FR - Earnings call transcript Q3 2017 | First Industrial Realty Trust, Inc.

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Operator

Good morning. My name is Jeff [ph], and I will be your conference operator today. At this time, I would like to welcome everyone to the First Industrial Third Quarter Results Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator President Relations, Vice your may conference, sir. of Hartmon, you Investor begin Art

Art Hartmon

Jeff everyone [ph]. our lot a Thanks, Hello call. and to welcome

remind plans Federal be accurate Securities Before results, These statements statements include third may our on Laws. of statements everyone management's only our based me Today's expectations, forward-looking by we and may estimates that as time defined quarter as sensitive are call obligation October results are XX, factors and our XXXX. discuss let from of to XXXX today's and no information Actual update cause described or assume provide. our date, XX-K Form may other other the this Thursday, our which could and statements filings. We SEC materially in forward-looking we prospects. statements, differ

a filings measures report, You firstindustrial.com, available in earnings reconciliation today's call and financial SEC supplemental supplement under release. Investors The of our in are non-GAAP our and discussed report our tab. at the release can earnings find

are will Jojo begin Scott Musil, Our and Baccile, open we after which on questions. and CFO, it our Officer; with will Executive President President; of Also Peter call Chief for Management. Executive our Schneider, your Investment Yap, Officer; Vice Chief President President Walter, Peter Operations Markets Senior remarks Schultz, Vice Senior Bob by Asset and up our Chris and Vice today Capital call of our

turn me let the Now Peter. call to over

Peter Baccile

strong X.X%. rates The to country us metrics the more We Thanks NOI to of teammates XXX Industrial thank same-store Art. Cash detail points, continuing grew our growth up And X.X% shortly. results. the XX.X%, today. was delivered Scott discuss will these like quarter. First cash in their to around to and basis an second all up my contributions thank I'd joining for third rental occupancy all for for the team overall quarter excellent quarter. you were compared

yield XXX,XXX landlord. completions equation square environment favor is square they versus feet Demand the development in have feet, we've clear on PV XXXX. square primarily in already through according supply last net to with is estimated UPS now It foot a third XXXX. started our trailer Advisors. quarter Total an we overall yield XXX excited GAAP XX development distribution we acquired we broken First the is exceeded expected Joliet year. Center center our ground of Logistics building. call expect XXX,XXX we amenity There million and $XX.X targeted, one. a Center, market GAAP several X.X%. building [indiscernible] investing with our cross-dock at foot for building GAAP square to projects this launch year-to-date In second speculative XXXX. of XXX,XXX I-XX/XX Park continues an quarter, parking Logistics provide the of can First that successful million expect In access, and site car This the and reached investment yield for feet, X.X%. investment heights. at is $XX.X investment second the the Chicago, strategy supply discuss the Completion to feet we second XXX,XXX on the and market future for XXX our to in is XXX, or that clear Total since environment of Econometric our commenced the at new The that will and our we bringing strongly a million projected demand building Looking new we're facility absorption of of of note $XX.X tenant leads Following to has be First fourth the complete plan quarter. entire be volume to building @ ground development we million a suits for prospective forecasted is net complete the site are quarter of square X.X%. as to slated a in foot million CBRE IXX Total and to for we of interesting square Pennsylvania, during absorption expected building It second is estimated quarter allows of @ Phoenix

X.X%. $XX our for $XXX total speculative million million. the completed buildings feet As targeted developments quality yield of the today weighted investment square three GAAP high front, new totalling comprising square we feet and of X.X for process Also million on average acquired in XXX,XXX

a cap $XX.X cap the in In percent leased developed the quarter the two X.X%. on Center distribution In in quarter stabilized near of to date building building acquired Jersey recently acquired these Business a hundred $X.X New we foot which was It's $XX.X place foot at Also square to in and fully and seven is for in the second Florence tenants asset acquired million we we three across assets. XX,XXX basis in a to and market fourth long-term the Logistics completed up quarter. leased million. for for Pompano Center placed Orlando exit the acquired square First X.X%. X%. Let by street square is is in XXX rate cap a rate a rate we briefly of located leased occupied million, XXX,XXX an located me The the is one project third company XX% and Miami center third quarter tenants. facility that just XXX,XXX in Fortune we last facility describe the We from year. foot The

the development quarter bought XXX,XXX million foot third Houston can for accommodate square during Northwest building. $X.X in Lastly, that a site we

million we cap dispositions, place well and sold ten was in in square $XX.X $XX.X included San our million largest third Antonio, Fourth million. five-building portfolio for feet. totaling XXX,XXX Detroit, buildings rate loan a X.X%. Moving buildings sold quarter, These on cap properties stabilized quarter Phoenix. totaling in to as expected for X.X average have we in The XXX,XXX feet was buildings to six the and of totaling of square square for Cincinnati, X.X% was Minneapolis, feet the date weighted as dispositions million. building rate it The in $XX.X in nine Atlanta

sold occupied Alabama. relative also were Indianapolis, in Chicago sale. our our goal Year-to-date we've in $XXX to at sales to plus Salt year. XX% Lake, $XXX.X These of the asset and properties million for solo We completed of $XXX million million

an So excellent again quarter. we had

several a have We that favorable to let that turn environment. we're growth and Scott. it excited opportunities about me continuing With over new

Scott Musil

Peter. Thanks

$X.XX the was $X.XX The XXXX. share Let me gain XXXX, approximately start included share, with interest to versus the one which $X.XX refunds $X.XX diluted in an per will $X.XX XQ ago. for protection from the of operations compared quarter. related operations EPS were discuss I mark-to-market Funds in rate year overall agreement share to per results shortly. XQ per from

this operations been $X.XX Excluding share. per funds have would from item

up ago. basis finished at XX.X% occupancy, Sales the basis by quarter XQ a helped the we occupancy basis noted, from Peter points, quarter compared prior to XX As XXX XXXX. XXX and from points year points

paid rental terminations taxes a lease and quarter. volume leasing points. increase feet leases up. are XXX,XXX million %XXX,XXX new, long-term on are for X.X%, development markets values Lease decrease basis, property dollars estate fees in and in fees square cash On acquisitions arrears. growth Regarding with these terminations results taxes were a run same-store rates the Same-store totaled basis new our growth a rent. X.X the X.X% in X.X% or growth NOI due feet in up are These GAAP were rates approximately excluding square up in were by partially footage and a few XX.X% square by square in renewals leasing was Tenant leasing XX.X%. retention an reflecting Of by feet XX.X%. rate termination XX.X%. XXX,XXX up XX.X% real free renewals was which of to with including commenced primarily This rate place impacted same-store cash X.X%. rising renewals offset and was basis were overall square XXX,XXX NOI up on leasing up bumps, feet with rental during rental Cash new increasing and overall, rental XXX

the weighted gain interest treasury credit EBITDA during These and relates in term notes, approximately unsecured gain with anticipation was It on to figures notional average interest maturity financings to September the a side. the plus our capital of our weighted to the debt has is of which adjusted treasury XXXX. instrument needs At rate future X.XX%, March to value At EBITDA XQ The ten-year unsecured issuance the We mark-to-market the XX, of X.X the of excludes secured a by place with preferred at stock an X.X mark-to-market Adjusted times. our out lock facility. debt. years into rate Moving end net third of of of X.XX%. rate lock cash and average we entered put quarter. agreement. a protection X, a settled this million $XXX three exclude be loans

Our credit cash balance is million. and is line million position today $XXX $XX approximately our

to guidance increase $X.XX to the an Now I the at FFO range per due of discussed. our mark-to-market our $X.XX the to press just of on release lock treasury penny gain We updated from narrowed NAREIT that last guidance evening. moving midpoint share, our to a primarily

of mark-to-market early an on store from of range expense X.X% The Fourth the last average guidance the follows: year is Before tax the the gain re-subsidiary fourth in to midpoint. basis the X.X%. range This a FFO secured quarter X.XX%. our with occupancy XX.XX% to related implies sale to previously $X.XX quarter is $X.XX for to based treasury quarterly compared assumptions narrowing our prepayment on the disclosed range to taxable a NOI NOI our ending growth XX.XX% to implies slight the no change of of guidance which call. cash same This the same-store share, key for property and results, end increase to earnings loss the a midpoint, at X.XX% quarter per of to for in-service lock, a occupancy are the a related of XX.XX%. XX.X% as debt, of approximately full XQ in now

million, G&A our guidance costs. costs an of million for developments. in XXXX anticipated increase full interest related to related year the $X our September Our guidance total, midpoint from under at to construction based million is $XX of And XX. range our share to the compensation to per we $XX expected XXXX, at increase now capitalized the performance $X.XX an about In and related development expect completed includes

any sales, or X.X% development does this repurchases, call, issuance will not any the reflect of million, than off guidance acquisitions of debt repayments December. $XX we notes Our unsecured earnings other the maturity that impact future in early potential mark-to-market our pay any or issuances, impact future that any debt the after over or excludes or and The also gain Guidance of to of it discussed. me impact With impairments or previously treasury equity. losses, loss turn Peter. future back lock gains of the future any in the compliant impact let

Peter Baccile

Scott. Thanks

Before November our of a for questions, current the of upcoming like our we about portfolio we Day our you the in will deeper and New strength for to next York and few open X would it I Investor dive City. remind years. on There into platform, up growth little vision

We will look there. forward to many of you seeing

yet would If you Harmon. Art to and RSVP to out to like reach have attend please

of Now get business the please would answering your you let’s line. the question. open Operator up on

Operator

from Instructions] the Keybanc. Your Craig go line comes from ahead. question [Operator Please Mailman first

Craig Mailman

some next Scott till mark-to-market look on your at your And the is have XXXX curious expiration the I expected on just you sort of giving of at guidance year, also XXXX Maybe guys guys Maybe Do those? rolling but curious know if bigger what schedule. roll. looking some expectations guys. what Just you aren't that? you year? you just leases Thank next

Chris Schneider

to the bit some a million give are like to here are give lease more in on you Craig lease you renewals year for give a There next Investor on a to for looking idea At little have that. we obviously we a positive a Craig Day color concerned where going rental you about little as little Okay, we're I in our say Investor of square what be the Easton plug that Investor at information so feet turn going biggest I Peter of it our XXXX. Quincy November going far Day.\ on going percentage, stand in but X.X is Day. I'll expirations to as we're give for what the bit would we’re we'll Pennsylvania rates over tell to

Peter Baccile

Amazon with Quincy end Craig expires And P.A., it’s of northeast of So the on which March Peter XXXX, lease them. discussions our are in the continuing

all We update has expect done. that Amazon to terms I next the on that you on get know as talk that can't about about done but you that that we you expect a to confidentiality and said get we'll We the as do as tight can’t leases. the call. tell anything We

Craig Mailman

top Do you any expiring have leases guys next year? XX

Chris Schneider

biggest the the is Peter one that Yes Craig one just mentioned.

Craig Mailman

you on Scott it same-store we drag taxes you in you XXXX. It year guys fight move are rears. the had into going for to to was think the then up as mean to that catch And front this a the that – guys tag able the I quarter. I Are about sounded head forward to what increased look Okay. higher? are as impact we some of continue should next guys pairing on and you how as you with values guess like be

Scott Musil

want over could will reiterate we is that and timing we XXXX. year. appeal taxes fiscal XXXX it’s sometimes unfortunately on it's year issue what Craig, those really issue between tax the take Craig it a Yes that to But process takes time long a a Scot

one of fully we GAAP these when taxes XXXX. them provided under from taxes we recover tenants. the for increase things have our So where we in will XXXX, But accounting, in in paid the

discussed. that we that's same-store the So issue

Craig Mailman

little tax flows actually get as there? you and pass It a be a through? tailwind bit And can it the of you

Scott Musil

year. Well, the expensed we're to expenses year. this being the collect money next fully going

next from So X.XX%, keep in not Craig, in be it's a want a quarter whether only annualized point third that going again, we it's basis hit arrears, impact we increase we of the this have on took X.X% difference to a really or increases year, any the in taxes an mind timing reiterate really on to in cash basis but is view.

Craig Mailman

Great thanks.

Operator

question next Ki the go from Bin SunTrust. ahead. comes Your of line Kim from Please

Ki Bin Kim

guys. morning Good

Bob Walter

Kim. Ki Hi Bin

Ki Bin Kim

a your – allocation. I couple guys just see in a capital feet. square million four million, you build couple sold million if at So bought I look here, a

you be, being it your your real for assets like like the activity appreciated $XX quality you have foot disposition portfolio, But fully still improving which may You're type which by industrial market. sale today, when at not look overtime I much square a seems of How or just it I the lower have way, much bucket? buckets do you because it’s make want to the you only bad have estate doesn’t sell? sold. more in that And know comp. XX how do more tier by you but

Peter Baccile

year growth that add as on out to to his less think on going well. asset want and we is that opportunity we're ongoing comment are then push more higher. management every assets Well portfolio of that own Ki into we're the the capital an to The opportunity is Bin of assets Jojo have rents that, I'll going rental can and be going Working thoughts assets the leasing. redeploy we to is to those we're other thing,

sales next number gross going here. within is the few definitely. that going The today the we're not be add. that's range the might So I to continue, range guidance in seen amounts be of Jo going speaking you last do for what to to on want that obviously, give years the generally you’ve magnitude year, that or think but to

Jojo Yap

yes. Sure

of strategy things, and the the rents as last multiple don't is properties can cash tenant can't plus So really more much to actually these the pricing given, push point. that for in leasing for CapEx the yields raise portfolio, CapEx We flow the rest but mean our been to we have that we we it lower, raise years cash out we're can maintain. as [indiscernible] this two assets I is rents up mean think do. of needs at is the because we the after projected yields in sold function the X.X%, stabilized at improvements I from flows

yield X.X% continue pleased that cash not with the so. we’re flow do long-term we When high-growth and a find So assets we'll to stabilized do meet aspirations. growth

Ki Bin Kim

quality standpoint, from you something me, and part certain still plus a where management, off? is age the just it And a Okay. sell ongoing or or there to quality want of but need nature would longer-term pruning just still of to understand that a assets I or markets that standpoint, asset

Jojo Yap

been part our we’re from out pointed Well yes, [indiscernible] income of you today, portfolio. gaining our strategy, mean XX.X% leased like good we’re I it’s

But again, prospects continue with flow out to And into And the lower are our pleased what into so Investor Day terms need assets. the that delivering. to our also now at we make will dive portfolio. go we're cash growth push cash portfolio growth deeper flow sure on is well – in our we a of

Peter Baccile

It’s again. asset-by-asset look, not a really market-by-market And Ki Bin look. an

Ki Bin Kim

Okay, and just last question.

you flags. where incremental for [indiscernible]. guys both an You assets more comp buckets demands getting there difference before your noticeable Is typically different excess R&D are out typical any [indiscernible] others segment

Peter Schultz

Peter Ki it’s Schultz. Bin,

I’ll footage. broad much be you the pretty there's but in that a and at buildings across the But for demand all there's certainly better say square pretty space in larger have demand if So for larger today continues our demand sizes, our contributed that, logistics of to geographies to certainly general. lot buildings country been look segments occupancy

Peter Baccile

is statistics Our our primarily infield of also resulted because given. portfolio

Ki Bin Kim

Alright, thank you.

Operator

[Operator comes Street Green with Instructions] Advisors. question next from Frankel Eric The

open. Your line is

Eric Frankel

you. the can aren't you One, just just Scott, generally? – explain by again. estate these isn't in the Thank real arrears tenants expenses reimbursed tax

Scott Musil

tenants. estate are whatever So tenants, fiscal that a we basis, the taxes pay a Yes recover on year arrears from difference on cash timing. that basically in I recovered When we year okay? there's you Eric, from our the in pay mean taxes

those increases we're real next think is it tenants. going paid there those had what But those sizable are XXXX what key on to taxes the estate from do our in is where have those the a we we two be when going increase again, taxes to to recover in estimate was So we fully and point increases in I year taxes. XXXX markets, pay

XXXX. is XXXX between this and really timing a So

Eric Frankel

clarify [indiscernible] just NOI guidance growth And to the Okay, year. for then I that's think guidance, your helpful. its same-store

want I think the living the be of that up it applies nickname, but to quarter. be companies. low-X% seems growth good say pretty in portfolio. you a here fourth just I don't on given fact might it the growth rent possibility based And a there's

Scott Musil

It's the legacy that left Bruce behind.

to look of we've debt for had X.X quarter third midpoint fourth about it's percentage got We We $XX,XXX quarter. bad are in $XXX,XXX at and fourth expense you the going be this there – if in XXXX. again quarter,

XX we to So hard could because is if upside that X.X%. basis we happen pick up Eric. so debt this as potential again be forecast have the But should on. we that for to points bad times same to about results, things But able go us be push a

Eric Frankel

there Is modifying your any consideration evolves? bad of debt portfolio your as assumptions

Scott Musil

our revenue what – we’ve got debt point and We And of statistics is is that as to So XXXX, back these history we XXXX. on a done against the look going revenues. of percentage at bad average basically methodology that expense implied basis use we've

continue we and fourth as When the assumption is tenants to down will to guess make for first your a quarter point. quarter have what on go with see of and expense give bad But as we a macro lower down. that trying happen we're my So percentage that it. guidance go result will hard assumption to debt our at could it’s

Eric Frankel

Thanks. back Okay, the in I’ll turn queue.

Operator

with Your Baird. comes Dave next from question Rodgers

line Your is open.

Dave Rodgers

a NOI. just morning Hey on Scott, the good guys. same-store follow-up

reason were pull top of basis seems end end top there on so. down? lot You now that like of points taxes, guidance to other a or the the any XX It

Scott Musil

have that I do one only quarter this at left in that we just time. the David, point fact think, with have to

much really this you have there at really that point. So can't fluctuation

Dave Rodgers

were there? something if in kind don't general on Scott the seeing worth are unique course of know you. interesting just they anything or of you there then Or push cost is higher or And discussing? I there's Got trend above leasing Peter or

Chris Schneider

It to just the renewal Hey David, Chris. mix leasing. for has of do versus it’s really the new it

percentage the have $X.XX deals leasing new And typically right leasing a So about foot. per foot. you is were square around new have a higher square $X renewal

the mix. really it's So

blended look costs $X below are a at year-to-date, our $X.XX. foot overall you at If

mix. So to the it really gets back

Dave Rodgers

a meaningful if those newer seeing you Are separately, two took difference you renewals?

Chris Schneider

to so a closer higher there Yes again new to square if foot. your my renewal have is cost a that going are On renewals on the you percentage deals $X.XX deals $X be blended comment is down. of

Dave Rodgers

those moving may a it differently, ask as I'll costs? higher, bit dramatically leasing be

Chris Schneider

market in giving. I on it really. TI mean not [indiscernible] No, back the of we actually – market – push we we're this – allowances kind the that

there, going if costs the So are down. anything's

Dave Rodgers

be Okay may deals or acquisition may for Joe. be And that’s then Peter, down. continue for Joe to helpful. come

kind you of You guys to I gotten you think pretty are? get think. more want kind and where returns of you've then to feeling continue our returns still aggressive. aggressive buyers, be achieving What's are I the your

at gotten last more this work So you yield. comfortable putting money what’s lower versus that to year

Jojo Yap

because mean I have have acquisitions markets more down Dave, been yields coming competitive. been the Sure have

to And so news there's no anyone.

acquisitions view the So land again, pleased severity we Miami are the of constraints. land with bolt our on,

like the in of of a one-off. Jersey first Lawrence South closed up and quality, rate that's absolutely, So we rents rate growth X, those X higher great our there quality, to close

still very, – development Dave, see we’re return. though, there X.X% our and our you the with expected the overall As to investments pleased continues of very majority be

in you of all and but us shareholder return. margin be you lot conservative, and quite the because developments basically, that. not construction, five put can development properties for will so provide high on And those of those, We're developments. the sellers those on should values compete of to of just that If a is

for pleased we're So that.

serve you there. build. out demand we'll can know – plan plan a where of continue and we're for Going unmet way to to going we forward, areas our putting look continue

And those let so you projects to we when know. get we'll

Dave Rodgers

Thanks guys. Great.

Operator

comes question Stifel. next Your with Guinee from John

line is open. Your

John Guinee

your of purchases Looks inventory, that recent development. how are thank of your year. think land be should you historic And value? about you're we to And got for historic you $XX million able then Are a how may you monetize into you. putting And Great, inventory. like land a $XXX land? million buying quickly any

Jojo Yap

million been $XX recycling John have Yes historically in million able land. Jojo. those. Sure, dollar been of the this we we've been is $XXX We've always gains been

total we've about in how service that's footage And recent put recent and we what what of put logistic first center. we've of roughly quarter IXX example XX%. of investment plus service XX this IXX logistic land about center As want the first is the Juliet just square the seventy acquisitions most basically

So XX we've odd percent. production into basically put

we production. were our continuous Of not is into work of to number put on still those land. it and that sites our we development to to And inflated But need produced landing. course have buy this of kind or be in John a is not to leased really done how design. not significant goal And order amount just acquire long-term

preference Our is developable to immediately really buy land.

Chris Schneider

Most minus we acquired and in John of two last we the that have land the years. plus

are we this So to stick yields trying of putting good period time. really in to short land a

Jojo Yap

when we I returns it take want we that. only so can is is and use of higher we potentially did find also And monetize lower historically that better to add a of and land thing opportunistically,

So of at XXXX, sold we XXXX, if you look from our about $XX million land.

John Guinee

the if And all entitled it and thing. to proper about cost of sort you cost land, and think that get the and Okay.

to If look or ago things today to markets? various that are what the pricing X you in at land years X happened

Jojo Yap

Certainly it’s varies and increased market-by-market. it

kind of somewhere year-over-year I lower. you fees long basically maybe seen tell years would the Over time. three XX% XX% a that we've lending the it’s

But relationships is buy municipalities to expensive. that that's our job that and especially tougher, through. getting We land. entitlement maybe our the it I platform takes The things of prices bit to factor more If the over when coasts, the terms to it is on longer, ago. do. But identify mean, getting two Jersey, when we three years you to difficult more cost get even our in timing But to compared SoCal, have use look our longer, all entitled XX% if and we we do land a Miami at underwriting, and year-over-year. increased it's to comment

John Guinee

Great thank you.

Operator

[Operator Instructions] Michael The from next J.P. Mueller Morgan. question comes with

is Your one open.

Michael Mueller

this mean couple about just asset at versus questions of wondering you first I thinking point to A how equity are using fund growth? all sales Hi.

Jojo Yap

We asset comment the I’ll We're from pricing on a particular. make a getting. jump front. aggressive There's bidding success buyers sales can good lot and like the then users we're Scott finding some of and XXXX in. there in

manage equity be as going way so certainly our assets. to continues to that the can ratio, EBITDA the strong when the the we're debt balance balance and we're a of to lot some and lack to we'll looks It out again going [indiscernible] that sheet. continue Scott? like sources sheet do recycle those and And through We long to today. like as the of so continue backup, balance get issue uses cycle We

Scott Musil

view only that Yes, million XXXX in mortgage in loans. after repayments my thing is is this pay principal the $XX about we on other

We’re retaining million of well. $XX as cash about

or investment our using new to whether we’re So acquisition it development.

Michael Mueller

it it. other you you And has Okay, in got what of then was changed at us that one can CapEx guidance? just for remind all? And XXXX, question for Scott. terms On number

Scott Musil

couple of side. bucks improvement or a range yourself a what discussed It’s about million XXXX. plus we and minus where either changed our on on prior $XX million leasing capital commission That from of for is we’ve think hasn’t that give calls TI’s

Michael Mueller

Got it.

you. thank Okay,

Operator

next comes Jeffries. John Your question with from Peterson

open. is line Your

John Peterson

e-commerce in Yes, on touch let a get me little bit.

space. I’m of a it? industrial e-commerce first online that seen And looked kind business more color focusing the – maybe portfolio accelerating we’ve people versus aggressive then at ground like a a And guys SPO their advantage take hearing specifically, on has little about talked just We’re the what Walmart openings, on today? in warehouse of curious of it. are think be seeing brick-and-mortar. positioned is been lot lot you how more from on to Amazon then the you

Peter Baccile

Peter. this is John, Hey

e-commerce markets. seeing also we’ve very we’re beverage, correct, lot demand we’re to now play three seeing with and players, logistics broad-based com of on and products to about seeing continue consumer to And demand we’re be across apparel, that country. pretty companies, Amazon parcel and talked as down them the food carriers, a pure Same includes automotive PL continuing we’re we calls saying you in broad-based the and we’re many the Walmart. So see some seems seeing line. on and are see seeing accelerating but their we’re growth the

markets, tenants those the that it to particularly of So see a we continues to high broad-based in continue in, from interest of markets. variety and developing in be pretty levels we’re

California want Pennsylvania, that? think, do as Southern Jojo think you So I to prime add examples, to two

Jojo Yap

breath centers yes, gave type the use thing is for is because products. for for good heavy fulfillment get pretty bodes is facilities to really One peter, that that add Fulfillment e-commerce. sortable nonsortable want e-commerce goods of well of of are a type the just broad the type I Sure, build centers customers of products facility being the us, and businesses too. there

satisfying just last got really seen and of different got delivery a you where third a delivery of a what’s You almost returning stations, leg returned being facility. to needs the the half to that’s stations be delivery being like centers

that all if buildings So and that subset then wanted you That’s add of the a to can and fulfill. I type all to add. that what owner like of add of about us lot of demand. Peter of developer talked just That’s what basically has the you industrial

John Peterson

Great, Thank that’s me. all from you.

Operator

[Operator Instructions] Green Frankel Advisors. comes Street Eric Your next question with from

line open. Your is

Eric Frankel

thoughts now? Can development values you where you guys on at Thank change on whether And of you. share cap? your are

Peter Baccile

cap changes. market we’ve but we’ll the today level through with you and discuss of discussing Certainly, opportunities the have we of the the board and is the available about million place. of cap that. capacity $XXX the let part conversation, know are and $XX in today under evaluating XXX consistently And limit the as risk that it’s self-imposed profile So million, we that company that

Eric Frankel

for for would larger guess pretty them terms platform. some are what be to of of your you ever decent. What are appetite to a and varying guys portfolios? take be seem in to market thoughts seems related that There those the level buying kind U.S. it but in extend quality I of consider Okay. of have you some the your coming industrial are to portfolio in couple cap

Peter Baccile

I think would we to basis. expect if regular you assets intend they to a market as on evaluate come certainly

but come. as to I on there, it’s add us we’re we’ll that unappropriate and be – to going think shareholder be might offerings and evaluating any it be particular certainly to as value be looking such, would speculate offerings ways for they out unnecessary for always

Eric Frankel

Okay, thank you.

Operator

James. Bill Crow from is Raymond question next Your with

Bill Crow

if you capital over your curious the past just buildings could was into tenants years. the change few that are I the quantify putting is, really question in the amount The of

Some of the exit into view way money base? your as a not a we're create there quantify that? And systems, what with is and to barrier but to putting you more tenant the does e-commerce from evolution more

Peter Schultz

an Sure examples automated. Peter we in by would metro we've is outfitted Certainly long-term Bill the in in the is hospital building that UPS couple and markets. Schultz. couple systems other York cost to New years, last to their in just in the couple deals in A they of tenant with an Jersey tenants be of bought increase seen it’s spaces Owens particular have And CapEx automation. minor, did with The New heavily around a we which ours the spend building automation the of service existing least heavily at area. the

So gets we're particularly labor more seeing that as tighter. more and

see that. that tenants we You're But what that stickier certainly seeing to it's because the would are, it a continue operate certainly makes trend. our to hard I of that But like all companies we assets. automate the as on but say dollars quantify a and more requires to labor caliber different

Bill Crow

Okay. Alright, thanks.

Operator

to Facinelli. at no back call like the questions are to turn so There question. Peter have I one do more further Actually over we this time

Trust. So with the from question is Stephen next Kim Sun

Your line is open.

Ki Bin Kim

Ki is Bin. This [Indiscernible]

Peter Baccile

it He Ki Bin was you. I figured

Ki Bin Kim

on names calls. these many by go conference I

rent just seen here. there. know next year? growth. you any lease do couple I price year? guess, thunder ones market Just is your What this thoughts but well see And probably I your of rent you growth quick from what curious have not stealing – And Day, have if for a Its what some forecast you will Investor market

Peter Baccile

rent growth. Market

Scott Musil

to know. markets. still even of high mean number And – market below in we seeing a say I and growth markets Ki occupancy you're have there But power happen on feeling may see market a lot There before by for years to demand we before here mean market. Supply some be pricing significant don't get Bin, to portfolio. whenever exceed be amount landlords have a a will has by expect back seeing market guidance by rent fundamentals. multiple X% have varies growth. by market have XX% I we that like you are It to as in be X%, that. don't all our to we to – to you us. mean has there where that I the positive is give rent it We're continue has a And our given I be that vacancy. mean to

we competing market-by-market. really what overall wrangled market vary good guidance you will Fundamentals for mean looks there out on growth. I So exactly cannot it give

Peter Baccile

unavailable, of don’t growth. going if into lot you blocks pretty translate Peg out any continuous a a there. is have than space don't landlord significant better good That's a of obviously that’s thing ball number your that you're crystal anybody tenants to a options. Large just have that's

Ki Bin Kim

for terms Where income rate share? compare are that dividend how taxable to does like your And now? your trending in you right of

Scott Musil

look good quarter for at the XXXX good is those been of But to first in still $XX is months. keep Fourth When we the use first XXXX taxable sale. can do nine exchanges. wild big again big million job exchanges a gains offset again doing wildcard on mind on we’re we that's tax you sales the We've The can XXXX three the NOLs quarters gains. pretty it income. gains that shape on we in have doing card

to those ability manage taxable to income. the have we So us use help

Ki Bin Kim

Okay thank you.

Operator

That’s today. the for last question

the So call I’ll turn Peter back Baccile. to

Peter Baccile

and seeing of today. thank you Investor forward Again to for for Conference. we in participating for Thank NAREIT the on And many look you Dallas call in operator. Day all York New you our

feel As to follow-up with free any out always please to questions. or reach Art Scott, me

Art Hartmon

you. Thank

Operator

call. conference today's concludes This

You disconnect. may now

First Industrial Realty Trust (FR) 26 Oct 172017 Q3 Earnings call transcript