FR - Earnings call transcript Q3 2018 | First Industrial Realty Trust, Inc.

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Operator

Good morning. My name is Jason, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Industrial Third Quarter Results Conference 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. Instructions]. [Operator you. Thank like now call to over I to Mr. would turn President Art of Vice Relations. Investor Harmon, may you conference. Sir, your begin

Art Harmon

Thanks, Jason. Hello, everybody, and welcome to our call.

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

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

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

let over me Peter. Now, turn call the to

Peter Baccile

morning, good Thank everyone. and you, Art,

up firm Cash provide metrics team, for grew our finish XX another These X.X% to our same-store others and basis rate strong by drove growth occupancy XX.X%. foundation excellent rental and a rates cash estate XXXX. rental at quarter performance strong in a grew overall at NOI the continued were and industrial We X%. Continued portfolio the real quarter. market points

date. of We at past, next this the know cash you increase is only approximately already rollovers our of XXXX of in you point a XX.X%. leases data signed rents a done of year’s but give budgeting useful me role roll, give phases fourth snapshot a We’ve portion on let the to inked we’ve As We XX% a that be this of XXXX picture on were point quarter at we’ll updated call it’s year an and for time. to directionally, able process for our in February. full you in the our early to in

Fluctuations Moving have in rightly and direction economy. concerns picture. the trade market, the the about on many over the to and increase stock bigger of in interest wondering the tariffs, rates

high strong to consistent is chain economy investing near consumer U.S. is record and see third or preliminary, clinometric From consumption. driving the accommodate wage some with we CBRE, growth report that growth. future However, continue our is to our confidence, with GDP growth, in their view. and advisors, viewpoint, tenants this quarter and solid unemployment record a strong labor market real supply

up New additions demand tenant markets. to supply are most not in with keeping

Third XXX square compared quarter square feet. net completions million million of net million was square completions with feet XXX absorption year-to-date was and million XX feet at absorption to XX

continue to tenants their limited space the industrial for of grow alternatives seen their this first year, while months So, businesses for we’ve nine facing needs.

advantage We cash taking growth. NAV are this drive flow dynamic to and of strong

turn Let’s leasing. development to

Logistics. @ were First we Phoenix square at successful XPO basis leasing PV-XXX our long-term footer in to quarter, a third the XXX,XXX Park on During in

was will commence building X.X%. fourth that during investment The quarter time. was the also lease service and the and will our $XX.X at be in placed total Our million yield cash

the third to bring placed square Phoenix and additional we the is during quarter, currently occupied. XX,XXX square in call, XX,XXX $XXX September leased At discussed group XXX,XXX These development on the an XX% feet The As third totaling it investment for during XXX,XXX The service to cash million that the XX, footer footer Inland Southern square at fourth the with least footer three at totaling square the Industrial We had feet. last XX% we Ranch by during projects buildings and this in California, our project expected X.X%. yield First Empire million Total will be completed Chicago the in leased. of in then placed commence well. as and will quarter X.X service square are quarter.

Perry Aurora our million square during is starts Inland As in buildings four Total East, the totaling our feet. Center investment last of million at These our we new in Center discussed had Logistics First stabilized were Dallas, yield Denver, Seattle. Park is X.X third for XXX quarter First First on targeted Logistics X.X%. $XX.X and estimated call, Glacier Commerce these in the Center Empire comprised and in cash we First

three three total purchase cash In square intend parcel. land Houston. feet First on we’re investments at at XXX,XXX $XXX adjacent which continued Inland X.X allocation $XX.X under Road XXth the square cash on XXX Moreno The Empire XXX,XXX projects Nandina Guhn had similar acres we which to and X.X Nandina development build building development price near our on California, to and will purchase of with up targeted our $X.X building X%. investment to $XX.X with The of New Jersey by an successful a Exit the leased quarter total site in and XXX% a @ building in First X.X%. tenants on Valley. fourth million price in in third square an wrapping Turnpike a million to five yield our million of build of support building closing footer the million several September quarter, our for pipeline million. of a stabilized for of speculative acquisition X in-place construction in for of of and quarter yield total two have feet the total, construction We fourth We entitlements. sites project is square was Southern combined with the footer I-XX/XX in a two Logistics we the Center In totaling for site adjacent In right million the a @ Pennsylvania First First foot we in namely development are working of square XXX,XXX developments we other closed the to-date, the

work permitting in finishing to early We’re part and start expect that some of development and design the XXXX.

additional Including fourth Moving year-to-date. have New on square three we’d $XX.X we’ve quarter sales. of the successful in quarter with foot we’ve fourth buildings which parcels. four completed quarter building had sale, to sales million, We in and had In this Jersey $X.X million. million XX,XXX dispositions a included to-date, totaling $XXX for one Southern sale – land

that our guidance expect range. the and top for $XXX to was original million call, or to $XXX noted last at year our end the million be in above As we now of

in overall both do which and earlier Kmart filed to being tenants we month. The received not mainly these Phoenix XXX,XXX in leases picture leased Tire not rent XXX,XXX October American that feet some of both I we and of Orlando. XXX,XXX Sears we as demand basis Salt While XX square exposure feet call; the Chapter in building with its two Mattress Lake our square Distribution, Distribution, most would only for is note remiss leases XX documented not leased third any points these Mattress be and to of We’ve acknowledging and net square Tire we any retailers. formal by have lease City recent quarter to rent. have represents and In and of visible feet notice at the our Firm spaces rejection. received both bankruptcy subsidiary. firms this Firm good, faced by challenges them. do have American well with And We this We total

and to or these them rental necessary re-tenant both We’re positioning but ability at higher monitoring the situations, long-term our good rates. closely about similar feel if of buildings

for know additional all So, an successful my teammates some that, through finishing thanks and walk our details quarter Scott excellent And share the guidance. a I putting on quarter. country the touches and the growth will on to opportunities our for XXXX. with you you my enthusiasm around

Scott Musil

funds third per year the In $X.XX share from Peter. fully diluted $X.XX one in to share, $X.XX were diluted versus operations per XXXX. $X.XX Thanks, was XQ compared ago. EPS NAREIT quarter,

$X.XX per per approximately protection the agreements. in share $X.XX $X.XX Excluding sales, rate interest gain quarter of was of compares excluding mark-to-market This FFO land the XXXX share. from XXXX XQ FFO with third

with fees in a rental and in noted, XQ by peter and and increase the fees, average our taxes feet XXXX third overall X.X%, preferred free X% term drew compared years X.X feet occupancy and for up the were adjusted weighted XX that basis, basis estate XX.X%. regarding rates and square of up times was net new cash footage quarter. that of rental and leasing As excluding were quarter new higher feet quickly renewals Cash balance X.XX%. from commenced and XX.X%. was six a XX.X% sheet acquisitions. On for were were a X.X%. including moving by new rate XX, was totaled we average points a cash metrics. renewals up leasing maturity development rates NOI occupancy, XX.X%, X% NOI results on on the lower helped XXX,XXX points secured These these were with fees leasing a with at was X.X%. ago. square same-store from up square points bumps EBITDA leasing year our interest overall Tenant ago. prior square of increasing debt leases from financings line of of weighted onto rent. average leases, figures $XX,XXX ago during quarter, a XX up of the X.X XX.X% stock unsecured up XXX and facility. these, end September same-store the rent renewals rental real and basis million XXX,XXX year These Recall was landlord credit notes, the to year growth basis Same-store our had were quarter. retention our driven termination XXX,XXX exclude a by negatively basis tax rates loans long-term impacted few Results also approximately to volume plus up lower is and growth straight termination at

XXXX on release to updated our guidance moving Now our press evening. last for

per $X.XX at the call. the midpoint Our $X.XX now increase quarter $X.XX of an second the tightening to and NAREIT to compared range FFO share, guidance up is

land to of X%. our occupancy range. midpoint. growth with an up to XX%, basis recognized share the change basis points charge ending assumptions same-store sales, of for per driven quarter third approximately to for points the as to $X.XX the to XX occupancy gain in-service of NOI an increase which the and quarter X.X% fourth third the XX severance guidance from on the implies the results. are in-service of tightening midpoint in FFO an at full X.X%, is X.X% implies NOI key quarterly follows: impairment and This and first XX.X% basis XX% the at a The cash year, quarter to the of quarter, XX.X% quarter, quarter-end no Excluding $X.XX range midpoint, by for a of the same-store average Fourth increase guidance

we guidance This range million in excludes to first interest range capitalize our completed year per quarter. September $X.XX million, of Our an about the in $XX.X related G&A in construction includes $X.X XXXX, full XX. to to for $XX.X million million our recognized costs performance-based anticipated of increase an the developments the increase related $X.X developments. to total, charge, the and related is costs. our XXXX at expected Guidance share severance at under now the expect midpoint to compensation

Our of future the impact to does of to debt issuances, of future call any guidance damaged impact final not or this development repayments, related sales or debt not any from gains the earnings acquisitions future settlement reflect repurchases after The properties. starts. reflect impact any insurance guidance claims does new the or

also and the Peter. over guidance me With future the potential equity. to of impairments turn or any losses, issuance NAREIT-compliant Finally, it back excludes that, of let gains impact

Peter Baccile

Thanks, Scott.

our and are a excellent delivering environment. market Our team strong portfolio results in

our investments, consumption an flow tenants. the The and all-time second of growth new and reached strong, allowing which $XX.X economy quarter. long-term serve our is needs us drive are the growing cash to of wages NAV high logistics excited trillion while in We’re development will about

more With the of in and ongoing secular e-commerce, consumed what our is moving shift through demand is more facilities. from

operator, trend growth that, please and to for questions? expect We forward driving of value. up to this new With advantage open and look continue opportunities shareholder you it taking would to

Operator

the line from [Operator Instructions]. And your from first comes Mailman question KeyBanc Markets. Craig of Capital

Craig Mailman

Peter, maybe just year’s in you Thank comment role to that back going guys. in already the next your bag. XX%

most in early to kind you approach curious already how markets where, Just said, guys as demand. renew of a to supply an even you environment, equilibrium decision at

the a on of trend. in market versus kind bit, where just there it go that runs maybe So, the where letting see mark-to-market bird and could to little ride hand view the

Peter Baccile

from kind not to Well, they’re their roll, do market, and the of all, that first results typically to of tenants pushing we’re in a The lot trying outstanding. value it, this the when so obviously really far the of paying there, to conversation. as leases and a our maximize if team ones conversations, attention results supposed of are is our of out all there’s all inputs, pretty aspects, lease different the

later. kind are on choose we large of of wouldn’t tenant. a term, the So, maximize any part those wouldn’t absolutely concessions up we to maximize is to – timing discussions them have little and really, bit Again, focused to the until rate, trying minimize in we

Craig Mailman

maybe guys it in just XX% American drags kind tire or bag, though near guidance continuing escalators. gave guidance probably same XXXX kind I as we outlook. maybe that fourth And of the I those trends in think from – what are of thoughts aren’t you in sustained would to potential of plus guys mean then for the with guess, you range just kind given for about maybe be know initial next X% higher prevent same-store with relative trajectory exposure, – besides mattress initial quarter but I seems the XXXX of year. on yet, it magnitude store an to the as X% what of should big there that the

Scott Musil

Scott. Craig. It’s Hey

to to count in and growth able same-store next going rates increases year. rental you’re be on mean, for I bumps right. rate You’re rental

what an The our is budget in we’re be XXXX in to rent to guidance we’re quarter what of – that we’re occupancy you going idea and to through call assumptions range two average process other going our that free compared our items our looking also is at XXXX we’ll fourth a are be. and going give

of said, going and these occupancy you tell can increases two to that I So I on rent. like get were definitely free

update We’re and quarter an on our our now process going budget through you give fourth we’ll call.

Craig Mailman

last Jersey develop the So, that the existing New as is asset I land once XX on in. parcel cap, is guess clarification the guys sneak A well? acquisition, one that I or the on one blended you

Peter Schultz

good morning, Craig. Peter Hey, It’s Schultz.

going set next new design, in the call. to So, we’re is and that what the we finishing the as XX do yield on on place be haven’t permitting we’ll existing asset our the is asset in some

Craig Mailman

Great. Thanks guys.

Operator

Instructions]. Janney. question Stevenson [Operator your line And from comes next Rob of from

Rob Stevenson

mounting changes Good morning guys. the Are the there any markets right operating now where dissipating supply, to you’re seeing supply in expect that significant supply fundamentals? XXXX the or you either influence

Jojo Yap

– a way, Sure. Not change. Jojo a change, big not the not it’s big big by

been are big still of this in major the but say lot example, that still earlier If lease change, there’s but there’s would Dallas, I completion. a already you Most South that through. markets’ be broad at, a still continued to most choices year, for have a northeast of cycle tenants and the there some I same. but look tight mean continued a change. number – box. Atlanta, additional markets, had situation in supply, environment, absorptions also to has not continues exceed markets major the of to not absorption remains

Rob Stevenson

that Okay. long changing of in stuff And than of Is the to accounting to a forward? deciding behavior leasing lease? thought they going wind guys result or terms or on anybody changes the change they’re seeing want not leases to of then going you rather own as up any in the you how onboarding whether sign are a lease

Scott Musil

the along probably we no knew and six they looking tenants and last these differences Scott. have any at want haven’t same is the years. to in what five so coming change. This I mean, No were rules lease seen for the People lease been impact. terms,

Rob Stevenson

Thanks guys. appreciate I Okay. it.

Operator

Frankel Eric And your next Street question from Advisors. Green comes of

Eric Frankel

the Is just can range some Scott, your growth that caution share retailers the of regarding fourth the wide for portfolio? you. fairly is these for bankrupt that NOI Thank quarter. rationale you just the in in the same-store outlook a –

Scott Musil

be it’s it leases mean, rent. be alone be to, they The gave November about October could we we that it occupancy expense going as that rejected well. two to a they I range of December, could that impact tenants bad it, Yes, Eric, be debt could pay – store. million but would the referred paid and reason, some and didn’t for for $X.X same be,

So, those be the going to main Eric. are drivers,

Eric Frankel

your touched stock fluctuations that’s and upon I kind in comment equity came to – helpful. then self-fund you potentially touched of Okay, your the Can next your it Thank team the ability you. market to that? year – your your capital. the growth you cost on And of of know

Scott Musil

know, – our Well, a times. you we’re X.X debt-to-EBITDA as is

low. will, opportunities. to the dispose to pretty assets of facility credit our got as past, taking we capital no the growth we We’ve reinvest assets, out growth that’s So in and on of looking done higher in continue have drawings lower and

So, got plenty liquidity. we’ve of

Eric Frankel

And assets issues? taxable would any sales the cause gain

Scott Musil

for you Are Eric? XXXX, talking

Eric Frankel

slow selling yes. a enough Like for… your you Yes, bit asked is

Scott Musil

They still general, you taxable look XXXX. keep back we the I at in gains. this at least, But XXXX had Yes. year, above could. in we still XX, mind; We the successful NOLs doing have excluding dividends in can we income, excess mean, if exchanges. in thing were million we XXXX XX and $XX XXXX. generated do And of that same in very

we taxable So, manage income. lot a to got of tools

Eric Frankel

rules Can when you Thank I you comment that. the those comment. NOLs behind expire? for just that know don’t

Scott Musil

so of we XXXX-XXXX, time. Around plenty got

Eric Frankel

Sure. Yes.

development development of maybe or comments any question, some your Pennsylvania? larger particular first lease final Nandina the on Just of projects, in your

Scott Musil

don’t assets development assets and that yet but a know around to add anything you around recently of assets to want mentioned. activity completed those any of don’t I Pennsylvania continue you or… We color good if report the in lot We Peter, projects. to our all have see on really and

Peter Schultz

Sure. up are I quarter. just and wrapping we say interest; RFPs buildings would see to this both continue to those Eric. that respond just of

forward you we that activity. reporting to calls to look on So, on future

Peter Baccile

on Nandina. Jojo

Jojo Yap

same Yes, here.

We’re today, feet, demand available. you’re looking if to having the towards, inquiries there. one for over yet. supply and abilities, situation X.X only report no tenant We like our the you’re a square anything lease million

Eric Frankel

on space basis? tenants for are a size many that that there looking speculative

Jojo Yap

Yes.

Eric Frankel

you. I Thank That’s Okay. all got.

Operator

comes Silverberg next the Zack from Securities. line of Your from question Mizuho

Zack Silverberg

in are been that see knowledge Thanks as the a that I or the up the X%, do is see around dynamic expected X.X%, new you the starts gain achieving past, X.X number turned to guys. you below achieve market specific market? about you’ve more

Peter Baccile

Jojo respond I’ll question start There no we last can have and four maintain it’s to be as difficult the the achieved margins that well. is years. going that five or over to

know, you points so. north As prevailing points we of XXX kind but believe they’ve above do XXX been to to or of basis continue we basis cap earn XX% rates. can

rising have so you’ll down we a little And And the yields also costs. construction see bit. come

Scott Musil

sure. Sure,

Jojo Yap

Yes.

these trading in In what are addition Seattle, in you force to Class today, and of a high be assets Northeast Empire. Peter A mentioned, market These Inland Denver, to the mentioned force. would which which low Dallas,

but costs offset very say spread, increase we’re Peter with you’re a partially construction absolutely and from very, so competitive prices that, still has seven have reason yeah, that, increased, have you have pleased rental to increased, for also is, has And environment. down land this right. come the and It started

exit. spread XXX our comfortable to We’re on points of XXX can basis meet that we goal still

Zack Silverberg

press, bit headline has guess And see All them? customers Amazon bad I or of they’re privacy too about all are it’s here, any warehouse gotten has with big. you thanks. at risks whether pain, that how data helpful. growing right, workers to Amazon switching or think a gears you that Do their That’s changed lately,

Peter Schultz

No, this is Schultz. Peter

of with about confidentiality. there’s heard on from impact or can’t any We leases obviously have no anybody tight any markets. that the comment seen heard markets. haven’t in buzz, – But there’s them we given in the specific We I’ve the

Scott Musil

expect Amazon significant industry, to add fulfillment shows that’s and growth really we do direct that increase that amount market good I there’s the OmniTown retailers. Amazon that’s again, e-commerce not same in thing, a for only thing want just companies increasing – also of by it’s there new that The there is trying startup, and to any consumers and is that is also our for know the

would which Amazon increase to direct if the business. is business e-commerce, fulfillment our environment basically expect sales is good whole exhaustively we So, a on for was increasing, their

Zack Silverberg

All right. thanks guys.

Operator

of next James. Raymond from your And question comes Bill Crow

Bill Crow

inflation the to morning up the Hey, and your questions, that to follow to come prior has a cost on or one cost guys. four that XX%. discussion somewhere XX% good to increases, of peers week maybe ago so to consistent range first and with saying? five, or construction Two what the mentioned to construct X%, were your develop from Is you that down X% in

Jojo Yap

consumption of bit Okay. the And to on Jojo. the costs and XX% part it cost middle the year-to-date, than to here And markets west markets increased more down have of Basically, from depends our and increased Bill, as coast – this the smaller costs in. little buildings, projects. anywhere have east the buildings the have also on a X% go you the increased. the country. size of

has it the past construction typically, to higher a at the X.X% increased have range. X% to yes, than of So closer rate couple over costs years, been

been has on So, X% we a going market it for depending and inside it’s the to year-to-date, forward, it going yes, think us, XX% will bit, increased. building. but moderate forward,

Bill Crow

overhang – you vacant glooming worried markets. bunch and might that you’re for Great. of fact troubled appreciate to questions other that the you limited Thanks, Jojo. from potentially about a I some any think Are of I you, that and centers Sears have the about my there with outlined and your vacancies? very the how exposure in and markets Kmart Peter, think Firm distribution others, do retailers. Mattress on particular

Peter Baccile

of Kmart, they or competing we’re like familiar what sears – they’re that where assets companies J.C. with locations, call own. typically in we be and not have, would Penney So would with functional we’ve the – many we

in again, have located do Toys category, and we’re the the out they So, are functionality not concerned nor providing they’re that not fall just as and as same the that they about R that facilities of we developing too in Us today. we’re the there terms assets go-forward in

Bill Crow

any opportunity them better assets and yield? acquire Is capture make these there a to functional and

Peter Baccile

them the broken those are be tough to to economics We down, haven’t out. of probably pencil but trades going

Bill Crow

me. you. from All right. Thanks. Got That’s it

Operator

your from comes Kim Instructions]. next Bin [Operator question And SunTrust. of Ki

Ki Bin Kim

Thanks. Good afternoon there. out

So, XXX% your think been overwhelming maybe projects of spec. an majority, if I I have think about your pipeline, development

So, what to or what you’re you is the want it build more about strategy your seeing that spec versus do makes suit?

Peter Baccile

to basically to Well, demand where have the opportunities We belief really belongs strategy both. that our do the size feel particular range. of we will exceed supply on

So, is are build if almost than we see suits. our that time, situation, our what and higher the that all typically happens yields significantly spreads the

choices. So – our when is point and the reason they time tenants fewer at that finish building, have that of

As you have the basically build you typical a building to the the there’s in more and time shop ability all suits, know, nothing have the business. build when wrong suit and build their tenants when suits are with to

return. we’ve risk adjusted And Ohio developing successful very in far to so been

a – to other and – is want do so also a land not big not I big thing have bank. the that And we do add we have

if land you put into we land we service how at put our strategy, and So, done usually we’ve into buy. that look production

that’s don’t big big more aggressive have you we bank, bank. the in land so if have be suits a another thing, you build And and should with land

Ki Bin Kim

to a target projects, or and but land risk wide outer of finding your getting and good of the different maybe you for is be question, from find have a of might how two to development that sites next round more And this to are maybe, industry Okay. development? round next another kind rings core city go or have it spectrum much the out for of tougher you

Peter Baccile

difficult, mean, here. that. is one, is development – mean, I of an of give a of increasing; to investment competitive. the you couple environment course, rental are bit that kind getting very Construction more A Sure. but example. costs comments I Number land because, rates offset

example, go developed starts, we a So that’s we’re East we – Inland much we’re – we Southern were XX,XXX feet. feet building have Empire Glacier. started On First don’t new – further for our developing to have in Kent square XXX,XXX square are Valley, really

of that our remember, So, success developing leasing [ph] that’s and off big just but not large Michele a time box, first of XXX. if you comes First

Now heighted the I-XX most East. corridor Aurora, this XXX building we’re

So, off is fast. is opportunistically last that’s not able growing First where type We need, going Dallas. because the It’s more one we investment market. wherein, in see land is a Dallas, the northeast XXX, a And way definitely of the Part to a there, somewhat site it’s – this last our were buy very infill asset of this it’s of of and of Frisco three the – cities tenants big a in than in multitenant where – box. middle midsize the the rather which in growing is the McKinney, smaller product market building that’s right Flower servicing middle top servicing the one fastest Mound, in we’re Dallas, growing cities the to the and

ground a where trying exceed to continue really supply supply. – to demand be will the guess, there’s where shortage to and a I So, strategy ascertain, you is Ki Bin, I on here really mean the of

Peter Schultz

just And in the small assemblage did California. we

Peter Baccile

Yes.

a five is one two is acres Peter like seller parcels. market before. built two a bought both noted, Just off deals with we and dealing have – land This of just this actually we [ph] each

continued opportunities So, that are in like one-off our success. critical

Peter Schultz

of shop, because volume in of the We we Ki have these XX offices on continue barrier and we’re And kind of Bin, to these, we we growth ground. not center high – core the shop can country a the have we a across generate think that and markets. the profit can and the people been

Peter Baccile

you. Thank Okay.

Operator

from comes next JP of Sarah Morgan. Tan question And your

Sarah Tan

for on morning. I’m Mueller. good Hi, Michael

forward how coming given we yet, plants recycling mentioned development end [indiscernible] but XXXX sales? can think disposition in towards or guidance in year. higher you about going guidance a and the of I haven’t exactly So your terms the of capital know acquisitions guys you

Peter Baccile

right. All

you as development starts So guide of sales. in terms we don’t acquisitions on or know,

let determined going last know We’ll that’s it really But generally look has few is you on haven’t to years. call. speaking, what yet. similar in for the probably volume XXXX what the our next We been going be like to to

Sarah Tan

you. Thank

Operator

Advisors. comes of And question Green Eric Frankel from Street next your

Eric Frankel

Thank you.

specific not automation It Just one warehouses. them. related and a more follow-up. more Amazon, maybe to to quick be features specialized new but was There and lot seems to

by of being Amazon extra lot that and improvements you’re driven mezzanine of? are a of with heights. there’s comment Can by levels aware types So, the particular how you those on ceiling valued it high transactions market if any the

Peter Schultz

Schultz. Eric, bit little might differently. approach this Peter it a is I

power, on we for in more a development think we run we’re that’s design automation or go-forward as for more Jojo buildings, because it’s that features think automation our a more conditioning, add automation and designing important things to about to So, air to to element the today, well. them. cooling, has comment whether and as an probably buildings like of as and accommodate add more and And basis more more

Jojo Yap

in we And terms the XX broad that lot for loading, mezzanines of of building wants to but not of multistory of on want for sure a a design, to the who not there’s that now, XX long-term also long-term, clear build that Sure. a heights, lot and lot based make meds. we tenants,

on a We’re multitenant. ability really designing it tenants, to based to generic broad for the plus be function

that that to we’re So a asset. to we sure have make sticking long-term

surely a three, we’re in appealable a not allocation, we There’s I investors lot terms broad not base. what the tenant comment a of of there’s like can’t based warehouse in multistory out buildings how of trades of five design, But think terms story, that. would to terms that four, on are In so be there value sticking distribution. our Eric,

Eric Frankel

Okay. Thank you.

Operator

from have [indiscernible]. we And [Operator question Instructions] a do

Unidentified Analyst

you’re any your a the to increasing months next shareholder? there to dividend in to common the going be chance is you. that year Yes. Thank six

Peter Baccile

that will conversation the with months. that’s the coming our we in board, review So,

that XXXX. is when We have we But we going really out. what for to figured you determined haven’t dividend yet the let will be know

Unidentified Analyst

you. Thank

Operator

questions in further to turn Baccile. queue. to now like no the I Peter call are over there And would

Peter Baccile

today. participating in Scott you NAV for forward follow-up to all at to couple Francisco and on thank Thank operator, any Conference to you weeks. our feel reach San free of many and we a call of me look in Please seeing out you with questions or

Operator

Ladies and does this gentlemen, call. conference conclude today’s

for Thank participation. disconnect. now may You your you

First Industrial Realty Trust (FR) 25 Oct 182018 Q3 Earnings call transcript