First Industrial Realty Trust : Citi Global Property CEO Conference

Citi Global Property CEO Conference

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Safe Harbor

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend for 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. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors which could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the outbreak of coronavirus disease 2019 (COVID-19); risks associated with security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology networks and related systems; our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher- than-expected real estate construction costs and delays in development or lease-up schedules; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; technological developments, particularly those affecting supply chains and logistics; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2023, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the SEC. We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC.

First Lehigh Logistics Center - Central/Eastern PA 105,000 SF | Built in 2023

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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COMPANY OVERVIEW

FirstGate Logistics Center - South FL

131,683 SF | Built in 2022

Strategy to Create Value

U.S. industrial platform focused on 15 key logistics markets with a coastal orientation

Focus on distribution/logistics properties critical to customers' supply chains

Drive cash flow growth by:

• lease-upof developments
• increasing rents
• capturing rental rate escalations
• sustaining occupancy

New investment primarily in supply-constrained coastal markets via profitable development of best-in-class assets

• Land developable up to 15.8 MSF as market conditions/tenant demand warrant

Strong balance sheet, prudent enterprise risk management

First Loop Logistics Park - Orlando 347,290 SF | Built in 2023

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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Recent Highlights(1)

95.5%(2)	8.4% (3)
OCCUPANCY	CASH SAME STORE
	NOI GROWTH FY23
58%	39%
CASH RENTAL RATE	CASH RENTAL RATE
INCREASE FY23	INCREASE
FR Record	Leases Signed To-Date
	Commencing in 2024 (1)
15.6%	$0
DIVIDEND	DEBT MATURING
INCREASE IN 1Q24	PRIOR TO 2026 (4)

1. Per results press release/earnings call February 7/8, 2024. 4Q23 or FY 23 data unless noted.
2. 97.9% excluding impact of not fully leased developments placed in service in 3Q and 4Q 2023.
3. Excludes $1.4M of insurance settlement gains recognized in 4Q22.
4. Assumes exercise of FR's extension options.

LEASING HIGHLIGHTS - 4Q23 and 1Q24

• 100%, 644 KSF, 500 Old Post Rd, Baltimore
• 50%, 349 KSF, 400 Old Post Rd, Baltimore
• 209 KSF, First Park 94 Building D, Chicago
• 43 KSF, First Loop Logistics Park Building III, Orlando
• 100%, 37 KSF, First 92, Northern California
• 40 KSF, First 76 Logistics Center, Denver
• 100%, 376 KSF, Camelback 303 JV Building A, Phoenix

DEVELOPMENT

• First Pine Hills Build-to-Suit, 112 KSF, $21M, Orlando

ACQUISITIONS

• 69 KSF, Inland Empire West, sale-leaseback, $25M
• 54 KSF fully leased building, Houston, $8M

DISPOSITIONS

• 11 buildings, 1 MSF + two land sites, $125M in FY23
• 5 building portfolio, Cincinnati, 278 KSF, $33M in 1Q24

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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Portfolio Composition(1)

% o f R e n t a l R e v e n u e a s o f D e c e m b e r 3 1 , 2 0 2 3 (2)

Diverse Tenant Base

985 in-service tenants

Top 20 = 25.9%

Infill Portfolio

Portfolio is within 30 miles of 3.9M avg.

population with household income ≈ 10% greater than US median

Development Impact

26.4 MSF added since 2012; ≈ 41% of in-service portfolio

Met YE 2023 Objectives

From Investor Day 2020

 95% rental revenue from 15 target markets

 57% coastal - exceeded top end of 50% - 55% target

1. Map excludes the markets of Minneapolis/St. Paul (2.8%), Detroit (1.3%) and Cincinnati (1.0%).
2. Current quarter rent revenue % excludes rent revenue from properties sold in 4Q23.

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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U.S. Industrial Market Landscape

• National Market Metrics - 4Q23
• • Vacancy 4.8%
  • Net Absorption 238 MSF in 2023
  • Completions 612 MSF in 2023
  • Under Construction 376 MSF
  • • 29% pre-leased
    • 13-14months-to-lease(1) assuming TTM pace of net absorption
• Demand is softer than 2022 as tenants are cautious and taking more time to commit to new space
• Long-terme-commerce drivers intact; incremental demand from diversification and reshoring trends

INDUSTRIAL SUPPLY & DEMAND (MSF)

		627		612
			526	508
336	375		381
337
297
				238

2019	2020	2021	2022	2023
			Net Absorption			Completions

1. Months-to-leasereflects lease-up time for the unleased portion of supply currently under construction assuming the trailing twelve month pace of net absorption. Source: CBRE‐EA Data Views as of February 27, 2024 (historical figures revised).

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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Construction Starts Decline; Pipelines Shrink

					CONSTRUCTION STARTS (MSF)											CONSTRUCTION PIPELINE (MSF)
																	47%
																				41%
																					36%	34%
																						32%	31%
																													29%
																									28%				27%
																										24%	25%	25%
	67	95	117	100	111	100	114	86	68	66	48	46				376	410	449	514	545	627	662	668	620	572	479	376
		1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23
					1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23

Pre-leased percentage of pipeline square footage

• Construction starts down 59% from 3Q22 peak
• Existing pipeline projects also facing delays suggesting further slowdown in deliveries
• Future new supply constrained by:
• • Lower availability and tighter lending standards from banks are slowing down/halting new projects
  • Scarcity of readily developable land in coastal and infill markets

PULLBACK IN NEW CONSTRUCTION STARTS IN 2023 MAY CREATE

A SHORTAGE OF CLASS A FIRST GENERATION SPACE IN THE COMING YEARS

Source: CBRE research as of February 27, 2024.

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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Key Portfolio Cash Flow Metrics

A s o f D e c e m b e r 3 1 , 2 0 2 3

OCCUPANCY

(period end)

CASH RENTAL RATES

(period average)

CASH SAME STORE NOI (1)

(full year)

100%

98%

97.6% 98.1%

98.8%

±96.5% (3)

60%	58.3%
50%	±46.0%

12%
10.1%
10%
	±8.5%
8.4%

96%

94%

92%

90%

95.7%95.5%

'19

'20

'21

'22

'23

'24F (2)

40%
			26.7%
30%			16.2%
20%	13.9%	13.5%
10%
0%
'19	'20	'21	'22	'23	'24F (2)

8%
6%		4.4%	5.3%
4%
3.1%
2%
'19	'20	'21	'22	'23	'24F (2)

4Q23 Occupancy excluding not fully leased developments placed in service impact

= 97.9%

CAPTURING EMBEDDED RENT GROWTH TO DRIVE CASH FLOW (2)

• OUTLOOK FOR FY CASH RENTAL GROWTH IS 40% - 52%
• 39% CASH INCREASE ON 53% OF 2024 NEW AND RENEWAL LEASING

1. Cash same store is the annual amount for the end of the year population. Excludes lease termination fees. Excludes impact of $1.4M of income in 2022 from final settlement of insurance claims for damaged properties for 2022 and 2023 calculations. Excludes impact of $2.9M of income in 2023 related to the accelerated recognition of a tenant improvement reimbursement for 2024 calculation.
2. 2024 midpoint forecast figures. 2024 new and renewal lease signings per press release/conference call February 7/8, 2024.
3. 2024 occupancy forecast represents average quarter-end in service occupancy.

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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Financial Performance

				FFO PER SHARE (1)							DIVIDEND PER SHARE
$2.80							$1.50						$1.48
					$2.61
$2.60							$1.40
				$2.42						$1.28
$2.40							$1.30
			$2.27
$2.20							$1.20				$1.18
		$1.97						$1.08
$2.00						$1.10
$1.74	$1.80						$1.00			Quarterly dividend of $0.37
$1.80						$1.00					annualized, 15.6% growth
						$0.92				from prior rate; aligned with
$1.60							$0.90					our projected AFFO growth
										and ≈ 70% payout ratio (3)
$1.40							$0.80
'19	'20	'21	'22	'23	'24F (2)	'19	'20	'21	'22	'23	'24F

1. FFO per share excludes atypical items per disclosures in earnings results calls.
2. 2024 FFO per share reflects midpoint of guidance before $0.02 of accelerated expense related to accounting rules that require the Company to fully expense the value of granted equity-based compensation for certain tenured employees per press release dated February 7, 2024.
3. AFFO as defined in our 4Q23 supplemental report.

F I R S T I N D U S T R I A L R E A L T Y T R U S T , I N C .

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