First Industrial Realty Trust, Inc. (FR) RCMP Presentation Kristoffer Inton

Our Position  Purchased on Dec 10, shares for and 500 shares for Original Book Value of $24, Cost of holding adjusted every year for dividends  Currently hold 1, shares currently at $39.29 with a listed book value of $20, Unrealized gain of $19,848 (98.48%)

Company History  Shidler Group founded in 1972 Midwest operations would become First Industrial, formed in 1993 and IPO in June 1994  Co-founded by former Shindler Group- Michael Brennan (CEO), Michael Havala (CFO), Johannson Yap (CIO)  Focus on acquiring land and property that local managers can create value with

Company Information  Chicago, Illinois-based real estate investment trust (REIT) focused on industrial properties  Not subject to federal income tax, but must distribute 90% of taxable income to shareholders  Lease, develop, redevelop, buy, sell, and manage industrial facilities in the top 25 U.S. industrial markets

The Economy  Controlled by general economic factors, highly dependent on industrial output  Rising fuel costs not a direct factor, but higher costs for manufacturers not good for industrial REITs  Expected continued economic growth and increased demand for space to increase

The Industry  Disparity between public and private market for real estate  Trend for privatization of industrial REITs (5 this year alone) Private investors willing to pay a premium over public investors in order to acquire real estate assets in bulk  Expected industry total return of 10% in 2006

The Business  Largest national provider of diversified industrial real estate  845 Properties owned with 2,500 tenants  <1% revenue comes from largest customer  Occupancy rates are up, but well below historical averages *from 2004 Annual Report

The Strategy  I-N-D-L platform Industrial focus National scope Diverse facility types Local management and expertise  STP investment process Seller-> find opportunity to buy under-value Transaction-> complex transactions that reduces competing buyers Property-> property that have greatest upside in hands of experience and expertise  Disciplined risk management Diversified portfolio Methodical investment/divestment process Strong balance sheet Local managers attentive to risk

Competitive Advantage  High-quality customer service  90% of tenants would recommend FR  2 Hour Rule  Flexibility to adapt products to customer needs- “All things industrial.”  Local management  High local expertise, quick response  Solid balance sheet and strong financial position  98% of properties unencumbered by mortgages

Company Comparison FRCNTEGPHIWIndustry Market Cap:1.70B2.43B1.00B1.74B2.43B Employ­ees: Qtrly Rev Growth (yoy):34.80%32.90%9.60%N/A8.90% Revenue (ttm):372.31M217.86M126.51M474.61M220.25M Gross Margin (ttm):63.11%70.76%71.79%64.95%70.12% EBITDA (ttm):154.30M102.19M78.87M236.73M148.87M Oper Margins (ttm):15.99%23.84%35.35%28.89%30.93% Net Income (ttm):-41.32M19.36M18.41M12.39M75.29M EPS (ttm): P/E (ttm): PEG (5 yr expected): P/S (ttm):

Stock performance (1 year trailing)

Stock performance (5 year vs. S&P)

Stock performance

Dividends  Since the purchase of the stock, dividends have been paid every quarter and have been increased 5 times  Currently paying $0.70 per share every quarter

Financial Analysis  Business is directly related to growth in the balance sheet, particularly Net Investments in Real Estate  Expense growth outpaces revenue growth  Grew balance sheet at historical rates  Grew income statement in proportion to Net Investments in Real Estate

Financial Projections  With sustainable growth at 4% and WACC at 6.5%, the DCF values the stock between $39.38-$48.13  Performance suggests management would be able to support continued dividend growth  2006 EPS Forecast of $2.22 is within management guidance of $2.10-$2.30

Multiples Analysis  FFO/Share multiples based on three competitors and peer average: 16.99x  FR’s implied FFO/Share based on FFO and share price- 8.71x  FR price using calculated peer multiple- $75.13  First Industrial is valued at a discount versus its competitors

Recommendation: Hold  DCF suggests price range $39.38-$48.13 vs. current price of  FFO/Price multiple suggests that the stock is trading at a large discount in comparison to its peers  Although not the best performing company, it has provided consistent and growing dividends. I believe that FR’s skilled management and quality business strategy will continue to improve performance.