First Industrial Realty Trust, Inc. (FR)

RCMP Presentation 3.9.06

Kristoffer Inton

Our Position Purchased on Dec 10, 1999

500 shares for 24.625 and 500 shares for 24.75 Original Book Value of $24,687.50 Cost of holding adjusted every year for dividends

Currently hold 1,018.28 shares currently at $39.29 with a listed book value of $20,154.16 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

R&D Flex18%

Bulk Warehouse

19%

Regional Warehouse

11%

Manufacturing3%

Light Industrial49%

*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 ComparisonFR CNT EGP HIW Industry

Market Cap: 1.70B 2.43B 1.00B 1.74B 2.43B

Employ ees: 353 106 58 553 353

Qtrly Rev Growth (yoy): 34.80% 32.90% 9.60% N/A 8.90%

Revenue (ttm): 372.31M 217.86M 126.51M 474.61M 220.25M

Gross Margin (ttm): 63.11% 70.76% 71.79% 64.95% 70.12%

EBITDA (ttm): 154.30M 102.19M 78.87M 236.73M 148.87M

Oper Margins (ttm): 15.99% 23.84% 35.35% 28.89% 30.93%

Net Income (ttm): -41.32M 19.36M 18.41M 12.39M 75.29M

EPS (ttm): 1.801 2.424 0.894 0.536 1.76

P/E (ttm): 21.82 20.62 50.94 60.54 28.77

PEG (5 yr expected): 1.98 2.17 2.37 4.63 2.48

P/S (ttm): 4.56 11.18 7.93 3.67 6.64

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 39.29 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.