First Industrial Realty Trust Reports Fourth Quarter and Full Year 2023 Results
- 58.3% increase in cash rental rates in 2023
- 8.4% growth in Cash Same Store Net Operating Income (SS NOI) for full year 2023
- Leased 100% of the 644,000 square-foot and 50% of the 349,000 square-foot Old Post Road buildings in Baltimore
- Sold seven buildings for $64 million in the fourth quarter
- 2024 NAREIT FFO guidance initiated at a range of $2.54 to $2.64 per share/unit
- First quarter 2024 dividend increased to $0.37 per share, a 15.6% increase
- None.
Insights
The report indicates a significant rise in cash rental rates, with a record annual increase of 58.3% for 2023, which is a substantial figure in the real estate investment trust (REIT) industry. This surge suggests that First Industrial Realty Trust, Inc. is capitalizing on a favorable market condition, likely driven by a combination of limited supply and high demand for logistics space. The successful leasing of large-scale developments, such as the Old Post Road buildings in Baltimore, further underscores the company's strategic positioning in high-demand markets.
Moreover, the sale of several properties totaling $125 million in 2023 and the increase in the dividend rate by 15.6% for Q1 2024, reflect a strong balance sheet and cash flow. This could attract investors seeking income through dividends. However, it's important to consider the payout ratio of approximately 70% of anticipated 2024 Adjusted Funds from Operations (AFFO), which should be sustainable but warrants monitoring for long-term dividend health.
First Industrial's performance metrics, such as the Net Operating Income (NOI) growth of 8.4% for 2023 and the leasing activities, are critical indicators of the firm's operational efficiency and market strength. The company's guidance for 2024, including NAREIT Funds From Operations (FFO) per share/unit, suggests confidence in continued growth and operational success. However, investors should be aware of the factors contributing to FFO, such as non-cash items like depreciation and potential gains or losses on property sales, to understand the underlying operational cash flow.
From a financial standpoint, the absence of debt maturities until 2026, assuming extension options, provides fiscal stability and reduces immediate refinancing risk in a potentially fluctuating interest rate environment. The strategic land acquisitions and development projects indicate a forward-looking approach to growth, but they also carry execution risks that need to be managed effectively.
The robust increase in cash rental rates and the high occupancy levels reported by First Industrial point to a strong industrial real estate sector, particularly in logistics. This sector has seen a surge in demand, partly due to the e-commerce boom. The company's leasing highlights and the strategic sale-leaseback transactions underscore its ability to leverage market trends and optimize its portfolio.
Investors should note the company's use of the NAREIT FFO metric, which is a standardized measure for REITs to assess operating performance, excluding the effects of depreciation and property sales. This metric is crucial for comparing the company's performance against peers. However, the exclusion of certain infrequent items from adjusted FFO, while helpful for a clean comparison of operating performance, can sometimes mask one-off events that might have a material impact on the company's financials.
- Cash Rental Rates Up
58.3% in 2023, Highest Annual Increase in Company History 39% Cash Rental Rate Increase on Leases Signed To-Date Commencing in 2024- Cash Same Store NOI Growth of
8.4% for Full Year 2023 - Leased
100% of the 644,000 Square-Foot and50% of the 349,000 Square-Foot Old Post Road Buildings inBaltimore - Signed 705,000 Square Feet of New Leases for Speculative Developments in the Fourth Quarter 2023 and First Quarter 2024 To-Date Inclusive of Joint Venture
- Sold Seven Buildings for
$64 Million $125 Million - 2024 NAREIT FFO Guidance Initiated at a Range of
$2.54 $2.64 $2.56 $2.66 - Increased First Quarter 2024 Dividend to
$0.37 15.6% Increase
First Industrial's fourth quarter FFO was
"Our team performed well in a challenging economic environment that affected customer demand in 2023 relative to the robust leasing climate post-pandemic," said Peter E. Baccile, president and chief executive officer of First Industrial. "We did an exceptional job of capturing strong rental rate growth on leasing, achieving a new company record for annual cash rental rate growth of
Portfolio Performance
- In service occupancy was
95.5% at the end of the fourth quarter of 2023, compared to95.4% at the end of the third quarter of 2023, and98.8% at the end of the fourth quarter of 2022. End of fourth quarter 2023 occupancy excluding the impact of not fully leased developments placed in service in the third and fourth quarters of 2023 was97.9% . - In the fourth quarter, cash rental rates increased
56.8% . For the full year, cash rental rates increased58.3% , which is the highest annual increase in company history. - The Company has achieved a cash rental rate increase of approximately
39% on leases signed to-date commencing in 2024 reflecting53% of 2024 expirations. - In the fourth quarter, cash basis same store net operating income before termination fees and the income related to insurance claim settlements ("SS NOI") increased
7.2% . For the full year, SS NOI increased8.4% reflecting increases in rental rates on new and renewal leasing, contractual rent escalations, and lower free rent, partially offset by slightly lower average occupancy and an increase in real estate taxes.
Leasing Highlights: Portfolio and Development
During the fourth quarter, the Company:
- Leased
100% of the 644,000 square-foot 500 Old Post Road and50% of the 349,000 square-foot 400 Old Post Road buildings inBaltimore . - Leased 209,000 square feet of its 451,000 square-foot First Park 94 Building D in the
Chicago market. - Leased the remaining 43,000 square feet at the 86,000 square-foot First Loop Logistics Park Building 3 in
Orlando . - Leased
100% of the 37,000 square-foot First 92 inNorthern California .
In the first quarter to-date of 2024, the Company:
- Leased 40,000 square feet of its 200,000 square-foot First 76 Logistics Center in
Denver . The lease is expected to commence in the first quarter of 2024. - Leased
100% of the 376,000 square-foot Building A in its Camelback 303 joint venture inPhoenix to two tenants. The leases are expected to commence in the first and second quarters of 2024.
Investment and Disposition Highlights
In the fourth quarter, the Company:
- Commenced First Pine Hills, a build-to-suit project in
Orlando - 112,000 square feet;$21 million $4 million - Acquired a 69,000 square-foot building in Inland Empire West through a sale-leaseback for
$25 million - Acquired a fully leased 54,000 square-foot building in
Houston for$8 million - Sold seven buildings comprised of 785,000 square feet for a total of
$64 million
For the full year 2023, the Company:
- Acquired five land sites totaling 235 acres for a total of
$68 million $13 million - Acquired four fully leased buildings totaling 156,000 square feet for a total of
$44 million - Sold 11 buildings comprised of 1.0 million square feet and two land sites for a total of
$125 million - Sold 31 acres at its Camelback 303 joint venture in
Phoenix for$50 million $24 million
In the first quarter to-date of 2024, the Company:
- Sold five buildings in
Cincinnati comprised of 278,000 square feet for a total of$33 million
Common Stock Dividend Increased
The board of directors declared a common dividend of
Outlook for 2024
"In 2024, we are working to drive cash flow growth as we further capture strong market rent growth in our leasing efforts. We are also executing on the significant opportunities within our completed and under-construction developments," added Mr. Baccile. "We are well positioned with a strong balance sheet including no debt maturities until 2026 assuming extension options to support current and future growth."
Low End of | High End of | |||
Guidance for 2024 | Guidance for 2024 | |||
(Per share/unit) | (Per share/unit) | |||
Net Income Available to Common Stockholders | $ 1.42 | $ 1.52 | ||
Add: Depreciation and Other Amortization of Real Estate | 1.27 | 1.27 | ||
Less: Gain on Sale of Real Estate, Net of Allocable Income Tax Provision, | (0.15) | (0.15) | ||
NAREIT Funds From Operations (1) | $ 2.54 | $ 2.64 |
(1) 2024 NAREIT FFO per share/unit guidance is impacted by |
The following assumptions were used for guidance:
- Average quarter-end in service occupancy of
96.0% to97.0% . - SS NOI growth on a cash basis before termination fees of
8.0% to9.0% . This range assumes 2024 bad debt expense of$1.0 million $2.9 million - Includes the incremental costs expected in 2024 related to the Company's completed and under construction developments as of December 31, 2023. In total, the Company expects to capitalize
$0.05 - General and administrative expense ("G&A") of
$39.5 million $40.5 million $3.0 million - Guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, or equity issuances post the date of this press release.
Conference Call
First Industrial will host its quarterly conference call on Thursday, February 8, 2024 at 9:00 a.m. CST (10:00 a.m. EST). The conference call may be accessed by dialing (877) 870-4263, passcode "First Industrial". The conference call will also be webcast live on the Investors page of the Company's website at www.firstindustrial.com. The replay will also be available on the website.
The Company's fourth quarter and full year 2023 supplemental information can be viewed at www.firstindustrial.com under the "Investors" tab.
FFO Definition
In accordance with the NAREIT definition of FFO, First Industrial calculates FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate. First Industrial also excludes the same adjustments from its share of net income from an unconsolidated joint venture.
About First Industrial Realty Trust, Inc.
First Industrial Realty Trust, Inc. (NYSE: FR) is a leading
Forward-Looking Statements
This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors that could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the outbreak of COVID-19; our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up schedules; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; technological developments, particularly those affecting supply chains and logistics; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2022, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the SEC. We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC.
A schedule of selected financial information is attached.
FIRST INDUSTRIAL REALTY TRUST, INC. | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | December 31, | December 31, | |||||
2023 | 2022 | 2023 | 2022 | |||||
Statements of Operations and Other Data: | ||||||||
Total Revenues | $ 157,276 | $ 144,614 | $ 614,027 | $ 539,929 | ||||
Property Expenses | (41,157) | (37,613) | (165,655) | (143,663) | ||||
General and Administrative | (9,791) | (8,755) | (37,121) | (33,972) | ||||
Joint Venture Development Services Expense | (977) | (591) | (3,667) | (909) | ||||
Depreciation of Corporate FF&E | (188) | (261) | (853) | (972) | ||||
Depreciation and Other Amortization of Real Estate | (41,255) | (38,447) | (162,098) | (146,448) | ||||
Total Expenses | (93,368) | (85,667) | (369,394) | (325,964) | ||||
Gain on Sale of Real Estate | 48,229 | 44,064 | 95,650 | 128,268 | ||||
Interest Expense | (20,412) | (15,909) | (74,335) | (49,013) | ||||
Amortization of Debt Issuance Costs | (912) | (900) | (3,626) | (3,187) | ||||
Income from Operations Before Equity in Income (Loss) of Joint Venture and Income Tax (Provision) Benefit | $ 90,813 | $ 86,202 | $ 262,322 | $ 290,033 | ||||
Equity in Income (Loss) of Joint Venture | 1,609 | (3,240) | 32,207 | 114,942 | ||||
Income Tax (Provision) Benefit | (733) | 976 | (8,692) | (23,363) | ||||
Net Income | $ 91,689 | $ 83,938 | $ 285,837 | $ 381,612 | ||||
Net Income Attributable to the Noncontrolling Interests | (2,488) | (1,941) | (11,021) | (22,478) | ||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 89,201 | $ 81,997 | $ 274,816 | $ 359,134 | ||||
RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO FFO (c) AND AFFO (c) | ||||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 89,201 | $ 81,997 | $ 274,816 | $ 359,134 | ||||
Depreciation and Other Amortization of Real Estate | 41,255 | 38,447 | 162,098 | 146,448 | ||||
Net Income Attributable to the Noncontrolling Interests | 2,488 | 1,941 | 11,021 | 22,478 | ||||
Gain on Sale of Real Estate | (48,229) | (44,064) | (95,650) | (128,268) | ||||
(Gain) Loss on Sale of Real Estate from Joint Venture (a) | (230) | 3,220 | (28,034) | (115,024) | ||||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (a) | (165) | — | (501) | — | ||||
Income Tax Provision (Benefit) - Allocable to Gain on Sale of Real Estate, Including Joint Venture (b) | 314 | (690) | 7,311 | 23,658 | ||||
Funds From Operations ("FFO") (NAREIT) (c) | $ 84,634 | $ 80,851 | $ 331,061 | $ 308,426 | ||||
Amortization of Equity Based Compensation | 3,827 | 3,145 | 16,673 | 15,722 | ||||
Amortization of Debt Discounts and Hedge Costs | 105 | 105 | 417 | 417 | ||||
Amortization of Debt Issuance Costs | 912 | 900 | 3,626 | 3,187 | ||||
Depreciation of Corporate FF&E | 188 | 261 | 853 | 972 | ||||
Non-incremental Building Improvements | (3,649) | (5,814) | (19,036) | (16,614) | ||||
Non-incremental Leasing Costs | (10,252) | (9,692) | (35,407) | (30,899) | ||||
Capitalized Interest | (2,778) | (3,747) | (13,791) | (16,298) | ||||
Capitalized Overhead | (1,857) | (1,787) | (8,810) | (9,409) | ||||
Straight-Line Rent, Amortization of Above (Below) Market Leases and Lease Inducements | (6,587) | (9,704) | (24,814) | (26,914) | ||||
Adjusted Funds From Operations ("AFFO") (c) | $ 64,543 | $ 54,518 | $ 250,772 | $ 228,590 | ||||
RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO | Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | December 31, | December 31, | |||||
2023 | 2022 | 2023 | 2022 | |||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 89,201 | $ 81,997 | $ 274,816 | $ 359,134 | ||||
Interest Expense | 20,412 | 15,909 | 74,335 | 49,013 | ||||
Depreciation and Other Amortization of Real Estate | 41,255 | 38,447 | 162,098 | 146,448 | ||||
Income Tax Provision (Benefit) - Not Allocable to Gain on Sale of Real Estate (b) | 419 | (286) | 1,381 | (295) | ||||
Net Income Attributable to the Noncontrolling Interests | 2,488 | 1,941 | 11,021 | 22,478 | ||||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (a) | (165) | — | (501) | — | ||||
Amortization of Debt Issuance Costs | 912 | 900 | 3,626 | 3,187 | ||||
Depreciation of Corporate FF&E | 188 | 261 | 853 | 972 | ||||
Gain on Sale of Real Estate | (48,229) | (44,064) | (95,650) | (128,268) | ||||
(Gain) Loss on Sale of Real Estate from Joint Venture (a) | (230) | 3,220 | (28,034) | (115,024) | ||||
Income Tax Provision (Benefit) - Allocable to Gain on Sale of Real Estate, Including Joint Venture (b) | 314 | (690) | 7,311 | 23,658 | ||||
Adjusted EBITDA (c) | $ 106,565 | $ 97,635 | $ 411,256 | $ 361,303 | ||||
General and Administrative | 9,791 | 8,755 | 37,121 | 33,972 | ||||
Equity in FFO from Joint Venture, Net of Noncontrolling Interest (a) | (1,214) | 20 | (3,672) | 82 | ||||
Net Operating Income ("NOI") (c) | $ 115,142 | $ 106,410 | $ 444,705 | $ 395,357 | ||||
Non-Same Store NOI | (15,984) | (13,044) | (53,195) | (32,724) | ||||
Same Store NOI Before Same Store Adjustments (c) | $ 99,158 | $ 93,366 | $ 391,510 | $ 362,633 | ||||
Straight-line Rent | (3,322) | (3,799) | (11,486) | (12,254) | ||||
Above (Below) Market Lease Amortization | (139) | (259) | (1,232) | (1,034) | ||||
Lease Termination Fees | (22) | (42) | (309) | (118) | ||||
Same Store NOI (Cash Basis without Termination Fees) (c) | $ 95,675 | $ 89,266 | $ 378,483 | $ 349,227 | ||||
Weighted Avg. Number of Shares/Units Outstanding - Basic | 134,794 | 134,282 | 134,777 | 134,229 | ||||
Weighted Avg. Number of Shares Outstanding - Basic | 132,304 | 132,137 | 132,264 | 132,024 | ||||
Weighted Avg. Number of Shares/Units Outstanding - Diluted | 135,132 | 134,875 | 135,249 | 134,681 | ||||
Weighted Avg. Number of Shares Outstanding - Diluted | 132,360 | 132,241 | 132,341 | 132,103 | ||||
Per Share/Unit Data: | ||||||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 89,201 | $ 81,997 | $ 274,816 | $ 359,134 | ||||
Less: Allocation to Participating Securities | (58) | (90) | (232) | (348) | ||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders | $ 89,143 | $ 81,907 | $ 274,584 | $ 358,786 | ||||
Basic Per Share | $ 0.67 | $ 0.62 | $ 2.08 | $ 2.72 | ||||
Diluted Per Share | $ 0.67 | $ 0.62 | $ 2.07 | $ 2.72 | ||||
FFO (NAREIT) (c) | $ 84,634 | $ 80,851 | $ 331,061 | $ 308,426 | ||||
Less: Allocation to Participating Securities | (29) | (203) | (648) | (736) | ||||
FFO (NAREIT) Allocable to Common Stockholders and Unitholders | $ 84,605 | $ 80,648 | $ 330,413 | $ 307,690 | ||||
Basic Per Share/Unit | $ 0.63 | $ 0.60 | $ 2.45 | $ 2.29 | ||||
Diluted Per Share/Unit | $ 0.63 | $ 0.60 | $ 2.44 | $ 2.28 | ||||
Common Dividends/Distributions Per Share/Unit | $ 0.320 | $ 0.295 | $ 1.280 | $ 1.180 | ||||
Balance Sheet Data (end of period): | December 31, 2023 | December 31, 2022 | ||
Gross Real Estate Investment | $ 5,714,080 | $ 5,343,039 | ||
Total Assets | 5,175,765 | 4,954,322 | ||
Debt | 2,224,304 | 2,066,301 | ||
Total Liabilities | 2,540,660 | 2,424,023 | ||
Total Equity | 2,635,105 | 2,530,299 |
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | December 31, | December 31, | December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||||
(a) | Equity in Income (Loss) of Joint Venture | ||||||||
Equity in Income (Loss) of Joint Venture per GAAP Statements of Operations | $ 1,609 | $ (3,240) | $ 32,207 | $ 114,942 | |||||
(Gain) Loss on Sale of Real Estate from Joint Venture | (230) | 3,220 | (28,034) | (115,024) | |||||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest | (165) | — | (501) | — | |||||
Equity in FFO from Joint Venture, Net of Noncontrolling Interest | $ 1,214 | $ (20) | $ 3,672 | $ (82) | |||||
(b) | Income Tax (Provision) Benefit | ||||||||
Income Tax (Provision) Benefit per GAAP Statements of Operations | $ (733) | $ 976 | $ (8,692) | $ (23,363) | |||||
Income Tax Provision (Benefit) - Allocable to Gain on Sale of Real Estate, Including Joint Venture | 314 | (690) | 7,311 | 23,658 | |||||
Income Tax (Provision) Benefit - Not Allocable to Gain on Sale of Real Estate | $ (419) | $ 286 | $ (1,381) | $ 295 | |||||
(c) Investors in, and analysts following, the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), adjusted EBITDA and adjusted funds from operations ("AFFO"), variously defined below, as supplemental performance measures. While we believe net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, as defined by GAAP, is the most appropriate measure, we consider FFO, NOI, adjusted EBITDA and AFFO, given their wide use by, and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, FFO, NOI, adjusted EBITDA and AFFO are commonly used in various ratios, pricing multiples/yields and returns and valuation calculations used to measure financial position, performance and value.
In accordance with the NAREIT definition of FFO, we calculate FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate. We also exclude the same adjustments from our share of net income from an unconsolidated joint venture.
NOI is defined as our revenues, minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses.
Adjusted EBITDA is defined as NOI minus general and administrative expenses and the equity in FFO from our investment in joint venture.
AFFO is defined as adjusted EBITDA minus interest expense, minus capitalized interest and overhead, plus amortization of debt discounts and hedge costs, minus straight-line rent, amortization of above (below) market leases and lease inducements, minus provision for income taxes or plus benefit for income taxes not allocable to gain on sale of real estate, plus amortization of equity based compensation and minus non-incremental capital expenditures. Non-incremental capital expenditures refer to building improvements and leasing costs required to maintain current revenues plus tenant improvements amortized back to the tenant over the lease term. Excluded are first generation leasing costs, capital expenditures underwritten at acquisition and development/redevelopment costs.
FFO, NOI, adjusted EBITDA and AFFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. FFO, NOI, adjusted EBITDA and AFFO should not be considered substitutes for net income available to common stockholders and participating securities (calculated in accordance with GAAP) as a measure of results of operations, cash flows (calculated in accordance with GAAP) or as a measure of liquidity. FFO, NOI, adjusted EBITDA and AFFO as currently calculated by us may not be comparable to similarly titled, but variously calculated, measures of other REITs.
We consider cash-basis same store NOI ("SS NOI") to be a useful supplemental measure of our operating performance. Same store properties include all properties owned prior to January 1, 2022 and held as an in service property through the end of the current reporting period (including certain income-producing land parcels), and developments and redevelopments that were placed in service prior to January 1, 2022 (the "Same Store Pool"). Properties which are at least
We define SS NOI as NOI, less NOI of properties not in the Same Store Pool, less the impact of straight-line rent, the amortization of above (below) market rent and the impact of lease termination fees. Same Store revenues for the three and twelve months ended December 31, 2022 exclude
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SOURCE First Industrial Realty Trust, Inc.
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