FIRST INDUSTRIAL REALTY TRUST, INC. 
By CHICAGO, Feb. 20, 2013 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE: FR), a leading owner and operator of industrial real estate and provider of supply chain solutions, today announced results for the fourth quarter and full year 2012. Diluted net loss available to common stockholders per share (EPS) was $(0.09) in the fourth quarter, compared to $(0.05) a year ago. Full year 2012 diluted net loss available to common stockholders was $(0.24) per share, compared to $(0.34) per share in 2011.
(Logo: http://photos.prnewswire.com/prnh/20040106/FRLOGO)
First Industrial's fourth quarter FFO was $0.18 per share/unit on a diluted basis, compared to $0.23 per share/unit for the year ago quarter. Full year 2012 FFO was $0.88 per share/unit on a diluted basis versus $0.89 per share/unit in 2011.
FFO per share results for the fourth quarter of 2012 include a $0.03 loss on retirement of debt and a $0.02 loss related to the partial redemption of the 7.25% Series J Cumulative Redeemable Preferred Stock. Results for the quarter reflected increased general and administrative expenses due to accelerated vesting of incentive compensation and lease termination fees of $2.9 million.
FFO results for the full year 2012 include a $0.10 loss on retirement of debt, a $0.02 loss related to the partial redemption of the 7.25% Series J Cumulative Redeemable Preferred Stock, the one-time charge of $0.06 per share related to the Company's preliminary agreement with the IRS related to the audit of the Company's 2009 taxable REIT subsidiary liquidation, and $0.04 per share of NAREIT-compliant gains.
"In 2012, our team continued on its mission to drive value from leasing, strengthen our balance sheet and refine our portfolio through active asset management and new investment," said Bruce W. Duncan, First Industrial's president and CEO. "As a result of our execution and our positive outlook for our portfolio supported by improving industry fundamentals, the Board decided to re-initiate a common dividend for the first quarter of 2013."
Portfolio Performance for On Balance Sheet Properties
-- In-service occupancy was 89.9% at the end of the quarter, up 140 basis
points from 88.5% at the end of the third quarter 2012, and up 200 basis
points from 87.9% at the end of the fourth quarter of 2011.
-- Retained tenants in 77.2% of square footage up for renewal.
-- Excluding lease termination fees, same store cash basis net operating
income (NOI) increased 7.0%. Including lease termination fees, same
store cash basis NOI increased 12.4%.
-- Rental rates decreased 6.8% on a cash basis; leasing costs were $2.67
per square foot.
Common Stock Dividend Re-initiated
The board of directors re-initiated the Company's common stock dividend by declaring a dividend of $0.085 per share/unit for the quarter ending March 31, 2013 payable on April 15, 2013 to stockholders of record on March 29, 2013.
"We are pleased to return to being a dividend-paying REIT," added Mr. Duncan. "The Board established the dividend at a level from which we hope to grow as we further lease-up our portfolio, while enabling us to retain capital for our business needs and new investment."
Preferred Dividends
The board of directors declared a dividend of $0.45313 per depositary share on its 7.25% Series J Cumulative Redeemable Preferred Stock (NYSE: FR-PrJ) for the quarter ending March 31, 2013 payable on April 1, 2013 to stockholders of record on March 15, 2013.
Additionally, the board of directors declared a dividend of $0.45313 per depositary share on its 7.25% Series K Cumulative Redeemable Preferred Stock (NYSE: FR-PrK) for the quarter ending March 31, 2013 payable on April 1, 2013 to stockholders of record on March 15, 2013.
Capital Markets Activities and Financial Position
In the fourth quarter, the Company:
-- Redeemed $50 million (2 million depositary shares) of its 7.25% Series J
Cumulative Redeemable Preferred Stock.
-- Repurchased $13.7 million of its 7.60% Notes due 2028 and $1.0 million
of its 7.75% Senior Notes due 2032.
-- Paid off $14.1 million of mortgage debt with a weighted average interest
rate of 7.58%.
In the first quarter of 2013 to date, the Company:
-- Repurchased $4.0 million of its 7.60% Notes due 2028.
"We continued to reduce our capital costs by redeploying excess sales proceeds for the partial redemption of our 7.25% Series J preferred stock," said Scott Musil, chief financial officer. "To further reduce borrowing costs, we plan to prepay $72 million of mortgages at a weighted average interest rate of 7.0% in 2013."
Divestment Activities
In the fourth quarter, the Company:
-- Completed the sale of three properties totaling approximately 151,000
square feet for a total of $5.2 million.
For the full year 2012, the Company
-- Completed the sale of 28 properties and one land parcel totaling
approximately 4.2 million square feet for a total of $85.6 million.
In the first quarter of 2013 to date, the Company sold one property comprised of 41,000 square feet for $1.7 million.
Development Leasing
During the first quarter of 2013, the Company signed a long-term lease for its 300,300 square-foot First Chino Logistics Center development in process in the Inland Empire in Southern California. The tenant is expected to take occupancy of the building approximately midway through the second quarter of 2013.
"On the heels of leasing our 692,000 square-foot First Inland Logistics Center in the Inland Empire last year, we were successful in leasing our First Chino Logistics Center development more than one year ahead of schedule," said Johannson Yap, chief investment officer.
Outlook for 2013
Mr. Duncan stated, "Industry fundamentals continue to improve in step with the economy, while new supply of industrial space is limited relative to historical levels. Our team is focused on capturing the growth opportunity within our existing portfolio, lease-up of our developments, as well as new investment."
Low End of High End of
Guidance for 2013 Guidance for 2013
(Per share/unit) (Per share/unit)
---------------- ----------------
Net Loss Available to Common Stockholders (0.13) (0.03)
Add: Real Estate Depreciation/Amortization 1.13 1.13
FFO (NAREIT Definition) $1.00 $1.10
===== =====
Add: Loss from Retirement of Debt Related to Planned Early Mortgage
Payoffs and 1Q13 Senior Note Repurchase 0.02 0.02
---- ----
FFO Before Loss from Retirement of Debt $1.02 $1.12
===== =====
The following assumptions were used:
-- Average in-service occupancy of 90.5% to 92.0%.
-- Same-store NOI of positive 1% to 3% for the full year.
-- JV FFO of approximately $0.5 million.
-- General and administrative expense of approximately $21.5 million to
$22.5 million.
-- Guidance includes the impact of our plan to prepay, prior to maturity,
approximately $72 million of mortgage debt with a weighted average
interest rate of approximately 7.0%. Guidance also reflects the
aforementioned repurchase in 1Q13 of $4.0 million of the Company's 7.60%
Notes due 2028.
-- Guidance includes the incremental costs to complete the Company's three
developments in process. The Company plans to capitalize $0.02 per
share of interest related to these developments.
-- Guidance reflects the impact of the lease-up of the First Chino
Logistics Center in 2Q13 as discussed above.
-- Guidance does not include the impact of:
-- any other future debt repurchases prior to maturity or future debt
issuances,
-- any future property sales or investments,
-- any lease-up of the First Bandini Logistics Center or First
Logistics Center @ I-83 developments in process,
-- any future impairment gains or losses,
-- any NAREIT-compliant gains, or
-- issuance of additional equity, which the Company may elect to do,
depending on market conditions.
A number of factors could impact our ability to deliver results in line with our assumptions, such as interest rates, the economies of North America, the supply and demand of industrial real estate, the availability and terms of financing to potential acquirers of real estate, the timing and yields for divestment and investment, and numerous other variables. There can be no assurance that First Industrial can achieve such results.
FFO Definition
First Industrial reports FFO in accordance with the NAREIT definition to provide a comparative measure to other REITs. NAREIT recommends that REITs define FFO as net income, excluding gains (or losses) from the sale of previously depreciated property, plus depreciation and amortization, excluding impairments from previously depreciated assets, and after adjustments for unconsolidated partnerships and joint ventures.
About First Industrial Realty Trust, Inc.
First Industrial Realty Trust, Inc. (NYSE: FR) is a leading owner and operator of industrial real estate and provider of supply chain solutions to multinational corporations and regional customers. Across major markets in North America, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. We have a track record of industry leading customer service, and in total, we own, manage and have under development approximately 67.5 million square feet of industrial space as of December 31, 2012. For more information, please visit us at www.firstindustrial.com. We post or otherwise make available on this website from time to time information that may be of interest to investors.
Forward-Looking Information
This press release and the presentation to which it refers may contain certain 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 and are 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," "seek," "target," "potential," "focus," "may," "should" or similar expressions. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. 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 (including the Internal Revenue Service); 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) to us and to our potential counterparties; the availability and attractiveness of terms of additional debt repurchases; interest rates; our credit agency ratings; our ability to comply with applicable financial covenants; competition; changes in supply and demand for industrial properties (including land, the supply and demand for which is inherently more volatile than other types of industrial property) in the Company's current and proposed market areas; difficulties in consummating acquisitions and dispositions; risks related to our investments in properties through joint ventures; environmental liabilities; slippages in development or lease-up schedules; tenant creditworthiness; higher-than-expected costs; changes in asset valuations and related impairment charges; changes in general accounting principles, policies and guidelines applicable to real estate investment trusts; international business risks; and those additional factors described under the heading "Risk Factors" and elsewhere in the Company's annual report on Form 10-K for the year ended December 31, 2011 and in the Company's subsequent '34 Act reports. 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 the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission.
A schedule of selected financial information is attached.
First Industrial Realty Trust, Inc. (NYSE: FR) will host its quarterly conference call on Thursday, February 21, 2013 at 12:00 p.m. EST (11:00 a.m. CST). The conference call may be accessed by dialing (888) 823-7459, passcode "First Industrial". The conference call will also be webcast live on the Investor Relations page of the Company's website at www.firstindustrial.com. The replay will also be available on the website.
The Company's fourth quarter and full year supplemental information can be viewed on First Industrial's website, www.firstindustrial.com, under the "Investor Relations" tab.
FIRST INDUSTRIAL REALTY TRUST, INC.
Selected Financial Data
(Unaudited)
(In thousands except per share/unit data)
Three Months Ended Year Ended
------------------ ----------
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
---- ---- ---- ----
Statement of Operations and Other Data:
Total Revenues $84,327 $79,220 $327,273 $315,876
Property Expenses (27,815) (26,947) (105,126) (106,639)
General & Administrative (8,689) (5,585) (25,103) (20,638)
Restructuring Costs - - - (1,553)
Impairment of Real Estate - 451 164 7,634
Depreciation of Corporate FF&E (241) (328) (1,077) (1,426)
Depreciation and Other Amortization of Real Estate (29,043) (31,854) (119,820) (117,850)
------- ------- -------- --------
Total Expenses (65,788) (64,263) (250,962) (240,472)
Interest Income 613 888 2,874 3,922
Interest Expense (19,514) (23,196) (83,506) (100,127)
Amortization of Deferred Financing Costs (867) (726) (3,460) (3,963)
Mark-to-Market Gain (Loss) on Interest Rate Protection Agreements 6 (158) (328) (1,718)
Loss from Retirement of Debt (3,038) (855) (9,684) (5,459)
Foreign Currency Exchange Loss - - - (332)
--- --- --- ----
Loss from Continuing Operations Before Equity in Income of Joint
Ventures, Gain on Change in Control of Interests and Income Tax
Provision
(4,261) (9,090) (17,793) (32,273)
Equity in Income of Joint Ventures (a) 1,403 73 1,559 980
Gain on Change in Control of Interests - - 776 689
Income Tax Provision (264) (424) (5,522) (450)
---- ---- ------ ----
Loss from Continuing Operations (3,122) (9,441) (20,980) (31,054)
Discontinued Operations:
Income Attributable to Discontinued Operations 58 1,380 2,019 1,773
Gain on Sale of Real Estate 660 7,068 12,665 20,419
Benefit (Provision) for Income Taxes Allocable to Discontinued - 817 - (1,246)
Operations
Income from Discontinued Operations 718 9,265 14,684 20,946
Loss Before Gain on Sale of Real Estate (2,404) (176) (6,296) (10,108)
Gain on Sale of Real Estate - - 3,777 1,370
Provision for Income Taxes Allocable to Gain on Sale of Real Estate - - - (452)
--- --- --- ----
Net Loss (2,404) (176) (2,519) (9,190)
Net Loss Attributable to the Noncontrolling Interest 433 255 1,201 1,745
--- --- ----- -----
Net (Loss) Income Attributable to First Industrial Realty Trust, Inc. (1,971) 79 (1,318) (7,445)
Preferred Dividends (4,662) (4,763) (18,947) (19,565)
Redemption of Preferred Stock (1,804) - (1,804) -
Net Loss Available to First Industrial Realty Trust, Inc.'s Common
Stockholders
$(8,437) $(4,684) $(22,069) $(27,010)
======= ======= ======== ========
RECONCILIATION OF NET LOSS AVAILABLE TO FIRST
INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS TO
FFO (b) AND FAD (b)
Net Loss Available to First Industrial Realty Trust, Inc.'s Common
Stockholders
$(8,437) $(4,684) $(22,069) $(27,010)
Depreciation and Other Amortization of Real Estate 29,043 31,854 119,820 117,850
Depreciation and Other Amortization of Real Estate Included in 160 727 1,612 4,473
Discontinued Operations
Impairment of Depreciated Real Estate - 155 (164) (514)
Impairment of Depreciated Real Estate Included in Discontinued - 93 1,410 4,973
Operations
Noncontrolling Interest (433) (255) (1,201) (1,745)
Equity in Dep/Other Amortization of Joint Ventures (a) (275) 102 (20) 551
Gain on Change in Control of Interests - - (776) (689)
Non-NAREIT Compliant Gain (b) (660) (7,068) (12,665) (20,419)
Non-NAREIT Compliant Gain from Joint Ventures (a) (b) (845) - (902) (616)
---- --- ---- ----
Funds From Operations (NAREIT) ("FFO") (b) $18,553 $20,924 $85,045 $76,854
Loss from Retirement of Debt 3,038 855 9,684 5,459
Restricted Stock/Unit Amortization 4,852 991 8,559 3,759
Amortization of Deferred Financing Costs 867 726 3,460 3,963
Depreciation of Corporate FF&E 241 328 1,077 1,426
Impairment of Undepreciated Real Estate - (606) - (7,120)
Redemption of Preferred Stock 1,804 - 1,804 -
Mark-to-Market (Gain) Loss on Interest Rate Protection Agreements (6) 158 328 1,718
Non-Incremental Capital Expenditures (15,429) (18,306) (49,279) (56,038)
Straight-Line Rental Income Adjustment (1,121) (1,987) (3,504) (7,733)
Funds Available for Distribution ("FAD") (b) $12,799 $3,083 $57,174 $22,288
======= ====== ======= =======
FIRST INDUSTRIAL REALTY TRUST, INC.
Selected Financial Data
(Unaudited)
(In thousands except per share/unit data)
Three Months Ended Year Ended
------------------ ----------
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
---- ---- ---- ----
RECONCILIATION OF NET LOSS AVAILABLE TO FIRST
INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS TO
EBITDA (b) AND NOI (b)
Net Loss Available to First Industrial Realty Trust, Inc.'s Common
Stockholders
$(8,437) $(4,684) $(22,069) $(27,010)
Interest Expense 19,514 23,196 83,506 100,127
Interest Expense Included in Discontinued Operations - - - 63
Restructuring Costs - - - 1,553
Depreciation and Other Amortization of Real Estate 29,043 31,854 119,820 117,850
Depreciation and Other Amortization of Real Estate Included in 160 727 1,612 4,473
Discontinued Operations
Impairment of Depreciated Real Estate - 155 (164) (514)
Impairment of Depreciated Real Estate Included in Discontinued - 93 1,410 4,973
Operations
Impairment of Undepreciated Real Estate - (606) - (7,120)
Preferred Dividends 4,662 4,763 18,947 19,565
Redemption of Preferred Stock 1,804 - 1,804 -
Income Tax Provision (Benefit) 264 (393) 5,522 2,148
Noncontrolling Interest (433) (255) (1,201) (1,745)
Loss from Retirement of Debt 3,038 855 9,684 5,459
Amortization of Deferred Financing Costs 867 726 3,460 3,963
Depreciation of Corporate FF&E 241 328 1,077 1,426
Equity in Dep/Other Amortization of Joint Ventures (a) (275) 102 (20) 551
Gain on Change in Control of Interests - - (776) (689)
Non-NAREIT Compliant Gain (b) (660) (7,068) (12,665) (20,419)
Non-NAREIT Compliant Gain from Joint Ventures (a) (b) (845) - (902) (616)
EBITDA (b) $48,943 $49,793 $209,045 $204,038
General and Administrative 8,689 5,585 25,103 20,638
Foreign Currency Exchange Loss - - - 332
Mark-to-Market (Gain) Loss on Interest Rate Protection Agreements (6) 158 328 1,718
NAREIT Compliant Economic Gain (b) - - (3,777) (1,370)
FFO of Joint Ventures (b) (360) (445) (1,153) (1,885)
Net Operating Income ("NOI") (b) $57,266 $55,091 $229,546 $223,471
======= ======= ======== ========
RECONCILIATION OF GAIN ON SALE OF REAL ESTATE TO
NAREIT COMPLIANT ECONOMIC GAIN (b)
Gain on Sale of Real Estate $ - $ - $3,777 $1,370
Gain on Sale of Real Estate included in Discontinued Operations 660 7,068 12,665 20,419
Non-NAREIT Compliant Gain (b) (660) (7,068) (12,665) (20,419)
---- ------ ------- -------
NAREIT Compliant Economic Gain (b) $ - $ - $3,777 $1,370
==================== ==================== ====== ======
Weighted Avg. Number of Shares/Units Outstanding - Basic/Diluted (c) 102,599 91,200 96,509 85,913
Weighted Avg. Number of Shares Outstanding - Basic/Diluted (c) 97,738 85,941 91,468 80,616
Per Share/Unit Data:
FFO (NAREIT) Allocable to Common Stockholders and Unitholders $18,553 $20,924 $85,045 $76,854
- Basic/Diluted (c) $0.18 $0.23 $0.88 $0.89
Loss from Continuing Operations, including Gain on Sale of Real Estate, Net of Income Tax Provision $(3,122) $(9,441) $(17,203) $(30,136)
Add: Noncontrolling Interest Allocable to Continuing Operations and Gain on Sale of Real Estate 466 794 1,962 3,027
Less: Preferred Dividends (4,662) (4,763) (18,947) (19,565)
Less: Redemption of Preferred Stock (1,804) - (1,804) -
------ --- ------ ---
Loss from Continuing Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders $(9,122) $(13,410) $(35,992) $(46,674)
- Basic/Diluted (c) $(0.09) $(0.16) $(0.39) $(0.58)
Net Loss Available to First Industrial Realty Trust, Inc.'s Common Stockholders $(8,437) $(4,684) $(22,069) $(27,010)
- Basic/Diluted (c) $(0.09) $(0.05) $(0.24) $(0.34)
Balance Sheet Data (end of period):
Gross Real Estate Investment $3,121,448 $2,992,096
Real Estate and Other Assets Held For Sale, Net 6,765 91,659
Total Assets 2,608,842 2,666,657
Debt 1,335,766 1,479,483
Total Liabilities 1,463,189 1,594,062
Total Equity $1,145,653 $1,072,595
a) Represents the Company's pro rata
share of net income (loss),
depreciation and amortization on real
estate and Non-NAREIT compliant gain
(loss), if applicable.
b) Investors in, and analysts
following, the real estate industry
utilize funds from operations ("FFO"),
net operating income ("NOI"), EBITDA
and funds available for distribution
("FAD"), variously defined below, as
supplemental performance measures.
While the Company believes net income
(loss) available to First Industrial
Realty Trust, Inc.'s common
stockholders and participating
securities, as defined by GAAP, is the
most appropriate measure, it considers
FFO, NOI, EBITDA and FAD, given their
wide use by, and relevance to
investors and analysts, appropriate
supplemental performance measures.
FFO, reflecting the assumption that
real estate asset values rise or fall
with market conditions, principally
adjusts for the effects of GAAP
depreciation and amortization of real
estate assets. NOI provides a measure
of rental operations, and does not
factor in depreciation and
amortization and non-property
specific expenses such as general and
administrative expenses. EBITDA
provides a tool to further evaluate
the ability to incur and service debt
and to fund dividends and other cash
needs. FAD provides a tool to further
evaluate the ability to fund
dividends. In addition, FFO, NOI,
EBITDA and FAD are commonly used in
various ratios, pricing multiples/
yields and returns and valuation
calculations used to measure financial
position, performance and value.
The National Association of Real Estate
Investment Trusts ("NAREIT") has a
published definition of FFO and from
January 1, 2009 until September 30,
2011, the Company calculated FFO to be
equal to net income (loss) available
to First Industrial Realty Trust,
Inc.'s common stockholders and
participating securities, plus
depreciation and amortization on real
estate less non-NAREIT compliant gain
(loss) in accordance with NAREIT's
definition of FFO. In the fourth
quarter of 2011, NAREIT modified its
definition of FFO to exclude
impairment write downs of depreciable
real estate from FFO. Beginning in the
fourth quarter of 2011, the Company
adopted NAREIT's updated FFO
definition. NAREIT Compliant Economic
Gain (Loss) results from the sale of
properties not previously depreciated.
Non-NAREIT Compliant Gain (Loss)
results from the sale of depreciable
properties.
NOI is defined as revenues of the
Company, minus property expenses such
as real estate taxes, repairs and
maintenance, property management,
utilities, insurance and other
expenses. NOI includes NOI from
discontinued operations.
EBITDA is defined as NOI plus the
equity in FFO of the Company's joint
ventures, which are accounted for
under the equity method of accounting,
plus or minus NAREIT compliant
economic gain (loss), plus foreign
exchange loss, plus or minus mark-to-
market gain or loss on interest rate
protection agreements, minus general
and administrative expenses. EBITDA
includes EBITDA from discontinued
operations.
FAD is defined as EBITDA minus GAAP
interest expense, minus restructuring
costs, minus preferred stock
dividends, minus straight-line rental
income, minus provision for income
taxes or plus benefit for income
taxes, minus or plus mark-to-market
gain or loss on interest rate
protection agreements, plus restricted
stock amortization, minus non-
incremental capital expenditures.
Non-incremental capital expenditures
are building improvements and leasing
costs required to maintain current
revenues.
FFO, NOI, EBITDA and FAD do not
represent cash generated from
operating activities in accordance
with GAAP and are not necessarily
indicative of cash available to fund
cash needs, including the repayment of
principal on debt and payment of
dividends and distributions. FFO,
NOI, EBITDA and FAD should not be
considered as substitutes for net
income (loss) available to common
stockholders and participating
securities (calculated in accordance
with GAAP) as a measure of results of
operations or cash flows (calculated
in accordance with GAAP) as a measure
of liquidity. FFO, NOI, EBITDA and
FAD as currently calculated by the
Company may not be comparable to
similarly titled, but variously
calculated, measures of other REITs.
In addition, the Company considers
cash-basis same store NOI ("SS NOI")
to be a useful supplemental measure of
its operating performance. Same store
properties, for the period beginning
January 1, 2012, include all
properties owned prior to January 1,
2011 and held as an operating property
through the end of the current
reporting period, and developments and
redevelopments that were placed in
service or were substantially
completed for 12 months prior to
January 1, 2011 (the "Same Store
Pool"). The Company defines SS NOI as
NOI, less NOI of properties not in the
Same Store Pool, less the impact of
straight-line rent, the amortization
of lease inducements and the
amortization of above/below market
rent. For the quarters ended December
31, 2012 and December 31, 2011, NOI
was $57,266 and $55,091, respectively;
NOI of properties not in the Same
Store Pool was $(1,019) and $1,677,
respectively; the impact of straight-
line rent, the amortization of lease
inducements and the amortization of
above/below market rent was $496 and
$2,009, respectively. The Company
excludes straight-line rent,
amortization of lease inducements and
above/below market rent in
calculating SS NOI because the Company
believes it provides a better measure
of actual cash basis rental growth for
a year-over-year comparison. In
addition, the Company believes that SS
NOI helps the investing public compare
the operating performance of a
company's real estate as compared to
other companies. While SS NOI is a
relevant and widely used measure of
operating performance of real estate
investment trusts, it does not
represent cash flow from operations or
net income (loss) as defined by GAAP
and should not be considered as an
alternative to those measures in
evaluating our liquidity or operating
performance. SS NOI also does not
reflect general and administrative
expenses, interest expenses,
depreciation and amortization costs,
capital expenditures and leasing
costs, or trends in development and
construction activities that could
materially impact our results from
operations. Further, the Company's
computation of SS NOI may not be
comparable to that of other real
estate companies, as they may use
different methodologies for
calculating SS NOI.
c) In accordance with GAAP, the diluted
weighted average number of shares/
units outstanding and the diluted
weighted average number of shares
outstanding are the same as the basic
weighted average number of shares/
units outstanding and the basic
weighted average number of shares
outstanding, respectively, for periods
in which continuing operations is a
loss, as the dilutive effect of stock
options and restricted units would be
antidilutive to the loss from
continuing operations per share. The
Company has conformed with the GAAP
computation of diluted common shares
in computing per share amounts for
items included on the Statement of
Operations, including FFO and FAD.
GAAP requires unvested equity based
compensation awards that have
nonforfeitable rights to dividends or
dividend equivalents (whether paid or
unpaid) to be included in the two
class method of the computation of
EPS. For the three and twelve months
ended December 31, 2012 and December
31, 2011, there was no impact on basic
and diluted EPS as participating
security holders are not obligated to
share in net loss available to common
stockholders. The Company conforms
the calculation of FFO and FAD with
the calculation of EPS.
SOURCE First Industrial Realty Trust, Inc.
