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First Industrial Realty Trust Inc. Reports Operating Results (10-Q)

November 04, 2010 | About:
10qk

10qk

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First Industrial Realty Trust Inc. (FR) filed Quarterly Report for the period ended 2010-09-30.

First Industrial Realty Trust Inc. has a market cap of $469.6 million; its shares were traded at around $7.65 with a P/E ratio of 3.6 and P/S ratio of 1.1. FR is in the portfolios of Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Murray Stahl of Horizon Asset Management, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Our net loss available to First Industrial Realty Trust, Inc.s common stockholders and participating securities was $(194.7) million and $(25.1) million for the nine months ended September 30, 2010 and September 30, 2009, respectively. Basic and diluted net loss available to First Industrial Realty Trust, Inc.s common stockholders were $(3.11) per share and $(0.56) per share for the nine months ended September 30, 2010 and September 30, 2009, respectively.

Revenues from same store properties decreased $5.3 million due primarily to a decrease in occupancy. Revenues from acquired properties increased $0.6 million due to the three industrial properties acquired subsequent to December 31, 2008 totaling approximately 0.5 million square feet of GLA. Revenues from sold properties

decreased $5.5 million due to the 24 industrial properties and one leased land parcel sold subsequent to December 31, 2008, totaling approximately 2.7 million square feet of GLA. Revenues from (re)developments and land increased $1.9 million primarily due to an increase in occupancy. Other revenues decreased $6.4 million due primarily to a decrease in fees earned from our Joint Ventures. Construction revenues decreased $52.2 million primarily due to the substantial completion prior to December 31, 2009 of certain development projects for which we were acting in the capacity of development manager.

Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties decreased $2.2 million due primarily to a decrease in bad debt expense. Property expenses from acquired properties increased $0.1 million due to properties acquired subsequent to December 31, 2008. Property expenses from sold properties decreased $1.7 million due to properties sold subsequent to December 31, 2008. Property expenses from (re)developments and land remained relatively unchanged. The $1.6 million decrease in other expense is primarily attributable to a decrease in compensation. Construction expenses decreased $50.1 million primarily due to the substantial completion prior to December 31, 2009 of certain development projects for which we were acting in the capacity of development manager.

For the nine months ended September 30, 2010, we recognized $1.5 million in restructuring charges to provide for employee severance and benefits ($0.8 million), costs associated with the termination of certain office leases ($0.2 million) and other costs ($0.5 million) associated with implementing our restructuring plan. Due to the timing of certain related expenses, we expect to record a total of approximately $1.7 million of additional restructuring charges in subsequent quarters. For the nine months ended September 30, 2009, we incurred $6.2 million in restructuring charges related to employee severance and benefits ($5.3 million), costs associated with the termination of certain office leases ($0.4 million) and other costs ($0.5 million) associated with implementing the restructuring plan.

impairment loss in the amount of $9.2 million on one property in Grand Rapids, Michigan. See Note 3 to the Consolidated Financial Statements. During the nine months ended September 30, 2009, we recorded an impairment loss in the amount of $6.9 million on one industrial property in the Inland Empire market in California as a result of adverse conditions in the credit and real estate markets ($1.3 million of this impairment loss is included in discontinued operations for the nine months ended September 30, 2009 because a portion of the industrial property is classified as held for sale at September 30, 2010). We expect to recognize an additional impairment of approximately $14 million during the three months ended December 31, 2010 related to a pool of industrial properties and land parcels that will qualify as held for sale during the 4th quarter. Additional impairments may be necessary in the future in the event that market conditions continue to deteriorate and impact the factors used to estimate fair value or in the event that we change our intent to hold a property.

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