ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland (First Industrial Realty Trust, Inc.) | 36-3935116 (First Industrial Realty Trust, Inc.) | |
Delaware ( First Industrial, L.P.) | 36-3924586 (First Industrial, L.P.) | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
311 S. Wacker Drive, Suite 3900, Chicago, Illinois | 60606 | |
(Address of principal executive offices) | (Zip Code) |
First Industrial Realty Trust, Inc. | Yes þ No o |
First Industrial, L.P. | Yes þ No o |
First Industrial Realty Trust, Inc. | Yes þ No o |
First Industrial, L.P. | Yes þ No o |
First Industrial Realty Trust, Inc.: | |||||||
Large accelerated filer | þ | Accelerated filer | o | ||||
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o | |||
Emerging growth company | o |
First Industrial, L.P.: | |||||||
Large accelerated filer | o | Accelerated filer | þ | ||||
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | o | |||
Emerging growth company | o |
First Industrial Realty Trust, Inc. | Yes o No o |
First Industrial, L.P. | Yes o No o |
First Industrial Realty Trust, Inc. | Yes o No þ |
First Industrial, L.P. | Yes o No þ |
• | Stockholders’ Equity, Noncontrolling Interest and Partners’ Capital. The 2.9% equity interest in the Operating Partnership held by entities other than the Company is classified within partners’ capital in the Operating Partnership’s financial statements and as a noncontrolling interest in the Company's financial statements. |
• | Relationship to Other Real Estate Partnerships. The Company's operations are conducted primarily through the Operating Partnership and its subsidiaries, although operations are also conducted through eight other limited partnerships, which are referred to as the "Other Real Estate Partnerships." The Operating Partnership is a limited partner, holding at least a 99% interest, and the Company is a general partner, holding at least a .01% general partnership interest through eight separate wholly-owned corporations, in each of the Other Real Estate Partnerships. The Other Real Estate Partnerships are variable interest entities that both the Company and the Operating Partnership consolidate. The Company's direct general partnership interest in the Other Real Estate Partnerships is reflected as noncontrolling interest within the Operating Partnership's financial statements. |
• | Relationship to Service Subsidiary. The Company has a direct wholly-owned subsidiary that does not own any real estate but provides services to various other entities owned by the Company. Since the Operating Partnership does not have an ownership interest in this entity, its operations are reflected in the consolidated results of the Company but not the Operating Partnership. Also, this entity owes certain amounts to the Operating Partnership, for which a receivable is included on the Operating Partnership’s balance sheet but is eliminated on the Company’s consolidated balance sheet, since both this entity and the Operating Partnership are fully consolidated by the Company. |
• | enhances investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management views and operates the business; |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports; and |
• | eliminates duplicative disclosures and provides a more streamlined and readable presentation for our investors to review since a substantial portion of the Company’s disclosure applies to both the Company and the Operating Partnership. |
• | consolidated financial statements; |
• | a single set of consolidated notes to such financial statements that includes separate discussions of each entity’s stockholders’ equity or partners’ capital, as applicable; and |
• | a combined Management’s Discussion and Analysis of Financial Condition and Results of Operations section that includes distinct information related to each entity. |
Page | ||
First Industrial Realty Trust, Inc. | ||
First Industrial, L.P. | ||
First Industrial Realty Trust, Inc. and First Industrial, L.P. | ||
Item 1. | Financial Statements |
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in Real Estate: | |||||||
Land | $ | 879,051 | $ | 864,813 | |||
Buildings and Improvements | 2,507,087 | 2,521,457 | |||||
Construction in Progress | 157,667 | 109,475 | |||||
Less: Accumulated Depreciation | (788,234 | ) | (789,919 | ) | |||
Net Investment in Real Estate | 2,755,571 | 2,705,826 | |||||
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $9,384 and $0 | 16,725 | — | |||||
Cash and Cash Equivalents | 19,782 | 21,146 | |||||
Restricted Cash | 48,579 | 25,336 | |||||
Tenant Accounts Receivable, Net | 5,770 | 4,873 | |||||
Deferred Rent Receivable, Net | 70,386 | 70,254 | |||||
Deferred Leasing Intangibles, Net | 31,350 | 30,481 | |||||
Prepaid Expenses and Other Assets, Net | 96,432 | 83,146 | |||||
Total Assets | $ | 3,044,595 | $ | 2,941,062 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Indebtedness: | |||||||
Mortgage Loans Payable, Net | $ | 301,661 | $ | 450,056 | |||
Senior Unsecured Notes, Net | 544,204 | 246,673 | |||||
Unsecured Term Loans, Net | 456,016 | 455,768 | |||||
Unsecured Credit Facility | 100,000 | 144,500 | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | 70,997 | 86,532 | |||||
Deferred Leasing Intangibles, Net | 10,734 | 10,355 | |||||
Rents Received in Advance and Security Deposits | 45,961 | 44,285 | |||||
Dividends and Distributions Payable | 27,558 | 27,016 | |||||
Total Liabilities | 1,557,131 | 1,465,185 | |||||
Commitments and Contingencies | — | — | |||||
Equity: | |||||||
First Industrial Realty Trust Inc.’s Stockholders’ Equity: | |||||||
Common Stock ($0.01 par value, 225,000,000 shares authorized and 120,557,079 and 119,883,180 shares issued and outstanding) | 1,206 | 1,199 | |||||
Additional Paid-in-Capital | 1,970,717 | 1,967,110 | |||||
Distributions in Excess of Accumulated Earnings | (535,169 | ) | (541,847 | ) | |||
Accumulated Other Comprehensive Income | 7,704 | 1,338 | |||||
Total First Industrial Realty Trust, Inc.’s Stockholders’ Equity | 1,444,458 | 1,427,800 | |||||
Noncontrolling Interest | 43,006 | 48,077 | |||||
Total Equity | 1,487,464 | 1,475,877 | |||||
Total Liabilities and Equity | $ | 3,044,595 | $ | 2,941,062 |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
Revenues: | |||||||
Rental Income | $ | 75,180 | $ | 74,918 | |||
Tenant Recoveries and Other Income | 24,591 | 22,465 | |||||
Total Revenues | 99,771 | 97,383 | |||||
Expenses: | |||||||
Property Expenses | 29,411 | 28,486 | |||||
General and Administrative | 8,143 | 8,033 | |||||
Impairment of Real Estate | 2,756 | — | |||||
Depreciation and Other Amortization | 28,315 | 28,494 | |||||
Total Expenses | 68,625 | 65,013 | |||||
Other Income (Expense): | |||||||
Gain on Sale of Real Estate | 20,089 | 8,009 | |||||
Interest Expense | (12,791 | ) | (14,369 | ) | |||
Amortization of Debt Issuance Costs | (855 | ) | (778 | ) | |||
Loss from Retirement of Debt | (39 | ) | (1,653 | ) | |||
Total Other Income (Expense) | 6,404 | (8,791 | ) | ||||
Income from Operations Before Income Tax Provision | 37,550 | 23,579 | |||||
Income Tax Provision | (86 | ) | (88 | ) | |||
Net Income | 37,464 | 23,491 | |||||
Less: Net Income Attributable to the Noncontrolling Interest | (1,172 | ) | (782 | ) | |||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 36,292 | $ | 22,709 | |||
Basic and Diluted Earnings Per Share: | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ | 0.30 | $ | 0.19 | |||
Dividends/Distributions Per Share | $ | 0.2175 | $ | 0.2100 | |||
Weighted Average Shares Outstanding - Basic | 119,846 | 116,837 | |||||
Weighted Average Shares Outstanding - Diluted | 120,211 | 117,261 |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
Net Income | $ | 37,464 | $ | 23,491 | |||
Mark-to-Market Gain on Interest Rate Protection Agreements | 6,525 | 2,178 | |||||
Amortization of Interest Rate Protection Agreements | 24 | 96 | |||||
Comprehensive Income | 44,013 | 25,765 | |||||
Comprehensive Income Attributable to Noncontrolling Interest | (1,378 | ) | (858 | ) | |||
Comprehensive Income Attributable to First Industrial Realty Trust, Inc. | $ | 42,635 | $ | 24,907 |
Common Stock | Additional Paid-in- Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | ||||||||||||||||||
Balance as of December 31, 2017 | $ | 1,199 | $ | 1,967,110 | $ | (541,847 | ) | $ | 1,338 | $ | 48,077 | $ | 1,475,877 | ||||||||||
Net Income | — | — | 36,292 | — | 1,172 | 37,464 | |||||||||||||||||
Other Comprehensive Income | — | — | — | 6,366 | 183 | 6,549 | |||||||||||||||||
Stock Based Compensation Activity | 3 | (1,106 | ) | (3,282 | ) | — | — | (4,385 | ) | ||||||||||||||
Common Stock Dividends and Unit Distributions | — | — | (26,332 | ) | — | (775 | ) | (27,107 | ) | ||||||||||||||
Conversion of Limited Partner Units to Common Stock | 4 | 5,005 | — | — | (5,009 | ) | — | ||||||||||||||||
Retirement of Limited Partner Units | — | — | — | — | (934 | ) | (934 | ) | |||||||||||||||
Reallocation - Additional Paid-in-Capital | — | (292 | ) | — | — | 292 | — | ||||||||||||||||
Balance as of March 31, 2018 | $ | 1,206 | $ | 1,970,717 | $ | (535,169 | ) | $ | 7,704 | $ | 43,006 | $ | 1,487,464 |
FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in thousands) | |||||||
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 37,464 | $ | 23,491 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation | 22,953 | 23,200 | |||||
Amortization of Debt Issuance Costs | 855 | 778 | |||||
Other Amortization, including Stock Based Compensation | 6,626 | 8,112 | |||||
Impairment of Real Estate | 2,756 | — | |||||
Provision for Bad Debt | 88 | 75 | |||||
Gain on Sale of Real Estate | (20,089 | ) | (8,009 | ) | |||
Loss from Retirement of Debt | 39 | 1,653 | |||||
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | (6,706 | ) | (4,147 | ) | |||
Increase in Deferred Rent Receivable, Net | (713 | ) | (1,494 | ) | |||
Decrease in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | (6,249 | ) | (3,571 | ) | |||
Net Cash Provided by Operating Activities | 37,024 | 40,088 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of Real Estate | (49,865 | ) | (15,074 | ) | |||
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | (63,994 | ) | (34,910 | ) | |||
Net Proceeds from Sales of Investments in Real Estate | 41,691 | 19,916 | |||||
Other Investing Activity | (3,053 | ) | (1,700 | ) | |||
Net Cash Used in Investing Activities | (75,221 | ) | (31,768 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Financing and Equity Issuance Costs | (2,676 | ) | (13 | ) | |||
Repurchase and Retirement of Restricted Stock | (6,020 | ) | (2,401 | ) | |||
Common Stock Dividends and Unit Distributions Paid | (26,565 | ) | (23,017 | ) | |||
Repayments on Mortgage Loans Payable | (160,163 | ) | (38,896 | ) | |||
Payments of Prepayment Penalties Associated with Retirement of Debt | — | (1,453 | ) | ||||
Proceeds from Senior Unsecured Notes | 300,000 | — | |||||
Proceeds from Unsecured Credit Facility | 162,000 | 85,000 | |||||
Repayments on Unsecured Credit Facility | (206,500 | ) | (22,500 | ) | |||
Net Cash Provided by (Used in) Financing Activities | 60,076 | (3,280 | ) | ||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 21,879 | 5,040 | |||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Year | 46,482 | 21,461 | |||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | 68,361 | $ | 26,501 | |||
FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited; in thousands) | |||||||
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | |||||||
Interest Expense Capitalized in Connection with Development Activity | $ | 1,602 | $ | 1,027 | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||||||
Common Stock Dividends and Unit Distributions Payable | $ | 27,558 | $ | 25,977 | |||
Exchange of Limited Partnership Units for Common Stock: | |||||||
Noncontrolling Interest | $ | (5,009 | ) | $ | — | ||
Common Stock | 4 | — | |||||
Additional Paid-in-Capital | 5,005 | — | |||||
Total | $ | — | $ | — | |||
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | $ | 11,724 | $ | — | |||
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | $ | 32,006 | $ | 22,186 | |||
Write-off of Fully Depreciated Assets | $ | (13,663 | ) | $ | (7,023 | ) |
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in Real Estate: | |||||||
Land | $ | 879,051 | $ | 864,813 | |||
Buildings and Improvements | 2,507,087 | 2,521,457 | |||||
Construction in Progress | 157,667 | 109,475 | |||||
Less: Accumulated Depreciation | (788,234 | ) | (789,919 | ) | |||
Net Investment in Real Estate (including $268,442 and $270,708 related to consolidated variable interest entities, see Note 5) | 2,755,571 | 2,705,826 | |||||
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $9,384 and $0 | 16,725 | — | |||||
Cash and Cash Equivalents | 19,782 | 21,146 | |||||
Restricted Cash | 48,579 | 25,336 | |||||
Tenant Accounts Receivable, Net | 5,770 | 4,873 | |||||
Deferred Rent Receivable, Net | 70,386 | 70,254 | |||||
Deferred Leasing Intangibles, Net | 31,350 | 30,481 | |||||
Prepaid Expenses and Other Assets, Net | 106,645 | 93,264 | |||||
Total Assets | $ | 3,054,808 | $ | 2,951,180 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Liabilities: | |||||||
Indebtedness: | |||||||
Mortgage Loans Payable, Net (including $20,833 and $61,256 related to consolidated variable interest entities, see Note 5) | $ | 301,661 | $ | 450,056 | |||
Senior Unsecured Notes, Net | 544,204 | 246,673 | |||||
Unsecured Term Loans, Net | 456,016 | 455,768 | |||||
Unsecured Credit Facility | 100,000 | 144,500 | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | 70,997 | 86,532 | |||||
Deferred Leasing Intangibles, Net | 10,734 | 10,355 | |||||
Rents Received in Advance and Security Deposits | 45,961 | 44,285 | |||||
Distributions Payable | 27,558 | 27,016 | |||||
Total Liabilities | 1,557,131 | 1,465,185 | |||||
Commitments and Contingencies | — | — | |||||
Partners’ Capital: | |||||||
First Industrial, L.P.'s Partners' Capital: | |||||||
General Partner Units (120,557,079 and 119,883,180 units outstanding) | 1,412,146 | 1,401,583 | |||||
Limited Partners Units (3,564,107 and 4,008,221 units outstanding) | 76,705 | 82,251 | |||||
Accumulated Other Comprehensive Income | 7,931 | 1,382 | |||||
Total First Industrial L.P.'s Partners’ Capital | 1,496,782 | 1,485,216 | |||||
Noncontrolling Interest | 895 | 779 | |||||
Total Partners’ Capital | 1,497,677 | 1,485,995 | |||||
Total Liabilities and Partners’ Capital | $ | 3,054,808 | $ | 2,951,180 |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
Revenues: | |||||||
Rental Income | 75,180 | $ | 74,918 | ||||
Tenant Recoveries and Other Income | 24,591 | 22,465 | |||||
Total Revenues | 99,771 | 97,383 | |||||
Expenses: | |||||||
Property Expenses | 29,411 | 28,486 | |||||
General and Administrative | 8,143 | 8,033 | |||||
Impairment of Real Estate | 2,756 | — | |||||
Depreciation and Other Amortization | 28,315 | 28,494 | |||||
Total Expenses | 68,625 | 65,013 | |||||
Other Income (Expense): | |||||||
Gain on Sale of Real Estate | 20,089 | 8,009 | |||||
Interest Expense | (12,791 | ) | (14,369 | ) | |||
Amortization of Debt Issuance Costs | (855 | ) | (778 | ) | |||
Loss from Retirement of Debt | (39 | ) | (1,653 | ) | |||
Total Other Income (Expense) | 6,404 | (8,791 | ) | ||||
Income from Operations Before Income Tax Provision | 37,550 | 23,579 | |||||
Income Tax Provision | (86 | ) | (88 | ) | |||
Net Income | 37,464 | 23,491 | |||||
Less: Net Income Attributable to the Noncontrolling Interest | (21 | ) | (27 | ) | |||
Net Income Available to Unitholders and Participating Securities | $ | 37,443 | $ | 23,464 | |||
Basic and Diluted Earnings Per Unit: | |||||||
Net Income Available to Unitholders | $ | 0.30 | $ | 0.19 | |||
Distributions Per Unit | $ | 0.2175 | $ | 0.2100 | |||
Weighted Average Units Outstanding - Basic | 123,729 | 120,877 | |||||
Weighted Average Units Outstanding - Diluted | 124,094 | 121,301 |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
Net Income | $ | 37,464 | $ | 23,491 | |||
Mark-to-Market Gain on Interest Rate Protection Agreements | 6,525 | 2,178 | |||||
Amortization of Interest Rate Protection Agreements | 24 | 96 | |||||
Comprehensive Income | $ | 44,013 | $ | 25,765 | |||
Comprehensive Income Attributable to Noncontrolling Interest | (21 | ) | (27 | ) | |||
Comprehensive Income Attributable to Unitholders | $ | 43,992 | $ | 25,738 |
General Partner Units | Limited Partner Units | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total | |||||||||||||||
Balance as of December 31, 2017 | $ | 1,401,583 | $ | 82,251 | $ | 1,382 | $ | 779 | $ | 1,485,995 | |||||||||
Net Income | 36,271 | 1,172 | — | 21 | 37,464 | ||||||||||||||
Other Comprehensive Income | — | — | 6,549 | — | 6,549 | ||||||||||||||
Stock Based Compensation Activity | (4,385 | ) | — | — | — | (4,385 | ) | ||||||||||||
Unit Distributions | (26,332 | ) | (775 | ) | — | — | (27,107 | ) | |||||||||||
Conversion of Limited Partner Units to General Partner Units | 5,009 | (5,009 | ) | — | — | — | |||||||||||||
Retirement of Limited Partner Units | — | (934 | ) | — | — | (934 | ) | ||||||||||||
Contributions from Noncontrolling Interest | — | — | — | 116 | 116 | ||||||||||||||
Distributions to Noncontrolling Interest | — | — | — | (21 | ) | (21 | ) | ||||||||||||
Balance as of March 31, 2018 | $ | 1,412,146 | $ | 76,705 | $ | 7,931 | $ | 895 | $ | 1,497,677 |
FIRST INDUSTRIAL, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in thousands) | |||||||
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 37,464 | $ | 23,491 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Depreciation | 22,953 | 23,200 | |||||
Amortization of Debt Issuance Costs | 855 | 778 | |||||
Other Amortization, including Stock Based Compensation | 6,626 | 8,112 | |||||
Impairment of Real Estate | 2,756 | — | |||||
Provision for Bad Debt | 88 | 75 | |||||
Gain on Sale of Real Estate | (20,089 | ) | (8,009 | ) | |||
Loss from Retirement of Debt | 39 | 1,653 | |||||
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | (6,801 | ) | (4,137 | ) | |||
Increase in Deferred Rent Receivable, Net | (713 | ) | (1,494 | ) | |||
Decrease in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | (6,249 | ) | (3,571 | ) | |||
Net Cash Provided by Operating Activities | 36,929 | 40,098 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisitions of Real Estate | (49,865 | ) | (15,074 | ) | |||
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | (63,994 | ) | (34,910 | ) | |||
Net Proceeds from Sales of Investments in Real Estate | 41,691 | 19,916 | |||||
Other Investing Activity | (3,053 | ) | (1,700 | ) | |||
Net Cash Used in Investing Activities | (75,221 | ) | (31,768 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Financing and Equity Issuance Costs | (2,676 | ) | (13 | ) | |||
Repurchase and Retirement of Restricted Units | (6,020 | ) | (2,401 | ) | |||
Unit Distributions Paid | (26,565 | ) | (23,017 | ) | |||
Contributions from Noncontrolling Interests | 116 | 7 | |||||
Distributions to Noncontrolling Interests | (21 | ) | (17 | ) | |||
Repayments on Mortgage Loans Payable | (160,163 | ) | (38,896 | ) | |||
Payments of Prepayment Penalties Associated with Retirement of Debt | — | (1,453 | ) | ||||
Proceeds from Senior Unsecured Notes | 300,000 | — | |||||
Proceeds from Unsecured Credit Facility | 162,000 | 85,000 | |||||
Repayments on Unsecured Credit Facility | (206,500 | ) | (22,500 | ) | |||
Net Cash Provided by (Used in) Financing Activities | 60,171 | (3,290 | ) | ||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 21,879 | 5,040 | |||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Year | 46,482 | 21,461 | |||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | 68,361 | $ | 26,501 | |||
FIRST INDUSTRIAL, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Unaudited; in thousands) | |||||||
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | |||||||
Interest Expense Capitalized in Connection with Development Activity | $ | 1,602 | $ | 1,027 | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | |||||||
General and Limited Partner Unit Distributions Payable | $ | 27,558 | $ | 25,977 | |||
Exchange of Limited Partner Units for General Partner Units: | |||||||
Limited Partner Units | $ | (5,009 | ) | $ | — | ||
General Partner Units | 5,009 | — | |||||
Total | $ | — | $ | — | |||
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | $ | 11,724 | $ | — | |||
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | $ | 32,006 | $ | 22,186 | |||
Write-off of Fully Depreciated Assets | $ | (13,663 | ) | $ | (7,023 | ) |
2018 | 2017 | ||||
Cash and Cash Equivalents | 19,782 | 18,998 | |||
Restricted Cash | 48,579 | 7,503 | |||
Total Cash, Cash Equivalents and Restricted Cash | 68,361 | 26,501 |
Purchase Price | |||
Land | $ | 24,146 | |
Building and Improvements | 34,474 | ||
Other Assets (leasing commissions) | 526 | ||
In-Place Leases | 2,483 | ||
Above Market Leases | 73 | ||
Below Market Leases | (737 | ) | |
Total Purchase Price (A) | $ | 60,965 | |
Assumed Mortgage Loan (Note 4) | (11,654 | ) | |
Total Net Assets Acquired | $ | 49,311 |
Fair Value Measurements on a Non-Recurring Basis Using: | |||||||||||||||||
Description | At March 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total Impairment for the Three Months Ended | ||||||||||||
Real estate assets | $ | 6,416 | — | — | $ | 6,416 | $ | 2,756 |
Quantitative Information about Level 3 Fair Value Measurements: | ||||||||||
Description | Fair Value | Valuation Technique | Unobservable Inputs | Range | ||||||
Impairment of one industrial property comprising approximately 0.1 million square feet of GLA and one land parcel | $ | 6,416 | Contracted Price | (A) | N/A |
Outstanding Balance at | Interest Rate at March 31, 2018 | Effective Interest Rate at Issuance | Maturity Date | ||||||||||
March 31, 2018 | December 31, 2017 | ||||||||||||
Mortgage Loans Payable, Gross | $ | 303,093 | $ | 451,602 | 4.03% – 8.26% | 3.82% – 8.26% | July 2019 – August 2028 | ||||||
Unamortized Debt Issuance Costs | (1,644 | ) | (1,806 | ) | |||||||||
Unamortized Premiums | 212 | 260 | |||||||||||
Mortgage Loans Payable, Net | $ | 301,661 | $ | 450,056 | |||||||||
Senior Unsecured Notes, Gross | |||||||||||||
2027 Notes | 6,070 | 6,070 | 7.15% | 7.11% | 5/15/2027 | ||||||||
2028 Notes | 31,901 | 31,901 | 7.60% | 8.13% | 7/15/2028 | ||||||||
2032 Notes | 10,600 | 10,600 | 7.75% | 7.87% | 4/15/2032 | ||||||||
2027 Private Placement Notes | 125,000 | 125,000 | 4.30% | 4.30% | 4/20/2027 | ||||||||
2028 Private Placement Notes | 150,000 | — | 3.86% | 3.86% | 2/15/2028 | ||||||||
2029 Private Placement Notes | 75,000 | 75,000 | 4.40% | 4.40% | 4/20/2029 | ||||||||
2030 Private Placement Notes | 150,000 | — | 3.96% | 3.96% | 2/15/2030 | ||||||||
Subtotal | $ | 548,571 | $ | 248,571 | |||||||||
Unamortized Debt Issuance Costs | (4,285 | ) | (1,814 | ) | |||||||||
Unamortized Discounts | (82 | ) | (84 | ) | |||||||||
Senior Unsecured Notes, Net | $ | 544,204 | $ | 246,673 | |||||||||
Unsecured Term Loans, Gross | |||||||||||||
2014 Unsecured Term Loan (A) | $ | 200,000 | $ | 200,000 | 3.39% | N/A | 1/29/2021 | ||||||
2015 Unsecured Term Loan (A) | 260,000 | 260,000 | 2.89% | N/A | 9/12/2022 | ||||||||
Subtotal | $ | 460,000 | $ | 460,000 | |||||||||
Unamortized Debt Issuance Costs | (3,984 | ) | (4,232 | ) | |||||||||
Unsecured Term Loans, Net | $ | 456,016 | $ | 455,768 | |||||||||
Unsecured Credit Facility (B) | $ | 100,000 | $ | 144,500 | 2.83% | N/A | 10/29/2021 |
Amount | |||
Remainder of 2018 | $ | 5,483 | |
2019 | 79,600 | ||
2020 | 59,046 | ||
2021 | 367,113 | ||
2022 | 341,552 | ||
Thereafter | 558,870 | ||
Total | $ | 1,411,664 |
March 31, 2018 | December 31, 2017 | ||||||||||||||
Carrying Amount (A) | Fair Value | Carrying Amount (A) | Fair Value | ||||||||||||
Mortgage Loans Payable, Net | $ | 303,305 | $ | 313,953 | $ | 451,862 | $ | 467,303 | |||||||
Senior Unsecured Notes, Net | 548,489 | 548,195 | 248,487 | 269,731 | |||||||||||
Unsecured Term Loans | 460,000 | 460,000 | 460,000 | 460,000 | |||||||||||
Unsecured Credit Facility | 100,000 | 100,000 | 144,500 | 144,500 | |||||||||||
Total | $ | 1,411,794 | $ | 1,422,148 | $ | 1,304,849 | $ | 1,341,534 |
March 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Assets: | |||||||
Net Investment in Real Estate | $ | 268,442 | $ | 270,708 | |||
Other Assets, Net | 24,966 | 23,530 | |||||
Total Assets | $ | 293,408 | $ | 294,238 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Liabilities: | |||||||
Mortgage Loans Payable, Net | $ | 20,833 | $ | 61,256 | |||
Other Liabilities, Net | 8,434 | 9,283 | |||||
Partners’ Capital | 264,141 | 223,699 | |||||
Total Liabilities and Partners’ Capital | $ | 293,408 | $ | 294,238 |
2018 | 2017 | ||||||
Balance as of December 31 | $ | 48,077 | $ | 43,184 | |||
Net Income | 1,172 | 782 | |||||
Other Comprehensive Income | 183 | 76 | |||||
Common Stock Dividends and Unit Distributions | (775 | ) | (848 | ) | |||
Conversion of Limited Partner Units to Common Stock (A) | (5,009 | ) | — | ||||
Retirement of Limited Partner Units (B) | (934 | ) | — | ||||
Reallocation - Additional Paid-in-Capital | 292 | (38 | ) | ||||
Balance as of March 31 | $ | 43,006 | $ | 43,156 |
2018 | 2017 | ||||||
Balance as of December 31 | $ | 779 | $ | 956 | |||
Net Income | 21 | 27 | |||||
Contributions | 116 | 7 | |||||
Distributions | (21 | ) | (17 | ) | |||
Balance as of March 31 | $ | 895 | $ | 973 |
Interest Rate Protection Agreements | Accumulated Other Comprehensive Income of the Operating Partnership | Comprehensive Income Attributable to Noncontrolling Interest of the Company | Accumulated Other Comprehensive Income of the Company | ||||||||||||
Balance as of December 31, 2017 | $ | 1,382 | $ | 1,382 | $ | (44 | ) | 1,338 | |||||||
Other Comprehensive Income Before Reclassifications | 6,062 | 6,062 | (183 | ) | 5,879 | ||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income | 487 | 487 | — | 487 | |||||||||||
Net Current Period Other Comprehensive Income | 6,549 | 6,549 | (183 | ) | 6,366 | ||||||||||
Balance as of March 31, 2018 | $ | 7,931 | $ | 7,931 | $ | (227 | ) | $ | 7,704 |
Amounts Reclassified from Accumulated Other Comprehensive Income | ||||||||||
Details about Accumulated Other Comprehensive Loss Components | Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | Affected Line Items in the Consolidated Statements of Operations | |||||||
Interest Rate Protection Agreements: | ||||||||||
Amortization of Previously Settled Interest Rate Protection Agreements | $ | 24 | $ | 96 | Interest Expense | |||||
Settlement Payments to our Counterparties | 463 | 1,413 | Interest Expense | |||||||
Total | $ | 487 | $ | 1,509 |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
Numerator: | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 36,292 | $ | 22,709 | |||
Net Income Allocable to Participating Securities | (97 | ) | (67 | ) | |||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ | 36,195 | $ | 22,642 | |||
Denominator (In Thousands): | |||||||
Weighted Average Shares - Basic | 119,846 | 116,837 | |||||
Effect of Dilutive Securities: | |||||||
LTIP Unit Awards (As Defined in Note 9) | 365 | 424 | |||||
Weighted Average Shares - Diluted | 120,211 | 117,261 | |||||
Basic and Diluted EPS: | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders | $ | 0.30 | $ | 0.19 |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||
Numerator: | |||||||
Net Income Available to Unitholders and Participating Securities | $ | 37,443 | $ | 23,464 | |||
Net Income Allocable to Participating Securities | (97 | ) | (66 | ) | |||
Net Income Available to Unitholders | $ | 37,346 | $ | 23,398 | |||
Denominator (In Thousands): | |||||||
Weighted Average Units - Basic | 123,729 | 120,877 | |||||
Effect of Dilutive Securities that Result in the Issuance of General Partner Units: | |||||||
LTIP Unit Awards (As Defined in Note 9) | 365 | 424 | |||||
Weighted Average Units - Diluted | 124,094 | 121,301 | |||||
Basic and Diluted EPU: | |||||||
Net Income Available to Unitholders | $ | 0.30 | $ | 0.19 |
Fair Value Measurements: | ||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||
Derivatives designated as a hedging instrument: | ||||||||||||||
Assets: | ||||||||||||||
2014 Swaps | $ | 799 | — | $ | 799 | — | ||||||||
2015 Swaps | $ | 8,112 | — | $ | 8,112 | — |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | changes in national, international, regional and local economic conditions generally and real estate markets specifically; |
• | changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; |
• | our ability to qualify and maintain our status as a real estate investment trust; |
• | the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; |
• | the availability and attractiveness of terms of additional debt repurchases; |
• | changes in our credit agency ratings; |
• | our ability to comply with applicable financial covenants; |
• | our competitive environment; |
• | changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; |
• | difficulties in identifying and consummating acquisitions and dispositions; |
• | our ability to manage the integration of properties we acquire; |
• | potential liability relating to environmental matters; |
• | defaults on or non-renewal of leases by our tenants; |
• | decreased rental rates or increased vacancy rates; |
• | higher-than-expected real estate construction costs and delays in development or lease-up schedules; |
• | changes in general accounting principles, policies and guidelines applicable to real estate investment trusts; and |
• | other risks and uncertainties described in this report, in Item 1A, "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2017 as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the Securities and Exchange Commission (the “SEC”). |
• | We acquired five industrial properties comprised of approximately 0.4 million square feet of GLA and one land parcel for an aggregate purchase price of approximately $61.0 million, excluding costs incurred in conjunction with the acquisition. |
• | We sold eight industrial properties comprised of approximately 0.5 million square feet of GLA and one land parcel for total gross sales proceeds of approximately $42.4 million. |
• | We issued ten-year, $150.0 million private placement notes at a rate of 3.86% and twelve-year, $150.0 million private placement notes at a rate of 3.96%. |
• | We paid off $157.8 million in mortgage loans payable. |
• | We declared a first quarter cash dividend of $0.2175 per common share or Unit per quarter, an increase of 3.6% from the 2017 quarterly rate. |
Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||
($ in 000’s) | ||||||||||||||
REVENUES | ||||||||||||||
Same Store Properties | $ | 93,879 | $ | 89,505 | $ | 4,374 | 4.9 | % | ||||||
Acquired Properties | 2,623 | — | 2,623 | — | ||||||||||
Sold Properties | 952 | 6,813 | (5,861 | ) | (86.0 | )% | ||||||||
(Re)Developments | 1,866 | 704 | 1,162 | 165.1 | % | |||||||||
Other | 451 | 361 | 90 | 24.9 | % | |||||||||
Total Revenues | $ | 99,771 | $ | 97,383 | $ | 2,388 | 2.5 | % |
Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||
($ in 000’s) | ||||||||||||||
PROPERTY EXPENSES | ||||||||||||||
Same Store Properties | $ | 25,951 | $ | 23,805 | $ | 2,146 | 9.0 | % | ||||||
Acquired Properties | 697 | — | 697 | — | ||||||||||
Sold Properties | 314 | 2,273 | (1,959 | ) | (86.2 | )% | ||||||||
(Re)Developments | 692 | 184 | 508 | 276.1 | % | |||||||||
Other | 1,757 | 2,224 | (467 | ) | (21.0 | )% | ||||||||
Total Property Expenses | $ | 29,411 | $ | 28,486 | $ | 925 | 3.2 | % |
Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||
($ in 000’s) | ||||||||||||||
DEPRECIATION AND OTHER AMORTIZATION | ||||||||||||||
Same Store Properties | $ | 25,876 | $ | 26,273 | $ | (397 | ) | (1.5 | )% | |||||
Acquired Properties | 1,371 | — | 1,371 | — | ||||||||||
Sold Properties | 250 | 1,812 | (1,562 | ) | (86.2 | )% | ||||||||
(Re) Developments | 545 | 148 | 397 | 268.2 | % | |||||||||
Corporate Furniture, Fixtures and Equipment and Other | 273 | 261 | 12 | 4.6 | % | |||||||||
Total Depreciation and Other Amortization | $ | 28,315 | $ | 28,494 | $ | (179 | ) | (0.6 | )% |
Three Months Ended | Number of Leases Commenced | Square Feet Commenced (in 000’s) | Net Rent Per Square Foot (A) | Straight Line Basis Rent Growth (B) | Weighted Average Lease Term (C) | Lease Costs Per Square Foot (D) | Weighted Average Tenant Retention (E) | |||||||||||||||
New Leases | 28 | 327 | $ | 6.76 | 25.6 | % | 5.9 | $ | 5.25 | N/A | ||||||||||||
Renewal Leases | 61 | 2,579 | $ | 4.61 | 16.6 | % | 3.3 | $ | 0.98 | 77.0 | % | |||||||||||
Development / Acquisition Leases | 4 | 305 | $ | 5.25 | N/A | 5.3 | N/A | N/A | ||||||||||||||
Total / Weighted Average | 93 | 3,211 | $ | 4.89 | 18.0 | % | 3.8 | $ | 1.46 | 77.0 | % |
(A) | Net rent is the average base rent calculated in accordance with GAAP, over the term of the lease. |
(B) | Straight Line basis basis rent growth is a ratio of the change in net rent (including straight line rent adjustments) on a new or renewal lease compared to the net rent (including straight line rent adjustments) of the comparable lease. New leases where there were no prior comparable leases are excluded. |
(C) | The lease term is expressed in years. Assumes no exercise of lease renewal options, if any. |
(D) | Lease costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions paid and costs capitalized for leasing transactions. Lease costs per square foot represent the total turnover costs expected to be incurred on the leases signed during the period and do not reflect actual expenditures for the period. |
(E) | Represents the weighted average square feet of tenants renewing their respective leases. |
Three Months Ended | Number of Leases With Rent Concessions | Square Feet (in 000’s) | Rent Concessions ($) | ||||||
New Leases | 17 | 226 | $ | 230 | |||||
Renewal Leases | 4 | 177 | $ | 168 | |||||
Development / Acquisition Leases | 4 | 305 | $ | 411 | |||||
Total | 25 | 708 | $ | 809 |
2018 | 2017 | |||||||
(In millions) | ||||||||
Net cash provided by operating activities | $ | 37.0 | $ | 40.1 | ||||
Net cash used in investing activities | (75.2 | ) | (31.8 | ) | ||||
Net cash provided by (used in) financing activities | 60.1 | (3.3 | ) |
2018 | 2017 | |||||||
(In millions) | ||||||||
Net cash provided by operating activities | $ | 36.9 | $ | 40.1 | ||||
Net cash used in investing activities | (75.2 | ) | (31.8 | ) | ||||
Net cash provided by (used in) financing activities | 60.2 | (3.3 | ) |
• | Increases in accounts receivable and other prepaid assets as well as decreases in accounts payable and accrued expenses due to timing of cash receipts and cash payments. |
• | Increase in NOI from same store properties due to an increase in occupancy and rental rates of $2.2 million, an increase in NOI from acquired properties of $1.9 million and an increase in NOI generated from recently developed properties of $0.7 million offset by decreases in NOI due to building disposals of $3.9 million. |
• | Increase of $34.8 million due to an increase in real estate acquisitions in 2018; and |
• | Increase of $29.1 million primarily due to more development expenditures in 2018. |
• | Decrease of $21.8 million due to higher proceeds received from the disposition of real estate in 2018. |
• | The issuance of Unsecured Private Placement notes in 2018 aggregating to $300.0 million. |
• | Increase in repayments of Mortgage Loans Payable of $121.3 million; and |
• | Increase in net repayments of Unsecured Credit Facility of $107.0 million. |
2018 | 2017 | ||||||
(In thousands) | |||||||
Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 36,292 | $ | 22,709 | |||
Adjustments: | |||||||
Depreciation and Other Amortization of Real Estate | 28,132 | 28,325 | |||||
Impairment of Depreciable Real Estate | 2,285 | — | |||||
Gain on Sale of Depreciable Real Estate | (20,073 | ) | (8,009 | ) | |||
Noncontrolling Interest Share of Adjustments | (310 | ) | (681 | ) | |||
Funds from Operations Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities | $ | 46,326 | $ | 42,344 |
2018 | 2017 | ||||||
(In thousands) | |||||||
Same Store Revenues | $ | 93,879 | $ | 89,505 | |||
Same Store Property Expenses | (25,951 | ) | (23,805 | ) | |||
Same Store Net Operating Income Before Same Store Adjustments | $ | 67,928 | $ | 65,700 | |||
Same Store Adjustments: | |||||||
Straight-line Rent | (306 | ) | (1,639 | ) | |||
Above / Below Market Rent Amortization | (204 | ) | (283 | ) | |||
Lease Termination Fees | (17 | ) | (278 | ) | |||
Same Store Net Operating Income | $ | 67,401 | $ | 63,500 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
• | compromise the confidential information of our employees, tenants and vendors; |
• | disrupt the proper functioning of our networks and systems, and therefore our operations and/or those of certain of our tenants; |
• | result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space; |
• | result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; |
• | result in misstated financial reports, violations of loan covenants and/or missed reporting deadlines; |
• | result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; |
• | require significant management attention and resources to remedy any damages that result; |
• | subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or |
• | damage our reputation among our tenants, investors and associates. |
• | joint venturers may share certain approval rights over major decisions, which might (i) significantly delay or make impossible actions and decisions we believe are necessary or advisable with respect to properties owned through a joint venture, and/or (ii) adversely affect our ability to develop, finance, lease or sell properties owned through a joint venture at the most advantageous time for us, if at all; |
• | joint venturers might become bankrupt or otherwise fail to fund their share of any required capital contributions; |
• | joint venturers might have economic or other business interests or goals that are competitive or inconsistent with our business interests or goals that would affect our ability to develop, finance, lease, operate, manage or sell any properties owned by the applicable joint venture; |
• | joint venturers may have the power to act contrary to our instructions, requests, policies or objectives, including our current policy with respect to maintaining the Company's qualification as a REIT; |
• | joint venture agreements often restrict the transfer of a member’s or joint venturer’s interest or may otherwise restrict our ability to sell our interest when we would like to or on advantageous terms; |
• | disputes between us and our joint venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and directors from focusing their time and effort on our business and subject the properties owned by the applicable joint venture to additional risk; and |
• | we may in certain circumstances be liable for the actions of our joint venturers. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
FIRST INDUSTRIAL REALTY TRUST, INC. | ||
By: | /S/ SCOTT A. MUSIL | |
Scott A. Musil Chief Financial Officer (Principal Financial Officer) | ||
By: | /S/ SARA E. NIEMIEC | |
Sara E. Niemiec Chief Accounting Officer (Principal Accounting Officer) |
FIRST INDUSTRIAL, L.P. | ||
By: | FIRST INDUSTRIAL REALTY TRUST, INC. | |
as general partner | ||
By: | /S/ SCOTT A. MUSIL | |
Scott A. Musil Chief Financial Officer (Principal Financial Officer) | ||
By: | /S/ SARA E. NIEMIEC | |
Sara E. Niemiec Chief Accounting Officer (Principal Accounting Officer) |
Exhibits | Description | |
101.1* | The following financial statements from First Industrial Realty Trust, Inc.’s and First Industrial L.P.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (unaudited), (iv) Consolidated Statement of Changes in Stockholders’ Equity / Consolidated Statement of Changes in Partners' Capital (unaudited), (v) Consolidated Statements of Cash Flows (unaudited) and (vi) Notes to Consolidated Financial Statements (unaudited) |
* | Filed herewith. |
** | Furnished herewith. |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial Realty Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: April 26, 2018 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial Realty Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: April 26, 2018 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: April 26, 2018 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
First Industrial Realty Trust, Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of First Industrial, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Date: April 26, 2018 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) | ||
First Industrial Realty Trust, Inc. |
Date: April 26, 2018 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) |
Date: April 26, 2018 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) |
Date: April 26, 2018 | /S/ PETER E. BACCILE | |
Peter E. Baccile | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
First Industrial Realty Trust, Inc. | ||
Date: April 26, 2018 | /S/ SCOTT A. MUSIL | |
Scott A. Musil | ||
Chief Financial Officer (Principal Financial Officer) | ||
First Industrial Realty Trust, Inc. |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 26, 2018 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FR | |
Entity Registrant Name | FIRST INDUSTRIAL REALTY TRUST INC | |
Entity Central Index Key | 0000921825 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 120,560,079 | |
First Industrial, L.P. | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FRFI | |
Entity Registrant Name | FIRST INDUSTRIAL LP | |
Entity Central Index Key | 0001033128 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Net Investment in Real Estate | $ 2,755,571 | $ 2,705,826 |
Real Estate and Other Assets Held for Sale, Accumulated Depreciation and Amortization | 9,384 | 0 |
Mortgage Loans Payable, Net | $ 301,661 | $ 450,056 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 225,000,000 | 225,000,000 |
Common Stock, shares issued | 120,557,079 | 119,883,180 |
Common Stock, shares outstanding | 120,557,079 | 119,883,180 |
First Industrial, L.P. | ||
Net Investment in Real Estate | $ 2,755,571 | $ 2,705,826 |
Real Estate and Other Assets Held for Sale, Accumulated Depreciation and Amortization | 9,384 | 0 |
Mortgage Loans Payable, Net | $ 301,661 | $ 450,056 |
General Partner Units, units outstanding | 120,557,079 | 119,883,180 |
Limited Partner Units, units outstanding | 3,564,107 | 4,008,221 |
Other Real Estate Partnerships | ||
Net Investment in Real Estate | $ 268,442 | $ 270,708 |
Mortgage Loans Payable, Net | $ 20,833 | $ 61,256 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Net Income | $ 37,464 | $ 23,491 |
Mark-to-Market Gain on Interest Rate Protection Agreements | 6,525 | 2,178 |
Amortization of Interest Rate Protection Agreements | 24 | 96 |
Comprehensive Income | 44,013 | 25,765 |
Comprehensive Income Attributable to Noncontrolling Interest | (1,378) | (858) |
Comprehensive Income Attributable to Common Stockholders / Unitholders | 42,635 | 24,907 |
First Industrial, L.P. | ||
Net Income | 37,464 | 23,491 |
Mark-to-Market Gain on Interest Rate Protection Agreements | 6,525 | 2,178 |
Amortization of Interest Rate Protection Agreements | 24 | 96 |
Comprehensive Income | 44,013 | 25,765 |
Comprehensive Income Attributable to Noncontrolling Interest | (21) | (27) |
Comprehensive Income Attributable to Common Stockholders / Unitholders | $ 43,992 | $ 25,738 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY/ PARTNER'S CAPITAL - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in- Capital |
Distributions in Excess of Accumulated Earnings |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest |
First Industrial, L.P. |
First Industrial, L.P.
General Partner Units
|
First Industrial, L.P.
Limited Partner Units
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First Industrial, L.P.
Accumulated Other Comprehensive Loss
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First Industrial, L.P.
Noncontrolling Interest
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Beginning Balance at Dec. 31, 2017 | $ 1,475,877 | $ 1,199 | $ 1,967,110 | $ (541,847) | $ 1,338 | $ 48,077 | |||||
Beginning Balance at Dec. 31, 2017 | $ 1,485,995 | $ 1,401,583 | $ 82,251 | $ 1,382 | $ 779 | ||||||
Increase (Decrease) in Stockholders' Equity / Partners' Capital [Roll Forward] | |||||||||||
Net Income | 37,464 | 36,292 | 1,172 | 37,464 | 36,271 | 1,172 | 21 | ||||
Other Comprehensive Income | 6,549 | 6,366 | 183 | 6,549 | 6,549 | ||||||
Stock Based Compensation Activity | (4,385) | 3 | (1,106) | (3,282) | |||||||
Stock Based Compensation Activity | (4,385) | (4,385) | |||||||||
Common Stock Dividends and Unit Distributions | (27,107) | (26,332) | (775) | ||||||||
Unit Distributions | (27,107) | (26,332) | (775) | ||||||||
Conversion of Limited Partner Units to Common Stock / General Partner Units | 0 | 4 | 5,005 | (5,009) | 0 | 5,009 | (5,009) | ||||
Retirement of Limited Partner Units | (934) | (934) | (934) | (934) | |||||||
Reallocation - Additional Paid-in-Capital | 0 | (292) | 292 | ||||||||
Contributions from Noncontrolling Interest | 116 | 116 | |||||||||
Distributions to Noncontrolling Interest | (21) | (21) | |||||||||
Ending Balance at Mar. 31, 2018 | $ 1,487,464 | $ 1,206 | $ 1,970,717 | $ (535,169) | $ 7,704 | $ 43,006 | |||||
Ending Balance at Mar. 31, 2018 | $ 1,497,677 | $ 1,412,146 | $ 76,705 | $ 7,931 | $ 895 |
Organization |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization First Industrial Realty Trust, Inc. (the "Company") is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). Unless stated otherwise or the context otherwise requires, the terms "we," "our" and "us" refer to the Company and its subsidiaries, including its operating partnership, First Industrial, L.P. (the "Operating Partnership"), and its consolidated subsidiaries. We began operations on July 1, 1994. The Company's operations are conducted primarily through the Operating Partnership, of which the Company is the sole general partner (the "General Partner"), with an approximate 97.1% ownership interest ("General Partner Units") at March 31, 2018. The Operating Partnership also conducts operations through eight other limited partnerships (the "Other Real Estate Partnerships"), numerous limited liability companies ("LLCs") and certain taxable REIT subsidiaries ("TRSs"), the operating data of which, together with that of the Operating Partnership, is consolidated with that of the Company as presented herein. The Operating Partnership holds at least a 99% limited partnership interest in each of the Other Real Estate Partnerships. The general partners of the Other Real Estate Partnerships are separate corporations, wholly-owned by the Company, each with at least a .01% general partnership interest in the Other Real Estate Partnerships. The Company does not have any significant assets or liabilities other than its investment in the Operating Partnership and its 100% ownership interest in the general partners of the Other Real Estate Partnerships. Noncontrolling interest in the Operating Partnership of approximately 2.9% at March 31, 2018 represents the aggregate partnership interest held by the limited partners thereof ("Limited Partner Units" and together with the General Partner Units, the "Units"). Profits, losses and distributions of the Operating Partnership, the LLCs, the Other Real Estate Partnerships and the TRSs are allocated to the general partner and the limited partners, the members or the shareholders, as applicable, of such entities in accordance with the provisions contained within their respective organizational documents. As of March 31, 2018, we owned 485 industrial properties located in 21 states, containing an aggregate of approximately 60.1 million square feet of gross leasable area ("GLA"). Of the 485 properties owned on a consolidated basis, none of them are directly owned by the Company. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the accounting policies described in the consolidated financial statements and related notes included in our annual report on Form 10-K for the year ended December 31, 2017 ("2017 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2017 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2017 Form 10-K, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The following notes to these interim consolidated financial statements highlight significant changes to the notes included in the December 31, 2017 audited consolidated financial statements included in our 2017 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission. Use of Estimates In order to conform with GAAP, in preparation of our consolidated financial statements we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of March 31, 2018 and December 31, 2017, and the reported amounts of revenues and expenses for the three months ended March 31, 2018 and 2017. Actual results could differ from those estimates. In our opinion, the accompanying unaudited interim consolidated financial statements reflect all adjustments necessary for a fair statement of our financial position as of March 31, 2018 and December 31, 2017, the results of our operations and comprehensive income for each of the three months ended March 31, 2018 and 2017, and our cash flows for each of the three months ended March 31, 2018 and 2017. All adjustments are of a normal recurring nature. Recent Accounting Pronouncements Recent Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board ("the FASB") issued Accounting Standards Updates ("ASU") No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual periods beginning after December 15, 2017. We adopted the new standard effective January 1, 2018. The adoption of the standard did not impact our financial position or results of operations. In August 2016 and November 2016, the FASB issued new ASUs impacting the statement of cash flows. ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” intends to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted both standards on January 1, 2018. The adoption of these standards modified our presentation of certain activities within the Consolidated Statements of Cash Flows. Restricted cash is comprised of gross proceeds from the sales of certain industrial properties that are held by intermediary agents to be used for tax-deferred, like-kind exchange transactions under Section 1031 of the Code. For the three month ended March 31, 2018 and 2017, $48,579 and $7,503 of restricted cash was included in "Cash, Cash Equivalents and Restricted Cash" in our Consolidated Satements of Cash Flows. Additionally, as a result of the adoption of the standards we reclassified $1,453 of prepayment penalties in connection with the payoff of certain mortgage loans from operating activities to financing activities for the three months ended March 31, 2017. The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within our Consolidated Balance Sheets to amounts reported within our Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017:
Recent Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting and sets out the principles for the recognition, measurement, presentation and disclosure of leases. ASU 2016-02 will require lessees, at lease commencement to record a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and record a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term. We are a lessee on a limited number of ground and office leases and expect to record a right-of-use asset and lease liability for these leases upon adoption of this standard. We are the lessor on a significant number of leases, however, we believe that ASU 2016-02 will have minimal impact to our financial condition or results of operations as such leases will be accounted for in a similar method to existing GAAP standards with the underlying leased asset being reported and recognized as a real estate asset and rental income being recognized on a straight line basis over the lease term. The most significant changes ASU 2016-02 will have to lessor accounting will be the requirement that lessors expense certain initial direct costs that are not incremental in negotiating a lease as incurred. Under existing GAAP standards, certain of these costs are capitalizable. ASU 2016-02 requires the use of a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest period presented in the consolidated financial statements, with certain practical expedients available. If practical expedients are elected, we would not be required to reassess (1) whether an expired or existing contract meets the definition of a lease; (2) the lease classification for expired or existing leases; and (3) whether costs previously capitalized as initial direct costs would continue to be amortized. We continue to monitor FASB activity with respect to possible amendments to ASU 2016-02, particularly the FASB's recent vote to provide an optional practical expedient to lessors that would remove the requirement for lessors to separate lease and non-lease components when the timing and pattern of transfer of the non-lease components and the lease component are the same and, when the stand-alone lease component would be classified as an operating lease if account for separately. Should such amendment be finalized, we expect to elect the practical expedient. We will adopt ASU 2016-02 on January 1, 2019 and anticipate electing the practical expedients. We will continue to refine our evaluation and finalize our implementation plan throughout 2018. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeting Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 is intended to better align financial reporting for hedging activities with the economic objectives of those activities. As a result of the transition guidance, cumulative ineffectiveness that has been previously recognized on cash flow and net investment hedges that are still outstanding and designated as of the date of adoption will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income. ASU 2017-12 is effective for annual periods beginning after December 15, 2018. We continue to assess all the potential impacts of ASU 2017-12, however, we do not expect the adoption to have an impact on our financial condition or results of operations. |
Investment in Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Real Estate | Investment in Real Estate Acquisitions During the three months ended March 31, 2018, we acquired five industrial properties comprised of approximately 0.4 million square feet of GLA and one land parcel. We considered these properties asset acquisitions and therefore capitalized acquisition costs to the basis of the acquired assets. The following table summarizes the amounts recognized for each major class of asset and liability for the industrial properties and land parcels acquired during the three months ended March 31, 2018:
_______________ (A) Excludes closing costs incurred in conjunction with the acquisition of the industrial properties and the land parcel. The revenue and net income associated with the acquisition of the industrial properties, since their respective acquisition dates, are not significant for the three months ended March 31, 2018. Real Estate Held for Sale As of March 31, 2018, we had 19 industrial properties comprised of approximately 0.5 million square feet of GLA held for sale. Sales During the three months ended March 31, 2018, we sold eight industrial properties comprised of approximately 0.5 million square feet of GLA and one land parcel. Gross proceeds from the sales of these industrial properties were $42,390. The gain on sale of real estate was $20,089. Impairment Charges The impairment charges of $2,756 recorded during the three months ended March 31, 2018 were due to marketing one industrial property and one land parcel for sale and our assessment of the likelihood and timing of a potential sale transaction. The following table presents information about our real estate assets that were measured at fair value on a non-recurring basis and for which impairment charges were recorded during the three months ended March 31, 2018. The table also indicates the fair value hierarchy of the valuation techniques we used to determine such fair value.
The following table presents quantitative information about the significant unobservable inputs we used to determine fair value of non-recurring items at March 31, 2018.
_______________ (A) The fair value for both the industrial property and the land parcel was based upon the value included in a third party purchase contract, which was subject to our corroboration for reasonableness. |
Indebtedness |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness The following table discloses certain information regarding our indebtedness:
_______________ (A) During the three months ended March 31, 2018, pursuant to our agreements for the 2014 Unsecured Term Loan and our 2015 Unsecured Term Loan, we elected to have the interest spread calculated based on our investment grade rating resulting in a 10 basis point reduction in the credit spread compared to the prior rate. The interest rate at March 31, 2018 also reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10. (B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized debt issuance costs of $4,495 and $4,781 as of March 31, 2018 and December 31, 2017, respectively, which are included in prepaid expenses and other assets on the consolidated balance sheets. Mortgage Loans Payable, Net During the three months ended March 31, 2018, we assumed a mortgage loan in the amount of $11,654 in conjunction with the acquisition of three industrial properties, totaling approximately 0.2 million square feet of GLA. The mortgage loan bears interest at a fixed rate of 4.17%, principal payments are amortized over 30 years and the loan matures in August 2028. During the three months ended March 31, 2018, we paid off mortgage loans in the amount of $157,782. In connection with the mortgage loans paid off during the three months ended March 31, 2018, we recognized $39 as loss from retirement of debt representing the write-off of unamortized debt issuance costs offset by the write off of an unamortized premium. As of March 31, 2018, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $452,685. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of March 31, 2018. Senior Unsecured Notes, Net During the three months ended March 31, 2018, the Operating Partnership issued $150,000 of 3.86% Series C Guaranteed Senior Notes due February 15, 2028 (the “2028 Private Placement Notes”) and $150,000 of 3.96% Series D Guaranteed Senior Notes due February 15, 2030 (the “2030 Private Placement Notes”) (together with the 2027 Private Placement Notes and the 2029 Private Placement Notes (each as described in Note 4), collectively, the "Private Placement Notes") in a private placement pursuant to a Note and Guaranty Agreement dated December 12, 2017. The 2028 Private Placement Notes and the 2030 Private Placement Notes are unsecured obligations of the Operating Partnership that are fully and unconditionally guaranteed by the Company and require semi-annual interest payments. Indebtedness The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and debt issuance costs, for the next five years as of March 31, and thereafter:
Our unsecured credit facility (the "Unsecured Credit Facility"), the Unsecured Term Loans (as defined in Note 10), the Private Placement Notes and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and the Unsecured Term Loans an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe that the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans, the Private Placement Notes and indentures governing our senior unsecured notes as of March 31, 2018. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs. Fair Value At March 31, 2018 and December 31, 2017, the fair value of our indebtedness was as follows:
_______________ (A) The carrying amounts include unamortized premiums and discounts and exclude unamortized debt issuance costs. The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured notes were determined by using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured notes from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and the Unsecured Term Loans was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured notes, the Unsecured Term Loans and the Unsecured Credit Facility was primarily based upon Level 3 inputs. |
Variable Interest Entities |
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities The Other Real Estate Partnerships are variable interest entities ("VIEs") of the Operating Partnership and the Operating Partnership is the primary beneficiary, thus causing the Other Real Estate Partnerships to be consolidated by the Operating Partnership. In addition, the Operating Partnership is a VIE of the Company and the Company is the primary beneficiary. The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets, net of intercompany amounts:
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Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership | Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership Noncontrolling Interest of the Company The following table summarizes the changes in noncontrolling interest for the Company for the three months ended March 31, 2018 and 2017:
_______________ (A) For the three months ended March 31, 2018 and 2017, 410,781 and 0 Limited Partner Units, respectively, were converted into an equivalent number of shares of common stock of the Company, resulting in a reclassification of $5,009 and $0, respectively, of noncontrolling interest to the Company’s stockholders’ equity. (B) During the three months ended March 31, 2018, 33,333 Limited Partner Units were forfeited by a unitholder and were retired by the Operating Partnership. Noncontrolling Interest of the Operating Partnership The following table summarizes the changes in noncontrolling interest for the Operating Partnership for the three months ended March 31, 2018 and 2017:
Dividends/Distributions During the three months ended March 31, 2018, we declared $27,107 common stock dividends and Unit distributions. |
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated other comprehensive income by component for the Company and the Operating Partnership for the three months ended March 31, 2018:
The following table summarizes the reclassifications out of accumulated other comprehensive income for both the Company and the Operating Partnership for the three months ended March 31, 2018 and 2017:
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in other comprehensive income and is subsequently reclassified to earnings through interest expense over the life of the derivative or over the life of the debt. In the next 12 months, we expect to amortize approximately $95 into net income by increasing interest expense for interest rate protection agreements we settled in previous periods. Additionally, recurring settlement amounts on the 2014 Swaps and 2015 Swaps (as defined in Note 10) will also be reclassified to net income. See Note 10 for more information about our derivatives. |
Earnings Per Share / Unit (EPS / EPU) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share / Unit (EPS / EPU) | Earnings Per Share and Earnings Per Unit ("EPS"/"EPU") The computation of basic and diluted EPS of the Company is presented below:
The computation of basic and diluted EPU of the Operating Partnership is presented below:
Participating securities include 410,132 and 403,628 of unvested restricted stock or restricted Unit awards outstanding at March 31, 2018 and 2017, respectively, which participate in non-forfeitable distributions. Under the two class method, participating security holders are allocated income, in proportion to total weighted average shares or Units outstanding, based upon the greater of net income or common stock dividends or Unit distributions declared. |
Benefit Plans |
3 Months Ended |
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Mar. 31, 2018 | |
Share-based Compensation [Abstract] | |
Benefit Plans | Benefit Plans Restricted Stock or Restricted Unit Awards For the three months ended March 31, 2018, the Company awarded 208,890 shares of restricted stock awards to certain employees, which had an aggregate fair value of $5,981 on the date such awards were approved by the Compensation Committee of the Board of Directors. These restricted stock awards were granted based upon the achievement of certain corporate performance goals and generally vest over a period of three years. The Operating Partnership issued restricted Unit awards to the Company in the same amount for both restricted stock awards. Compensation expense is charged to earnings over the vesting periods for the restricted stock or restricted Unit awards expected to vest except if the recipient is not required to provide future service in exchange for vesting of such restricted stock or restricted Unit awards. If vesting of a recipient's restricted stock or restricted Unit awards is not contingent upon future service, the expense is recognized immediately at the date of grant. During the three months ended March 31, 2017, we recognized $1,590 of compensation expense related to restricted stock or restricted Unit awards granted to our former Chief Executive Officer for which future service was not required. LTIP Unit Awards For the three months ended March 31, 2018, the Company granted to certain employees 179,288 Long-Term Incentive Program ("LTIP") performance units ("LTIP Unit Awards"), which had a fair value of $2,381 on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The LTIP Unit Awards vest based upon the relative total shareholder return ("TSR") of the Company's common stock compared to the weighted average TSRs of the MSCI US REIT Index and the NAREIT Industrial Index over a performance period of three years. Compensation expense is charged to earnings on a straight-line basis over the performance period. The Operating Partnership issues General Partner Units to the Company in the same amounts for vested LTIP Unit Awards. Outstanding Restricted Stock or Restricted Unit Awards and LTIP Unit Awards We recognized $1,689 and $3,101 for the three months ended March 31, 2018 and 2017, respectively, in amortization related to restricted stock or restricted Unit awards and LTIP Unit Awards. Restricted stock or restricted Unit award and LTIP Unit Award amortization capitalized in connection with development activities was not significant. At March 31, 2018, we had $13,873 in unrecognized compensation related to unvested restricted stock or restricted Unit awards and LTIP Unit Awards. The weighted average period that the unrecognized compensation is expected to be recognized is 1.14 years. Severance Expense During the three months ended March 31, 2018, we incurred $1,298 of severance costs related to a reduction in personnel as a result of changes in our real estate portfolio. The severance costs are included in general and administrative expense. |
Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Our objectives in using derivatives are to add stability to interest expense and to manage our cash flow volatility and exposure to interest rate movements. To accomplish this objective, we primarily use interest rate protection agreements as part of our interest rate risk management strategy. Interest rate protection agreements designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our agreements with our derivative counterparties contain provisions whereby a default on any of our indebtedness, could cause us to be declared in default on our derivative obligations subject to certain thresholds. As of March 31, 2018, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements. If we had breached these agreements, we could have been required to settle our obligations under the agreements at their termination value. Fair Value Hedges In connection with the originations of the Unsecured Term Loans (see Note 4), we entered into interest rate protection agreements to manage our exposure to changes in the one month LIBOR rate. The four interest rate protection agreements, which fix the variable rate of the 2014 Unsecured Term Loan, have an aggregate notional value of $200,000, mature on January 29, 2021 and fix the LIBOR rate at a weighted average rate of 2.29% (the "2014 Swaps"). The six interest rate protection agreements, which fix the variable rate of the 2015 Unsecured Term Loan, have an aggregate notional value of $260,000, mature on September 12, 2022 and fix the LIBOR rate at a weighted average rate of 1.79% (the "2015 Swaps"). We designated the 2014 Swaps and 2015 Swaps as cash flow hedges. Our agreements with our derivative counterparties contain provisions where if we default on any of our indebtedness, then we could also be declared in default on our derivative obligations subject to certain thresholds. As of March 31, 2018, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements. If we had breached these agreements, we could have been required to settle our obligations under the agreements at their termination value. The following table sets forth our financial assets related to the 2015 Swaps and the 2014 Swaps which are included in prepaid expenses and other assets on the consolidated balance sheets and which are accounted for at fair value on a recurring basis as of March 31, 2018:
There was no ineffectiveness recorded on the 2014 Swaps and 2015 Swaps during the three months ended March 31, 2018. See Note 7 for more information regarding our derivatives. The estimated fair value of the 2014 Swaps and the 2015 Swaps was determined using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments are incorporated in the fair value to account for potential non-performance risk, including our own non-performance risk and the respective counterparty’s non-performance risk. We determined that the significant inputs used to value the 2014 Swaps and the 2015 Swaps fell within Level 2 of the fair value hierarchy. |
Related Party Transactions Related Party Transactions |
3 Months Ended |
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Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions At March 31, 2018 and December 31, 2017, the Operating Partnership had receivable balances of $10,223 and $10,129, respectively, from a direct wholly-owned subsidiary of the Company. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, we are involved in legal actions arising from the ownership of our industrial properties. In our opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on our consolidated financial position, operations or liquidity. In conjunction with the development of industrial properties, we have entered into agreements with general contractors for the construction of industrial properties. At March 31, 2018, we had 11 industrial properties totaling approximately 4.2 million square feet of GLA under construction. The estimated total investment as of March 31, 2018 is approximately $291,000. Of this amount, approximately $128,500 remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated total investment. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events From April 1, 2018 to April 26, 2018, we acquired one land parcel for a purchase price of approximately $3,270, excluding costs and credits incurred in conjunction with the acquisition. On April 3, 2018, we entered into a joint venture arrangement with a third party (the "Joint Venture") for the purpose of acquiring, developing, leasing and operating approximately 532 net developable acres of land located in the Phoenix metropolitan area. Through a wholly-owned subsidiary of the Operating Partnership, we own a 49% interest in the Joint Venture. On April 3, 2018, the Joint Venture acquired the land for a purchase price of $49,000. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the accounting policies described in the consolidated financial statements and related notes included in our annual report on Form 10-K for the year ended December 31, 2017 ("2017 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2017 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2017 Form 10-K, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The following notes to these interim consolidated financial statements highlight significant changes to the notes included in the December 31, 2017 audited consolidated financial statements included in our 2017 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission. |
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Use of Estimates | Use of Estimates In order to conform with GAAP, in preparation of our consolidated financial statements we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of March 31, 2018 and December 31, 2017, and the reported amounts of revenues and expenses for the three months ended March 31, 2018 and 2017. Actual results could differ from those estimates. In our opinion, the accompanying unaudited interim consolidated financial statements reflect all adjustments necessary for a fair statement of our financial position as of March 31, 2018 and December 31, 2017, the results of our operations and comprehensive income for each of the three months ended March 31, 2018 and 2017, and our cash flows for each of the three months ended March 31, 2018 and 2017. All adjustments are of a normal recurring nature. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board ("the FASB") issued Accounting Standards Updates ("ASU") No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual periods beginning after December 15, 2017. We adopted the new standard effective January 1, 2018. The adoption of the standard did not impact our financial position or results of operations. In August 2016 and November 2016, the FASB issued new ASUs impacting the statement of cash flows. ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” intends to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted both standards on January 1, 2018. The adoption of these standards modified our presentation of certain activities within the Consolidated Statements of Cash Flows. Restricted cash is comprised of gross proceeds from the sales of certain industrial properties that are held by intermediary agents to be used for tax-deferred, like-kind exchange transactions under Section 1031 of the Code. For the three month ended March 31, 2018 and 2017, $48,579 and $7,503 of restricted cash was included in "Cash, Cash Equivalents and Restricted Cash" in our Consolidated Satements of Cash Flows. Additionally, as a result of the adoption of the standards we reclassified $1,453 of prepayment penalties in connection with the payoff of certain mortgage loans from operating activities to financing activities for the three months ended March 31, 2017. The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within our Consolidated Balance Sheets to amounts reported within our Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017:
Recent Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting and sets out the principles for the recognition, measurement, presentation and disclosure of leases. ASU 2016-02 will require lessees, at lease commencement to record a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and record a right-of-use asset, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term. We are a lessee on a limited number of ground and office leases and expect to record a right-of-use asset and lease liability for these leases upon adoption of this standard. We are the lessor on a significant number of leases, however, we believe that ASU 2016-02 will have minimal impact to our financial condition or results of operations as such leases will be accounted for in a similar method to existing GAAP standards with the underlying leased asset being reported and recognized as a real estate asset and rental income being recognized on a straight line basis over the lease term. The most significant changes ASU 2016-02 will have to lessor accounting will be the requirement that lessors expense certain initial direct costs that are not incremental in negotiating a lease as incurred. Under existing GAAP standards, certain of these costs are capitalizable. ASU 2016-02 requires the use of a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest period presented in the consolidated financial statements, with certain practical expedients available. If practical expedients are elected, we would not be required to reassess (1) whether an expired or existing contract meets the definition of a lease; (2) the lease classification for expired or existing leases; and (3) whether costs previously capitalized as initial direct costs would continue to be amortized. We continue to monitor FASB activity with respect to possible amendments to ASU 2016-02, particularly the FASB's recent vote to provide an optional practical expedient to lessors that would remove the requirement for lessors to separate lease and non-lease components when the timing and pattern of transfer of the non-lease components and the lease component are the same and, when the stand-alone lease component would be classified as an operating lease if account for separately. Should such amendment be finalized, we expect to elect the practical expedient. We will adopt ASU 2016-02 on January 1, 2019 and anticipate electing the practical expedients. We will continue to refine our evaluation and finalize our implementation plan throughout 2018. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeting Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 is intended to better align financial reporting for hedging activities with the economic objectives of those activities. As a result of the transition guidance, cumulative ineffectiveness that has been previously recognized on cash flow and net investment hedges that are still outstanding and designated as of the date of adoption will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income. ASU 2017-12 is effective for annual periods beginning after December 15, 2018. We continue to assess all the potential impacts of ASU 2017-12, however, we do not expect the adoption to have an impact on our financial condition or results of operations. |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) |
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Restrictions on Cash and Cash Equivalents | The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within our Consolidated Balance Sheets to amounts reported within our Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017:
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Investment in Real Estate Investment in Real Estate (Tables) |
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Summary of Acquisition Purchase Price Allocation |
_______________ (A) Excludes closing costs incurred in conjunction with the acquisition of the industrial properties and the land parcel. The revenue and net income associated with the acquisition of the industrial properties, since their respective acquisition dates, are not significant for the three months ended March 31, 2018. |
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Fair Value Measurements, Nonrecurring Basis | The following table presents information about our real estate assets that were measured at fair value on a non-recurring basis and for which impairment charges were recorded during the three months ended March 31, 2018. The table also indicates the fair value hierarchy of the valuation techniques we used to determine such fair value.
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Quantitative Information about Level 3 Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs we used to determine fair value of non-recurring items at March 31, 2018.
_______________ (A) The fair value for both the industrial property and the land parcel was based upon the value included in a third party purchase contract, which was subject to our corroboration for reasonableness. |
Indebtedness (Tables) |
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Summary of Indebtedness | The following table discloses certain information regarding our indebtedness:
_______________ (A) During the three months ended March 31, 2018, pursuant to our agreements for the 2014 Unsecured Term Loan and our 2015 Unsecured Term Loan, we elected to have the interest spread calculated based on our investment grade rating resulting in a 10 basis point reduction in the credit spread compared to the prior rate. The interest rate at March 31, 2018 also reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10. (B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized debt issuance costs of $4,495 and $4,781 as of March 31, 2018 and December 31, 2017, respectively, which are included in prepaid expenses and other assets on the consolidated balance sheets. |
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Schedule of Maturities | The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and debt issuance costs, for the next five years as of March 31, and thereafter:
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Summary of Indebtedness at Estimated Fair Value | At March 31, 2018 and December 31, 2017, the fair value of our indebtedness was as follows:
_______________ (A) The carrying amounts include unamortized premiums and discounts and exclude unamortized debt issuance costs. |
Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Partnerships' Summarized Balance Sheet | The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets, net of intercompany amounts:
|
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest Rollforward | The following table summarizes the changes in noncontrolling interest for the Company for the three months ended March 31, 2018 and 2017:
_______________ (A) For the three months ended March 31, 2018 and 2017, 410,781 and 0 Limited Partner Units, respectively, were converted into an equivalent number of shares of common stock of the Company, resulting in a reclassification of $5,009 and $0, respectively, of noncontrolling interest to the Company’s stockholders’ equity. |
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First Industrial, L.P. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest Rollforward | The following table summarizes the changes in noncontrolling interest for the Operating Partnership for the three months ended March 31, 2018 and 2017:
|
Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive income by component for the Company and the Operating Partnership for the three months ended March 31, 2018:
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Reclassification Out of Accumulated Other Comprehensive Loss | The following table summarizes the reclassifications out of accumulated other comprehensive income for both the Company and the Operating Partnership for the three months ended March 31, 2018 and 2017:
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Earnings Per Share / Unit (EPS / EPU) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share / Unit | The computation of basic and diluted EPS of the Company is presented below:
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First Industrial, L.P. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share / Unit | The computation of basic and diluted EPU of the Operating Partnership is presented below:
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Derivatives (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements on Recurring Basis | The following table sets forth our financial assets related to the 2015 Swaps and the 2014 Swaps which are included in prepaid expenses and other assets on the consolidated balance sheets and which are accounted for at fair value on a recurring basis as of March 31, 2018:
|
Organization - Additional Information (Details) ft² in Millions |
3 Months Ended |
---|---|
Mar. 31, 2018
ft²
Property
State
| |
Organization [Line Items] | |
Company's ownership interest | 97.10% |
Limited partners' ownership interest in the Operating Partnership | 2.90% |
Number of industrial properties owned | Property | 485 |
Number of states in which industrial properties are located | State | 21 |
Gross leasable area (GLA) of industrial properties owned | ft² | 60.1 |
Other Real Estate Partnerships | |
Organization [Line Items] | |
Company's ownership interest | 100.00% |
Number of Other Real Estate Partnerships | 8 |
Operating Partnership's minimum ownership interest in the Other Real Estate Partnerships | 99.00% |
General partners' minimum ownership interest in the Other Real Estate Partnerships | 0.01% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Accounting Policies [Abstract] | |||
Restricted Cash | $ 48,579 | $ 7,503 | $ 25,336 |
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 0 | $ 1,453 |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 19,782 | $ 21,146 | $ 18,998 | |
Restricted Cash | 48,579 | 25,336 | 7,503 | |
Total Cash, Cash Equivalents and Restricted Cash | $ 68,361 | $ 46,482 | $ 26,501 | $ 21,461 |
Investment in Real Estate Investment in Real Estate - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Real Estate [Line Items] | ||
Land | $ 879,051 | $ 864,813 |
Buildings and Improvements | 2,507,087 | $ 2,521,457 |
Acquisition Activity | ||
Real Estate [Line Items] | ||
Land | 24,146 | |
Buildings and Improvements | 34,474 | |
Other Assets | 526 | |
Purchase price of industrial properties acquired | 60,965 | |
Assumed Mortgage Loan (Note 4) | (11,654) | |
Purchase Price, Net | 49,311 | |
Acquisition Activity | In-Place Leases | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible assets, fair value | (2,483) | |
Acquisition Activity | Above Market Leases | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible assets, fair value | (73) | |
Acquisition Activity | Below Market Leases | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible liabilities, fair value | $ (737) |
Investment in Real Estate Quantitative Information About Level 3 Fair Value Measurements (Details) $ in Thousands, ft² in Millions |
Mar. 31, 2018
USD ($)
ft²
Property
|
---|---|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Number of industrial properties | 485 |
Gross leasable area (GLA) of industrial properties | ft² | 60.1 |
Unobservable Inputs (Level 3) | Contracted Price | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value of Industrial Property | $ | $ 6,416 |
Number of industrial properties | 1 |
Number of land parcels | 1 |
Gross leasable area (GLA) of industrial properties | ft² | 0.1 |
Indebtedness - Additional Information (Details) $ in Thousands, ft² in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2018
USD ($)
ft²
Property
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
||||
Debt Instrument [Line Items] | ||||||
Number of industrial properties | Property | 485 | |||||
Gross leasable area (GLA) of industrial properties | ft² | 60.1 | |||||
Loss from Retirement of Debt | $ (39) | $ (1,653) | ||||
Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Costs | 4,495 | $ 4,781 | ||||
Mortgage Loans Payable | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Costs | 1,644 | 1,806 | ||||
Extinguishment of debt, amount | 157,782 | |||||
Loss from Retirement of Debt | 39 | |||||
Net carrying value of industrial properties collateralized by mortgage loans | $ 452,685 | |||||
2014 Unsecured Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument Interest Rate Change Due to Investment Grade Rating | 10 basis point | |||||
Interest Rate | [1] | 3.39% | ||||
2015 Unsecured Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument Interest Rate Change Due to Investment Grade Rating | 10 basis point | |||||
Interest Rate | [1] | 2.89% | ||||
Assumed Mortgage | Mortgage Loans Payable | ||||||
Debt Instrument [Line Items] | ||||||
Assumed Mortgage Loan | $ 11,654 | |||||
Number of industrial properties | Property | 3 | |||||
Gross leasable area (GLA) of industrial properties | ft² | 0.2 | |||||
Interest Rate | 4.17% | |||||
2028 Private Placement Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.86% | |||||
Senior Unsecured Notes, Gross | $ 150,000 | 0 | ||||
Effective Interest Rate | 3.86% | |||||
2030 Private Placement Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.96% | |||||
Senior Unsecured Notes, Gross | $ 150,000 | $ 0 | ||||
Effective Interest Rate | 3.96% | |||||
|
Indebtedness - Schedule of Maturities (Details) $ in Thousands |
Mar. 31, 2018
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2018 | $ 5,483 |
2019 | 79,600 |
2020 | 59,046 |
2021 | 367,113 |
2022 | 341,552 |
Thereafter | 558,870 |
Total | $ 1,411,664 |
Indebtedness - Summary of Indebtedness at Estimated Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Carrying Amount | [1] | $ 1,411,794 | $ 1,304,849 | ||
Fair Value | 1,422,148 | 1,341,534 | |||
Mortgage Loans Payable | |||||
Debt Instrument [Line Items] | |||||
Carrying Amount | [1] | 303,305 | 451,862 | ||
Fair Value | 313,953 | 467,303 | |||
Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Carrying Amount | [1] | 548,489 | 248,487 | ||
Fair Value | 548,195 | 269,731 | |||
Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Carrying Amount | [1] | 460,000 | 460,000 | ||
Fair Value | 460,000 | 460,000 | |||
Unsecured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Carrying Amount | [1] | 100,000 | 144,500 | ||
Fair Value | $ 100,000 | $ 144,500 | |||
|
Variable Interest Entities - Summarized Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Net Investment in Real Estate | $ 2,755,571 | $ 2,705,826 |
Total Assets | 3,044,595 | 2,941,062 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 301,661 | 450,056 |
Total Liabilities and Equity/Partners' Capital | 3,044,595 | 2,941,062 |
Other Real Estate Partnerships | ||
Assets: | ||
Net Investment in Real Estate | 268,442 | 270,708 |
Other Assets, Net | 24,966 | 23,530 |
Total Assets | 293,408 | 294,238 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 20,833 | 61,256 |
Other Liabilities, Net | 8,434 | 9,283 |
Partners’ Capital | 264,141 | 223,699 |
Total Liabilities and Equity/Partners' Capital | $ 293,408 | $ 294,238 |
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units | $ 0 | $ 0 |
Limited Partners' Capital Account, Units Retired | 33,333 | |
Common Stock Dividends and Unit Distributions | $ 27,107 | |
Common Stock / Operating Partnership Units | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Shares | 410,781 | 0 |
Conversion of Limited Partner Units to Common Stock / General Partner Units | $ 5,009 | $ 0 |
Common Stock Dividends and Unit Distributions | 27,107 | |
First Industrial, L.P. | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units | $ 0 | $ 0 |
Stockholders' Equity of the Company and Partners' Capital of the Operating Partnership - Summary of Changes in Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Noncontrolling Interest [Line Items] | ||
Beginning Balance | $ 48,077 | |
Net Income | 1,172 | $ 782 |
Other Comprehensive Income | 6,549 | |
Common Stock Dividends and Unit Distributions | (27,107) | |
Conversion of Limited Partner Units to Common Stock / General Partner Units | 0 | 0 |
Retirement of Limited Partner Units | (934) | |
Reallocation - Additional Paid-in-Capital | 0 | |
Ending Balance | 43,006 | |
Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 48,077 | 43,184 |
Net Income | 1,172 | 782 |
Other Comprehensive Income | 183 | 76 |
Common Stock Dividends and Unit Distributions | (775) | (848) |
Conversion of Limited Partner Units to Common Stock / General Partner Units | (5,009) | 0 |
Retirement of Limited Partner Units | (934) | 0 |
Reallocation - Additional Paid-in-Capital | 292 | (38) |
Ending Balance | 43,006 | 43,156 |
First Industrial, L.P. | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 779 | |
Net Income | 21 | 27 |
Other Comprehensive Income | 6,549 | |
Contributions | 116 | |
Distributions | (21) | |
Conversion of Limited Partner Units to Common Stock / General Partner Units | 0 | 0 |
Retirement of Limited Partner Units | (934) | |
Ending Balance | 895 | |
First Industrial, L.P. | Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 779 | 956 |
Net Income | 21 | 27 |
Contributions | 116 | 7 |
Distributions | (21) | (17) |
Ending Balance | $ 895 | $ 973 |
Accumulated Other Comprehensive Loss (Changes in AOCI) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ 1,338 |
Other Comprehensive Income Before Reclassifications | 5,879 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 487 |
Net Current Period Other Comprehensive Income | 6,366 |
Balance | 7,704 |
Interest Rate Protection Agreements | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 1,382 |
Other Comprehensive Income Before Reclassifications | 6,062 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 487 |
Net Current Period Other Comprehensive Income | 6,549 |
Balance | 7,931 |
Comprehensive Income Attributable to Noncontrolling Interest of the Company | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (44) |
Other Comprehensive Income Before Reclassifications | (183) |
Amounts Reclassified from Accumulated Other Comprehensive Income | 0 |
Net Current Period Other Comprehensive Income | (183) |
Balance | (227) |
First Industrial, L.P. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 1,382 |
Balance | 7,931 |
First Industrial, L.P. | Interest Rate Protection Agreements | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 1,382 |
Other Comprehensive Income Before Reclassifications | 6,062 |
Amounts Reclassified from Accumulated Other Comprehensive Income | 487 |
Net Current Period Other Comprehensive Income | 6,549 |
Balance | $ 7,931 |
Accumulated Other Comprehensive Loss (Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest Expense - Amortization of IRPAs | $ 12,791 | $ 14,369 |
Total | 6,404 | (8,791) |
Interest Rate Swap | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Protection Agreements | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest Expense - Amortization of IRPAs | 24 | 96 |
Interest Expense - Settlement Payments | 463 | 1,413 |
Total | $ 487 | $ 1,509 |
Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Accumulated Other Comprehensive Loss [Abstract] | |
Amortization to be reclassified from OCI into income | $ 95 |
Earnings Per Share / Unit (EPS / EPU) - Computation of Basic and Diluted EPS / EPU (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Numerator: | ||
Net Income Available to Common Stockholders / Unitholders and Participating Securities | $ 36,292 | $ 22,709 |
Net Income Allocable to Participating Securities | (97) | (67) |
Net Income Available to Common Stockholders / Unitholders | $ 36,195 | $ 22,642 |
Denominator: | ||
Weighted Average Shares / Units - Basic | 119,846 | 116,837 |
LTIP Unit Awards (As Defined in Note 9) | 365 | 424 |
Weighted Average Shares / Units - Diluted | 120,211 | 117,261 |
Basic and Diluted Earnings Per Share / Unit: | ||
Net Income Available to Common Stockholders / Unitholders | $ 0.30 | $ 0.19 |
First Industrial, L.P. | ||
Numerator: | ||
Net Income Available to Common Stockholders / Unitholders and Participating Securities | $ 37,443 | $ 23,464 |
Net Income Allocable to Participating Securities | (97) | (66) |
Net Income Available to Common Stockholders / Unitholders | $ 37,346 | $ 23,398 |
Denominator: | ||
Weighted Average Shares / Units - Basic | 123,729 | 120,877 |
LTIP Unit Awards (As Defined in Note 9) | 365 | 424 |
Weighted Average Shares / Units - Diluted | 124,094 | 121,301 |
Basic and Diluted Earnings Per Share / Unit: | ||
Net Income Available to Common Stockholders / Unitholders | $ 0.30 | $ 0.19 |
Earnings Per Share / Unit (EPS / EPU) - Additional Information (Details) - shares |
Mar. 31, 2018 |
Mar. 31, 2017 |
---|---|---|
Earnings Per Share [Abstract] | ||
Unvested Restricted Stock / Unit Awards | 410,132 | 403,628 |
Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amortization related to restricted stock/Unit awards and LTIP Unit Awards | $ 1,689 | $ 3,101 |
Unrecognized compensation related to unvested restricted stock/Unit awards and LTIP Unit Awards | $ 13,873 | |
Weighted average period of unrecognized compensation expected to be recognized | 1 year 50 days | |
Severance Costs | $ 1,298 | |
Management | Restricted Stock/Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock/Unit awards and LTIP Unit Awards issued | 208,890 | |
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 5,981 | |
Vesting period of restricted stock/Unit awards issued | 3 years | |
Compensation expense recognized at date of grant | $ 1,590 | |
Management | LTIP Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock/Unit awards and LTIP Unit Awards issued | 179,288 | |
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 2,381 | |
Vesting period of restricted stock/Unit awards issued | 3 years |
Derivatives - Additional Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
2014 Swaps | |
Derivative [Line Items] | |
Debt instrument, LIBOR Rate | one month LIBOR |
Swaps, Number of Instruments Held | 4 |
Swaps, Notional Amount | $ 200,000 |
Swaps, Average Fixed Interest Rate | 2.29% |
2015 Swaps | |
Derivative [Line Items] | |
Debt instrument, LIBOR Rate | one month LIBOR |
Swaps, Number of Instruments Held | 6 |
Swaps, Notional Amount | $ 260,000 |
Swaps, Average Fixed Interest Rate | 1.79% |
Derivatives - Fair Value Measurements on Recurring Basis (Details) $ in Thousands |
Mar. 31, 2018
USD ($)
|
---|---|
2014 Swaps | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | $ 799 |
2014 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | 0 |
2014 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | 799 |
2014 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | 0 |
2015 Swaps | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | 8,112 |
2015 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | 0 |
2015 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | 8,112 |
2015 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Derivatives, Fair Value [Line Items] | |
Hedging Instrument, Asset, Fair Value | $ 0 |
Related Party Transactions Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Related Party Transactions [Abstract] | ||
Receivable balance due from a direct wholly-owned subsidiary | $ 10,223 | $ 10,129 |
Commitments and Contingencies - Additional Information (Details) $ in Thousands, ft² in Millions |
Mar. 31, 2018
USD ($)
ft²
Property
|
---|---|
Other Commitments [Line Items] | |
Number of industrial properties | Property | 485 |
Gross leasable area (GLA) of industrial properties | ft² | 60.1 |
Development Activity | |
Other Commitments [Line Items] | |
Number of industrial properties | Property | 11 |
Gross leasable area (GLA) of industrial properties | ft² | 4.2 |
Estimated total investment | $ | $ 291,000 |
Estimated total investment remaining to be funded | $ | $ 128,500 |
Subsequent Events - Additional Information (Details) - Acquisition Activity $ in Thousands |
1 Months Ended | 3 Months Ended |
---|---|---|
Apr. 26, 2018
USD ($)
Property
|
Mar. 31, 2018
USD ($)
Property
|
|
Subsequent Event [Line Items] | ||
Number of land parcels | Property | 1 | |
Purchase price of industrial properties acquired | $ | $ 60,965 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of land parcels | Property | 1 | |
Purchase price of industrial properties acquired | $ | $ 3,270 | |
Subsequent Event | Joint Venture | ||
Subsequent Event [Line Items] | ||
Purchase price of industrial properties acquired | $ | $ 49,000 | |
Number of acres | Property | 532 | |
Equity Method Investment, Ownership Percentage | 49.00% |
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