Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 27, 2017 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FR | |
Entity Registrant Name | FIRST INDUSTRIAL REALTY TRUST INC | |
Entity Central Index Key | 921,825 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 117,272,946 | |
First Industrial, L.P. | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FRFI | |
Entity Registrant Name | FIRST INDUSTRIAL LP | |
Entity Central Index Key | 1,033,128 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment in Real Estate: | ||
Land | $ 806,722 | $ 794,821 |
Buildings and Improvements | 2,526,629 | 2,523,015 |
Construction in Progress | 62,651 | 67,078 |
Less: Accumulated Depreciation | (806,925) | (796,492) |
Net Investment in Real Estate | 2,589,077 | 2,588,422 |
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $1,719 and $1,471 | 4,471 | 2,354 |
Cash and Cash Equivalents | 18,998 | 9,859 |
Restricted Cash | 7,503 | 11,602 |
Tenant Accounts Receivable, Net | 4,355 | 4,757 |
Deferred Rent Receivable, Net | 68,768 | 67,382 |
Deferred Leasing Intangibles, Net | 27,909 | 29,499 |
Prepaid Expenses and Other Assets, Net | 83,977 | 79,388 |
Total Assets | 2,805,058 | 2,793,263 |
Indebtedness: | ||
Mortgage Loans Payable, Net | 457,442 | 495,956 |
Senior Unsecured Notes, Net | 205,051 | 204,998 |
Unsecured Term Loans, Net | 456,804 | 456,638 |
Unsecured Credit Facility | 252,000 | 189,500 |
Accounts Payable, Accrued Expenses and Other Liabilities | 66,440 | 84,412 |
Deferred Leasing Intangibles, Net | 10,057 | 10,400 |
Rents Received in Advance and Security Deposits | 45,757 | 43,300 |
Dividends and Distributions Payable | 25,977 | 23,434 |
Total Liabilities | 1,519,528 | 1,508,638 |
Commitments and Contingencies | 0 | 0 |
First Industrial Realty Trust Inc.’s Stockholders’ Equity/First Industrial, L.P.'s Partners' Capital: | ||
Common Stock ($0.01 par value, 150,000,000 shares authorized and 117,272,946 and 117,107,746 shares issued and outstanding) | 1,174 | 1,172 |
Additional Paid-in-Capital | 1,888,231 | 1,886,771 |
Distributions in Excess of Accumulated Earnings | (644,586) | (641,859) |
Accumulated Other Comprehensive Loss | (2,445) | (4,643) |
Total First Industrial Realty Trust, Inc.’s Stockholders’ Equity | 1,242,374 | 1,241,441 |
Noncontrolling Interest | 43,156 | 43,184 |
Total Equity | 1,285,530 | 1,284,625 |
Total Liabilities and Equity/Partners' Capital | 2,805,058 | 2,793,263 |
First Industrial, L.P. | ||
Investment in Real Estate: | ||
Land | 806,722 | 794,821 |
Buildings and Improvements | 2,526,629 | 2,523,015 |
Construction in Progress | 62,651 | 67,078 |
Less: Accumulated Depreciation | (806,925) | (796,492) |
Net Investment in Real Estate | 2,589,077 | 2,588,422 |
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $1,719 and $1,471 | 4,471 | 2,354 |
Cash and Cash Equivalents | 18,998 | 9,859 |
Restricted Cash | 7,503 | 11,602 |
Tenant Accounts Receivable, Net | 4,355 | 4,757 |
Deferred Rent Receivable, Net | 68,768 | 67,382 |
Deferred Leasing Intangibles, Net | 27,909 | 29,499 |
Prepaid Expenses and Other Assets, Net | 94,405 | 89,826 |
Total Assets | 2,815,486 | 2,803,701 |
Indebtedness: | ||
Mortgage Loans Payable, Net | 457,442 | 495,956 |
Senior Unsecured Notes, Net | 205,051 | 204,998 |
Unsecured Term Loans, Net | 456,804 | 456,638 |
Unsecured Credit Facility | 252,000 | 189,500 |
Accounts Payable, Accrued Expenses and Other Liabilities | 66,440 | 84,412 |
Deferred Leasing Intangibles, Net | 10,057 | 10,400 |
Rents Received in Advance and Security Deposits | 45,757 | 43,300 |
Dividends and Distributions Payable | 25,977 | 23,434 |
Total Liabilities | 1,519,528 | 1,508,638 |
Commitments and Contingencies | 0 | 0 |
First Industrial Realty Trust Inc.’s Stockholders’ Equity/First Industrial, L.P.'s Partners' Capital: | ||
General Partner Units (117,272,946 and 117,107,746 units outstanding) | 1,218,425 | 1,219,755 |
Limited Partners Units (4,039,375 and 4,039,375 units outstanding) | 79,090 | 79,156 |
Accumulated Other Comprehensive Loss | (2,530) | (4,804) |
Total First Industrial L.P.'s Partners’ Capital | 1,294,985 | 1,294,107 |
Noncontrolling Interest | 973 | 956 |
Total Partners’ Capital | 1,295,958 | 1,295,063 |
Total Liabilities and Equity/Partners' Capital | $ 2,815,486 | $ 2,803,701 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Net Investment in Real Estate | $ 2,589,077 | $ 2,588,422 |
Real Estate and Other Assets Held for Sale, Accumulated Depreciation and Amortization | 1,719 | 1,471 |
Mortgage Loans Payable, Net | $ 457,442 | $ 495,956 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 150,000,000 | 150,000,000 |
Common Stock, shares issued | 117,272,946 | 117,107,746 |
Common Stock, shares outstanding | 117,272,946 | 117,107,746 |
First Industrial, L.P. | ||
Net Investment in Real Estate | $ 2,589,077 | $ 2,588,422 |
Real Estate and Other Assets Held for Sale, Accumulated Depreciation and Amortization | 1,719 | 1,471 |
Mortgage Loans Payable, Net | $ 457,442 | $ 495,956 |
General Partner Units, units outstanding | 117,272,946 | 117,107,746 |
Limited Partner Units, units outstanding | 4,039,375 | 4,039,375 |
Other Real Estate Partnerships | ||
Net Investment in Real Estate | $ 276,672 | $ 278,398 |
Mortgage Loans Payable, Net | $ 62,229 | $ 70,366 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Rental Income | $ 74,918 | $ 71,752 |
Tenant Recoveries and Other Income | 22,465 | 21,715 |
Total Revenues | 97,383 | 93,467 |
Expenses: | ||
Property Expenses | 28,486 | 28,367 |
General and Administrative | 8,033 | 7,674 |
Acquisition Costs | 0 | 64 |
Depreciation and Other Amortization | 28,494 | 31,128 |
Total Expenses | 65,013 | 67,233 |
Other Income (Expense): | ||
Gain on Sale of Real Estate | 8,009 | 7,251 |
Interest Expense | (14,369) | (16,259) |
Amortization of Deferred Financing Costs | (778) | (873) |
Loss from Retirement of Debt | (1,653) | 0 |
Total Other Income (Expense) | (8,791) | (9,881) |
Income from Operations Before Income Tax Provision | 23,579 | 16,353 |
Income Tax Provision | (88) | (58) |
Net Income | 23,491 | 16,295 |
Less: Net Income Attributable to the Noncontrolling Interest | (782) | (607) |
Net Income Available to Common Stockholders/Unitholders and Participating Securities | $ 22,709 | $ 15,688 |
Basic and Diluted EPS / EPU | ||
Net Income Available to Common Stockholders/Unitholders | $ 0.19 | $ 0.14 |
Dividends/Distributions Per Share/Unit | $ 0.21 | $ 0.19 |
Weighted Average Shares/Units Outstanding - Basic | 116,837 | 110,793 |
Weighted Average Shares/Units Outstanding - Diluted | 117,261 | 110,985 |
First Industrial, L.P. | ||
Revenues: | ||
Rental Income | $ 74,918 | $ 71,752 |
Tenant Recoveries and Other Income | 22,465 | 21,715 |
Total Revenues | 97,383 | 93,467 |
Expenses: | ||
Property Expenses | 28,486 | 28,367 |
General and Administrative | 8,033 | 7,674 |
Acquisition Costs | 0 | 64 |
Depreciation and Other Amortization | 28,494 | 31,128 |
Total Expenses | 65,013 | 67,233 |
Other Income (Expense): | ||
Gain on Sale of Real Estate | 8,009 | 7,251 |
Interest Expense | (14,369) | (16,259) |
Amortization of Deferred Financing Costs | (778) | (873) |
Loss from Retirement of Debt | (1,653) | 0 |
Total Other Income (Expense) | (8,791) | (9,881) |
Income from Operations Before Income Tax Provision | 23,579 | 16,353 |
Income Tax Provision | (88) | (58) |
Net Income | 23,491 | 16,295 |
Less: Net Income Attributable to the Noncontrolling Interest | (27) | (14) |
Net Income Available to Common Stockholders/Unitholders and Participating Securities | $ 23,464 | $ 16,281 |
Basic and Diluted EPS / EPU | ||
Net Income Available to Common Stockholders/Unitholders | $ 0.19 | $ 0.14 |
Dividends/Distributions Per Share/Unit | $ 0.21 | $ 0.1900 |
Weighted Average Shares/Units Outstanding - Basic | 120,877 | 115,096 |
Weighted Average Shares/Units Outstanding - Diluted | 121,301 | 115,288 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Income | $ 23,491 | $ 16,295 |
Mark-to-Market Gain (Loss) on Interest Rate Protection Agreements | 2,178 | (12,496) |
Amortization of Interest Rate Protection Agreements | 96 | 102 |
Comprehensive Income | 25,765 | 3,901 |
Comprehensive Income Attributable to Noncontrolling Interest | (858) | (145) |
Comprehensive Income Attributable to Common Stockholders / Unitholders | 24,907 | 3,756 |
First Industrial, L.P. | ||
Net Income | 23,491 | 16,295 |
Mark-to-Market Gain (Loss) on Interest Rate Protection Agreements | 2,178 | (12,496) |
Amortization of Interest Rate Protection Agreements | 96 | 102 |
Comprehensive Income | 25,765 | 3,901 |
Comprehensive Income Attributable to Noncontrolling Interest | (27) | (14) |
Comprehensive Income Attributable to Common Stockholders / Unitholders | $ 25,738 | $ 3,887 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY/ PARTNER'S CAPITAL - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in- Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | First Industrial, L.P. | First Industrial, L.P.General Partner Units | First Industrial, L.P.Limited Partner Units | First Industrial, L.P.Accumulated Other Comprehensive Loss | First Industrial, L.P.Noncontrolling Interest |
Beginning Balance at Dec. 31, 2016 | $ 1,284,625 | $ 1,172 | $ 1,886,771 | $ (641,859) | $ (4,643) | $ 43,184 | |||||
Beginning Balance at Dec. 31, 2016 | $ 1,295,063 | $ 1,219,755 | $ 79,156 | $ (4,804) | $ 956 | ||||||
Increase (Decrease) in Stockholders' Equity / Partners' Capital [Roll Forward] | |||||||||||
Stock Based Compensation Activity | 700 | 2 | 1,422 | (724) | |||||||
Stock Based Compensation Activity | 700 | 700 | |||||||||
Reallocation - Additional Paid-in-Capital | 0 | 38 | (38) | ||||||||
Common Stock Dividends and Unit Distributions | (25,560) | (24,712) | (848) | ||||||||
Unit Distributions | (25,560) | (24,712) | (848) | ||||||||
Contributions from Noncontrolling Interest | 7 | 7 | |||||||||
Distributions to Noncontrolling Interest | (17) | (17) | |||||||||
Net Income | 23,491 | 22,709 | 782 | 23,491 | 22,682 | 782 | 27 | ||||
Other Comprehensive Income | 2,274 | 2,198 | 76 | 2,274 | 2,274 | ||||||
Ending Balance at Mar. 31, 2017 | $ 1,285,530 | $ 1,174 | $ 1,888,231 | $ (644,586) | $ (2,445) | $ 43,156 | |||||
Ending Balance at Mar. 31, 2017 | $ 1,295,958 | $ 1,218,425 | $ 79,090 | $ (2,530) | $ 973 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 23,491 | $ 16,295 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation | 23,200 | 25,829 |
Amortization of Deferred Financing Costs | 778 | 873 |
Other Amortization, including Stock Based Compensation | 8,112 | 8,104 |
Provision for Bad Debt | 75 | 265 |
Gain on Sale of Real Estate | (8,009) | (7,251) |
Loss from Retirement of Debt | 1,653 | 0 |
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | (4,147) | (2,453) |
Increase in Deferred Rent Receivable, Net | (1,494) | (1,839) |
Decrease in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | (3,571) | (12,460) |
Payments of Prepayment Penalties and Discounts Associated with Retirement of Debt | (1,453) | (554) |
Net Cash Provided by Operating Activities | 38,635 | 26,809 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of Real Estate | (15,074) | (47,406) |
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | (34,910) | (35,905) |
Net Proceeds from Sales of Investments in Real Estate | 19,916 | 15,393 |
Decrease in Escrows | 2,399 | 19,477 |
Net Cash Used in Investing Activities | (27,669) | (48,441) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Financing Costs | (13) | (236) |
Repurchase and Retirement of Restricted Stock/Units | (2,401) | (5,230) |
Common Stock Dividends and Unit Distributions Paid | (23,017) | (14,705) |
Repayments on Mortgage Loans Payable | (38,896) | (60,879) |
Repayments of Senior Unsecured Notes | 0 | (159,125) |
Proceeds from Unsecured Credit Facility | 85,000 | 298,000 |
Repayments on Unsecured Credit Facility | (22,500) | (37,000) |
Net Cash (Used in) Provided by Financing Activities | (1,827) | 20,825 |
Net Increase (Decrease) in Cash and Cash Equivalents | 9,139 | (807) |
Cash and Cash Equivalents, Beginning of Year | 9,859 | 3,987 |
Cash and Cash Equivalents, End of Period | 18,998 | 3,180 |
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | ||
Interest Expense Capitalized in Connection with Development Activity | 1,027 | 449 |
Supplemental Schedule of Non-Cash Investing and Financing Activities: | ||
Dividends and Distributions Payable | 25,977 | |
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 0 |
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | 0 | 5,082 |
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | 22,186 | 16,151 |
Write-off of Fully Depreciated Assets | (7,023) | (14,457) |
Noncontrolling Interest | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | 782 | |
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | (98) |
Additional Paid-in- Capital | ||
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 98 |
Common Stock | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | ||
Dividends and Distributions Payable | 25,977 | 22,112 |
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 98 | |
First Industrial, L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | 23,491 | 16,295 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation | 23,200 | 25,829 |
Amortization of Deferred Financing Costs | 778 | 873 |
Other Amortization, including Stock Based Compensation | 8,112 | 8,104 |
Provision for Bad Debt | 75 | 265 |
Gain on Sale of Real Estate | (8,009) | (7,251) |
Loss from Retirement of Debt | 1,653 | 0 |
Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net | (4,137) | (2,423) |
Increase in Deferred Rent Receivable, Net | (1,494) | (1,839) |
Decrease in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits | (3,571) | (12,460) |
Payments of Prepayment Penalties and Discounts Associated with Retirement of Debt | (1,453) | (554) |
Net Cash Provided by Operating Activities | 38,645 | 26,839 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of Real Estate | (15,074) | (47,406) |
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs | (34,910) | (35,905) |
Net Proceeds from Sales of Investments in Real Estate | 19,916 | 15,393 |
Decrease in Escrows | 2,399 | 19,477 |
Net Cash Used in Investing Activities | (27,669) | (48,441) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Financing Costs | (13) | (236) |
Repurchase and Retirement of Restricted Stock/Units | (2,401) | (5,230) |
Common Stock Dividends and Unit Distributions Paid | (23,017) | (14,705) |
Contributions from Noncontrolling Interests | 7 | 3 |
Distributions to Noncontrolling Interests | (17) | (33) |
Repayments on Mortgage Loans Payable | (38,896) | (60,879) |
Repayments of Senior Unsecured Notes | 0 | (159,125) |
Proceeds from Unsecured Credit Facility | 85,000 | 298,000 |
Repayments on Unsecured Credit Facility | (22,500) | (37,000) |
Net Cash (Used in) Provided by Financing Activities | (1,837) | 20,795 |
Net Increase (Decrease) in Cash and Cash Equivalents | 9,139 | (807) |
Cash and Cash Equivalents, Beginning of Year | 9,859 | 3,987 |
Cash and Cash Equivalents, End of Period | 18,998 | 3,180 |
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS: | ||
Interest Expense Capitalized in Connection with Development Activity | 1,027 | 449 |
Supplemental Schedule of Non-Cash Investing and Financing Activities: | ||
Dividends and Distributions Payable | 25,977 | |
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 0 |
Assumption of Indebtedness and Other Liabilities in Connection with the Acquisition of Real Estate | 0 | 5,082 |
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate | 22,186 | 16,151 |
Write-off of Fully Depreciated Assets | (7,023) | (14,457) |
First Industrial, L.P. | Limited Partner Units | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | 782 | |
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | (98) |
First Industrial, L.P. | General Partner Units | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | 22,682 | |
Exchange of Limited Partnership Units for Common Stock/General Partnership Units: | ||
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 98 |
First Industrial, L.P. | Common Stock | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities: | ||
Dividends and Distributions Payable | $ 25,977 | $ 22,112 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
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. Unless stated otherwise or the context otherwise requires, the terms "we," "our" and "us" refer to the Company and its subsidiaries, including its operating partnership, First Industrial, L.P. (the "Operating Partnership"), and its consolidated subsidiaries. We began operations on July 1, 1994. The Company's operations are conducted primarily through the Operating Partnership, of which the Company is the sole general partner (the "General Partner"), with an approximate 96.7% ownership interest ("General Partner Units") at March 31, 2017. The Operating Partnership also conducts operations through eight other limited partnerships (the "Other Real Estate Partnerships"), numerous limited liability companies ("LLCs") and certain taxable REIT subsidiaries ("TRSs"), the operating data of which, together with that of the Operating Partnership, is consolidated with that of the Company as presented herein. The Operating Partnership holds at least a 99% limited partnership interest in each of the Other Real Estate Partnerships. The general partners of the Other Real Estate Partnerships are separate corporations, wholly-owned by the Company, each with at least a .01% general partnership interest in the Other Real Estate Partnerships. The Company does not have any significant assets or liabilities other than its investment in the Operating Partnership and its 100% ownership interest in the general partners of the Other Real Estate Partnerships. Noncontrolling interest in the Operating Partnership of approximately 3.3% at March 31, 2017 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, 2017, we owned 526 industrial properties located in 23 states, containing an aggregate of approximately 62.7 million square feet of gross leasable area ("GLA"). Of the 526 properties owned on a consolidated basis, none of them are directly owned by the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 ("2016 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2016 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2016 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, 2016 audited consolidated financial statements included in our 2016 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, 2017 and December 31, 2016, and the reported amounts of revenues and expenses for the three months ended March 31, 2017 and 2016. 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, 2017 and December 31, 2016, the results of our operations and comprehensive income for each of the three months ended March 31, 2017 and 2016, and our cash flows for each of the three months ended March 31, 2017 and 2016. All adjustments are of a normal recurring nature. Investment in Real Estate and Depreciation Effective January 1, 2017, we adopted Accounting Standards Update ("ASU") No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"). ASU 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. We applied ASU 2017-01 prospectively. We anticipate that our acquisitions of real estate in the future will generally not meet the definition of a business combination and, accordingly, transaction costs which have historically been expensed will be capitalized as part of the basis of the real estate assets acquired. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (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 for both parties to a contract. Under ASU 2016-02, we will be required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. We are a lessee on certain ground and operating leases as disclosed in Note 14 to the consolidated financial statements in our 2016 Form 10-K. Due to the length of the lease terms of some of these ground and operating leases, we expect to record a right-of-use asset and lease liability with respect to certain of our ground and operating leases upon adoption of this standard. ASU 2016-02 also requires that lessors expense certain initial direct costs that are not incremental in negotiating a lease as incurred. Under existing standards, certain of these initial direct 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. We are continuing the process of evaluating and quantifying the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. We will adopt ASU 2016-02 on January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue when 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. While lease contracts with customers, which constitute a vast majority of our revenues, are a specific scope exception, certain of our revenue streams may be impacted by the new guidance. Once the new guidance setting forth principles for the recognition, measurement, presentation and disclosure of leases (ASU 2016-02, as discussed above) goes into effect, the new revenue standard may apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (such as common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. ASU 2014-09 provides the option of using a full retrospective or a modified retrospective approach. We have not decided which method of adoption we will use. ASU 2014-09 is effective for annual periods beginning after December 15, 2017. We are currently in the process of evaluating the impact the adoption of ASU 2014-09 will have on our financial position or results of operations and we will adopt ASU 2014-09 on January 1, 2018. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors that influenced our estimate of expected credit losses and the reasons for those changes. ASU 2016-13 is effective for annual periods beginning after December 15, 2019. We are in the process of evaluating ASU 2016-13. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” ("ASU 2016-15"). ASU 2016-15 addresses eight specific cash flow issues and 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 2016-15 is effective for annual periods beginning after December 15, 2017 with retrospective application required. We expect ASU 2016-15 to impact the presentation of our consolidated statement of cash flows and we will adopt ASU 2016-15 on January 1, 2018. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). ASU 2016-18 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. ASU 2016-18 is effective for annual periods beginning after December 15, 2017. We expect ASU 2016-18 to impact the presentation of our consolidated statement of cash flows and we will adopt ASU 2016-18 on January 1, 2018. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate Acquisitions During the three months ended March 31, 2017, we acquired one land parcel. The purchase price of this acquisition totaled approximately $14,975 , excluding costs incurred in conjunction with the acquisition. Real Estate Held for Sale As of March 31, 2017, we had two industrial properties comprising approximately 0.1 million square feet of GLA held for sale. Sales During the three months ended March 31, 2017, we sold 12 industrial properties comprising approximately 0.3 million square feet of GLA. Gross proceeds from the sales of these industrial properties were approximately $20,500 . The gain on sale of real estate was approximately $8,009 . |
Indebtedness
Indebtedness | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness The following table discloses certain information regarding our indebtedness: Outstanding Balance at Interest Rate at March 31, 2017 Effective Interest Rate at Issuance Maturity Date March 31, 2017 December 31, 2016 Mortgage Loans Payable, Gross $ 459,539 $ 498,435 4.03% – 8.26% 3.82% – 8.26% June 2018 – September 2022 Unamortized Deferred Financing Costs (2,481 ) (2,905 ) Unamortized Premiums 384 426 Mortgage Loans Payable, Net $ 457,442 $ 495,956 Senior Unsecured Notes, Gross 2017 Notes 54,981 54,981 7.50% 7.52% 12/1/2017 2027 Notes 6,070 6,070 7.15% 7.11% 5/15/2027 2028 Notes 31,901 31,901 7.60% 8.13% 7/15/2028 2032 Notes 10,600 10,600 7.75% 7.87% 4/15/2032 2017 II Notes 101,871 101,871 5.95% 6.37% 5/15/2017 Subtotal $ 205,423 $ 205,423 Unamortized Deferred Financing Costs (277 ) (320 ) Unamortized Discounts (95 ) (105 ) Senior Unsecured Notes, Net $ 205,051 $ 204,998 Unsecured Term Loans, Gross 2014 Unsecured Term Loan (A) $ 200,000 $ 200,000 3.99% N/A 1/29/2021 2015 Unsecured Term Loan (A) 260,000 260,000 3.39% N/A 9/12/2022 Subtotal $ 460,000 $ 460,000 Unamortized Deferred Financing Costs (3,196 ) (3,362 ) Unsecured Term Loans, Net $ 456,804 $ 456,638 Unsecured Credit Facility (B) $ 252,000 $ 189,500 1.99% N/A 3/11/2019 (A) The interest rate at March 31, 2017 reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10. (B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized deferred financing costs of $2,544 and $2,876 as of March 31, 2017 and December 31, 2016, 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, 2017, we paid off mortgage loans in the amount of $36,108 . In connection with the mortgage loans paid off during the three months ended March 31, 2017, we recognized $1,653 as loss from retirement of debt representing prepayment penalties and the write-off of unamortized deferred financing costs. As of March 31, 2017, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $594,627 . We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of March 31, 2017. Indebtedness The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and deferred financing costs, for the next five years as of March 31, and thereafter: Amount Remainder of 2017 $ 164,789 2018 165,449 2019 331,329 2020 58,762 2021 266,818 Thereafter 389,815 Total $ 1,376,962 Our unsecured credit facility (the "Unsecured Credit Facility"), the Unsecured Term Loans (as defined in Note 10) and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and the Unsecured Term Loans, an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe that the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans and indentures governing our senior unsecured notes as of March 31, 2017. 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, 2017 and December 31, 2016, the fair value of our indebtedness was as follows: March 31, 2017 December 31, 2016 Carrying Amount (A) Fair Value Carrying Amount (A) Fair Value Mortgage Loans Payable, Net $ 459,923 $ 474,283 $ 498,861 $ 513,540 Senior Unsecured Notes, Net 205,328 221,162 205,318 222,469 Unsecured Term Loans 460,000 458,665 460,000 458,602 Unsecured Credit Facility 252,000 252,000 189,500 189,500 Total $ 1,377,251 $ 1,406,110 $ 1,353,679 $ 1,384,111 (A) The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing costs. The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured notes were determined by using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured notes from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and the Unsecured Term Loans was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured notes, the Unsecured Term Loans and the Unsecured Credit Facility was primarily based upon Level 3 inputs. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 December 31, 2016 ASSETS Assets: Net Investment in Real Estate $ 276,672 $ 278,398 Other Assets, Net 26,312 24,401 Total Assets $ 302,984 $ 302,799 LIABILITIES AND PARTNERS’ CAPITAL Liabilities: Mortgage Loans Payable, Net $ 62,229 $ 70,366 Other Liabilities, Net 9,138 9,138 Partners’ Capital 231,617 223,295 Total Liabilities and Partners’ Capital $ 302,984 $ 302,799 |
Stockholders_ Equity of the Com
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016: 2017 2016 Balance as of December 31 $ 43,184 $ 42,035 Net Income 782 607 Unit Distributions (848 ) (816 ) Other Comprehensive Income (Loss) (Including a Reallocation of $0 and $3) 76 (459 ) Conversion of Limited Partner Units to Common Stock (A) — (98 ) Reallocation - Additional Paid-in-Capital (38 ) (47 ) Balance as of March 31 $ 43,156 $ 41,222 (A) For the three months ended March 31, 2016, 9,823 Limited Partner Units were converted into an equivalent number of shares of common stock of the Company, resulting in a reclassification of $98 of noncontrolling interest to the Company’s stockholders’ equity. 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, 2017 and 2016: 2017 2016 Balance as of December 31 $ 956 $ 1,096 Net Income 27 14 Contributions 7 3 Distributions (17 ) (33 ) Balance as of March 31 $ 973 $ 1,080 Dividends/Distributions During the three months ended March 31, 2017, we declared $25,560 common stock dividends and Unit distributions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss by component for the Company and the Operating Partnership for the three months ended March 31, 2017: Interest Rate Protection Agreements Accumulated Other Comprehensive Loss of the Operating Partnership Comprehensive Loss Attributable to Noncontrolling Interest of the Company Accumulated Other Comprehensive Loss of the Company Balance as of December 31, 2016 $ (4,804 ) $ (4,804 ) $ 161 (4,643 ) Other Comprehensive Income Before Reclassifications 765 765 (76 ) 689 Amounts Reclassified from Accumulated Other Comprehensive Loss 1,509 1,509 — 1,509 Net Current Period Other Comprehensive Income 2,274 2,274 (76 ) 2,198 Balance as of March 31, 2017 $ (2,530 ) $ (2,530 ) $ 85 $ (2,445 ) The following table summarizes the reclassifications out of accumulated other comprehensive loss for both the Company and the Operating Partnership for the three months ended March 31, 2017 and 2016: Amounts Reclassified from Accumulated Other Comprehensive Loss Details about Accumulated Other Comprehensive Loss Components Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Affected Line Items in the Consolidated Statements of Operations Interest Rate Protection Agreements: Amortization of Interest Rate Protection Agreements (Previously Settled) 96 102 Interest Expense Settlement Payments to our Counterparties 1,413 1,836 Interest Expense Total $ 1,509 $ 1,938 The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in other comprehensive income (loss) and is subsequently reclassified to earnings through interest expense over the life of the derivative or over the life of the debt. In the next 12 months, we expect to amortize approximately $132 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
Earnings Per Share / Unit (EPS / EPU) | 3 Months Ended |
Mar. 31, 2017 | |
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: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Numerator: Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities $ 22,709 $ 15,688 Net Income Allocable to Participating Securities (67 ) (63 ) Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders $ 22,642 $ 15,625 Denominator (In Thousands): Weighted Average Shares - Basic 116,837 110,793 Effect of Dilutive Securities: LTIP Unit Awards (As Defined in Note 9) 424 192 Weighted Average Shares - Diluted 117,261 110,985 Basic and Diluted EPS: Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders $ 0.19 $ 0.14 The computation of basic and diluted EPU of the Operating Partnership is presented below: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Numerator: Net Income Available to Unitholders and Participating Securities $ 23,464 $ 16,281 Net Income Allocable to Participating Securities (66 ) (63 ) Net Income Available to Unitholders $ 23,398 $ 16,218 Denominator (In Thousands): Weighted Average Units - Basic 120,877 115,096 Effect of Dilutive Securities that Result in the Issuance of General Partner Units: LTIP Unit Awards (As Defined in Note 9) 424 192 Weighted Average Units - Diluted 121,301 115,288 Basic and Diluted EPU: Net Income Available to Unitholders $ 0.19 $ 0.14 Participating securities include 403,628 and 421,291 of unvested restricted stock or restricted Unit awards outstanding at March 31, 2017 and 2016, 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
Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Benefit Plans | Benefit Plans Restricted Stock or Restricted Unit Awards For the three months ended March 31, 2017, the Company awarded 252,213 shares of restricted stock awards to certain employees, which had a fair value of $6,631 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 this restricted stock award. 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 both the three months ended March 31, 2017 and 2016, 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, 2017, the Company granted to certain employees 195,951 Long-Term Incentive Program ("LTIP") performance units ("LTIP Unit Awards"), which had a fair value of $2,473 on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The LTIP Unit Awards vest based upon the relative total shareholder return ("TSR") of the Company's common stock compared to the TSRs of the MSCI US REIT Index and the NAREIT Industrial Index over a performance period of three years. Compensation expense is charged to earnings on a straight-line basis over the performance period. At the end of the performance period each participant will be issued shares of the Company's common stock equal to the maximum shares issuable to the participant for the performance period multiplied by a percentage, ranging from 0% to 100% , based on the Company's TSR as compared to the TSRs of the MSCI US REIT Index and the NAREIT Industrial Index. The 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 $3,101 and $2,963 for the three months ended March 31, 2017 and 2016, 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, 2017, we had $12,705 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. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Our objectives in using derivatives are to add stability to interest expense and to manage our cash flow volatility and exposure to interest rate movements. To accomplish this objective, we primarily use interest rate protection agreements as part of our interest rate risk management strategy. Interest rate protection agreements designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In connection with the originations of the seven -year, $200,000 unsecured loan (the "2014 Unsecured Term Loan") and the seven -year, $260,000 unsecured loan (the "2015 Unsecured Term Loan" and together with the 2014 Unsecured Term Loan, the "Unsecured Term Loans") (See Note 4) , we entered into interest rate protection agreements to manage our exposure to changes in the one month LIBOR rate. The four interest rate protection agreements, which fix the variable rate of the 2014 Unsecured Term Loan, have an aggregate notional value of $200,000 , mature on January 29, 2021 and fix the LIBOR rate at a weighted average rate of 2.29% (the "2014 Swaps"). The six interest rate protection agreements, which fix the variable rate of the 2015 Unsecured Term Loan, have an aggregate notional value of $260,000 , mature on September 12, 2022 and fix the LIBOR rate at a weighted average rate of 1.79% (the "2015 Swaps"). We designated the 2014 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, 2017, 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 and liabilities related to the 2014 Swaps and 2015 Swaps, which are included in prepaid expenses and other assets and accounts payable, accrued expenses and other liabilities on the consolidated balance sheets and are accounted for at fair value on a recurring basis as of March 31, 2017: Fair Value Measurements at Reporting Date Using: Description Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Derivatives designated as a hedging instrument: Assets: 2015 Swaps $ 2,349 — $ 2,349 — Liabilities: 2014 Swaps $ (3,766 ) — $ (3,766 ) — There was no ineffectiveness recorded on the 2014 Swaps and 2015 Swaps during the three months ended March 31, 2017. See Note 7 for more information regarding our derivatives. The estimated fair value of the 2014 Swaps and 2015 Swaps was determined using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments are incorporated in the fair value to account for potential non-performance risk, including our own non-performance risk and the respective counterparty’s non-performance risk. We determined that the significant inputs used to value the 2014 Swaps and 2015 Swaps fell within Level 2 of the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017, we had eight industrial properties totaling approximately 1.8 million square feet of GLA under construction. The estimated total investment as of March 31, 2017 is approximately $135,700 . Of this amount, approximately $71,700 remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated total investment. During the year ended December 31, 2016, a 0.03 million square foot industrial property in San Diego, California was significantly destroyed by a fire (the “2016 Fire”) and accordingly, during that same period we wrote off the unamortized net book value of the building improvements amounting to approximately $2,824 . We recorded a receivable from our insurance company for the amount of the write off, less our $25 deductible. In a separate event, on April 3, 2017, a fire caused significant damage to a 0.08 million square foot industrial property located in Los Angeles, California (the “2017 Fire”) (see subsequent events). During the three months ended June 30, 2017, we will write off the net unamortized building improvements for the damaged portions of the industrial property. Similar to the accounting for the 2016 Fire, we will record a receivable from our insurance company for the amount of the write off, less our $25 deductible. While we believe that the damages incurred due to the 2016 Fire and 2017 Fire are fully insured and reimbursable in accordance with our insurance policies, subject to the deductibles discussed, there can be no assurance that the cost to repair the damages will be collected. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events From April 1, 2017 to April 27, 2017, we acquired one industrial property for a purchase price of approximately $11,150 , excluding costs incurred in conjunction with the acquisition of the industrial property. On April 3, 2017, a fire damaged a 0.08 million square foot building located in Los Angeles, California. See Note 11 for further information. On April 20, 2017, the Operating Partnership issued $125,000 of 4.30% Series A Guaranteed Senior Notes due April 20, 2027 (the “2027 Private Placement Notes”) and $75,000 of 4.40% Series B Guaranteed Senior Notes due April 20, 2029 (the “2029 Private Placement Notes”) in a private placement pursuant to a Note and Guaranty Agreement dated February 21, 2017. The 2027 Private Placement Notes and the 2029 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. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 ("2016 Form 10-K") and should be read in conjunction with such consolidated financial statements and related notes. The 2016 year end consolidated balance sheet data included in this Form 10-Q filing was derived from the audited consolidated financial statements in our 2016 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, 2016 audited consolidated financial statements included in our 2016 Form 10-K and present interim disclosures as required by the Securities and Exchange Commission. |
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, 2017 and December 31, 2016, and the reported amounts of revenues and expenses for the three months ended March 31, 2017 and 2016. 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, 2017 and December 31, 2016, the results of our operations and comprehensive income for each of the three months ended March 31, 2017 and 2016, and our cash flows for each of the three months ended March 31, 2017 and 2016. All adjustments are of a normal recurring nature. |
Investment in Real Estate and Depreciation | Investment in Real Estate and Depreciation Effective January 1, 2017, we adopted Accounting Standards Update ("ASU") No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"). ASU 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. We applied ASU 2017-01 prospectively. We anticipate that our acquisitions of real estate in the future will generally not meet the definition of a business combination and, accordingly, transaction costs which have historically been expensed will be capitalized as part of the basis of the real estate assets acquired. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (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 for both parties to a contract. Under ASU 2016-02, we will be required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. We are a lessee on certain ground and operating leases as disclosed in Note 14 to the consolidated financial statements in our 2016 Form 10-K. Due to the length of the lease terms of some of these ground and operating leases, we expect to record a right-of-use asset and lease liability with respect to certain of our ground and operating leases upon adoption of this standard. ASU 2016-02 also requires that lessors expense certain initial direct costs that are not incremental in negotiating a lease as incurred. Under existing standards, certain of these initial direct 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. We are continuing the process of evaluating and quantifying the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. We will adopt ASU 2016-02 on January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue when 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. While lease contracts with customers, which constitute a vast majority of our revenues, are a specific scope exception, certain of our revenue streams may be impacted by the new guidance. Once the new guidance setting forth principles for the recognition, measurement, presentation and disclosure of leases (ASU 2016-02, as discussed above) goes into effect, the new revenue standard may apply to executory costs and other components of revenue due under leases that are deemed to be non-lease components (such as common area maintenance and provision of utilities), even when the revenue for such activities is not separately stipulated in the lease. ASU 2014-09 provides the option of using a full retrospective or a modified retrospective approach. We have not decided which method of adoption we will use. ASU 2014-09 is effective for annual periods beginning after December 15, 2017. We are currently in the process of evaluating the impact the adoption of ASU 2014-09 will have on our financial position or results of operations and we will adopt ASU 2014-09 on January 1, 2018. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 requires, among other things, the use of a new current expected credit loss ("CECL") model in determining our allowances for doubtful accounts with respect to accounts receivable, accrued straight-line rents receivable and notes receivable. The CECL model requires that we estimate our lifetime expected credit loss with respect to these receivables and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We will also be required to disclose information about how we developed the allowances, including changes in the factors that influenced our estimate of expected credit losses and the reasons for those changes. ASU 2016-13 is effective for annual periods beginning after December 15, 2019. We are in the process of evaluating ASU 2016-13. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” ("ASU 2016-15"). ASU 2016-15 addresses eight specific cash flow issues and 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 2016-15 is effective for annual periods beginning after December 15, 2017 with retrospective application required. We expect ASU 2016-15 to impact the presentation of our consolidated statement of cash flows and we will adopt ASU 2016-15 on January 1, 2018. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). ASU 2016-18 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. ASU 2016-18 is effective for annual periods beginning after December 15, 2017. We expect ASU 2016-18 to impact the presentation of our consolidated statement of cash flows and we will adopt ASU 2016-18 on January 1, 2018. |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Indebtedness | The following table discloses certain information regarding our indebtedness: Outstanding Balance at Interest Rate at March 31, 2017 Effective Interest Rate at Issuance Maturity Date March 31, 2017 December 31, 2016 Mortgage Loans Payable, Gross $ 459,539 $ 498,435 4.03% – 8.26% 3.82% – 8.26% June 2018 – September 2022 Unamortized Deferred Financing Costs (2,481 ) (2,905 ) Unamortized Premiums 384 426 Mortgage Loans Payable, Net $ 457,442 $ 495,956 Senior Unsecured Notes, Gross 2017 Notes 54,981 54,981 7.50% 7.52% 12/1/2017 2027 Notes 6,070 6,070 7.15% 7.11% 5/15/2027 2028 Notes 31,901 31,901 7.60% 8.13% 7/15/2028 2032 Notes 10,600 10,600 7.75% 7.87% 4/15/2032 2017 II Notes 101,871 101,871 5.95% 6.37% 5/15/2017 Subtotal $ 205,423 $ 205,423 Unamortized Deferred Financing Costs (277 ) (320 ) Unamortized Discounts (95 ) (105 ) Senior Unsecured Notes, Net $ 205,051 $ 204,998 Unsecured Term Loans, Gross 2014 Unsecured Term Loan (A) $ 200,000 $ 200,000 3.99% N/A 1/29/2021 2015 Unsecured Term Loan (A) 260,000 260,000 3.39% N/A 9/12/2022 Subtotal $ 460,000 $ 460,000 Unamortized Deferred Financing Costs (3,196 ) (3,362 ) Unsecured Term Loans, Net $ 456,804 $ 456,638 Unsecured Credit Facility (B) $ 252,000 $ 189,500 1.99% N/A 3/11/2019 (A) The interest rate at March 31, 2017 reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10. (B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized deferred financing costs of $2,544 and $2,876 as of March 31, 2017 and December 31, 2016, respectively, which are included in prepaid expenses and other assets on the consolidated balance sheets. |
Schedule of Maturities | The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and deferred financing costs, for the next five years as of March 31, and thereafter: Amount Remainder of 2017 $ 164,789 2018 165,449 2019 331,329 2020 58,762 2021 266,818 Thereafter 389,815 Total $ 1,376,962 |
Summary of Indebtedness at Estimated Fair Value | At March 31, 2017 and December 31, 2016, the fair value of our indebtedness was as follows: March 31, 2017 December 31, 2016 Carrying Amount (A) Fair Value Carrying Amount (A) Fair Value Mortgage Loans Payable, Net $ 459,923 $ 474,283 $ 498,861 $ 513,540 Senior Unsecured Notes, Net 205,328 221,162 205,318 222,469 Unsecured Term Loans 460,000 458,665 460,000 458,602 Unsecured Credit Facility 252,000 252,000 189,500 189,500 Total $ 1,377,251 $ 1,406,110 $ 1,353,679 $ 1,384,111 (A) The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing costs. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 December 31, 2016 ASSETS Assets: Net Investment in Real Estate $ 276,672 $ 278,398 Other Assets, Net 26,312 24,401 Total Assets $ 302,984 $ 302,799 LIABILITIES AND PARTNERS’ CAPITAL Liabilities: Mortgage Loans Payable, Net $ 62,229 $ 70,366 Other Liabilities, Net 9,138 9,138 Partners’ Capital 231,617 223,295 Total Liabilities and Partners’ Capital $ 302,984 $ 302,799 |
Stockholders_ Equity of the C23
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest Rollforward | The following table summarizes the changes in noncontrolling interest for the Company for the three months ended March 31, 2017 and 2016: 2017 2016 Balance as of December 31 $ 43,184 $ 42,035 Net Income 782 607 Unit Distributions (848 ) (816 ) Other Comprehensive Income (Loss) (Including a Reallocation of $0 and $3) 76 (459 ) Conversion of Limited Partner Units to Common Stock (A) — (98 ) Reallocation - Additional Paid-in-Capital (38 ) (47 ) Balance as of March 31 $ 43,156 $ 41,222 (A) For the three months ended March 31, 2016, 9,823 Limited Partner Units were converted into an equivalent number of shares of common stock of the Company, resulting in a reclassification of $98 of noncontrolling interest to the Company’s stockholders’ equity. |
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, 2017 and 2016: 2017 2016 Balance as of December 31 $ 956 $ 1,096 Net Income 27 14 Contributions 7 3 Distributions (17 ) (33 ) Balance as of March 31 $ 973 $ 1,080 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss by component for the Company and the Operating Partnership for the three months ended March 31, 2017: Interest Rate Protection Agreements Accumulated Other Comprehensive Loss of the Operating Partnership Comprehensive Loss Attributable to Noncontrolling Interest of the Company Accumulated Other Comprehensive Loss of the Company Balance as of December 31, 2016 $ (4,804 ) $ (4,804 ) $ 161 (4,643 ) Other Comprehensive Income Before Reclassifications 765 765 (76 ) 689 Amounts Reclassified from Accumulated Other Comprehensive Loss 1,509 1,509 — 1,509 Net Current Period Other Comprehensive Income 2,274 2,274 (76 ) 2,198 Balance as of March 31, 2017 $ (2,530 ) $ (2,530 ) $ 85 $ (2,445 ) |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table summarizes the reclassifications out of accumulated other comprehensive loss for both the Company and the Operating Partnership for the three months ended March 31, 2017 and 2016: Amounts Reclassified from Accumulated Other Comprehensive Loss Details about Accumulated Other Comprehensive Loss Components Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Affected Line Items in the Consolidated Statements of Operations Interest Rate Protection Agreements: Amortization of Interest Rate Protection Agreements (Previously Settled) 96 102 Interest Expense Settlement Payments to our Counterparties 1,413 1,836 Interest Expense Total $ 1,509 $ 1,938 |
Earnings Per Share _ Unit (EP25
Earnings Per Share / Unit (EPS / EPU) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Computation of Basic and Diluted Earnings Per Share / Unit | The computation of basic and diluted EPS of the Company is presented below: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Numerator: Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders and Participating Securities $ 22,709 $ 15,688 Net Income Allocable to Participating Securities (67 ) (63 ) Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders $ 22,642 $ 15,625 Denominator (In Thousands): Weighted Average Shares - Basic 116,837 110,793 Effect of Dilutive Securities: LTIP Unit Awards (As Defined in Note 9) 424 192 Weighted Average Shares - Diluted 117,261 110,985 Basic and Diluted EPS: Net Income Available to First Industrial Realty Trust, Inc.’s Common Stockholders $ 0.19 $ 0.14 |
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: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Numerator: Net Income Available to Unitholders and Participating Securities $ 23,464 $ 16,281 Net Income Allocable to Participating Securities (66 ) (63 ) Net Income Available to Unitholders $ 23,398 $ 16,218 Denominator (In Thousands): Weighted Average Units - Basic 120,877 115,096 Effect of Dilutive Securities that Result in the Issuance of General Partner Units: LTIP Unit Awards (As Defined in Note 9) 424 192 Weighted Average Units - Diluted 121,301 115,288 Basic and Diluted EPU: Net Income Available to Unitholders $ 0.19 $ 0.14 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements on Recurring Basis | The following table sets forth our financial assets and liabilities related to the 2014 Swaps and 2015 Swaps, which are included in prepaid expenses and other assets and accounts payable, accrued expenses and other liabilities on the consolidated balance sheets and are accounted for at fair value on a recurring basis as of March 31, 2017: Fair Value Measurements at Reporting Date Using: Description Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Derivatives designated as a hedging instrument: Assets: 2015 Swaps $ 2,349 — $ 2,349 — Liabilities: 2014 Swaps $ (3,766 ) — $ (3,766 ) — |
Organization - Additional Infor
Organization - Additional Information (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2017ft²PropertyState | |
Organization [Line Items] | |
Company's ownership interest | 96.70% |
Limited partners' ownership interest in the Operating Partnership | 3.30% |
Number of industrial properties owned | Property | 526 |
Number of states in which industrial properties are located | State | 23 |
Gross leasable area (GLA) of industrial properties owned | ft² | 62.7 |
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% |
Investment in Real Estate - Add
Investment in Real Estate - Additional Information (Details) $ in Thousands, ft² in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)ft²Property | |
Real Estate [Abstract] | |
Number of land parcels acquired | Property | 1 |
Purchase price of land parcels acquired | $ | $ 14,975 |
Number of industrial properties held for sale | Property | 2 |
Gross leasable area (GLA) of industrial properties held for sale | ft² | 0.1 |
Number of industrial properties sold | Property | 12 |
Gross leasable area (GLA) of industrial properties sold | ft² | 0.3 |
Proceeds from sale of industrial properties | $ | $ 20,500 |
Gain on sale of real estate | $ | $ 8,009 |
Indebtedness - Summary of Indeb
Indebtedness - Summary of Indebtedness (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Mortgage Loans Payable, Net | $ 457,442 | $ 495,956 | |
Senior Unsecured Notes, Net | 205,051 | 204,998 | |
Unsecured Term Loans, Net | 456,804 | 456,638 | |
Unsecured Credit Facility | 252,000 | 189,500 | |
2017 Notes | |||
Debt Instrument [Line Items] | |||
Senior Unsecured Notes, Gross | $ 54,981 | 54,981 | |
Interest Rate | 7.50% | ||
Effective Interest Rate | 7.52% | ||
Maturity Date | Dec. 1, 2017 | ||
2027 Notes | |||
Debt Instrument [Line Items] | |||
Senior Unsecured Notes, Gross | $ 6,070 | 6,070 | |
Interest Rate | 7.15% | ||
Effective Interest Rate | 7.11% | ||
Maturity Date | May 15, 2027 | ||
2028 Notes | |||
Debt Instrument [Line Items] | |||
Senior Unsecured Notes, Gross | $ 31,901 | 31,901 | |
Interest Rate | 7.60% | ||
Effective Interest Rate | 8.13% | ||
Maturity Date | Jul. 15, 2028 | ||
2032 Notes | |||
Debt Instrument [Line Items] | |||
Senior Unsecured Notes, Gross | $ 10,600 | 10,600 | |
Interest Rate | 7.75% | ||
Effective Interest Rate | 7.87% | ||
Maturity Date | Apr. 15, 2032 | ||
2017 II Notes | |||
Debt Instrument [Line Items] | |||
Senior Unsecured Notes, Gross | $ 101,871 | 101,871 | |
Interest Rate | 5.95% | ||
Effective Interest Rate | 6.37% | ||
Maturity Date | May 15, 2017 | ||
2014 Unsecured Term Loan (A) | |||
Debt Instrument [Line Items] | |||
Unsecured Term Loans, Gross | [1] | $ 200,000 | 200,000 |
Interest Rate | [1] | 3.99% | |
Maturity Date | [1] | Jan. 29, 2021 | |
2015 Unsecured Term Loan (A) | |||
Debt Instrument [Line Items] | |||
Unsecured Term Loans, Gross | [1] | $ 260,000 | 260,000 |
Interest Rate | [1] | 3.39% | |
Maturity Date | [1] | Sep. 12, 2022 | |
Mortgage Loans Payable | |||
Debt Instrument [Line Items] | |||
Mortgage Loans Payable, Gross | $ 459,539 | 498,435 | |
Unamortized Deferred Financing Costs | (2,481) | (2,905) | |
Unamortized Premiums | 384 | 426 | |
Mortgage Loans Payable, Net | $ 457,442 | 495,956 | |
Maturity Date Range, Start | Jun. 1, 2018 | ||
Maturity Date Range, End | Sep. 1, 2022 | ||
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Unamortized Deferred Financing Costs | $ (277) | (320) | |
Senior Unsecured Notes, Gross | 205,423 | 205,423 | |
Unamortized Discounts | (95) | (105) | |
Senior Unsecured Notes, Net | 205,051 | 204,998 | |
Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Unamortized Deferred Financing Costs | (3,196) | (3,362) | |
Unsecured Term Loans, Gross | 460,000 | 460,000 | |
Unsecured Term Loans, Net | 456,804 | 456,638 | |
Unsecured Credit Facility | |||
Debt Instrument [Line Items] | |||
Unamortized Deferred Financing Costs | (2,544) | (2,876) | |
Unsecured Credit Facility | [2] | $ 252,000 | $ 189,500 |
Interest Rate | [2] | 1.99% | |
Maturity Date | [2] | Mar. 11, 2019 | |
Minimum | Mortgage Loans Payable | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.03% | ||
Effective Interest Rate | 3.82% | ||
Maximum | Mortgage Loans Payable | |||
Debt Instrument [Line Items] | |||
Interest Rate | 8.26% | ||
Effective Interest Rate | 8.26% | ||
[1] | The interest rate at March 31, 2017 reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10. | ||
[2] | The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized deferred financing costs of $2,544 and $2,876 as of March 31, 2017 and December 31, 2016, respectively, which are included in prepaid expenses and other assets on the consolidated balance sheets. |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Loss from Retirement of Debt | $ (1,653) | $ 0 | |
Mortgage Loans Payable | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | 2,481 | $ 2,905 | |
Extinguishment of debt, amount | 36,108 | ||
Loss from Retirement of Debt | 1,653 | ||
Net carrying value of industrial properties collateralized by mortgage loans | 594,627 | ||
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | 277 | 320 | |
Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | 3,196 | 3,362 | |
Unsecured Credit Facility | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | $ 2,544 | $ 2,876 |
Indebtedness - Schedule of Matu
Indebtedness - Schedule of Maturities (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2017 | $ 164,789 |
2,018 | 165,449 |
2,019 | 331,329 |
2,020 | 58,762 |
2,021 | 266,818 |
Thereafter | 389,815 |
Total | $ 1,376,962 |
Indebtedness - Summary of Ind32
Indebtedness - Summary of Indebtedness at Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Carrying Amount | [1] | $ 1,377,251 | $ 1,353,679 |
Fair Value | 1,406,110 | 1,384,111 | |
Mortgage Loans Payable | |||
Debt Instrument [Line Items] | |||
Carrying Amount | [1] | 459,923 | 498,861 |
Fair Value | 474,283 | 513,540 | |
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Carrying Amount | [1] | 205,328 | 205,318 |
Fair Value | 221,162 | 222,469 | |
Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Carrying Amount | [1] | 460,000 | 460,000 |
Fair Value | 458,665 | 458,602 | |
Unsecured Credit Facility | |||
Debt Instrument [Line Items] | |||
Carrying Amount | [1] | 252,000 | 189,500 |
Fair Value | $ 252,000 | $ 189,500 | |
[1] | The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing costs. |
Variable Interest Entities - Su
Variable Interest Entities - Summarized Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Net Investment in Real Estate | $ 2,589,077 | $ 2,588,422 |
Total Assets | 2,805,058 | 2,793,263 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 457,442 | 495,956 |
Total Liabilities and Equity/Partners' Capital | 2,805,058 | 2,793,263 |
Other Real Estate Partnerships | ||
Assets: | ||
Net Investment in Real Estate | 276,672 | 278,398 |
Other Assets, Net | 26,312 | 24,401 |
Total Assets | 302,984 | 302,799 |
Liabilities and Partners' Capital: | ||
Mortgage Loans Payable, Net | 62,229 | 70,366 |
Other Liabilities, Net | 9,138 | 9,138 |
Partners’ Capital | 231,617 | 223,295 |
Total Liabilities and Equity/Partners' Capital | $ 302,984 | $ 302,799 |
Stockholders_ Equity of the C34
Stockholders’ Equity of the Company and Partners' Capital of the Operating Partnership - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | $ 0 | $ 0 |
Common stock dividends and Unit distributions | 25,560 | |
Common Stock / Operating Partnership Units | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Shares | 9,823 | |
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | $ 98 | |
Common stock dividends and Unit distributions | 25,560 | |
First Industrial, L.P. | ||
Class of Stock [Line Items] | ||
Conversion of Limited Partner Units to Common Stock / General Partner Units, Value | $ 0 | $ 0 |
Stockholders' Equity of the Com
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, 2017 | Mar. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||
Beginning Balance | $ 43,184 | |
Net Income | 782 | $ 607 |
Unit Distributions | (25,560) | |
Other Comprehensive Income (Loss) (Including a Reallocation of $0 and $3) | 2,274 | |
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 0 |
Reallocation - Additional Paid-in-Capital | 0 | |
Ending Balance | 43,156 | |
Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 43,184 | 42,035 |
Net Income | 782 | 607 |
Unit Distributions | (848) | (816) |
Other Comprehensive Income (Loss) (Including a Reallocation of $0 and $3) | 76 | (459) |
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | (98) |
Reallocation - Additional Paid-in-Capital | (38) | (47) |
Ending Balance | 43,156 | 41,222 |
Reallocation - Other Comprehensive Income (Loss) | 0 | 3 |
First Industrial, L.P. | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 956 | |
Net Income | 27 | 14 |
Contributions | 7 | |
Distributions | (17) | |
Other Comprehensive Income (Loss) (Including a Reallocation of $0 and $3) | 2,274 | |
Conversion of Limited Partner Units to Common Stock/General Partner Units | 0 | 0 |
Ending Balance | 973 | |
First Industrial, L.P. | Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Beginning Balance | 956 | 1,096 |
Net Income | 27 | 14 |
Contributions | 7 | 3 |
Distributions | (17) | (33) |
Ending Balance | $ 973 | $ 1,080 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Changes in AOCI) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ (4,643) |
Other Comprehensive Income Before Reclassifications | 689 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,509 |
Net Current Period Other Comprehensive Income | 2,198 |
Balance | (2,445) |
Interest Rate Protection Agreements | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (4,804) |
Other Comprehensive Income Before Reclassifications | 765 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,509 |
Net Current Period Other Comprehensive Income | 2,274 |
Balance | (2,530) |
Comprehensive Loss Attributable to Noncontrolling Interest of the Company | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 161 |
Other Comprehensive Income Before Reclassifications | (76) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 0 |
Net Current Period Other Comprehensive Income | (76) |
Balance | 85 |
First Industrial, L.P. | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (4,804) |
Balance | (2,530) |
First Industrial, L.P. | Interest Rate Protection Agreements | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (4,804) |
Other Comprehensive Income Before Reclassifications | 765 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | 1,509 |
Net Current Period Other Comprehensive Income | 2,274 |
Balance | $ (2,530) |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest Expense - Amortization of IRPAs | $ 14,369 | $ 16,259 |
Total | (8,791) | (9,881) |
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 | 96 | 102 |
Interest Expense - Settlement Payments | 1,413 | 1,836 |
Total | $ 1,509 | $ 1,938 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accumulated Other Comprehensive Loss [Abstract] | |
Amortization to be reclassified from OCI into income | $ 132 |
Earnings Per Share _ Unit (EP39
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, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net Income Available to Common Stockholders/Unitholders and Participating Securities | $ 22,709 | $ 15,688 |
Net Income Allocable to Participating Securities | (67) | (63) |
Net Income Available to Common Stockholders / Unitholders | $ 22,642 | $ 15,625 |
Denominator: | ||
Weighted Average Shares / Units - Basic | 116,837 | 110,793 |
LTIP Unit Awards (As Defined in Note 9) | 424 | 192 |
Weighted Average Shares / Units - Diluted | 117,261 | 110,985 |
Basic and Diluted EPS / EPU | ||
Net Income Available to Common Stockholders/Unitholders | $ 0.19 | $ 0.14 |
First Industrial, L.P. | ||
Numerator: | ||
Net Income Available to Common Stockholders/Unitholders and Participating Securities | $ 23,464 | $ 16,281 |
Net Income Allocable to Participating Securities | (66) | (63) |
Net Income Available to Common Stockholders / Unitholders | $ 23,398 | $ 16,218 |
Denominator: | ||
Weighted Average Shares / Units - Basic | 120,877 | 115,096 |
LTIP Unit Awards (As Defined in Note 9) | 424 | 192 |
Weighted Average Shares / Units - Diluted | 121,301 | 115,288 |
Basic and Diluted EPS / EPU | ||
Net Income Available to Common Stockholders/Unitholders | $ 0.19 | $ 0.14 |
Earnings Per Share _ Unit (EP40
Earnings Per Share / Unit (EPS / EPU) - Additional Information (Details) - shares | Mar. 31, 2017 | Mar. 31, 2016 |
Earnings Per Share [Abstract] | ||
Unvested Restricted Stock / Unit Awards | 403,628 | 421,291 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amortization related to restricted stock/Unit awards and LTIP Unit Awards | $ 3,101 | $ 2,963 |
Unrecognized compensation related to unvested restricted stock/Unit awards and LTIP Unit Awards | $ 12,705 | |
Weighted average period of unrecognized compensation expected to be recognized | 1 year 1 month 21 days | |
LTIP Unit Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of LTIP Unit Awards | 0.00% | |
LTIP Unit Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of LTIP Unit Awards | 100.00% | |
Management | Restricted Stock/Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock/Unit awards and LTIP Unit Awards issued | 252,213 | |
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 6,631 | |
Vesting period of restricted stock/Unit awards issued | 3 years | |
Compensation expense recognized at date of grant | $ 1,590 | $ 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 | 195,951 | |
Fair value of restricted stock/Unit awards and LTIP Unit Awards issued | $ 2,473 | |
Vesting period of restricted stock/Unit awards issued | 3 years |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
2014 Swaps | |
Derivative [Line Items] | |
Debt Instrument, Term | 7 years |
Debt Instrument, Face Amount | $ 200,000 |
Debt instrument, LIBOR Rate | one month LIBOR |
Swaps, Number of Instruments Held | 4 |
Swaps, Notional Amount | $ 200,000 |
Swaps, Average Fixed Interest Rate | 2.29% |
2015 Swaps | |
Derivative [Line Items] | |
Debt Instrument, Term | 7 years |
Debt Instrument, Face Amount | $ 260,000 |
Debt instrument, LIBOR Rate | one month LIBOR |
Swaps, Number of Instruments Held | 6 |
Swaps, Notional Amount | $ 260,000 |
Swaps, Average Fixed Interest Rate | 1.79% |
Derivatives - Fair Value Measur
Derivatives - Fair Value Measurements on Recurring Basis (Details) $ in Thousands | Mar. 31, 2017USD ($) |
2015 Swaps | |
Derivatives, Fair Value [Line Items] | |
Asset Fair Value | $ 2,349 |
2015 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Derivatives, Fair Value [Line Items] | |
Asset Fair Value | 0 |
2015 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Derivatives, Fair Value [Line Items] | |
Asset Fair Value | 2,349 |
2015 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Derivatives, Fair Value [Line Items] | |
Asset Fair Value | 0 |
2014 Swaps | |
Derivatives, Fair Value [Line Items] | |
Liability Fair Value | (3,766) |
2014 Swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Derivatives, Fair Value [Line Items] | |
Liability Fair Value | 0 |
2014 Swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |
Derivatives, Fair Value [Line Items] | |
Liability Fair Value | (3,766) |
2014 Swaps | Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | |
Derivatives, Fair Value [Line Items] | |
Liability Fair Value | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) ft² in Thousands, $ in Thousands | Apr. 03, 2017USD ($)ft² | Mar. 31, 2017USD ($)ft²Property | Dec. 31, 2016USD ($)ft² |
Other Commitments [Line Items] | |||
Number of industrial properties under construction | Property | 8 | ||
Gross leasable area (GLA) of industrial properties under construction | ft² | 1,800 | ||
Estimated total investment | $ 135,700 | ||
Estimated total investment remaining to be funded | $ 71,700 | ||
Gross leasable area (GLA) of industrial properties destroyed by fires | ft² | 62,700 | ||
2016 Fire | |||
Other Commitments [Line Items] | |||
Gross leasable area (GLA) of industrial properties destroyed by fires | ft² | 30 | ||
Write off of unamortized net book value of building improvements | $ 2,824 | ||
Insurance deductible | $ 25 | ||
Subsequent Events | 2017 Fire | |||
Other Commitments [Line Items] | |||
Gross leasable area (GLA) of industrial properties destroyed by fires | ft² | 80 | ||
Insurance deductible | $ 25 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Apr. 27, 2017USD ($)Property | Mar. 31, 2017USD ($)ft² | Mar. 31, 2016USD ($) | Apr. 20, 2017USD ($) | Apr. 03, 2017ft² | |
Subsequent Event [Line Items] | |||||
Purchase price of industrial properties acquired | $ 15,074 | $ 47,406 | |||
Gross leasable area (GLA) of industrial properties destroyed by fires | ft² | 62,700 | ||||
Subsequent Events | |||||
Subsequent Event [Line Items] | |||||
Number of industrial properties acquired | Property | 1 | ||||
Purchase price of industrial properties acquired | $ 11,150 | ||||
Private Placement Notes 2027 | Subsequent Events | |||||
Subsequent Event [Line Items] | |||||
Private Placement Notes, Face Amount | $ 125,000 | ||||
Private Placement Notes, Interest Rate | 4.30% | ||||
Private Placement Notes 2029 | Subsequent Events | |||||
Subsequent Event [Line Items] | |||||
Private Placement Notes, Face Amount | $ 75,000 | ||||
Private Placement Notes, Interest Rate | 4.40% | ||||
2017 Fire | Subsequent Events | |||||
Subsequent Event [Line Items] | |||||
Gross leasable area (GLA) of industrial properties destroyed by fires | ft² | 80 |