due July 15, 2008 (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)
4.17
   7.375% Note due 2011 in principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.15 of First Industrial, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2000, File No. 333-21873)
4.18
   Supplemental Indenture No. 6, dated as of March 19, 2001, between First Industrial, L.P. and the U.S. Bank Trust National Association, relating to First Industrial, L.P.’s 7.375% Notes due March 15, 2011 (incorporated by reference to Exhibit 4.16 of First Industrial, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2000, File No. 333-21873)

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Exhibits   Description
     
4.19
   Registration Rights Agreement, dated as of March 19, 2001, among First Industrial, L.P. and Credit Suisse First Boston Corporation, Chase Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Salomon Smith Barney, Inc., Banc of America Securities LLC, Banc One Capital Markets, Inc. and UBS Warburg LLC (incorporated by reference to Exhibit 4.17 of First Industrial, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2000, File No. 333-21873)
4.20
   Third Amended and Restated Unsecured Revolving Credit Agreement, dated as of June 11, 2004, among First Industrial, L.P., First Industrial Realty Trust, Inc., Bank One NA and certain other banks (incorporated by reference to Exhibit 10.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
4.21
   Supplemental Indenture No. 7 dated as of April 15, 2002, between First Industrial, L.P. and the U.S. Bank National Association, relating to First Industrial, L.P.’s 6.875% Notes due 2012 and 7.75% Notes due 2032 (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P. dated April 4, 2002, File No. 333-21873)
4.22
   Form of 6.875% Notes due in 2012 in the principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.2 of the Form 8-K of First Industrial, L.P., dated April 4, 2002, File No. 333-21873)
4.23
   Form of 7.75% Notes due 2032 in the principal amount of $50.0 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.3 of the Form 8-K of First Industrial, L.P., dated April 4, 2002, File No. 333-21873)
4.24
   Supplemental Indenture No. 8, dated as of May 17, 2004, relating to 6.42% Senior Notes due June 1, 2014, by and between First Industrial, L.P. and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P., dated May 27, 2004, File No. 333-21873)
4.25
   Supplemental Indenture No. 9, dated as of June 14, 2004, relating to 5.25% Senior Notes due 2009, by and between the Operating Partnership and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P., dated June 17, 2004, File No. 333-21873)
4.26
   Amendment No. 1, dated as of February 25, 2004, to Rights Agreement, dated as of September 16, 1997, between the Company and Equiserve Trust Company, N.A. (f/k/a First Chicago Trust Company of New York), as Rights Agent (incorporated by reference to Exhibit 4.23 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, File No. 1-13102)
10.1
   Eighth Amended and Restated Limited Partnership Agreement of First Industrial, L.P. (the “LP Agreement”), dated June 2, 2004 (incorporated by reference to Exhibit 10.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.2
   Sales Agreement by and among the Company and First Industrial, L.P., and Cantor Fitzgerald & Co. dated September 16, 2004 (incorporated by reference to Exhibit 1.1 of the Form 8-K of the Company, dated September 16, 2004, File No. 1-13102).
10.3
   Registration Rights Agreement, dated April 29, 1998, relating to the Company’s Common Stock, par value $.01 per share, between the Company, the Operating Partnership and Merrill Lynch, Pierce, Fenner & Smith Incorporated (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company dated May 1, 1998, File No. 1-13102)
10.4
   Non-Competition Agreement between Jay H. Shidler and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.16 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102)
10.5
   Form of Non-Competition Agreement between each of Michael T. Tomasz, Paul T. Lambert, Michael J. Havala, Michael W. Brennan, Michael G. Damone, Duane H. Lund, and Johannson L. Yap and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.14 to the Company’s Registration Statement on Form S-11, File No. 33-77804)
10.6†
   1994 Stock Incentive Plan (incorporated by reference to Exhibit 10.37 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102)

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Exhibits   Description
     
10.7†
   First Industrial Realty Trust, Inc. Deferred Income Plan (incorporated by reference to Exhibit 10 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1996, File No. 1-13102)
10.8
   Contribution Agreement, dated March 19, 1996, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company, dated April 3, 1996, File No. 1-13102)
10.9
   Contribution Agreement, dated January 31, 1997, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.58 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102)
10.10†
   Employment Agreement, dated February 1, 1997, between the Company and Michael W. Brennan (incorporated by reference to Exhibit 10.60 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102)
10.11†
   1997 Stock Incentive Plan (incorporated by reference to Exhibit 10.62 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102)
10.12†
   2001 Stock Incentive Plan (incorporated by reference to Exhibit 10.34 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2001, File No. 1-13102)
10.13†
   Employment Agreement, dated March 31, 2002, between First Industrial Realty Trust, Inc. and Michael J. Havala (incorporated by reference to Exhibit 10.1 of the Form 10-Q of First Industrial Realty Trust, Inc. for the fiscal quarter ended March 31, 2002, File No. 1-13102)
10.14†
   Employment Agreement, dated March 31, 2002, between First Industrial Realty Trust, Inc. and Johannson L. Yap (incorporated by reference to Exhibit 10.2 of the Form 10-Q of First Industrial Realty Trust, Inc. for the fiscal quarter ended March 31, 2002, File No. 1-13102)
10.15†
   Employment Agreement, dated March 25, 2002, between First Industrial Realty Trust, Inc. and David P. Draft (incorporated by reference to Exhibit 10.3 of the Form 10-Q of First Industrial Realty Trust, Inc. for the fiscal quarter ended March 31, 2002, File No. 1-13102)
10.16†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.17†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.4 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.18†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.5 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.19†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.6 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.20*
   Amendment No. 1 dated March 4, 2005 to the LP Agreement.
12.1*
   Computation of ratios of earnings to fixed charges and preferred stock dividends of the Company
21.1*
   Subsidiaries of the Registrant
23*
   Consent of PricewaterhouseCoopers LLP
31.1*
   Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.
31.2*
   Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.
32**
   Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes — Oxley Act of 2002.
 
*  Filed herewith.
**  Furnished herewith.
†  Indicates a compensatory plan or arrangement contemplated by Item 15 a (3) of Form 10-K.

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SIGNATURES
      Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
  FIRST INDUSTRIAL REALTY TRUST, INC.
Date: March 28, 2005
  By:  /s/ Michael W. Brennan
 
 
  Michael W. Brennan
  President, Chief Executive Officer and Director (Principal Executive Officer)
Date: March 28, 2005
  By:  /s/ Michael J. Havala
 
 
  Michael J. Havala
  Chief Financial Officer
  (Principal Financial Officer)
Date: March 28, 2005
  By:  /s/ Scott A. Musil
 
 
  Scott A. Musil
  Senior Vice President, Controller, Treasurer and Assistant Secretary (Principal Accounting Officer)
      Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
             
Signature   Title   Date
         
 
/s/ Jay H. Shidler
 
Jay H. Shidler		   Chairman of the Board of Directors   March 28, 2005
 
/s/ Michael W. Brennan
 
Michael W. Brennan		   President, Chief Executive Officer and Director   March 28, 2005
 
/s/ Michael G. Damone
 
Michael G. Damone		   Director of Strategic Planning and Director   March 28, 2005
 
/s/ Kevin W. Lynch
 
Kevin W. Lynch		   Director   March 28, 2005
 
/s/ John E. Rau
 
John E. Rau		   Director   March 28, 2005
 
/s/ Robert J. Slater
 
Robert J. Slater		   Director   March 28, 2005

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Signature   Title   Date
         
 
/s/ W. Edwin Tyler
 
W. Edwin Tyler		   Director   March 28, 2005
 
/s/ J. Steven Wilson
 
J. Steven Wilson		   Director   March 28, 2005

72

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EXHIBIT INDEX
     
Exhibits   Description
     
3.1
   Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.2
   Amended and Restated Bylaws of the Company, dated September 4, 1997 (incorporated by reference to Exhibit 1 of the Company’s Form 8-K, dated September 4, 1997, as filed on September 29, 1997, File No. 1-13102)
3.3
   Articles of Amendment to the Company’s Articles of Incorporation, dated June 20, 1994 (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.4
   Articles of Amendment to the Company’s Articles of Incorporation, dated May 31, 1996 (incorporated by reference to Exhibit 3.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.5
   Articles Supplementary relating to the Company’s 85/8% Series C Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company dated June 6, 1997, File No. 1-13102)
3.6
   Articles Supplementary relating to the Company’s 6.236% Series F Flexible Cumulative Redeemable Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
3.7
   Articles Supplementary relating to the Company’s 7.236% Series G Flexible Cumulative Redeemable Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
3.8
   Articles Supplementary relating to the Company’s Junior Participating Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.10 of Form S-3 of the Company and First Industrial, L.P. dated September 24, 1997, Registration No. 333-29879)
4.1
   Deposit Agreement, dated June 6, 1997, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Series C Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 8-K of the Company, dated June 6, 1997, File No. 1-13102)
4.2
   Deposit Agreement, dated May 27, 2004, by and among the Company, EquiServe Inc. and EquiServe Trust Company, N.A. and holders from time to time of Series F Depositary Receipts (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
4.3
   Deposit Agreement, dated May 27, 2004, by and among the Company, EquiServe Inc. and EquiServe Trust Company, N.A. and holders from time to time of Series G Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
4.4
   Remarketing Agreement, dated May 27, 2004, relating to 50,000 depositary shares, each representing 1/100 of a share of the Series F Flexible Cumulative Redeemable Preferred Stock, by and among Lehman Brothers Inc., the Company and First Industrial, L.P. (incorporated by reference to Exhibit 1.2 of the Form 8-K of the Company, dated May 27, 2004, File No. 1-13102).
4.5
   Remarketing Agreement, dated May 27, 2004, relating to 25,000 depositary shares, each representing 1/100 of a share of the Series G Flexible Cumulative Redeemable Preferred Stock, by and among Lehman Brothers Inc., the Company and First Industrial, L.P. (incorporated by reference to Exhibit 1.3 of the Form 8-K of the Company, dated May 27, 2004, File No. 1-13102).
4.6
   Indenture, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)

Table of Contents

     
Exhibits   Description
     
4.7
   Supplemental Indenture No. 1, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $150 million of 7.60% Notes due 2007 and $100 million of 7.15% Notes due 2027 (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)
4.8
   Supplemental Indenture No. 2, dated as of May 22, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $100 million of 73/8% Notes due 2011(incorporated by reference to Exhibit 4.4 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873)
4.9
   Supplemental Indenture No. 3 dated October 28, 1997 between First Industrial, L.P. and First Trust National Association providing for the issuance of Medium-Term Notes due Nine Months or more from Date of Issue (incorporated by reference to Exhibit 4.1 of Form 8-K of First Industrial, L.P., dated November 3, 1997, as filed November 3, 1997, File No. 333-21873)
4.10
   6.90% Medium-Term Note due 2005 in principal amount of $50 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.17 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.11
   7.00% Medium-Term Note due 2006 in principal amount of $150 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.18 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.12
   7.50% Medium-Term Note due 2017 in principal amount of $100 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.19 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.13
   Trust Agreement, dated as of May 16, 1997, between First Industrial, L.P. and First Bank National Association, as Trustee (incorporated by reference to Exhibit 4.5 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873)
4.14
   Rights Agreement, dated as of September 16, 1997, between the Company and First Chicago Trust Company of New York, as Rights Agent (incorporated by reference to Exhibit 99.1 of Form 8-A12B as filed on September 24, 1997, File No. 1-13102)
4.15
   7.60% Notes due 2028 in principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.2 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)
4.16
   Supplemental Indenture No. 5, dated as of July 14, 1998, between First Industrial, L.P. and the U.S. Bank Trust National Association, relating to First Industrial, L.P.’s 7.60% Notes due July 15, 2008 (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)
4.17
   7.375% Note due 2011 in principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.15 of First Industrial, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2000, File No. 333-21873)
4.18
   Supplemental Indenture No. 6, dated as of March 19, 2001, between First Industrial, L.P. and the U.S. Bank Trust National Association, relating to First Industrial, L.P.’s 7.375% Notes due March 15, 2011 (incorporated by reference to Exhibit 4.16 of First Industrial, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2000, File No. 333-21873)
4.19
   Registration Rights Agreement, dated as of March 19, 2001, among First Industrial, L.P. and Credit Suisse First Boston Corporation, Chase Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Salomon Smith Barney, Inc., Banc of America Securities LLC, Banc One Capital Markets, Inc. and UBS Warburg LLC (incorporated by reference to Exhibit 4.17 of First Industrial, L.P.’s Annual Report on Form 10-K for the year ended December 31, 2000, File No. 333-21873)
4.20
   Third Amended and Restated Unsecured Revolving Credit Agreement, dated as of June 11, 2004, among First Industrial, L.P., First Industrial Realty Trust, Inc., Bank One NA and certain other banks (incorporated by reference to Exhibit 10.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)

Table of Contents

     
Exhibits   Description
     
4.21
   Supplemental Indenture No. 7 dated as of April 15, 2002, between First Industrial, L.P. and the U.S. Bank National Association, relating to First Industrial, L.P.’s 6.875% Notes due 2012 and 7.75% Notes due 2032 (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P. dated April 4, 2002, File No. 333-21873)
4.22
   Form of 6.875% Notes due in 2012 in the principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.2 of the Form 8-K of First Industrial, L.P., dated April 4, 2002, File No. 333-21873)
4.23
   Form of 7.75% Notes due 2032 in the principal amount of $50.0 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.3 of the Form 8-K of First Industrial, L.P., dated April 4, 2002, File No. 333-21873)
4.24
   Supplemental Indenture No. 8, dated as of May 17, 2004, relating to 6.42% Senior Notes due June 1, 2014, by and between First Industrial, L.P. and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P., dated May 27, 2004, File No. 333-21873)
4.25
   Supplemental Indenture No. 9, dated as of June 14, 2004, relating to 5.25% Senior Notes due 2009, by and between the Operating Partnership and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P., dated June 17, 2004, File No. 333-21873)
4.26
   Amendment No. 1, dated as of February 25, 2004, to Rights Agreement, dated as of September 16, 1997, between the Company and Equiserve Trust Company, N.A. (f/k/a First Chicago Trust Company of New York), as Rights Agent (incorporated by reference to Exhibit 4.23 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, File No. 1-13102)
10.1
   Eighth Amended and Restated Limited Partnership Agreement of First Industrial, L.P. (the “LP Agreement”), dated June 2, 2004 (incorporated by reference to Exhibit 10.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.2
   Sales Agreement by and among the Company and First Industrial, L.P., and Cantor Fitzgerald & Co. dated September 16, 2004 (incorporated by reference to Exhibit 1.1 of the Form 8-K of the Company, dated September 16, 2004, File No. 1-13102).
10.3
   Registration Rights Agreement, dated April 29, 1998, relating to the Company’s Common Stock, par value $.01 per share, between the Company, the Operating Partnership and Merrill Lynch, Pierce, Fenner & Smith Incorporated (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company dated May 1, 1998, File No. 1-13102)
10.4
   Non-Competition Agreement between Jay H. Shidler and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.16 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102)
10.5
   Form of Non-Competition Agreement between each of Michael T. Tomasz, Paul T. Lambert, Michael J. Havala, Michael W. Brennan, Michael G. Damone, Duane H. Lund, and Johannson L. Yap and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.14 to the Company’s Registration Statement on Form S-11, File No. 33-77804)
10.6†
   1994 Stock Incentive Plan (incorporated by reference to Exhibit 10.37 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102)
10.7†
   First Industrial Realty Trust, Inc. Deferred Income Plan (incorporated by reference to Exhibit 10 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1996, File No. 1-13102)
10.8
   Contribution Agreement, dated March 19, 1996, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company, dated April 3, 1996, File No. 1-13102)
10.9
   Contribution Agreement, dated January 31, 1997, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.58 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102)

Table of Contents

     
Exhibits   Description
     
10.10†
   Employment Agreement, dated February 1, 1997, between the Company and Michael W. Brennan (incorporated by reference to Exhibit 10.60 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102)
10.11†
   1997 Stock Incentive Plan (incorporated by reference to Exhibit 10.62 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102)
10.12†
   2001 Stock Incentive Plan (incorporated by reference to Exhibit 10.34 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2001, File No. 1-13102)
10.13†
   Employment Agreement, dated March 31, 2002, between First Industrial Realty Trust, Inc. and Michael J. Havala (incorporated by reference to Exhibit 10.1 of the Form 10-Q of First Industrial Realty Trust, Inc. for the fiscal quarter ended March 31, 2002, File No. 1-13102)
10.14†
   Employment Agreement, dated March 31, 2002, between First Industrial Realty Trust, Inc. and Johannson L. Yap (incorporated by reference to Exhibit 10.2 of the Form 10-Q of First Industrial Realty Trust, Inc. for the fiscal quarter ended March 31, 2002, File No. 1-13102)
10.15†
   Employment Agreement, dated March 25, 2002, between First Industrial Realty Trust, Inc. and David P. Draft (incorporated by reference to Exhibit 10.3 of the Form 10-Q of First Industrial Realty Trust, Inc. for the fiscal quarter ended March 31, 2002, File No. 1-13102)
10.16†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.17†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.4 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.18†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.5 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.19†
   Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.6 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 2004, File No. 1-13102)
10.20*
   Amendment No. 1 dated March 4, 2005 to the LP Agreement
12.1*
   Computation of ratios of earnings to fixed charges and preferred stock dividends of the Company
21.1*
   Subsidiaries of the Registrant
23*  
   Consent of PricewaterhouseCoopers LLP
31.1*
   Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.
31.2*
   Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.
32** 
   Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes — Oxley Act of 2002.
 
* Filed herewith.
**  Furnished herewith.
 
† Indicates a compensatory plan or arrangement contemplated by Item 15 a (3) of Form 10-K.

FIRST INDUSTRIAL REALTY TRUST, INC.
INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE
           
    Page
     
FINANCIAL STATEMENTS
        
      F-2  
      F-4  
      F-5  
      F-6  
      F-7  
      F-8  
FINANCIAL STATEMENT SCHEDULE
        
      S-1  
      S-2  

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
First Industrial Realty Trust, Inc.:
      We have completed an integrated audit of First Industrial Realty Trust, Inc.’s 2004 consolidated financial statements and of its internal control over financial reporting as of December 31, 2004 and audits of its 2003 and 2002 consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits, are presented below.
Consolidated financial statements
      In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations and comprehensive income, of changes in stockholders’ equity and of cash flows present fairly, in all material respects, the financial position of First Industrial Realty Trust, Inc. and its subsidiaries (“the Company”) at December 31, 2004 and 2003, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
      As discussed in Note 11 to the consolidated financial statements, the Company has restated its previously issued financial statements for the years ended December 31, 2003 and 2002.
Internal control over financial reporting
      Also, we have audited management’s assessment, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A, that First Industrial Realty Trust, Inc. did not maintain effective internal control over financial reporting as of December 31, 2004, because the Company did not maintain effective controls to ensure the proper allocation of its income tax provision (benefit) between income from continuing operations, income from discontinued operations and gain on sale of real estate, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express opinions on management’s assessment and on the effectiveness of the Company’s internal control over financial reporting based on our audit.
      We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions.

F-2

Table of Contents

      A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
      Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
      A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The following material weakness has been identified and included in management’s assessment. As of December 31, 2004, the Company had a material weakness in its internal control over financial reporting designed to ensure the proper allocation of its income tax provision (benefit) among income from continuing operations, income from discontinued operations and gain on sale of real estate. This control deficiency resulted in the restatement of the Company’s consolidated financial statements for the years ended 2003 and 2002, the restatement of the quarterly financial information for the four quarters in the year ended 2003, the restatement of the quarterly financial information for the first three quarters in 2004, and an adjustment to the 2004 annual financial statements. Additionally, management of the Company concluded this control deficiency could have resulted in a misstatement of the allocation of income tax provision (benefit) that would result in a material misstatement to annual or interim financial statements that would not be prevented or detected. This material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2004 consolidated financial statements, and our opinion regarding the effectiveness of the Company’s internal control over financial reporting does not affect our opinion on those consolidated financial statements.
      In our opinion, management’s assessment that First Industrial Realty Trust, Inc. did not maintain effective internal control over financial reporting as of December 31, 2004, is fairly stated, in all material respects, based on criteria established in Internal Control-Integrated Framework issued by the COSO. Also, in our opinion, because of the effect of the material weakness described above on the achievement of the objectives of the control criteria, First Industrial Realty Trust, Inc. has not maintained effective internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control-Integrated Framework issued by the COSO.
PricewaterhouseCoopers LLP
Chicago, IL
March 30, 2005

F-3

Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
                       
    December 31,   December 31,
    2004   2003
         
    (Dollars in thousands, except
    share and per share data)
ASSETS
Assets:
                
 
Investment in Real Estate:
                
   
Land
   $ 472,126     $ 441,283  
   
Buildings and Improvements
     2,361,256       2,265,921  
   
Furniture, Fixtures and Equipment
     —       885  
   
Construction in Progress
     23,092       29,945  
   
Less: Accumulated Depreciation
     (378,383 )     (349,252 )
             
     
Net Investment in Real Estate
     2,478,091       2,388,782  
             
 
Real Estate Held for Sale, Net of Accumulated Depreciation and Amortization of $3,374 at December 31, 2004
     52,790       —  
 
Cash and Cash Equivalents
     4,924       821  
 
Restricted Cash
     25       82,006  
 
Tenant Accounts Receivable, Net
     6,986       8,994  
 
Investments in Joint Ventures
     5,489       13,186  
 
Deferred Rent Receivable
     18,314       13,912  
 
Deferred Financing Costs, Net
     11,574       9,818  
 
Prepaid Expenses and Other Assets, Net
     135,000       130,504  
             
     
Total Assets
   $ 2,713,193     $ 2,648,023  
             
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
                
 
Mortgage Loans Payable, Net
   $ 59,905     $ 45,746  
 
Senior Unsecured Debt, Net
     1,347,524       1,212,152  
 
Unsecured Line of Credit
     167,500       195,900  
 
Accounts Payable and Accrued Expenses
     69,729       77,156  
 
Rents Received in Advance and Security Deposits
     30,621       28,889  
 
Dividends Payable
     35,487       31,889  
             
     
Total Liabilities
     1,710,766       1,591,732  
             
Commitments and Contingencies
     —       —  
Minority Interest
     156,933       167,118  
Stockholders’ Equity:
                
 
Preferred Stock ($.01 par value, 10,000,000 shares authorized, 20,000, 500 and 250 shares of Series C, F and G Cumulative Preferred Stock, respectively, issued and outstanding at December 31, 2004, having a liquidation preference of $2,500 per share ($50,000), $100,000 per share ($50,000) and $100,000 per share ($25,000), respectively. At December 31, 2003, 10,000,000 shares authorized, 20,000, 50,000 and 30,000 shares of Series C, D and E Cumulative Preferred Stock, respectively, was issued and outstanding, having a liquidation preference of $2,500 per share ($50,000), $2,500 per share ($125,000) and $2,500 per share ($75,000), respectively)
     —       1  
 
Common Stock ($.01 par value, 100,000,000 shares authorized, 45,360,491 and 42,376,770 shares issued and 42,834,091 and 39,850,370 shares outstanding at December 31, 2004 and December 31, 2003, respectively)
     454       424  
 
Additional Paid-in-Capital
     1,142,356       1,161,373  
 
Distributions in Excess of Accumulated Earnings
     (203,417 )     (172,892 )
 
Unearned Value of Restricted Stock Grants
     (19,611 )     (19,035 )
 
Accumulated Other Comprehensive Loss
     (3,700 )     (10,110 )
 
Treasury Shares at Cost (2,526,400 shares at December 31, 2004 and December 31, 2003)
     (70,588 )     (70,588 )
             
     
Total Stockholders’ Equity
     845,494       889,173  
             
     
Total Liabilities and Stockholders’ Equity
   $ 2,713,193     $ 2,648,023  
             
The accompanying notes are an integral part of the financial statements.

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Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                             
        Restated   Restated
             
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2004   2003   2002
             
    (In thousands, except per share data)
Revenues:
                        
 
Rental Income
   $ 242,307     $ 235,364     $ 219,445  
 
Tenant Recoveries and Other Income
     77,425       72,451       66,425  
                   
   
Total Revenues
     319,732       307,815       285,870  
                   
Expenses:
                        
 
Real Estate Taxes
     48,963       45,701       42,733  
 
Repairs and Maintenance
     24,858       22,935       18,853  
 
Property Management
     13,799       11,025       10,426  
 
Utilities
     11,205       9,567       7,757  
 
Insurance
     3,552       3,019       2,324  
 
Other
     5,959       7,297       8,375  
 
General and Administrative
     39,569       26,953       19,610  
 
Amortization of Deferred Financing Costs
     1,931       1,764       1,925  
 
Depreciation and Other Amortization
     95,138       75,140       62,658  
                   
   
Total Expenses
     244,974       203,401       174,661  
                   
Other Income/ Expense:
                        
 
Interest Income
     3,632       2,416       2,378  
 
Gain on Settlement of Interest Rate Protection Agreements
     1,583       —       —  
 
Interest Expense
     (99,245 )     (95,456 )     (90,387 )
 
Loss From Early Retirement of Debt
     (515 )     (1,466 )     (888 )
                   
   
Total Other Income/ Expense
     (94,545 )     (94,506 )     (88,897 )
                   
(Loss) Income from Continuing Operations Before Income Tax Benefit, Equity in Income of Joint Ventures, Net and Income Allocated to Minority Interest
     (19,787 )     9,908       22,312  
Income Tax Benefit
     7,859       4,950       2,188  
Equity in Income of Joint Ventures, Net of Income Taxes
     36,451       539       463  
Minority Interest Allocable to Continuing Operations
     (293 )     562       352  
                   
Income from Continuing Operations
     24,230       15,959       25,315  
Income from Discontinued Operations (Including Gain on Sale of Real Estate, Net of Income Taxes, of $79,811, $77,636 and $56,810 for the Year Ended December 31, 2004, 2003 and 2002, respectively), Net of Income Taxes
     88,680       101,266       98,530  
Minority Interest Allocable to Discontinued Operations
     (12,167 )     (14,916 )     (14,760 )
                   
Income Before Gain on Sale of Real Estate
     100,743       102,309       109,085  
Gain on Sale of Real Estate, Net of Income Taxes
     11,431       13,445       13,082  
Minority Interest Allocable to Gain on Sale of Real Estate
     (1,568 )     (1,981 )     (1,959 )
                   
Net Income
     110,606       113,773       120,208  
Less: Preferred Stock Dividends
     (14,488 )     (20,176 )     (23,432 )
Less: Redemption of Preferred Stock
     (7,959 )     —       (3,707 )
                   
Net Income Available to Common Stockholders
   $ 88,159     $ 93,597     $ 93,069  
                   
Basic Earnings Per Share:
                        
 
Income from Continuing Operations
   $ 0.29     $ 0.19     $ 0.24  
                   
 
Income from Discontinued Operations
   $ 1.89     $ 2.24     $ 2.15  
                   
 
Net Income Available to Common Stockholders
   $ 2.17     $ 2.43     $ 2.39  
                   
 
Weighted Average Shares Outstanding
     40,557       38,542       38,927  
                   
Diluted Earnings Per Share:
                        
 
Income from Continuing Operations
   $ 0.28     $ 0.19     $ 0.24  
                   
 
Income from Discontinued Operations
   $ 1.87     $ 2.23     $ 2.14  
                   
 
Net Income Available to Common Stockholders
   $ 2.16     $ 2.42     $ 2.38  
                   
 
Weighted Average Shares Outstanding
     40,888       38,663       39,165  
                   
Net Income
   $ 110,606     $ 113,773     $ 120,208  
Other Comprehensive Income:
                        
 
Settlement of Interest Rate Protection Agreements
     6,816       —       1,772  
 
Mark-to-Market of Interest Rate Protection Agreements and Interest Rate Swap Agreements
     106       251       (126 )
 
Amortization of Interest Rate Protection Agreements
     (512 )     198       176  
                   
Comprehensive Income
   $ 117,016     $ 114,222     $ 122,030  
                   
The accompanying notes are an integral part of the financial statements.

F-5

Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
                             
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2004   2003   2002
             
    (Dollars in thousands, except for
    per share data)
Preferred Stock — Beginning of Year
   $ 1     $ 1     $ 1  
 
Issuance of Preferred Stock
   $ —     $ —     $ —  
 
Redemption of Preferred Stock
     (1 )     —       —  
                   
Preferred Stock — End of Year
   $ —     $ 1     $ 1  
                   
Common Stock — Beginning of Year
   $ 424     $ 411     $ 403  
 
Net Proceeds from the Issuance of Common Stock
     30       6       6  
 
Issuance of Restricted Stock
     2       7       1  
 
Repurchase and Retirement of Restricted Stock/Common Stock
     (5 )     (1 )     (1 )
 
Conversion of Units to Common Stock
     3       1       2  
                   
Common Stock — End of Year
   $ 454     $ 424     $ 411  
                   
Additional Paid-In-Capital — Beginning of Year
   $ 1,161,373     $ 1,124,622     $ 1,197,877  
 
Net Proceeds from the Issuance of Common Stock
     99,250       15,111       16,241  
 
Issuance of Restricted Stock
     8,377       20,634       3,231  
 
Repurchase and Retirement of Restricted Stock/Common Stock
     (13,723 )     (1,797 )     (1,694 )
 
Amortization of Stock Based Compensation
     —       54       646  
 
Issuance of Preferred Stock
     194,424       —       —  
 
Redemption of Preferred Stock
     (313,537 )     —       (96,293 )
 
Conversion of Units to Common Stock
     6,192       2,749       4,614  
                   
Additional Paid-In-Capital — End of Year
   $ 1,142,356     $ 1,161,373     $ 1,124,622  
                   
Dist. In Excess of Accum. Earnings — Beginning of Year
   $ (172,892 )   $ (158,251 )   $ (143,958 )
 
Preferred Stock Dividends ($215.624 per Series C Preferred Share, $86.678 per Series D Preferred Share, $86.132 per Series E Preferred Share, $3,724.280 per Series F Preferred Share, $4,321.500 per Series G Preferred Share and $629.555 per Series H Preferred Share at December 31, 2004, $215.624 per Series C Preferred Share, $198.748 per Series D Preferred Share and $197.500 per Series E Preferred Share at December 31, 2003 and 2002, $81.424 Series B Preferred Share at December 31, 2002, respectively)
     (14,488 )     (20,176 )     (23,432 )
 
Distributions ($2.7500, $2.7400 and $2.7250 per Share/ Unit at December 31, 2004, 2003 and 2002, respectively)
     (132,585 )     (126,699 )     (125,785 )
 
Redemption of Preferred Stock
     (7,959 )     —       (3,148 )
 
Repurchase and Retirement of Restricted Stock/Common Stock
     (4,116 )     (67 )     (342 )
 
Net Income Before Minority Interest
     124,634       130,108       136,575  
 
Minority Interest:
                        
   
Allocation of Income
     (14,028 )     (16,335 )     (16,926 )
   
Distributions ($2.7500, $2.7400 and $2.7250 per Share/ Unit at December 31, 2004, 2003 and 2002, respectively)
     18,017       18,528       18,765  
                   
Dist. In Excess of Accum. Earnings — End of Year
   $ (203,417 )   $ (172,892 )   $ (158,251 )
                   
Unearned Value of Rest. Stock Grants — Beginning of Year
   $ (19,035 )   $ (4,307 )   $ (6,247 )
 
Issuance of Restricted Stock
     (8,379 )     (20,641 )     (3,232 )
 
Amortization of Restricted Stock Grants
     7,803       5,913       5,172  
                   
Unearned Value of Rest. Stock Grants — End of Year
   $ (19,611 )   $ (19,035 )   $ (4,307 )
                   
Treasury Shares, at cost — Beginning of Year
   $ (70,588 )   $ (69,591 )   $ (40,098 )
 
Purchase of Treasury Shares
     —       (997 )     (29,493 )
                   
Treasury Shares, at cost — End of Year
   $ (70,588 )   $ (70,588 )   $ (69,591 )
                   
Accum. Other Comprehensive Loss — Beginning of Year
   $ (10,110 )   $ (10,559 )   $ (12,381 )
 
Settlement of Interest Rate Protection Agreements
     6,816       —       1,772  
 
Mark-to-Market of Interest Rate Protection Agreements
     106       251       (126 )
 
Amortization of Interest Rate Protection Agreements
     (512 )     198       176  
                   
Accum. Other Comprehensive Loss — End of Year
   $ (3,700 )   $ (10,110 )   $ (10,559 )
                   
Total Stockholders’ Equity at End of Year
   $ 845,494     $ 889,173     $ 882,326  
                   
The accompanying notes are an integral part of the financial statements.

F-6

Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
                               
        Restated   Restated
             
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2004   2003   2002
             
    (Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
                        
 
Net Income
   $ 110,606     $ 113,773     $ 120,208  
 
Income Allocated to Minority Interest
     14,028       16,335       16,367  
                   
 
Net Income Before Minority Interest
     124,634       130,108       136,575  
 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
                        
   
Depreciation
     82,757       73,902       67,525  
   
Amortization of Deferred Financing Costs
     1,931       1,764       1,925  
   
Other Amortization
     22,547       17,846       15,295  
   
Provision for Bad Debt
     (1,474 )     (160 )     —  
   
Loss From Early Retirement of Debt
     515       1,466       888  
   
Equity in Income of Joint Ventures, Net of Income Taxes
     (36,451 )     (539 )     (463 )
   
Distributions from Joint Ventures
     36,451       539       463  
   
Gain on Sale of Real Estate, Net of Income Taxes
     (91,242 )     (91,081 )     (69,892 )
   
Increase in Tenant Accounts Receivable and Prepaid Expenses and Other Assets, Net
     (46,030 )     (24,380 )     (13,701 )
   
Increase in Deferred Rent Receivable
     (6,771 )     (2,597 )     (1,947 )
   
Decrease in Accounts Payable and Accrued Expenses and Rents Received in Advance and Security Deposits
     (9,210 )     (6,454 )     (3,728 )
   
Decrease (Increase) in Restricted Cash
     —       2,742       (102 )
                   
     
Net Cash Provided by Operating Activities
     77,657       103,156       132,838  
                   
CASH FLOWS FROM INVESTING ACTIVITIES:
                        
 
Purchases of and Additions to Investment in Real Estate
     (485,393 )     (312,356 )     (337,399 )
 
Net Proceeds from Sales of Investments in Real Estate
     293,703       321,989       364,446  
 
Contributions to and Investments in Joint Ventures
     (5,422 )     (5,711 )     (8,207 )
 
Distributions from Joint Ventures
     14,074       2,859       2,260  
 
Repayment and Sale of Mortgage Loans Receivable
     111,049       75,886       20,502  
 
Decrease (Increase) in Restricted Cash
     81,981       (53,630 )     (8,252 )
                   
   
Net Cash Provided by Investing Activities
     9,992       29,037       33,350  
                   
CASH FLOWS FROM FINANCING ACTIVITIES:
                        
 
Net Proceeds from the Issuance of Common Stock
     86,121       14,799       15,895  
 
Proceeds from the Issuance of Preferred Stock
     200,000       —       —  
 
Preferred Stock Offering Costs
     (5,576 )     —       —  
 
Redemption of Preferred Stock
     (321,438 )     —       (100,000 )
 
Repurchase of Restricted Stock
     (3,747 )     (1,865 )     (2,037 )
 
Purchase of Treasury Shares
     —       (997 )     (29,493 )
 
Purchase of U.S. Government Securities
     —       —       (13,669 )
 
Proceeds from Maturity of U.S. Government Securities
     —       15,832       —  
 
Proceeds from Senior Unsecured Debt
     134,496       —       247,950  
 
Other Proceeds from Senior Unsecured Debt
     6,816       —       1,772  
 
Repayments of Senior Unsecured Debt
     —       —       (84,930 )
 
Dividends/ Distributions
     (130,220 )     (125,916 )     (125,875 )
 
Preferred Stock Dividends
     (13,256 )     (20,176 )     (23,432 )
 
Proceeds on Mortgage Loans Payable
     1,400       —       —  
 
Repayments on Mortgage Loans Payable
     (5,965 )     (38,529 )     (39,234 )
 
Proceeds from Unsecured Lines of Credit
     581,000       264,300       500,100  
 
Repayments on Unsecured Lines of Credit
     (609,400 )     (238,700 )     (512,300 )
 
Book Overdraft
     —       —       2,885  
 
Cost of Debt Issuance and Prepayment Fees
     (3,777 )     (120 )     (3,820 )
                   
   
Net Cash Used in Financing Activities
     (83,546 )     (131,372 )     (166,188 )
                   
Net Increase in Cash and Cash Equivalents
     4,103       821       —  
Cash and Cash Equivalents, Beginning of Period
     821       —       —  
                   
Cash and Cash Equivalents, End of Period
   $ 4,924     $ 821     $ —  
                   
The accompanying notes are an integral part of the financial statements.

F-7

Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands)
1. Organization and Formation of Company
      First Industrial Realty Trust, Inc. was organized in the state of Maryland on August 10, 1993. First Industrial Realty Trust, Inc. is a real estate investment trust (“REIT”) as defined in the Internal Revenue Code of 1986, as amended (the “Code”).
      First Industrial Realty Trust, Inc. and its subsidiaries (the “Company”) began operations on July 1, 1994. The Company’s operations are conducted primarily through First Industrial, L.P. (the “Operating Partnership”) of which the Company is the sole general partner. The Company is the sole stockholder of First Industrial Finance Corporation, First Industrial Pennsylvania Corporation, First Industrial Harrisburg Corporation, First Industrial Securities Corporation, First Industrial Mortgage Corporation, First Industrial Indianapolis Corporation, FI Development Services Corporation and First Industrial Florida Finance Corporation, which are the sole general partners of First Industrial Financing Partnership, L.P. (the “Financing Partnership”), First Industrial Pennsylvania, L.P. (the “Pennsylvania Partnership”), First Industrial Harrisburg, L.P. (the “Harrisburg Partnership”), First Industrial Securities, L.P. (the “Securities Partnership”), First Industrial Mortgage Partnership, L.P. (the “Mortgage Partnership”), First Industrial Indianapolis, L.P. (the “Indianapolis Partnership”), FI Development Services, L.P. and TK-SV, LTD., respectively, and the Operating Partnership is the sole limited partner. The Operating Partnership is also the sole member of limited liability companies and the sole stockholder of First Industrial Development Services, Inc. The operating data of the foregoing subsidiaries of the Company is consolidated with that of the Company as presented herein. The Company, through separate, wholly-owned limited liability companies of which the Operating Partnership is the sole member, also owns minority equity interests in, and provides asset and property management services to, two joint ventures which invest in industrial properties (the “September 1998 Joint Venture” and the “May 2003 Joint Venture”). The Company, through a separate, wholly-owned limited liability company of which the Operating Partnership is also the sole member, also owned a minority interest in and provided property management services to a third joint venture which invested in industrial properties (the “December 2001 Joint Venture”; together with the September 1998 Joint Venture and the May 2003 Joint Venture, the “Joint Ventures”). During the year ended December 31, 2004, the December 2001 Joint Venture sold all of its industrial properties. The operating data of the Joint Ventures is not consolidated with that of the Company as presented herein.
      As of December 31, 2004, the Company owned 881 industrial properties (inclusive of developments in progress) located in 23 states, containing an aggregate of approximately 69.3 million square feet (unaudited) of gross leasable area (“GLA”).
2. Basis of Presentation
      First Industrial Realty Trust, Inc. is the sole general partner of the Operating Partnership, with an approximate 86.9% and 85.6% ownership interest at December 31, 2004 and 2003, respectively. Minority interest at December 31, 2004 and 2003, represents the approximate 13.1% and 14.4%, respectively, aggregate partnership interest in the Operating Partnership held by the limited partners thereof.
      The consolidated financial statements of the Company at December 31, 2004 and 2003 and for each of the years ended December 31, 2004, 2003 and 2002 include the accounts and operating results of the Company and its subsidiaries. Such financial statements present the Company’s minority equity interests in the Joint Ventures under the equity method of accounting. All intercompany transactions have been eliminated in consolidation.

F-8

Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
3. Summary of Significant Accounting Policies
      In order to conform with generally accepted accounting principles, management, in preparation of the Company’s financial statements, is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of December 31, 2004 and 2003, and the reported amounts of revenues and expenses for each of the years ended December 31, 2004, 2003 and 2002. Actual results could differ from those estimates.
Cash and Cash Equivalents
      Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short term maturity of these investments.
Restricted Cash
      At December 31, 2004 and 2003, restricted cash includes gross proceeds from the sales of certain properties. These sales proceeds will be disbursed as the Company exchanges into properties under Section 1031 of the Internal Revenue Code. The carrying amount approximates fair value due to the short term maturity of these investments.
Investment in Real Estate and Depreciation
      Investment in Real Estate is carried at cost. The Company reviews its properties on a quarterly basis for impairment and provides a provision if impairments are found. To determine if an impairment may exist, the Company reviews its properties and identifies those that have had either an event of change or event of circumstances warranting further assessment of recoverability (such as a decrease in occupancy). If further assessment of recoverability is needed, the Company estimates the future net cash flows expected to result from the use of the property and its eventual disposition, on an individual property basis. If the sum of the expected future net cash flows (undiscounted and without interest charges) is less than the carrying amount of the property on an individual property basis, the Company will recognize an impairment loss based upon the estimated fair value of such property. For properties management considers held for sale, the Company ceases depreciating the properties and values the properties at the lower of depreciated cost or fair value, less costs to dispose. If circumstances arise that were previously considered unlikely, and, as a result, the Company decides not to sell a property previously classified as held for sale, the Company will reclassify such property as held and used. Such property is measured at the lower of its carrying amount (adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used) or fair value at the date of the subsequent decision not to sell. The Company determines fair value of properties that are held for use by discounting the future expected cash flows of the properties. To calculate the fair value of properties held for sale, the Company deducts from the contract price of the property the estimated costs to close the sale. The Company classifies properties as held for sale when the Company has an executed contract to sell.

F-9

Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      Interest costs, real estate taxes, compensation costs of development personnel and other directly related costs incurred during construction periods are capitalized and depreciated commencing with the date the property is substantially completed. Upon substantial completion, the Company reclassifies construction in progress to building, tenant improvements and leasing commissions. Such costs begin to be capitalized to the development projects from the point the Company is undergoing necessary activities to get the development ready for its intended use and ceases when the development projects are substantially completed and held available for occupancy. Depreciation expense is computed using the straight-line method based on the following useful lives:
         
    Years
     
Buildings and Improvements
     20 to 50  
Land Improvements
     15  
Furniture, Fixtures and Equipment
     5 to 10  
      Construction expenditures for tenant improvements, leasehold improvements and leasing commissions (inclusive of compensation costs of personnel attributable to leasing) are capitalized and amortized over the terms of each specific lease. Capitalized compensation costs of personnel attributable to leasing relate to time directly attributable to originating leases with independent third parties that result directly from and are essential to originating those leases and would not have been incurred had these leasing transactions not occurred. Repairs and maintenance are charged to expense when incurred. Expenditures for improvements are capitalized.
      The Company accounts for all acquisitions entered into subsequent to June 30, 2001 in accordance with Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standard No. 141, “Business Combinations” (“FAS 141”). Upon acquisition of a property, the Company allocates the purchase price of the property based upon the fair value of the assets acquired, which generally consist of land, buildings, tenant improvements, leasing commissions and intangible assets including in-place leases and above market and below market leases. The Company allocates the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates over the remaining lease term.
      The purchase price is further allocated to in-place lease values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. Acquired above and below market leases are amortized over the remaining non-cancelable terms of the respective leases as an adjustment to rental revenue on the Company’s consolidated statements of operations and comprehensive income. The value of in-place lease intangibles, which is included as a component of Other Assets, is amortized to expense over the remaining lease term and expected renewal periods of the respective lease. If a tenant terminates its lease early, the unamortized portion of the tenant improvements, leasing commissions, above and below market leases and the in-place lease value is immediately charged to expense.
Deferred Financing Costs
      Deferred financing costs include fees and costs incurred to obtain long-term financing. These fees and costs are being amortized over the terms of the respective loans. Accumulated amortization of deferred financing costs was $10,873 and $8,948 at December 31, 2004 and 2003, respectively. Unamortized deferred financing costs are written-off when debt is retired before the maturity date.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
Investments in Joint Ventures
      Investments in Joint Ventures represents the Company’s minority equity interests in the Joint Ventures. The Company accounts for its investments in Joint Ventures under the equity method of accounting, as the Company does not have operational control or a majority voting interest. Under the equity method of accounting, the Company’s share of earnings or losses of the Joint Ventures is reflected in income as earned and contributions or distributions increase or decrease, respectively, the Company’s Investments in Joint Ventures as paid or received, respectively. Differences between the Company’s carrying value of its investments in joint ventures and the Company’s underlying equity of such joint ventures are amortized over the respective lives of the underlying assets, as applicable.
Employee Benefit Plans
      At December 31, 2004, the Company has three stock incentive employee compensation plans, which are described more fully in Note 13. Prior to January 1, 2003, the Company accounted for its stock incentive plans under the recognition and measurement principles of Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”). Under APB 25, compensation expense is not recognized for options issued in which the strike price is equal to the fair value of the Company’s stock on the date of grant. Certain options issued in 2000 were issued with a strike price less than the fair value of the Company’s stock on the date of grant. Compensation expense is being recognized for the intrinsic value of these options determined at the date of grant over the vesting period. On January 1, 2003, the Company adopted the fair value recognition provisions of the FASB Statement of Financial Accounting Standards No. 123, “Accounting for Stock Based Compensation” (“FAS 123”), as amended by FASB Statement of Financial Accounting Standards No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure”. Beginning on January 1, 2003, the Company is applying the fair value recognition provisions of FAS 123 prospectively to all employee option awards granted after December 31, 2002. The Company has not awarded options to employees or directors of the Company during the years ended December 31,2004 and 2003, and therefore no stock-based employee compensation expense, except for expense related to restricted stock, is included in net income available to common stockholders related to the fair value recognition provisions of FAS 123.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(In thousands except per share data)
      Had compensation expense for the Company’s Stock Incentive Plans been determined based upon the fair value at the grant date for awards under the Stock Incentive Plans consistent with the methodology prescribed under FASB Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”, as amended by FAS 148, net income and earnings per share would have been the pro forma amounts indicated in the table below:
                           
    For the Year Ended
     
    2004   2003   2002
             
Net Income Available to Common Stockholders —
as reported
   $ 88,159     $ 93,597     $ 93,069  
Add: Stock-Based Employee Compensation Expense Included in Net Income Available to Common Stockholders, Net of Minority Interest — as reported
     —       46       201  
Less: Total Stock-Based Employee Compensation Expense, Net of Minority Interest — Determined Under the Fair Value Method
     (362 )     (1,149 )     (980 )
                   
Net Income Available to Common Stockholders —
pro forma
   $ 87,797     $ 92,494     $ 92,290  
                   
Net Income Available to Common Stockholders per Share —
as reported — Basic
   $ 2.17     $ 2.43     $ 2.39  
Net Income Available to Common Stockholders per Share —
pro forma — Basic
   $ 2.16     $ 2.40     $ 2.37  
Net Income Available to Common Stockholders per Share —
as reported — Diluted
   $ 2.16     $ 2.42     $ 2.38  
Net Income Available to Common Stockholders per Share —
pro forma — Diluted
   $ 2.15     $ 2.39     $ 2.36  
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:
                        
 
Expected dividend yield
     N/A       N/A       8.28 %
 
Expected stock price volatility
     N/A       N/A       20.94 %
 
Risk-free interest rate
     N/A       N/A       3.58 %
 
Expected life of options
     N/A       N/A       3.00  
      The weighted average fair value of options granted during 2002 is $1.97 per option. The Company did not issue any options in 2004 and 2003.
Revenue Recognition
      Rental income is recognized on a straight-line method under which contractual rent increases are recognized evenly over the lease term. Tenant recovery income includes payments from tenants for taxes, insurance and other property operating expenses and is recognized as revenue in the same period the related expenses are incurred by the Company.
      Revenue is recognized on payments received from tenants for early lease terminations after the Company determines that all the necessary criteria have been met in accordance with FASB Statement of Financial Accounting Standards No. 13, “Accounting for Leases” (“FAS 13”).

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      Interest income on mortgage loans receivable is recognized based on the accrual method unless a significant uncertainty of collection exists. If a significant uncertainty exists, interest income is recognized as collected.
      The Company provides an allowance for doubtful accounts against the portion of tenant accounts receivable which is estimated to be uncollectible. Accounts receivable in the consolidated balance sheets are shown net of an allowance for doubtful accounts of $416 and $1,890 as of December 31, 2004 and December 31, 2003, respectively. For accounts receivable the Company deems uncollectible, the Company uses the direct write-off method.
Gain on Sale of Real Estate
      Gain on sale of real estate is recognized using the full accrual method, when appropriate. Gains relating to transactions which do not meet the full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met or by using the installment or deposit methods of profit recognition, as appropriate in the circumstances. As the assets are sold, their costs and related accumulated depreciation are removed from the accounts with resulting gains or losses reflected in net income or loss. Estimated future costs to be incurred by the Company after completion of each sale are included in the determination of the gains on sales.
Income Taxes
      The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Code. As a result, the Company generally is not subject to federal income taxation to the extent of the income which it distributes if it satisfies the requirements set forth in Section 856 of the Code (pertaining to its organization and types of income and assets) necessary to maintain its status as a REIT, it distributes annually at least 90% of its REIT taxable income, as defined in the Code, to its stockholders and it satisfies certain other requirements. Accordingly, no provision has been made for state or federal income taxes in the accompanying consolidated financial statements except for activities conducted in its taxable REIT subsidiary, First Industrial Development Services, Inc. which has been accounted for under FASB Statement of Financial Standards No. 109, “Accounting for Income Taxes”(“FAS 109”). In accordance with FAS 109, the total benefit/expense has been separately allocated to income from continuing operations, income from discontinued operations and gain on sale of real estate.
      The Company and certain of its subsidiaries are subject to certain state and local income, excise and franchise taxes. The provision for such state and local taxes has been reflected in general and administrative expense in the consolidated statements of operations and comprehensive income and has not been separately stated due to its insignificance.
Earnings Per Common Share
      Net income per weighted average share — basic is based on the weighted average common shares outstanding (excluding restricted stock that has not yet vested). Net income per weighted average share — diluted is based on the weighted average common shares outstanding (excluding restricted stock that has not yet vested) plus the dilutive effect of in-the-money employee stock options and restricted stock. See Note 10 for further disclosure about earnings per share.
Fair Value of Financial Instruments
      The Company’s financial instruments include short-term investments, tenant accounts receivable, net, mortgage notes receivable, accounts payable, other accrued expenses, mortgage loans payable, unsecured

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
line of credit, senior unsecured debt and the Put Option (defined hereinafter) issued in conjunction with an initial offering of certain unsecured debt.
      The fair values of the short-term investments, tenant accounts receivable, net, mortgage notes receivable, accounts payable and other accrued expenses were not materially different from their carrying or contract values. See Note 5 for the fair values of the mortgage loans payable, unsecured line of credit, senior unsecured debt and the Put Option (defined hereinafter) issued in conjunction with an initial offering of certain unsecured debt.
Derivative Financial Instruments
      Historically, the Company has used interest rate protection agreements (the “Agreements”) to fix the interest rate on anticipated offerings of senior unsecured debt or convert floating rate debt to fixed rate debt. Receipts or payments that result from the settlement of Agreements used to fix the interest rate on anticipated offerings of senior unsecured debt are amortized over the life of the senior unsecured debt. Receipts or payments resulting from Agreements used to convert floating rate debt to fixed rate debt are recognized as a component of interest expense. Agreements which qualify for hedge accounting are marked-to-market and any gain or loss is recognized in other comprehensive income (shareholders’ equity). Any agreements which no longer qualify for hedge accounting are marked-to-market and any gain or loss is recognized in net income immediately. The credit risks associated with the Agreements are controlled through the evaluation and monitoring of the creditworthiness of the counterparty. In the event that the counterparty fails to meet the terms of the Agreements, the Company’s exposure is limited to the current value of the interest rate differential, not the notional amount, and the Company’s carrying value of the Agreements on the balance sheet. See Note 5 for more information on the Agreements.
Discontinued Operations
      On January 1, 2002, the Company adopted the FASB Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”). FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Company as a result of the disposal transaction and (b) the Company will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also requires prior period results of operations for these properties to be restated and presented in discontinued operations in prior consolidated statements of operations.
Segment Reporting
      Management views the Company as a single segment based on its method of internal reporting.
Reclassification
      Certain 2003 and 2002 items have been reclassified to conform to the 2004 presentation.
Recent Accounting Pronouncements
      In December 2004, the FASB issued Statement of Financial Accounting Standard No. 123 (Revised 2004), “Share-Based Payment” (“FAS 123(R)”). FAS 123(R) is a revision of FAS 123, and also supercedes APB 25, and its related implementation guidance. FAS 123(R) requires compensation cost to be measured at the fair value of the stock option at the date of grant, eliminates the alternative to use the

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
intrinsic value method of accounting prescribed in APB 25, and clarifies and expands the guidance of FAS 123 in several areas. FAS 123(R) is effective as of the beginning of the first interim or annual reporting period that begins after June 15, 2005. FAS 123(R) applies to all awards granted, modified, repurchased, or cancelled after the effective date and the cumulative effect of initially applying FAS 123(R), if any, is to be recognized as of the required effective date. The Company will adopt FAS 123(R) commencing as of July 1, 2005 using the modified prospective application method. The Company does not expect the requirements of FAS 123(R) to have a material impact on its results of operations, financial position or liquidity.
      The Emerging Issues Task Force released Issue 03-13, “Applying the Conditions in Paragraph 42 of FASB Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, in Determining Whether to Report Discontinued Operations” (“Issue 03-13”). Issue 03-13 establishes an approach for evaluating whether the criteria in paragraph 42 of FAS 144 have been met for purposes of classifying the results of operations of a component of an entity that either has been disposed of or is classified as held for sale as discontinued operations. The effective date for components classified as held for sale or disposed of is in fiscal periods beginning after December 15, 2004. The Company will adopt Issue 03-13 beginning January 1, 2005; Issue 03-13 will have no impact to net income.
4. Investments in Joint Ventures
      On September 28, 1998, the Company, through a wholly-owned limited liability company in which the Operating Partnership is the sole member, entered into a joint venture arrangement (the “September 1998 Joint Venture”) with an institutional investor to invest in industrial properties. The Company, through wholly-owned limited liability companies of the Operating Partnership, owns a ten percent equity interest in the September 1998 Joint Venture and provides property and asset management services to the September 1998 Joint Venture. On or after October 2000, under certain circumstances, the Company has the right to purchase all of the properties owned by the September 1998 Joint Venture at a price to be determined in the future. The Company has not exercised this right.
      On September 2, 1999, the Company, through a wholly-owned limited liability company in which the Operating Partnership is the sole member, entered into a joint venture arrangement (the “September 1999 Joint Venture”) with an institutional investor to invest in industrial properties. The Company, through wholly-owned limited liability companies of the Operating Partnership, owned a ten percent equity interest in the September 1999 Joint Venture and provided property and asset management services to the September 1999 Joint Venture. During September 2003, the September 1999 Joint Venture sold its remaining property. In conjunction with this final property sale, the final distribution was made to the partners.
      On December 28, 2001, the Company, through a wholly-owned limited liability company in which the Operating Partnership is the sole member, entered into a joint venture arrangement (the “December 2001 Joint Venture”) with an institutional investor to invest in industrial properties. The Company, through wholly-owned limited liability companies of the Operating Partnership, owned a 15% equity interest in the December 2001 Joint Venture and provided property management services to the December 2001 Joint Venture. On August 27, 2004, the December 2001 Joint Venture sold all 36 industrial properties, containing approximately 6.2 million square feet (unaudited) of GLA, to a third party for gross proceeds of approximately $349,750. Due to certain provisions in the operating agreement, the Company received distributions in excess of it’s 15% equity interest in the December 2001 Joint Venture. Due to the sale of all 36 industrial properties, the Company recognized, in aggregate, approximately $34,767 due to the Company’s 15% share of gain from the sale of the December 2001 Joint Venture’s properties and

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
distributions received from the December 2001 Joint Venture in excess of the Company’s 15% equity interest. This amount is included in Equity in Income of Joint Ventures.
      As a result of the sale on August 27, 2004 to a third party, the Company recognized the unamortized portion of the previously deferred gain, net of tax, from the original sales to the December 2001 Joint Venture, of approximately $4,986. These deferred gains are included in Equity in Income of Joint Ventures.
      As of December 31, 2004, the September 1998 Joint Venture owned 41 industrial properties comprising approximately 1.3 million square feet (unaudited) of GLA and the May 2003 Joint Venture owned five industrial properties comprising approximately 2.1 million square feet (unaudited) of GLA. During the year ended December 31, 2004, the Company acquired one industrial property comprising approximately .1 million square feet of GLA from the September 1998 Joint Venture. The purchase price of the acquisition totaled approximately $525, excluding costs incurred in conjunction with the acquisition of the industrial property. Also, during the year ended December 31, 2004, the Company sold one property to the May 2003 Joint Venture comprising approximately .2 million square feet (unaudited) of GLA for a purchase price of $15,486 and earned acquisition fees on the other four properties acquired from third parties by the May 2003 Joint Venture.
      The Company deferred 15% of the gain from the sale and acquisition fees, which is equal to the Company’s economic interest in the May 2003 Joint Venture. The 15% deferral reduced the Company’s investment in the joint venture and is amortized into income over the life of the properties, generally 40 to 45 years. If the May 2003 Joint Venture sells any of the five properties to a third party, the Company will recognize the unamortized portion of the deferred gain and fees as gain on sale of real estate or other income. If the Company repurchases any of the five properties, the 15% deferral will be netted against the basis of the property purchased (which reduces the basis of the property). At December 31, 2004 and 2003, the Company has a receivable from the Joint Ventures of $1,261 and $2,140, respectively, which mainly relate to borrowings made, as allowed by the partnership agreement, by the September 1998 Joint Venture from the Company.
      During the years ended December 2004, 2003 and 2002, the Company invested the following amounts in its Joint Ventures as well as received distributions and recognized fees from acquisition, disposition, property management and asset management services in the following amounts:
                         
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2004   2003   2002
             
Contributions
   $ 3,676     $ 5,558     $ 8,207  
Distributions
   $ 50,525     $ 3,398     $ 2,723  
Fees
   $ 2,689     $ 2,173     $ 1,863  

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      The combined summarized financial information of the investments in joint ventures is as follows:
                   
    December 31,   December 31,
    2004   2003
         
Condensed Combined Balance Sheets
                
Gross Real Estate Investment
   $ 120,633     $ 305,029  
Less: Accumulated Depreciation
     (9,308 )     (19,565 )
             
 
Net Real Estate
     111,325       285,464  
Other Assets
     16,637       51,622  
             
 
Total Assets
   $ 127,962     $ 337,086  
             
Long Term Debt
   $ 88,398     $ 217,413  
Other Liabilities
     5,711       6,527  
Equity
     33,853       113,146  
             
 
Total Liabilities and Equity
   $ 127,962     $ 337,086  
             
Company’s share of Equity
   $ 4,580     $ 18,205  
Basis Differentials(1)
     909       (5,019 )
             
Carrying Value of the Company’s investments in joint ventures
   $ 5,489     $ 13,186  
             
 
(1)  This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level. Basis differentials are primarily comprised of gain deferrals related to properties the Company sold to the Joint Ventures and certain acquisition costs which are not reflected at the joint venture level.
                           
    Year Ended December 31,
     
    2004   2003   2002
             
Condensed Combined Statements of Operations
                        
Total Revenues
     32,353       35,603       34,635  
Expenses
Operating and Other
     11,593       9,725       14,482  
 
Interest
     7,712       7,353       10,554  
 
Depreciation and Amortization
     12,540       17,585       10,343  
                   
Total Expenses
     31,845       34,663       35,379  
                   
Gain (Loss) on Sale of Real Estate
     81,431       (2,069 )     8,231  
                   
Net Income (Loss)
     81,939       (1,129 )     7,487  
                   
Company’s share of Net Income
     36,451       539       463  
                   
5. Mortgage Loans Payable, Net, Senior Unsecured Debt, Net and Unsecured Lines of Credit
Mortgage Loans Payable, Net
      On December 29, 1995, the Company, through an entity in which the Operating Partnership is the sole limited partner and a wholly-owned subsidiary of the Company is the general partner (the “Mortgage Partnership”), entered into a $40,200 mortgage loan (the “1995 Mortgage Loan”). On January 13, 2003,

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
the Company, through the Mortgage Partnership, paid off and retired the 1995 Mortgage Loan. As this pay off and retirement was prior to the stated maturity date of the 1995 Mortgage Loan, the Company wrote off unamortized deferred financing costs in the amount of approximately $1,466.
      On March 20, 1996, the Company, through the Operating Partnership, assumed a $6,424 mortgage loan (the “Assumed Loan I”) that is collateralized by 12 properties in Indianapolis, Indiana. The Assumed Loan I bears interest at a fixed rate of 9.25% and provides for monthly principal and interest payments based on a 16.75-year amortization schedule. The Assumed Loan I matures on September 1, 2009. The Assumed Loan I may be prepaid only after December 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium.
      On March 20, 1996, the Company, through the Operating Partnership, assumed a $2,993 mortgage loan (the “Assumed Loan II”) that is collateralized by one property in Indianapolis, Indiana. The Assumed Loan II bears interest at a fixed rate of 9.25% and provides for monthly principal and interest payments based on a 16.75-year amortization schedule. The Assumed Loan II matures on January 1, 2013. The Assumed Loan may be prepaid only after December 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium.
      On April 16, 1998, the Company, through the Operating Partnership, assumed a mortgage loan in the principal amount of $2,525 (the “Acquisition Mortgage Loan IV”). The Acquisition Mortgage Loan IV is collateralized by one property in Baltimore, Maryland, bears interest at a fixed rate of 8.95% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan IV matures on October 1, 2006. The Acquisition Mortgage Loan IV may be prepaid only after October 2001 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium.
      On July 16, 1998, the Company, through TK-SV, LTD., assumed a mortgage loan in the principal amount of $2,566 (the “Acquisition Mortgage Loan V”). The Acquisition Mortgage Loan V is collateralized by one property in Tampa, Florida, bears interest at a fixed rate of 9.01% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan V matures on September 1, 2006. In conjunction with the assumption of the Acquisition Mortgage Loan V, the Company recorded a premium in the amount of $315 which will be amortized over the remaining life of the Acquisition Mortgage Loan V as an adjustment to interest expense. Including the impact of the premium recorded, the Company’s effective interest rate on the Acquisition Mortgage Loan V is 6.96%. The Acquisition Mortgage Loan V may be prepaid only after August 2002 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium.
      On April 1, 2002, the Company, through the Operating Partnership, assumed a mortgage loan in the principal amount of $5,814 (the “Acquisition Mortgage Loan VIII”). The Acquisition Mortgage Loan VIII is collateralized by one property in Rancho Dominguez, California, bears interest at a fixed rate of 8.26% and provides for monthly principal and interest payments based on a 22-year amortization schedule. The Acquisition Mortgage Loan VIII matures on December 1, 2019. The Acquisition Mortgage Loan VIII may be prepaid only after November 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium.
      On April 1, 2002, the Company, through the Operating Partnership, assumed a mortgage loan in the principal amount of $6,030 (the “Acquisition Mortgage Loan IX”). The Acquisition Mortgage Loan IX is collateralized by one property in Bloomington, Minnesota, bears interest at a fixed rate of 8.26% and provides for monthly principal and interest payments based on a 22-year amortization schedule. The Acquisition Mortgage Loan IX matures on December 1, 2019. The Acquisition Mortgage Loan IX may be prepaid only after November 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      On May 1, 2003, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $14,157 (the “Acquisition Mortgage Loan X”). The Acquisition Mortgage Loan X is collateralized by one property in Hagerstown, Maryland, bears interest at a fixed rate of 8.25% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan X matures on December 1, 2010. In conjunction with the assumption of the Acquisition Mortgage Loan X, the Company recorded a premium in the amount of $2,927 which will be amortized over the remaining life of the Acquisition Mortgage Loan X as an adjustment to interest expense. Including the impact of the premium recorded, the Company’s effective interest rate on the Acquisition Mortgage Loan X is 5.00%. The Acquisition Mortgage Loan X may be prepaid only after November 2004 in exchange for the greater of a 3% prepayment fee or yield maintenance premium.
      On September 12, 2003, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $4,269 (the “Acquisition Mortgage Loan XI”). The Acquisition Mortgage Loan XI was collateralized by one property in Downers Grove, Illinois, bore interest at a fixed rate of 7.61% and provided for monthly principal and interest payments based on a 30-year amortization schedule. In conjunction with the assumption of the Acquisition Mortgage Loan XI, the Company recorded a premium in the amount of $621 which was being amortized over the remaining life of the Acquisition Mortgage Loan XI as an adjustment to interest expense. The Acquisition Mortgage Loan XI may be prepaid only after June 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium. On December 3, 2004, the Company paid off and retired the Acquisition Mortgage Loan XI. As this pay off and retirement was prior to the stated maturity date of the Acquisition Mortgage Loan XI, the Company wrote off unamortized deferred financing costs and paid a prepayment penalty in the aggregate amount of approximately $515.
      On September 12, 2003, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $2,325 (the “Acquisition Mortgage Loan XII”). The Acquisition Mortgage Loan XII is collateralized by one property in Indianapolis, Indiana, bears interest at a fixed rate of 7.54% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan XII matures on January 1, 2012. In conjunction with the assumption of the Acquisition Mortgage Loan XII, the Company recorded a premium in the amount of $317 which will be amortized over the remaining life of the Acquisition Mortgage Loan XII as an adjustment to interest expense. Including the impact of the premium recorded, the Company’s effective interest rate on the Acquisition Mortgage Loan XII is 5.51%. The Acquisition Mortgage Loan XII may be prepaid only after February 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium.
      On September 30, 2004, the Company assumed a mortgage loan in the amount of $12,057 and borrowed an additional $1,400 (collectively referred to as the “Acquisition Mortgage Loan XIII”). The Acquisition Mortgage Loan XIII is collateralized by three properties in Phoenix, Arizona, bears interest at a fixed rate of 5.60% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan XIII matures on November 10, 2012. In conjunction with the assumption of the Acquisition Mortgage Loan XIII, the Company recorded a premium in the amount of $467 which will be amortized over the remaining life of the Acquisition Mortgage Loan XIII as an adjustment to interest expense. Including the impact of the premium recorded, the Company’s effective interest rate on the Acquisition Mortgage Loan XIII is 5.02%. The Acquisition Mortgage Loan XIII may be prepaid in exchange for the yield maintenance premium.
      On December 21, 2004, the Company assumed a mortgage loan in the amount of $6,187 (the “Acquisition Mortgage Loan XIV”). The Acquisition Mortgage Loan XIV is collateralized by six properties in Tampa, Florida, bears interest at a fixed rate of 6.94% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan XIV matures

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
on July 1, 2009. In conjunction with the assumption of the Acquisition Mortgage Loan XIV, the Company recorded a premium in the amount of $553 which will be amortized over the remaining life of the Acquisition Mortgage Loan XIV as an adjustment to interest expense. Including the impact of the premium recorded, the Company’s effective interest rate on the Acquisition Mortgage Loan XIV is 4.58%. The Acquisition Mortgage Loan XIV may be prepaid in exchange for the greater of a 1% prepayment fee or yield maintenance premium.
Senior Unsecured Debt, Net
      On May 13, 1997, the Company, through the Operating Partnership, issued $150,000 of senior unsecured debt which matures on May 15, 2007 and bears a coupon interest rate of 7.60% (the “2007 Notes”). The issue price of the 2007 Notes was 99.965%. Interest is paid semi-annually in arrears on May 15 and November 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2007 Notes prior to issuance. The Company settled the interest rate protection agreement for a payment of approximately $41, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2007 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2007 Notes is 7.61%. The 2007 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage.
      On May 13, 1997, the Company, through the Operating Partnership, issued $100,000 of senior unsecured debt which matures on May 15, 2027, and bears a coupon interest rate of 7.15% (the “2027 Notes”). The issue price of the 2027 Notes was 99.854%. The 2027 Notes were redeemable, at the option of the holders thereof, on May 15, 2002. The Company received redemption notices from holders representing $84,930 of the 2027 Notes outstanding. On May 15, 2002, the Company, through the Operating Partnership, paid off and retired $84,930 of the 2027 Notes. Due to the partial payoff of the 2027 Notes, the Company has recorded a loss from the early retirement of debt in 2002 of approximately $888 comprised of the amount paid above the carrying amount of the 2027 notes, the write-off of the pro rata unamortized deferred financing costs and legal costs. Interest is paid semi-annually in arrears on May 15 and November 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2027 Notes prior to issuance. The Company settled the interest rate protection agreement for approximately $597 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2027 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2027 Notes is 7.11%. The 2027 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage.
      On May 22, 1997, the Company, through the Operating Partnership, issued $100,000 of senior unsecured debt which matured on May 15, 2011 and bore a coupon interest rate of 7.375% (the “2011 PATS”). The issue price of the 2011 PATS was 99.348%. The Company received approximately $1,781 from the holder of the 2011 PATS as consideration for the put option. The Company amortized the put option proceeds over the life of the put option as an adjustment to interest expense. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2011 PATS. The Company amortized the settlement amount of the interest rate protection agreement over the life of the 2011 PATS. Including the impact of the offering discount, the proceeds from the put option and the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2011 PATS was 7.26%. On May 17, 2004, the Company exchanged the 2014 Notes (hereinafter

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
defined) for the 2011 PATS (hereinafter defined) and net cash in the amount of $8,877. The Company retired the 2011 PATS.
      On November 20, 1997, the Company, through the Operating Partnership, issued $50,000 of senior unsecured debt which matures on November 21, 2005 and bears a coupon interest rate of 6.90%, which is the effective interest rate (the “2005 Notes”). The issue price of the 2005 Notes was 100%. Interest is paid semi-annually in arrears on May 21 and November 21. The 2005 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage.
      On December 8, 1997, the Company, through the Operating Partnership, issued $150,000 of senior unsecured debt which matures on December 1, 2006 and bears a coupon interest rate of 7.00% (the “2006 Notes”). The issue price of the 2006 Notes was 100%. Interest is paid semi-annually in arrears on June 1 and December 1. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2006 Notes prior to issuance. The Company settled the interest rate protection agreement for a payment of approximately $2,162, which is included in other comprehensive income. The settlement amount of the interest rate protection agreement is being amortized over the life of the 2006 Notes as an adjustment to interest expense. Including the impact of the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2006 Notes is 7.22%. The 2006 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage.
      On December 8, 1997, the Company, through the Operating Partnership, issued $100,000 of senior unsecured debt which matures on December 1, 2017 and bears a coupon interest rate of 7.50% (the “2017 Notes”). The issue price of the 2017 Notes was 99.808%. Interest is paid semi-annually in arrears on June 1 and December 1. The Operating Partnership is amortizing the debt issue discount over the life of the 2017 Notes as an adjustment to interest expense. Including the impact of the offering discount, the Company’s effective interest rate on the 2017 Notes is 7.52%. The 2017 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage.
      On July 14, 1998, the Company, through the Operating Partnership, issued $200,000 of senior unsecured debt which matures on July 15, 2028 and bears a coupon interest rate of 7.60% (the “2028 Notes”). The issue price of the 2028 Notes was 99.882%. Interest is paid semi-annually in arrears on January 15 and July 15. The Company also entered into interest rate protection agreements which were used to fix the interest rate on the 2028 Notes prior to issuance. The Company settled the interest rate protection agreements for a payment of approximately $11,504, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2028 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2028 Notes is 8.13%. The 2028 Notes contain certain covenants, including limitation on incurrence of debt and debt service coverage. Approximately $50,000 of the 2028 Notes was purchased, through a broker/ dealer, by an entity in which a Director of the Company owns less than a two percent interest.
      On March 19, 2001, the Company, through the Operating Partnership, issued $200,000 of senior unsecured debt which matures on March 15, 2011 and bears a coupon interest rate of 7.375% (the “2011 Notes”). The issue price of the 2011 Notes was 99.695%. Interest is paid semi-annually in arrears on September 15 and March 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2011 Notes prior to issuance, which it designated as a cash flow hedge. The Company settled the interest rate protection agreement for approximately $371 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2011 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
the interest rate protection agreement, the Company’s effective interest rate on the 2011 Notes is 7.39%. The 2011 Notes contain certain covenants, including limitations on incurrence of debt and debt service coverage.
      On April 15, 2002, the Company, through the Operating Partnership, issued $200,000 of senior unsecured debt which matures on April 15, 2012 and bears a coupon interest rate of 6.875% (the “2012 Notes”). The issue price of the 2012 Notes was 99.310%. Interest is paid semi-annually in arrears on April 15 and October 15. The Company also entered into interest rate protection agreements which were used to fix the interest rate on the 2012 Notes prior to issuance. The Company settled the interest rate protection agreements for approximately $1,772 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2012 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2012 Notes is 6.85%. The 2012 Notes contain certain covenants, including limitations on incurrence of debt and debt service coverage.
      On April 15, 2002, the Company, through the Operating Partnership, issued $50,000 of senior unsecured debt which matures on April 15, 2032 and bears a coupon interest rate of 7.75% (the “2032 Notes”). The issue price of the 2032 Notes was 98.660%. Interest is paid semi-annually in arrears on April 15 and October 15. The debt issue discount is being amortized over the life of the 2032 Notes as an adjustment to interest expense. Including the impact of the offering discount, the Company’s effective interest rate on the 2032 Notes is 7.87%. The 2032 Notes contain certain covenants including limitations on incurrence of debt and debt service coverage.
      On May 17, 2004, the Company, through the Operating Partnership, exchanged $125,000 of senior unsecured debt which matures on June 1, 2014, and bears a coupon interest rate of 6.42% (the “2014 Notes”) for the 2011 PATS and net cash in the amount of $8,877. The issue price of the 2014 Notes was 99.123%. Interest is paid semi-annually in arrears on June 1 and December 1. The debt issue discount of the 2014 Notes is being amortized over the life of the 2014 Notes as an adjustment to interest expense. This exchange is being accounted for under EITF 96-19, “Debtor’s Accounting for a Modification or Exchange of Debt Instruments” (“EITF 96-19”). Under EITF 96-19, if the 2011 PATS and the 2014 Notes are not substantially different, the difference between the fair value of the 2011 PATS and the carrying value of the 2011 PATS, as well as the unamortized deferred financing costs of the 2011 PATS on the date of the exchange, is deferred and amortized over the life of the 2014 Notes. The Company is amortizing this amount over the life of the 2014 Notes. Including the impact of the offering discount, the Company’s effective interest rate on the 2014 Notes is 6.54%. The 2014 Notes contain certain covenants, including limitations on incurrence of debt and debt service coverage.
      On June 14, 2004, the Company, through the Operating Partnership, issued $125,000 of senior unsecured debt which matures on June 15, 2009 and bears a coupon interest rate of 5.25% (the “2009 Notes”). The issue price of the 2009 Notes was 99.826%. Interest is paid semi-annually in arrears on June 15 and December 15. The Company also entered into interest rate protection agreements which were used to fix the interest rate on the 2009 Notes prior to issuance. The Company settled the interest rate protection agreements for approximately $6,657 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2009 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Company’s effective interest rate on the 2009 Notes is 4.10%. The 2009 Notes contain certain covenants, including limitations on incurrence of debt and debt service coverage.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
Unsecured Lines of Credit
      In December 1997, the Company entered into a $300,000 unsecured revolving credit facility (the “1997 Unsecured Line of Credit”) which bore interest at LIBOR plus .80% or a “Corporate Base Rate” at the Company’s election, and provided for interest only payments until maturity. In June 2000, the Company amended the 1997 Unsecured Line of Credit which extended the maturity date to June 30, 2003 and included the right, subject to certain conditions, to increase the aggregate commitment up to $400,000 (the “2000 Unsecured Line of Credit”). On September 27, 2002, the Company amended and restated the 2000 Unsecured Line of Credit (the “2002 Unsecured Line of Credit”). On June 11, 2004, the Company, through the Operating Partnership, amended and restated the 2002 Unsecured Line of Credit (the “Unsecured Line of Credit”). The Unsecured Line of Credit matures on September 28, 2007 and bears interest at a floating rate of LIBOR plus .70%, or the Prime Rate, at the Company’s election. The net unamortized deferred financing costs related to the 2000 Unsecured Line of Credit and any additional deferred financing costs incurred amending the 2002 Unsecured Line of Credit are being amortized over the life of the Unsecured Line of Credit in accordance with Emerging Issues Task Force Issue 98-14, “Debtor’s Accounting for Changes in Line-of-Credit or Revolving-Debt Arrangements”. The Unsecured Line of Credit contains certain financial covenants relating to debt service coverage, market value net worth, dividend payout ratio and total funded indebtedness.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      The following table discloses certain information regarding the Company’s mortgage loans, senior unsecured debt and unsecured line of credit:
                                                 
    Outstanding Balance at   Accrued Interest Payable at        
            Interest Rate at    
    December 31,   December 31,   December 31,   December 31,   December 31,   Maturity
    2004   2003   2004   2003   2004   Date
                         
Mortgage Loans Payable, Net
                                                
Assumed Loan I
     2,874       3,301       22       —       9.250%       09/01/09  
Assumed Loan II
     1,995       2,141       15       —       9.250%       01/01/13  
Acquisition Mortgage Loan IV
     2,037       2,130       15       16       8.950%       10/01/06  
Acquisition Mortgage Loan V
     2,456 (1)     2,529 (1)     18       18       9.010%       09/01/06  
Acquisition Mortgage Loan VIII
     5,461       5,603       38       39       8.260%       12/01/19  
Acquisition Mortgage Loan IX
     5,664       5,811       39       40       8.260%       12/01/19  
Acquisition Mortgage Loan X
     16,251 (1)     16,754 (1)     99       100       8.250%       12/01/10  
Acquisition Mortgage Loan XI
     —       4,854 (1)     —       —       —       — (4)
Acquisition Mortgage Loan XII
     2,565 (1)     2,623 (1)     15       —       7.540%       01/01/12  
Acquisition Mortgage Loan XIII
     13,862 (1)     —       42       —       5.600%       11/10/12  
Acquisition Mortgage Loan XIV
     6,740 (1)     —       13       —       6.940%       07/01/09  
                                     
Total
   $ 59,905     $ 45,746     $ 316     $ 213                  
                                     
Senior Unsecured Debt, Net
                                                
2005 Notes
   $ 50,000     $ 50,000     $ 383     $ 383       6.900%       11/21/05  
2006 Notes
     150,000       150,000       875       875       7.000%       12/01/06  
2007 Notes
     149,988 (2)     149,982 (2)     1,456       1,457       7.600%       05/15/07  
2011 PATS
     —       99,657 (2)     —       942       —       — (3)
2017 Notes
     99,876 (2)     99,866 (2)     625       625       7.500%       12/01/17  
2027 Notes
     15,053 (2)     15,053 (2)     138       138       7.150%       05/15/27  
2028 Notes
     199,815 (2)     199,807 (2)     7,009       7,009       7.600%       07/15/28  
2011 Notes
     199,624 (2)     199,563 (2)     4,343       4,343       7.375%       03/15/11  
2012 Notes
     198,994 (2)     198,856 (2)     2,903       2,903       6.875%       04/15/12  
2032 Notes
     49,390 (2)     49,368 (2)     818       818       7.750%       04/15/32  
2009 Notes
     124,806 (2)     —       292       —       5.250%       06/15/09  
2014 Notes
     109,978 (2)     —       669       —       6.420%       06/01/14 (3)
                                     
Total
   $ 1,347,524     $ 1,212,152     $ 19,511     $ 19,493                  
                                     
Unsecured Line of Credit
                                                
Unsecured Line of Credit
   $ 167,500     $ 195,900     $ 549     $ 336       3.518%       09/28/07  
                                     
 
(1)  At December 31, 2004, the Acquisition Mortgage Loan V, the Acquisition Mortgage Loan X, the Acquisition Mortgage Loan XII, the Acquisition Mortgage Loan XIII and the Acquisition Mortgage Loan XIV includes unamortized premiums of $63, $2,291, $267, $453 and $553, respectively. At December 31, 2003 the Acquisition Mortgage Loan V, the Acquisition Mortgage Loan X, the Acquisition Mortgage Loan XI and the Acquisition Mortgage Loan XII include unamortized premiums of $102, $2,673, $597 and $305 respectively.
 
(2)  At December 31, 2004, the 2007 Notes, 2017 Notes, 2027 Notes, 2028 Notes, 2011 Notes, 2012 Notes, 2032 Notes, 2009 Notes and the 2014 Notes are net of unamortized discounts of $13, $124, $16, $185, $376, $1,006, $610, $194 and $15,023 respectively. At December 31, 2003, the 2007 Notes,

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
2011 PATS, 2017 Notes, 2027 Notes, 2028 Notes, 2011 Notes, 2012 Notes and the 2032 Notes are net of unamortized discounts of $18, $343, $134, $17, $193, $437, $1,144 and $632, respectively.
 
(3)  The 2014 Notes were exchanged on May 17, 2004 for the 2011 PATS and net cash in the amount of $8,877. The Company retired the 2011 PATS.
 
(4)  The Acquisition Mortgage Loan XI was paid off and retired in December 2004.
      The following is a schedule of the stated maturities and scheduled principal payments of the mortgage loans, senior unsecured debt and unsecured line of credit, exclusive of premiums and discounts, for the next five years ending December 31, and thereafter:
         
    Amount
     
2005
     51,876  
2006
     156,107  
2007
     319,472  
2008
     2,133  
2009
     131,909  
Thereafter
     927,352  
       
Total
   $ 1,588,849  
       
Fair Value
      At December 31, 2004 and 2003, the fair value of the Company’s mortgage loans payable, senior unsecured debt, unsecured line of credit and Put Option were as follows:
                                 
    December 31, 2004   December 31, 2003
         
    Carrying       Carrying    
    Amount   Fair Value   Amount   Fair Value
                 
Mortgage Loans Payable
   $ 59,905     $ 62,876     $ 45,746     $ 48,939  
Senior Unsecured Debt
     1,347,524       1,503,012       1,212,152       1,332,958  
Unsecured Line of Credit (Variable Rate)
     167,500       167,500       195,900       195,900  
Put Option
     —       —       95       16,320  
                         
Total
   $ 1,574,929     $ 1,733,388     $ 1,453,893     $ 1,594,117  
                         
      The fair value of the senior unsecured debt was determined by quoted market prices, if available. The fair values of the Company’s senior unsecured debt not valued by quoted market prices, mortgage loans payable and Put Option were determined by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of the variable rate portion of the Unsecured Line of Credit was equal to its carrying value due to the variable interest rate nature of the loan.
Other Comprehensive Income
      In conjunction with the prior issuances of senior unsecured debt, the Company entered into interest rate protection agreements to fix the interest rate on anticipated offerings of senior unsecured debt (the “Interest Rate Protection Agreements”). In the next 12 months, the Company will amortize approximately $1,085 of the Interest Rate Protection Agreements into net income as a decrease to interest expense.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      In March 2004, the Company, through the Operating Partnership, entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73,500, was effective from July 1, 2004 through July 1, 2009 and fixed the LIBOR rate at 3.354%. In conjunction with the offering of the 2009 Notes, the Company settled this interest rate protection agreement and received proceeds in the amount of $3,817, which is recognized in other comprehensive income. The Company is amortizing this settlement amount into net income over the life of the 2009 Notes as an adjustment to interest expense.
      In March 2004, the Company, through the Operating Partnership, entered into another interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73,500, was effective from August 15, 2004 through August 15, 2009 and fixed the LIBOR rate at 3.326%. In May 2004, the Company reduced the projected amount of the future debt offering and settled $24,500 of this interest rate protection agreement for proceeds in the amount of $1,450 which is recognized in net income. In conjunction with the offering of the 2009 Notes, the Company settled the remaining $49,000 of this interest rate protection agreement and received proceeds in the amount of $2,840, which is recognized in other comprehensive income. The Company is amortizing this settlement amount into net income over the life of the 2009 Notes as an adjustment to interest expense.
      In October 2004, the Company, through the Operating Partnership, entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $48,980, was effective from January 5, 2005 through January 5, 2010 and fixed the LIBOR rate at 3.909%. In November 2004, the Company settled the interest rate protection agreement for $310 due to a delay in the forecasted debt issuance date. Hedge ineffectiveness in the amount of $133, due to a mismatch in dates, was recognized in net income. The remaining $159 is included in other comprehensive income and will be amortized over the term of the forecasted debt issuance. In the event that $50,000 of debt is not issued by December 10, 2005, the balance in other comprehensive income will be reclassified into net income immediately.
6. Stockholders’ Equity
Preferred Stock
      On May 14, 1997, the Company issued 4,000,000 Depositary Shares, each representing 1/100th of a share of the Company’s 83/4%, $.01 par value, Series B Cumulative Preferred Stock (the “Series B Preferred Stock”), at an initial offering price of $25 per Depositary Share. On or after May 14, 2002, the Series B Preferred Stock became redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $100,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. On April 12, 2002, the Company called for the redemption of all of its outstanding Series B Preferred Stock at the price of $25 per Depositary Share, plus accrued and unpaid dividends. The Company redeemed the Series B Preferred Stock on May 14, 2002 and paid a prorated second quarter dividend of $.26736 per Depositary Share, totaling approximately $1,069. In accordance with the Securities and Exchange Commission’s July 31, 2003 clarification on Emerging Issues Task Force Abstract, Topic No. D-42, “The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock” (“EITF D-42”), due to the redemption of the Series B Preferred Stock, the initial offering costs associated with the issuance of the Series B Preferred Stock of $3,707 were reflected as a deduction from net income to arrive at net income available to common stockholders in determining earnings per share for the year ended December 31, 2002.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      On June 6, 1997, the Company issued 2,000,000 Depositary Shares, each representing 1/100th of a share of the Company’s 85/8%, $.01 par value, Series C Cumulative Preferred Stock (the “Series C Preferred Stock”), at an initial offering price of $25 per Depositary Share. Dividends on the Series C Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series C Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series F Preferred Stock (hereinafter defined) and Series G Preferred Stock (hereinafter defined). The Series C Preferred Stock is not redeemable prior to June 6, 2007. On or after June 6, 2007, the Series C Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $50,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series C Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.
      On February 4, 1998, the Company issued 5,000,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.95%, $.01 par value, Series D Cumulative Preferred Stock (the “Series D Preferred Stock”), at an initial offering price of $25 per Depositary Share. On or after February 4, 2003, the Series D Preferred Stock became redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $125,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Company redeemed the Series D Preferred Stock on June 7, 2004 at a redemption price of $25.00 per Depositary Share, and paid a prorated second quarter dividend of $.36990 per Depositary Share, totaling approximately $1,850. In accordance with EITF D-42, due to the redemption of the Series D Preferred Stock, the initial offering costs associated with the issuance of the Series D Preferred Stock of $4,467 were reflected as a deduction from net income to arrive at net income available to common stockholders in determining earnings per share for the year ended December 31, 2004.
      On March 18, 1998, the Company issued 3,000,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.90%, $.01 par value, Series E Cumulative Preferred Stock (the “Series E Preferred Stock”), at an initial offering price of $25 per Depositary Share. On or after March 18, 2003, the Series E Preferred Stock became redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $75,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Company redeemed the Series E Preferred Stock on June 7, 2004 at a redemption price of $25.00 per Depositary Share, and paid a prorated second quarter dividend of $.36757 per Depositary Share, totaling approximately $1,103. In accordance with EITF D-42, due to the redemption of the Series E Preferred Stock, the initial offering costs associated with the issuance of the Series E Preferred Stock of $2,892 were reflected as a deduction from net income to arrive at net income available to common stockholders in determining earnings per share for the year ended December 31, 2004.
      On May 27, 2004, the Company issued 50,000 Depositary Shares, each representing 1/100th of a share of the Company’s 6.236%, $.01 par value, Series F Flexible Cumulative Redeemable Preferred Stock (the “Series F Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share. Dividends on the Series F Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance through March 31, 2009 (the “Series F Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 6.236% per annum of the liquidation preference (the “Series F Initial Distribution Rate”) (equivalent to $62.36 per Depositary Share). On or after March 31, 2009, the Series F Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.375% (the initial credit spread), plus the greater of (i) the 3-month

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate)(as defined in the Articles Supplementary), reset quarterly. Dividends on the Series F Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series F Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series F Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock and Series G Preferred Stock (hereinafter defined). On or after March 31, 2009, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series F Initial Fixed Rate Period, the Series F Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $50,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series F Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.
      On May 27, 2004, the Company issued 25,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.236%, $.01 par value, Series G Flexible Cumulative Redeemable Preferred Stock (the “Series G Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share. Dividends on the Series G Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance of the Series G Preferred Stock through March 31, 2014 (the “Series G Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 7.236% per annum of the liquidation preference (the “Series G Initial Distribution Rate”) (equivalent to $72.36 per Depositary Share). On or after March 31, 2014, the Series G Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.500% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate) (as defined in the Articles Supplementary), reset quarterly. Dividends on the Series G Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series G Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series G Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock and Series F Preferred Stock. On or after March 31, 2014, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series G Initial Fixed Rate Period, the Series G Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $25,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series G Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.
      On June 2, 2004, the Company issued 500 shares of 2.965%, $.01 par value, Series H Flexible Cumulative Redeemable Preferred Stock (the “Series H Preferred Stock”), at an initial offering price of $250,000.00 per share. On or after July 2, 2004, the Series H Preferred Stock became redeemable for cash at the option of the Company, in whole but not in part, at a redemption price equivalent, initially, to $242,875.00 per share, plus accrued and unpaid dividends. The Company redeemed the Series H Preferred Stock on July 2, 2004 and paid a prorated second and third quarter dividend of $629.555 per share, totaling approximately $315. In accordance with EITF D-42, due to the redemption of the Series H Preferred Stock, the initial offering costs associated with the issuance of the Series H Preferred Stock of $600 is reflected as a deduction from net income to arrive at net income available to common stockholders in determining earnings per share for the year ended December 31, 2004.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      The following table summarizes certain information regarding the Company’s preferred stock:
                                 
    Stated Value at        
        Initial   Optional
    December 31,   December 31,   Dividend   Redemption
    2004   2003   Rate   Date
                 
Series C Preferred Stock
   $ 50,000     $ 50,000       8.625 %     6/6/07  
Series D Preferred Stock
     —       125,000       7.950 %     (1 )
Series E Preferred Stock
     —       75,000       7.900 %     (2 )
Series F Preferred Stock
     50,000       —       6.236 %     3/31/09  
Series G Preferred Stock
     25,000       —       7.236 %     3/31/14  
                         
Total
   $ 125,000     $ 250,000                  
                         
 
(1) The Series D Preferred Stock was redeemed on June 7, 2004.
(2) The Series E Preferred Stock was redeemed on June 7, 2004.
Shares of Common Stock
      On September 16, 2004, the Company and the Operating Partnership entered into a sales agreement to sell up to 3,900,000 shares of the Company’s common stock from time to time with Cantor Fitzgerald & Co., as sales agent, in a controlled equity offering program. During the year ended December 31, 2004, the Company issued 1,333,600 shares of common stock under the controlled equity offering program and received net proceeds of $48,820.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      The following table is a roll-forward of the Company’s shares of common stock outstanding for the three years ended December 31, 2004:
         
    Shares of
    Common Stock
    Outstanding
     
Balance at December 31, 2001
     38,904,687  
Issuance of Common Stock and Stock Option Exercises
     572,677  
Issuance of Restricted Stock Shares
     93,980  
Repurchase and Retirement of Restricted Stock Shares
     (60,419 )
Purchase of Treasury Shares
     (1,091,500 )
Conversion of Operating Partnership Units
     178,896  
       
Balance at December 31, 2002
     38,598,321  
       
Issuance of Common Stock and Stock Option Exercises
     542,744  
Issuance of Restricted Stock Shares
     704,844  
Repurchase and Retirement of Restricted Stock Shares
     (66,183 )
Purchase of Treasury Shares
     (37,300 )
Conversion of Operating Partnership Units
     107,944  
       
Balance at December 31, 2003
     39,850,370  
       
Issuance of Common Stock and Stock Option Exercises
     2,621,082  
Issuance of Restricted Stock Shares
     216,617  
Repurchase and Retirement of Restricted Stock Shares
     (102,076 )
Conversion of Operating Partnership Units
     248,098  
       
Balance at December 31, 2004
     42,834,091  
       
Non-Qualified Employee Stock Options
      For the year ended December 31, 2004, certain employees of the Company exercised 1,287,482 non-qualified employee stock options. Net proceeds to the Company were approximately $37,301.
      For the year ended December 31, 2003, certain employees of the Company exercised 531,473 non-qualified employee stock options. Net proceeds to the Company were approximately $14,799.
      For the year ended December 31, 2002, certain employees of the Company exercised 561,418 non-qualified employee stock options. Net proceeds to the Company were approximately $15,895.
Restricted Stock
      During the years ended December 31, 2004, 2003, and 2002 the Company awarded 216,617, 704,844 and 93,980 restricted shares of common stock, respectively, to certain employees and certain directors of the Company. See Note 13.
Treasury Stock:
      In March 2000, the Company’s Board of Directors approved the repurchase of up to $100,000 of the Company’s common stock. The Company may make purchases from time to time, if price levels warrant, in the open market or in privately negotiated transactions. During the year ended December 31, 2003, the

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
Company repurchased 37,300 shares of its common stock at a weighted average price of approximately $26.73 per share. During the year ended December 31, 2002, the Company repurchased 1,091,500 shares of its common stock at a weighted average price of approximately $27.02 per share.
Shareholders’ Rights Plan
      On September 4, 1997, the Board of Directors of the Company declared a dividend distribution of one Preferred Share Purchase Right (“Right”) for each outstanding share of Common Stock. The dividend distribution was made on October 20, 1997 to stockholders of record as of the close of business on October 19, 1997. In addition, a Right will attach to each share of Common Stock issued in the future. Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Junior Participating Preferred Stock (the “Junior Preferred Stock”), at a price of $125 per one one-hundredth of a share (the “Purchase Price”), subject to adjustment. The Rights become exercisable only if a person or group of affiliated or associated persons (an “Acquiring Person”) acquires, or obtains the right to acquire, beneficial ownership of Common Stock or other voting securities (“Voting Stock”) that have 15% or more of the voting power of the outstanding shares of Voting Stock, or if an Acquiring Person commences or makes an announcement of an intention to commence a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that have 15% or more of the voting power of the outstanding shares of Voting Stock. The Rights will expire on October 19, 2007, unless redeemed earlier by the Company at $.001 per Right, or exchanged by the Company at an exchange ratio of one share of Common Stock per Right.
      In the event that a person becomes an Acquiring Person, each holder of a Right, other than the Acquiring Person, is entitled to receive, upon exercise, (1) Common Stock having a value equal to two times the Purchase Price of the Right or (2) common stock of the acquiring company having a value equal to two times the Purchase Price of the Right.
      The Junior Preferred Stock ranks junior to all other series of the Company’s preferred stock with respect to payment of dividends and as to distributions of assets in liquidation. Each share of Junior Preferred Stock has a quarterly dividend rate per share equal to the greater of $1.00 or 100 times the per share amount of any dividend (other than a dividend payable in shares of Common Stock or a subdivision of the Common Stock) declared on the Common Stock, subject to certain adjustments. In the event of liquidation, the holder of the Junior Preferred Stock is entitled to receive a preferred liquidation payment per share of $1.00 (plus accrued and unpaid dividends) or, if greater, an amount equal to 100 times the payment to be made per share of Common Stock, subject to certain adjustments.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
Dividends/ Distributions
      The following table summarizes dividends/distributions accrued for the past three years:
                                                 
    Year Ended 2004   Year Ended 2003   Year Ended 2002
             
    Dividend/       Dividend/       Dividend/    
    Distribution   Total   Distribution   Total   Distribution   Total
    per Share/   Dividend/   per Share/   Dividend/   per Share/   Dividend/
    Unit   Distribution   Unit   Distribution   Unit   Distribution
                         
Common Stock/ Operating Partnership Units
   $ 2.7500     $ 132,585     $ 2.7400     $ 126,699     $ 2.7250     $ 125,785  
Series B Preferred Stock
   $ —     $ —     $ —     $ —     $ 81.4240     $ 3,256  
Series C Preferred Stock
   $ 215.6240     $ 4,313     $ 215.6240     $ 4,313     $ 215.6240     $ 4,313  
Series D Preferred Stock
   $ 86.6780     $ 4,334     $ 198.7480     $ 9,937     $ 198.7480     $ 9,937  
Series E Preferred Stock
   $ 86.1320     $ 2,585     $ 197.5000     $ 5,926     $ 197.5000     $ 5,926  
Series F Preferred Stock
   $ 3,724.2800     $ 1,861     $ —     $ —     $ —     $ —  
Series G Preferred Stock
   $ 4,321.5000     $ 1,080     $ —     $ —     $ —     $ —  
Series H Preferred Stock
   $ 629.5550     $ 315     $ —     $ —     $ —     $ —  
7. Acquisition and Development of Real Estate
      In 2004, the Company acquired 79 industrial properties comprising, in the aggregate, approximately 9.2 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $402,388, excluding costs incurred in conjunction with the acquisition of the properties. The Company also substantially completed development of 11 properties comprising approximately 2.3 million square feet (unaudited) of GLA at a cost of approximately $80,241. The Company reclassed the costs of the substantially completed developments from construction in progress to building, tenant improvements and leasing commissions.
      In 2003, the Company acquired 64 industrial properties comprising, in the aggregate, approximately 6.6 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $230,391, excluding costs incurred in conjunction with the acquisition of the properties. The Company also substantially completed development of 33 properties comprising approximately 3.2 million square feet (unaudited) of GLA at a cost of approximately $156,268. The Company reclassed the costs of the substantially completed developments from construction in progress to building, tenant improvements and leasing commissions.
8. Sale of Real Estate, Real Estate Held for Sale and Discontinued Operations
      In 2004, the Company sold 97 industrial properties comprising approximately 7.4 million square feet (unaudited) of GLA and several land parcels. Gross proceeds from the sales of the 97 industrial properties and several land parcels were approximately $424,878. The gain on sale of real estate, net of income taxes was approximately $91,242, of which $79,811 is shown in discontinued operations. Ninety-two of the 97 sold industrial properties meet the criteria established by FAS 144 to be included in discontinued operations. Therefore, in accordance with FAS 144, the results of operations and gain on sale of real estate, net of income taxes for the 92 sold industrial properties that meet the criteria established by FAS 144 are included in discontinued operations. The results of operations and gain on sale of real estate, net of income taxes for the five industrial properties and several land parcels that do not meet the criteria established by FAS 144 are included in continuing operations.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      At December 31, 2004, the Company had nine industrial properties comprising approximately 1.7 million square feet (unaudited) of GLA held for sale. In accordance with FAS 144, the results of operations of the nine industrial properties held for sale at December 31, 2004 are included in discontinued operations. There can be no assurance that such industrial properties held for sale will be sold.
      In 2003, the Company sold 130 industrial properties comprising approximately 7.4 million square feet (unaudited) of GLA and several land parcels. Ten of the 130 sold properties comprising approximately 1.4 million square feet (unaudited) of GLA were sold to the December 2001 Joint Venture. Gross proceeds from the sales of the 130 industrial properties and several land parcels were approximately $394,382. The gain on sale of real estate, net of income taxes was approximately $91,081, of which $77,636 is shown in discontinued operations. In accordance with FAS 144, the results of operations and gain on sale of real estate, net of income taxes for the 120 of the 130 sold properties are included in discontinued operations.
      In 2002, the Company sold 86 industrial properties comprising approximately 8.5 million square feet (unaudited) of GLA that were not classified as held for sale at December 31, 2001, 12 industrial properties comprising approximately .9 million square feet (unaudited) of GLA that were classified as held for sale at December 31, 2001, 16 industrial properties comprising approximately 2.5 million square feet (unaudited) of GLA that were sold to the December 2001 Joint Venture, and several land parcels, and assigned to third parties the right to purchase certain properties. Gross proceeds from these sales were approximately $473,511. The gain on sale of real estate, net of income taxes was approximately $69,892, of which $56,810 is shown in discontinued operations. In accordance with FAS 144, the results of operations and gain on sale of real estate, net of income taxes for the 86 of the 114 sold industrial properties that were not identified as held for sale at December 31, 2001 and the gain associated with the assignment to third parties of the right to purchase certain properties are included in discontinued operations.
      The following table discloses certain information regarding the industrial properties included in discontinued operations by the Company for the years ended December 31, 2004, 2003 and 2002.
                         
    Year Ended December 31,
     
        Restated
         
    2004   2003   2002
             
Total Revenues
   $ 23,381     $ 53,744     $ 83,353  
Operating Expenses
     (7,414 )     (17,319 )     (24,567 )
Depreciation and Amortization
     (5,408 )     (11,441 )     (16,119 )
Provision for Income Taxes
     (1,690 )     (1,354 )     (947 )
Gain on Sale of Real Estate, Net of Income Taxes
     79,811       77,636       56,810  
                   
Income from Discontinued Operations
   $ 88,680     $ 101,266     $ 98,530  
                   
      In conjunction with certain property sales, the Company provided seller financing. At December 31, 2004, 2003 and 2002, the Company had mortgage notes receivable and accrued interest outstanding of approximately $36,075, $52,920 and $84,675, respectively, which is included as a component of prepaid expenses and other assets. Also, in December 2004, the Company sold $18,419 of its notes receivable to a third party for par.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
9. Supplemental Information to Statements of Cash Flows
      Supplemental disclosure of cash flow information:
                           
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2004   2003   2002
             
Interest paid, net of capitalized interest
   $ 98,910     $ 95,595     $ 87,723  
                   
 
Interest capitalized
   $ 1,304     $ 761     $ 7,792  
                   
Income Taxes Paid
   $ 7,936     $ 1,367     $ 3,905  
                   
Supplemental schedule of noncash investing and financing activities:
                        
 
Distribution payable on common stock/units
   $ 34,255     $ 31,889     $ 31,106  
                   
 
Distribution payable on preferred stock
   $ 1,232     $ —     $ —  
                   
Exchange of units for common shares:
                        
 
Minority interest
   $ (6,195 )   $ (2,750 )   $ (4,616 )
 
Common stock
     3       1       2  
 
Additional paid-in-capital
     6,192       2,749       4,614  
                   
    $ —     $ —     $ —  
                   
In conjunction with the property and land acquisitions, the following assets and liabilities were assumed:
                        
 
Purchase of real estate
   $ 402,388     $ 230,391     $ 239,408  
 
Operating partnership units
     —       —       (633 )
 
Deferred purchase price
     —       (10,425 )     —  
 
Accounts payable and accrued expenses
     (3,231 )     (2,193 )     (2,504 )
 
Mortgage debt
     (18,244 )     (20,751 )     (11,844 )
                   
 
Acquisition of real estate
   $ 380,913     $ 197,022     $ 224,427  
                   
In conjunction with certain property sales, the Company provided seller financing:
                        
 
Notes receivable
   $ 92,146     $ 46,372     $ 78,227  
                   

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands except per share data)
10. Earnings Per Share (“EPS”)
      The computation of basic and diluted EPS is presented below.
                           
        Restated   Restated
             
    Year Ended   Year Ended   Year Ended
    December 31,   December 31,   December 31,
    2004   2003   2002
             
Numerator:
                        
 
Income from Continuing Operations
   $ 24,230     $ 15,959     $ 25,315  
 
Gain on Sale of Real Estate, Net of Minority Interest and Income Tax
     9,863       11,464       11,123  
 
Less: Preferred Stock Dividends
     (14,488 )     (20,176 )     (23,432 )
 
Less: Redemption of Preferred Stock
     (7,959 )     —       (3,707 )
                   
 
Income from Continuing Operations Available to Common Stockholders, Net of Minority Interest — For Basic and Diluted EPS
     11,646       7,247       9,299  
 
Discontinued Operations, Net of Minority Interest and Income Tax
     76,513       86,350       83,770  
                   
 
Net Income Available to Common Stockholders — For Basic and Diluted EPS
   $ 88,159     $ 93,597     $ 93,069  
                   
Denominator:
                        
 
Weighted Average Shares — Basic
     40,557,053       38,541,571       38,927,282  
 
Effect of Dilutive Securities:
                        
 
Employee and Director Common Stock Options
     227,423       91,599       201,868  
 
Employee and Director Shares of Restricted Stock
     103,551       29,561       36,327  
                   
 
Weighted Average Shares — Diluted
     40,888,027       38,662,731       39,165,477  
                   
Basic EPS:
                        
 
Income from Continuing Operations Available to Common Stockholders, Net of Minority Interest
   $ 0.29     $ 0.19     $ 0.24  
                   
 
Discontinued Operations, Net of Minority Interest and Income Tax
   $ 1.89     $ 2.24     $ 2.15  
                   
 
Net Income Available to Common Stockholders
   $ 2.17     $ 2.43     $ 2.39  
                   
Diluted EPS:
                        
 
Income from Continuing Operations Available to Common Stockholders, Net of Minority Interest
   $ 0.28     $ 0.19     $ 0.24  
                   
 
Discontinued Operations, Net of Minority Interest and Income Tax
   $ 1.87     $ 2.23     $ 2.14  
                   
 
Net Income Available to Common Stockholders
   $ 2.16     $ 2.42     $ 2.38  
                   

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands except per share data)
11. Income Taxes
      For income tax purposes, distributions paid to common shareholders are classified as ordinary income, capital gain or return of capital. For the three years ended December 31, 2004, 2003 and 2002, the distributions per common share were classified as follows:
                                                 
        As a Percentage       As a Percentage       As a Percentage
    2004   of Distributions   2003   of Distributions   2002   of Distributions
                         
Ordinary income
   $ .3622       13.17 %   $ 1.1516       42.03 %   $ 1.1489       42.16 %
Short-term capital gains
     .0423       1.54 %     —       —       .1218       4.47 %
Long-term capital gains
     .8654       31.47 %     .6173       22.53 %     .3845       14.11 %
Unrecaptured Section 1250 gain
     .2503       9.10 %     .2666       9.73 %     .2515       9.23 %
Return of capital
     1.2298       44.72 %     .7045       25.71 %     .8183       30.03 %
                                     
    $ 2.7500       100.00 %   $ 2.7400       100.00 %   $ 2.7250       100.00 %
                                     
      For income tax purposes, distributions paid to preferred shareholders are classified as ordinary income, capital gain and return of capital. For the three years ended December 31, 2004, 2003 and 2002, the preferred distributions per share were classified as follows:
                                                 
        As a Percentage       As a Percentage       As a Percentage
    2004   of Distributions   2003   of Distributions   2002   of Distributions
                         
Ordinary income
   $ .9249       23.81 %   $ 3.4614       56.57 %   $ 6.9335       100.00 %
Short-term capital gains
     .1080       2.78 %     —       —       —       —  
Long-term capital gains
     2.2119       56.94 %     1.8558       30.33 %     —       —  
Unrecaptured Section 1250 gain
     .6398       16.47 %     .8016       13.10 %     —       —  
                                     
    $ 3.8846       100.00 %   $ 6.1188       100.00 %   $ 6.9335       100.00 %
                                     
      The components of income tax (expense) benefit for the Company’s taxable REIT subsidiary for the years ended December 31, 2004, 2003 and 2002 are comprised of the following:
                           
    2004   2003   2002
             
Current:
                        
 
Federal
   $ (8,074 )   $ (873 )   $ (3,304 )
 
State
     (1,654 )     (218 )     (932 )
Deferred:
                        
 
Federal
     1,070       391       445  
 
State
     219       98       125  
                   
    $ (8,439 )   $ (602 )   $ (3,666 )
                   

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      Deferred income taxes represent the tax effect of the temporary differences between the book and tax basis of assets and liabilities. Deferred tax assets (liabilities) include the following as of December 31, 2004, 2003 and 2002:
                           
    2004   2003   2002
             
Fixed assets
   $ 2,012     $ 310     $ 41  
Prepaid rent
     323       149       112  
Capitalized general and administrative expense under 263(A)
     818       576       847  
Deferred losses/gains
     334       1,054       590  
Capitalized interest under 263(A)
     —       117       —  
                   
 
Total deferred tax assets
   $ 3,487     $ 2,206     $ 1,590  
                   
Straight-line rent
     (430 )     (438 )     (311 )
                   
 
Total deferred tax liabilities
   $ (430 )   $ (438 )   $ (311 )
                   
 
Total net deferred tax asset
   $ 3,057     $ 1,768     $ 1,279  
                   
      The Company does not have any net operating loss carryforwards or tax credit carryforwards.
      The Company’s components of income tax (expense) benefit for the years ended December 31, 2004, 2003 and 2002 are as follows:
                           
        Restated
         
    2004   2003   2002
             
Tax expense associated with income from operations on sold properties which is included in discontinued operations
   $ (1,690 )   $ (1,354 )   $ (947 )
Tax expense associated with gains and losses on the sale of real estate which is included in discontinued operations
     (8,434 )     (1,850 )     (1,513 )
Tax expense associated with gains and losses on the sale of real estate
     (5,324 )     (2,348 )     (3,394 )
Income tax benefit ($850 provision for income tax included in Equity in Income from Joint Ventures for 2004)
     7,009       4,950       2,188  
                   
 
Income tax expense
   $ (8,439 )   $ (602 )   $ (3,666 )
                   
      The income tax benefit (expense) pertaining to income from continuing operations and gain on sale of real estate differs from the amounts computed by applying the applicable federal statutory rate as follows:
                           
    2004   2003   2002
             
Tax benefit (expense) at Federal rate related to continuing operations
     1,499       2,026       (1,057 )
State Tax benefit (expense), net of Federal benefit (expense)
     186       337       (173 )
Meals and Entertainment
     (16 )     (12 )     (16 )
Prior year provision to return adjustments
     10       205       —  
Other
     6       46       40  
                   
 
Income tax benefit (expense)
     1,685       2,602       (1,206 )
                   

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Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
      In the consolidated statements of operations for the years ended December 31, 2003 and 2002 most recently presented on the Company’s Form 8-K filed July 30, 2004, the Company classified its entire tax provision to income from discontinued operations. Based on a review of its presentation of income taxes under FAS 109, the Company has reconsidered such presentation and determined that the Company’s income tax provision should be allocated between income from continuing operations, income from discontinued operations and gain on sale of real estate. The columns titled “Restatement of Benefit (Expense) for Income Tax” reflect the FAS 109 adjustments to restate the consolidated statements of operations for the years ended December 31, 2003 and 2002 reflected in the Form 8-K filed on July 30, 2004. The columns titled “Adjustment for Discontinued Operations” reflect the adjustments to reconcile the restated consolidated statements of operations to the consolidated statements of operations in the 2004 Form 10-K. These adjustments reflect the reclassification of operations and gain on sale of real estate to discontinued operations for properties sold in 2004 that meet the criteria of FAS 144 as well as adjustments to properly allocate the income tax provision/benefit between income from continuing operations, income from discontinued operations and gain on sale of real estate due to the FAS 144 reclassifications.
Restatements of Consolidated Statements of Operations
                                           
    For the Year Ended December 31, 2003
     
    As Previously   Restatement of    
    Reported on   Benefit       Adjustment for   As Reported
    Form 8-K Filed   (Expense) for   Restated   Discontinued   on 2004
    July 30, 2004   Income Tax   Amounts   Operations   Form 10-K
                     
Income from Continuing Operations Before Income Tax Benefit, Equity in Income of Joint Ventures, Net and Income Allocated to Minority Interest
     19,801               19,801       (9,893 )     9,908  
Income Tax Benefit
     —       4,322       4,322       628       4,950  
Equity in Income of Joint Ventures, Net of Income Taxes
     539               539               539  
Minority Interest Allocable to Continuing Operations
     (166 )     (634 )     (800 )     1,362       562  
                               
Income from Continuing Operations
     20,174       3,688       23,862       (7,903 )     15,959  
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $77,636, Net of Income Taxes), Net of Income Taxes
     94,163       (1,983 )     92,180       9,086       101,266  
Minority Interest Allocable to Discontinued Operations
     (13,870 )     289       (13,581 )     (1,335 )     (14,916 )
                               
Income Before Gain on Sale of Real Estate
     100,467       1,994       102,461       (152 )     102,309  
Gain on Sale of Real Estate, Net of Income Taxes
     15,605       (2,339 )     13,266       179       13,445  
Minority Interest Allocable to Gain on Sale of Real Estate
     (2,299 )     345       (1,954 )     (27 )     (1,981 )
                               
Net Income
     113,773       —       113,773       —       113,773  
Less: Preferred Stock Dividends
     (20,176 )     —       (20,176 )     —       (20,176 )
                               
Net Income Available to Common Stockholders
   $ 93,597     $ —     $ 93,597     $ —     $ 93,597  
                               
Basic Earnings Per Share:
                                        
 
Income from Continuing Operations
   $ 0.35     $ 0.04     $ 0.39     $ (0.20 )   $ 0.19  
                               
 
Income from Discontinued Operations
   $ 2.08     $ (0.04 )   $ 2.04     $ 0.20     $ 2.24  
                               
 
Net Income Available to Common Stockholders
   $ 2.43     $ —     $ 2.43     $ —     $ 2.43  
                               

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
                                           
    For the Year Ended December 31, 2003
     
    As Previously   Restatement of    
    Reported on   Benefit       Adjustment for   As Reported
    Form 8-K Filed   (Expense) for   Restated   Discontinued   on 2004
    July 30, 2004   Income Tax   Amounts   Operations   Form 10-K
                     
 
Weighted Average Shares Outstanding
     38,542               38,542               38,542  
                               
Diluted Earnings Per Share:
                                        
 
Income from Continuing Operations
   $ 0.34     $ 0.04     $ 0.39     $ (0.20 )   $ 0.19  
                               
 
Income from Discontinued Operations
   $ 2.08     $ (0.04 )   $ 2.03     $ 0.20     $ 2.23  
                               
 
Net Income Available to Common Stockholders
   $ 2.42     $ —     $ 2.42     $ —     $ 2.42  
                               
 
Weighted Average Shares Outstanding
     38,663               38,663               38,663  
                               
                                           
    For the Year Ended December 31, 2002
     
    As Previously   Restatement of    
    Reported on   Benefit       Adjustment for   As Reported
    Form 8-K Filed   (Expense) for   Restated   Discontinued   on 2004
    July 30, 2004   Income Tax   Amounts   Operations   Form 10-K
                     
Income from Continuing Operations Before Income Tax Benefit, Equity in Income of Joint Ventures, Net and Income Allocated to Minority Interest
     31,920               31,920       (9,608 )     22,312  
Income Tax Benefit
     —       1,815       1,815       373       2,188  
Equity in Income of Joint Ventures, Net of Income Taxes
     463               463               463  
Minority Interest Allocable to Continuing Operations
     (758 )     (273 )     (1,031 )     1,383       352  
                               
Income from Continuing Operations
     31,625       1,542       33,167       (7,852 )     25,315  
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $56,810, Net of Income Taxes), Net of Income Taxes
     87,716       1,579       89,295       9,235       98,530  
Minority Interest Allocable to Discontinued Operations
     (13,141 )     (236 )     (13,377 )     (1,383 )     (14,760 )
                               
Income Before Gain on Sale of Real Estate
     106,200       2,885       109,085       —       109,085  
Gain on Sale of Real Estate, Net of Income Taxes
     16,476       (3,394 )     13,082               13,082  
Minority Interest Allocable to Gain on Sale of Real Estate
     (2,468 )     509       (1,959 )     —       (1,959 )
                               
Net Income
     120,208       —       120,208       —       120,208  
Less: Preferred Stock Dividends
     (23,432 )     —       (23,432 )     —       (23,432 )
Less: Redemption of Preferred Stock
     (3,707 )     —       (3,707 )     —       (3,707 )
                               
Net Income Available to Common Stockholders
   $ 93,069     $ —     $ 93,069     $ —     $ 93,069  
                               
Basic Earnings Per Share:
                                        
 
Income from Continuing Operations
   $ 0.48     $ (0.03 )   $ 0.44     $ (0.20 )   $ 0.24  
                               
 
Income from Discontinued Operations
   $ 1.92     $ 0.03     $ 1.95     $ 0.20     $ 2.15  
                               
 
Net Income Available to Common Stockholders
   $ 2.39     $ —     $ 2.39     $ —     $ 2.39  
                               
 
Weighted Average Shares Outstanding
     38,927               38,927               38,927  
                               

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Table of Contents

FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
                                           
    For the Year Ended December 31, 2002
     
    As Previously   Restatement of    
    Reported on   Benefit       Adjustment for   As Reported
    Form 8-K Filed   (Expense) for   Restated   Discontinued   on 2004
    July 30, 2004   Income Tax   Amounts   Operations   Form 10-K
                     
Diluted Earnings Per Share:
                                        
 
Income from Continuing Operations
   $ 0.47     $ (0.03 )   $ 0.44     $ (0.20 )   $ 0.24  
                               
 
Income from Discontinued Operations
   $ 1.90     $ 0.03     $ 1.94     $ 0.20     $ 2.14  
                               
 
Net Income Available to Common Stockholders
   $ 2.38     $ —     $ 2.38     $ —     $ 2.38  
                               
 
Weighted Average Shares Outstanding
     39,165               39,165               39,165  
                               
12. Future Rental Revenues
      The Company’s properties are leased to tenants under net and semi-net operating leases. Minimum lease payments receivable, excluding tenant reimbursements of expenses, under non-cancelable operating leases in effect as of December 31, 2004 are approximately as follows:
         
2005
     224,859  
2006
     179,898  
2007
     137,536  
2008
     101,308  
2009
     70,592  
Thereafter
     255,538  
       
Total
   $ 969,731  
       
13. Employee Benefit Plans
      The Company maintains three stock incentive plans (the “Stock Incentive Plans”) which are administered by the Compensation Committee of the Board of Directors. There are approximately 10.0 million shares reserved under the Stock Incentive Plans. Only officers and other employees of the Company and its affiliates generally are eligible to participate in the Stock Incentive Plans. However, Independent Directors of the Company have received automatic annual grants of options to purchase 10,000 shares at a per share exercise price equal to the fair market value of a share on the date of grant.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(In thousands except per share data)
      The Stock Incentive Plans authorize (i) the grant of stock options that qualify as incentive stock options under Section 422 of the Code, (ii) the grant of stock options that do not so qualify, (iii) restricted stock awards, (iv) performance share awards and (v) dividend equivalent rights. The exercise price of the stock options is determined by the Compensation Committee. Special provisions apply to awards granted under the Stock Incentive Plans in the event of a change in control in the Company. As of December 31, 2004, stock options and restricted stock covering 1.9 million shares were outstanding and 2.8 million shares were available under the Stock Incentive Plans. The outstanding stock options generally vest over one to three year periods and have lives of ten years. Stock option transactions are summarized as follows:
                           
        Weighted    
        Average   Exercise Price
    Shares   Exercise Price   Per Share
             
Outstanding at December 31, 2001
     2,949,445     $ 29.55     $ 18.25-$33.125  
 
Granted
     945,600     $ 30.72     $ 30.53-$33.15  
 
Exercised
     (561,418 )   $ 28.32     $ 22.75-$33.125  
 
Expired or Terminated
     (190,992 )   $ 30.52     $ 25.125-$33.125  
                   
Outstanding at December 31, 2002
     3,142,635     $ 30.06     $ 18.25-$33.15  
 
Exercised
     (531,473 )   $ 27.99     $ 20.25-$33.13  
 
Expired or Terminated
     (107,149 )   $ 31.34     $ 25.13-$33.13  
                   
Outstanding at December 31, 2003
     2,504,013     $ 30.45     $ 18.25-$33.15  
 
Exercised
     (1,663,652 )   $ 30.33     $ 18.25-$33.15  
 
Expired or Terminated
     (16,940 )   $ 30.17     $ 22.75-$33.13  
                   
Outstanding at December 31, 2004
     823,421     $ 30.74     $ 18.25-$33.15  
                   
      The following table summarizes currently outstanding and exercisable options as of December 31, 2004:
                                         
        Weighted   Weighted       Weighted
        Average   Average       Average
    Number   Remaining   Exercise   Number   Exercise
Range of Exercise Price   Outstanding   Contractual Life   Price   Exercisable   Price
                     
$18.25-$27.69
     87,170       2.6     $ 24.83       87,170     $ 24.83  
$30.00-$33.15
     736,251       6.0     $ 31.43       622,356     $ 31.54  
      In September 1994, the Board of Directors approved and the Company adopted a 401(k)/ Profit Sharing Plan. Under the Company’s 401(k)/ Profit Sharing Plan, all eligible employees may participate by making voluntary contributions. The Company may make, but is not required to make, matching contributions. For the years ended December 31, 2004, 2003 and 2002, the Company made matching contributions of approximately $269, $109, and $99, respectively.
      During 2004, the Company awarded 206,117 shares of restricted Common Stock to certain employees and 10,500 shares of restricted Common Stock to certain Directors. These restricted shares of Common Stock had a fair value of approximately $8,379 on the date of grant. The restricted Common Stock vests over a period from one to ten years. Compensation expense will be charged to earnings over the vesting period.
      During 2003, the Company awarded 692,888 shares of restricted Common Stock to certain employees and 11,956 shares of restricted Common Stock to certain Directors. These restricted shares of Common

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
Stock had a fair value of approximately $20,640 on the date of grant. The restricted Common Stock vests over a period from one to ten years. Compensation expense will be charged to earnings over the vesting period.
      During 2002, the Company awarded 90,260 shares of restricted Common Stock to certain employees and 3,720 shares of restricted Common Stock to certain Directors. These restricted shares of Common Stock had a fair value of approximately $3,232 on the date of grant. The restricted Common Stock vests over a period from one to ten years. Compensation expense will be charged to earnings over the vesting period.
14. Related Party Transactions
      The Company periodically engages in transactions for which CB Richard Ellis, Inc. acts as a broker. A relative of one of the Company’s officers/ Directors is an employee of CB Richard Ellis, Inc. For the years ended December 31, 2004, 2003 and 2002, this relative received brokerage commissions in the amount of $29, $116 and $74, respectively, from the Company.
15. Commitments and Contingencies
      In the normal course of business, the Company is involved in legal actions arising from the ownership of its properties. In management’s opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on the consolidated financial position, operations or liquidity of the Company.
      Ten properties have leases granting the tenants options to purchase the property. Such options are exercisable at various times at appraised fair market value or at a fixed purchase price in excess of the Company’s depreciated cost of the asset. At December 31, 2004, the Company has received notice from one tenant who intends to exercise its option to purchase a building from the Company. This building is included in real estate held for sale at December 31, 2004.
      The Company has committed to the construction of certain industrial properties totaling approximately .6 million square feet (unaudited) of GLA. The estimated total construction costs are approximately $71.5 million (unaudited). Of this amount, approximately $59.1 million (unaudited) remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated completion cost stated above.
      At December 31, 2004, the Company had 20 other letters of credit outstanding in the aggregate amount of $15,710. These letters of credit expire between March 2005 and April 2007.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
Ground and Operating Lease Agreements
      Future minimum rental payments under the terms of all non-cancelable ground and operating leases under which the Company is the lessee, as of December 31, 2004, are as follows:
         
2005
     1,718  
2006
     1,745  
2007
     1,118  
2008
     920  
2009
     820  
Thereafter
     34,586  
       
Total
   $ 40,907  
       
16. Subsequent Events
      On January 24, 2005, the Company and the Operating Partnership paid a fourth quarter 2004 distribution of $.6950 per common share/unit, totaling approximately $34,255.
      On March 1, 2005, the Company declared a first quarter 2005 distribution of $.6950 per common share/unit on its common stock/units which is payable on April 18, 2005. The Company also declared first quarter 2005 dividends of $53.906 per share ($.53906 per Depositary Share), on its Series C Preferred Stock, totaling, in the aggregate, approximately $1,078, which is payable on March 31, 2005; semi-annual dividends of $3,118.00 per share ($31.18 per Depositary Share) on its Series F Preferred Stock, totaling, in the aggregate, approximately $1,559, which is payable on March 31, 2005; and semi-annual dividends of $3,618.00 per share ($36.18 per Depositary Share) on its Series G Preferred Stock, totaling, in the aggregate, approximately $904, which is payable on March 31, 2005.
      From January 1, 2005 to March 23, 2005, the Company awarded 189,878 shares of restricted common stock to certain employees and 1,012 shares of restricted common stock to certain Directors. These shares of restricted common stock had a fair value of approximately $8,014 on the date of grant. The restricted common stock vests over periods from one to ten years. Compensation expense will be charged to earnings over the respective vesting period.
      From January 1, 2005 to March 23, 2005, the Company acquired eight industrial properties and several land parcels for a total estimated investment of approximately $47,624 (approximately $1,507 of which was made through the issuance of limited partnership interests in the Operating Partnership (“Units”)). The Company also sold thirteen industrial properties and several land parcels for approximately $136,044 of gross proceeds during this period.
      On March 21, 2005, the Company, through wholly-owned limited liability companies in which a wholly-owned company of the Operating Partnership or the Operating Partnership is the sole member, entered into a joint venture arrangement with an institutional investor to invest in industrial properties (the “March 2005 Joint Venture”). The Company, through wholly-owned limited liability companies in which a wholly-owned company of the Operating Partnership or the Operating Partnership is the sole member, owns a ten percent equity interest in and provides property management, leasing, development, disposition and portfolio management services to the March 2005 Joint Venture.
      On January 13, 2005, the Company, through First Industrial Development Services, Inc., entered into an interest rate protection agreement which hedged the change in value of a build to suit development project the Company is in the process of constructing. This interest rate protection agreement has a

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands)
notional value of $50,000, is based on the five year treasury, has a strike rate of 3.936% and settles on October 4, 2005. Per Statement of Financial Accounting Standard No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“FAS 133”), fair value and cash flow hedge accounting for hedges of nonfinancial assets and liabilities is limited to hedges of the risk of changes in the market price of the entire hedged item because changes in the price of an ingredient or component of a nonfinancial item generally do not have a predictable, separately measurable effect on the price of the item. Since the interest rate protection agreement is hedging a component of the change in value of the build to suit development, the interest rate protection agreement doesn’t qualify for hedge accounting and the change in value of the interest rate protection agreement will be recognized immediately in net income as opposed to other comprehensive income.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share data)
17. Quarterly Financial Information (unaudited)
      The following table summarizes quarterly financial information of the Company. The first, second and third fiscal quarters of 2004 and all fiscal quarters in 2003 have been restated in accordance with FAS 144. Additionally, due to the adjustments to the allocation of the income tax (provision) benefit to different line items (See Note 11), the consolidated statements of operations for the quarters ended March 31, 2004 and 2003, June 30, 2004 and 2003, September 30, 2004 and 2003 and December 2003 have been restated. As a result, income from continuing operations, income from discontinued operations and gain on sale of real estate in this table will not agree to the income from continuing operations, income from discontinued operations and gain on sale of real estate presented in prior financial statements filed with the Securities and Exchange Commission.
      The impact on income from continuing operations, net of minority interest from amounts previously reported ($3,112, $(686), and $25,423 for the quarters ended March 31, June 30 and September 30, 2004, respectively) is to increase income from continuing operations, net of minority interest by $465, $782, and $1,863 for the quarters ended March 31, June 30, and September 30, 2004, respectively. The impact on gain on sale, net of minority interest from amounts previously reported ($2,782, $2,878 and $2,514 for the quarters March 31, June 30 and September 30, 2004, respectively) is to decrease gain on sale, net of minority interest by $(626), $(612) and $(832) for the quarters March 31, June 30 and September  30, 2004, respectively. The total impact on income (loss) from continuing operations, net of minority interest (including gain on sale of real estate, net of minority interest) was to increase basic and diluted EPS by $0.00, $0.00 and $0.03 for the quarters ended March 31, June 30, and September 30, 2004, respectively. The impact on income from discontinued operations, net of minority interest from amounts previously reported ($22,146, $24,047, and $8,547 for the quarters ended March 31, June 30, September 30, 2004, respectively) is to increase (decrease) income from discontinued operations, net of minority interest by $161, $(170), and $(1,031), respectively and decrease basic and diluted EPS by $0.00, $0.00, $(0.03) for the quarters March 31, June 30, and September 30, 2004, respectively.
      The impact on income from continuing operations, net of minority interest from amounts previously reported ($9,832, $2,599, $3,640 and $1,912 for the quarters ended March 31, June 30, September 30, and December 31, 2003 respectively) is to increase income from continuing operations, net of minority interest by $854, $1,115, $840, and $1,018 for the quarters ended March 31, June 30, September 30, and December 31, 2003, respectively. The impact on gain on sale from amounts previously reported ($1,104, $2,840, $3,929 and $5,428 for the quarters ended March 31, June 30, September 30 and December 31, 2003, respectively) is to decrease gain on sale, net of minority interest by $(22), $(298), $(1,532) and $(215) for the quarters ended March 31, June 30, September 30, and December 31, 2003, respectively. The total impact on income from continuing operations, net of minority interest (including gain on sale of real estate, net of minority interest) was to increase (decrease) basic and diluted EPS by $0.02, $0.02, $(0.02) and $0.02 for the quarters ended March 31, June 30, September 30, and December 31, 2003, respectively. The impact on income from discontinued operations, net of minority interest from amounts previously reported ($19,614, $18,034, $23,125 and $21,716 for the quarters ended March 31, June 30, September 30, and December 31, 2003, respectively) is to increase (decrease) income from discontinued operations, net of minority interest by $(832), $(817), $692 and $(803), respectively and increase (decrease) basic and diluted EPS by $(0.02), $(0.02), $0.02 and $(0.02) for the quarters ended March 31, June 30, September 30, and December 31, 2003, respectively.
      Net income available to common stockholders and basic and diluted EPS from net income available to common stockholders has not been affected.

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands, except share and per share data)
                                   
    Year Ended December 31, 2004
     
    Restated    
         
    First   Second   Third   Fourth
    Quarter   Quarter   Quarter   Quarter
                 
Total Revenues
   $ 78,407     $ 76,059     $ 78,386     $ 86,880  
Equity in Income (Loss) of Joint Ventures
     245       301       35,913       (8 )
Income (Loss) from Continuing Operations, Net of Income Tax and Minority Interest
     1,450       (1,171 )     26,283       (2,332 )
Income from Discontinued Operations, Net of Income Tax
     28,504       29,154       9,841       21,181  
Minority Interest Allocable to Discontinued Operations
     (4,070 )     (4,010 )     (1,299 )     (2,788 )
Gain on Sale of Real Estate, Net of Income Tax
     2,516       2,627       1,949       4,339  
Minority Interest Allocable to Gain on Sale of Real Estate
     (360 )     (361 )     (290 )     (557 )
Net Income
     28,040       26,239       36,484       19,843  
Preferred Stock Dividends
     (5,044 )     (4,790 )     (2,344 )     (2,310 )
Redemption of Preferred Stock
     —       (7,359 )     (600 )     —  
                         
Net Income Available to Common Stockholders
   $ 22,996     $ 14,090     $ 33,540     $ 17,533  
                         
Basic Earnings Per Share:
                                
 
(Loss) Income From Continuing Operations
   $ (0.04 )   $ (0.27 )   $ 0.62     $ (0.02 )
                         
 
Income From Discontinued Operations
   $ 0.62     $ 0.62     $ 0.21     $ 0.44  
                         
 
Net Income Available to Common Stockholders
   $ 0.58     $ 0.35     $ 0.83     $ 0.42  
                         
 
Weighted Average Shares Outstanding
     39,530       40,336       40,450       41,899  
                         
Diluted Earnings Per Share:
                                
 
(Loss) Income From Continuing Operations
   $ (0.04 )   $ (0.27 )   $ 0.61     $ (0.02 )
                         
 
Income From Discontinued Operations
   $ 0.61     $ 0.62     $ 0.21     $ 0.44  
                         
 
Net Income Available to Common Stockholders
   $ 0.57     $ 0.35     $ 0.82     $ 0.42  
                         
 
Weighted Average Shares Outstanding
     39,995       40,584       40,764       42,216  
                         

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands, except share and per share data)
                                   
    Year Ended December 31, 2003
     
    Restated
     
    First   Second   Third   Fourth
    Quarter   Quarter   Quarter   Quarter
                 
Total Revenues
   $ 81,814     $ 73,134     $ 76,051     $ 76,816  
Equity in Income (Loss) of Joint Ventures
     174       269       262       (166 )
Income from Continuing Operations, Net of Income Tax and Minority Interest
     8,679       2,575       3,816       889  
Income from Discontinued Operations, Net of Income Tax
     24,407       21,527       28,764       26,568  
Minority Interest Allocable to Discontinued Operations
     (3,595 )     (3,171 )     (4,288 )     (3,862 )
Gain on Sale of Real Estate, Net of Income Tax
     1,253       2,986       2,809       6,397  
Minority Interest Allocable to Gain Sale of Real Estate
     (194 )     (444 )     (407 )     (936 )
Net Income
     30,550       23,473       30,694       29,056  
Preferred Stock Dividends
     (5,044 )     (5,044 )     (5,044 )     (5,044 )
                         
Net Income Available to Common Stockholders
   $ 25,506     $ 18,429     $ 25,650     $ 24,012  
                         
Basic Earnings Per Share:
                                
 
Income (loss) From Continuing Operations
   $ 0.12     $ 0.00     $ 0.03     $ 0.03  
                         
 
Income from Discontinued Operations
   $ 0.54     $ 0.48     $ 0.63     $ 0.59  
                         
 
Net Income Available to Common Stockholders
   $ 0.66     $ 0.48     $ 0.67     $ 0.62  
                         
 
Weighted Average Shares Outstanding
     38,386       38,446       38,563       38,767  
                         
Diluted Earnings Per Share:
                                
 
Income (loss) From Continuing Operations
   $ 0.12     $ 0.00     $ 0.03     $ 0.03  
                         
 
Income from Discontinued Operations
   $ 0.54     $ 0.48     $ 0.63     $ 0.58  
                         
 
Net Income Available to Common Stockholders
   $ 0.66     $ 0.48     $ 0.66     $ 0.61  
                         
 
Weighted Average Shares Outstanding
     38,446       38,573       38,701       39,096  
                         

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FIRST INDUSTRIAL REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollars in thousands, except share and per share data)
18. Pro Forma Financial Information (unaudited)
      The following Pro Forma Condensed Statements of Operations for the years ended December 31, 2004 and 2003 (the “Pro Forma Statements”) are presented as if the acquisition of 66 operating industrial properties between January 1, 2004 and December 31, 2004 had been acquired on January 1, 2003. The Pro Forma Condensed Statements of Operations include all necessary adjustments to reflect the occurrence of purchases and sales of properties during 2004 as of January 1, 2003.
      The Pro Forma Statements are not necessarily indicative of what the Company’s results of operations would have been for the years ended December 31, 2004 and 2003, nor do they purport to present the future results of operations of the Company.
Pro Forma Condensed Statements of Operations
                 
    Year Ended   Year Ended
    December 31,   December 31,
    2004   2003
         
Total Revenues
   $ 336,625     $ 334,048  
Property Expenses
     (113,175 )     (107,279 )
General and Administrative Expense
     (39,569 )     (26,953 )
Amortization of Deferred Financing Costs
     (1,931 )     (1,764 )
Depreciation and Other Amortization
     (102,256 )     (87,428 )
Total Other Income/ Expense
     (92,150 )     (88,799 )
             
(Loss) Income from Continuing Operations Before Equity in Income of Joint Ventures and Income Allocated to Minority Interest
     (12,456 )     21,825  
Income Tax Benefit
     6,746       3,205  
Equity in Income of Joint Ventures, Net
     36,451       539  
Minority Interest Allocable to Continuing Operations
     (1,138 )     (794 )
             
Income from Continuing Operations
   $ 29,603     $ 24,775  
             
Income from Continuing Operations Available to Common Stockholders, Net of Minority Interest Per Weighted Average Common Share Outstanding:
                
Basic
   $ .42     $ .42  
             
Diluted
   $ .42     $ .42  
             

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Report of Independent Registered Public Accounting Firm on
Financial Statement Schedule
To the Board of Directors and Stockholders
of First Industrial Realty Trust, Inc.:
      Our audits of the consolidated financial statements, of management’s assessment of the effectiveness of internal control over financial reporting and of the effectiveness of internal control over financial reporting referred to in our report dated March 30, 2005 of First Industrial Realty Trust, Inc. and its subsidiaries which report consolidated financial statements, and assessments are included in this Annual Report on Form 10-K also included an audit of the financial statement schedule listed in the Index to Financial Statements and Financial Statement Schedule on Page F-1 of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.
PricewaterhouseCoopers LLP
Chicago, Illinois
March 30, 2005

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FIRST INDUSTRIAL REALTY TRUST, INC.
SCHEDULE III:
REAL ESTATE AND ACCUMULATED DEPRECIATION
As Of December 31, 2004
(Dollars in thousands)
                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Atlanta
                                                                                        
4250 River Green Parkway
     Duluth, GA             $ 264       1,522     $ 237     $ 264     $ 1,759     $ 2,023     $ 467       1988       (o)  
3400 Corporate Parkway
     Duluth, GA               281       1,621       337       281       1,958       2,239       576       1987       (o)  
3450 Corporate Parkway
     Duluth, GA               506       2,904       358       506       3,262       3,768       841       1988       (o)  
3500 Corporate Parkway
     Duluth, GA               260       1,500       176       260       1,676       1,936       471       1991       (o)  
3425 Corporate Parkway
     Duluth, GA               385       2,212       257       385       2,469       2,854       681       1990       (o)  
1650 GA Highway 155
     McDonough, GA               788       4,544       345       788       4,889       5,677       1,432       1991       (o)  
14101 Industrial Park Boulevard
     Covington, GA               285       1,658       710       285       2,368       2,653       529       1984       (o)  
801-804 Blacklawn Road
     Conyers, GA               361       2,095       831       361       2,926       3,287       696       1982       (o)  
1665 Dogwood Drive
     Conyers, GA               635       3,662       249       635       3,911       4,546       1,058       1973       (o)  
1715 Dogwood Drive
     Conyers, GA               288       1,675       251       288       1,926       2,214       579       1973       (o)  
11235 Harland Drive
     Covington, GA               125       739       93       125       832       957       220       1988       (o)  
4050 Southmeadow Parkway
     Atlanta, GA               401       2,813       302       425       3,091       3,516       804       1991       (o)  
4051 Southmeadow Parkway
     Atlanta, GA               726       4,130       1,078       726       5,208       5,934       1,391       1989       (o)  
4071 Southmeadow Parkway
     Atlanta, GA               750       4,460       1,084       828       5,466       6,294       1,471       1991       (o)  
4081 Southmeadow Parkway
     Atlanta, GA               1,012       5,918       881       1,157       6,654       7,811       1,648       1989       (o)  
3312 N. Berkeley Lake Road(r)
     Duluth, GA               2,937       5,450       13,169       3,052       18,504       21,556       4,209       1969/90       (o)  
370 Great Southwest Parkway(k)
     Atlanta, GA               527       2,984       556       546       3,521       4,067       766       1986       (o)  
955 Cobb Place
     Kennesaw, GA               780       4,420       535       804       4,931       5,735       894       1991       (o)  
2039 Monier Blvd
     Lithia Springs, GA               651       2,770       (3 )     501       2,917       3,418       357       1999       (o)  
1005 Sigman Road
     Conyers, GA               566       3,134       153       574       3,279       3,853       434       1986       (o)  
2050 East Park Drive
     Conyers, GA               452       2,504       194       459       2,691       3,150       440       1998       (o)  
201 Greenwood
     McDonough, GA               2,066       304       21,114       2,521       20,963       23,484       2,648       1999       (o)  
220 Greenwood Court
     McDonough, GA               2,015       —       8,819       1,700       9,134       10,834       704       2000       (o)  
1255 Oakbrook Drive
     Norcross, GA               195       1,107       78       197       1,183       1,380       103       1984       (o)  
1256 Oakbrook Drive
     Norcross, GA               336       1,907       318       339       2,222       2,561       210       1984       (o)  
1265 Oakbrook Drive
     Norcross, GA               307       1,742       179       309       1,919       2,228       159       1984       (o)  
1266 Oakbrook Drive
     Norcross, GA               234       1,326       52       235       1,377       1,612       116       1984       (o)  

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                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Atlanta — (Continued)
                                                                                        
1275 Oakbrook Drive
     Norcross, GA               400       2,269       96       403       2,362       2,765       199       1986       (o)  
1280 Oakbrook Drive
     Norcross, GA               281       1,592       236       283       1,826       2,109       165       1986       (o)  
1300 Oakbrook Drive
     Norcross, GA               420       2,381       63       423       2,441       2,864       208       1986       (o)  
1325 Oakbrook Drive
     Norcross, GA               332       1,879       200       334       2,077       2,411       173       1986       (o)  
1351 Oakbrook Drive
     Norcross, GA               370       2,099       115       373       2,211       2,584       201       1984       (o)  
1346 Oakbrook Drive
     Norcross, GA               740       4,192       121       744       4,309       5,053       367       1985       (o)  
1412 Oakbrook Drive
     Norcross, GA               313       1,776       148       315       1,922       2,237       159       1985       (o)  
7800 The Bluffs(r)
     Austell, GA               490       2,415       397       496       2,806       3,302       150       1995       (o)  
Greenwood Industrial Park
     McDonough, GA               1,550       —       7,490       1,550       7,490       9,040       64       2003       (o)  
3060 South Park Blvd
     Ellenwood, GA               1,600       12,464       961       1,603       13,422       15,025       687       1992       (o)  
1122 Milledge Street(r)
     East Point, GA               210       1,190       49       233       1,216       1,449       3       1956/1999       (o)  
Baltimore
                                                                                        
3431 Benson
     Baltimore, MD               553       3,062       250       562       3,303       3,865       551       1988       (o)  
1811 Portal
     Baltimore, MD               327       1,811       344       354       2,128       2,482       468       1987       (o)  
1831 Portal
     Baltimore, MD               268       1,486       452       290       1,916       2,206       421       1990       (o)  
1820 Portal
     Baltimore, MD       (f)       884       4,891       454       899       5,330       6,229       885       1982       (o)  
6615 Tributary
     Baltimore, MD               420       2,327       148       432       2,463       2,895       424       1987       (o)  
4845 Governors Way
     Frederick, MD               810       4,487       412       824       4,885       5,709       798       1988       (o)  
8900 Yellow Brick Road
     Baltimore, MD               447       2,473       372       475       2,817       3,292       477       1982       (o)  
7476 New Ridge
     Hanover, MD               394       2,182       208       401       2,383       2,784       419       1987       (o)  
504 Advantage Way(r)
     Aberdeen, MD               2,799       15,864       574       2,802       16,435       19,237       699       1987/92       (o)  
9700 Martin Luther King Hwy
     Lanham, MD               700       1,920       487       700       2,407       3,107       137       1980       (o)  
9730 Martin Luther King Hwy
     Lanham, MD               500       955       634       500       1,589       2,089       98       1980       (o)  
4600 Boston Way
     Lanham, MD               1,400       2,482       248       1,400       2,730       4,130       133       1980       (o)  
4621 Boston Way(r)
     Lanham, MD               1,100       3,070       245       1,100       3,315       4,415       145       1980       (o)  
4720 Boston Way(r)
     Lanham, MD               1,200       2,174       853       1,200       3,027       4,227       146       1979       (o)  
2250 Randolph Drive
     Dulles, VA               3,200       8,187       26       3,208       8,205       11,413       73       1999       (o)  
22630 Dulles Summit Court
     Dulles, VA               2,200       9,346       29       2,206       9,369       11,575       126       1998       (o)  
9800 Martin Luther King Hwy
     Lanham, MD               1,200       2,457       543       1,200       3,000       4,200       132       1978       (o)  
21550 Beaumeade Circle
     Ashburn, VA               1,100       2,758       10       1,103       2,765       3,868       34       1990       (o)  
21580 Beaumeade Circle
     Ashburn, VA               1,600       3,772       15       1,605       3,782       5,387       42       1990       (o)  
4501 Hollins Ferry Road
     Baltimore, MD               3,000       10,108       222       3,058       10,272       13,330       58       1982/92       (o)  

S-3

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Central Pennsylvania
                                                                                        
1214-B Freedom Road
     Cranberry Township, PA               31       994       613       200       1,438       1,638       705       1982       (o)  
401 Russell Drive
     Middletown, PA               262       857       1,863       287       2,695       2,982       1,206       1990       (o)  
2700 Commerce Drive
     Middletown, PA               196       997       710       206       1,697       1,903       763       1990       (o)  
2701 Commerce Drive
     Middletown, PA               141       859       1,172       164       2,008       2,172       787       1989       (o)  
2780 Commerce Drive
     Middletown, PA               113       743       1,051       209       1,698       1,907       790       1989       (o)  
7125 Grayson Road
     Harrisburg, PA               1,514       8,779       143       1,514       8,922       10,436       2,369       1991       (o)  
7253 Grayson Road
     Harrisburg, PA               894       5,168       215       894       5,383       6,277       1,562       1990       (o)  
5020 Louise Drive
     Mechanicsburg, PA               707       —       2,800       716       2,791       3,507       635       1995       (o)  
7195 Grayson
     Harrisburg, PA               478       2,771       190       479       2,960       3,439       732       1994       (o)  
3380 Susquehanna Trail North
     York, PA               450       2,550       152       467       2,685       3,152       522       1990       (o)  
350 Old Silver Springs Road
     Mechanicsburg, PA               510       2,890       4,480       541       7,339       7,880       1,267       1968/97       (o)  
16522 Hunters Green Parkway
     Hagerstown, MD       (h)       1,390       13,104       3,945       1,863       16,576       18,439       715       2000       (o)  
18212 Shawley Drive
     Hagerstown, MD               1,000       5,847       106       1,016       5,937       6,953       69       1992       (o)  
270 Old Silver Spring Road
     Mechanicsburg, PA               350       —       3,649       350       3,649       3,999       231       2001       (o)  
Covington (CAT)
     Gouldsboro, PA               135       —       9,557       1,040       8,652       9,692       74       2003       (o)  
37 Valleyview Business Park
     Jessup, PA               576       —       2,490       542       2,524       3,066       5       2004       (o)  
Chicago
                                                                                        
720-730 Landwehr Road
     Northbrook, IL               521       2,982       1,305       521       4,287       4,808       988       1978       (o)  
20W201 101st Street
     Lemont, IL               967       5,554       882       968       6,435       7,403       1,697       1988       (o)  
3600 West Pratt Avenue
     Lincolnwood, IL               1,050       5,767       1,346       1,050       7,113       8,163       1,788       1953/88       (o)  
6750 South Sayre Avenue
     Bedford Park, IL               224       1,309       443       224       1,752       1,976       449       1975       (o)  
585 Slawin Court
     Mount Prospect, IL               611       3,505       183       611       3,688       4,299       928       1992       (o)  
2300 Windsor Court
     Addison, IL               688       3,943       552       696       4,487       5,183       1,272       1986       (o)  
3505 Thayer Court
     Aurora, IL               430       2,472       45       430       2,517       2,947       671       1989       (o)  
305-311 Era Drive
     Northbrook, IL               200       1,154       192       205       1,341       1,546       371       1978       (o)  
4330 South Racine Avenue
     Chicago, IL               448       1,893       549       468       2,422       2,890       1,787       1978       (o)  
12241 Melrose Street
     Franklin Park, IL               332       1,931       1,940       469       3,734       4,203       972       1969       (o)  
3150-3160 MacArthur Boulevard
     Northbrook, IL               439       2,518       112       429       2,640       3,069       771       1978       (o)  
365 North Avenue
     Carol Stream, IL               1,081       6,882       2,659       1,111       9,511       10,622       2,231       1969       (o)  
2942 MacArthur Boulevard
     Northbrook, IL               315       1,803       313       311       2,120       2,431       721       1979       (o)  
305-307 East North Ave
     Carol Stream, IL               126       —       2,737       128       2,735       2,863       302       1999       (o)  
11939 S Central Avenue
     Alsip, IL               1,208       6,843       2,165       1,305       8,911       10,216       1,578       1972       (o)  
405 East Shawmut
     LaGrange, IL               368       2,083       171       387       2,235       2,622       411       1965       (o)  
1010-50 Sesame Street
     Bensenville, IL               979       5,546       2,073       1,048       7,550       8,598       1,111       1976       (o)  
7401 South Pulaski
     Chicago, IL               664       3,763       1,304       669       5,062       5,731       934       1975/86       (o)  

S-4

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Chicago — (Continued)
                                                                                        
7501 S. Pulaski
     Chicago, IL               360       2,038       963       318       3,043       3,361       675       1975/86       (o)  
385 Fenton Lane
     West Chicago, IL               868       4,918       567       884       5,469       6,353       1,063       1990       (o)  
335 Crossroad Parkway
     Bolingbrook, IL               1,560       8,840       863       1,585       9,678       11,263       1,763       1996       (o)  
905 Paramount
     Batavia, IL               243       1,375       390       252       1,756       2,008       309       1977       (o)  
1005 Paramount
     Batavia, IL               282       1,600       377       293       1,966       2,259       346       1978       (o)  
2120-24 Roberts
     Broadview, IL               220       1,248       430       231       1,667       1,898       381       1960       (o)  
700 Business Center Drive
     Mount Prospect, IL               270       1,492       120       288       1,594       1,882       162       1980       (o)  
555 Business Center Drive
     Mount Prospect, IL               241       1,336       97       252       1,422       1,674       147       1981       (o)  
800 Business Center Drive
     Mount Prospect, IL               631       3,493       233       666       3,691       4,357       376       1988/99       (o)  
580 Slawin Court
     Mount Prospect, IL               233       1,292       140       254       1,411       1,665       144       1985       (o)  
1150 Feehanville Drive
     Mount Prospect, IL               260       1,437       139       273       1,563       1,836       171       1983       (o)  
1200 Business Center D rive
     Mount Prospect, IL               765       4,237       387       814       4,575       5,389       517       1988/2000       (o)  
1331 Business Center Drive
     Mount Prospect, IL               235       1,303       136       255       1,419       1,674       145       1985       (o)  
19W661 101st Street
     Lemont, IL               1,200       6,643       356       1,220       6,979       8,199       554       1988       (o)  
175 Wall Street
     Glendale Heights, IL               427       2,363       61       433       2,418       2,851       175       1990       (o)  
800-820 Thorndale Avenue
     Bensenville, IL               751       4,159       70       761       4,219       4,980       220       1985       (o)  
830-890 Supreme Drive
     Bensenville, IL               671       3,714       247       679       3,953       4,632       257       1981       (o)  
1661 Feehanville Drive
     Mount Prospect, IL               985       5,455       644       1,044       6,040       7,084       612       1986       (o)  
2250 Arthur Avenue
     Elk Grove Village, IL               800       1,543       43       809       1,577       2,386       77       1973/86       (o)  
1850 Toughy & 1158-60 McCage Ave
     Elk Grove Village, IL               1,500       4,842       57       1,514       4,885       6,399       130       1978       (o)  
501 Airport Road(r)
     Aurora, IL               698       —       4,616       694       4,620       5,314       230       2002       (o)  
251 Airport Road(r)
     Aurora, IL               990       —       6,246       983       6,253       7,236       353       2002       (o)  
Cincinnati
                                                                                        
9900-9970 Princeton
     Cincinnati, OH               545       3,088       1,688       566       4,755       5,321       1,222       1970       (o)  
2940 Highland Avenue
     Cincinnati, OH               1,717       9,730       2,194       1,772       11,869       13,641       2,788       1969/74       (o)  
4700-4750 Creek Road
     Blue Ash, OH               1,080       6,118       802       1,109       6,891       8,000       1,573       1960       (o)  
12072 Best Place
     Springboro, OH               426       —       3,182       443       3,165       3,608       542       1984       (o)  
901 Pleasant Valley Drive
     Springboro, OH               304       1,721       301       316       2,010       2,326       447       1984/94       (o)  
4440 Mulhauser Road
     Cincinnati, OH               1,067       39       5,329       655       5,780       6,435       1,008       1999       (o)  
4434 Mulhauser Road
     Cincinnati, OH               444       16       4,712       463       4,709       5,172       759       1999       (o)  
9449 Glades Drive
     Hamilton, OH               465       —       3,987       2       4,450       4,452       383       1999       (o)  
420 Wars Corner Road(r)
     Loveland, OH               600       1,083       928       606       2,005       2,611       182       1985       (o)  
422 Wards Corner Road
     Loveland, OH               600       1,811       330       605       2,136       2,741       224       1985       (o)  

S-5

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Cincinnati — (Continued)
                                                                                        
7625 Empire Drive
     Florence, KY               961       5,444       237       996       5,646       6,642       12       1960       (o)  
4436 Muhlhauser Road(r)
     Hamilton, OH               630       —       5,377       630       5,377       6,007       358       2001       (o)  
4438 Muhlhauser Road(r)
     Hamilton, OH               779       —       6,958       779       6,958       7,737       439       2000       (o)  
10901 Kenwood(r)
     Blue Ash, OH               750       1,650       194       1,080       1,514       2,594       103       1960       (o)  
Columbus
                                                                                        
3800 Lockbourne Industrial Pkwy
     Columbus, OH               1,133       6,421       (112 )     1,045       6,397       7,442       1,383       1986       (o)  
3880 Groveport Road
     Columbus, OH               2,145       12,154       322       1,955       12,666       14,621       2,671       1986       (o)  
1819 North Walcutt Road
     Columbus, OH               810       4,590       (453 )     637       4,310       4,947       995       1973       (o)  
4300 Cemetery Road(r)
     Hillard, OH               1,103       6,248       (1,764 )     764       4,823       5,587       1,009       1968/74       (o)  
4115 Leap Road(k)
     Hillard, OH               758       4,297       482       756       4,781       5,537       765       1977       (o)  
3300 Lockbourne
     Columbus, OH               708       3,920       1,226       710       5,144       5,854       933       1964       (o)  
Dallas/ Fort Worth
                                                                                        
1275-1281 Roundtable Drive
     Dallas, TX               148       839       53       117       923       1,040       189       1966       (o)  
2406-2416 Walnut Ridge
     Dallas, TX               178       1,006       289       183       1,290       1,473       234       1978       (o)  
12750 Perimeter Drive
     Dallas, TX               638       3,618       352       660       3,948       4,608       700       1979       (o)  
1324-1343 Roundtable Drive
     Dallas, TX               178       1,006       294       184       1,294       1,478       284       1972       (o)  
2401-2419 Walnut Ridge
     Dallas, TX               148       839       119       153       953       1,106       169       1978       (o)  
4248-4252 Simonton
     Farmers Ranch, TX               888       5,032       408       920       5,408       6,328       1,011       1973       (o)  
900-906 Great Southwest Pkwy
     Arlington, TX               237       1,342       566       270       1,875       2,145       292       1972       (o)  
2179 Shiloh Road
     Garland, TX               251       1,424       115       256       1,534       1,790       299       1982       (o)  
2159 Shiloh Road
     Garland, TX               108       610       55       110       663       773       127       1982       (o)  
2701 Shiloh Road
     Garland, TX               818       4,636       1,293       923       5,824       6,747       1,074       1981       (o)  
12784 Perimeter Drive(l)
     Dallas, TX               350       1,986       509       396       2,449       2,845       469       1981       (o)  
3000 West Commerce
     Dallas, TX               456       2,584       530       469       3,101       3,570       518       1980       (o)  
3030 Hansboro
     Dallas, TX               266       1,510       481       276       1,981       2,257       387       1971       (o)  
5222 Cockrell Hill
     Dallas, TX               296       1,677       389       306       2,056       2,362       339       1973       (o)  
405-407 113th
     Arlington, TX               181       1,026       257       185       1,279       1,464       288       1969       (o)  
816 111th Street
     Arlington, TX               251       1,421       62       258       1,476       1,734       266       1972       (o)  
7341 Dogwood Park
     Richland Hills, TX               79       435       251       84       681       765       113       1973       (o)  
7427 Dogwood Park
     Richland Hills, TX               96       532       89       102       615       717       92       1973       (o)  
7348-54 Tower Street
     Richland Hills, TX               88       489       199       94       682       776       95       1978       (o)  
7370 Dogwood Park
     Richland Hills, TX               91       503       100       96       598       694       103       1987       (o)  
7339-41 Tower Street
     Richland Hills, TX               98       541       78       104       613       717       100       1980       (o)  
7437-45 Tower Street
     Richland Hills, TX               102       563       78       108       635       743       103       1977       (o)  

S-6

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Dallas/ Fort Worth — (Continued)
                                                                                        
7331-59 Airport Freeway
     Richland Hills, TX               354       1,958       422       372       2,362       2,734       420       1987       (o)  
7338-60 Dogwood Park
     Richland Hills, TX               106       587       107       112       688       800       130       1978       (o)  
7450-70 Dogwood Park
     Richland Hills, TX               106       584       175       112       753       865       164       1985       (o)  
7423-49 Airport Freeway
     Richland Hills, TX               293       1,621       546       308       2,152       2,460       504       1985       (o)  
7400 Whitehall Street
     Richland Hills, TX               109       603       81       115       678       793       104       1994       (o)  
1602-1654 Terre Colony
     Dallas, TX               458       2,596       239       468       2,825       3,293       378       1981       (o)  
3330 Duncanville Road
     Dallas, TX               197       1,114       27       199       1,139       1,338       130       1987       (o)  
6851-6909 Snowden Road
     Fort Worth, TX               1,025       5,810       434       1,038       6,231       7,269       832       1985/86       (o)  
2351-2355 Merritt Drive
     Garland, TX               101       574       128       103       700       803       93       1986       (o)  
10575 Vista Park
     Dallas, TX               366       2,074       111       371       2,180       2,551       245       1988       (o)  
701-735 North Plano Road
     Richardson, TX               696       3,944       111       705       4,046       4,751       470       1972/94       (o)  
2259 Merritt Drive
     Garland, TX               96       544       67       97       610       707       100       1986       (o)  
2260 Merritt Drive
     Garland, TX               319       1,806       54       323       1,856       2,179       212       1986/99       (o)  
2220 Merritt Drive
     Garland, TX               352       1,993       266       356       2,255       2,611       243       1986/2000       (o)  
2010 Merritt Drive
     Garland, TX               350       1,981       227       354       2,204       2,558       364       1986       (o)  
2363 Merritt Drive
     Garland, TX               73       412       61       74       472       546       51       1986       (o)  
2447 Merritt Drive
     Garland, TX               70       395       12       71       406       477       46       1986       (o)  
2465-2475 Merritt Drive
     Garland, TX               91       514       14       92       527       619       60       1986       (o)  
2485-2505 Merritt Drive
     Garland, TX               431       2,440       408       436       2,843       3,279       284       1986       (o)  
2081 Hutton Drive — Bldg 1(l)
     Carrollton, TX               448       2,540       451       453       2,986       3,439       370       1981       (o)  
2150 Hutton Drive
     Carrollton, TX               192       1,089       292       194       1,379       1,573       176       1980       (o)  
2110 Hutton Drive
     Carrollton, TX               374       2,117       187       377       2,301       2,678       260       1985       (o)  
2025 McKenzie Drive
     Carrollton, TX               437       2,478       431       442       2,904       3,346       338       1985       (o)  
2019 McKenzie Drive
     Carrollton, TX               502       2,843       206       507       3,044       3,551       348       1985       (o)  
1420 Valwood Parkway — Bldg 1(k)
     Carrollton, TX               460       2,608       558       466       3,160       3,626       354       1986       (o)  
1620 Valwood Parkway(l)
     Carrollton, TX               1,089       6,173       1,133       1,100       7,295       8,395       847       1986       (o)  
1505 Luna Road — Bldg II
     Carrollton, TX               167       948       60       169       1,006       1,175       111       1988       (o)  
1625 West Crosby Road
     Carrollton, TX               617       3,498       784       631       4,268       4,899       683       1988       (o)  
2029-2035 McKenzie Drive
     Carrollton, TX               330       1,870       991       306       2,885       3,191       425       1985       (o)  
1840 Hutton Drive(k)
     Carrollton, TX               811       4,597       539       819       5,128       5,947       521       1986       (o)  
1420 Valwood Pkwy — Bldg II
     Carrollton, TX               373       2,116       358       377       2,470       2,847       273       1986       (o)  
2015 McKenzie Drive
     Carrollton, TX               510       2,891       459       516       3,344       3,860       375       1986       (o)  
2105 McDaniel Drive
     Carrollton, TX               502       2,844       734       507       3,573       4,080       342       1986       (o)  
2009 McKenzie Drive
     Carrollton, TX               476       2,699       350       481       3,044       3,525       337       1987       (o)  

S-7

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Dallas/ Fort Worth — (Continued)
                                                                                        
1505 Luna Road — Bldg I
     Carrollton, TX               521       2,953       211       529       3,156       3,685       278       1988       (o)  
900-1100 Avenue S
     Grand Prairie, TX               623       3,528       337       629       3,859       4,488       295       1985       (o)  
15001 Trinity Blvd
     Ft. Worth, TX               529       2,998       44       534       3,037       3,571       177       1984       (o)  
Plano Crossing(m)
     Plano, TX               1,961       11,112       134       1,981       11,226       13,207       655       1998       (o)  
7413A-C Dogwood Park
     Richland Hills, TX               110       623       102       111       724       835       39       1990       (o)  
7450 Tower Street
     Richland Hills, TX               36       204       4       36       208       244       13       1977       (o)  
7436 Tower Street
     Richland Hills, TX               57       324       61       58       384       442       25       1979       (o)  
7501 Airport Freeway
     Richland Hills, TX               113       638       50       115       686       801       44       1983       (o)  
7426 Tower Street
     Richland Hills, TX               76       429       6       76       435       511       25       1978       (o)  
7427-7429 Tower Street
     Richland Hills, TX               75       427       15       76       441       517       25       1981       (o)  
2840-2842 Handley Ederville Rd
     Richland Hills, TX               112       635       15       113       649       762       38       1977       (o)  
7451-7477 Airport Freeway
     Richland Hills, TX               256       1,453       150       259       1,600       1,859       116       1984       (o)  
7415 Whitehall Street
     Richland Hills, TX               372       2,107       88       375       2,192       2,567       139       1986       (o)  
7450 Whitehall Street
     Richland Hills, TX               104       591       10       105       600       705       34       1978       (o)  
7430 Whitehall Street
     Richland Hills, TX               143       809       14       144       822       966       47       1985       (o)  
7420 Whitehall Street
     Richland Hills, TX               110       621       23       111       643       754       41       1985       (o)  
300 Wesley Way
     Richland Hills, TX               208       1,181       18       211       1,196       1,407       68       1995       (o)  
825-827 Avenue H(k),(r)
     Arlington, TX               600       3,006       95       604       3,097       3,701       53       1979       (o)  
1013-31 Avenue M(r)
     Grand Prairie, TX               300       1,504       17       302       1,519       1,821       26       1978       (o)  
1172-84 113th Street(k)
     Grand Prairie, TX               700       3,509       34       705       3,538       4,243       52       1980       (o)  
1200-16 Avenue H(k)
     Arlington, TX               600       2,846       42       604       2,884       3,488       47       1981/82       (o)  
1322-66 N. Carrier Parkway(l)
     Grand Prairie, TX               1,000       5,012       52       1,006       5,058       6,064       74       1979       (o)  
2401-2407 Centennial Dr. 
     Arlington, TX               600       2,534       64       604       2,594       3,198       45       1977       (o)  
3111 West Commerce Street
     Dallas, TX               1,000       3,364       43       1,011       3,396       4,407       17       1979       (o)  
2104 Hutton Drive
     Carrollton, TX               246       1,393       59       249       1,449       1,698       157       1990       (o)  
7451 Dogwood Park
     Richland Hills, TX               133       753       195       134       947       1,081       103       1977       (o)  
2821 Cullen Street
     Fort Worth, TX               71       404       6       72       409       481       23       1961       (o)  
1500 Broad Street
     Mansfield, TX               250       1,617       288       301       1,854       2,155       57       1969/92       (o)  
2301 Centennial Dr. 
     Arlington, TX               600       2,377       19       603       2,393       2,996       38       1970       (o)  
Denver
                                                                                        
7100 North Broadway — 1
     Denver, CO               201       1,141       418       215       1,545       1,760       372       1978       (o)  
7100 North Broadway — 2
     Denver, CO               203       1,150       353       204       1,502       1,706       397       1978       (o)  
7100 North Broadway — 3
     Denver, CO               139       787       239       140       1,025       1,165       279       1978       (o)  
7100 North Broadway — 5
     Denver, CO               180       1,018       219       178       1,239       1,417       310       1978       (o)  

S-8

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Denver — (Continued)
                                                                                        
7100 North Broadway — 6
     Denver, CO               269       1,526       475       271       1,999       2,270       503       1978       (o)  
20100 East 32nd Avenue Parkway
     Aurora, CO               333       1,888       250       314       2,157       2,471       556       1997       (o)  
5454 Washington
     Denver, CO               154       873       252       156       1,123       1,279       256       1985       (o)  
700 West 48th Street
     Denver, CO               302       1,711       309       307       2,015       2,322       407       1984       (o)  
702 West 48th Street
     Denver, CO               135       763       214       139       973       1,112       268       1984       (o)  
6425 North Washington
     Denver, CO               374       2,118       377       385       2,484       2,869       536       1983       (o)  
3370 North Peoria Street
     Aurora, CO               163       924       201       163       1,125       1,288       343       1978       (o)  
3390 North Peoria Street
     Aurora, CO               145       822       100       147       920       1,067       191       1978       (o)  
3508-3538 North Peoria Street
     Aurora, CO               260       1,472       448       264       1,916       2,180       405       1978       (o)  
3568 North Peoria Street
     Aurora, CO               222       1,260       288       225       1,545       1,770       365       1978       (o)  
4785 Elati
     Denver, CO               173       981       249       175       1,228       1,403       308       1972       (o)  
4770 Fox Street
     Denver, CO               132       750       60       134       808       942       170       1972       (o)  
1550 W. Evans
     Denver, CO               388       2,200       434       385       2,637       3,022       503       1975       (o)  
3751-71 Revere Street
     Denver, CO               262       1,486       234       267       1,715       1,982       330       1980       (o)  
3871 Revere
     Denver, CO               361       2,047       422       368       2,462       2,830       407       1980       (o)  
4570 Ivy Street
     Denver, CO               219       1,239       288       220       1,526       1,746       390       1985       (o)  
5855 Stapleton Drive North
     Denver, CO               288       1,630       247       290       1,875       2,165       364       1985       (o)  
5885 Stapleton Drive North
     Denver, CO               376       2,129       246       380       2,371       2,751       461       1985       (o)  
5977-5995 North Broadway
     Denver, CO               268       1,518       241       271       1,756       2,027       325       1978       (o)  
2952-5978 North Broadway
     Denver, CO               414       2,346       733       422       3,071       3,493       644       1978       (o)  
4721 Ironton Street
     Denver, CO               232       1,313       1,518       236       2,827       3,063       739       1969       (o)  
7100 North Broadway — 7
     Denver, CO               215       1,221       266       217       1,485       1,702       362       1985       (o)  
7100 North Broadway — 8
     Denver, CO               79       448       211       80       658       738       223       1985       (o)  
6804 East 48th Avenue
     Denver, CO               253       1,435       266       256       1,698       1,954       313       1973       (o)  
445 Bryant Street
     Denver, CO               1,831       10,219       1,670       1,829       11,891       13,720       2,064       1960       (o)  
East 47th Drive — A
     Denver, CO               474       2,689       112       441       2,834       3,275       643       1997       (o)  
9500 West 49th Street — A
     Wheatridge, CO               283       1,625       279       286       1,901       2,187       364       1997       (o)  
9500 West 49th Street — B
     Wheatridge, CO               225       1,272       33       226       1,304       1,530       242       1997       (o)  
9500 West 49th Street — C
     Wheatridge, CO               602       3,409       98       600       3,509       4,109       658       1997       (o)  
9500 West 49th Street — D
     Wheatridge, CO               271       1,537       181       246       1,743       1,989       495       1997       (o)  
8100 South Park Way — A
     Littleton, CO               442       2,507       71       423       2,597       3,020       490       1997       (o)  
8100 South Park Way — B
     Littleton, CO               103       582       291       104       872       976       272       1984       (o)  
8100 South Park Way — C
     Littleton, CO               568       3,219       223       575       3,435       4,010       610       1984       (o)  
451-591 East 124th Avenue
     Littleton, CO               383       2,145       685       383       2,830       3,213       501       1979       (o)  

S-9

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Denver — (Continued)
                                                                                        
608 Garrison Street
     Lakewood, CO               265       1,501       404       267       1,903       2,170       364       1984       (o)  
610 Garrison Street
     Lakewood, CO               264       1,494       404       266       1,896       2,162       387       1984       (o)  
15000 West 6th Avenue
     Golden, CO               913       5,174       876       916       6,047       6,963       1,242       1985       (o)  
14998 West 6th Avenue Bldg E
     Golden, CO               565       3,199       272       568       3,468       4,036       691       1995       (o)  
14998 West 6th Avenue Bldg F
     Englewood, CO               269       1,525       222       271       1,745       2,016       440       1995       (o)  
12503 East Euclid Drive
     Denver, CO               1,219       6,905       676       1,208       7,592       8,800       1,529       1986       (o)  
6547 South Racine Circle
     Denver, CO               748       4,241       313       739       4,563       5,302       1,095       1996       (o)  
7800 East Iliff Avenue
     Denver, CO               188       1,067       96       190       1,161       1,351       225       1983       (o)  
2369 South Trenton Way
     Denver, CO               292       1,656       247       294       1,901       2,195       446       1983       (o)  
2422 S. Trenton Way
     Denver, CO               241       1,364       209       243       1,571       1,814       301       1983       (o)  
2452 South Trenton Way
     Denver, CO               421       2,386       151       426       2,532       2,958       486       1983       (o)  
1600 South Abilene
     Aurora, CO               465       2,633       89       467       2,720       3,187       511       1986       (o)  
1620 South Abilene
     Aurora, CO               268       1,520       123       270       1,641       1,911       347       1986       (o)  
1640 South Abilene
     Aurora, CO               368       2,085       142       382       2,213       2,595       424       1986       (o)  
13900 East Florida Ave
     Aurora, CO               189       1,071       89       190       1,159       1,349       229       1986       (o)  
14401-14492 East 33rd Place
     Aurora, CO               445       2,519       241       440       2,765       3,205       552       1979       (o)  
11701 East 53rd Avenue
     Denver, CO               416       2,355       118       422       2,467       2,889       447       1985       (o)  
5401 Oswego Street
     Denver, CO               273       1,547       397       278       1,939       2,217       452       1985       (o)  
3811 Joilet(r)
     Denver, CO               735       4,166       238       752       4,387       5,139       793       1977       (o)  
2630 West 2nd Avenue
     Denver, CO               51       286       81       51       367       418       58       1970       (o)  
2650 West 2nd Avenue
     Denver, CO               221       1,252       90       223       1,340       1,563       260       1970       (o)  
14818 West 6th Avenue Bldg A
     Golden, CO               494       2,799       327       468       3,152       3,620       740       1985       (o)  
14828 West 6th Avenue Bldg B
     Golden, CO               519       2,942       510       503       3,468       3,971       683       1985       (o)  
12055 E 49th Ave/4955 Peoria
     Denver, CO               298       1,688       559       305       2,240       2,545       501       1984       (o)  
4940-4950 Paris
     Denver, CO               152       861       73       156       930       1,086       167       1984       (o)  
4970 Paris
     Denver, CO               95       537       88       97       623       720       116       1984       (o)  
5010 Paris
     Denver, CO               89       505       224       91       727       818       122       1984       (o)  
7367 South Revere Parkway
     Englewood, CO               926       5,124       208       934       5,324       6,258       963       1997       (o)  
8200 East Park Meadows Drive(k)
     Lone Tree, CO               1,297       7,348       898       1,304       8,239       9,543       990       1984       (o)  
3250 Quentin(k)
     Aurora, CO               1,220       6,911       469       1,230       7,370       8,600       856       1984/2000       (o)  
11585 E. 53rd Ave.(k)
     Denver, CO               1,770       10,030       501       1,780       10,521       12,301       884       1984       (o)  
10500 East 54th Ave.(l)
     Denver, CO               1,253       7,098       544       1,260       7,635       8,895       680       1986       (o)  
8835 W. 116th Street
     Broomfield, CO               1,151       6,523       691       1,304       7,061       8,365       332       2002       (o)  
3101-3151 S. Platte River Dr. 
     Englewood, CO               2,500       8,549       89       2,504       8,634       11,138       202       1974       (o)  

S-10

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Denver — (Continued)
                                                                                        
3155-3199 S. Platte River Dr. 
     Englewood, CO               1,700       7,787       13       1,702       7,798       9,500       188       1974       (o)  
3201-3273 S. Platte River Dr. 
     Englewood, CO               1,600       6,592       11       1,602       6,601       8,203       172       1974       (o)  
18150 E. 32nd Street
     Aurora, CO               563       3,188       994       572       4,173       4,745       445       2000       (o)  
8820 W. 116th Street(r)
     Broomfield, CO               338       1,918       62       372       1,946       2,318       88       2001       (o)  
Hilltop Business Center I — Bldg. B(r)
     Littleton, CO               751       —       3,634       739       3,646       4,385       220       2001       (o)  
Jeffco Business Center A(r)
     Broomfield, CO               312       —       1,687       370       1,629       1,999       135       2001       (o)  
Park Centre A(r)
     Westminister, CO               441       —       3,999       441       3,999       4,440       298       2001       (o)  
Park Centre B(r)
     Westminister, CO               374       —       3,108       374       3,108       3,482       271       2001       (o)  
Park Centre C(r)
     Westminister, CO               374       —       3,022       374       3,022       3,396       237       2001       (o)  
Park Centre D(r)
     Westminister, CO               441       —       3,757       441       3,757       4,198       281       2001       (o)  
Des Moines
                                                                                        
2250 Delaware Ave
     Des Moines, IA               291       1,609       349       277       1,972       2,249       366       1975       (o)  
720 Alexander Way(r)
     North Liberty, IA               1,300       —       16,930       1,300       18,320       1,300       35       2004       (o)  
Detroit
                                                                                        
1731 Thorncroft
     Troy, MI               331       1,904       83       331       1,987       2,318       521       1969       (o)  
1653 E. Maple
     Troy, MI               192       1,104       103       192       1,207       1,399       382       1990       (o)  
47461 Clipper
     Plymouth Township, MI               122       723       135       122       858       980       298       1992       (o)  
238 Executive Drive
     Troy, MI               52       173       562       100       687       787       513       1973       (o)  
256 Executive Drive
     Troy, MI               44       146       442       85       547       632       414       1974       (o)  
301 Executive Drive
     Troy, MI               71       293       762       133       993       1,126       693       1974       (o)  
449 Executive Drive
     Troy, MI               125       425       1,037       218       1,369       1,587       937       1975       (o)  
501 Executive Drive
     Troy, MI               71       236       713       129       891       1,020       449       1984       (o)  
451 Robbins Drive
     Troy, MI               96       448       1,001       192       1,353       1,545       969       1975       (o)  
1095 Crooks Road
     Troy, MI               331       1,017       1,033       360       2,021       2,381       1,114       1986       (o)  
1416 Meijer Drive
     Troy, MI               94       394       391       121       758       879       504       1980       (o)  
1624 Meijer Drive
     Troy, MI               236       1,406       995       373       2,264       2,637       1,363       1984       (o)  
1972 Meijer Drive
     Troy, MI               315       1,301       721       372       1,965       2,337       1,082       1985       (o)  
1621 Northwood Drive
     Troy, MI               85       351       1,040       215       1,261       1,476       1,012       1977       (o)  
1707 Northwood Drive
     Troy, MI               95       262       1,221       239       1,339       1,578       781       1983       (o)  
1788 Northwood Drive
     Troy, MI               50       196       599       103       742       845       497       1977       (o)  
1821 Northwood Drive
     Troy, MI               132       523       743       220       1,178       1,398       915       1977       (o)  
1826 Northwood Drive
     Troy, MI               55       208       395       103       555       658       431       1977       (o)  
1864 Northwood Drive
     Troy, MI               57       190       470       107       610       717       482       1977       (o)  
2277 Elliott Avenue
     Troy, MI               48       188       533       104       665       769       475       1975       (o)  

S-11

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Detroit — (Continued)
                                                                                        
2451 Elliott Avenue
     Troy, MI               78       319       839       164       1,072       1,236       834       1974       (o)  
2730 Research Drive
     Rochester Hills, MI               915       4,215       747       903       4,974       5,877       2,754       1988       (o)  
2791 Research Drive
     Rochester Hills, MI               557       2,731       443       560       3,171       3,731       1,503       1991       (o)  
2871 Research Drive
     Rochester Hills, MI               324       1,487       378       327       1,862       2,189       887       1991       (o)  
2911 Research Drive
     Rochester Hills, MI               505       2,136       539       504       2,676       3,180       1,271       1992       (o)  
3011 Research Drive
     Rochester Hills, MI               457       2,104       349       457       2,453       2,910       1,318       1988       (o)  
2870 Technology Drive
     Rochester Hills, MI               275       1,262       237       279       1,495       1,774       804       1988       (o)  
2900 Technology Drive
     Rochester Hills, MI               214       977       438       219       1,410       1,629       710       1992       (o)  
2920 Technology Drive
     Rochester Hills, MI               159       671       144       153       821       974       398       1992       (o)  
2930 Technology Drive
     Rochester Hills, MI               131       594       441       138       1,028       1,166       474       1991       (o)  
2950 Technology Drive
     Rochester Hills, MI               178       819       303       185       1,115       1,300       575       1991       (o)  
23014 Commerce Drive
     Farmington Hills, MI               39       203       211       56       397       453       234       1983       (o)  
23028 Commerce Drive
     Farmington Hills, MI               98       507       439       125       919       1,044       601       1983       (o)  
23035 Commerce Drive
     Farmington Hills, MI               71       355       270       93       603       696       321       1983       (o)  
23042 Commerce Drive
     Farmington Hills, MI               67       277       375       89       630       719       371       1983       (o)  
23065 Commerce Drive
     Farmington Hills, MI               71       408       217       93       603       696       358       1983       (o)  
23070 Commerce Drive
     Farmington Hills, MI               112       442       735       125       1,164       1,289       713       1983       (o)  
23079 Commerce Drive
     Farmington Hills, MI               68       301       290       79       580       659       303       1983       (o)  
23093 Commerce Drive
     Farmington Hills, MI               211       1,024       788       295       1,728       2,023       1,017       1983       (o)  
23135 Commerce Drive
     Farmington Hills, MI               146       701       283       158       972       1,130       526       1986       (o)  
23163 Commerce Drive
     Farmington Hills, MI               111       513       327       138       813       951       440       1986       (o)  
23177 Commerce Drive
     Farmington Hills, MI               175       1,007       603       254       1,531       1,785       788       1986       (o)  
23206 Commerce Drive
     Farmington Hills, MI               125       531       364       137       883       1,020       482       1985       (o)  
23370 Commerce Drive
     Farmington Hills, MI               59       233       334       66       560       626       286       1980       (o)  
1451 East Lincoln Avenue
     Madison Heights, MI               299       1,703       488       306       2,184       2,490       725       1967       (o)  
4400 Purks Drive
     Auburn Hills, MI               602       3,410       3,392       612       6,792       7,404       1,560       1987       (o)  
4177A Varsity Drive
     Ann Arbor, MI               90       536       95       90       631       721       210       1993       (o)  
6515 Cobb Drive
     Sterling Heights, MI               305       1,753       263       305       2,016       2,321       533       1984       (o)  
32450 N Avis Drive
     Madison Heights, MI               281       1,590       458       286       2,043       2,329       641       1974       (o)  
38300 Plymouth Road
     Livonia, MI               729       —       4,846       878       4,697       5,575       801       1997       (o)  
12707 Eckles Road
     Plymouth Township, MI               255       1,445       110       267       1,543       1,810       325       1990       (o)  
9300-9328 Harrison Rd
     Romulus, MI               147       834       378       154       1,205       1,359       275       1978       (o)  
9330-9358 Harrison Rd
     Romulus, MI               81       456       430       85       882       967       283       1978       (o)  
28420-28448 Highland Rd
     Romulus, MI               143       809       277       149       1,080       1,229       289       1979       (o)  

S-12

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Detroit — (Continued)
                                                                                        
28450-28478 Highland Rd
     Romulus, MI               81       461       391       85       848       933       282       1979       (o)  
28421-28449 Highland Rd
     Romulus, MI               109       617       374       114       986       1,100       298       1980       (o)  
28451-28479 Highland Rd
     Romulus, MI               107       608       224       112       827       939       225       1980       (o)  
28825-28909 Highland Rd
     Romulus, MI               70       395       280       73       672       745       176       1981       (o)  
28933-29017 Highland Rd
     Romulus, MI               112       634       256       117       885       1,002       274       1982       (o)  
28824-28908 Highland Rd
     Romulus, MI               134       760       428       140       1,182       1,322       375       1982       (o)  
28932-29016 Highland Rd
     Romulus, MI               123       694       447       128       1,136       1,264       309       1982       (o)  
9710-9734 Harrison Rd
     Romulus, MI               125       706       196       130       897       1,027       218       1987       (o)  
9740-9772 Harrison Rd
     Romulus, MI               132       749       243       138       986       1,124       283       1987       (o)  
9840-9868 Harrison Rd
     Romulus, MI               144       815       202       151       1,010       1,161       256       1987       (o)  
9800-9824 Harrison Rd
     Romulus, MI               117       664       200       123       858       981       255       1987       (o)  
29265-29285 Airport Dr
     Romulus, MI               140       794       294       147       1,081       1,228       299       1983       (o)  
29185-29225 Airport Dr
     Romulus, MI               140       792       349       146       1,135       1,281       303       1983       (o)  
29149-29165 Airport Dr
     Romulus, MI               216       1,225       340       226       1,555       1,781       405       1984       (o)  
29101-29115 Airport Dr
     Romulus, MI               130       738       291       136       1,023       1,159       258       1985       (o)  
29031-29045 Airport Dr
     Romulus, MI               124       704       162       130       860       990       208       1985       (o)  
29050-29062 Airport Dr
     Romulus, MI               127       718       218       133       930       1,063       260       1986       (o)  
29120-29134 Airport Dr
     Romulus, MI               161       912       500       169       1,404       1,573       465       1986       (o)  
29200-29214 Airport Dr
     Romulus, MI               170       963       348       178       1,303       1,481       310       1985       (o)  
9301-9339 Middlebelt Rd
     Romulus, MI               124       703       213       130       910       1,040       205       1983       (o)  
26980 Trolley Industrial Drive
     Taylor, MI               450       2,550       1,015       463       3,552       4,015       670       1997       (o)  
32975 Capitol Avenue
     Livonia, MI               135       748       344       144       1,083       1,227       176       1978       (o)  
2725 S. Industrial Highway
     Ann Arbor, MI               660       3,654       543       704       4,153       4,857       872       1997       (o)  
32920 Capitol Avenue
     Livonia, MI               76       422       86       82       502       584       89       1973       (o)  
11923 Brookfield Avenue
     Livonia, MI               120       665       459       128       1,116       1,244       327       1973       (o)  
11965 Brookfield Avenue
     Livonia, MI               120       665       78       128       735       863       130       1973       (o)  
13405 Stark Road
     Livonia, MI               46       254       136       49       387       436       53       1980       (o)  
1170 Chicago Road
     Troy, MI               249       1,380       160       266       1,523       1,789       252       1983       (o)  
1200 Chicago Road
     Troy, MI               268       1,483       142       286       1,607       1,893       265       1984       (o)  
450 Robbins Drive
     Troy, MI               166       920       139       178       1,047       1,225       200       1976       (o)  
1230 Chicago Road
     Troy, MI               271       1,498       142       289       1,622       1,911       267       1996       (o)  
12886 Westmore Avenue
     Livonia, MI               190       1,050       199       202       1,237       1,439       209       1981       (o)  
12898 Westmore Avenue
     Livonia, MI               190       1,050       227       202       1,265       1,467       216       1981       (o)  
33025 Industrial Road
     Livonia, MI               80       442       92       85       529       614       84       1980       (o)  

S-13

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Detroit — (Continued)
                                                                                        
47711 Clipper Street
     Plymouth Township, MI               539       2,983       265       575       3,212       3,787       531       1996       (o)  
32975 Industrial Road
     Livonia, MI               160       887       357       171       1,233       1,404       201       1984       (o)  
32985 Industrial Road
     Livonia, MI               137       761       149       147       900       1,047       141       1985       (o)  
32995 Industrial Road
     Livonia, MI               160       887       180       171       1,056       1,227       179       1983       (o)  
12874 Westmore Avenue
     Livonia, MI               137       761       158       147       909       1,056       145       1984       (o)  
33067 Industrial Road
     Livonia, MI               160       887       250       171       1,126       1,297       174       1984       (o)  
1775 Bellingham
     Troy, MI               344       1,902       315       367       2,194       2,561       429       1987       (o)  
1785 East Maple
     Troy, MI               92       507       88       98       589       687       97       1985       (o)  
1807 East Maple
     Troy, MI               321       1,775       199       342       1,953       2,295       325       1984       (o)  
980 Chicago
     Troy, MI               206       1,141       103       220       1,230       1,450       203       1985       (o)  
1840 Enterprise Drive
     Rochester Hills, MI               573       3,170       283       611       3,415       4,026       564       1990       (o)  
1885 Enterprise Drive
     Rochester Hills, MI               209       1,158       110       223       1,254       1,477       207       1990       (o)  
1935-55 Enterprise Drive
     Rochester Hills, MI               1,285       7,144       874       1,371       7,932       9,303       1,454       1990       (o)  
5500 Enterprise Court
     Warren, MI               675       3,737       447       721       4,138       4,859       680       1989       (o)  
750 Chicago Road
     Troy, MI               323       1,790       278       345       2,046       2,391       366       1986       (o)  
800 Chicago Road
     Troy, MI               283       1,567       525       302       2,073       2,375       404       1985       (o)  
850 Chicago Road
     Troy, MI               183       1,016       174       196       1,177       1,373       187       1984       (o)  
2805 S. Industrial Highway
     Ann Arbor, MI               318       1,762       267       340       2,007       2,347       362       1990       (o)  
6833 Center Drive
     Sterling Heights, MI               467       2,583       220       493       2,777       3,270       478       1998       (o)  
32201 North Avis Drive
     Madison Heights, MI               345       1,911       447       349       2,354       2,703       483       1974       (o)  
1100 East Mandoline Road
     Madison Heights, MI               888       4,915       1,670       897       6,576       7,473       1,148       1967       (o)  
30081 Stephenson Highway
     Madison Heights, MI               271       1,499       365       274       1,861       2,135       312       1967       (o)  
1120 John A. Papalas Drive(l)
     Lincoln Park, MI               586       3,241       755       593       3,989       4,582       782       1985       (o)  
4872 S. Lapeer Road
     Lake Orion Twsp, MI               1,342       5,441       1,905       1,412       7,276       8,688       1,149       1999       (o)  
22701 Trolley Industrial
     Taylor, MI               795       —       7,492       849       7,438       8,287       1,117       1999       (o)  
1400 Allen Drive
     Troy, MI               209       1,154       120       212       1,271       1,483       128       1979       (o)  
1408 Allen Drive
     Troy, MI               151       834       171       153       1,003       1,156       137       1979       (o)  
1305 Stephenson Hwy
     Troy, MI               345       1,907       78       350       1,980       2,330       201       1979       (o)  
32505 Industrial Drive
     Madison Heights, MI               345       1,910       419       351       2,323       2,674       227       1979       (o)  
1799-1813 Northfield Drive(k)
     Rochester Hills, MI               481       2,665       139       490       2,795       3,285       304       1980       (o)  
28435 Automation Blvd.(r)
     Wixom, MI               621       —       3,569       621       3,569       4,190       7       2004       (o)  
Grand Rapids
                                                                                        
5050 Kendrick Court(r)
     Grand Rapids, MI               1,721       11,433       4,581       1,721       16,014       17,735       4,116       1988/94       (o)  
5015 52nd Street SE
     Grand Rapids, MI               234       1,321       144       234       1,465       1,699       381       1987       (o)  

S-14

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Houston
                                                                                        
2102-2314 Edwards Street
     Houston, TX               348       1,973       978       382       2,917       3,299       716       1961       (o)  
4545 Eastpark Drive
     Houston, TX               235       1,331       700       240       2,026       2,266       349       1972       (o)  
3351 Rauch St
     Houston, TX               272       1,541       251       278       1,786       2,064       371       1970       (o)  
3851 Yale St
     Houston, TX               413       2,343       686       425       3,017       3,442       542       1971       (o)  
3337-3347 Rauch Street
     Houston, TX               227       1,287       316       233       1,597       1,830       375       1970       (o)  
8505 N Loop East
     Houston, TX               439       2,489       506       449       2,985       3,434       523       1981       (o)  
4749-4799 Eastpark Dr
     Houston, TX               594       3,368       1,061       611       4,412       5,023       782       1979       (o)  
4851 Homestead Road
     Houston, TX               491       2,782       989       504       3,758       4,262       727       1973       (o)  
3365-3385 Rauch Street
     Houston, TX               284       1,611       195       290       1,800       2,090       383       1970       (o)  
5050 Campbell Road
     Houston, TX               461       2,610       355       470       2,956       3,426       539       1970       (o)  
4300 Pine Timbers
     Houston, TX               489       2,769       595       499       3,354       3,853       613       1980       (o)  
7901 Blankenship
     Houston, TX               136       772       420       140       1,188       1,328       297       1972       (o)  
2500-2530 Fairway Park Drive
     Houston, TX               766       4,342       633       792       4,949       5,741       906       1974       (o)  
6550 Longpointe
     Houston, TX               362       2,050       491       370       2,533       2,903       493       1980       (o)  
1815 Turning Basin Dr
     Houston, TX               487       2,761       505       531       3,222       3,753       558       1980       (o)  
1819 Turning Basin Dr
     Houston, TX               231       1,308       522       251       1,810       2,061       290       1980       (o)  
1805 Turning Basin Drive
     Houston, TX               564       3,197       674       616       3,819       4,435       678       1980       (o)  
7000 Empire Drive
     Houston, TX               450       2,552       1,147       452       3,697       4,149       893       1980       (o)  
9777 West Gulfbank Drive
     Houston, TX               1,217       6,899       1,525       1,216       8,425       9,641       1,726       1980       (o)  
9835A Genard Road
     Houston, TX               1,505       8,333       3,307       1,581       11,564       13,145       1,438       1980       (o)  
9835B Genard Road
     Houston, TX               245       1,357       488       256       1,834       2,090       237       1980       (o)  
10161 Harwin Drive
     Houston, TX               505       2,861       749       511       3,604       4,115       482       1979/1981       (o)  
10165 Harwin Drive
     Houston, TX               218       1,234       785       220       2,017       2,237       321       1979/1981       (o)  
10175 Harwin Drive
     Houston, TX               267       1,515       404       270       1,916       2,186       399       1979/1981       (o)  
10325-10415 Landsbury Drive(l)
     Houston, TX               696       3,854       312       704       4,158       4,862       264       1982       (o)  
8705 City Park Loop
     Houston, TX               710       2,983       199       714       3,178       3,892       200       1982       (o)  
600 Kenrick(r)
     Houston, TX               900       1,791       32       913       1,810       2,723       15       1981       (o)  
Indianapolis
                                                                                        
2900 N Shadeland Avenue
     Indianapolis, IN               2,394       13,565       2,501       2,057       16,403       18,460       3,780       1957/1992       (o)  
2400 North Shadeland
     Indianapolis, IN               142       802       139       149       934       1,083       177       1970       (o)  
2402 North Shadeland
     Indianapolis, IN               466       2,640       664       489       3,281       3,770       659       1970       (o)  
7901 West 21st St. 
     Indianapolis, IN               1,063       6,027       365       1,048       6,407       7,455       1,230       1985       (o)  
1445 Brookville Way
     Indianapolis, IN               459       2,603       766       476       3,352       3,828       798       1989       (o)  
1440 Brookville Way
     Indianapolis, IN               665       3,770       521       685       4,271       4,956       925       1990       (o)  
1240 Brookville Way
     Indianapolis, IN               247       1,402       347       258       1,738       1,996       455       1990       (o)  

S-15

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Indianapolis — (Continued)
                                                                                        
1220 Brookville Way
     Indianapolis, IN               223       40       61       226       98       324       16       1990       (o)  
1345 Brookville Way
     Indianapolis, IN       (t)       586       3,321       878       601       4,184       4,785       994       1992       (o)  
1350 Brookville Way
     Indianapolis, IN               205       1,161       204       212       1,358       1,570       324       1994       (o)  
1341 Sadlier Circle E Dr
     Indianapolis, IN       (c)       131       743       449       136       1,187       1,323       290       1971/1992       (o)  
1322-1438 Sadlier Circle E Dr
     Indianapolis, IN       (c)       145       822       356       152       1,171       1,323       363       1971/1992       (o)  
1327-1441 Sadlier Circle E Dr
     Indianapolis, IN       (c)       218       1,234       402       225       1,629       1,854       436       1992       (o)  
1304 Sadlier Circle E Dr
     Indianapolis, IN       (c)       71       405       178       75       579       654       153       1971/1992       (o)  
1402 Sadlier Circle E Dr
     Indianapolis, IN       (c)       165       934       472       171       1,400       1,571       333       1970/1992       (o)  
1504 Sadlier Circle E Dr
     Indianapolis, IN       (c)       219       1,238       267       226       1,498       1,724       313       1971/1992       (o)  
1311 Sadlier Circle E Dr
     Indianapolis, IN       (c)       54       304       159       57       460       517       142       1971/1992       (o)  
1365 Sadlier Circle E Dr
     Indianapolis, IN       (c)       121       688       240       126       923       1,049       236       1971/1992       (o)  
1352-1354 Sadlier Circle E Dr
     Indianapolis, IN       (c)       178       1,008       442       184       1,444       1,628       332       1970/1992       (o)  
1335 Sadlier Circle E Dr
     Indianapolis, IN       (c)       81       460       131       85       587       672       145       1971/1992       (o)  
1327 Sadlier Circle E Dr
     Indianapolis, IN       (c)       52       295       72       55       364       419       89       1971/1992       (o)  
1425 Sadlier Circle E Dr
     Indianapolis, IN       (c)       21       117       35       23       150       173       32       1971/1992       (o)  
1230 Brookville Way
     Indianapolis, IN               103       586       54       109       634       743       141       1995       (o)  
6951 E 30th St
     Indianapolis, IN               256       1,449       292       265       1,732       1,997       466       1995       (o)  
6701 E 30th St
     Indianapolis, IN               78       443       43       82       482       564       107       1995       (o)  
6737 E 30th St
     Indianapolis, IN               385       2,181       417       398       2,585       2,983       660       1995       (o)  
1225 Brookville Way
     Indianapolis, IN               60       —       418       68       410       478       84       1997       (o)  
6555 E 30th St
     Indianapolis, IN               840       4,760       1,377       484       6,493       6,977       1,726       1969/1981       (o)  
2432-2436 Shadeland
     Indianapolis, IN               212       1,199       438       230       1,619       1,849       413       1968       (o)  
8402-8440 E 33rd St
     Indianapolis, IN               222       1,260       790       230       2,042       2,272       511       1977       (o)  
8520-8630 E 33rd St
     Indianapolis, IN               326       1,848       646       336       2,484       2,820       587       1976       (o)  
8710-8768 E 33rd St
     Indianapolis, IN               175       993       466       187       1,447       1,634       351       1979       (o)  
3316-3346 N. Pagosa Court
     Indianapolis, IN               325       1,842       594       335       2,426       2,761       561       1977       (o)  
3331 Raton Court
     Indianapolis, IN               138       802       222       138       1,024       1,162       247       1979       (o)  
6751 E 30th St
     Indianapolis, IN               728       2,837       272       741       3,096       3,837       572       1997       (o)  
9200 East 146th Street
     Noblesville, IN               205       1,221       1,176       181       2,421       2,602       606       1961/1981       (o)  
6575 East 30th Street
     Indianapolis, IN               118       —       2,123       128       2,113       2,241       415       1998       (o)  
6585 East 30th Street
     Indianapolis, IN               196       —       3,201       196       3,201       3,397       519       1998       (o)  
9910 North by Northeast Blvd
     Fishers, IN               661       3,744       206       669       3,942       4,611       382       1994       (o)  
8525 E. 33rd Street
     Indianapolis, IN               1,300       2,091       878       1,308       2,961       4,269       379       1978       (o)  
5705-97 Park Plaza Ct.(r)
     Indianapolis, IN       (u)       600       2,194       851       609       3,036       3,645       351       1977       (o)  

S-16

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Indianapolis — (Continued)
                                                                                        
8219 Northwest Blvd. 
     Indianapolis, IN               900       3,081       358       902       3,437       4,339       206       1990       (o)  
8227 Northwest Blvd.(r)
     Indianapolis, IN               600       5,502       508       602       6,008       6,610       301       1990       (o)  
9319-9341 Castlegate Drive(r)
     Indianapolis, IN               530       1,235       821       544       2,042       2,586       162       1983       (o)  
9332-9350 Castlegate Drive
     Indianapolis, IN               420       646       680       429       1,317       1,746       95       1983       (o)  
9210 East 146th Street
     Noblesville, IN               552       684       282       66       1,452       1,518       367       1978       (o)  
6101-6119 Guion Road(r)
     Indianapolis, IN               400       661       325       405       981       1,386       90       1976       (o)  
Los Angeles
                                                                                        
6407-6419 Alondra Blvd. 
     Paramount, CA               137       774       100       140       871       1,011       91       1985       (o)  
6423-6431 Alondra Blvd. 
     Paramount, CA               115       650       53       118       700       818       83       1985       (o)  
15101-15141 S. Figueroa St.(k)
     Los Angeles, CA               1,163       6,588       459       1,175       7,035       8,210       762       1982       (o)  
21136 South Wilmington Ave
     Carson, CA               1,234       6,994       261       1,246       7,243       8,489       670       1989       (o)  
19914 Via Baron Way
     Rancho Dominguez, CA       (d)       1,590       9,010       226       1,616       9,210       10,826       584       1973       (o)  
14912 Shoemaker Ave
     Santa Fe Springs, CA               42       236       10       46       242       288       16       1967       (o)  
14920 Shoemaker Ave
     Santa Fe Springs, CA               37       212       28       42       235       277       15       1967       (o)  
14928 Shoemaker Ave
     Santa Fe Springs, CA               37       212       13       42       220       262       16       1967       (o)  
14938 Shoemaker Ave
     Santa Fe Springs, CA               37       212       10       42       217       259       14       1967       (o)  
14944 Shoemaker Ave
     Santa Fe Springs, CA               326       1,848       66       336       1,904       2,240       131       1978       (o)  
14946 Shoemaker Ave
     Santa Fe Springs, CA               275       1,559       74       284       1,624       1,908       123       1978       (o)  
14948 Shoemaker Ave
     Santa Fe Springs, CA               100       568       24       106       586       692       41       1978       (o)  
14141 Alondra Blvd. 
     Santa Fe Springs, CA               2,570       14,565       3,102       2,598       17,639       20,237       962       1969       (o)  
12616 Yukon Ave
     Hawthorne, CA               685       3,884       94       696       3,967       4,663       246       1987       (o)  
3355 El Segundo Blvd(l)
     Hawthorne, CA               267       1,510       1,177       418       2,536       2,954       173       1959       (o)  
12621 Cerise
     Hawthorne, CA               413       2,344       (920 )     265       1,572       1,837       111       1959       (o)  
333 Turnbull Canyon Road
     City of Industry, CA               2,700       1,824       316       2,700       2,140       4,840       131       1968/1985       (o)  
350-390 Manville St. 
     Compton, CA               2,300       3,768       36       2,314       3,790       6,104       15       1979       (o)  
42374 Avenida Alvarado(l)
     Temecula, CA               797       4,514       308       812       4,807       5,619       247       1987       (o)  
3131 E. Harcourt Street(k)
     Rancho Dominguez, CA               1,200       2,780       56       1,212       2,824       4,036       52       1970       (o)  
200 West Artesia Blvd. 
     Compton, CA               2,200       2,018       110       2,213       2,115       4,328       8       1985       (o)  
Louisville
                                                                                        
9001 Cane Run Road
     Louisville, KY               524       —       5,577       560       5,541       6,101       1,201       1998       (o)  
9101 Cane Run Road
     Louisville, KY               973       —       5,753       608       6,118       6,726       586       2000       (o)  
Miami
                                                                                        
9400 NW 104th Street
     Medley, FL               3,900       8,472       56       3,918       8,510       12,428       23       1995       (o)  

S-17

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Milwaukee
                                                                                        
N25 W23050 Paul Road
     Pewaukee, WI               474       2,723       919       485       3,631       4,116       849       1989       (o)  
N25 W23255 Paul Road
     Pewaukee, WI               571       3,270       (4 )     569       3,268       3,837       864       1987       (o)  
N27 W23293 Roundy Drive
     Pewaukee, WI               412       2,837       56       420       2,885       3,305       746       1989       (o)  
6523 N Sydney Place
     Glendale, WI               172       976       210       176       1,182       1,358       274       1978       (o)  
8800 W Bradley
     Milwaukee, WI               375       2,125       206       388       2,318       2,706       482       1982       (o)  
4560 N 124th Street
     Wauwatosa, WI               118       667       85       129       741       870       140       1976       (o)  
4410-80 North 132nd Street
     Butler, WI               355       —       4,023       359       4,019       4,378       458       1999       (o)  
5355 South Westridge Drive
     New Berlin, WI               1,630       7,058       96       1,649       7,135       8,784       98       1997       (o)  
N120W18485 Freistadt Road
     Germantown, WI               700       3,183       49       704       3,228       3,932       82       1996       (o)  
140 N. 9000 Lilly Road
     Menmonee, WI               700       2,445       44       712       2,477       3,189       59       1990       (o)  
Minneapolis/ St. Paul
                                                                                        
6507-6545 Cecilia Circle
     Bloomington, MN               357       1,320       1,146       386       2,437       2,823       1,325       1980       (o)  
6201 West 111th Street
     Bloomington, MN       (e)       1,358       8,622       3,756       1,499       12,237       13,736       5,265       1987       (o)  
6403-6545 Cecilia Drive
     Bloomington, MN               366       1,363       1,009       395       2,343       2,738       1,310       1980       (o)  
6925-6943 Washington Avenue
     Edina, MN               117       504       992       237       1,376       1,613       1,081       1972       (o)  
6955-6973 Washington Avenue
     Edina, MN               117       486       619       207       1,015       1,222       902       1972       (o)  
7251-7267 Washington Avenue
     Edina, MN               129       382       686       182       1,015       1,197       766       1972       (o)  
7301-7325 Washington Avenue
     Edina, MN               174       391       35       193       407       600       35       1972       (o)  
7101 Winnetka Avenue North
     Brooklyn Park, MN               2,195       6,084       2,928       2,228       8,979       11,207       4,637       1990       (o)  
7600 Golden Triangle Drive
     Eden Prairie, MN               566       1,394       1,157       615       2,502       3,117       1,335       1989       (o)  
9901 West 74th Street
     Eden Prairie, MN               621       3,289       2,832       639       6,103       6,742       2,813       1983/88       (o)  
12220-12222 Nicollet Avenue
     Burnsville, MN               105       425       381       114       797       911       414       1989/90       (o)  
12250-12268 Nicollet Avenue
     Burnsville, MN               260       1,054       517       296       1,535       1,831       677       1989/90       (o)  
12224-12226 Nicollet Avenue
     Burnsville, MN               190       770       367       207       1,120       1,327       499       1989/90       (o)  
1030 Lone Oak Road
     Eagan, MN               456       2,703       678       456       3,381       3,837       865       1988       (o)  
1060 Lone Oak Road
     Eagan, MN               624       3,700       775       624       4,475       5,099       1,311       1988       (o)  
5400 Nathan Lane
     Plymouth, MN               749       4,461       771       757       5,224       5,981       1,519       1990       (o)  
10120 W 76th Street
     Eden Prairie, MN               315       1,804       1,353       315       3,157       3,472       1,054       1987       (o)  
7615 Golden Triangle
     Eden Prairie, MN               268       1,532       541       268       2,073       2,341       464       1987       (o)  
7625 Golden Triangle
     Eden Prairie, MN               415       2,375       1,060       415       3,435       3,850       813       1987       (o)  
2605 Fernbrook Lane North
     Plymouth, MN               443       2,533       616       445       3,147       3,592       694       1987       (o)  
12155 Nicollet Ave
     Burnsville, MN               286       —       1,902       288       1,900       2,188       555       1995       (o)  
6655 Wedgewood Road
     Maple Grove, MN               1,466       8,342       3,241       1,466       11,583       13,049       2,511       1989       (o)  
900 Apollo Road
     Eagan, MN               1,029       5,855       1,117       1,030       6,971       8,001       1,627       1970       (o)  
7316 Aspen Lane North
     Brooklyn Park, MN               368       2,156       726       377       2,873       3,250       659       1978       (o)  

S-18

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Minneapolis/ St. Paul — (Continued)
                                                                                        
73rd Avenue North
     Brooklyn Park, MN               504       2,856       465       512       3,313       3,825       710       1995       (o)  
2720 Arthur Street
     Roseville, MN               824       4,671       500       832       5,163       5,995       1,114       1995       (o)  
4100 Peavey Road
     Chaska, MN               399       2,261       913       415       3,158       3,573       746       1988       (o)  
11300 Hamshire Ave South
     Bloomington, MN               527       2,985       1,620       541       4,591       5,132       868       1983       (o)  
375 Rivertown Drive
     Woodbury, MN               1,083       6,135       2,689       1,503       8,404       9,907       1,560       1996       (o)  
5205 Highway 169
     Plymouth, MN               446       2,525       1,129       740       3,360       4,100       884       1960       (o)  
6451-6595 Citywest Parkway
     Eden Prairie, MN               525       2,975       1,259       538       4,221       4,759       919       1984       (o)  
7100-7198 Shady Oak Road
     Eden Prairie, MN               715       4,054       1,130       736       5,163       5,899       1,269       1982/2002       (o)  
7500-7546 Washington Square
     Eden Prairie, MN               229       1,300       730       235       2,024       2,259       343       1975       (o)  
7550-7558 Washington Square
     Eden Prairie, MN               153       867       180       157       1,043       1,200       198       1975       (o)  
5240-5300 Valley Industrial Blvd S
     Shakopee, MN               362       2,049       902       371       2,942       3,313       634       1973       (o)  
7125 Northland Terrace
     Brooklyn Park, MN               660       3,740       896       767       4,529       5,296       889       1996       (o)  
6900 Shady Oak Road
     Eden Prairie, MN               310       1,756       438       340       2,164       2,504       402       1980       (o)  
6477-6525 City West Parkway
     Eden Prairie, MN               810       4,590       959       819       5,540       6,359       1,009       1984       (o)  
1157 Valley Park Drive
     Shakopee, MN               760       —       6,143       888       6,015       6,903       810       1997       (o)  
500-530 Kasota Avenue SE
     Minneapolis, MN               415       2,354       1,003       432       3,340       3,772       640       1976       (o)  
770-786 Kasota Avenue SE
     Minneapolis, MN               333       1,888       535       347       2,409       2,756       418       1976       (o)  
800 Kasota Avenue SE
     Minneapolis, MN               524       2,971       736       597       3,634       4,231       650       1976       (o)  
2530-2570 Kasota Avenue
     St. Paul, MN               407       2,308       817       465       3,067       3,532       720       1976       (o)  
1280 Energy Park Drive
     St. Paul, MN               700       2,779       23       705       2,797       3,502       39       1984       (o)  
9600 West 76th Street(r)
     Eden Prairie, MN               1,000       2,450       101       1,034       2,517       3,551       16       1997       (o)  
9700 West 76th Street
     Eden Prairie, MN               1,000       2,709       124       1,038       2,795       3,833       10       1984/97       (o)  
7600 69th Avenue
     Greenfield, MN               1,500       8,328       1,808       1,510       10,126       11,636       214       2004       (o)  
2041 Wooddale Drive
     Woodbury, MN               800       1,142       70       832       1,180       2,012       7       1973       (o)  
14755 27th Avenue North(r)
     Plymouth, MN               1,300       1,408       312       1,335       1,685       3,020       86       1989       (o)  
Park 2000 III(r)
     Shakopee, MN               590       —       4,602       590       4,602       5,192       278       2001       (o)  
Nashville
                                                                                        
1621 Heil Quaker Boulevard
     Nashville, TN               413       2,383       1,470       430       3,836       4,266       800       1975       (o)  
3099 Barry Drive
     Portland, TN               418       2,368       89       421       2,454       2,875       513       1995       (o)  
3150 Barry Drive
     Portland, TN               941       5,333       309       981       5,602       6,583       1,156       1993       (o)  
5599 Highway 31 West
     Portland, TN               564       3,196       211       571       3,400       3,971       707       1995       (o)  
1650 Elm Hill Pike
     Nashville, TN               329       1,867       172       332       2,036       2,368       428       1984       (o)  
1931 Air Lane Drive
     Nashville, TN               489       2,785       311       493       3,092       3,585       656       1984       (o)  
470 Metroplex Drive(k)
     Nashville, TN               619       3,507       1,181       626       4,681       5,307       1,046       1986       (o)  

S-19

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Nashville — (Continued)
                                                                                        
1150 Antiock Pike
     Nashville, TN               661       3,748       347       669       4,087       4,756       768       1987       (o)  
4640 Cummings Park
     Nashville, TN               360       2,040       239       365       2,274       2,639       344       1986       (o)  
556 Metroplex Drive
     Nashville, TN               227       1,285       285       231       1,566       1,797       219       1983       (o)  
1706 Heil Quaker Boulevard
     Laverne, TN               1,120       9,674       15       1,120       9,689       10,809       581       1986       (o)  
375 Belvedere Drive
     Gallatin, TN               320       3,179       24       323       3,200       3,523       18       1979/85       (o)  
Northern New Jersey
                                                                                        
220 Hanover Avenue
     Hanover, NJ               1,361       7,715       590       1,420       8,246       9,666       1,603       1987       (o)  
14 World’s Fair Drive
     Franklin, NJ               483       2,735       551       503       3,266       3,769       701       1980       (o)  
18 World’s Fair Drive
     Franklin, NJ               123       699       83       129       776       905       141       1982       (o)  
23 World’s Fair Drive
     Franklin, NJ               134       758       113       140       865       1,005       185       1982       (o)  
12 World’s Fair Drive
     Franklin, NJ               572       3,240       413       593       3,632       4,225       683       1981       (o)  
22 World’s Fair Drive
     Franklin, NJ               364       2,064       469       375       2,522       2,897       592       1983       (o)  
26 World’s Fair Drive
     Franklin, NJ               361       2,048       232       377       2,264       2,641       450       1984       (o)  
24 World’s Fair Drive
     Franklin, NJ               347       1,968       430       362       2,383       2,745       498       1984       (o)  
20 World’s Fair Drive Lot 13
     Sumerset, NJ               9       —       2,818       691       2,136       2,827       467       1999       (o)  
10 New Maple Road
     Pine Brook, NJ               2,250       12,750       396       2,272       13,124       15,396       1,417       1973/1999       (o)  
45 Route 46
     Pine Brook, NJ               969       5,491       437       978       5,919       6,897       765       1974/1987       (o)  
43 Route 46
     Pine Brook, NJ               474       2,686       426       479       3,107       3,586       380       1974/1987       (o)  
39 Route 46
     Pine Brook, NJ               260       1,471       160       262       1,629       1,891       189       1970       (o)  
26 Chapin Road
     Pine Brook, NJ               956       5,415       301       965       5,707       6,672       631       1983       (o)  
30 Chapin Road
     Pine Brook, NJ               960       5,440       244       969       5,675       6,644       632       1983       (o)  
20 Hook Mountain Road
     Pine Brook, NJ               1,507       8,542       1,000       1,534       9,515       11,049       972       1972/1984       (o)  
30 Hook Mountain Road
     Pine Brook, NJ               389       2,206       313       396       2,512       2,908       276       1972/1987       (o)  
55 Route 46
     Pine Brook, NJ               396       2,244       116       403       2,353       2,756       260       1978/1994       (o)  
16 Chapin Rod
     Pine Brook, NJ               885       5,015       300       901       5,299       6,200       556       1987       (o)  
20 Chapin Road
     Pine Brook, NJ               1,134       6,426       333       1,154       6,739       7,893       742       1987       (o)  
Sayreville Lot 3
     Sayreville, NJ               996       —       5,295       996       5,295       6,291       46       2002       (o)  
Sayreville Lot 4
     Sayreville, NJ               944       —       4,623       944       4,623       5,567       212       2001       (o)  
400 Raritan Center Parkway
     Edison, NJ               829       4,722       367       836       5,082       5,918       415       1983       (o)  
300 Columbus Circle
     Edison, NJ               1,257       7,122       504       1,269       7,614       8,883       631       1983       (o)  
400 Apgar
     Franklin Township, NJ               780       4,420       433       796       4,837       5,633       337       1987       (o)  
500 Apgar
     Franklin Township, NJ               361       2,044       257       368       2,294       2,662       206       1987       (o)  
201 Circle Dr. North
     Piscataway, NJ               840       4,760       440       857       5,183       6,040       358       1987       (o)  
1 Pearl Ct
     Allendale, NJ               623       3,528       253       649       3,755       4,404       211       1978       (o)  

S-20

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Northern New Jersey — (Continued)
                                                                                        
2 Pearl Ct
     Allendale, NJ               255       1,445       1,178       403       2,475       2,878       129       1979       (o)  
3 Pearl Ct
     Allendale, NJ               440       2,491       200       458       2,673       3,131       168       1978       (o)  
4 Pearl Ct
     Allendale, NJ               450       2,550       499       469       3,030       3,499       188       1979       (o)  
5 Pearl Ct
     Allendale, NJ               505       2,860       348       526       3,187       3,713       217       1977       (o)  
6 Pearl Ct
     Allendale, NJ               1,160       6,575       273       1,177       6,831       8,008       383       1980       (o)  
7 Pearl Ct
     Allendale, NJ               513       2,907       76       520       2,976       3,496       174       1979       (o)  
59 Route 17
     Allendale, NJ               518       2,933       1,016       539       3,928       4,467       205       1979       (o)  
309-319 Pierce Street
     Somerset, NJ               1,300       4,628       40       1,309       4,659       5,968       66       1986       (o)  
160 Pierce Street
     Somerset, NJ               1,510       —       6,011       1,526       5,995       7,521       51       2004       (o)  
12 Thornton Road
     Oakland, NJ               1,300       3,652       54       1,316       3,690       5,006       61       1981       (o)  
147 Clinton Road
     West Caldwell, NJ               2,900       8,726       83       2,922       8,787       11,709       213       1967/83       (o)  
200 Maltese Drive
     Totowa, NJ               1,800       11,830       92       1,813       11,909       13,722       178       1965/75       (o)  
Philadelphia
                                                                                        
230-240 Welsh Pool Road
     Exton, PA               154       851       150       170       985       1,155       183       1975/1997       (o)  
264 Welsh Pool Road
     Exton, PA               147       811       171       162       967       1,129       211       1975/1996       (o)  
254 Welsh Pool Road
     Exton, PA               152       842       630       184       1,440       1,624       383       1975/1998       (o)  
256 Welsh Pool Road
     Exton, PA               82       452       461       94       901       995       137       1975/1999       (o)  
213 Welsh Pool Road
     Exton, PA               149       827       259       173       1,062       1,235       233       1975/1998       (o)  
251 Welsh Pool Road
     Exton, PA               144       796       233       159       1,014       1,173       154       1975/1991       (o)  
253-255 Welsh Pool Road
     Exton, PA               113       626       165       125       779       904       135       1975/1980       (o)  
151-161 Philips Road
     Exton, PA               191       1,059       307       229       1,328       1,557       257       1975/1990       (o)  
210 Philips Road
     Exton, PA               182       1,005       231       198       1,220       1,418       293       1975/1998       (o)  
216 Philips Road
     Exton, PA               199       1,100       268       220       1,347       1,567       260       1985       (o)  
964 Postal Road
     Lehigh, PA               215       1,216       102       224       1,309       1,533       122       1986       (o)  
966 Postal Road
     Lehigh, PA               268       1,517       86       279       1,592       1,871       149       1987       (o)  
999 Postal Road
     Lehigh, PA               439       2,486       234       458       2,701       3,159       249       1988       (o)  
7331 William Avenue
     Lehigh, PA               311       1,764       122       325       1,872       2,197       174       1989       (o)  
7346 Penn Drive
     Lehigh, PA               413       2,338       144       430       2,465       2,895       231       1988       (o)  
7350 William Ave
     Lehigh, PA               552       3,128       670       576       3,774       4,350       445       1989       (o)  
7377 William Ave
     Lehigh, PA               290       1,645       219       303       1,851       2,154       185       1989       (o)  
7072 Snow Drift
     Lehigh, PA               288       1,632       334       300       1,954       2,254       179       1975       (o)  
2000 Cabot Boulevard West
     Langhorne, PA               414       2,346       353       424       2,689       3,113       204       1984       (o)  
2005 Cabot Boulevard West
     Langhorne, PA               315       1,785       175       322       1,953       2,275       144       1984       (o)  
2010 Cabot Boulevard West
     Langhorne, PA               513       2,907       491       525       3,386       3,911       278       1984       (o)  

S-21

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Philadelphia — (Continued)
                                                                                        
2200 Cabot Boulevard West
     Langhorne, PA               428       2,427       337       438       2,754       3,192       211       1979       (o)  
2260-2270 Cabot Boulevard West
     Langhorne, PA               361       2,044       393       369       2,429       2,798       198       1980       (o)  
3000 Cabot Boulevard West
     Langhorne, PA               509       2,886       613       521       3,487       4,008       279       1986       (o)  
180 Wheeler Court
     Langhorne, PA               447       2,533       132       458       2,654       3,112       197       1974       (o)  
2512 Metropolitan Drive
     Trevose, PA               242       1,369       200       248       1,563       1,811       111       1981       (o)  
2510 Metropolitan Drive
     Trevose, PA               244       1,381       184       249       1,560       1,809       113       1981       (o)  
2515 Metropolitan Drive
     Trevose, PA               259       1,466       94       265       1,554       1,819       127       1974       (o)  
2555 Metropolitan Drive
     Trevose, PA               347       1,968       98       355       2,058       2,413       148       1981       (o)  
2450 Metropolitan Drive
     Trevose, PA               571       3,234       694       586       3,913       4,499       335       1983       (o)  
2495 Metropolitan Drive
     Trevose, PA               551       3,124       105       566       3,214       3,780       234       1981       (o)  
4667 Somerton Road
     Trevose, PA               637       3,608       715       652       4,308       4,960       388       1974       (o)  
835 Wheeler Way
     Langhorne, PA               293       1,658       472       319       2,104       2,423       190       1974       (o)  
14 McFadden Road
     Palmer, PA               600       1,349       63       625       1,387       2,012       14       1994/2000       (o)  
Phoenix
                                                                                        
1045 South Edward Drive
     Tempe, AZ               390       2,160       86       394       2,242       2,636       309       1976       (o)  
46 N. 49th Ave
     Phoenix, AZ               301       1,704       696       283       2,418       2,701       226       1986       (o)  
240 N. 48th Ave
     Phoenix, AZ               510       1,913       272       481       2,214       2,695       150       1977       (o)  
220 N. 48th Ave
     Phoenix, AZ               530       1,726       131       530       1,857       2,387       114       1977       (o)  
54 N. 48th Ave
     Phoenix, AZ               130       625       40       131       664       795       40       1977       (o)  
64 N. 48th Ave
     Phoenix, AZ               180       458       53       180       511       691       35       1977       (o)  
236 N. 48th Ave
     Phoenix, AZ               120       322       33       120       355       475       23       1977       (o)  
10 S. 48th Ave
     Phoenix, AZ               510       1,687       168       512       1,853       2,365       118       1977       (o)  
115 E. Watkins St. 
     Phoenix, AZ               170       816       81       171       896       1,067       55       1979       (o)  
135 E. Watkins St. 
     Phoenix, AZ               380       1,962       127       382       2,087       2,469       124       1977       (o)  
10220 S. 51st Street
     Phoenix, AZ               400       1,493       27       406       1,514       1,920       42       1985       (o)  
50 South 56th Street
     Chandler, AZ               1,200       3,333       (105 )     1,207       3,221       4,428       10       1991/97       (o)  
4625 W. McDowell Road
     Phoenix, AZ               250       —       2,786       273       2,763       3,036       133       2001       (o)  
4635 W. McDowell Road
     Phoenix, AZ               309       —       3,139       336       3,112       3,448       156       2001       (o)  
405 North 75th Avenue, Bldg. 1
     Phoenix, AZ       (i)       700       5,038       (8 )     704       5,026       5,730       56       2001       (o)  
405 North 75th Avenue, Bldg. 2
     Phoenix, AZ       (i)       800       5,285       30       804       5,311       6,115       61       2001       (o)  
405 North 75th Avenue, Bldg. 3
     Phoenix, AZ       (i)       1,100       5,581       58       1,106       5,633       6,739       61       2001       (o)  

S-22

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Salt Lake City
                                                                                        
512 Lawndale Drive(n)
     Salt Lake City, UT               2,779       15,749       2,654       2,705       18,477       21,182       3,767       1981       (o)  
1270 West 2320 South
     West Valley, UT               138       784       178       143       957       1,100       187       1986/92       (o)  
1275 West 2240 South
     West Valley, UT               395       2,241       411       408       2,639       3,047       446       1986/92       (o)  
1288 West 2240 South
     West Valley, UT               119       672       157       123       825       948       169       1986/92       (o)  
2235 South 1300 West
     West Valley, UT               198       1,120       271       204       1,385       1,589       300       1986/92       (o)  
1293 West 2200 South
     West Valley, UT               158       896       210       163       1,101       1,264       279       1986/92       (o)  
1279 West 2200 South
     West Valley, UT               198       1,120       68       204       1,182       1,386       214       1986/92       (o)  
1272 West 2240 South
     West Valley, UT               336       1,905       436       347       2,330       2,677       525       1986/92       (o)  
1149 West 2240 South
     West Valley, UT               217       1,232       58       225       1,282       1,507       223       1986/92       (o)  
1142 West 2320 South
     West Valley, UT               217       1,232       305       225       1,529       1,754       401       1997       (o)  
1152 West 2240 South
     West Valley, UT               2,067       —       3,905       2,114       3,858       5,972       965       1999       (o)  
369 Orange Street
     Salt Lake City, UT               600       2,855       146       602       2,999       3,601       163       1980       (o)  
1330 W. 3300 South Avenue
     Ogden, UT               1,100       2,353       419       1,100       2,772       3,872       228       1982       (o)  
12577 South 265 West Bldg. A(r)
     Draper, UT               167       535       5       166       541       707       18       1996       (o)  
12577 South 265 West Bldg. B(r)
     Draper, UT               470       1,520       13       471       1,532       2,003       50       1996       (o)  
12577 South 265 West Bldg. C
     Draper, UT               226       716       8       228       722       950       23       1996       (o)  
12577 South 265 West Bldg. D(r)
     Draper, UT               237       752       10       239       760       999       22       1996       (o)  
San Diego
                                                                                        
9051 Siempre Viva Rd.(r)
     San Diego, CA               540       1,598       201       541       1,798       2,339       117       1989       (o)  
9163 Siempre Viva Rd
     San Diego, CA               430       1,621       115       431       1,735       2,166       98       1989       (o)  
9295 Siempre Viva Rd
     San Diego, CA               540       1,569       151       541       1,719       2,260       108       1989       (o)  
9255 Customhouse Plaza
     San Diego, CA               3,230       11,030       870       3,234       11,896       15,130       754       1989       (o)  
9375 Customhouse Plaza
     San Diego, CA               430       1,384       176       431       1,559       1,990       111       1989       (o)  
9465 Customhouse Plaza
     San Diego, CA               430       1,437       149       431       1,585       2,016       115       1989       (o)  
9485 Customhouse Plaza
     San Diego, CA               1,200       2,792       245       1,201       3,036       4,237       176       1989       (o)  
2675 Customhouse Court
     San Diego, CA               590       2,082       138       591       2,219       2,810       131       1989       (o)  
Southern New Jersey
                                                                                        
2-5 North Olnev Ave
     Cherry Hill, NJ               284       1,524       148       282       1,674       1,956       271       1963/85       (o)  
2 Springdale Road
     Cherry Hill, NJ               127       701       111       126       813       939       132       1968       (o)  
4 Springdale Road(k)
     Cherry Hill, NJ               335       1,853       752       332       2,608       2,940       382       1963/85       (o)  
8 Springdale Road
     Cherry Hill, NJ               259       1,436       691       258       2,128       2,386       330       1966       (o)  
2050 Springdale Road
     Cherry Hill, NJ               279       1,545       1,194       277       2,741       3,018       496       1965       (o)  
16 Springdale Road
     Cherry Hill, NJ               241       1,336       129       240       1,466       1,706       240       1967       (o)  
5 Esterbrook Lane
     Cherry Hill, NJ               241       1,336       235       240       1,572       1,812       250       1966/88       (o)  
2 Pin Oak Lane
     Cherry Hill, NJ               317       1,757       715       314       2,475       2,789       397       1968       (o)  

S-23

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Southern New Jersey — (Continued)
                                                                                        
28 Springdale Road
     Cherry Hill, NJ               192       1,060       207       190       1,269       1,459       201       1967       (o)  
3 Esterbrook Lane
     Cherry Hill, NJ               199       1,102       464       198       1,567       1,765       248       1968       (o)  
4 Esterbrook Lane
     Cherry Hill, NJ               234       1,294       35       232       1,331       1,563       223       1969       (o)  
26 Springdale Road
     Cherry Hill, NJ               227       1,257       408       226       1,666       1,892       259       1968       (o)  
1 Keystone Ave
     Cherry Hill, NJ               227       1,223       978       218       2,210       2,428       385       1969       (o)  
21 Olnev Ave
     Cherry Hill, NJ               69       380       64       68       445       513       71       1969       (o)  
19 Olnev Ave
     Cherry Hill, NJ               202       1,119       1,143       200       2,264       2,464       402       1971       (o)  
2 Keystone Ave
     Cherry Hill, NJ               216       1,194       577       214       1,773       1,987       305       1970       (o)  
18 Olnev Ave
     Cherry Hill, NJ               250       1,382       97       247       1,482       1,729       244       1974       (o)  
2030 Springdale Rod
     Cherry Hill, NJ               526       2,914       1,485       523       4,402       4,925       757       1977       (o)  
111 Whittendale Drive
     Morrestown, NJ               515       2,916       116       522       3,025       3,547       370       1991/96       (o)  
9 Whittendale
     Morrestown, NJ               337       1,911       68       343       1,973       2,316       175       2000       (o)  
1931 Olney Road
     Cherry Hill, NJ               262       1,486       132       267       1,613       1,880       122       1969       (o)  
7851 Airport
     Pennsauken, NJ               160       508       388       163       893       1,056       58       1966       (o)  
103 Central(r)
     Mt. Laurel, NJ               610       1,847       347       619       2,185       2,804       130       1970       (o)  
7860-7870 Airport
     Pennsauken, NJ               120       366       271       122       635       757       42       1968       (o)  
7110-7112 Airport
     Pennsauken, NJ               110       178       193       112       369       481       29       1963       (o)  
St. Louis
                                                                                        
8921-8971 Fost Avenue
     Hazelwood, MO               431       2,479       119       431       2,598       3,029       700       1971       (o)  
9043-9083 Frost Avenue
     Hazelwood, MO               319       1,838       996       319       2,834       3,153       833       1970/77       (o)  
2121 Chapin Industrial Drive
     Vinita Park, MO               606       4,384       (3,914 )     614       462       1,076       277       1969/94       (o)  
10431-10449 Midwest Industrial Blvd
     Olivette, MO               237       1,360       612       237       1,972       2,209       618       1967       (o)  
10751 Midwest Industrial Boulevard
     Olivette, MO               193       1,119       397       194       1,515       1,709       416       1965       (o)  
6951 N Hanley(k)
     Hazelwood, MO               405       2,295       1,337       419       3,618       4,037       790       1965       (o)  
1037 Warson — Bldg A
     St. Louis, MO               246       1,359       95       251       1,449       1,700       96       1968       (o)  
1037 Warson — Bldg B
     St. Louis, MO               380       2,103       102       388       2,197       2,585       145       1968       (o)  
1037 Warson — Bldg C
     St. Louis, MO               303       1,680       144       310       1,817       2,127       120       1968       (o)  
1037 Warson — Bldg D
     St. Louis, MO               353       1,952       96       360       2,041       2,401       138       1968       (o)  
6821-6857 Hazelwood Ave
     Berkeley, MO               1,095       6,205       585       985       6,900       7,885       469       2001       (o)  
13701 Rider Trail North
     Earth City, MO               800       2,099       544       804       2,639       3,443       260       1985       (o)  
1908-2000 Innerbelt(k)
     Overland, MO               1,590       9,026       502       1,591       9,527       11,118       510       1987       (o)  
8449-95 Mid-County Industrial
     Vinita Park, MO               520       1,590       68       520       1,658       2,178       104       1988       (o)  
84104-76 Mid County Industrial
     Vinita Park, MO               540       2,109       11       540       2,120       2,660       134       1989       (o)  
2001 Innerbelt Business Center
     Overland, MO               1,050       4,451       329       1,050       4,780       5,830       293       1987       (o)  

S-24

Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
St. Louis — (Continued)
                                                                                        
4774 Park 36 Boulevard
     St. Louis, MO               1,074       —       6,065       1,075       6,064       7,139       169       2001       (o)  
1010 Turner Boulevard
     St. Peters, MO               2,520       3,152       15       2,520       3,167       5,687       194       1989       (o)  
1600 Park 370 Place(r)
     Hazelwood, MO               892       —       5,699       892       5,699       6,591       344       2001       (o)  
Tampa
                                                                                        
6614 Adamo Drive
     Tampa, FL               177       1,005       193       181       1,194       1,375       201       1967       (o)  
6202 Benjamin Road
     Tampa, FL               203       1,151       335       211       1,478       1,689       333       1981       (o)  
6204 Benjamin Road
     Tampa, FL               432       2,445       364       454       2,787       3,241       535       1982       (o)  
6206 Benjamin Road
     Tampa, FL               397       2,251       306       416       2,538       2,954       502       1983       (o)  
6302 Benjamin Road
     Tampa, FL               214       1,212       216       224       1,418       1,642       285       1983       (o)  
6304 Benjamin Road
     Tampa, FL               201       1,138       244       209       1,374       1,583       309       1984       (o)  
6306 Benjamin Road
     Tampa, FL               257       1,457       206       269       1,651       1,920       320       1984       (o)  
6308 Benjamin Road
     Tampa, FL               345       1,958       293       362       2,234       2,596       422       1984       (o)  
5313 Johns Road
     Tampa, FL               204       1,159       152       257       1,258       1,515       237       1991       (o)  
5602 Thompson Center Court
     Tampa, FL               115       652       204       120       851       971       198       1972       (o)  
5411 Johns Road
     Tampa, FL               230       1,304       168       241       1,461       1,702       271       1997       (o)  
5525 Johns Road
     Tampa, FL               192       1,086       77       200       1,155       1,355       203       1993       (o)  
5607 Johns Road
     Tampa, FL               102       579       84       110       655       765       117       1991       (o)  
5709 Johns Road
     Tampa, FL               192       1,086       165       200       1,243       1,443       244       1990       (o)  
5711 Johns Road
     Tampa, FL               243       1,376       185       255       1,549       1,804       329       1990       (o)  
5453 W Waters Avenue
     Tampa, FL               71       402       107       82       498       580       95       1987       (o)  
5455 W Waters Avenue
     Tampa, FL               307       1,742       230       326       1,953       2,279       373       1987       (o)  
5553 W Waters Avenue
     Tampa, FL               307       1,742       226       326       1,949       2,275       380       1987       (o)  
5501 W Waters Avenue
     Tampa, FL               154       871       161       162       1,024       1,186       185       1990       (o)  
5503 W Waters Avenue
     Tampa, FL               71       402       67       75       465       540       98       1990       (o)  
5555 W Waters Avenue
     Tampa, FL               213       1,206       126       221       1,324       1,545       243       1990       (o)  
5557 W Waters Avenue
     Tampa, FL               59       335       39       62       371       433       68       1990       (o)  
5463 W Waters Avenue
     Tampa, FL       (g)       497       2,751       494       560       3,182       3,742       519       1996       (o)  
5461 W Waters
     Tampa, FL               261       —       1,197       265       1,193       1,458       179       1998       (o)  
5505 Johns Road #7
     Tampa, FL               228       —       1,452       228       1,452       1,680       234       1999       (o)  
5481 W. Waters Avenue
     Tampa, FL               558       —       2,302       561       2,299       2,860       334       1999       (o)  
5905 Breckenridge Parkway
     Tampa, FL               189       1,070       133       191       1,201       1,392       118       1982       (o)  
5907 Breckenridge Parkway
     Tampa, FL               61       345       11       61       356       417       36       1982       (o)  
5909 Breckenridge Parkway
     Tampa, FL               173       980       70       174       1,049       1,223       119       1982       (o)  
5911 Breckenridge Parkway
     Tampa, FL               308       1,747       69       311       1,813       2,124       193       1982       (o)  

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Table of Contents

                                                                                         
                    (s)                        
                    Costs                
                    Capitalized   Gross Amount Carried            
                Subsequent to   at Close of Period 12/31/04            
            (b)   Acquisition or                
            Initial Cost   Completion       Accumulated        
    Location   (a)       and Valuation       Building and       Depreciation   Year Built/   Depreciable
Building Address   (City/State)   Encumbrances   Land   Buildings   Provision   Land   Improvements   Total   12/31/04   Renovated   Lives (Years)
                                             
Tampa — (Continued)
                                                                                        
5910 Breckenridge Parkway
     Tampa, FL               436       2,472       150       440       2,618       3,058       299       1982       (o)  
5912 Breckenridge Parkway
     Tampa, FL               460       2,607       58       464       2,661       3,125       276       1982       (o)  
4515-4519 George Road
     Tampa, FL               633       3,587       457       640       4,037       4,677       368       1985       (o)  
6301 Benjamin Road
     Tampa, FL               292       1,657       74       295       1,728       2,023       158       1986       (o)  
5723 Benjamin Road
     Tampa, FL               406       2,301       54       409       2,352       2,761       205       1986       (o)  
6313 Benjamin Road
     Tampa, FL               229       1,296       129       231       1,423       1,654       140       1986       (o)  
5801 Benjamin Road
     Tampa, FL               564       3,197       75       569       3,267       3,836       287       1986       (o)  
5802 Benjamin Road
     Tampa, FL               686       3,889       443       692       4,326       5,018       377       1986       (o)  
5925 Benjamin Road
     Tampa, FL               328       1,859       76       331       1,932       2,263       178       1986       (o)  
6089 Johns Road
     Tampa, FL       (j)       180       987       15       186       996       1,182       4       1985       (o)  
6091 Johns Road(r)
     Tampa, FL       (j)       140       730       10       144       736       880       3       1986       (o)  
6103 Johns Road
     Tampa, FL       (j)       220       1,160       19       226       1,173       1,399       5       1986       (o)  
6201 Johns Road(r)
     Tampa, FL       (j)       200       1,107       15       205       1,117       1,322       5       1981       (o)  
6203 Johns Road(r)
     Tampa, FL       (j)       300       1,460       24       311       1,473       1,784       8       1987       (o)  
6205 Johns Road(r)
     Tampa, FL       (j)       270       1,363       22       278       1,377       1,655       5       2000       (o)  
6101 Johns Road(r)
     Tampa, FL               210       833       15       216       842       1,058       4       1981       (o)  
2904 Falkenburg Rd.(r)
     Brandon, FL               372       —       1,639       404       1,607       2,011       9       2004       (o)  
3002 S. Falkenburg(r)
     Brandon, FL               452       —       841       325       968       1,293       6       2004       (o)  
Other
                                                                                        
4200 West Harry Street(l)
     Wichita, KS               193       2,224       1,777       532       3,662       4,194       1,795       1972       (o)  
6601 S. 33rd Street
     McAllen, TX               231       1,276       244       233       1,518       1,751       321       1975       (o)  
9601A Dessau Road
     Austin, TX               255       —       2,231       366       2,120       2,486       303       1999       (o)  
9601B Dessau Road
     Austin, TX               248       —       1,966       355       1,859       2,214       451       1999       (o)  
9601C Dessau Road
     Austin, TX               248       —       2,141       355       2,034       2,389       673       1999       (o)  
555 Vista Blvd
     Sparks, NV               1,693       9,592       (398 )     1,093       9,794       10,887       629       1980       (o)  
3501 Maple Street(r)
     Abilene, TX               67       1,057       1,126       266       1,984       2,250       898       1980       (o)  
6266 Hurt Road(r)
     Horn Lake, MS               1,825       —       688       367       2,126       2,493       101       1963       (o)  
6266 Hurt Road, Building B(r)
     Horn Lake, MS               —       —       7       —       7       7       —       1963       (o)  
6266 Hurt Road, Building C(r)
     Horn Lake, MS               —       —       14       —       14       14       —       1963       (o)  
Redevelopments/ Developments/ Developable Land
                     47,587       3,093       18,442       65,469       3,653       69,122       138 (p)                
                                                                   
                    $ 454,261     $ 1,847,242     $ 585,873     $ 480,579     $ 2,406,797     $ 2,887,376     $ 381,297 (q)                
                                                                   

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NOTES:
(a) See description of encumbrances in Note 5 to Notes to Consolidated Financial Statements.
 
(b) Initial cost for each respective property is tangible purchase price allocated in accordance with SFAS No. 141.
 
(c) These properties collateralize the Assumed Loan I.
 
(d) This property collateralizes the Acquisition Mortgage Loan VIII.
 
(e) This property collateralizes the Acquisition Mortgage Loan IX.
 
(f) This property collateralizes the Acquisition Mortgage Loan IV.
 
(g) This property collateralizes the Acquisition Mortgage Loan V.
 
(h) This property collateralizes the Acquisition Mortgage Loan X.
 
(i) These properties collateralize the Acquisition Mortgage Loan XIII.
 
(j) These properties collateralize the Acquisition Mortgage Loan XIV.
 
(k) Comprised of two properties.
 
(l) Comprised of three properties.
 
(m) Comprised of four properties.
 
(n) Comprised of 28 properties.
 
(o) Depreciation is computed based upon the following estimated lives:
         
Buildings, Improvements
     20 to 50 years  
Tenant Improvements, Leasehold Improvements
     Life of lease  
Furniture, Fixtures and Equipment
     5 to 10 years  
(p) These properties represent developable land and redevelopments that have not been placed in service.
 
(q) Excludes $23,092 of Construction in Progress, and includes real estate held for sale of $8,453 (Land), $45,541 (Buildings and Improvements), and $2,914 (Accumulated Depreciation).
 
(r) Property is not in-service as of 12/31/04.
 
(s) Improvements are net of write-off of fully depreciated assets.
 
(t) This property collateralizes the Assumed Loan II.
 
(u) This property collateralizes the Acquisition Mortgage Loan XII.
      At December 31, 2004, the aggregate cost of land and buildings and equipment for federal income tax purpose was approximately $2.6 billion (excluding construction in progress.)

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FIRST INDUSTRIAL REALTY TRUST, INC.
SCHEDULE III:
REAL ESTATE AND ACCUMULATED DEPRECIATION (continued)
As of December 31, 2004
      The changes in total real estate assets for the three years ended December 31, 2004 are as follows:
                         
    2004   2003   2002
             
    (Dollars in thousands)
Balance, Beginning of Year
   $ 2,738,034     $ 2,706,125     $ 2,748,835  
Acquisition, Construction Costs and Improvements
     508,572       334,836       357,704  
Disposition of Assets
     (313,940 )     (302,927 )     (400,414 )
Write-off of Fully Depreciated Assets
     (22,198 )     —       —  
                   
Balance, End of Year
   $ 2,910,468     $ 2,738,034     $ 2,706,125  
                   
      The changes in accumulated depreciation for the three years ended December 31, 2004 are as follows:
                         
    2004   2003   2002
             
Balance, Beginning of Year
   $ 349,252     $ 310,517     $ 280,518  
Depreciation for Year
     82,757       73,902       67,525  
Disposition of Assets
     (28,514 )     (35,167 )     (37,526 )
Write-off of Fully Depreciated Assets
     (22,198 )     —       —  
                   
Balance, End of Year
   $ 381,297     $ 349,252     $ 310,517  
                   

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