UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

Form 10-K

_______________________________


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2021~~2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-13102 (First Industrial Realty Trust, Inc.)

333-21873 (First Industrial, L.P.)

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FIRST INDUSTRIAL REALTY TRUST, INC.

FIRST INDUSTRIAL, L.P.

(Exact name of Registrant as specified in its Charter)

First Industrial Realty Trust, Inc.

Maryland

36-3935116

First Industrial, L.P.

Delaware

36-3924586

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

1 N.One North Wacker Drive, Suite 4200

Chicago, Illinois, 60606

(Address of principal executive offices, zip code)

(312) 344-4300

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

_______________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

First Industrial Realty Trust, Inc.

Yes

☑

☐

First Industrial, L.P.

Yes

☑

☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

First Industrial Realty Trust, Inc.

Yes

First Industrial, L.P.

Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

First Industrial Realty Trust, Inc.

Yes

First Industrial, L.P.

Yes

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

First Industrial Realty Trust, Inc.

Yes

First Industrial, L.P.

Yes

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

First Industrial Realty Trust, Inc.:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

(Do not check if a smaller reporting company)

Emerging growth company

☐

First Industrial, L.P.:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

(Do not check if a smaller reporting company)

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


First Industrial Realty Trust, Inc.			o
First Industrial, L.P.			o

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.


First Industrial Realty Trust, Inc.			þ
First Industrial, L.P.			þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

First Industrial Realty Trust, Inc.

Yes

☐

First Industrial, L.P.

Yes

☐

The aggregate market value of the voting and non-voting stock held by non-affiliates of First Industrial Realty Trust, Inc. was approximately $6,~~708~~244.62 million based on the closing price on the New York Stock Exchange for such stock on June 30, ~~2021~~2022.

At February 1715, ~~2022~~2023, ~~131~~132,~~781~~211,~~076~~367 shares of First Industrial Realty Trust, Inc.'s Common Stock, $0.01 par value, were outstanding.

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DOCUMENTS INCORPORATED BY REFERENCE

Part III incorporates certain information by reference to First Industrial Realty Trust, Inc.'s definitive proxy statement expected to be filed with the Securities and Exchange Commission no later than 120 days after the end of First Industrial Realty Trust, Inc.'s fiscal year.

EXPLANATORY NOTE

This report combines the Annual Reports on Form 10-K for the period ended December 31, ~~2021~~2022 of First Industrial Realty Trust, Inc., a Maryland corporation (the "Company"), and First Industrial, L.P., a Delaware limited partnership (the "Operating Partnership"). Unless stated otherwise or the context otherwise requires, the terms "we," "our" and "us" refer to the Company and its subsidiaries, including the Operating Partnership and its consolidated subsidiaries.

The Company is a real estate investment trust and the general partner of the Operating Partnership. At December 31, ~~2021~~2022, the Company owned an approximate 97.87% common general partnership interest in the Operating Partnership. The remaining approximate 2.23% common limited partnership interests in the Operating Partnership are owned by limited partners. The limited partners of the Operating Partnership are persons or entities who contributed their direct or indirect interests in properties to the Operating Partnership in exchange for limited partnership interests in the Operating Partnership and recipients of RLP Units (as defined in Note 6 to the Consolidated Financial Statements) of the Operating Partnership pursuant to the Company's Stock Incentive Plan (as defined in Note 11 to the Consolidated Financial Statements). As the sole general partner of the Operating Partnership, the Company exercises exclusive and complete discretion over the Operating Partnership's day-to-day management and control and can cause it to enter into certain major transactions, including acquisitions, dispositions and refinancings. The management of the Company consists of the same members as the management of the Operating Partnership.

The Company and the Operating Partnership are managed and operated as one enterprise. The financial results of the Operating Partnership are consolidated into the financial statements of the Company. The Company has no significant assets other than its investment in the Operating Partnership. Substantially all of the Company's assets are held by, and its operations are conducted through, the Operating Partnership and its subsidiaries. Therefore, the assets and liabilities of the Company and the Operating Partnership are substantially the same.

We believe it is important to understand the differences between the Company and the Operating Partnership in the context of how the Company and the Operating Partnership operate as an interrelated, consolidated company. The main areas of difference between the consolidated financial statements of the Company and those of the Operating Partnership are:

•Equity, Noncontrolling Interest and Partners' Capital. The 2.23% equity interest in the Operating Partnership held by entities or persons other than the Company are classified within partners' capital in the Operating Partnership's financial statements and as a noncontrolling interest in the Company's financial statements.

•Relationship to Other Real Estate Partnerships. The Company's operations are conducted primarily through the Operating Partnership and its subsidiaries, although operations are also conducted through several other limited partnerships, which are referred to as the "Other Real Estate Partnerships." The Operating Partnership is a limited partner, holding at least a 99% interest, and the Company is a general partner, holding at least a .01% general partnership interest through several separate wholly-owned corporations, in each of the Other Real Estate Partnerships. The Other Real Estate Partnerships are variable interest entities that both the Company and the Operating Partnership consolidate. The Company's direct general partnership interest in the Other Real Estate Partnerships is reflected as noncontrolling interest within the Operating Partnership's financial statements.

•Relationship to Service Subsidiary. The Company has a direct wholly-owned subsidiary that does not own any real estate but provides services to various other entities owned by the Company. Since the Operating Partnership does not have an ownership interest in this entity, its operations are reflected in the consolidated results of the Company but not the Operating Partnership. Also, this entity owes certain amounts to the Operating Partnership, for which a receivable is included on the Operating Partnership's balance sheet but is eliminated on the Company's consolidated balance sheet, since both this entity and the Operating Partnership are fully consolidated by the Company.

We believe combining the Company's and Operating Partnership's annual reports into this single report results in the following benefits:

•enhances investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management views and operates the business;

•creates time and cost efficiencies through the preparation of one combined report instead of two separate reports; and

•eliminates duplicative disclosures and provides a more streamlined and readable presentation for our investors to review since a substantial portion of the Company's disclosure applies to both the Company and the Operating Partnership.

To help investors understand the differences between the Company and the Operating Partnership, this report provides the following separate disclosures for each of the Company and the Operating Partnership:

•consolidated financial statements;

•a single set of consolidated notes to such financial statements that includes separate discussions of each entity's equity or partners' capital, as applicable; and

•a combined Management's Discussion and Analysis of Financial Condition and Results of Operations section that includes distinct information related to each entity.

This report also includes separate Part II, Item 9A, Controls and Procedures sections and separate Exhibits 31 and 32 certifications for the Company and the Operating Partnership in order to establish that the requisite certifications have been made and that the Company and the Operating Partnership are both compliant with Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. §1350.

FIRST INDUSTRIAL REALTY TRUST, INC.

FIRST INDUSTRIAL, L.P.

TABLE OF CONTENTS

		Page
PART I.		4
Item 1.	Business	4
Item 1A.	Risk Factors	8
Item 1B.	Unresolved SEC Comments	2021
Item 2.	Properties	2122
Item 3.	Legal Proceedings	2627
Item 4.	Mine Safety Disclosures	2627
PART II.		2728
Item 5.	Market for Registrant's Common Equity / Partners' Capital, Related Stockholder / Unitholder Matters and Issuer Purchases of Equity Securities	2728
Item 6.	[Reserved]	2930
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2930
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	4243
Item 8.	Financial Statements and Supplementary Data	4243
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	4243
Item 9A.	Controls and Procedures	4344
Item 9B.	Other Information	4445
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	4445
PART III.		4546
Item 10.	Directors, Executive Officers and Corporate Governance	4546
Item 11.	Executive Compensation	4546
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	4546
Item 13.	Certain Relationships and Related Transactions and Director Independence	4546
Item 14.	Principal Accountant Fees and Services	4546
PART IV.		4546
Item 15.	Exhibits and Financial Statements and Financial Statement Schedule	4546
Item 16.	Form 10-K Summary	4849
Signatures		~~109~~121

FORWARD-LOOKING STATEMENTS

This report 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 (the "Exchange Act"). 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 which 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;

•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;

•the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the ~~recent~~ outbreak of COVID-19;

•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 in Item 1A, "Risk Factors" and elsewhere in this report 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 Securities and Exchange Commission (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 report. We assume no obligation to update or supplement forward-looking statements.

PART I

THE COMPANY


Item 1.			Business

Background

First Industrial Realty Trust, Inc. is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). As of December 31, ~~2021~~2022, our in-service portfolio consisted of ~~404~~416 industrial properties, containing an aggregate of approximately 6062.79 million square feet of gross leasable area ("GLA") located in 1918 states.

We began operations on July 1, 1994. The Company's operations are conducted primarily through the Operating Partnership, a Delaware limited partnership formed on November 23, 1993 of which the Company is the sole general partner (the "General Partner"), with an approximate 97.87% ownership interest ("General Partner Units") at December 31, ~~2021~~2022. The Operating Partnership also conducts operations through the Other Real Estate Partnerships, numerous limited liability companies ("LLCs") and certain taxable REIT subsidiaries ("TRSs"), the operating data of which, together with that of the Operating Partnership, is consolidated with that of the Company as presented herein. The Company does not have any significant assets or liabilities other than its investment in the Operating Partnership and its 100% ownership interest in the general partners of the Other Real Estate Partnerships. Noncontrolling interest in the Operating Partnership of approximately 2.23% at December 31, ~~2021~~2022, represents the aggregate partnership interest held by the limited partners thereof ("Limited Partner Units" and together with the General Partner Units, the "Units").

We also own an equity ~~interests~~interest in, and provide various services to a joint ~~ventures~~venture (the "Joint ~~Ventures~~Venture"), through a wholly-owned TRS of the Operating Partnership. The Joint ~~Ventures~~Venture, ~~are~~like previous joint venture arrangements, is accounted for under the equity method of accounting. ~~The~~and the operating data ofassociated with the Joint ~~Ventures~~Venture is not consolidated with that of the Company or the Operating Partnership as presented herein. ~~One of the Joint Ventures sold its remaining acres of land and ceased operations during the year ended December 31, 2021.~~

Business Objectives and Growth Plans

Our fundamental business objective is to maximize the total return to the Company's stockholders and the Operating Partnership's partners by increasing our cash flow and property values. Our long-term business growth plans include the following elements:

•Internal Growth. We seek to grow internally by (i) increasing revenues by renewing or re-leasing spaces subject to expiring leases at higher rental levels; (ii) obtaining contractual rent escalations on our long-term leases; (iii) increasing occupancy levels at properties where vacancies exist and maintaining occupancy elsewhere; (iv) controlling and minimizing property operating expenses, general and administrative expenses and releasing costs; and (v) renovating existing properties.

•External Growth. We seek to grow externally through (i) the development of best-in-class industrial properties; (ii) the acquisition of individual or portfolios of industrial properties ~~or individual properties~~ which meet our investment parameters within our 15 target markets with a primary emphasis in coastal markets; (iii) the expansion of our existing properties; and (iv) ~~possible~~securing additional joint venture investments.

•Portfolio Enhancement. We continually seek to upgrade our overall portfolio via new investments as well as through the sale of select assets that we believe do not exhibit favorable characteristics for long-term cash flow growth. We target new investments in 15 target markets where land is more scarce and which exhibit desirable long-term growth characteristics. We seek to refine our portfolio over the coming years by focusing on bulk and regional warehouses properties and downsizing our ~~percentage of~~ light industrial ~~and R&D/flex buildings~~holdings.

Our ability to pursue our long-term growth plans is affected by market conditions and our financial condition and operating capabilities. See "Summary of Significant Transactions in ~~2021~~2022" under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."

Business Strategies

We utilize the following strategies in connection with the operation of our business:

•Organizational Strategy. We implement a decentralized property operations strategy through the deployment of experienced regional management teams and local property managers. We provide acquisition, development and financing assistance, asset management oversight and financial reporting functions from our headquarters in Chicago, Illinois to support our regional operations. We believe the size of our portfolio enables us to realize operating efficiencies by spreading overhead among many properties and by negotiating purchasing discounts.

•Market Strategy. Our market strategy is to concentrate on 15 industrial real estate markets in the United States with a primary emphasis in coastal markets. These markets have one or more of the following characteristics: (i) favorable industrial real estate fundamentals, including improving industrial demand and constrained future supply that can lead to long-term rent growth; (ii) favorable economic and business environments that should benefit from increases in distribution activity driven by growth in global trade and local consumption; (iii) population growth as it generally drives industrial demand; (iv) natural barriers to entry and scarcity of land which are key elements in delivering future rent growth; and (v) sufficient size to provide ample opportunity for growth through incremental investments as well as offer asset liquidity.

•Leasing and Marketing Strategy. We have an operational management strategy designed to enhance tenant satisfaction and portfolio performance. We pursue an active leasing strategy, which includes broadly marketing available space, seeking to renew existing leases at higher rents ~~per square foot~~ while minimizing re-leasing costs and seeking leases which provide for the pass-through of property-related expenses to the tenant. We also have local and national marketing programs which focus on the business and real estate brokerage communities and multi-national tenants.

•Acquisition/Development Strategy. Our investment strategy is primarily focused on developing and acquiring industrial properties in 15 key logistics markets with a coastal orientation in the United States through the deployment of experienced regional management teams. When evaluating potential industrial property acquisitions and developments, we consider such factors as: (i) the geographic area and type of property; (ii) the location, construction quality, functionality, condition and design of the property; (iii) the terms of tenant leases, including the potential for rent increases; (iv) the potential for economic growth and the general business, tax and regulatory environment of the area in which the property is located; (v) the occupancy and demand by tenants for properties of a similar type in the vicinity; (vi) competition from existing properties and the potential for the construction of new properties in the area; (vii) the potential for capital appreciation of the property; (viii) the ability to improve the property's performance through renovation; and (ix) the potential for expansion of the physical layout of the property and/or the number of sites.

•Disposition Strategy. We continually evaluate local market conditions and property-related factors in all of our markets for purposes of identifying assets suitable for disposition. We look to sell properties with lower rent growth prospects and/or assets with less than optimal functionality and redeploy the capital into higher rent growth assets in key logistics markets primarily with a coastal orientation. We also seek to shrink our holdings of light industrial ~~and R&D/flex~~ assets over time.

•Financing Strategy. To finance acquisitions, developments and debt maturities, as market conditions permit, we may utilize a portion of proceeds from property sales, unsecured debt offerings, term loans, mortgage financings and line of credit borrowings under our $750.0 million unsecured revolving credit agreement (the "Unsecured Credit Facility"), and proceeds from the issuance, when and as warranted, of additional equity securities. We also continually evaluate joint venture arrangements as another source of capital to finance acquisitions and developments. As of February 1715, ~~2022~~2023, we had approximately $~~570~~610.31 million available for additional borrowings under the Unsecured Credit Facility.

Competition

In connection with the acquisition of industrial properties and land for development, we compete with other public industrial property sector REITs, income-oriented non-traded REITs, private real estate funds and other real estate investors and developers, some of which have greater financial resources than we do or other competitive advantages relative to us. Such competition may result in an increase in the amount we must pay to acquire a property or may require us to forgo an investment in a property that would otherwise meet our investment criteria. We also face significant competition in leasing available properties to prospective tenants and in re-leasing space to existing tenants. As a result, we may have to provide rent concessions, incur expenses for tenant improvements or offer other inducements to enable us to timely lease vacant space, all of which may have an adverse impact on our results of operations.

Government Regulation

We are subject to laws and regulations of the United States and the states and local municipalities in which we operate, including laws and regulations relating to environmental protection and human health and safety. Compliance with these laws and regulations has not had, and is not expected to have, a material effect on our capital expenditures, results of operations and competitive position as compared to prior periods.

Environmental, Social and Corporate Governance ("ESG")

We are focused on building and maintaining a socially responsible and sustainable business that succeeds by delivering long-term value for our stockholders. We continuously look for new and better ways to minimize our environmental impact as well as that of our tenants. We have an established committee (the "Corporate Responsibility Committee") consisting of members of our team across a range of functions responsible for advising senior management, our Audit Committee and our Board of Directors on various matters related to sustainability, social responsibility and other non-financial issues that are of significance to us and our stockholders.

Because we primarily net lease the properties in our portfolio to our tenants whereby each tenant is ultimately responsible for maintaining the leased property, one of our key corporate responsibility priorities is to engage with and encourage our tenants to implement environmentally sustainable practices, such as the use of energy and water efficient fixtures and recycling programs. Additionally, as we add properties to our portfolio or enhance existing facilities, environmental sustainability is a key consideration of our efforts to improve or develop such properties. We have obtained LEED certification for certain recent development projects and are also pursuing LEED certification for the vast majority of our new development projects through a LEED volume program. We extend the same commitment to environmental excellence to our own offices, promoting sustainable practices and energy efficiency that can both reduce environmental impact and achieve lower operating costs. Our headquarters office in Chicago is an energy-efficient LEED-certified building.

Social responsibility and engagement is an integral part of our business, as we are committed to developing and maintaining strong relationships with our customers, business partners, investors, and the communities in which we operate and invest. In addition, we aim to provide a positive work environment for our employees by offering competitive compensation, quality benefit offerings including health and wellness and retirement plans and financial education, and career training and growth opportunities.

Our governance efforts are led by our Board of Directors, which is elected by our stockholders to oversee their interest in the long-term financial strength and overall success of the Company, exercising its members' business judgment using their collective experience, knowledge and skills. Directors must fulfill their responsibilities as members of the Board of Directors consistent with their fiduciary duty to our stockholders, in compliance with all applicable laws and regulations and our Code of Business Conduct and Ethics. The Board of Directors provides advice and counsel to the Chief Executive Officer and other senior officers of the Company. The Board of Directors ensures that the assets of the Company are properly safeguarded, that appropriate financial and other controls are maintained, and that the Company's business is conducted wisely and in compliance with applicable laws and regulations.

Human Capital

At December 31, ~~2021~~2022, we had ~~162~~157 employees, 99100% of whom are full-time employees. The average tenure of our workforce is approximately 1112 years.

In addition to the sustainability efforts overseen by the Corporate Responsibility Committee, the committee also advises on ways to foster a diverse and inclusive work environment, protect the health and safety of our employees and engage our surrounding communities. We are an equal opportunity employer and, as such, promote an equitable workplace that acknowledges and values differences in race, gender, age, ethnicity, sexual orientation, gender identity, national origin, abilities and religious beliefs. We apply these policies throughout our organization, including at the senior management level and in our composition of our Board of Directors. We believe such diversity of experience and background helps make us strong and achieve our mission to create long-term shareholder value by providing industrial real estate solutions that mutually benefit our customers and our stockholders. ~~The~~Our ~~membership of our~~ Board of Directors is comprised of 43% ~~diverse~~directors bywho ~~gender~~identify ~~and~~as ~~race~~female, people of color or both.

In managing our business, we focus on attracting and retaining employees by providing compensation and benefits packages that are competitive within the applicable market, taking into account the skills required, responsibilities and geographic location. All employees are eligible to participate in one of our incentive plans, under which payments are tied to pre-established performance goals. In addition, we ~~believe~~endeavor ~~that~~to ~~developing~~develop each of our employees’ skillsets and decision-making abilities— through challenging project assignments, formal training, mentorship, and recognition~~—is~~. ~~key~~Taken ~~not~~together, ~~only~~these toefforts ~~our~~promote ~~employees’~~higher ~~performance,~~levels ~~job~~of satisfaction and ~~our~~employee retention ~~efforts~~, ~~but~~while ~~also~~creating toan ~~maintaining~~enhanced ~~a strong~~ leadership pipeline.

Available Information

Our principal executive offices are located at One North Wacker, 42nd Floor, Chicago, Illinois 60606. Our telephone number is (312) 344-4300.

Copies of our respective annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports that we file with the SEC are available without charge as soon as reasonably practicable on our website at www.firstindustrial.com. These documents also may be accessed through the SEC's website at www.sec.gov. In addition, our Corporate Governance Guidelines, Code of Business Conduct and Ethics, charters of each committee of the Board of Directors, along with supplemental financial and operating information prepared by us, are all available without charge on the Company's website or upon request to the Company. Amendments to, or waivers from, our Code of Business Conduct and Ethics that apply to our executive officers or directors will also be posted to our website. The information found on, or otherwise accessible through, our website, is not incorporated into, and does not form a part of, this report or any other report or document we file with or furnish to the SEC.


Item 1A.			Risk Factors

Our operations involve various risks that could adversely affect our business, including our financial condition, our results of operations, our cash flow, our liquidity, our ability to make distributions to holders of the Company's common stock and the Operating Partnership's Units, the market price of the Company's common stock and the market value of the Units. These risks, among others contained in our other filings with the SEC, include:

Risks Related to our Business:

Real estate investments fluctuate in value depending on conditions in the general economy and the real estate industry. These conditions may limit our revenues and available cash.

The factors that affect the value of our real estate and the revenues we derive from our properties include, among other things:

•general economic conditions;

•local, regional, national and international economic conditions and other events and occurrences that affect the markets in which we own properties;

•local conditions such as oversupply or a reduction in demand in an area;

•increasing labor and material costs;

•the ability to collect on a timely basis all rents from tenants;

•changes in tenant operations, real estate needs and credit;

•changes in interest rates and in the availability, cost and terms of mortgage funding;

•zoning or other regulatory restrictions;

•competition from other available real estate;

•operating costs, including maintenance, insurance premiums and real estate taxes; and

•other factors that are beyond our control.

Our investments in real estate assets are concentrated in the industrial sector, and the demand for industrial space in the United States is related to the level of economic output. Accordingly, reduced economic output may lead to lower occupancy rates for our properties. In addition, if any of our tenants experiences a downturn in its business that weakens its financial condition, delays lease commencement, fails to make rental payments when due, becomes insolvent or declares bankruptcy, the result could be a termination of the tenant's lease, which could adversely affect our cash flow from operations. These factors may be amplified by a disruption of financial markets or more general economic conditions.

General economic conditions and other events or occurrences that affect areas in which our properties are geographically concentrated, may impact financial results.

We are exposed to the economic conditions and other events and occurrences in the local, regional and national geographies in which we own properties. Our operating performance is further impacted by the economic conditions of the specific markets in which we have concentrations of properties.

At December 31, 2022, operating properties located in California (Northern California and Southern California markets) and Pennsylvania represented 23.6% and 10.7%, respectively, of our consolidated net operating income for the year ended December 31, 2022. Our revenues from, and the value of, our properties located in California and Pennsylvania may be affected by local real estate conditions (such as an oversupply of or reduced demand for industrial properties) and the local economic climate. Business layoffs, downsizing, industry slowdowns, changing demographics and other factors may adversely impact California’s and Pennsylvania's economic climate. Because of the investments we have located in California and Pennsylvania, a downturn in California’s or Pennsylvania's economy or changes to factors affecting the real estate market, including changes to state income tax and property tax laws, could adversely affect our business.

No other market besides California and Pennsylvania contributed more than 10% of our total consolidated net operating income for the year ended December 31, 2022. Our operating performance could be adversely affected if conditions become less favorable in any of the markets in which we have a concentration of properties. Conditions such as an oversupply of logistics space or a reduction in demand for logistics space, among other factors, may impact operating conditions. Any material oversupply of logistics space or material reduction in demand for logistics space could adversely affect our overall business.

Many real estate costs are fixed, even if income from properties decreases.

Our financial results depend on leasing space to tenants on terms favorable to us. Our income and funds available for distribution to our stockholders and unitholders will decrease if a significant number of our tenants cannot pay their rent or we are unable to lease properties on favorable terms. In addition, if a tenant does not pay its rent, we may not be able to enforce our rights as landlord without delays and we may incur substantial legal costs. Costs associated with real property, such as real estate taxes and maintenance costs, generally are not reduced when circumstances cause a reduction in income from the property. Tenants may declare bankruptcy, resulting in limited remedies and rejection of leases.

We may be unable to renew leases or find other tenants on advantageous terms or at all.

We are subject to the risks that, upon expiration, leases may not be renewed, the space subject to such leases may not be relet or the terms of renewal or reletting, including the cost of required renovations, may be less favorable than the expiring lease terms. If we were unable to promptly renew a significant number of expiring leases or to promptly relet the spaces covered by such leases, or if the rental rates upon renewal or reletting were significantly lower than the current rates, our financial condition, results of operation, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units could be adversely affected.

We may be unable to acquire real estate on advantageous terms or acquisitions may not perform as we expect.

We have routinely acquired real estate from third parties as conditions warrant and, as part of our business, we intend to continue to do so. The acquisition of properties entails various risks, including risks that our investments may not perform as expected and that our cost estimates for bringing an acquired property up to market standards, if necessary, may prove inaccurate. Further, we face significant competition for attractive investment opportunities from other well-capitalized real estate investors, including publicly-traded REITs and private investors. This competition increases as investments in real estate become attractive relative to other forms of investment. As a result of competition, we may be unable to acquire additional real estate and purchase prices may increase. In addition, we expect to finance future acquisitions through a combination of borrowings under the Unsecured Credit Facility, proceeds from equity or debt offerings and debt originations and proceeds from property sales, which may not be available. Any of the above risks could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units.

We may obtain only limited warranties when we purchase a property and would have only limited recourse in the event our due diligence did not identify any issues that lower the value of our property.

The seller of a property often sells such property in its "as is" condition on a "where is" basis and "with all faults," without any warranties of merchantability or fitness for a particular use or purpose. In addition, purchase agreements may contain only limited warranties, representations and indemnifications that will only survive for a limited period after the closing. The purchase of properties with limited warranties increases the risk that we may lose some or all of our invested capital in the property as well as the loss of rental income from that property.

We may be unable to sell properties when appropriate or at all because real estate investments are not as liquid as certain other types of assets.

Real estate investments generally cannot be sold quickly, which could limit our ability to adjust our property portfolio in response to changes in economic conditions or in the performance of the portfolio. This could adversely affect our financial condition and our ability to service debt and make distributions to our stockholders and unitholders. In addition, like other companies qualifying as REITs under the Code, our ability to sell assets may be restricted by tax laws that potentially result in punitive taxation on asset sales that fail to meet certain safe harbor rules or other criteria established under case law.

We may be unable to sell properties on advantageous terms.

We have routinely sold properties to third parties as conditions warrant and, as part of our business, we intend to continue to do so. However, our ability to sell properties on advantageous terms depends on factors beyond our control, including competition from other sellers and the availability of attractive financing for potential buyers. If we are unable to sell properties on favorable terms or to redeploy the proceeds in accordance with our business strategy, then our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units could be adversely affected. Further, if we sell properties by providing financing to purchasers, defaults by the purchasers would adversely affect our operations and financial condition.

We may be unable to complete development and re-development projects on advantageous terms.

As part of our business, we develop new properties and re-develop existing properties as conditions warrant. This part of our business involves significant risks, including the following:

•we may not be able to obtain financing for these projects on favorable terms;

•we may have delays in obtaining construction materials and may be subject to increases in costs of materials;

•we may not complete construction on schedule or within budget;

•we may not be able to obtain, or may experience delays in obtaining, all necessary zoning, land-use, building, occupancy and other governmental permits and authorizations;

•contractor and subcontractor disputes, strikes, labor disputes or supply chain disruptions may occur; and

•properties may perform below anticipated levels, producing cash flow below budgeted amounts, which may result in us paying too much for a property, cause the property to not be profitable and limit our ability to sell such properties to third parties.

To the extent these risks result in increased debt service expense, construction costs and delays in budgeted leasing, they could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units.

We may incur unanticipated costs and liabilities due to environmental problems.

Under various federal, state and local laws and regulations, we may, as a current or previous owner, developer or operator of real estate, be liable for the costs of clean-up of certain conditions relating to the presence of hazardous or toxic materials on, in or emanating from a property and any related damages to natural resources. Environmental laws and regulations often impose liability without regard to whether the owner or operator knew of, or was responsible for, the presence of hazardous or toxic materials. The presence of such materials, or the failure to address those conditions properly, may adversely affect our ability to rent or sell a property or to borrow using a property as collateral. The disposal or treatment of hazardous or toxic materials, or the arrangement of such disposal or treatment, may cause us to be liable for the costs of clean-up of such materials or for related natural resource damages occurring at or emanating from an off-site disposal or treatment facility, whether or not the facility is owned or operated by us. No assurance can be given that existing environmental assessments with respect to any of our properties reveal all environmental liabilities, that any prior owner or operator of any of our properties did not create any material environmental condition not known to us or that a material environmental condition does not otherwise exist as to any of our properties. Moreover, there can be no assurance that (i) changes to existing laws and regulations will not impose any material environmental liability or (ii) the current environmental condition of our properties will not be affected by customers, by the condition of land or operations in the vicinity of our properties (such as releases from underground storage tanks), or by third parties unrelated to us.

All of our properties were subject to a Phase I or similar environmental assessment by independent environmental consultants at the time of acquisition. Phase I assessments are intended to discover and evaluate information regarding the environmental condition of the surveyed property and surrounding properties. Phase I assessments generally include a historical review, a public records review, an investigation of the surveyed site and surrounding properties, and preparation and issuance of a written report, but do not include soil sampling or subsurface ~~investigations~~investigation, sampling and remediation and typically do not include an asbestos survey. While some of these assessments have led to further investigation and sampling, none of our environmental assessments of our properties have revealed an environmental liability that we believe would have a material adverse effect on our business, financial condition or results of operations taken as a whole. However, we cannot give any assurance that such conditions do not exist or may not arise in the future. Material environmental conditions, liabilities or compliance concerns may arise after the environmental assessment has been completed.

Environmental laws and regulations in the U.S. also require that owners or operators of buildings containing asbestos properly manage and maintain the asbestos, adequately inform or train those who may come into contact with asbestos and undertake special precautions, including removal or other abatement, in the event that asbestos is disturbed during building renovation or demolition. These laws and regulations may impose fines and penalties on building owners or operators who fail to comply with these requirements and may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos. Some of our properties may contain asbestos-containing building materials.

We invest in properties historically used for industrial, manufacturing and commercial purposes. Some of these properties contain, or may have contained, underground storage tanks for the storage of petroleum products and other hazardous or toxic substances. All of these operations create a potential for the release of petroleum products or other hazardous or toxic substances. Some of our properties are adjacent to or near other properties that may have contained or currently contain underground storage tanks used to store petroleum products, or other hazardous or toxic substances. In addition, previous or current occupants of our properties, including but not limited to, our tenants, and adjacent properties may have engaged, or may in the future engage, in activities that may release petroleum products or other hazardous or toxic substances.

We have a portfolio environmental insurance policy that provides coverage for potential unknown environmental liabilities, subject to the policy's coverage conditions and limitations, for most of our properties. Such policy may not be able to be renewed or may be subject to additional restrictions or limitations. From time to time, we may acquire properties or interests in properties, with known adverse environmental conditions where we believe that the environmental liabilities associated with these conditions are quantifiable and that the acquisition will yield a superior risk-adjusted return. In such an instance, we underwrite the costs of environmental investigation, clean-up and monitoring into the cost. Further, in connection with property dispositions, we may agree to remain responsible for, and to bear the cost of, remediating or monitoring certain environmental conditions on the properties.

We may incur significant costs complying with various federal, state and local laws, regulations and covenants that are applicable to our properties and, in particular, costs associated with complying with regulations such as the Americans with Disabilities Act of 1990 (the "ADA") may result in unanticipated expenses. The properties in our portfolio are subject to various covenants and U.S. federal, state and local laws and regulatory requirements, including permitting and licensing requirements. Local regulations, including municipal or local ordinances, zoning restrictions and restrictive covenants imposed by community developers may restrict our use of our properties and may require us to obtain approval from local officials or restrict our use of our properties and may require us to obtain approval from local officials of community standards organizations at any time with respect to our properties, including prior to acquiring a property or when undertaking renovations of any of our existing properties. Among other things, these restrictions may relate to fire and safety, seismic or hazardous material abatement requirements. There can be no assurance that existing laws and regulatory policies will not adversely affect us or the timing or cost of any future acquisitions or renovations, or that additional regulation will not be adopted that increase such delays or result in additional costs. Our growth strategy may be affected by our ability to obtain permits, licenses and zoning relief. Our failure to obtain such permits, licenses and zoning relief or to comply with applicable laws could have an adverse effect on our financial condition, results of operations and cash flow.

In addition, under the ADA, all places of public accommodation are required to meet certain U.S. federal requirements related to access and use by disabled persons. Noncompliance with the ADA could result in an order to correct any non-complying feature, which could result in substantial capital expenditures. We do not conduct audits or investigations of all of these properties to determine their compliance and we cannot predict the ultimate cost of compliance with the ADA, or other legislation. If one or more of our properties in which we invest is not in compliance with the ADA, or other legislation, then we would be required to incur additional costs to bring the property into compliance. If we incur substantial costs to comply with the ADA or other legislation, our financial condition, results of operations, cash flow, our ability to satisfy debt service obligations and to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units could be adversely affected.

Adverse market and economic conditions could cause us to recognize impairment charges.

We regularly review our real estate assets for impairment indicators, such as a decline in a property's occupancy rate, decline in general market conditions or a change in the expected hold period of an asset. If we determine that indicators of impairment are present, we review the properties affected by these indicators to determine whether an impairment charge is required. As a result, we may be required to recognize asset impairment, which could materially and adversely affect our business, financial condition and results of operations. We use considerable judgment in making determinations about impairments, from analyzing whether there are indicators of impairment, to the assumptions used in calculating the fair value of the investment. Accordingly, our subjective estimates and evaluations may not be accurate, and such estimates and evaluations are subject to change or revision.

We could be subject to risks and liabilities in connection with joint venture arrangements.

Our organizational documents do not limit the amount of available funds that we may invest in joint ventures. We currently have and may in the future selectively acquire, own and/or develop properties through joint ventures with other persons or entities when we deem such transactions are warranted by the circumstances. Joint venture investments, in general, involve certain risks not present where we act alone, including:

•joint venture partners may share certain approval rights over major decisions, which might (i) significantly delay or make impossible actions and decisions we believe are necessary or advisable with respect to properties owned through a joint venture, and/or (ii) adversely affect our ability to develop, finance, lease or sell properties owned through a joint venture at the most advantageous time for us, if at all;

•joint venture partners might experience financial distress, become bankrupt or otherwise fail to fund their share of any required capital contributions;

•joint venture partners might have economic or other business interests or goals that are competitive or inconsistent with our business interests or goals that would affect our ability to develop, finance, lease, operate, manage or sell any properties owned by the applicable joint venture;

•joint venture partners may have the power to act contrary to our instructions, requests, policies or objectives, including our current policy with respect to maintaining the Company's qualification as a REIT;

•joint venture agreements often restrict the transfer of a member’s or joint venture’s interest or may otherwise restrict our ability to sell our interest when we would like to or on advantageous terms;

•disputes between us and our joint venture partners may result in litigation or arbitration that would increase our expenses and prevent our employees, officers and directors from focusing their time and effort on our business and subject the properties owned by the applicable joint venture to additional risk; and

•we may in certain circumstances be liable for the actions of our joint venture partners.

The occurrence of one or more of the events described above could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units.

We own certain properties subject to ground leases that expose us to the loss of such property upon breach or termination of the ground lease.

We own the building and improvements and lease the land underlying the improvements under several long-term ground leases. We could lose our interests in the properties if the ground leases are breached by us, terminated or lapse. As we get closer to the lease termination dates, the values of the properties could decrease without an extension in place. Certain of these ground leases have payments subject to annual escalations and/or periodic fair market value adjustments which could adversely affect our financial condition or results of operations.

We are exposed to the potential impacts of future climate change.

We are exposed to potential physical risks from possible future changes in climate. We have significant investment in properties in coastal markets such as Southern California, Northern California and South Florida and have also targeted those markets for future growth. Our properties, especially the coastal market properties, may be exposed to rare catastrophic weather events, such as severe storms, drought, earthquakes, floods, wildfires or other extreme weather events. If the frequency of extreme weather events increases, our exposure to these events could increase and could impact our tenants' operations and their ability to pay rent. We carry comprehensive insurance coverage to mitigate our casualty risk, in amounts and of a kind that we believe are appropriate for the markets where each of our properties and their business operations are located given climate change risk.

We may be adversely impacted as a real estate owner, manager and developer in the future by potential impacts to the supply chain or stricter energy efficiency standards or greenhouse gas regulations for the commercial building sectors. Compliance with new laws or regulations relating to climate change, including compliance with “green” building codes, may require us to make improvements to our existing properties or result in increased operating costs that we may not be able to effectively pass on to our tenants. Any such laws or regulations could also impose substantial costs on our tenants, thereby impacting the financial condition of our tenants and their ability to meet their lease obligations and to lease or re-lease our properties. We cannot give any assurance that other such conditions do not exist or may not arise in the future. The potential impacts of future climate change on our real estate properties could adversely affect our ability to lease, develop or sell such properties or to borrow using such properties as collateral.

Our insurance coverage does not include all potential losses.

Real property is subject to casualty risk including damage, destruction, or loss resulting from events that are unusual, sudden and unexpected. Some of our properties are located in areas where casualty risk is higher due to earthquake, wind, wildfire and/or flood risk. We carry comprehensive insurance coverage to mitigate our casualty risk, in amounts and of a kind that we believe are appropriate for the markets where each of our properties and their business operations are located. Among other coverage, we carry property, boiler and machinery, general liability, cyber liability, fire, flood, terrorism, earthquake, ~~extended~~owner's ~~coverage~~protective professional indemnity and rental loss insurance. Our coverage includes policy specifications and limits customarily carried for similar properties and business activities. We evaluate our level of insurance coverage and deductibles using analysis and modeling, as is customary in our industry. However, we do not insure against all types of casualty, and we may not fully insure against certain perils including, without limitation, earthquake, windstorm and cyber risk, either because coverage is not available or because we do not deem it to be economically feasible or prudent to do so. As a result, we could experience a significant loss of capital or revenues, and be exposed to obligations under recourse debt associated with a property. This could occur due to an uninsured or high deductible loss, a loss in excess of insured limits, or a loss not paid due to insurer insolvency.

Financing and Capital Risks:

Disruptions in the financial markets could affect our ability to obtain financing and may negatively impact our liquidity, financial condition and operating results.

A significant amount of our existing indebtedness was issued through capital markets transactions. We anticipate that the capital markets could be a source of refinancing of our existing indebtedness in the future. This source of refinancing may not be available if volatility in or disruption of the capital markets occurs. From time to time, the capital and credit markets in the United States and other countries experience significant price volatility, dislocations and liquidity disruptions, which can cause the market prices of many securities and the spreads on prospective debt financings to fluctuate substantially. These circumstances can materially impact liquidity in the financial markets, making terms for certain financings less attractive, and in some cases result in the unavailability of financing. Furthermore, we could potentially lose access to available liquidity under our Unsecured Credit Facility if one or more participating lenders were to default on their commitments. If our ability to issue additional debt or equity securities or to borrow under our Unsecured Credit Facility were to be impaired by volatility in or disruption of the capital markets, it could have a material adverse effect on our liquidity and financial condition.

In addition, price volatility in the capital and credit markets could make the valuation of our properties more difficult. There may be significant uncertainty in the valuation, or in the stability of the value, of our properties that could result in a substantial decrease in the value of our properties. As a result, we may not be able to recover the carrying amount of our properties, which may require us to recognize an impairment loss in earnings.

Debt financing, the degree of leverage and rising interest rates could reduce our cash flow.

We use debt to increase the rate of return to our stockholders and unitholders and to allow us to make more investments than we otherwise could. Our use of leverage presents an additional element of risk in the event that the cash flow from our properties is insufficient to meet both debt payment obligations and the distribution requirements of the REIT provisions of the Code. In addition, rising interest rates would reduce our cash flow by increasing the amount of interest due on our floating rate debt and on our fixed rate debt as it matures and is refinanced. Our organizational documents do not contain any limitation on the amount or percentage of indebtedness we may incur.

The Financial Conduct Authority announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after June 30, 2023. As a result, in the U.S., the Federal Reserve Board and the Federal Reserve Bank of New York identified the ~~Secured~~SOFR ~~Overnight Financing Rate~~ as its preferred alternative rate for USD LIBOR in debt and derivative financial instruments. ~~Our~~As of December 31, 2022, our Unsecured Credit Facility, our ~~unsecured~~$200.0 million term ~~loans~~loan and related interest rate swaps are indexed to LIBOR. Our loan documents contain provisions that contemplate alternative methods to determine the base rate applicable to our LIBOR-indexed debt to the extent LIBOR-indexed rates are not available. ~~Additionally,~~We noplan ~~mandatory~~to ~~prepayment~~modify ~~or redemption provisions would be triggered under our loan documents in~~ the ~~event~~affected ~~that the LIBOR-indexed rates are not available. If our~~ debt agreements and ~~derivative contracts are not transitioned to a preferred alternative rate and LIBOR-indexed rates are discontinued or if~~ the ~~methods~~related ~~of calculating the rates change,~~ interest ~~rates~~rate onswaps ~~our~~prior ~~current or future indebtedness may be adversely affected. While we currently expect LIBOR-indexed rates~~ to ~~be available until~~ June ~~30,~~ 2023~~, it is possible that they will become unavailable prior to that time~~. We anticipate managing the transition to a preferred alternative rate using the language set out in our agreements however future market conditions may not allow immediate implementation of desired modifications and we may incur significant associated costs in doing so. We will continue to monitor and evaluate the potential impact on our debt payments and value of our related debt, however, we are not able to predict when LIBOR-indexed rates will cease to be available.

Failure to comply with covenants in our debt agreements could adversely affect our financial condition.

The terms of our agreements governing our indebtedness require that we comply with a number of financial and other covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage. Complying with such covenants may limit our operational flexibility. Our failure to comply with these covenants could cause a default under the applicable debt agreement even if we have satisfied our payment obligations. Consistent with our historical practice, we will continue to interpret and certify our performance under these covenants in a good faith manner that we deem reasonable and appropriate. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by the noteholders or lenders in a manner that could impose and cause us to incur material costs. Our ability to meet our financial covenants may be adversely affected if economic and credit market conditions limit our ability to reduce our debt levels consistent with, or result in net operating income below, our current expectations. Under our Unsecured Credit Facility and our unsecured term loans, an event of default can also occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred that could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreement.

Upon the occurrence of an event of default, we would be subject to higher finance costs and fees, and the lenders under our Unsecured Credit Facility will not be required to lend any additional amounts to us. In addition, our indebtedness, together with accrued and unpaid interest and fees, could be accelerated and declared to be immediately due and payable. Furthermore, our Unsecured Credit Facility, our unsecured term loans and the indentures governing our senior unsecured notes contain certain cross-default provisions that may be triggered in the event that our other material indebtedness is in default. These cross-default provisions may require us to repay or restructure our Unsecured Credit Facility, our unsecured term loans or our senior unsecured notes (which includes our private placement notes), depending on which is in default, and such restructuring could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units. If repayment of any of our indebtedness is accelerated, we cannot provide assurance that we would be able to borrow sufficient funds to refinance such indebtedness or that we would be able to sell sufficient assets to repay such indebtedness. Even if we were able to obtain new financing, it may not be on commercially reasonable terms, or terms that are acceptable to us.

Adverse changes in our credit ratings could negatively affect our liquidity and business operations.

The credit ratings of our senior unsecured notes are based on our operating performance, liquidity and leverage ratios, overall financial position and other factors employed by the credit rating agencies in their rating analyses. Our credit ratings can affect the availability, terms and pricing of any indebtedness we may incur or preferred stock that we might issue going forward. There can be no assurance that we will be able to maintain any credit rating and, in the event any credit rating is downgraded, we could incur higher borrowing costs or may be unable to access certain or any capital markets.

The REIT distribution requirements may limit our ability to retain capital and require us to turn to external financing sources.

As a REIT, the Company must distribute to its stockholders at least 90% of its taxable income (determined without regard to the dividends-paid deduction and by excluding any net capital gain) to our stockholders each year and we may be subject to tax to the extent our taxable income is not fully distributed. The Company could, in certain instances, have taxable income without sufficient cash to enable it to meet this requirement. In that situation, we could be required to borrow funds or sell properties on adverse terms in order to do so. The distribution requirement could also limit our ability to accumulate capital to provide capital resources for our ongoing business, and to satisfy our debt repayment obligations and other liquidity needs, we may be more dependent on outside sources of financing, such as debt financing or issuances of additional capital stock, which may or may not be available on favorable terms. Additional debt financings may substantially increase our leverage and additional equity offerings may result in substantial dilution of stockholders' and unitholders' interests.

We may have to make lump-sum payments on our existing indebtedness.

We are required to make lump-sum or "balloon" payments under the terms of some of our indebtedness. Our ability to make required payments of principal on outstanding indebtedness, whether at maturity or otherwise, may depend on our ability to refinance the applicable indebtedness or to sell properties. Currently, we have no commitments to refinance any of our indebtedness.

Failure to hedge effectively against interest rate changes may adversely affect our results of operations.

In the normal course of business, we use derivatives to manage our exposure to interest rate volatility on debt instruments, including hedging for future debt issuances. At other times we may utilize derivatives to increase our exposure to floating interest rates. There can be no assurance that these hedging arrangements will have the desired beneficial impact. These arrangements, which can include a number of counterparties, may expose us to additional risks, including failure of any of our counterparties to perform under these contracts, and may involve extensive costs, such as transaction fees or breakage costs, if we terminate them. Hedging may reduce the overall returns on our investments, which could reduce our cash available for distribution to our stockholders and unitholders. Failure to hedge effectively against interest rate changes may materially adversely affect our financial condition, results of operations and cash flow. No strategy can completely insulate us from the risks associated with interest rate fluctuations.

We have adopted a practice relating to the use of derivative financial instruments which requires the Company's Board of Directors to authorize our use of derivative financial instruments to fix the interest rate on anticipated offerings of unsecured debt and to manage the interest rates on our variable rate borrowings. Our practice is that we do not use derivatives for speculative or trading purposes and intend only to enter into contracts with major financial institutions based on their credit rating and other factors, but the Company's Board of Directors may choose to change these practices in the future.

Our mortgages may impact our ability to sell encumbered properties on advantageous terms or at all.

~~Certain~~Our ofoutstanding ~~our~~mortgage ~~mortgages contain~~contains, and some future mortgages may contain, substantial prepayment premiums that we would have to pay upon the sale of a property, thereby reducing the net proceeds to us from the sale of any such property. As a result, our willingness to sell certain properties and the price at which we may desire to sell a property may be impacted. If we are unable to sell properties on favorable terms or redeploy the proceeds of property sales in accordance with our business strategy, then our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units could be adversely affected.

Earnings and cash dividends, asset value and market interest rates affect the price of the Company's common stock.

The market value of the Company's common stock is based in large part upon the market's perception of the growth potential of the Company's earnings and cash dividends. The market value of the Company's common stock is also based upon the value of the Company's underlying real estate assets. For this reason, shares of the Company's common stock may trade at prices that are higher or lower than the Company's net asset value per share. To the extent that the Company retains operating cash flow for investment purposes, working capital reserves, or other purposes, these retained funds, while increasing the value of the Company's underlying assets, may not correspondingly increase the market price of the Company's common stock. The Company's failure to meet the market's expectations with regard to future earnings and the payment of cash dividends/distributions likely would adversely affect the market price of the Company's common stock. Further, the distribution yield on the common stock (as a percentage of the price of the common stock) relative to market interest rates may also influence the market price of the Company's common stock. An increase in market interest rates might lead prospective purchasers of the Company's common stock to expect a higher distribution yield, which would adversely affect the market price of the ~~Company's common stock. Any reduction in the market price of the Company's common stock would, in turn, reduce the market value of the Units.~~

Company's common stock. Any reduction in the market price of the Company's common stock would, in turn, reduce the market value of the Units.

Future sales or issuances of our common stock may cause the market price of our common stock to decline.

The sale of substantial amounts of our common stock, whether directly by us or in the secondary market, the perception that such sales could occur or the availability of future issuances of shares of our common stock, limited partnership units of the Operating Partnership or other securities convertible into or exchangeable or exercisable for our common stock, could materially and adversely affect the market price of our common stock and our ability to raise capital through future offerings of equity or equity-related securities. In addition, we may issue capital stock that is senior to our common stock in the future for a number of reasons, including to finance our operations and business strategy, to adjust our ratio of debt to equity or for other reasons.

The market price of our common stock may fluctuate significantly.

The market price of our common stock may fluctuate significantly in response to many factors, including:

•actual or anticipated variations in our operating results, funds from operations, cash flows or liquidity,

•changes in our earnings estimates or those of analysts,

•changes in asset valuations and related impairment charges,

•changes in our dividend policy,

•publication of research reports about us or the real estate industry generally,

•the ability of our tenants to pay rent to us and meet their obligations to us under the current lease terms and our ability to re-lease space as leases expire,

•increases in market interest rates that lead purchasers of our common stock to demand a higher dividend yield,

•changes in market valuations of similar companies,

•adverse market reaction to the amount of our debt outstanding at any time, the amount of our debt maturing in the near- and medium-term and our ability to refinance our debt, or our plans to incur additional debt in the future,

•our ability to comply with applicable financial covenants under our unsecured line of credit and the indentures under which our senior unsecured indebtedness is, or may be, issued,

•additions or departures of key management personnel,

•actions by institutional stockholders,

•speculation in the press or investment community,

•general market and economic conditions.

Many of the factors listed above are beyond our control. Those factors may cause the market price of our common stock to decline significantly, regardless of our financial condition, results of operations and prospects. It is impossible to provide any assurance that the market price of our common stock will not fall in the future, and it may be difficult for holders to resell shares of our common stock at prices they find attractive, or at all.

Risks Related to Our Organization and Structure:

The Company is authorized to issue preferred stock. The issuance of preferred stock could adversely affect the holders of the Company's common stock issued pursuant to its public offerings.

Our declaration of trust authorizes the Company to issue 225,000,000 common shares and 10,000,000 shares designated as preferred stock. Subject to approval by the Company's Board of Directors, the Company may issue preferred stock with rights, preferences and privileges that are more beneficial than the rights, preferences and privileges of its common stock. Holders of the Company's common stock do not have preemptive rights to acquire any shares issued by the Company in the future. If the Company ever creates and issues preferred stock with a distribution preference over common stock, payment of any distribution preferences on outstanding preferred stock would reduce the amount of funds available for the payment of distributions to our common stockholders and unitholders. In addition, holders of preferred stock are normally entitled to receive a preference payment in the event of liquidation, dissolution or winding up before any payment is made to our common stockholders, which would reduce the amount our common stockholders and unitholders, might otherwise receive upon such an occurrence. Also, under certain circumstances, the issuance of preferred stock may have the effect of delaying or preventing a change in control of the Company.

The Company's Board of Directors may change its strategies, policies or procedures without stockholder approval, which may subject us to different and more significant risks in the future.

Our investment, financing, leverage and distribution policies and our policies with respect to all other activities, including growth, debt, capitalization and operations, are determined by the Company's Board of Directors. These policies may be amended or revised at any time and from time to time at the discretion of the Company's Board of Directors without notice to or a vote of its stockholders. This could result in us conducting operational matters, making investments or pursuing different business or growth strategies. Under these circumstances, we may expose ourselves to different and more significant risks in the future, which could have a material adverse effect on our business and growth. In addition, the Company's Board of Directors may change its governance policies provided that such changes are consistent with applicable legal requirements. A change in these policies could have an adverse effect on our financial condition, results of operations, cash flow, ability to satisfy our principal and interest obligations, ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units.

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Certain provisions of our charter and bylaws could hinder, delay or prevent a change in control of our company.

Certain provisions of our charter and our bylaws could have the effect of discouraging, delaying or preventing transactions that involve an actual or threatened change in control of our company. These provisions include the following:

•Removal of Directors. Under our charter, subject to the rights of one or more classes or series of preferred stock to elect one or more directors, a director may be removed only for cause and only by the affirmative vote of at least a majority of all votes entitled to be cast by our stockholders generally in the election of directors.

•Preferred Stock. Under our charter, our board of directors has the power to issue preferred stock from time to time in one or more series and to establish the terms, preferences and rights of any such series of preferred stock, all without approval of our stockholders.

•Advance Notice Bylaws. Our bylaws require advance notice procedures with respect to nominations of directors and shareholder proposals.

•Ownership Limit. For the purpose, among others, of preserving our status as a REIT under the Internal Revenue Code of 1986, as amended, our charter generally prohibits any single stockholder, or any group of affiliated stockholders, from beneficially owning more than 9.8% of our outstanding common and preferred stock unless our board of directors waives or modifies this ownership limit.

•Stockholder Action by Written Consent. Our bylaws contain a provision that permits our stockholders to take action by written consent in lieu of an annual or special meeting of stockholders only if the unanimous consent of the stockholders is obtained.

•Ability of Stockholders to Call Special Meeting. Under our bylaws, we are only required to call a special meeting at the request of the stockholders if the request is made by at least a majority of all votes entitled to be cast by our stockholders generally in the election of directors.

•Maryland Control Share Acquisition Act. Our bylaws contain a provision exempting acquisitions of our shares from the Maryland Control Share Acquisition Act. However, our board of directors may amend our bylaws in the future to repeal or modify this exemption, in which case any control shares of our company acquired in a control share acquisition will be subject to the Maryland Control Share Acquisition Act.

Income Tax Risks:

The Company might fail to qualify as a REIT under existing laws and/or federal income tax laws could change.

The Company intends to operate so as to qualify as a REIT under the Code, and we believe that the Company is organized and will operate in a manner that allows us to continue to do so. However, qualification as a REIT involves the satisfaction of numerous requirements, some of which must be met on a recurring basis. These requirements are established under highly technical and complex Code provisions. There are only limited judicial and administrative interpretations of these provisions, and they involve the determination of various factual matters and circumstances not entirely within our control.

If the Company were to fail to qualify as a REIT in any taxable year, the Company would be subject to federal income tax at corporate rates. This could result in a discontinuation or substantial reduction in distributions to our stockholders and unitholders, and could reduce the cash available to pay interest and principal on debt securities and make further investments in real estate. Unless entitled to relief under certain statutory provisions, the Company would be disqualified from electing treatment as a REIT for the four taxable years following the year during which the Company failed to qualify.

The IRS, the United States Treasury Department and Congress frequently review federal income tax legislation, and we cannot predict whether, when or to what extent new federal laws, regulations, interpretations or rulings will be adopted. Additional changes to tax laws are likely to continue to occur in the future and any such legislative action may prospectively or retroactively modify the Company's tax treatment and therefore, may adversely affect taxation of us and/or our stockholders and unitholders. Any such changes could have an adverse effect on an investment in shares or on the market value or the resale potential of our properties. Stockholders and unitholders are urged to consult with their own tax advisor with respect to the impact of recent legislation, the status of legislative, regulatory, or administrative developments and proposals, and their potential effect on ownership of our shares.

1718

Certain property transfers may generate prohibited transaction income, resulting in a penalty tax on the gain attributable to the transaction.

As part of our business, we sell properties to third parties as opportunities arise. Under the Code, a 100% penalty tax could be assessed on the tax gain recognized from sales of properties that are deemed to be prohibited transactions. The question of what constitutes a prohibited transaction is based on the facts and circumstances surrounding each transaction. The IRS could contend that certain sales of properties by us are prohibited transactions. While we have implemented controls to avoid prohibited transactions, if a dispute were to arise that was successfully argued by the IRS, the 100% penalty tax could be assessed against the Company's profits from these transactions.

The REIT distribution requirements may limit our ability to retain capital and require us to turn to external financing sources.

We may pay some taxes.

Even if we qualify as a REIT for U.S. federal income tax purposes, we may be subject to federal, state and local taxes on our income and property. From time to time changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability. A shortfall in tax revenues for states and municipalities in which we operate may lead to an increase in the frequency and amount of such increase. These actions could adversely affect our financial condition and results of operations. In addition, our TRSs will be subject to federal, state and local income tax for income received.

In the normal course of business, certain of our legal entities have undergone tax audits and may undergo audits in the future. There can be no assurance that future audits will not occur with increased frequency or that the ultimate result of such audits will not have a material adverse effect on our results of operations.

General Risk Factors:

~~The~~A ~~current pandemic of the novel coronavirus, or COVID-19, and the~~ future outbreak of ~~other~~ highly infectious or contagious diseases, similar to COVID-19 may adversely affect our business.

The COVID-19 pandemic ~~has~~ caused, and another pandemic in the future could cause, disruptions to regional and global economies and significant volatility and negative pressure in the financial markets. ~~The~~A ~~COVID-19 pandemic, or a~~ future pandemic, could also have a material and adverse effect on our ability to successfully operate and on our financial condition, results of operations and cash flows due to, among other factors:

• reduced economic activity may severely impact our tenants' businesses, financial condition and liquidity and may cause certain of our tenants to be unable to meet their obligations to us in full, or at all, or to otherwise seek modifications of such obligations and/or terminate their leases early or not renew;

• delays to or halting of construction activities, including permitting and obtaining approvals, related to our ongoing development and redevelopment projects as well as tenant improvements;

• difficulty in accessing the capital and lending markets (or a significant increase in the costs of doing so), impacts to our credit ratings, a severe disruption or instability in the global financial markets, or deteriorations in credit and financing conditions, may affect our access to capital necessary to fund business operations or address maturing debt obligations on a timely basis;

• our ability to meet the financial covenants of our Unsecured Credit Facility and other debt agreements and result in a default and potentially an acceleration of indebtedness, and such non-compliance could negatively impact our ability to make additional borrowings under our Unsecured Credit Facility and pay dividends;

• any impairment in value of our tangible or intangible assets which could be recorded as a result of weaker economic conditions;

• a general decline in business activity and demand for real estate transactions could adversely affect our ability to sell or purchase properties, at attractive pricing or at all;

• an inability to initiate or pursue litigation due to various court closures, increased case volume and/or moratoriums on certain types of activities;

• the potential negative impact on the health of our employees, particularly if a significant number of them are impacted, could result in a deterioration in our ability to ensure business continuity during this disruption, or a future disruption, and may negatively impact our disclosure controls and procedures over financial reporting; and

• an extended period of remote work arrangements for our employees could strain our business continuity plans and introduce operational risk including, but not limited to, cybersecurity risks.

~~We face risks relating to cybersecurity attacks that could cause loss of confidential information and other business disruptions.~~19

We ~~rely~~face ~~extensively~~risks onrelating ~~computer systems~~ to ~~manage our business, and our business is at risk from and may be impacted by~~ cybersecurity attacks and ~~security~~other ~~breaches.~~disruptions ~~These could include attempts~~ to ~~gain unauthorized access to~~ our ~~data and~~ computer systems through malware, computer viruses, attachments to e-mails, persons inside our Company or persons with access to systems inside our Company, and other significant disruptions of our information technology networks and related systems.

We rely extensively on computer systems to manage our business, and our business is at risk from and may be impacted by cybersecurity attacks and security breaches. These could include attempts to gain unauthorized access to our data and computer systems through malware, computer viruses, attachments to e-mails, persons inside our Company or persons with access to systems inside our Company, and other significant disruptions of our information technology networks and related systems. Our business is also at risk from and may be impacted by our computer systems malfunctioning or being subject of a significant disruption.

The risk of a cybersecurity breach or disruption, particularly through a cyber-incident, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Although we employ a number of measures to prevent, detect and mitigate these threats, which include password protection, frequent password change events, firewall detection systems, frequent backups, a redundant data system for core applications, a managed detection monitoring and response solution, periodic cyber dwelling reviews and annual penetration testing, even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed to not be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk.

Moreover, although we maintain some of our own critical information technology systems, we also depend on third parties to provide important information technology services relating to, for instance, payroll, electronic communications and certain finance functions. The security measures employed by such third party service providers may prove to be ineffective at preventing breaches of their systems or their systems may malfunction or otherwise become subject to disruption.

Our computer systems are essential to the operation of our business and our ability to perform day-to-day operations and, in some cases, may be critical to the operations of certain of our tenants. A successful cybersecurity attack or other disruption of our computer systems could, among other things,:

•compromise the confidential information of our employees, tenants and vendors;

•disrupt the proper functioning of our networks and systems, and therefore our operations and/or those of certain of our tenants;

•result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes;

•result in misstated financial reports, violations of loan covenants and/or missed reporting deadlines;

•result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;

•require significant management attention and resources to remedy any damages that result;

•subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or

•subject us to legal liability; or

•damage our reputation among our tenants, investors and associates.

We may become subject to litigation.

We may become subject to litigation, including claims relating to our operations, offerings, and otherwise in the ordinary course of business. Some of these claims may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against. Resolution of these types of matters could adversely impact our financial condition, results of operations and cash flow. Certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flows, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors.

Terrorist attacks and other acts of violence or war may affect the market for the Company's common stock, the industry in which we conduct our operations and our profitability.

Acts of violence, including terrorist attacks, could occur in the localities in which we conduct business. More generally, these events could cause consumer confidence and spending to decrease or result in increased volatility in the worldwide financial markets and economy. These attacks or armed conflicts may adversely impact our operations or financial condition. In addition, losses resulting from these types of events may be uninsurable.

Our business could be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal control over financial reporting.

The design and effectiveness of our disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations. While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in accomplishing all control objectives all of the time. Deficiencies, including any material weakness, in our internal control over financial reporting which may occur could result in misstatements of our results of operations, restatements of our financial statements, a decline in the price/value of our securities, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity.

We may be unable to retain and attract key management personnel.

We may be unable to retain and attract talented personnel. In the event of the loss of key management personnel or upon unexpected death, disability or retirement, we may not be able to find replacements with comparable skill, ability and industry expertise. Until suitable replacements are identified and retained, if at all, our operating results and financial condition could be materially and adversely affected.


Item 1B.			Unresolved SEC Comments

None.

2021


Item 2.			Properties

General

At December 31, ~~2021~~2022, we owned ~~410~~426 industrial properties of which ~~404~~416 were classified as in-service. The ~~404~~416 in-service industrial properties contained an aggregate of approximately 6062.79 million square feet of GLA in 1918 states, with a diverse base of ~~more~~approximately ~~than~~1,000 ~~950~~ tenants engaged in a wide variety of businesses, including e-commerce, third-party logistics and transportation, consumer and other manufactured products, retail and consumer services, food and beverage, lumber and building materials, wholesale goods, health services, governmental and other. Our in-service portfolio includes all properties that have reached stabilized occupancy (defined as properties that are 90% leased), (re)developed properties upon the earlier of reaching 90% occupancy or one year from the date construction is completed and acquired properties that are at least 75% occupied at acquisition, unless we anticipate tenant move-outs within two years of ownership would drop occupancy below 75%. Acquired properties that are less than 75% occupied at acquisition or with tenants that we anticipate will move out within the first two years of ownership are placed in service upon the earlier of reaching 90% occupancy or one year after move out. The average annual base rent per square foot for our in-service portfolio, calculated at December 31, ~~2021~~2022, was $56.9750. The properties are generally located in business parks that have convenient access to interstate highways and/or rail and air transportation. We maintain insurance on our properties that we believe is adequate.

We classify our properties into ~~four~~three industrial categories: bulk warehouse, regional warehouse, and light industrial ~~and R&D/flex~~. While some properties may have characteristics which fall under more than one property type, we use what we believe is the most dominant characteristic to categorize the property. Individual properties may be reclassified over time due to changes in building characteristics such as tenant use and office space build-out.

The following describes, generally, the different industrial categories:

•Bulk warehouse buildings are of ~~more than~~ 100,000 square feet or more, have a ceiling height of at least 22 feet and are comprised of ~~5%-~~less than 15% of office space;

•Regional warehouses are of less than 100,000 square feet, have a ceiling height of at least 22 feet and are comprised of 5less than 30%~~-15%~~ of office space; and

•Light industrial properties are of less than 100,000 square feet, have a ceiling height of ~~16-21~~ less than 22 feet and are comprised of 530%~~-50%~~ or more of office space~~; and~~.

~~•R&D/flex buildings are of less than 100,000 square feet, have a ceiling height of less than 16 feet and are comprised of 50% or more of office space.~~22

21The following tables summarize, by market, certain information as of December 31, 2022, with respect to the in-service properties.

The following tables summarize, by market, certain information as of December 31, 2021, with respect to the in-service properties.

In-Service Property Summary Totals

	Bulk Warehouse			~~RegionalWarehouse~~Regional Warehouse			Light Industrial			~~R&D/Flex~~Total			~~Total~~
Metropolitan Area	GLA(in 000's)	Number ofProperties		GLA(in 000's)	Number ofProperties		GLA(in 000's)	Number ofProperties		GLA(in 000's)	Number ofProperties		~~GLA(in~~Occupancyat ~~000's)~~12/31/22		~~Number ofProperties~~	~~Occupancyat 12/31/21~~
Atlanta, GA	4,563	14		340	4		347	5		—5,250	—23		~~5,250~~100.0	%	23	~~99.7~~	%
Baltimore, MD	3,096	9		—	—		~~268~~320	45		523,416	114		~~3,416~~81.2	%	14	~~79.6~~	%
Central Florida	427	3		~~234~~315	34		~~160~~79	21		—821	—8		~~821~~100.0	%	8	~~100.0~~	%
Central/Eastern PA (A)	67,~~156~~241	1415		~~399~~481	46		~~280~~199	64		—7,921	—25		~~6,835~~99.8	%	24	~~99.8~~	%
Chicago, IL	5,265	16		~~292~~342	56		~~255~~205	54		—5,812	—26		~~5,812~~100.0	%	26	~~99.4~~	%
Cincinnati, OH	683	3		131	2		278	5		—1,092	—10		~~1,092~~100.0	%	10	~~99.4~~	%
Cleveland, OH	1,229	6		—	—		—	—		—	—		1,229		6	100.0	%
Dallas/Ft. Worth, TX	5,996	31		1,327	20		67	2		7,390	53		100.0	%
Dallas/Ft. Worth, TX	5,622	29		1,327	20		67	2		—	—		7,016		51	99.8	%
Denver, CO (A)	1,417	6		750	8		848	21		3,015	35		100.0	%
Denver, CO	1,135	5		717	7		782	18		66	3		2,700		33	99.3	%
Detroit, MI	242	2		281	6		437	14		960	22		100.0	%
Detroit, MI	242	2		342	7		330	12		107	2		1,021		23	100.0	%
Houston, TX	2,958	18		564	8		85	3		3,607	29		99.1	%
Houston, TX	2,958	18		564	8		85	3		—	—		3,607		29	95.2	%
Minneapolis/St. Paul, MN	2,040	11		145	2		—	—		2,185	13		100.0	%
Minneapolis/St. Paul, MN	2,564	12		145	2		—	—		—	—		2,709		14	99.2	%
Nashville, TN	1,671	4		—	—		164	2		1,835	6		100.0	%
Nashville, TN	979	3		—	—		164	2		—	—		1,143		5	100.0	%
New Jersey (A)	1,567	7		—	—		952	17		2,519	24		99.5	%
New Jersey (A)	1,359	6		—	—		781	14		172	3		2,312		23	98.7	%
Northern California	—	—		138	4		109	3		247	7		90.9	%
Northern California	—	—		123	3		46	2		—	—		169		5	100.0	%
Phoenix, AZ	3,669	9		445	7		38	1		4,152	17		100.0	%
Phoenix, AZ	2,866	8		445	7		39	1		—	—		3,350		16	99.6	%
Seattle, WA	101	1		322	7		—	—		423	8		100.0	%
Seattle, WA	101	1		287	5		23	1		—	—		411		7	100.0	%
South Florida	1,439	9		612	10		—	—		2,051	19		98.7	%
South Florida	848	6		433	8		—	—		—	—		1,281		14	94.2	%
Southern California (A)	7,975	28		1,730	31		498	18		10,203	77		100.0	%
Southern California (A)	7,731	27		1,469	24		727	20		—	—		9,927		71	99.4	%
Total	50,350	186		7,923	125		4,626	105		62,899	416		98.8	%
Other (B)	615	2		—	—		—	—		—	—		615		2	100.0	%
Occupancy by Industrial Property Type		98.7	%		99.2	%		99.2	%
Total	48,439	184		7,248	109		4,632	102		397	9		60,716		404	98.1	%
Occupancy by Industrial Property Type		98.0	%		98.7	%		97.9	%		97.9	%

_______________

(A)Central/Eastern Pennsylvania includes the markets of Central Pennsylvania and Philadelphia. Denver includes one property in Salt Lake City. New Jersey includes the markets of Northern and Central New Jersey. Southern California includes the markets of Los Angeles, the Inland Empire and San Diego.

(B)Properties are located in Greenville, KY; and Salt Lake City, UT.

Indebtedness

As of December 31, ~~2021~~2022, 24three of our ~~404~~416 in-service industrial properties, with a net carrying value of $~~133~~31.68 million, are pledged as collateral under ~~our~~a mortgage ~~financings~~financing, totaling $7910.83 million, excluding unamortized debt issuance costs. See Note 4 to the Consolidated Financial Statements and the accompanying Schedule III for additional information.

Development Activity

During the year ended December 31, 2021, we moved seven development properties totaling approximately 0.9 million square feet of GLA to our in-service portfolio at a total cost of approximately $98.2 million. Included in the total cost is $5.4 million of leasing commissions. The capitalization rate for these development projects, calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments) divided by the total investment in the developed property is 6.6%. The placed in-service development projects have the following characteristics:

Metropolitan Area	Number ofProperties	GLA	Property Type	Occupancyat 12/31/21
Central/Eastern Pennsylvania	1	100,272	Bulk Warehouse	100%
South Florida	4	517,940	Bulk Warehouse, Regional Warehouse	100%
Southern California	2	265,317	Bulk Warehouse, Regional Warehouse	100%
Total	7	883,529

As of December 31, 2021, we substantially completed three developments totaling approximately 0.6 million square feet of GLA. The estimated total investment for the three developments is approximately $91.2 million, of which $77.4 million has been paid as of December 31, 2021. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost. The substantially completed developments have the following characteristics:

Metropolitan Area

Number ofProperties

GLA

Property Type

Occupancyat 12/31/21 (A)

South Florida

591,940

Bulk Warehouse

Total

591,940

(A) Properties are 55% leased at December 31, 2021.

As of December 31, 2021, we have 17 development projects that are under construction totaling approximately 5.8 million square feet of GLA. The estimated total investment for the 17 development projects under construction is $633.5 million, of which $284.1 million has been paid as of December 31, 2021. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost. The development projects under construction have the following characteristics:

Metropolitan Area

Number ofProperties

GLA

Property Type

Anticipated Quarter of Building Completion

Dallas/Fort Worth, TX

374,306

Bulk Warehouse

Q1 2022

Southern California

303,204

Bulk Warehouse

Q1 2022

Nashville, TN

500,240

Bulk Warehouse

Q2 2022

Phoenix, AZ

802,439

Bulk Warehouse

Q2 2022

Seattle, WA

128,640

Bulk Warehouse

Q2 2022

Central/Eastern Pennsylvania

1,085,280

Bulk Warehouse

Q3 2022

Denver, CO

588,085

Bulk Warehouse

Q3 2022

Nashville, TN

691,920

Bulk Warehouse

Q3 2022

Central Florida

343,521

Bulk Warehouse, Regional Warehouse

Q4 2022

New Jersey

208,000

Bulk Warehouse

Q4 2022

South Florida

350,723

Bulk Warehouse

Q4 2022

Southern California

460,805

Bulk Warehouse

Q1 2023

Total (A)

5,837,163

(A) The 17 properties were 39% leased at December 31, 2021.

Development Activity

During the year ended December 31, 2022, we moved ten development properties totaling approximately 4.1 million square feet of GLA to our in-service portfolio at a total cost of approximately $447.8 million. Included in the total cost is $22.3 million of leasing commissions. The capitalization rate for these development projects, calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments) divided by the total investment in the developed property is 6.6%. The placed in-service development projects have the following characteristics:


Metropolitan Area	Number of Properties	GLA	Property Type	Occupancy at 12/31/22
Central/Eastern Pennsylvania	1	1,085,280	Bulk Warehouse	100%
Dallas/Ft. Worth, TX	2	374,306	Bulk Warehouse	100%
Nashville, TN	1	691,418	Bulk Warehouse	100%
New Jersey	1	208,000	Bulk Warehouse	100%
Phoenix, AZ	1	802,439	Bulk Warehouse	100%
South Florida	3	591,940	Bulk Warehouse	100%
Southern California	1	303,204	Bulk Warehouse	100%
Total	10	4,056,587

As of December 31, 2022, we substantially completed seven developments totaling approximately 2.1 million square feet of GLA. The estimated total investment for the seven developments is approximately $223.5 million, of which $178.0 million has been paid as of December 31, 2022. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost. The substantially completed developments have the following characteristics:








Metropolitan Area	Number of Properties	GLA	Property Type	Occupancy at 12/31/22
Central/Eastern Pennsylvania	1	105,000	Bulk Warehouse	0%
Chicago, IL	1	451,022	Bulk Warehouse	0%
Denver, CO	2	787,585	Bulk Warehouse	0%
Nashville, TN	1	500,240	Bulk Warehouse	0%
Seattle, WA	1	128,426	Bulk Warehouse	0%
South Florida	1	131,683	Bulk Warehouse	0%
Total	7	2,103,956

As of December 31, 2022, we have 14 development projects that are under construction totaling approximately 3.6 million square feet of GLA. The estimated total investment for the 14 development projects under construction is $556.2 million, of which $293.1 million has been paid as of December 31, 2022. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost. The development projects under construction have the following characteristics:

Metropolitan Area

Number of
Properties

GLA

Property Type

Anticipated Quarter of Building Completion

Central Florida

347,157

Bulk Warehouse, Regional Warehouse

Q1 2023

South Florida

417,148

Bulk Warehouse

Q1 2023

Central/Eastern Pennsylvania

698,880

Bulk Warehouse

Q2 2023

Northern California

37,056

Regional Warehouse

Q2 2023

South Florida

56,399

Regional Warehouse

Q3 2023

Southern California

1,022,887

Bulk Warehouse, Regional Warehouse

Q3 2023

Northern California

1,015,791

Bulk Warehouse

Q1 2024

Total (A)

3,595,318

(A) The 14 properties were 11% pre-leased at December 31, 2022.

Property Acquisitions

During the year ended December 31, ~~2021~~2022, we acquired ~~four~~11 industrial properties and ~~769.7~~134 acres of land located in our ~~Baltimore/Washington,~~ Central ~~Florida, Central~~/Eastern Pennsylvania, ~~Denver~~Houston, ~~New Jersey,~~ Northern California, ~~Phoenix~~Seattle, ~~Seattle~~South Florida and Southern California markets for an aggregate purchase price of approximately $~~340~~299.91 million. The industrial properties were acquired at an expected stabilized capitalization rate of approximately 53.49%. The capitalization rate for these industrial property acquisitions was calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments and above and below market lease amortization) and dividing it by the sum of the purchase price plus closing costs and estimated costs to stabilize the properties. The acquired industrial properties have the following characteristics:

Metropolitan Area	Number ofProperties	GLA	Property Type	Occupancyat 12/31/2122
Central Florida	1	80,875	Light Industrial	100%
Northern California	1	14,935	Regional Warehouse	100%
Denver, CO	1	32,730	Regional Warehouse	0%
Seattle, WA	1	12,768	Regional Warehouse	100%
Northern California	2	101,234	Light Industrial, Regional Warehouse	38%
South Florida	2	179,430	Regional Warehouse	100%
Total	4	214,839
Southern California	7	279,560	Bulk Warehouse, Regional Warehouse	100%
Total	11	486,693

Property Sales

During the year ended December 31, ~~2021~~2022, we sold 29nine industrial properties comprising approximately 2.92 million square feet of GLA, at a weighted average capitalization rate of 5.97%, and one land parcel for total gross sales proceeds of approximately $~~243~~178.43 million. The capitalization rate for the 29nine industrial property sales is calculated by taking revenues of the property (excluding straight-line rent adjustments, lease inducement amortization and above and below market lease amortization) less operating expenses of the property for a period of the last twelve full months prior to sale and dividing the sum by the sales price of the property. The sold industrial properties have the following characteristics:

Metropolitan Area	Number ofProperties	GLA	Property Type
Cincinnati, OH	1	179,450	Regional Warehouse
Cleveland, OH (A)	6	1,228,629	Bulk Warehouse
Dallas/Fort Worth, TX	1	60,000	Regional Warehouse
Detroit, MI	1	60,491	Regional Warehouse
Detroit, MI	15	363,893	Light Industrial, R&D/Flex, Regional Warehouse
Minneapolis/St. Paul, MN	1	580,733	Bulk Warehouse
Houston, TX	1	663,821	Bulk Warehouse
Other (B)	1	332,465	Bulk Warehouse
Milwaukee, WI (A)	4	797,089	Bulk Warehouse, Regional Warehouse
Total	9	2,202,318
Minneapolis/St. Paul, MN	3	214,484	Light Industrial, R&D/Flex
South Florida (B)	1	36,791	Light Industrial
Other (C)	3	592,751	Bulk Warehouse, R&D/Flex
Total	29	2,908,279

(A) With the sale of these properties, we ~~have~~ exited the ~~Milwaukee~~Cleveland, WIOH market.

(B) ~~Sale~~ Property ofis ~~seven~~located ~~industrial~~in ~~condominium~~Greenville, ~~units within one industrial park are being counted as one property sale~~KY.

~~(C) Properties are located in Kansas City, MO and Overland, MO.~~25

Tenant and Lease Information

We have a diverse base of ~~more~~approximately ~~than~~1,000 ~~950~~ tenants engaged in a wide variety of businesses including e-commerce, third-party logistics and transportation, consumer and other manufactured products, retail and consumer services, food and beverage, lumber and building materials, wholesale goods, health services, governmental and other. At December 31, ~~2021~~2022, our leases have a weighted average lease length of 7.34 years and the majority provide for periodic rent increases that are either fixed or based on changes in the Consumer Price Index. Industrial tenants typically have net or semi-net leases and pay as additional rent their percentage of the property's operating costs, including the costs of common area maintenance, insurance, property taxes and utilities. As of December 31, ~~2021~~2022, approximately 98.18% of the GLA of our in-service properties was leased, and no single tenant or group of related tenants accounted for more than 6.81% of our rent revenues, nor did any single tenant or group of related tenants occupy more than 5.86% of the total GLA of our in-service properties.

Leasing Activity

The following table provides a summary of our leasing activity for the year ended December 31, ~~2021~~2022. The table does not include month-to-month leases or leases with terms less than twelve months.

	Number ofLeasesCommenced	Square FeetCommenced(in 000's)	Net Rent PerSquare Foot (A)	Straight Line BasisRent Growth (B)	WeightedAverage LeaseTerm (C)	Lease CostsPer SquareFoot (D)	WeightedAverage TenantRetention (E)
New Leases	~~102~~97	2,~~904~~921	$78.0251	3848.09%	56.91	$6.8306	N/A
Renewal Leases	~~122~~120	65,~~900~~914	$67.3445	2540.63%	45.20	$1.4084	7471.2%
Development / Acquisition Leases	2324	14,~~935~~451	$78.9537	N/A	89.48	N/A	N/A
Total / Weighted Average	~~247~~241	1113,~~739~~286	$67.7799	2943.3%	56.38	$3.0124	7471.2%

(A)Net rent is the average base rent calculated in accordance with GAAP, over the term of the lease.

(B)Straight Line basis rent growth is a ratio of the change in net rent (including straight-line rent adjustments) on a new or renewal lease compared to the net rent (including straight-line rent adjustments) of the comparable lease. New leases where there were no prior comparable leases are excluded.

(C)The lease term is expressed in years. Assumes no exercise of lease renewal options, if any.

(D)Lease costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions paid and costs capitalized for leasing transactions. Lease costs per square foot represent the total turnover costs expected to be incurred on the leases signed during the period and do not reflect actual expenditures for the period. First generation lease costs for development and acquisition properties are excluded.

(E)Represents the weighted average square feet of tenants renewing their respective leases.

The following table provides a summary of our leases that commenced during the year ended December 31, ~~2021~~2022, which included rent concessions during the lease term.

Number ofLeasesWith Rent Concessions

Square Feet(in 000's)

Rent Concessions ~~($)~~

New Leases

7168

2,~~449~~443

$4,~~199~~582

Renewal Leases

114

~~352~~185

~~507~~$89

Development / Acquisition Leases

2118

14,~~766~~113

5$12,~~874~~204

Total

~~103~~90

46,~~567~~741

$1016,~~580~~875

2526

Lease Expirations

Fundamentals for the United States industrial real estate market remained favorable in ~~2021~~2022, despite ~~the~~ continuing, ~~impact~~albeit ofdiminishing, ~~the~~supply ~~COVID-19~~chain ~~pandemic~~disruptions onand ~~general~~a ~~economic~~slowdown ~~activity~~in ~~during~~ the ~~year~~overall ~~and~~U.S. ~~cargo~~economy. ~~backlogs~~Inventory atrebuilding following the ~~nation’s~~peak ~~largest~~of ~~ports.~~the ~~Supply~~COVID-19 ~~chain~~pandemic, ~~activity~~ drove additional demand for logistics space, ~~including~~ from ~~the~~a ~~e-commerce~~range ~~segment~~of industries. New industrial space continued to be developed throughout the year in response to this growth in demand. In ~~2021~~2022, incremental demand exceeded new supply. National vacancy levels remained low and overall industry conditions resulted in an environment supportive of rental rate growth in virtually all of our markets. Based on our recent experience, low levels of vacancy generally throughout our markets and the ~~2022~~2023 forecast of a leading national research company, we expect our average net rental rates for renewal leases on a cash basis to be higher than the expiring rates. For ~~2022~~2023, net rental rates for new leases on a cash basis on average are also expected to be higher than the comparative prior leases, primarily due to continued improvement in market conditions as compared to the conditions prevailing when the comparative leases were signed. The following table shows scheduled lease expirations for all signed leases in our in-service properties as of December 31, ~~2021~~2022.

Year of Expiration (A)	Number ofLeasesExpiring	GLAExpiring (B)	Percentageof GLAExpiring (B)	Annualized Base RentUnderExpiringLeases(In thousands) (C)	Percentageof TotalAnnualizedBase RentExpiring (C)
2022	120	4,392,995	7.5%	24,680	7.2%
2023	127	4,546,740	7.4%	29,455	7.5%
2023	177	8,028,441	13.6%	45,767	13.3%
2024	179	7,356,534	11.9%	44,676	11.4%
2024	182	7,666,326	12.9%	45,382	13.2%
2025	168	6,756,718	11.0%	44,666	11.4%
2025	139	6,168,980	10.4%	37,824	11.0%
2026	162	8,530,320	13.8%	51,590	13.2%
2026	150	8,527,590	14.4%	48,824	14.2%
2027	157	9,058,218	14.7%	58,645	15.0%
2027	69	6,560,729	11.1%	35,088	10.2%
2028	79	6,464,743	10.5%	41,924	10.7%
2028	35	4,381,863	7.4%	26,566	7.7%
2029	45	4,951,050	8.0%	33,733	8.6%
2029	28	3,780,679	6.4%	23,197	6.7%
2030	29	2,687,634	4.4%	18,130	4.6%
2030	23	2,671,807	4.5%	16,163	4.7%
2031	18	3,119,801	5.1%	23,690	6.0%
2031	18	2,883,376	4.9%	21,109	6.1%
2032	21	4,082,700	6.6%	24,864	6.3%
Thereafter	2114	4,~~113~~075,~~406~~605	6.96%	1920,~~449~~740	5.73%
Total	~~962~~999	5961,~~176~~630,~~192~~063	100%	$~~344~~392,~~049~~113	100%

_______________

(A)Includes leases that expire on or after January 1, ~~2022~~2023 and assumes tenants do not exercise existing renewal, termination or purchase options.

(B)Does not include existing vacancies of 1755,~~173,540~~461 aggregate square feet and December 31, ~~2021~~2022 move outs of ~~366~~513,~~389~~854 aggregate square feet.

(C)Annualized base rent is calculated as monthly contractual base rent per the terms of the lease, as of December 31, ~~2021~~2022, multiplied by 12. If free rent is granted, then the first positive rent value is used.


Item 3.			Legal Proceedings

We are involved in legal proceedings arising in the ordinary course of business. All such proceedings, taken together, are not expected to have a material impact on our results of operations, financial position or liquidity.


Item 4.			Mine Safety Disclosures

None.

2627

PART II


Item 5.			Market for Registrant's Common Equity / Partners' Capital, Related Stockholder / Unitholder Matters and Issuer Purchases of Equity Securities

Market Information

The following table sets forth, for the periods indicated, the high and low closing prices per share of the Company's common stock, which trades on the New York Stock Exchange under the trading symbol "FR" and the dividends declared per share for the Company's common stock and the distributions declared per Unit for the Operating Partnership's Units. There is no established public trading market for the Units.

Quarter Ended	Closing High	Closing Low	Dividend/DistributionDeclared
December 31, 2021	$66.48	$53.08	$0.27
December 31, 2022	$50.68	$43.82	$0.295
September 30, 2021	$56.69	$52.08	$0.27
September 30, 2022	$55.62	$44.14	$0.295
June 30, 2021	$53.91	$46.92	$0.27
June 30, 2022	$65.32	$46.13	$0.295
March 31, 2021	$47.39	$40.64	$0.27
March 31, 2022	$65.01	$56.31	$0.295
December 31, 2020	$44.30	$39.75	$0.25
December 31, 2021	$66.48	$53.08	$0.270
September 30, 2020	$44.09	$37.99	$0.25
September 30, 2021	$56.69	$52.08	$0.270
June 30, 2020	$40.93	$30.52	$0.25
June 30, 2021	$53.91	$46.92	$0.270
March 31, 2020	$46.01	$27.09	$0.25
March 31, 2021	$47.39	$40.64	$0.270

As of February 1615, ~~2022~~2023, the Company had ~~333~~327 common stockholders of record. The number of holders does not include individuals or entities who beneficially own shares but whose shares are held of record by a broker or clearing agency, but does include each such broker or clearing agency as one record holder. The Operating Partnership had ~~122~~128 holders of record of Units registered with our transfer agent.

In order to comply with the REIT requirements of the Code, the Company is generally required to make common share distributions and preferred share distributions (other than capital gain distributions) to its shareholders in amounts that together at least equal i) the sum of a) 90% of the Company's "REIT taxable income" computed without regard to the dividends paid deduction and net capital gains and b) 90% of net income (after tax), if any, from foreclosure property, minus ii) certain excess non-cash income.

Our dividend/distribution policy is determined by the Company's Board of Directors and is dependent on multiple factors, including cash flow and capital expenditure requirements, as well as ensuring that the Company meets the minimum distribution requirements set forth in the Code. The Company met the minimum distribution requirements with respect to ~~2021~~2022.

Holders of Units are entitled to receive distributions when, as and if declared by the Company's Board of Directors, after the priority distributions required under the Operating Partnership's partnership agreement have been made with respect to preferred partnership interests in the Operating Partnership out of any funds legally available for that purpose.

During the year ended December 31, ~~2021~~2022, the Operating Partnership issued ~~337~~280,~~685~~081 Limited Partner Units in connection with the issuance of equity compensation, inclusive of Limited Partner Units issued related to dividends accrued on the underlying common stock, to certain employees and directors. See Note 11 to the Consolidated Financial Statements for more information.

Subject to certain lock-up periods, holders of Limited Partner Units can redeem their Units by providing written notification to the General Partner of the Operating Partnership. Unless the General Partner provides notice of a redemption restriction to the holder, redemption must be made within seven business days after receipt of the holder's notice. The redemption can be effectuated, as determined by the General Partner, either by exchanging the Limited Partner Units for shares of common stock of the Company on a one-for-one basis, subject to adjustment, or by paying cash equal to the fair market value of such shares. Prior requests for redemption have generally been fulfilled with shares of common stock of the Company, and the Operating Partnership intends to continue this practice. If each Limited Partner Unit of the Operating Partnership were redeemed as of December 31, ~~2021~~2022, the Operating Partnership could satisfy its redemption obligations by making an aggregate cash payment of approximately $~~194~~147.35 million or by issuing 23,~~935~~055,~~203~~766 shares of the Company's common stock.

2728

Performance Graph

The following graph provides a comparison of the cumulative total stockholder return among the Company, the FTSE NAREIT Equity REIT Total Return Index (the "NAREIT Index") and the Standard & Poor's 500 Index ("S&P 500"). The NAREIT Index represents the performance of our publicly traded REIT peers. The historical information set forth below is not necessarily indicative of future performance.

(A) $100 invested on 12/31/1617 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.

	12/16		12/17		12/18		12/19		12/20		12/21
	12/17		12/18		12/19		12/20		12/21		12/22
FIRST INDUSTRIAL REALTY TRUST, INC.	$	100.00	$	~~115~~94.4837	$	~~108~~139.9705	$	~~160~~144.5786	$	~~167~~232.2924	$	~~268~~173.1934
S&P 500	$	100.00	$	~~121~~95.8362	$	~~116~~125.4972	$	~~153~~148.1785	$	~~181~~191.3558	$	~~233~~156.4189
FTSE NAREIT Equity REITs	$	100.00	$	~~105~~95.2338	$	~~100~~120.3617	$	~~126~~110.4556	$	~~116~~158.3436	$	~~166~~119.6478

_______________

(A) The information provided in this performance graph shall not be deemed to be “"soliciting material,”" to be “"filed”" or to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 unless specifically treated as such.

2829


Item 6.			Selected Financial Data

None.


Item 7.			Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the sections of this Form 10-K titled "Forward-Looking Statements" and ~~"Selected Financial Data" and~~ the Consolidated Financial Statements and Notes thereto appearing elsewhere in this Form 10-K.

Summary of ~~2021~~2022

~~Despite~~Our ~~the COVID-19 pandemic, our~~ operating results remained strong in ~~2021~~2022. Our year end in-service occupancy was 98.18%, which is a ~~240~~70 basis point increase compared to our in-service occupancy at December 31, ~~2020~~2021. Also, during the year ended December 31, ~~2021~~2022, we grew cash rental rates by 1626.27% on new and renewal leases. ~~After~~At ~~resuming~~December ~~speculative~~31, ~~development in the fourth quarter of 2020~~2022, we ~~started~~had 1614 ~~additional~~projects ~~speculative buildings and one build-to-suit building~~ comprising, ~~in the aggregate, 5~~3.86 million square feet of GLA ~~during~~under ~~the~~development ~~year~~with ~~ended~~an ~~December~~estimated ~~31,~~investment ~~2021~~of approximately $556 million. WeAdditionally, ~~continued~~we continue to position ourselves for future development activity by acquiring land located in our target markets. Although the impact of COVID-19 pandemic has had an overall minimal impact on us in 2021, we cannot predict the future impact it may have on our business, future financial condition and operating results.

In ~~2021~~2022, we completed the following significant real estate activities:

•We ~~added~~acquired to11 ~~our~~industrial ~~development~~properties ~~pipeline~~comprised ~~750~~of ~~acres~~approximately 0.5 million square feet of ~~land~~GLA located in our ~~Central~~Northern ~~Florida~~California, ~~Central~~Seattle, ~~New~~South ~~Jersey,~~Florida ~~Central~~and ~~Pennsylvania,~~Southern ~~Denver~~California markets for an aggregate purchase price of $137.1 million, ~~Inland~~excluding ~~Empire~~transaction costs. These properties were 100% leased at December 31, 2022. We additionally acquired three income-producing land parcels in our Northern California, ~~Philadelphia,~~Seattle ~~Phoenix~~ and ~~Seattle~~Southern California markets for an aggregate purchase price of $~~300~~56.05 million, excluding transaction costs.

•We ~~placed~~added ~~in-service~~to ~~seven~~our ~~industrial~~development ~~properties~~pipeline ~~comprising~~116 ~~approximately~~acres ~~0.9 million square feet~~ of ~~GLA~~land located in our ~~Inland~~Central/Eastern ~~Empire~~Pennsylvania, ~~Philadelphia~~Houston, ~~and~~Northern California, South Florida and Southern California markets atfor an ~~estimated~~aggregate ~~total~~purchase ~~cost~~price of $98105.25 million., ~~These~~excluding ~~properties~~transaction ~~were 100% leased at December 31, 2021~~costs.

•We ~~commenced~~placed ~~speculative~~in-service ~~development~~ten ~~of 16~~ industrial ~~buildings~~properties ~~and~~comprising ~~one~~approximately ~~build-to-suit facility totaling 5~~4.81 million square feet of GLA located in our Central/Eastern ~~Florida, Central New Jersey, Central~~ Pennsylvania, Dallas/~~Fort~~ Ft.Worth, ~~Denver~~Nashville, ~~Inland~~New ~~Empire~~Jersey, ~~Nashville,~~ Phoenix, ~~Seattle~~South Florida, and ~~South~~Southern ~~Florida~~California markets at an estimated total cost of $447.8 million. These properties were 100% leased at December 31, 2022.

•We ~~acquired~~commenced ~~four~~speculative ~~industrial~~development ~~properties~~of ~~comprised~~11 ofindustrial ~~approximately~~buildings 0totaling 3.23 million square feet of GLA ~~located~~ in ~~the~~our Central/Eastern ~~Florida~~Pennsylvania, Chicago, Denver, ~~and~~Lehigh Valley, Northern California ~~markets for an aggregate purchase price of $38.7 million~~, ~~excluding~~South ~~transactions~~Florida ~~costs.~~and ~~These~~Southern ~~properties~~California ~~were 56% leased at December 31, 2021~~markets.

•We sold 29nine industrial properties comprising approximately 2.92 million square feet of GLA and one land parcel for gross sales proceeds of $~~243~~178.43 million.

•~~One~~Our ~~of the~~ Joint ~~Ventures~~Venture sold ~~its~~391 ~~remaining~~acres ~~138~~of ~~acres~~land (located in Phoenix for ~~which~~gross ~~the~~proceeds ~~Company~~of ~~was~~$255.3 ~~the~~million. ~~purchaser~~Our ~~and~~pro-rata ~~such~~share ~~land~~of ~~purchase~~gain iswas ~~included~~$74.0 ~~above)~~million ~~for~~and awe ~~sale~~earned ~~price~~an incentive fee of $3127.86 million. WeThese ~~netted~~amounts exclude our ~~share~~minority ofpartner's ~~gain~~share onthat ~~sale~~we consolidate and ~~incentive~~report ~~fees~~in ofour ~~$10.2~~financial ~~million~~statements ~~against~~as ~~the~~Noncontrolling ~~basis of the land~~Interest.

We completed the following financing activities during the year ended December 31, 2021:

•We amended and restated our Unsecured Credit Facility, extending the maturity date to July 7, 2025 and increasing our borrowing capacity thereunder to $750.0 million. The current credit spread under this facility is 32.5 basis points lower than the spread on the prior facility.

•We amended and restated our $200.0 million 2020 Unsecured Term Loan, extending the maturity date to July 7, 2026. The current credit spread under this loan is 65 basis points lower than the spread on the 2020 Unsecured Term Loan.

•We paid off $60.5 million in mortgage loans payable, increasing the percentage of our real estate that was unencumbered to 95.9% at December 31, 2021.

•We issued 2,513,758 shares of our common stock, through "at-the-market" ("ATM") offerings, resulting in net proceeds of $145.8 million.

•We declared an annual cash dividend of $1.08 per common share or Unit, an increase of 8.0% from 2020.

•At December 31, 2021, we had $666.3 million available for additional borrowings under our Unsecured Credit Facility and cash and cash equivalents was $58.6 million.

We completed the following financing activities during the year ended December 31, 2022:

•We paid off $68.0 million in mortgage loans payable, increasing the percentage of our real estate that was unencumbered to 99.3% at December 31, 2022.

•We replaced our $260.0 million term loan that was scheduled to mature in September 2022 with a $425.0 million term loan that matures on October 18, 2027. Based on our current credit ratings and leverage and the related interest rate hedges with a notional value of $425.0 million that we entered into and commenced in October 2022, our all-in interest rate on this term loan is 3.64% at December 31, 2022.

•In November, we drew down the entire principal on a new $300.0 million term loan that matures in August, 2025 unless we extend the term, at our election, pursuant to two, one-year extension options at our election ("2022 Unsecured Term Loan II"). Based on our current credit ratings and leverage and the related interest rate hedges with a notional value of $300.0 million that we entered into and commenced in December 2022, our all-in interest rate on this term loan is 4.88% at December 31, 2022.

•We issued 218,230 shares of our common stock, through "at-the-market" ("ATM") offerings, resulting in net proceeds of $12.8 million.

•We declared an annual cash dividend of $1.18 per common share or Unit, an increase of 9.3% from 2021.

•At December 31, 2022, we had $604.1 million available for additional borrowings under our Unsecured Credit Facility and cash and cash equivalents and restricted cash was $132.2 million, after excluding our Joint Venture minority partner's share of cash and cash equivalents that we consolidate and report in our financial statements.

Results of Operations

Comparison of Year Ended December 31, ~~2021~~2022 to Year Ended December 31, ~~2020~~2021

Our net income was $~~277~~381.26 million and $~~200~~277.2 million for the years ended December 31, ~~2021~~2022 and ~~2020~~2021, respectively.

The tables below summarize our revenues, property expenses and depreciation and other amortization by various categories for the years ended December 31, ~~2021~~2022 and ~~2020~~2021. Same store properties are properties owned prior to January 1, ~~2020~~2021 and held as an in-service property through December 31, ~~2021~~2022 and developments and redevelopments that were placed in service prior to January 1, ~~2020~~2021. Properties which are at least 75% occupied at acquisition are placed in service, unless we anticipate the tenants to move out within the first two years of ownership. Acquisitions that are less than 75% occupied at the date of acquisition, developments and redevelopments are placed in service as they reach the earlier of a) stabilized occupancy (defined as 90% occupied), or b) one year subsequent to acquisition or development/redevelopment construction completion. Acquired properties with occupancy greater than 75% at acquisition, but with tenants that we anticipate will move out within two years of ownership, will be placed in service upon the earlier of reaching 90% occupancy or twelve months after move out. Properties are moved from the same store classification to the redevelopment classification when capital expenditures for a project are estimated to exceed 25% of the undepreciated gross book value of the property. Acquired properties are properties that were acquired subsequent to December 31, ~~2019~~2020 and held as an operating property through December 31, ~~2021~~2022. Sold properties are properties that were sold subsequent to December 31, ~~2019~~2020. (Re)Developments include developments and redevelopments that were not: a) substantially complete 12 months prior to January 1, ~~2020~~2021; or b) stabilized prior to January 1, ~~2020~~2021. Other revenues are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company and other miscellaneous revenues. Other property expenses are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, vacant land expenses and other miscellaneous regional expenses.

During the year ended December 31, 2016, one industrial property, comprising approximately 28 thousand square feet of GLA, was taken out of service due to a fire which caused complete destruction of the building. The results of this property are included in the (re)development classification. During the year ended December 31, 2019, we completed the rebuild of this property and as of December 31, 2019, the property was 100% leased. This property returned to the same store classification in the first quarter 2021.

Our future financial condition and results of operations, including rental revenues, may be impacted by the future acquisition, (re)development and sale of properties. Our future revenues and expenses may vary materially from historical rates.

For the years ended December 31, ~~2021~~2022 and ~~2020~~2021, the average occupancy rates of our same store properties were 9698.80% and 96.60%, respectively.

	2021		2020		$ Change		% Change
	(In thousands)
REVENUES
Same Store Properties	$	419,779	$	395,224	$	24,555	6.2	%
Acquired Properties	13,629		4,224		9,405		222.7	%
Sold Properties	11,617		30,020		(18,403)		(61.3)	%
(Re) Developments	25,112		7,680		17,432		227.0	%
Other	6,153		10,880		(4,727)		(43.4)	%
Total Revenues	$	476,290	$	448,028	$	28,262	6.3	%

Revenues from same store properties increased $24.6 million primarily due to an increase in rental rates and recoverable income from property expenses and a decrease in bad debt reserves taken on tenant accounts receivable, offset by final insurance settlement proceeds of $1.1 million received and recorded in 2020 as revenue related to a property that was destroyed by fire in 2016. Revenues from acquired properties increased $9.4 million due to the 12 industrial properties acquired subsequent to December 31, 2019 totaling approximately 1.7 million square feet of GLA. Revenues from sold properties decreased $18.4 million due to the 58 industrial properties sold subsequent to December 31, 2019 totaling approximately 4.8 million square feet of GLA. Revenues from (re)developments increased $17.4 million due to an increase in occupancy and tenant recoveries. Revenues from other decreased $4.7 million primarily due to final insurance settlement proceeds of $5.4 million received and recorded in 2020 related to a property that was destroyed by fire in 2017, offset by revenues related to acquisitions of partially occupied properties during 2019 that were not yet stabilized at December 31, 2019 and therefore are not yet included in the same store pool.

	2021		2020		$ Change		% Change
	(In thousands)
PROPERTY EXPENSES
Same Store Properties	$	108,074	$	99,434	$	8,640	8.7	%
Acquired Properties	2,219		932		1,287		138.1	%
Sold Properties	2,554		6,161		(3,607)		(58.5)	%
(Re) Developments	7,086		3,590		3,496		97.4	%
Other	11,367		9,078		2,289		25.2	%
Total Property Expenses	$	131,300	$	119,195	$	12,105	10.2	%

Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties increased $8.6 million primarily due to an increase in real estate tax expense, insurance and snow removal costs. Property expenses from acquired properties increased $1.3 million due to properties acquired subsequent to December 31, 2019. Property expenses from sold properties decreased $3.6 million due to properties sold subsequent to December 31, 2019. Property expenses from (re)developments increased $3.5 million primarily due to the substantial completion of developments. Property expenses from other increased $2.3 million primarily due to an increase in certain miscellaneous expenses.

General and administrative expense increased by $1.8 million, or 5.4%, primarily due to an increase in compensation, offset by severance and regional wind-down expenses associated with the closing of our Indianapolis office during the year ended December 31, 2020.

	2021		2020		$ Change		% Change
	2022		2021		$ Change		% Change
	(In thousands)
DEPRECIATION AND OTHER AMORTIZATION
REVENUES
Same Store Properties	$	~~109~~474,~~700~~602	$	~~113~~437,~~833~~117	$	(437,~~133)~~485	(38.6)	%
Acquired Properties	78,~~362~~034		21,~~272~~126		56,~~090~~908		~~224~~613.05	%
Sold Properties	210,~~672~~899		624,~~930~~505		(413,~~258~~606)		(6155.45)	%
(Re) Developments	831,~~849~~232		47,~~085~~338		423,~~764~~894		~~116~~325.6	%
Corporate Furniture, Fixtures and Equipment and Other	2,370		2,518		(148)		(5.9)	%
Other	15,162		6,204		8,958		144.4	%
Total Depreciation and Other Amortization	$	130,953	$	129,638	$	1,315	1.0	%
Total Revenues	$	539,929	$	476,290	$	63,639	13.4	%

~~Depreciation~~Revenues ~~and other amortization~~ from same store properties ~~decreased~~increased $437.15 million primarily due to ~~accelerated~~an ~~depreciation~~increase ~~and~~in ~~amortization~~rental ~~recognized~~rates ~~during~~and ~~the~~recoverable ~~year~~income ~~ended~~from ~~December~~property 31expenses, ~~2020~~an ~~attributable~~increase toin ~~the~~occupancy ~~early~~and ~~termination~~an ofinsurance ~~certain~~settlement ~~tenants'~~gain ~~leases~~of $1.4 ~~Depreciation~~million. ~~and~~Revenues ~~other amortization~~ from acquired properties increased $56.19 million due to the 15 industrial properties acquired subsequent to December 31, ~~2019~~2020 totaling approximately 0.7 ~~Depreciation~~million ~~and~~square ~~other~~feet ~~amortization~~of GLA. Revenues from sold properties decreased $413.36 million due to the 38 industrial properties sold subsequent to December 31, ~~2019~~2020 totaling approximately 5.1 ~~Depreciation~~million ~~and~~square ~~other~~feet ~~amortization~~of GLA. Revenues from (re)developments increased $423.89 million ~~primarily~~ due to an increase in ~~depreciation~~occupancy and ~~amortization~~tenant recoveries. Revenues from other increased $9.0 million due to revenues related to ~~completed~~acquisitions ~~developments.~~that ~~Depreciation~~were ~~from~~not ~~corporate~~yet ~~furniture~~stabilized at December 31, ~~fixtures~~2020 and ~~equipment~~therefore are not yet included in the same store pool, revenues from income-producing land parcels for which our ultimate intent is to redevelop or develop in the future, joint venture development fees and ~~other~~interest ~~remained~~income ~~relatively~~earned ~~unchanged~~on our cash and cash equivalent balances.

For the year ended December 31, 2021, we recognized $150.3 million of gain on sale of real estate related to the sale of 29 industrial properties comprising approximately 2.9 million square feet of GLA and one land parcel. For the year ended December 31, 2020, we recognized $86.8 million of gain on sale of real estate related to the sale of 29 industrial properties comprising approximately 1.9 million square feet of GLA.


	2022		2021		$ Change		% Change
	(In thousands)
PROPERTY EXPENSES
Same Store Properties	$	117,394	$	112,431	$	4,963	4.4	%
Acquired Properties	1,817		419		1,398		333.7	%
Sold Properties	2,405		5,180		(2,775)		(53.6)	%
(Re) Developments	6,659		2,078		4,581		220.5	%
Other	15,388		11,192		4,196		37.5	%
Total Property Expenses	$	143,663	$	131,300	$	12,363	9.4	%

~~Interest~~Property ~~expense~~expenses ~~decreased~~include ~~$7.2~~real ~~million~~estate taxes, orrepairs ~~14.0%~~and maintenance, ~~primarily~~property ~~due~~management, toutilities, aninsurance ~~increase~~and inother ~~capitalized~~property ~~interest~~related ofexpenses. Property expenses from same store properties increased $5.30 million ~~caused~~primarily bydue anto ~~increase~~increases in ~~development~~real ~~projects~~estate ~~eligible~~tax ~~for~~expense, ~~capitalization~~repairs ~~during~~and ~~the~~maintenance, ~~year~~insurance ~~ended~~and ~~December~~property ~~31,~~management ~~2021~~expense. asProperty ~~compared~~expenses from acquired properties increased $1.4 million due to ~~the~~properties ~~year~~acquired ~~ended~~subsequent to December 31, 2020,. ~~and~~Property aexpenses ~~decrease~~from insold ~~the~~properties ~~weighted~~decreased ~~average~~$2.8 ~~interest~~million ~~rate~~due ~~for~~to ~~the~~properties ~~year~~sold ~~ended~~subsequent to December 31, ~~2021~~2020. Property expenses from (~~3.45%~~re)developments asincreased ~~compared~~$4.6 million primarily due to the ~~year~~substantial ~~ended~~completion ~~December~~of ~~31,~~developments. ~~2020~~Property (3expenses from other increased $4.~~65%),~~2 ~~partially~~million ~~offset~~primarily bydue to an increase in ~~the~~real ~~weighted~~estate ~~average~~tax ~~debt~~expense ~~balance~~related ~~outstanding~~to ~~for~~land ~~the~~parcels ~~year~~purchased ~~ended~~in ~~December 31,~~ 2021 ~~($1,631.9~~and ~~million)~~2022 asand ~~compared~~an toincrease ~~the~~in ~~year~~certain ~~ended~~miscellaneous ~~December 31, 2020 ($1,593~~expenses.~~5 million).~~

~~Amortization~~General ofand ~~debt~~administrative ~~issuance~~expense ~~costs~~ remained relatively unchanged.

~~Equity in loss of~~ Joint ~~Ventures~~Venture ~~for~~development ~~the~~services ~~year~~expense ~~ended~~of ~~December 31, 2021 was~~ $0.29 million. ~~However,~~for ~~during~~ the year ended December 31, ~~2021~~2022, weare ~~deferred~~expenses ~~$10.2~~paid ~~million~~to ofa ~~equity~~third inparty ~~income~~to ~~and~~assist ~~incentive~~with ~~fees earned from~~ the ~~sale~~development of ~~the~~properties ~~remaining~~in ~~138 acres of developable land from one of~~ the Joint ~~Ventures~~Venture ~~since the Company was the purchaser of the land. This deferral was netted against the basis of the land acquired. Equity in income of Joint Ventures~~ for ~~the year ended December 31, 2020 was $4.2 million~~ which ~~primarily~~we ~~consists~~earn ofJoint ~~our~~Venture ~~pro-rata share of gain related to the sale of real estate and accrued incentive fees~~Fees.

Income tax expense increased $2.5 million, or 102.6%, primarily due to taxable gains from the sales of real estate from one of our TRSs in 2021.

Comparison of Year Ended December 31, 2020 to Year Ended December 31, 2019


	2022		2021		$ Change		% Change
	(In thousands)
DEPRECIATION AND OTHER AMORTIZATION
Same Store Properties	$	123,688	$	120,262	$	3,426	2.8	%
Acquired Properties	3,962		720		3,242		450.3	%
Sold Properties	2,808		5,182		(2,374)		(45.8)	%
(Re) Developments	12,427		2,139		10,288		481.0	%
Corporate Furniture, Fixtures and Equipment and Other	4,535		2,650		1,885		71.1	%
Total Depreciation and Other Amortization	$	147,420	$	130,953	$	16,467	12.6	%

ADepreciation ~~discussion~~and ofother ~~changes~~amortization infrom ~~our~~same ~~results~~store ofproperties ~~operations~~increased ~~between 2020 and 2019 can~~$3.4 bemillion ~~found~~primarily indue ~~"Item~~to 7improvements -completed ~~Management's~~at ~~Discussion~~our ~~and~~properties ~~Analysis~~subsequent ofto ~~Financial~~December ~~Condition~~31, 2021. Depreciation and ~~Results~~other ofamortization ~~Operations~~from -acquired ~~Comparison~~properties ofincreased ~~Year~~$3.2 ~~Ended~~ million due to properties acquired subsequent to December 31, 2020 . Depreciation and other amortization from sold properties decreased $2.4 million due to ~~Year~~properties ~~Ended~~ sold subsequent to December 31, ~~2019"~~2020. ofDepreciation ~~the Company's~~and ~~Annual~~other ~~Report~~amortization ~~on Form~~from (re)developments increased $10~~-K for~~.3 ~~the~~million ~~fiscal~~primarily ~~year~~due ~~ended~~ to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other increased $1.9 million due to depreciation and amortization related to properties acquired that were not yet stabilized at December 31, 2020 and therefore are not yet included in the same store pool.

For the year ended December 31, 2022, we recognized $128.3 million of gain on sale of real estate related to the sale of nine industrial properties comprising approximately 2.2 million square feet of GLA and one land parcel. For the year ended December 31, 2021, we recognized $150.3 million of gain on sale of real estate related to the sale of 29 industrial properties comprising approximately 2.9 million square feet of GLA and one land parcel.

Interest expense increased $4.9 million, or 11.1%, primarily due to an increase in the weighted average debt balance outstanding for the year ended December 31, 2022 ($1,917.4 million) as compared to the year ended December 31, 2021 ($1,631.9 million), offset by an increase in capitalized interest of $4.2 million caused by an increase in development projects eligible for capitalization during the year ended December 31, 2022 as compared to the year ended December 31, 2021, and a decrease in the weighted average interest rate for the year ended December 31, 2022 (3.41%) as compared to the year ended December 31, 2021 (3.45%).

Amortization of debt issuance costs decreased $0.2 million, or 6.9%, primarily due to mortgages paid off in 2021 and 2022.

Equity in income of Joint Ventures of $114.9 million for the year ended December 31, 2022 includes our pro-rata share of gain on sale of real estate by the Joint Venture of $84.1 million as well as incentive fees of $31.3 million we earned from the Joint Venture. These amounts include our partner's 6% interest in the Joint Venture that we consolidate and report within our financial statements. Equity in loss of Joint Ventures for the year ended December 31, 2021 was $0.2 million. However, during the year ended December 31, 2021, we deferred $10.2 million of equity in income and incentive fees earned from the sale of the remaining 138 acres of developable land from one of the Joint Ventures since the Company was the purchaser of the land. This deferral was netted against the basis of the land acquired.

Income tax expense increased $18.5 million, or 378.8%, primarily due to an increase in taxable gains and incentive fees one of our TRSs recognized from its share of equity in income from the Joint Ventures in the year ended December 31, 2022 compared to the year ended December 31, 2021.

Comparison of Year Ended December 31, 2021 to Year Ended December 31, 2020

A discussion of changes in our results of operations between 2021 and 2020 can be found in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Comparison of Year Ended December 31, 2021 to Year Ended December 31, 2020" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Critical Accounting Policies

A critical accounting policy is one that involves an estimate or assumption that is subjective and requires management judgment about the effect of a matter that is inherently uncertain and material to an entity's financial condition and results of operations. Of the significant accounting policies discussed in Note 2 to the Consolidated Financial Statements, we believe the following policies relate to the more significant judgments and estimates used in the preparation of our consolidated financial statements:

•Acquisitions of Real Estate Assets: We allocate the purchase price of acquired real estate, including real estate acquired as a portfolio, based upon the fair value of the assets acquired and liabilities assumed, which generally consists of land, buildings, tenant improvements, construction in progress, leasing commissions and ~~lease~~deferred ~~intangibles including in-place leases and above market and below market~~ lease intangible assets and liabilities. The purchase price is allocated to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The determination of fair value includes the use of significant assumptions such as land comparables, discount rates, terminal capitalization rates and market rent assumptions. Acquired above and below market lease intangibles are valued based on the present value of the difference between prevailing market rental rates and the in-place rental rates measured over a period equal to the remaining term of the lease for above market leases or the remaining term of the lease plus the term of any below market fixed rate renewal options for below market leases. The purchase price is further allocated to in-place lease values based on an estimate of the lease revenue received during a reasonable lease-up period as if the property was vacant on the date of acquisition.

•Impairment of Real Estate Assets: We review ~~our~~the ~~tangible~~carrying ~~and~~value ~~intangible~~of our long-lived real estate assets ~~held~~ for ~~use for~~ possible impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. The judgments regarding the existence of indicators of impairment are based on the operating performance, market conditions, as well as our ability to hold and our intent with regard to each property. The judgments regarding whether the carrying amounts of these assets may not be recoverable are based on estimates of future undiscounted cash flows from properties which include estimates of future operating performance and market conditions. If any real estate investment is considered permanently impaired, a loss is recorded to reduce the carrying value of the property to its estimated fair value. The impairment assessment and fair value measurement requires the use of estimates and assumptions related to the timing and amounts of cash flow projections, discount rates and terminal capitalization rates.

Liquidity and Capital Resources

At December 31, 2021, our cash and cash equivalents were approximately $58.6 million. We also had $666.3 million available for additional borrowings under our Unsecured Credit Facility as of December 31, 2021.

We have considered our short-term (through December 31, 2022) liquidity needs and the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet these needs. We have a $260.0 million term loan maturing in September 2022 and we have $69.2 million in mortgage loans payable outstanding at December 31, 2021 maturing in September 2022. We expect to satisfy these payment obligations on or prior to the maturity dates through the issuance of other debt or equity securities. With the exception of the $260.0 million term loan and the mortgage maturities, we believe that our principal short-term liquidity needs are to fund normal recurring expenses, property acquisitions, developments, renovations, expansions and other nonrecurring capital improvements, debt service requirements, the minimum distributions required to maintain the Company's REIT qualification under the Code and distributions approved by the Company's Board of Directors. We anticipate that these needs will be met with cash flows provided by operating activities as well as the disposition of select assets. These needs may also be met by the issuance of other debt or equity securities, subject to market conditions or borrowings under our Unsecured Credit Facility.

We expect to meet long-term (after December 31, 2022) liquidity requirements such as property acquisitions, developments, scheduled debt maturities, major renovations, expansions and other nonrecurring capital improvements through long-term unsecured and secured indebtedness, the disposition of select assets and the issuance of additional equity or debt securities, subject to market conditions.

As of February 17, 2022, we had approximately $570.3 million available for additional borrowings under our Unsecured Credit Facility. Our Unsecured Credit Facility contains certain financial covenants including limitations on incurrence of debt and debt service coverage. Our access to borrowings may be limited if we fail to meet any of these covenants. We believe that we were in compliance with our financial covenants as of December 31, 2021, and we anticipate that we will be able to operate in compliance with our financial covenants in 2022. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs.

As of December 31, 2021, our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB/Stable, respectively. A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time by the rating organization. In the event of a downgrade, we believe we would continue to have access to sufficient capital; however, our cost of borrowing would increase and our ability to access certain financial markets may be limited.

Liquidity and Capital Resources

Cash Flow Activity

The following table summarizes our cash flow activity for the Company for the years ended December 31, 2022 and 2021:

Year Ended December 31,

2021

2020

2022

2021

(In thousands)

Net cash provided by operating activities

~~266~~410,~~895~~943

~~240~~266,~~430~~895

Net cash used in investing activities

(~~416~~629,~~823~~108)

(~~251~~416,~~738~~823)

Net cash provided by financing activities

9304,~~050~~503

589,~~248~~050

The following table summarizes our cash flow activity for the Operating Partnership for the years ended December 31, 2022 and 2021:

Year Ended December 31,

2021

2020

2022

2021

(In thousands)

Net cash provided by operating activities

~~267~~410,~~030~~897

~~241~~267,~~081~~030

Net cash used in investing activities

(~~416~~629,~~823~~108)

(~~251~~416,~~738~~823)

Net cash provided by financing activities

8304,~~915~~549

578,~~597~~915

Changes in cash flow for the year ended December 31, ~~2021~~2022, compared to the prior year are described as follows:

Operating Activities: Cash provided by operating activities increased $26144.50 million for the Company (increased $25143.9 million for the Operating Partnership), primarily due to the following:

•increase in ~~net~~distributions ~~operating income~~ from ~~same~~our ~~store~~Joint ~~properties,~~Ventures ~~acquired properties and recently developed properties~~ of $38118.0 million, ~~offset~~in by2022 aas ~~decrease~~compared into ~~net~~2021 ~~operating income~~ due to ~~the~~funds ~~disposition~~received from a sale of real estate offrom ~~$14.8~~our ~~million;~~Joint ~~and~~Venture;

•increase in net operating income from same store properties, acquired properties and recently developed properties of $57.3 million, offset by a decrease in net operating income due to the disposition of real estate of $10.8 million; and

•increase in accounts payable, accrued expenses, other liabilities, rents received in advance and security deposits due to timing of cash payments; offset by:

◦increase in tenant accounts receivable, prepaid expenses and other assets due to timing of cash receipts.

Investing Activities: Cash used in investing activities increased $~~165~~212.13 million, primarily due to the following:

•increase of $~~248~~160.37 million related to the acquisition and development of real estate as well as payments for improvements and leasing commissions in ~~2021~~2022 as compared to ~~2020~~2021; and

•decrease of $659.53 million ~~related~~in tonet proceeds received from the ~~collection~~disposition of ~~insurance~~real ~~settlement~~estate ~~proceeds~~ in ~~2020~~2022 as compared to 2021; offset by:

◦increase in ~~distributions~~net ~~from~~proceeds ~~and~~of a$3.9 ~~decrease~~million inresulting from distributions from and contributions to our Joint Ventures ~~resulting~~ in a2022 ~~net reduction of $42.7 million in 2021~~ as compared to ~~2020~~2021;

◦increase of $301.95 million inrelated ~~net~~to ~~proceeds received from~~ the ~~disposition~~collection of ~~real~~insurance ~~estate~~settlement ~~in 2021 as compared to 2020~~proceeds; and

◦decrease of $164.20 million in escrow ~~and other balances~~deposits.

Financing Activities: Cash provided by financing activities decreased $49.2 million for the Company (decreased $48.7 million for the Operating Partnership), primarily due to the following:

•decrease of $300.0 million related to the issuance of unsecured notes in a private placement in 2020;

•increase in repayments of mortgage loans payable of $34.3 million in 2021 compared to 2020;

•increase in dividend and unit distributions of $12.4 million due to the Company raising the dividend rate in 2021; and

•increase in debt and equity issuance costs of $3.1 million in 2021 compared to 2020; offset by:

◦increase in net borrowings from our Unsecured Credit Facility of $237.0 million in 2021 compared to 2020; and

~~◦increase~~Financing ofActivities: ~~$67.0~~Cash ~~million~~provided ~~related~~by tofinancing ~~net~~activities ~~proceeds~~increased ~~from~~$295.5 ~~the~~million ~~issuance~~for ~~of 2,513,758 shares of~~ the Company's ~~common~~(increased ~~stock~~$295.6 ~~under~~million ~~our~~for ~~ATM~~the inOperating ~~2021~~Partnership), asprimarily ~~compared~~due to the ~~net proceeds from the issuance of 1,842,281 shares of the Company's common stock under our ATM in 2020.~~ following:

~~Contractual~~•increase ~~Obligations~~of $465.0 million in proceeds from refinancing the $260.0 million unsecured term loan with a $425.0 million unsecured term loan in 2022 and ~~Commitments~~$300.0 million related to the new unsecured term loan we entered into in 2022; offset by:

~~The~~◦decrease ~~following~~of ~~table~~$132.9 ~~lists~~million ~~our~~related ~~contractual~~to ~~obligations~~net ~~and~~proceeds ~~commitments~~from the issuance of 218,230 shares of the Company's common stock under our ATM in 2022 as compared to the net proceeds from the issuance of ~~December 31~~2,513,758 shares of the Company's common stock under our ATM in 2021:;

			Payments Due by Period(In thousands)
	Total		Less Than1 Year		1-3 Years		3-5 Years		Over 5 Years
Rent Payments Due on Operating and Ground Leases	$	71,069	$	2,843	$	5,142	$	3,988	$	59,096
Real Estate Development Costs(A)(B)	349,400		349,400		—		—		—
Long Term Debt	1,617,335		329,464		656		279,713		1,007,502
Interest Expense on Long Term Debt(A)(C)	318,467		49,733		85,227		82,572		100,935
Unsecured Credit Facility(D)	4,009		1,141		2,284		584		—
Total	$	2,360,280	$	732,581	$	93,309	$	366,857	$	1,167,533

◦increase in dividend and unit distributions of $15.6 million due to the Company increasing the dividend rate in 2022 as well as an increase in common shares and units outstanding;

~~_______________~~◦decrease in net borrowings under our Unsecured Credit Facility of $15.0 million in 2022 as compared to 2021;

~~(A)Not~~◦increase onin ~~balance~~repayments ~~sheet~~of mortgage loans payable of $5.0 million in 2022 compared to 2021; and

~~(B)Represents~~◦increase ~~estimated~~in ~~remaining~~net ~~payments~~distributions onto ~~the~~noncontrolling ~~completion~~interests of ~~development projects under construction~~$4.4 ~~Estimated~~million ~~remaining~~in ~~costs~~2022 ~~include~~as ~~all~~compared ~~costs necessary~~ to ~~place the properties into service and could extend beyond one year~~2021.

~~(C)Excludes~~Material ~~interest~~Cash ~~expense~~Requirements on our Unsecured Credit Facility. Includes interest expense on our unsecured term loans, inclusive of the impact of interest rate swaps which effectively swap the variable interest rate to a fixed interest rate. Due to the maturity of three interest rate swaps in February 2026, the remaining interest expense payments on our outstanding $200 million unsecured term loan is an estimate based on LIBOR and our current spread as of December 31, 2021, which is an interest rate of 0.94925%.

~~(D)Represents~~At ~~fees~~December 31, on2022, our ~~Unsecured~~combined ~~Credit~~restricted ~~Facility~~cash ~~which~~and ~~has~~cash aand ~~contractual~~cash ~~maturity~~equivalents were $132.2 million, after excluding our Joint Venture partner's share of cash and cash equivalents that we consolidate and report in ~~July~~our ~~2025~~financial statements. We also had $604.1 million available for additional borrowings under our Unsecured Credit Facility as of December 31, 2022.

We have considered our short-term (through December 31, 2023) liquidity needs and the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet these needs. We believe that our principal short-term liquidity needs are to fund normal recurring expenses, property acquisitions, developments, renovations, expansions and other nonrecurring capital improvements, debt service requirements, the minimum distributions required to maintain the Company's REIT qualification under the Code and distributions approved by the Company's Board of Directors. We anticipate that these needs will be met with cash flows provided by operating activities as well as the disposition of select assets. These needs may also be met by the issuance of other debt or equity securities, subject to market conditions or borrowings under our Unsecured Credit Facility.

We expect to meet long-term (after December 31, 2023) liquidity requirements such as property acquisitions, developments, scheduled debt maturities, major renovations, expansions and other nonrecurring capital improvements through long-term unsecured and secured indebtedness, the disposition of select assets and the issuance of additional equity or debt securities, subject to market conditions.

We believe that we were in compliance with our financial covenants as of December 31, 2022, and we anticipate that we will be able to operate in compliance with our financial covenants in 2023. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs and our access to borrowings on our Unsecured Credit Facility may be limited if we fail to meet any of these covenants. Total debt, exclusive of unamortized debt issuance costs and unamortized discounts, at December 31, 2022 and 2021 is detailed below.


	Weighted Average Interest Rate at December 31, 2022	Outstanding Balance at				Weighted Average Maturity in Years at December 31, 2022
		December 31, 2022		December 31, 2021
		(In thousands)
Mortgage Loans Payable, Gross (A)	4.17%	$	10,299	$	79,764	5.7
Senior Unsecured Notes, Gross
Senior Unsecured Bonds (A)	7.58%	48,571		48,571		6.3
Private Placement Notes (A)	3.66%	950,000		950,000		7.0
Subtotal		998,571		998,571
Unsecured Term Loans, Gross
2015 Unsecured Term Loan	N/A	—		260,000		N/A
2021 Unsecured Term Loan (B)	1.84%	200,000		200,000		3.5
2022 Unsecured Term Loan (C)	3.64%	425,000		—		4.8
2022 Unsecured Term Loan II (D)	4.88%	300,000		—		4.6
Subtotal		925,000		460,000
Unsecured Credit Facility (E)	5.16%	143,000		79,000		3.5
Total Debt		$	2,076,870	$	1,617,335

(A) These loans have a fixed interest rate.

(B) The interest rate is based on one-month LIBOR plus a spread of 0.85%. We have interest rate swaps, with an aggregate notional value of $200.0 million, that effectively fix the LIBOR rate that results in an all-in interest rate of 1.84% at December 31, 2022. These interest rate swaps mature in February 2026.

(C) The interest rate is based on one-month SOFR plus a spread of 0.85% plus a SOFR adjustment of 0.10%. We have interest rate swaps, with an aggregate notional value of $425.0 million, that effectively fix the SOFR rate that results in an all-in interest rate of 3.64% at December 31, 2022. These interest rate swaps mature in September 2027.

(D) The interest rate is based on daily SOFR plus a spread of 0.85% plus a SOFR adjustment of 0.10%.We have interest rate swaps, with an aggregate notional value of $300.0 million, that effectively fix the SOFR rate that results in an all-in interest rate of 4.88% at December 31, 2022. These interest rate swaps mature in December 2025 ($150.0 million notional) and August 2027 ($150.0 million notional). Weighted average maturity reflected in the table above assumes we extended the maturity pursuant to two, one-year extension options, subject to certain conditions.

(E) The interest rate is a variable rate based on one-month LIBOR plus 77.5 basis points and a facility fee of 15 basis points. Our balance under our Unsecured Credit Facility changes depending on our cash needs and the interest rate and facility fee are each subject to adjustment based on our leverage and investment grade rating. Weighted average maturity reflected in the table above assumes we extended the maturity pursuant to two, six-month extension options, subject to certain conditions. As of February 15, 2023, we had approximately $610.1 million available for additional borrowings under our Unsecured Credit Facility.

As of December 31, 2022, our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB/Stable, respectively. A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time by the rating organization. In the event of a downgrade, we believe we would continue to have access to sufficient capital; however, our cost of borrowing would increase and our ability to access certain financial markets may be limited.

Our other material cash requirements from known contractual and other obligations as of December 31, 2022 include an estimate of remaining payments on the completion of development projects under construction for the Company and our proportionate share of the Joint Venture of $263.1 million and $25.0 million, respectively, which includes all costs necessary to place the properties into service. The majority of these construction costs will need to be funded in one year or less.

Off-Balance Sheet Arrangements

At December 31, ~~2021~~2022, we had letters of credit and performance bonds outstanding amounting to $2422.96 million in the aggregate. The letters of credit and performance bonds are not reflected as liabilities on our balance sheet. We have no other off-balance sheet arrangements, ~~as defined in Item 303 of Regulation S-K, other than those disclosed on the Contractual Obligations and Commitments table above~~ that have or are reasonably likely to have a current or future effect on our financial condition, results of operation or liquidity and capital resources.

Environmental

We paid approximately $1.0.6 million and $1.10 million during the years ended December 31, ~~2021~~2022 and ~~2020~~2021, respectively, related to environmental expenditures. We estimate ~~2022~~2023 expenditures of approximately $2.20 million which has been accrued at December 31, ~~2021~~2022. We estimate that the aggregate expenditures which need to be expended in ~~2022~~2023 and beyond with regard to currently identified environmental issues will not exceed approximately $5.49 million which has been accrued at December 31, ~~2021~~2022.

Inflation

Prior to 2021, inflation had been low and had a minimal impact on the operating performance of our industrial properties in our markets of operation; however, inflation has significantly increased in 2021 and 2022 and may continue to be elevated or increase further. Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including contractual rent escalations and requirements for tenants to pay their proportionate share of property operating expenses, including common area expenses, utilities, insurance, and real estate taxes, and certain capital expenditures related to the maintenance of our properties, thereby reducing our exposure to increases in property operating expenses resulting from inflation. However, under our leases we typically have exposure to increases in non-reimbursable property operating expenses, including expenses incurred related to vacant premises. In addition, we believe that some of the existing rental rates under our leases subject to renewal are below current market rates for comparable space and that upon renewal or re-leasing, such rates may be increased to be consistent with, or closer to, current market rates, which may also offset our exposure to inflationary expense pressures related to our leased properties. We also have exposure to inflation with respect to our development portfolio, as increases in materials and other costs related to our development activities make it more expensive to develop properties. With respect to our outstanding indebtedness, we periodically evaluate our exposure to interest rate fluctuations, and may continue to enter into derivatives that mitigate, but do not eliminate, the impact of changes in interest rates on our ~~variable~~Unsecured Credit ~~rate loans~~Facility.

Market Risk

The following discussion about our risk-management activities includes "forward-looking statements" that involve risk and uncertainties. Actual results could differ materially from those projected in the forward-looking statements. Our business subjects us to market risk from interest rates, as described below.

Interest Rate Risk

The following analysis presents the hypothetical gain or loss in earnings, cash flows or fair value of the financial instruments and derivative instruments which are held by us at December 31, ~~2021~~2022 that are sensitive to changes in interest rates. While this analysis may have some use as a benchmark, it should not be viewed as a forecast.

In the normal course of business, we also face risks that are either non-financial or non-quantifiable. Such risks principally include credit risk and legal risk and are not represented in the following analysis.

At December 31, 2021, $1,538.3 million or 95.1% of our total debt, excluding unamortized debt issuance costs, was fixed rate debt. As of the same date, $79.0 million or 4.9% of our total debt, excluding unamortized debt issuance costs, was variable rate debt. At December 31, 2020, $1,602.7 million or 100% of our total debt, excluding unamortized debt issuance costs, was fixed rate debt. Fixed rate debt for both years includes $460.0 million of variable-rate debt that has been effectively swapped to a fixed rate through the use of derivative instruments.

For fixed rate debt, changes in interest rates generally affect the fair value of the debt, but not our earnings or cash flows. Conversely, for variable rate debt, changes in the base interest rate used to calculate the all-in interest rate generally do not impact the fair value of the debt, but would affect our future earnings and cash flows. The interest rate risk and changes in fair market value of fixed rate debt generally do not have a significant impact on us until we are required to refinance such debt. See Note 4 to the Consolidated Financial Statements for a discussion of the maturity dates of our various fixed rate debt.

Our variable rate debt is subject to risk based upon prevailing market interest rates. If the LIBOR rates relevant to our variable rate debt were to have increased 10%, we estimate that our interest expense during the years ended December 31, 2021 and 2020 would have increased by approximately $0.01 million and $0.09 million, respectively, based on our average outstanding floating-rate debt during the years ended December 31, 2021 and 2020. Additionally, if weighted average interest rates on our fixed rate debt were to have increased by 10% due to refinancing, interest expense would have increased by approximately $5.6 million and $5.7 million during the years ended December 31, 2021 and 2020.

The Financial Conduct Authority announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after June 30, 2023. As a result, in the U.S., the Federal Reserve Board and the Federal Reserve Bank of New York identified the Secured Overnight Financing Rate as its preferred alternative rate for USD LIBOR in debt and derivative financial instruments. Our Unsecured Credit Facility, our unsecured term loans and related interest rate swaps are indexed to LIBOR. Our loan documents contain provisions that contemplate alternative methods to determine the base rate applicable to our LIBOR-indexed debt to the extent LIBOR-indexed rates are not available. Additionally, no mandatory prepayment or redemption provisions would be triggered under our loan documents in the event that the LIBOR-indexed rates are not available. If our debt agreements and derivative contracts are not transitioned to a preferred alternative rate and LIBOR-indexed rates are discontinued or if the methods of calculating the rates change, interest rates on our current or future indebtedness may be adversely affected. While we currently expect LIBOR-indexed rates to be available until June 30, 2023, it is possible that they will become unavailable prior to that time. We anticipate managing the transition to a preferred alternative rate using the language set out in our agreements, however, future market conditions may not allow immediate implementation of desired modifications and we may incur significant associated costs in doing so. We will continue to monitor and evaluate the potential impact on our debt payments and value of our related debt, however, we are not able to predict when LIBOR-indexed rates will cease to be available.

As of December 31, 2021 and 2020, the estimated fair value of our debt was approximately $1,691.3 million and $1,703.2 million, respectively, based on our estimate of the then-current market interest rates.

The use of derivative financial instruments allows us to manage risks of increases in interest rates with respect to the effect these fluctuations would have on our earnings and cash flows. As of December 31, 2021 and 2020, we had derivative instruments with a notional aggregate amount outstanding of $460.0 million which mitigate our exposure to our unsecured term loans' variable interest rates, which are based upon LIBOR (the "Term Loan Swaps"). We designated the Term Loan Swaps as cash flow hedges. See Note 12 to the Consolidated Financial Statements for a more detailed discussion of these derivative instruments. Currently, we do not enter into financial instruments for trading or other speculative purposes.

At December 31, 2022, $1,933.8 million or 93.1% of our total debt, excluding unamortized debt issuance costs, was fixed rate debt. As of the same date, $143.0 million or 6.9% of our total debt, excluding unamortized debt issuance costs, was variable rate debt. At December 31, 2021, $1,538.3 million or 95.1% of our total debt, excluding unamortized debt issuance costs, was fixed rate debt. As of the same date, $79.0 million or 4.9% of our total debt, excluding unamortized debt issuance costs, was variable rate debt. At December 31, 2022 and 2021, the fixed rate debt amounts include variable rate debt that has been effectively swapped to a fixed rate through the use of derivative instruments with an aggregate notional amount outstanding of $925.0 million and $460.0 million, respectively, that mitigate our exposure to our Unsecured Term Loans' variable interest rates, which are based on LIBOR and SOFR. The use of derivative financial instruments allows us to manage risks of increases in interest rates with respect to the effect these fluctuations would have on our earnings and cash flows. We designated all of the swaps related to our Unsecured Term Loans as cash flow hedges. Currently, we do not enter into financial instruments for trading or other speculative purposes. See Material Cash Requirements for further details on the derivative instruments. As of December 31, 2022 and 2021, the estimated fair value of our debt was approximately $1,945.4 million and $1,691.3 million, respectively, based on our estimate of the then-current market interest rates.

Our variable rate debt is subject to risk based upon prevailing market interest rates. If the LIBOR and SOFR rates relevant to our variable rate debt were to have increased 10%, we estimate that our interest expense during the years ended December 31, 2022 and 2021 would have increased by approximately $0.8 million and $0.01 million, respectively, based on our average outstanding floating-rate debt during the years ended December 31, 2022 and 2021. Additionally, if weighted average interest rates on our fixed rate debt were to have increased by 10% due to refinancing, interest expense would have increased by approximately $5.5 million and $5.6 million during the years ended December 31, 2022 and 2021.

Supplemental Earnings Measure

Investors in and industry analysts following the real estate industry utilize funds from operations ("FFO") and net operating income ("NOI") as supplemental operating performance measures of an equity REIT. Historical cost accounting for real estate assets in accordance with accounting principles generally accepted in the United States of America ("GAAP") implicitly assumes that the value of real estate assets diminishes predictably over time through depreciation. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors prefer to supplement operating results that use historical cost accounting with measures such as FFO and NOI, among others. We provide information related to FFO and same store NOI ("SS NOI") both because such industry analysts are interested in such information, and because our management believes FFO and SS NOI are important performance measures. FFO and SS NOI are factors used by management in measuring our performance, including for purposes of determining the compensation of our executive officers under our ~~2021~~2022 incentive compensation plan.

Neither FFO nor SS NOI should be considered as a substitute for net income, or any other measures derived in accordance with GAAP. Neither FFO nor SS NOI represents cash generated from operating activities in accordance with GAAP and neither should be considered as an alternative to cash flow from operating activities as a measure of our liquidity, nor is either indicative of funds available for our cash needs, including our ability to make cash distributions.

Funds From Operations

The National Association of Real Estate Investment Trusts ("NAREIT") has recognized and defined for the real estate industry a supplemental measure of REIT operating performance, FFO, that excludes historical cost depreciation, among other items, from net income determined in accordance with GAAP. FFO is a non-GAAP financial measure. FFO is calculated by us in accordance with the definition adopted by the Board of Governors of NAREIT and therefore may not be comparable to other similarly titled measures of other companies.

Management believes that the use of FFO available to common stockholders and participating securities, combined with net income (which remains the primary measure of performance), improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful. Management believes that, by excluding gains or losses related to sales of real estate assets, real estate asset depreciation and amortization and impairment of real estate, investors and analysts are able to identify the operating results of the long-term assets that form the core of a REIT's activity and use these operating results for assistance in comparing these operating results between periods or to those of different companies.

The following table shows a reconciliation of net income available to common stockholders and participating securities to the calculation of FFO available to common stockholders and participating securities as follows:

	Year Ended December 31,
	2021		2020		2019		2018		2017
	(In thousands)
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities	$	270,997	$	195,989	$	238,775	$	163,239	$	201,456
Adjustments:
Depreciation and Other Amortization of Real Estate	130,062		128,814		120,516		115,659		115,617
Impairment of Real Estate (A)	—		—		—		2,285		—
Gain on Sale of Real Estate (A)	(150,310)		(86,751)		(124,942)		(80,909)		(131,058)
Gain on Sale of Real Estate from Joint Ventures (A)	—		(4,443)		(16,714)		—		—
Income Tax Provision - Allocable to Gain on Sale of Real Estate, Including Joint Ventures (A)	4,853		2,198		3,095		—		—
Noncontrolling Interest Share of Adjustments	357		(843)		406		(883)		481
Funds from Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities	$	255,959	$	234,964	$	221,136	$	199,391	$	186,496

(A) In December 2018, NAREIT issued a white paper restating the definition of FFO. The restated definition provides an option to include or exclude gains and losses as well as impairment of non-depreciable real estate if the sales are deemed incidental. Prior to January 1, 2019, we included gains and losses on sales and impairment of our non-depreciable real estate in our calculation of NAREIT FFO. On January 1, 2019, we adopted the restated definition of NAREIT FFO on a prospective basis and now exclude gains and losses on sales and impairment of our non-depreciable real estate that we deem incidental. We also exclude the same adjustments from our share of net income from unconsolidated joint ventures.


	Year Ended December 31,
	2022		2021		2020		2019		2018
	(In thousands)
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities	$	359,134	$	270,997	$	195,989	$	238,775	$	163,239
Adjustments:
Depreciation and Other Amortization of Real Estate	146,448		130,062		128,814		120,516		115,659
Impairment of Real Estate (A)	—		—		—		—		2,285
Gain on Sale of Real Estate (A)	(128,268)		(150,310)		(86,751)		(124,942)		(80,909)
Gain on Sale of Real Estate from Joint Ventures (A)	(115,024)		—		(4,443)		(16,714)		—
Income Tax Provision - Allocable to Gain on Sale of Real Estate, Including Joint Ventures (A)	23,658		4,853		2,198		3,095		—
Noncontrolling Interest Share of Adjustments	15,222		357		(843)		406		(883)
Funds from Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities	$	301,170	$	255,959	$	234,964	$	221,136	$	199,391

(A) In December 2018, NAREIT issued a white paper restating the definition of FFO. The restated definition provides an option to include or exclude gains and losses as well as impairment of non-depreciable real estate if the sales are deemed incidental. Prior to January 1, 2019, we included gains and losses on sales and impairment of our non-depreciable real estate in our calculation of NAREIT FFO. On January 1, 2019, we adopted the restated definition of NAREIT FFO on a prospective basis and began excluding gains and losses on sales and impairment of our non-depreciable real estate that we deem incidental. We also exclude the same adjustments from our share of net income from unconsolidated joint ventures.

Same Store Net Operating Income

SS NOI is a non-GAAP financial measure that provides a measure of rental operations and, as calculated by us, that does not factor in depreciation and amortization, general and administrative expense, interest expense, equity in income and loss from joint ventures, income tax benefit and provision and gains and losses on the sale of real estate. We define SS NOI as revenues minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses, minus the NOI of properties that are not same store properties and minus the impact of straight-line rent, the amortization of above/below market leases and lease termination fees. As so defined, SS NOI may not be comparable to same store net operating income or similar measures reported by other REITs that define same store properties or NOI differently. The major factors influencing SS NOI are occupancy levels, rental rate increases or decreases and tenant recoveries increases or decreases. Our success depends largely upon our ability to lease space and to recover the operating costs associated with those leases from our tenants.

The following table shows a reconciliation of the same store revenues and property expenses disclosed in the results of operations (and reconciled to revenues and expenses reflected on the statements of operations) to SS NOI for the years ended December 31, ~~2021~~2022 and ~~2020~~2021.

	Year Ended December 31,
	2021		2020
	2022		2021
	(In thousands)
Same Store Revenues	$	~~419~~474,~~779~~602	$	~~395~~437,~~224~~117
Same Store Property Expenses	(~~108~~117,~~074~~394)		(99112,~~434~~431)
Same Store Net Operating Income Before Same Store Adjustments	$	~~311~~357,~~705~~208	$	~~295~~324,~~790~~686
Same Store Adjustments:
Straight-line Rent	(611,~~731~~468)		(411,~~799~~330)
Above (Below) Market Lease Amortization	(~~875~~927)		(1,~~039~~016)
Lease Termination Fees	(~~560~~119)		(~~753~~560)
Same Store Net Operating Income (A)	$	303,539	$	289,199
Same Store Net Operating Income	$	344,694	$	311,780

(A) The year ended December 31, 2020 includes $1.1 million of insurance settlement gain related to a building destroyed by fire in 2016. Excluding this gain, the percent increase to Same Store Net Operating Income would be 5.3% for the year ended December 31, 2021.

Subsequent Events

From January 1, ~~2022~~2023 to February 1715, ~~2022~~2023, we acquired ~~two~~one industrial ~~buildings~~building ~~and one land parcel~~ for ana ~~aggregate~~ purchase price of approximately $216.80 million, excluding transaction costs.


Item 7A.			Quantitative and Qualitative Disclosures About Market Risk

Response to this item is included in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" above.


Item 8.			Financial Statements and Supplementary Data

See Index to Financial Statements and Financial Statement Schedule included in Item 15.


Item 9.			Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

4243


Item 9A.			Controls and Procedures

First Industrial Realty Trust, Inc.

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its periodic reports pursuant to the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including the Company's principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required financial disclosure.

The Company carried out an evaluation, under the supervision and with the participation of management, including the Company's principal executive officer and principal financial officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based upon this evaluation, the Company's principal executive officer and principal financial officer concluded that its disclosure controls and procedures were effective as of the end of the period covered by this report.

Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Management has assessed the effectiveness of the Company's internal control over financial reporting as of December 31, ~~2021~~2022. In making its assessment of internal control over financial reporting, management used the Internal Control-Integrated Framework (2013) set forth by the Committee of Sponsoring Organizations of the Treadway Commission.

Management has concluded that, as of December 31, ~~2021~~2022, the Company's internal control over financial reporting was effective.

The effectiveness of the Company's internal control over financial reporting as of December 31, ~~2021~~2022 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein within Item 15. See Report of Independent Registered Public Accounting Firm.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company's internal control over financial reporting that occurred during the fourth quarter of ~~2021~~2022 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

4344

First Industrial, L.P.

Evaluation of Disclosure Controls and Procedures

The Operating Partnership maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its periodic reports pursuant to the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including the Company's principal executive officer and principal financial officer, on behalf of the Company in its capacity as the general partner of the Operating Partnership, as appropriate, to allow timely decisions regarding required financial disclosure.

The Operating Partnership carried out an evaluation, under the supervision and with the participation of management, including the Company's principal executive officer and principal financial officer, on behalf of the Company in its capacity as the general partner of the Operating Partnership, of the effectiveness of the design and operation of the Operating Partnership's disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based upon this evaluation, the Company's principal executive officer and principal financial officer, on behalf of the Company in its capacity as the general partner of the Operating Partnership, concluded that the Operating Partnership's disclosure controls and procedures were effective as of the end of the period covered by this report.

Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. The Operating Partnership's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Management has assessed the effectiveness of the Operating Partnership's internal control over financial reporting as of December 31, ~~2021~~2022. In making its assessment of internal control over financial reporting, management used the Internal Control-Integrated Framework (2013) set forth by the Committee of Sponsoring Organizations of the Treadway Commission.

Management has concluded that, as of December 31, ~~2021~~2022, the Operating Partnership's internal control over financial reporting was effective.

The effectiveness of the Operating Partnership's internal control over financial reporting as of December 31, ~~2021~~2022 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein within Item 15. See Report of Independent Registered Public Accounting Firm.

Changes in Internal Control Over Financial Reporting

There has been no change in the Operating Partnership's internal control over financial reporting that occurred during the fourth quarter of ~~2021~~2022 that has materially affected, or is reasonably likely to materially affect, the Operating Partnership's internal control over financial reporting.


Item 9B.			Other Information

None.


Item 9C.			Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

4445

PART III


Item 10, 11, 12, 13 and 14.			Directors, Executive Officers and Corporate Governance, Executive Compensation, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters, Certain Relationships and Related Transactions and Director Independence and Principal Accountant Fees and Services

The information required by Item 10, Item 11, Item 12, Item 13 and Item 14 is hereby incorporated or furnished, solely to the extent required by such item, from the Company's definitive proxy statement, which is expected to be filed with the SEC no later than 120 days after the end of the Company's fiscal year. Information from the Company's definitive proxy statement shall not be deemed to be "filed" or "soliciting material," or subject to liability for purposes of Section 18 of the Securities Exchange Act of 1934 to the maximum extent permitted under the Exchange Act.

PART IV


Item 15.			Financial Statements, Financial Statement Schedule, and Exhibits

(a) Financial Statements, Financial Statement Schedule and Exhibits

(1 & 2) See Index to Financial Statements and Financial Statement Schedule.

(3) Exhibits: The Exhibits required by Item 601 of Regulation S-K are listed in the Exhibit Index on page 4647 to 4849 of this report, which is incorporated herein by reference.

EXHIBIT INDEX

Exhibits						Description
3.1						Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.2						Third Amended and Restated Bylaws of the Company, dated May 7, 2015 (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company, filed May 7, 2015, File No. 1-13102)
3.3						Articles of Amendment to the Company's Articles of Incorporation, dated June 20, 1994 (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.4						Articles of Amendment to the Company's Articles of Incorporation, dated May 31, 1996 (incorporated by reference to Exhibit 3.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)
3.5						Articles Supplementary relating to the Company's Junior Participating Preferred Stock, $0.01 par value (incorporated by reference to Exhibit 4.10 of Form S-3 of the Company and First Industrial, L.P. dated September 24, 1997, Registration No. 333-29879)
3.6						Articles of Amendment to the Company's Articles of Incorporation, dated May 12, 2011 (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company filed June 2, 2011, File No. 1-13102)
3.7						Articles of Amendment to the Company's Articles of Incorporation, dated May 9, 2013 (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company filed May 10, 2013, File No. 1-13102)
3.8						Articles of Amendment to the Company's Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company filed May 12, 2017, File No. 001-13102)
3.9						Thirteenth Amended and Restated Limited Partnership Agreement of First Industrial, L.P. (incorporated by reference to Exhibit 3.9 of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, File No. 1-13102)
4.1						Indenture, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)
4.2						Supplemental Indenture No. 1, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $100 million of 7.15% Notes due 2027 (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)
4.3						Supplemental Indenture No. 3 dated October 28, 1997 between First Industrial, L.P. and First Trust National Association providing for the issuance of Medium-Term Notes due Nine Months or more from Date of Issue (incorporated by reference to Exhibit 4.1 of Form 8-K of First Industrial, L.P., dated November 3, 1997, as filed November 3, 1997, File No. 333-21873)
4.4						7.50% Medium-Term Note due 2017 in principal amount of $100 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.19 of the Company's Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)
4.5						Trust Agreement, dated as of May 16, 1997, between First Industrial, L.P. and First Bank National Association, as Trustee (incorporated by reference to Exhibit 4.5 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873)
4.6						7.60% Notes due 2028 in principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.2 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)
4.7						Supplemental Indenture No. 5, dated as of July 14, 1998, between First Industrial, L.P. and U.S. Bank Trust National Association, relating to First Industrial, L.P.'s 7.60% Notes due July 15, 2028 (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)
4.8						Supplemental Indenture No. 11, dated as of May 7, 2007, relating to 5.95% Senior Notes due 2017, by and between the First Industrial, L.P. and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company, filed May 7, 2007, File No. 1-13102)
4.9*						Description of the Registrant's Securities registered pursuant to Section 12 of the Securities Exchange Act of 1934
10.1†						Form of 2013 Long-Term Incentive Program (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company filed June 25, 2013, File No. 1-13102)
10.2†						2014 Stock Incentive Plan (as amended and restated) as of December 31, 2018 (incorporated by reference to Exhibit 10.4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, File No. 1-13102)
10.3†						First Amendment to the 2014 Stock Incentive Plan (amended and restated as of December 31, 2018), dated February 27, 2020 (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed May 7, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)

Exhibits						Description
10.4†						Employment Agreement, dated February 11, 2020, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and Peter E. Baccile (incorporated by reference to Exhibit 10.6 of the Form 10-K of the Company and the Operating Partnership, filed February 13, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.5*†						Form of Time Based LTIP Unit Award Agreement
10.6*†						Form of Time Based Restricted Stock Unit Award Agreement
10.7*†						Form of Performance Based LTIP Unit Award Agreement
10.8*†						Form of Performance Based Stock Unit Award Agreement
10.9†						Executive Change in Control Severance Policy, dated February 11, 2020 (incorporated by reference to Exhibit 10.7 of the Form 10-K of the Company and the Operating Partnership, filed February 13, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.10						Unsecured Term Loan Agreement, dated as of September 11, 2015, among First Industrial, L.P., First Industrial Realty Trust, Inc., Wells Fargo Bank, National Association, PNC Bank, National Association, Regions Bank, U.S. Bank, National Association and the other lenders thereunder (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company filed September 14, 2015, File No. 1-13102)
10.11						First Amendment, dated as of January 26, 2017, to Unsecured Term Loan Agreement, dated as of September 11, 2015, by and among First Industrial, L.P., First Industrial Realty Trust, Inc., certain lenders signatory thereto and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.4 of the Form 8-K of the Company and the Operating Partnership, filed February 23, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.12						Second Amendment, dated as of October 31, 2017, to Unsecured Term Loan Agreement, dated as of September 11, 2015, among First Industrial, L.P., First Industrial Realty Trust, Inc., certain lenders signatory thereto and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.3 of the Form 8-K of the Company and the Operating Partnership, filed November 2, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.13						Third Amendment, dated as of July 7, 2021, to Unsecured Term Loan Agreement, dated as of September 11, 2015, among First Industrial, L.P., First Industrial Realty Trust, Inc., Wells Fargo Bank, National Association and the other lenders party thereto (incorporated by reference to Exhibit 10.3 of the Form 8-K of the Company and the Operating Partnership, filed July 13, 2021, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.14						Note and Guaranty Agreement, dated as of February 21, 2017, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the forms of each of the 4.30% Series A Guaranteed Senior Notes due April 20, 2027 and 4.40% Series B Guaranteed Senior Notes due April 20, 2029) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed February 23, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.15						Note and Guaranty Agreement, dated as of December 12, 2017, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the forms of each of the 3.86% Series C Guaranteed Senior Notes due February 15, 2028 and 3.96% Series D Guaranteed Senior Notes due February 15, 2030) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed December 15, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.16						First Amendment, dated as of December 12, 2017, to Note and Guaranty Agreement, dated as of February 21, 2017, among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (incorporated by reference to Exhibit 10.2 of the Form 8-K of the Company and the Operating Partnership, filed December 15, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.17						Note and Guaranty Agreement, dated as of May 16, 2019, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the form of the 3.97% Series E Guaranteed Senior Notes due July 23, 2029) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed May 20, 2019, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.18						Distribution Agreement, dated as of February 14, 2020, among First Industrial Realty Trust, Inc., First Industrial, L.P., and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed February 14, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.19						Amendment No. 1, dated as of April 28, 2021, to Distribution Agreement, dated as of February 14, 2020, among First Industrial Realty Trust, Inc., First Industrial, L.P., and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.4 of the Form 10-Q of the Company and the Operating Partnership, filed July 23, 2021, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.20*						Amendment No. 2, dated as of October 26, 2021, to Distribution Agreement, dated as of February 14, 2020, among First Industrial Realty Trust, Inc., First Industrial, L.P., and Wells Fargo Securities, LLC
10.21						Note and Guaranty Agreement, dated as of July 7, 2020 by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the form of the 2.74% Series F Guaranteed Senior Notes due September 17, 2030 and the 2.84% Series G Guaranteed Senior Notes due September 17, 2032) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed July 8, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)

EXHIBIT INDEX


Exhibits						Description

3.1						Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)

3.2						Third Amended and Restated Bylaws of the Company, dated May 7, 2015 (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company, filed May 7, 2015, File No. 1-13102)

3.3						Articles of Amendment to the Company's Articles of Incorporation, dated June 20, 1994 (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)

3.4						Articles of Amendment to the Company's Articles of Incorporation, dated May 31, 1996 (incorporated by reference to Exhibit 3.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102)

3.5						Articles Supplementary relating to the Company's Junior Participating Preferred Stock, $0.01 par value (incorporated by reference to Exhibit 4.10 of Form S-3 of the Company and First Industrial, L.P. dated September 24, 1997, Registration No. 333-29879)

3.6						Articles of Amendment to the Company's Articles of Incorporation, dated May 12, 2011 (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company filed June 2, 2011, File No. 1-13102)

3.7						Articles of Amendment to the Company's Articles of Incorporation, dated May 9, 2013 (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company filed May 10, 2013, File No. 1-13102)

3.8						Articles of Amendment to the Company's Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company filed May 12, 2017, File No. 001-13102)

3.9						Thirteenth Amended and Restated Limited Partnership Agreement of First Industrial, L.P. (incorporated by reference to Exhibit 3.9 of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, File No. 1-13102)

4.1						Indenture, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)

4.2						Supplemental Indenture No. 1, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $100 million of 7.15% Notes due 2027 (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102)

4.3						Supplemental Indenture No. 3 dated October 28, 1997 between First Industrial, L.P. and First Trust National Association providing for the issuance of Medium-Term Notes due Nine Months or more from Date of Issue (incorporated by reference to Exhibit 4.1 of Form 8-K of First Industrial, L.P., dated November 3, 1997, as filed November 3, 1997, File No. 333-21873)

4.4						7.50% Medium-Term Note due 2017 in principal amount of $100 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.19 of the Company's Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-13102)

4.5						Trust Agreement, dated as of May 16, 1997, between First Industrial, L.P. and First Bank National Association, as Trustee (incorporated by reference to Exhibit 4.5 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873)

4.6						7.60% Notes due 2028 in principal amount of $200 million issued by First Industrial, L.P. (incorporated by reference to Exhibit 4.2 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)

4.7						Supplemental Indenture No. 5, dated as of July 14, 1998, between First Industrial, L.P. and U.S. Bank Trust National Association, relating to First Industrial, L.P.'s 7.60% Notes due July 15, 2028 (incorporated by reference to Exhibit 4.1 of the Form 8-K of First Industrial, L.P. dated July 15, 1998, File No. 333-21873)

4.8						Supplemental Indenture No. 11, dated as of May 7, 2007, relating to 5.95% Senior Notes due 2017, by and between the First Industrial, L.P. and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company, filed May 7, 2007, File No. 1-13102)

4.9						Description of the Registrant's Securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4.9 of the Form 10-K of the Company and the Operating Partnership, filed February 18, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)

10.1†						Form of 2013 Long-Term Incentive Program (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company filed June 25, 2013, File No. 1-13102)

10.2†						2014 Stock Incentive Plan (as amended and restated) as of December 31, 2018 (incorporated by reference to Exhibit 10.4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, File No. 1-13102)

10.3†						First Amendment to the 2014 Stock Incentive Plan (amended and restated as of December 31, 2018), dated February 27, 2020 (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed May 7, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)

Exhibits						Description
10.4†						Employment Agreement, dated February 11, 2020, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and Peter E. Baccile (incorporated by reference to Exhibit 10.6 of the Form 10-K of the Company and the Operating Partnership, filed February 13, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.5†						Form of Time Based LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.5 of the Form 10-K of the Company and the Operating Partnership, filed February 18, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.6†						Form of Time Based Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.6 of the Form 10-K of the Company and the Operating Partnership, filed February 18, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.7†						Form of Performance Based LTIP Unit Award Agreement (incorporated by reference to Exhibit 10.7 of the Form 10-K of the Company and the Operating Partnership, filed February 18, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.8†						Form of Performance Based Stock Unit Award Agreement (incorporated by reference to Exhibit 10.8 of the Form 10-K of the Company and the Operating Partnership, filed February 18, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.9*†						Form of Time Based LTIP Unit Award Agreement
10.10*†						Form of Time Based Restricted Stock Unit Award Agreement
10.11*†						Form of Performance Based LTIP Unit Award Agreement
10.12*†						Form of Performance Based Stock Unit Award Agreement
10.13†						Executive Change in Control Severance Policy, dated February 11, 2020 (incorporated by reference to Exhibit 10.7 of the Form 10-K of the Company and the Operating Partnership, filed February 13, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.14						Note and Guaranty Agreement, dated as of February 21, 2017, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the forms of each of the 4.30% Series A Guaranteed Senior Notes due April 20, 2027 and 4.40% Series B Guaranteed Senior Notes due April 20, 2029) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed February 23, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.15						Note and Guaranty Agreement, dated as of December 12, 2017, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the forms of each of the 3.86% Series C Guaranteed Senior Notes due February 15, 2028 and 3.96% Series D Guaranteed Senior Notes due February 15, 2030) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed December 15, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.16						First Amendment, dated as of December 12, 2017, to Note and Guaranty Agreement, dated as of February 21, 2017, among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (incorporated by reference to Exhibit 10.2 of the Form 8-K of the Company and the Operating Partnership, filed December 15, 2017, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.17						Note and Guaranty Agreement, dated as of May 16, 2019, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the form of the 3.97% Series E Guaranteed Senior Notes due July 23, 2029) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed May 20, 2019, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.18						Distribution Agreement, dated as of February 14, 2020, among First Industrial Realty Trust, Inc., First Industrial, L.P., and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed February 14, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.19						Amendment No. 1, dated as of April 28, 2021, to Distribution Agreement, dated as of February 14, 2020, among First Industrial Realty Trust, Inc., First Industrial, L.P., and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.4 of the Form 10-Q of the Company and the Operating Partnership, filed July 23, 2021, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.20						Amendment No. 2, dated as of October 26, 2021, to Distribution Agreement, dated as of February 14, 2020, among First Industrial Realty Trust, Inc., First Industrial, L.P., and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.20 of the Form 10-K of the Company and the Operating Partnership, filed February 18, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.21						Note and Guaranty Agreement, dated as of July 7, 2020 by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and the purchasers of the notes party thereto (including the form of the 2.74% Series F Guaranteed Senior Notes due September 17, 2030 and the 2.84% Series G Guaranteed Senior Notes due September 17, 2032) (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed July 8, 2020, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.22						Fourth Amended and Restated Unsecured Revolving Credit Facility Agreement, dated as of July 7, 2021, among First Industrial, L.P., First Industrial Realty Trust, Inc., Wells Fargo Bank, National Association and the other lenders thereunder (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed July 13, 2021, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
10.23						Amended and Restated Unsecured Term Loan Agreement, dated as of July 7, 2021, among First Industrial, L.P., First Industrial Realty Trust, Inc., Wells Fargo Bank, National Association, PNC Bank, National Association, and the other lenders thereunder (incorporated by reference to Exhibit 10.2 of the Form 8-K of the Company and the Operating Partnership, filed July 13, 2021, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
21.1*						Subsidiaries of the Registrants
23.1*						Consent of PricewaterhouseCoopers LLP with respect to First Industrial Realty Trust, Inc.
23.2*						Consent of PricewaterhouseCoopers LLP with respect to First Industrial, L.P.
31.1*						Certification of Principal Executive Officer of First Industrial Realty Trust, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
31.2*						Certification of Principal Financial Officer of First Industrial Realty Trust, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
31.3*						Certification of Principal Executive Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
31.4*						Certification of Principal Financial Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
32.1**						Certification of the Principal Executive Officer and Principal Financial Officer of First Industrial Realty Trust, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**						Certification of the Principal Executive Officer and Principal Financial Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.1*						The following financial statements from First Industrial Realty Trust, Inc.'s and First Industrial L.P.'s Annual Report on Form 10-K for the year ended December 31, 2021, formatted in XBRL: (i) Consolidated Balance Sheets (audited), (ii) Consolidated Statements of Operations (audited), (iii) Consolidated Statements of Comprehensive Income (audited), (iv) Consolidated Statement of Changes in Equity / Consolidated Statement of Changes in Partners' Capital (audited), (v) Consolidated Statements of Cash Flows (audited) and (vi) Notes to Consolidated Financial Statements (audited)
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


Exhibits						Description
10.23						Amended and Restated Unsecured Term Loan Agreement, dated as of July 7, 2021, among First Industrial, L.P., First Industrial Realty Trust, Inc., Wells Fargo Bank, National Association, PNC Bank, National Association, and the other lenders thereunder (incorporated by reference to Exhibit 10.2 of the Form 8-K of the Company and the Operating Partnership, filed July 13, 2021, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)

10.24						Amended and Restated Unsecured Term Loan Agreement, dated as of April 18, 2022 among First Industrial, L.P., First Industrial Realty Trust, Inc., Wells Fargo Bank, National Association, PNC Bank, National Association, Fifth Third Bank, National Association, Regions Bank, U.S. Bank National Association and the other lenders thereunder (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed April 20, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)

10.25						Unsecured Term Loan Agreement, dated as of August 12, 2022 among First Industrial, L.P., First Industrial Realty Trust, Inc., U.S. Bank National Association, Bank of America, N.A., PNC Bank, National Association, Regions Bank and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company and the Operating Partnership, filed August 15, 2022, Company's File No. 1-13102 and Operating Partnership's File No. 333-21873)
21.1*						Subsidiaries of the Registrants

23.1*						Consent of PricewaterhouseCoopers LLP with respect to First Industrial Realty Trust, Inc.

23.2*						Consent of PricewaterhouseCoopers LLP with respect to First Industrial, L.P.

23.3*						Consent of PricewaterhouseCoopers LLP with respect to DRI FR Glendale, LLC

31.1*						Certification of Principal Executive Officer of First Industrial Realty Trust, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

31.2*						Certification of Principal Financial Officer of First Industrial Realty Trust, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

31.3*						Certification of Principal Executive Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

31.4*						Certification of Principal Financial Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

32.1**						Certification of the Principal Executive Officer and Principal Financial Officer of First Industrial Realty Trust, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2**						Certification of the Principal Executive Officer and Principal Financial Officer of First Industrial Realty Trust, Inc., in its capacity as the sole general partner of First Industrial, L.P., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.1*						The following financial statements from First Industrial Realty Trust, Inc.'s and First Industrial L.P.'s Annual Report on Form 10-K for the year ended December 31, 2022, formatted in XBRL: (i) Consolidated Balance Sheets (audited), (ii) Consolidated Statements of Operations (audited), (iii) Consolidated Statements of Comprehensive Income (audited), (iv) Consolidated Statement of Changes in Equity / Consolidated Statement of Changes in Partners' Capital (audited), (v) Consolidated Statements of Cash Flows (audited) and (vi) Notes to Consolidated Financial Statements (audited)

104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

_______________


*			Filed herewith.


**			Furnished herewith.


†			Indicates a compensatory plan or arrangement contemplated by Item 15 a (3) of Form 10-K.


Item 16.			Form 10-K Summary

Not applicable.

4849

FIRST INDUSTRIAL REALTY TRUST, INC.

FIRST INDUSTRIAL, L.P.

INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE

			Page
First Industrial Realty Trust, Inc. and First Industrial, L.P.
Reports of Independent Registered Public Accounting Firm (PCAOB ID 238)			5051
CONSOLIDATED FINANCIAL STATEMENTS
First Industrial Realty Trust, Inc.
Consolidated Balance Sheets as of December 31, 2021 and 2020			56
Consolidated Balance Sheets as of December 31, 2022 and 2021			57
Consolidated Statements of Operations for the Years Ended December 31, 2021, 2020 and 2019			57
Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021 and 2020			58
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2021, 2020 and 2019			58
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021 and 2020			59
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2021, 2020 and 2019			59
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2022, 2021 and 2020			60
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021, 2020 and 2019			60
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020			61
First Industrial, L.P.
Consolidated Balance Sheets as of December 31, 2021 and 2020			62
Consolidated Balance Sheets as of December 31, 2022 and 2021			63
Consolidated Statements of Operations for the Years Ended December 31, 2021, 2020 and 2019			63
Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021 and 2020			64
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2021, 2020 and 2019			64
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021 and 2020			65
Consolidated Statements of Changes in Partners' Capital for the Years Ended December 31, 2021, 2020 and 2019			65
Consolidated Statements of Changes in Partners' Capital for the Years Ended December 31, 2022, 2021 and 2020			66
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021, 2020 and 2019			66
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020			67
First Industrial Realty Trust, Inc. and First Industrial, L.P.
Notes to the Consolidated Financial Statements			6869
1. Organization			6869
2. Summary of Significant Accounting Policies			6970
3. Investment in Real Estate			7677
4. Indebtedness			7778
5. Variable Interest Entities			8081
6. Equity of the Company and Partners' Capital of the Operating Partnership			8182
7. Accumulated Other Comprehensive Income (Loss)			8485
8. Earnings Per Share and Earnings Per Unit ("EPS"/"EPU")			8586
9. Income Taxes			8687
10. Leases			8789
11. Long-Term Compensation			8890
12. Derivative Instruments			9092
13. Related Party Transactions			9193
14. Commitments and Contingencies			9193
15. Subsequent Events			9193
FINANCIAL STATEMENT SCHEDULE
First Industrial Realty Trust, Inc. and First Industrial, L.P.
Schedule III: Real Estate and Accumulated Depreciation at December 31, 2021			92
Schedule III: Real Estate and Accumulated Depreciation at December 31, 2022			105

4950

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of First Industrial Realty Trust, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of First Industrial Realty Trust, Inc. and its subsidiaries (the "Company") as of December 31, ~~2021~~2022 and ~~2020~~2021, and the related consolidated statements of operations, of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, ~~2021~~2022, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, ~~2021~~2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, ~~2021~~2022 and ~~2020~~2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2021~~2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2021~~2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

5051

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Purchase Price Allocation

As described in Notes 2 and 3 to the consolidated financial statements, upon acquisition of a property, management allocates the purchase price of the property based upon the fair value of the assets acquired and liabilities assumed, which generally consists of land, buildings, tenant improvements, construction in progress, leasing commissions and lease intangibles including in-place lease assets and above market and below market lease assets and liabilities. The purchase price is allocated to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The determination of fair value for tangible assets includes the use of significant assumptions such as land comparables, discount rates, terminal capitalization rates and market rent assumptions. The Company acquired ~~four~~11 industrial properties for consideration of approximately $38137.71 million, of which approximately $12102.73 million was recorded to land and $2532.0 million to building and improvements/construction in progress during the year ended December 31, ~~2021~~2022.

The principal considerations for our determination that performing procedures relating to purchase price allocation is a critical audit matter are (i) the significant judgment by management when determining the fair value estimates, which resulted in a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating evidence relating to the fair value of land and building and improvements/construction in progress, including the significant assumptions related to land comparables, discount rates, terminal capitalization rates and market rent; and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.

5152

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the purchase price allocations, including controls over the valuation methods and significant assumptions for the tangible assets, such as land comparables, discount rates, terminal capitalization rates and market rent. These procedures also included, among others, (i) reading the purchase and sales agreements and (ii) testing management’s process for determining the fair value of land and building and improvements/construction in progress, (iii) testing the completeness and accuracy of the data used in the fair value estimates, (iv) evaluating the appropriateness of the valuation methods and (v) evaluating the reasonableness of significant assumptions related to land comparables, discount rates, terminal capitalization rates and market rent. Evaluating the significant assumptions relating to the land comparables, discount rates, terminal capitalization rates and market rent involved obtaining evidence to support the reasonableness of the assumptions, including whether the assumptions used were consistent with evidence obtained in other areas of the audit or third party market data. Professionals with specialized skill and knowledge were used to assist in obtaining audit evidence over land comparables.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

February 1715, ~~2022~~2023

We have served as the Company's auditor since 1993.

5253

Report of Independent Registered Public Accounting Firm

To the Partners of First Industrial, L.P.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of First Industrial, L.P. and its subsidiaries (the "Operating Partnership") as of December 31, ~~2021~~2022 and ~~2020~~2021, and the related consolidated statements of operations, of comprehensive income, of changes in partners' capital and of cash flows for each of the three years in the period ended December 31, ~~2021~~2022, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). We also have audited the Operating Partnership's internal control over financial reporting as of December 31, ~~2021~~2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, ~~2021~~2022 and ~~2020~~2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2021~~2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Operating Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2021~~2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Operating Partnership's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Operating Partnership's consolidated financial statements and on the Operating Partnership's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

5354

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Critical Audit Matters

Purchase Price Allocation

As described in Notes 2 and 3 to the consolidated financial statements, upon acquisition of a property, management allocates the purchase price of the property based upon the fair value of the assets acquired and liabilities assumed, which generally consists of land, buildings, tenant improvements, construction in progress, leasing commissions and lease intangibles including in-place lease assets and above market and below market lease assets and liabilities. The purchase price is allocated to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The determination of fair value for tangible assets includes the use of significant assumptions such as land comparables, discount rates, terminal capitalization rates and market rent assumptions. The Operating Partnership acquired ~~four~~11 industrial properties for consideration of approximately $38137.71 million, of which approximately $12102.73 million was recorded to land and $2532.0 million to building and improvements/construction in progress during the year ended December 31, ~~2021~~2022.

5455

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the purchase price allocations, including controls over the valuation methods and significant assumptions for the tangible assets, such as land comparables, discount rates, terminal capitalization rates and market rent. These procedures also included, among others, (i) reading the purchase and sales agreements and (ii) testing management’s process for determining the fair value of land and building and improvements/construction in progress,(iii) testing the completeness and accuracy of the data used in the fair value estimates, (iv) evaluating the appropriateness of the valuation methods and (v) evaluating the reasonableness of significant assumptions related to land comparables, discount rates, terminal capitalization rates and market rent. Evaluating the significant assumptions relating to the land comparables, discount rates, terminal capitalization rates and market rent involved obtaining evidence to support the reasonableness of the assumptions, including whether the assumptions used were consistent with evidence obtained in other areas of the audit or third party market data. Professionals with specialized skill and knowledge were used to assist in obtaining audit evidence over land comparables.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

February 1715, ~~2022~~2023

We have served as the Operating Partnership's auditor since 1996.

5556

FIRST INDUSTRIAL REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

	December 31, 2021		December 31, 2020
	December 31, 2022		December 31, 2021
	(In thousands, except share and per share data)
ASSETS
Assets:
Investment in Real Estate:
Land	$	1,~~387~~646,~~198~~179	$	1,~~087~~387,~~907~~198
Buildings and Improvements	3,~~020~~442,~~221~~957		23,~~922~~020,~~152~~221
Construction in Progress	~~239~~253,~~025~~903		77239,~~574~~025
Less: Accumulated Depreciation	(~~868~~921,~~296~~480)		(~~832~~868,~~393~~296)
Net Investment in Real Estate	34,~~778~~421,~~148~~559		3,~~255~~778,~~240~~148
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $0 and $7,054	—		15,663
Operating Lease Right-of-Use Assets	24,580		24,927
Operating Lease Right-of-Use Assets	24,927		25,205
Cash and Cash Equivalents	133,244		58,591
Cash and Cash Equivalents	58,591		162,090
Restricted Cash	11,874		189
Restricted Cash	189		37,568
Tenant Accounts Receivable	7,135		5,104
Tenant Accounts Receivable	5,104		5,714
Investment in Joint Ventures	8,822		36,049
Investment in Joint Ventures	36,049		45,697
Deferred Rent Receivable	122,918		98,727
Deferred Rent Receivable	98,727		84,567
Deferred Leasing Intangibles, Net	24,090		21,316
Deferred Leasing Intangibles, Net	21,316		25,211
Prepaid Expenses and Other Assets, Net	200,100		156,047
Prepaid Expenses and Other Assets, Net	156,047		134,983
Total Assets	$	4,954,322	$	4,179,098
Total Assets	$	4,179,098	$	3,791,938
LIABILITIES AND EQUITY
Liabilities:
Indebtedness:
Mortgage Loans Payable, Net	$	7910,~~674~~299	$	~~143~~79,~~879~~674
Senior Unsecured Notes, Net	993,~~021~~742		~~992~~993,~~300~~021
Unsecured Term Loans, Net	~~458~~919,~~325~~260		458,~~462~~325
Unsecured Credit Facility	79143,000		—79,000
Accounts Payable, Accrued Expenses and Other Liabilities	~~153~~178,~~096~~879		~~120~~153,~~292~~096
Operating Lease Liabilities	22,~~592~~266		22,~~826~~592
Deferred Leasing Intangibles, Net	915,~~252~~152		119,~~064~~252
Rents Received in Advance and Security Deposits	98100,~~588~~166		6298,~~092~~588
Dividends and Distributions Payable	3741,~~178~~259		3337,~~703~~178
Total Liabilities	12,~~930~~424,~~726~~023		1,~~844~~930,~~618~~726
Commitments and Contingencies	—		—
Commitments and Contingencies (see Note 14)
Equity:
First Industrial Realty Trust Inc.'s Equity:
Common Stock ($0.01 par value, 225,000,000 shares authorized and 131,747,725 and 129,051,412 shares issued and outstanding)	1,317		1,290
Common Stock ($0.01 par value, 225,000,000 shares authorized and 132,141,503 and 131,747,725 shares issued and outstanding)	1,321		1,317
Additional Paid-in Capital	2,~~376~~401,~~026~~334		2,~~224~~376,~~691~~026
Distributions in Excess of Accumulated Earnings	(178,293)		(306,294)
Retained Earnings (Distributions in Excess of Accumulated Earnings)	23,131		(178,293)
Accumulated Other Comprehensive Loss	(4,238)		(16,953)
Accumulated Other Comprehensive Income (Loss)	33,412		(4,238)
Total First Industrial Realty Trust, Inc.'s Equity	2,~~194~~459,~~812~~198		12,~~902~~194,~~734~~812
Noncontrolling Interests	5371,~~560~~101		4453,~~586~~560
Total Equity	2,~~248~~530,~~372~~299		12,~~947~~248,~~320~~372
Total Liabilities and Equity	$	4,~~179~~954,~~098~~322	$	34,~~791~~179,~~938~~098

The accompanying notes are an integral part of the consolidated financial statements.

5657

FIRST INDUSTRIAL REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands, except per share data)
Revenues:
Lease Revenue	$	~~473~~532,~~236~~237	$	~~437~~473,~~543~~236	$	~~422~~437,~~236~~543
Other Revenue	3,054		10,485		3,748
Joint Venture Fees	1,322		321		590
Total Revenues	476,290		448,028		425,984
Other Revenue	6,370		2,733		9,895
Total Revenues	539,929		476,290		448,028
Expenses:
Property Expenses	~~131~~143,~~300~~663		~~119~~131,~~195~~300		~~116~~119,~~585~~195
General and Administrative	3433,~~610~~972		3234,~~848~~610		2832,~~569~~848
Depreciation and Other Amortization	130,953		129,638		121,229
Joint Venture Development Services Expense	909		—		—
Total Expenses	296,863		281,681		266,383
Depreciation and Other Amortization	147,420		130,953		129,638
Total Expenses	325,964		296,863		281,681
Other Income (Expense):
Gain on Sale of Real Estate	~~150~~128,~~310~~268		86150,~~751~~310		~~124~~86,~~942~~751
Interest Expense	(4449,~~103~~013)		(5144,~~293~~103)		(5051,~~273~~293)
Amortization of Debt Issuance Costs	(3,~~423~~187)		(3,~~428~~423)		(3,~~218~~428)
Total Other Income (Expense)	~~102~~76,~~784~~068		32102,~~030~~784		7132,~~451~~030
Income from Operations Before Equity in (Loss) Income of Joint Ventures and Income Tax Provision	282,211		198,377		231,052
Income from Operations Before Equity in Income (Loss) of Joint Ventures and Income Tax Provision	290,033		282,211		198,377
Equity in (Loss) Income of Joint Ventures	(161)		4,200		16,235
Equity in Income (Loss) of Joint Ventures	114,942		(161)		4,200
Income Tax Provision	(423,~~879~~363)		(24,~~408~~879)		(32,~~406~~408)
Net Income	~~277~~381,~~171~~612		~~200~~277,~~169~~171		~~243~~200,~~881~~169
Less: Net Income Attributable to the Noncontrolling Interests	(622,~~174~~478)		(46,~~180~~174)		(54,~~106~~180)
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities	$	~~270~~359,~~997~~134	$	~~195~~270,~~989~~997	$	~~238~~195,~~775~~989
Basic Earnings Per Share:
Basic and Diluted Earnings Per Share:
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders	$	2.0972	$	12.5309	$	1.8953
Diluted Earnings Per Share:
Weighted Average Shares Outstanding - Basic	132,024		129,688		127,711
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders	$	2.09	$	1.53	$	1.88
Weighted Average Shares Outstanding - Diluted	132,103		129,775		127,904
Weighted Average Shares Outstanding - Basic	129,688		127,711		126,392
Weighted Average Shares Outstanding - Diluted	129,775		127,904		126,691

The accompanying notes are an integral part of the consolidated financial statements.

5758

FIRST INDUSTRIAL REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands)
Net Income	$	~~277~~381,~~171~~612	$	~~200~~277,~~169~~171	$	~~243~~200,~~881~~169
Payments to Settle Derivative Instruments	—		—		(3,149)
Acceleration of Derivative Instruments	—		—		201
Acceleration of Derivative Instruments	—		201		—
Mark-to-Market Gain (Loss) on Derivative Instruments	38,107		12,567		(10,906)
Mark-to-Market Gain (Loss) on Derivative Instruments	12,567		(10,906)		(7,671)
Amortization of Derivative Instruments	410		410		410
Amortization of Derivative Instruments	410		410		233
Comprehensive Income	420,129		290,148		189,874
Comprehensive Income	290,148		189,874		233,294
Comprehensive Income Attributable to Noncontrolling Interests	(23,366)		(6,464)		(3,964)
Comprehensive Income Attributable to Noncontrolling Interests	(6,464)		(3,964)		(4,884)
Comprehensive Income Attributable to First Industrial Realty Trust, Inc.	$	396,763	$	283,684	$	185,910
Comprehensive Income Attributable to First Industrial Realty Trust, Inc.	$	283,684	$	185,910	$	228,410

The accompanying notes are an integral part of the consolidated financial statements.

5859

FIRST INDUSTRIAL REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	CommonStock		AdditionalPaid-inCapital		(Distributionsin Excess ofAccumulatedEarnings) Retained Earnings		~~AccumulatedOtherComprehensiveIncome~~ AccumulatedOtherComprehensive(Loss) Income		NoncontrollingInterests		Total
Balance as of December 31, 2018	$	1,263	$	2,131,556	$	(490,807)	$	3,502	$	34,397	$	1,679,911
Net Income	—		—		238,775		—		5,106		243,881
Other Comprehensive Loss	—		—		—		(10,365)		(222)		(10,587)
Stock Based Compensation Activity	2		4,397		(1,696)		—		1,877		4,580
Common Stock Dividends and Unit Distributions($0.92 Per Share/Unit)	—		—		(117,107)		—		(2,415)		(119,522)
Conversion of Limited Partner Units to Common Stock	5		7,191		—		—		(7,196)		—
Reallocation—Additional Paid-in Capital	—		(2,297)		—		—		2,297		—
Reallocation—Other Comprehensive Income	—		—		—		(20)		20		—
Balance as of December 31, 2019	$	1,270	$	2,140,847	$	(370,835)	$	(6,883)	$	33,864	$	1,798,263
Net Income	—		—		195,989		—		4,180		200,169
Other Comprehensive Loss	—		—		—		(10,079)		(216)		(10,295)
Issuance of Common Stock, Net of Issuance Costs	18		78,331		—		—		—		78,349
Stock Based Compensation Activity	—		3,243		(2,975)		—		7,188		7,456
Common Stock Dividends and Unit Distributions ($1.00 Per Share/Unit)	—		—		(128,473)		—		(2,470)		(130,943)
Common Stock Dividends and Unit Distributions($1.00 Per Share/Unit)	—		—		(128,473)		—		(2,470)		(130,943)
Conversion of Limited Partner Units to Common Stock	2		2,088		—		—		(2,090)		—
Contributions from Noncontrolling Interest	—		—		—		—		4,321		4,321
Contributions from Noncontrolling Interests	—		—		—		—		4,321		4,321
Reallocation—Additional Paid-in Capital	—		182		—		—		(182)		—
Reallocation—Other Comprehensive Income	—		—		—		9		(9)		—
Balance as of December 31, 2020	$	1,290	$	2,224,691	$	(306,294)	$	(16,953)	$	44,586	$	1,947,320
Net Income	—		—		270,997		—		6,174		277,171
Other Comprehensive Income	—		—		—		12,687		290		12,977
Issuance of Common Stock, Net of Issuance Costs	25		145,443		—		—		—		145,468
Stock Based Compensation Activity	1		1,825		(2,294)		—		9,519		9,051
Common Stock Dividends and Unit Distributions ($1.08 Per Share/Unit)			—		(140,702)		—		(2,941)		(143,643)
Conversion of Limited Partner Units to Common Stock	1		1,760		—		—		(1,761)		—
Contributions from Noncontrolling Interest	—		—		—		—		28		28
Contributions from Noncontrolling Interests	—		—		—		—		28		28
Reallocation—Additional Paid-in Capital	—		2,307		—		—		(2,307)		—
Reallocation—Other Comprehensive Income	—		—		—		28		(28)		—
Balance as of December 31, 2021	$	1,317	$	2,376,026	$	(178,293)	$	(4,238)	$	53,560	$	2,248,372
Net Income	—		—		359,134		—		22,478		381,612
Other Comprehensive Income	—		—		—		37,629		888		38,517
Issuance of Common Stock, Net of Issuance Costs	2		12,744		—		—		—		12,746
Stock Based Compensation Activity	1		3,526		(1,483)		—		11,299		13,343
Common Stock Dividends and Unit Distributions ($1.18 Per Share/Unit)			—		(156,227)		—		(3,749)		(159,976)
Conversion of Limited Partner Units to Common Stock	1		2,443		—		—		(2,444)		—
Contributions from Noncontrolling Interests	—		—		—		—		103		103
Distributions to Noncontrolling Interests	—		—		—		—		(4,418)		(4,418)
Reallocation—Additional Paid-in Capital	—		6,595		—		—		(6,595)		—
Reallocation—Other Comprehensive Income	—		—		—		21		(21)		—
Balance as of December 31, 2022	$	1,321	$	2,401,334	$	23,131	$	33,412	$	71,101	$	2,530,299

The accompanying notes are an integral part of the consolidated financial statements.

FIRST INDUSTRIAL REALTY TRUST, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	277,171	$	200,169	$	243,881
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation	107,876		102,533		98,333
Amortization of Debt Issuance Costs	3,423		3,428		3,218
Other Amortization, including Equity Based Compensation	31,181		35,231		28,780
Equity in Loss (Income) of Joint Ventures	161		(4,200)		(16,235)
Distributions from Joint Ventures	—		4,279		15,959
Gain on Sale of Real Estate	(150,310)		(86,751)		(124,942)
Gain on Involuntary Conversion	—		(6,476)		—
Payments to Settle Derivative Instruments	—		—		(3,149)
Straight-line Rental Income and Expense, Net	(16,081)		(8,973)		(10,884)
(Increase) Decrease in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net and Operating Lease Right-of-Use Assets	(472)		3,861		(11,523)
Increase (Decrease) in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits	13,946		(2,671)		22,095
Net Cash Provided by Operating Activities	266,895		240,430		245,533
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of Real Estate	(352,922)		(220,223)		(152,744)
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs	(314,084)		(198,496)		(294,633)
Net Proceeds from Sales of Investments in Real Estate, Including Sales-Type Lease Receivable	234,726		203,864		254,416
Increase in Escrow Deposits	(4,461)		(14,950)		(23,113)
Proceeds from Involuntary Conversion	—		6,476		—
Contributions to and Investments in Joint Ventures	(1,550)		(42,744)		(210)
Distributions from Joint Ventures	21,407		19,938		8,711
Other Investing Activity	61		(5,603)		2,187
Net Cash Used in Investing Activities	(416,823)		(251,738)		(205,386)
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing and Equity Issuance Costs	(6,452)		(3,363)		(954)
Proceeds from the Issuance of Common Stock, Net of Underwriter's Discount	145,760		78,718		—
Tax Paid on Vested Equity Compensation	(5,126)		(5,944)		(4,384)
Common Stock Dividends and Unit Distributions Paid	(139,710)		(127,338)		(117,214)
Repayments on Mortgage Loans Payable	(64,450)		(30,146)		(123,250)
Proceeds from Senior Unsecured Notes	—		300,000		150,000
Proceeds from Unsecured Credit Facility	289,000		247,000		415,000
Repayments on Unsecured Credit Facility	(210,000)		(405,000)		(257,000)
Contributions from Noncontrolling Interests	28		4,321		—
Net Cash Provided by Financing Activities	9,050		58,248		62,198
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(140,878)		46,940		102,345
Cash, Cash Equivalents and Restricted Cash, Beginning of Year	199,658		152,718		50,373
Cash, Cash Equivalents and Restricted Cash, End of Year	$	58,780	$	199,658	$	152,718

FIRST INDUSTRIAL REALTY TRUST, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
FIRST INDUSTRIAL REALTY TRUST, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands)
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS:
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest Paid, Net of Interest Expense Capitalized in Connection with Development Activity	$	44,184	$	48,849	$	47,801
Net Income	$	381,612	$	277,171	$	200,169
Interest Expense Capitalized in Connection with Development Activity	$	12,140	$	6,847	$	5,757
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Income Taxes Paid	$	3,366	$	1,573	$	3,583
Depreciation	119,477		107,876		102,533
Cash Paid for Operating Lease Liabilities	$	3,261	$	2,821	$	2,084
Amortization of Debt Issuance Costs	3,187		3,423		3,428
Supplemental Schedule of Non-Cash Operating Activities:
Other Amortization, Including Equity Based Compensation	32,845		31,181		35,231
Operating Lease Liabilities Arising from Obtaining Right-of-Use Assets	$	819	$	1,341	$	22,871
Equity in (Income) Loss of Joint Ventures	(114,942)		161		(4,200)
Supplemental Schedule of Non-Cash Investing and Financing Activities:
Distributions from Joint Ventures	118,034		—		4,279
Common Stock Dividends and Unit Distributions Payable	$	37,178	$	33,703	$	30,567
Gain on Sale of Real Estate	(128,268)		(150,310)		(86,751)
Exchange of Limited Partnership Units for Common Stock:
Gain on Involuntary Conversion	(1,495)		—		(6,476)
Noncontrolling Interest	$	(1,761)	$	(2,090)	$	(7,196)
Straight-line Rental Income and Expense, Net	(25,962)		(16,081)		(8,973)
Common Stock	1		2		5
(Increase) Decrease in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net	(4,852)		(472)		3,861
Additional Paid-in Capital	1,760		2,088		7,191
Increase (Decrease) in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits	31,307		13,946		(2,671)
Total	$	—	$	—	$	—
Net Cash Provided by Operating Activities	410,943		266,895		240,430
Lease Reclassification from Operating Lease to Sales-Type Lease:
CASH FLOWS FROM INVESTING ACTIVITIES:
Lease Receivable	$	—	$	—	$	54,521
Acquisitions of Real Estate	(305,326)		(352,922)		(220,223)
Land	—		—		(24,803)
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs	(522,368)		(314,084)		(198,496)
Building, Net of Accumulated Depreciation	—		—		(17,845)
Net Proceeds from Sales of Investments in Real Estate, Including Sales-Type Lease Receivable	175,409		234,726		203,864
Deferred Rent Receivable	—		—		(2,073)
Increase in Escrow Deposits	(450)		(4,461)		(14,950)
Other Assets, Net of Accumulated Amortization	—		—		(1,194)
Proceeds from Involuntary Conversion	1,495		—		6,476
Gain on Sale Recognized Due to Lease Reclassification	$	—	$	—	$	8,606
Contributions to and Investments in Joint Ventures	(5,616)		(1,550)		(42,744)
Assumption of Other Assets in Connection with the Acquisition of Real Estate	$	3,611	$	—	$	—
Distributions from Joint Ventures	29,356		21,407		19,938
Assumption of Liabilities in Connection with the Acquisition of Real Estate	$	1,990	$	18,579	$	1,466
Other Investing Activity	(1,608)		61		(5,603)
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate	$	82,526	$	34,008	$	51,107
Net Cash Used in Investing Activities	(629,108)		(416,823)		(251,738)
Tenant Improvements Funded by Tenant	$	28,559	$	—	$	—
CASH FLOWS FROM FINANCING ACTIVITIES:
Write-off of Fully Depreciated Assets	$	(36,799)	$	(45,302)	$	(37,892)
Financing and Equity Issuance Costs	(5,265)		(6,452)		(3,363)
Proceeds from the Issuance of Common Stock, Net of Underwriter's Discount	12,823		145,760		78,718
Tax Paid on Vested Equity Compensation	(2,942)		(5,126)		(5,944)
Common Stock Dividends and Unit Distributions Paid	(155,333)		(139,710)		(127,338)
Repayments on Mortgage Loans Payable	(69,465)		(64,450)		(30,146)
Proceeds from Senior Unsecured Notes	—		—		300,000
Proceeds from Unsecured Term Loans	465,000		—		—
Proceeds from Unsecured Credit Facility	720,000		289,000		247,000
Repayments on Unsecured Credit Facility	(656,000)		(210,000)		(405,000)
Contributions from Noncontrolling Interests	103		28		4,321
Distributions to Noncontrolling Interests	(4,418)		—		—
Net Cash Provided by Financing Activities	304,503		9,050		58,248
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	86,338		(140,878)		46,940
Cash, Cash Equivalents and Restricted Cash, Beginning of Year	58,780		199,658		152,718
Cash, Cash Equivalents and Restricted Cash, End of Year	$	145,118	$	58,780	$	199,658

The accompanying notes are an integral part of the consolidated financial statements.


FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands)
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS:
Interest Paid, Net of Interest Expense Capitalized	$	46,445	$	44,184	$	48,849
Interest Expense Capitalized in Connection with Development Activity and Joint Venture Investment	$	16,298	$	12,140	$	6,847
Income Taxes Paid	$	3,760	$	3,366	$	1,573
Cash Paid for Operating Lease Liabilities	$	3,444	$	3,261	$	2,821
Supplemental Schedule of Non-Cash Operating Activities:
Operating Lease Liabilities Arising from Obtaining Right-of-Use Assets	$	949	$	819	$	1,341
Supplemental Schedule of Non-Cash Investing and Financing Activities:
Common Stock Dividends and Unit Distributions Payable	$	41,259	$	37,178	$	33,703
Exchange of Limited Partnership Units for Common Stock:
Noncontrolling Interest	$	(2,444)	$	(1,761)	$	(2,090)
Common Stock	1		1		2
Additional Paid-in Capital	2,443		1,760		2,088
Total	$	—	$	—	$	—







Assumption of Other Assets in Connection with the Acquisition of Real Estate	$	—	$	3,611	$	—
Assumption of Liabilities in Connection with the Acquisition of Real Estate	$	2,115	$	1,990	$	18,579
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate	$	86,456	$	82,526	$	34,008
Tenant Improvements Funded by Tenant	$	610	$	28,559	$	—
Write-off of Fully Depreciated Assets	$	(35,716)	$	(36,799)	$	(45,302)

The accompanying notes are an integral part of the consolidated financial statements.

FIRST INDUSTRIAL, L.P.

CONSOLIDATED BALANCE SHEETS

	December 31, 2021		December 31, 2020
	December 31, 2022		December 31, 2021
	(In thousands, except Unit data)
ASSETS
Assets:
Investment in Real Estate:
Land	$	1,~~387~~646,~~198~~179	$	1,~~087~~387,~~907~~198
Buildings and Improvements	3,~~020~~442,~~221~~957		23,~~922~~020,~~152~~221
Construction in Progress	~~239~~253,~~025~~903		77239,~~574~~025
Less: Accumulated Depreciation	(~~868~~921,~~296~~480)		(~~832~~868,~~393~~296)
Net Investment in Real Estate (including $277,984 and $245,396 related to consolidated variable interest entities, see Note 5)	3,778,148		3,255,240
Net Investment in Real Estate (including $313,245 and $277,984 related to consolidated variable interest entities, see Note 5)	4,421,559		3,778,148
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $0 and $7,054	—		15,663
Operating Lease Right-of-Use Assets	24,580		24,927
Operating Lease Right-of-Use Assets	24,927		25,205
Cash and Cash Equivalents	133,244		58,591
Cash and Cash Equivalents	58,591		162,090
Restricted Cash	11,874		189
Restricted Cash	189		37,568
Tenant Accounts Receivable	7,135		5,104
Tenant Accounts Receivable	5,104		5,714
Investment in Joint Ventures	8,822		36,049
Investment in Joint Ventures	36,049		45,697
Deferred Rent Receivable	122,918		98,727
Deferred Rent Receivable	98,727		84,567
Deferred Leasing Intangibles, Net	24,090		21,316
Deferred Leasing Intangibles, Net	21,316		25,211
Prepaid Expenses and Other Assets, Net	209,381		165,282
Prepaid Expenses and Other Assets, Net	165,282		144,353
Total Assets	$	4,963,603	$	4,188,333
Total Assets	$	4,188,333	$	3,801,308
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Indebtedness:
Mortgage Loans Payable, Net (including $0 and $6,292 related to consolidated variable interest entities, see Note 5)	$	79,674	$	143,879
Mortgage Loans Payable, Net	$	10,299	$	79,674
Senior Unsecured Notes, Net	993,~~021~~742		~~992~~993,~~300~~021
Unsecured Term Loans, Net	~~458~~919,~~325~~260		458,~~462~~325
Unsecured Credit Facility	79143,000		—79,000
Accounts Payable, Accrued Expenses and Other Liabilities	~~153~~178,~~096~~879		~~120~~153,~~292~~096
Operating Lease Liabilities	22,~~592~~266		22,~~826~~592
Deferred Leasing Intangibles, Net	915,~~252~~152		119,~~064~~252
Rents Received in Advance and Security Deposits	98100,~~588~~166		6298,~~092~~588
Distributions Payable	3741,~~178~~259		3337,~~703~~178
Total Liabilities	12,~~930~~424,~~726~~023		1,~~844~~930,~~618~~726
Commitments and Contingencies	—		—
Commitments and Contingencies (see Note 14)
Partners' Capital:
First Industrial L.P.'s Partners' Capital:
General Partner Units (131,747,725 and 129,051,412 units outstanding)	2,175,549		1,898,635
General Partner Units (132,141,503 and 131,747,725 units outstanding)	2,395,601		2,175,549
Limited Partners Units (2,935,203 and 2,713,142 units outstanding)	81,435		70,435
Limited Partners Units (3,055,766 and 2,935,203 units outstanding)	95,015		81,435
Accumulated Other Comprehensive Loss	(4,331)		(17,308)
Accumulated Other Comprehensive Income (Loss)	34,186		(4,331)
Total First Industrial L.P.'s Partners' Capital	2,~~252~~524,~~653~~802		12,~~951~~252,~~762~~653
Noncontrolling Interests	414,~~954~~778		4,~~928~~954
Total Partners' Capital	2,~~257~~539,~~607~~580		12,~~956~~257,~~690~~607
Total Liabilities and Partners' Capital	$	4,~~188~~963,~~333~~603	$	34,~~801~~188,~~308~~333

The accompanying notes are an integral part of the consolidated financial statements.

6263

FIRST INDUSTRIAL L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands, except per Unit data)
Revenues:
Lease Revenue	$	~~473~~532,~~236~~237	$	~~437~~473,~~543~~236	$	~~422~~437,~~236~~543
Other Revenue	3,054		10,485		3,748
Joint Venture Fees	1,322		321		590
Total Revenues	476,290		448,028		425,984
Other Revenue	6,370		2,733		9,895
Total Revenues	539,929		476,290		448,028
Expenses:
Property Expenses	~~131~~143,~~300~~663		~~119~~131,~~195~~300		~~116~~119,~~585~~195
General and Administrative	3433,~~610~~972		3234,~~848~~610		2832,~~569~~848
Depreciation and Other Amortization	130,953		129,638		121,229
Joint Venture Development Services Expense	909		—		—
Total Expenses	296,863		281,681		266,383
Depreciation and Other Amortization	147,420		130,953		129,638
Total Expenses	325,964		296,863		281,681
Other Income (Expense):
Gain on Sale of Real Estate	~~150~~128,~~310~~268		86150,~~751~~310		~~124~~86,~~942~~751
Interest Expense	(4449,~~103~~013)		(5144,~~293~~103)		(5051,~~273~~293)
Amortization of Debt Issuance Costs	(3,~~423~~187)		(3,~~428~~423)		(3,~~218~~428)
Total Other Income (Expense)	~~102~~76,~~784~~068		32102,~~030~~784		7132,~~451~~030
Income from Operations Before Equity in (Loss) Income of Joint Ventures and Income Tax Provision	282,211		198,377		231,052
Income from Operations Before Equity in Income (Loss) of Joint Ventures and Income Tax Provision	290,033		282,211		198,377
Equity in (Loss) Income of Joint Ventures	(161)		4,200		16,235
Equity in Income (Loss) of Joint Ventures	114,942		(161)		4,200
Income Tax Provision	(423,~~879~~363)		(24,~~408~~879)		(32,~~406~~408)
Net Income	~~277~~381,~~171~~612		~~200~~277,~~169~~171		~~243~~200,~~881~~169
Less: Net Income Attributable to the Noncontrolling Interests	(~~133~~14,093)		(~~235~~133)		(~~253~~235)
Net Income Available to Unitholders and Participating Securities	$	~~277~~367,~~038~~519	$	~~199~~277,~~934~~038	$	~~243~~199,~~628~~934
Basic Earnings Per Unit:
Net Income Available to Unitholders	$	2.1073	$	12.5410	$	1.8954
Diluted Earnings Per Unit:
Net Income Available to Unitholders	$	2.0972	$	12.5309	$	1.8853
Weighted Average Units Outstanding - Basic	~~131~~134,~~740~~229		~~129~~131,~~752~~740		~~128~~129,~~831~~752
Weighted Average Units Outstanding - Diluted	~~132~~134,~~237~~681		~~130~~132,~~127~~237		~~129~~130,~~241~~127

The accompanying notes are an integral part of the consolidated financial statements.

6364

FIRST INDUSTRIAL L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands)
Net Income	$	~~277~~381,~~171~~612	$	~~200~~277,~~169~~171	$	~~243~~200,~~881~~169
Payments to Settle Derivative Instruments	—		—		(3,149)
Acceleration of Derivative Instruments	—		—		201
Acceleration of Derivative Instruments	—		201		—
Mark-to-Market Gain (Loss) on Derivative Instruments	38,107		12,567		(10,906)
Mark-to-Market Gain (Loss) on Derivative Instruments	12,567		(10,906)		(7,671)
Amortization of Derivative Instruments	410		410		410
Amortization of Derivative Instruments	410		410		233
Comprehensive Income	420,129		290,148		189,874
Comprehensive Income	290,148		189,874		233,294
Comprehensive Income Attributable to Noncontrolling Interests	(14,093)		(133)		(235)
Comprehensive Income Attributable to Noncontrolling Interests	(133)		(235)		(253)
Comprehensive Income Attributable to Unitholders	$	406,036	$	290,015	$	189,639
Comprehensive Income Attributable to Unitholders	$	290,015	$	189,639	$	233,041

The accompanying notes are an integral part of the consolidated financial statements.

6465

FIRST INDUSTRIAL, L.P.

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

	GeneralPartnerUnits		LimitedPartnerUnits		~~AccumulatedOtherComprehensiveIncome~~ AccumulatedOtherComprehensive(Loss) Income		Noncontrolling Interests		Total
Balance as of December 31, 2018	$	1,619,342	$	66,246	$	3,574	$	857	$	1,690,019
Net Income	238,522		5,106		—		253		243,881
Other Comprehensive Loss	—		—		(10,587)		—		(10,587)
Stock Based Compensation Activity	2,703		1,877		—		—		4,580
Unit Distributions ($0.92 Per Unit)	(117,107)		(2,415)		—		—		(119,522)
Conversion of Limited Partner Units to General Partner Units	7,196		(7,196)		—		—		—
Contributions from Noncontrolling Interests	—		—		—		32		32
Distributions to Noncontrolling Interests	—		—		—		(119)		(119)
Balance as of December 31, 2019	$	1,750,656	$	63,618	$	(7,013)	$	1,023	$	1,808,284
Net Income	195,745		4,189		—		235		200,169
Other Comprehensive Loss	—		—		(10,295)		—		(10,295)
Contribution of General Partner Units, Net of Issuance Costs	78,349		—		—		—		78,349
Stock Based Compensation Activity	268		7,188		—		—		7,456
Unit Distributions ($1.00 Per Unit)	(128,473)		(2,470)		—		—		(130,943)
Conversion of Limited Partner Units to General Partner Units	2,090		(2,090)		—		—		—
Contributions from Noncontrolling Interests	—		—		—		4,401		4,401
Distributions to Noncontrolling Interests	—		—		—		(731)		(731)
Balance as of December 31, 2020	$	1,898,635	$	70,435	$	(17,308)	$	4,928	$	1,956,690
Net Income	270,855		6,183		—		133		277,171
Other Comprehensive Income	—		—		12,977		—		12,977
Contribution of General Partner Units, Net of Issuance Costs	145,468		—		—		—		145,468
Stock Based Compensation Activity	(468)		9,519		—		—		9,051
Unit Distributions ($1.08 Per Unit)	(140,702)		(2,941)		—		—		(143,643)
Conversion of Limited Partner Units to General Partner Units	1,761		(1,761)		—		—		—
Contributions from Noncontrolling Interests	—		—		—		64		64
Distributions to Noncontrolling Interests	—		—		—		(171)		(171)
Balance as of December 31, 2021	$	2,175,549	$	81,435	$	(4,331)	$	4,954	$	2,257,607
Net Income	359,045		8,474		—		14,093		381,612
Other Comprehensive Income	—		—		38,517		—		38,517
Contribution of General Partner Units, Net of Issuance Costs	12,746		—		—		—		12,746
Stock Based Compensation Activity	2,044		11,299		—		—		13,343
Unit Distributions ($1.18 Per Unit)	(156,227)		(3,749)		—		—		(159,976)
Conversion of Limited Partner Units to General Partner Units	2,444		(2,444)		—		—		—
Contributions from Noncontrolling Interests	—		—		—		242		242
Distributions to Noncontrolling Interests	—		—		—		(4,511)		(4,511)
Balance as of December 31, 2022	$	2,395,601	$	95,015	$	34,186	$	14,778	$	2,539,580

The accompanying notes are an integral part of the consolidated financial statements.

FIRST INDUSTRIAL, L.P.CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	277,171	$	200,169	$	243,881
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation	107,876		102,533		98,333
Amortization of Debt Issuance Costs	3,423		3,428		3,218
Other Amortization, including Equity Based Compensation	31,181		35,231		28,780
Equity in Loss (Income) of Joint Ventures	161		(4,200)		(16,235)
Distributions from Joint Ventures	—		4,279		15,959
Gain on Sale of Real Estate	(150,310)		(86,751)		(124,942)
Gain on Involuntary Conversion	—		(6,476)		—
Payments to Settle Derivative Instruments	—		—		(3,149)
Straight-line Rental Income and Expense, Net	(16,081)		(8,973)		(10,884)
(Increase) Decrease in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net and Operating Lease Right-of-Use Assets	(337)		4,512		(11,436)
Increase (Decrease) in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits	13,946		(2,671)		22,095
Net Cash Provided by Operating Activities	267,030		241,081		245,620
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of Real Estate	(352,922)		(220,223)		(152,744)
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs	(314,084)		(198,496)		(294,633)
Net Proceeds from Sales of Investments in Real Estate, Including Sales-Type Lease Receivable	234,726		203,864		254,416
Increase in Escrow Deposits	(4,461)		(14,950)		(23,113)
Proceeds from Involuntary Conversion	—		6,476		—
Contributions to and Investments in Joint Ventures	(1,550)		(42,744)		(210)
Distributions from Joint Ventures	21,407		19,938		8,711
Other Investing Activity	61		(5,603)		2,187
Net Cash Used in Investing Activities	(416,823)		(251,738)		(205,386)
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing and Equity Issuance Costs	(6,452)		(3,363)		(954)
Contribution of General Partner Units	145,760		78,718		—
Tax Paid on Vested Equity Compensation	(5,126)		(5,944)		(4,384)
Unit Distributions Paid	(139,710)		(127,338)		(117,214)
Contributions from Noncontrolling Interests	64		4,401		32
Distributions to Noncontrolling Interests	(171)		(731)		(119)
Repayments on Mortgage Loans Payable	(64,450)		(30,146)		(123,250)
Proceeds from Senior Unsecured Notes	—		300,000		150,000
Proceeds from Unsecured Credit Facility	289,000		247,000		415,000
Repayments on Unsecured Credit Facility	(210,000)		(405,000)		(257,000)
Net Cash Provided by Financing Activities	8,915		57,597		62,111
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(140,878)		46,940		102,345
Cash, Cash Equivalents and Restricted Cash, Beginning of Year	199,658		152,718		50,373
Cash, Cash Equivalents and Restricted Cash, End of Year	$	58,780	$	199,658	$	152,718

FIRST INDUSTRIAL, L.P.CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
FIRST INDUSTRIAL, L.P.CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands)
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS:
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest Paid, Net of Interest Expense Capitalized in Connection with Development Activity	$	44,184	$	48,849	$	47,801
Net Income	$	381,612	$	277,171	$	200,169
Interest Expense Capitalized in Connection with Development Activity	$	12,140	$	6,847	$	5,757
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Income Taxes Paid	$	3,366	$	1,573	$	3,583
Depreciation	119,477		107,876		102,533
Cash Paid for Operating Lease Liabilities	$	3,261	$	2,821	$	2,084
Amortization of Debt Issuance Costs	3,187		3,423		3,428
Supplemental Schedule of Non-Cash Operating Activities:
Other Amortization, Including Equity Based Compensation	32,845		31,181		35,231
Operating Lease Liabilities Arising from Obtaining Right-of-Use Assets	$	819	$	1,341	$	22,871
Equity in (Income) Loss of Joint Ventures	(114,942)		161		(4,200)
Supplemental Schedule of Non-Cash Investing and Financing Activities:
Distributions from Joint Ventures	118,034		—		4,279
General and Limited Partner Unit Distributions Payable	$	37,178	$	33,703	$	30,567
Gain on Sale of Real Estate	(128,268)		(150,310)		(86,751)
Exchange of Limited Partner Units for General Partner Units:
Gain on Involuntary Conversion	(1,495)		—		(6,476)
Limited Partner Units	$	(1,761)	$	(2,090)	$	(7,196)
Straight-line Rental Income and Expense, Net	(25,962)		(16,081)		(8,973)
General Partner Units	1,761		2,090		7,196
(Increase) Decrease in Tenant Accounts Receivable, Prepaid Expenses and Other Assets, Net	(4,898)		(337)		4,512
Total	$	—	$	—	$	—
Increase (Decrease) in Accounts Payable, Accrued Expenses, Other Liabilities, Rents Received in Advance and Security Deposits	31,307		13,946		(2,671)
Lease Reclassification from Operating Lease to Sales-Type Lease:
Net Cash Provided by Operating Activities	410,897		267,030		241,081
Lease Receivable	$	—	$	—	$	54,521
CASH FLOWS FROM INVESTING ACTIVITIES:
Land	—		—		(24,803)
Acquisitions of Real Estate	(305,326)		(352,922)		(220,223)
Building, Net of Accumulated Depreciation	—		—		(17,845)
Additions to Investment in Real Estate and Non-Acquisition Tenant Improvements and Lease Costs	(522,368)		(314,084)		(198,496)
Deferred Rent Receivable	—		—		(2,073)
Net Proceeds from Sales of Investments in Real Estate, Including Sales-Type Lease Receivable	175,409		234,726		203,864
Other Assets, Net of Accumulated Amortization	—		—		(1,194)
Increase in Escrow Deposits	(450)		(4,461)		(14,950)
Gain on Sale Recognized Due to Lease Reclassification	$	—	$	—	$	8,606
Proceeds from Involuntary Conversion	1,495		—		6,476
Assumption of Other Assets in Connection with the Acquisition of Real Estate	$	3,611	$	—	$	—
Contributions to and Investments in Joint Ventures	(5,616)		(1,550)		(42,744)
Assumption of Liabilities in Connection with the Acquisition of Real Estate	$	1,990	$	18,579	$	1,466
Distributions from Joint Ventures	29,356		21,407		19,938
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate	$	82,526	$	34,008	$	51,107
Other Investing Activity	(1,608)		61		(5,603)
Tenant Improvements Funded by Tenant	$	28,559	$	—	$	—
Net Cash Used in Investing Activities	(629,108)		(416,823)		(251,738)
Write-off of Fully Depreciated Assets	$	36,799	$	(45,302)	$	(37,892)
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing and Equity Issuance Costs	(5,265)		(6,452)		(3,363)
Contribution of General Partner Units	12,823		145,760		78,718
Tax Paid on Vested Equity Compensation	(2,942)		(5,126)		(5,944)
Unit Distributions Paid	(155,333)		(139,710)		(127,338)
Contributions from Noncontrolling Interests	242		64		4,401
Distributions to Noncontrolling Interests	(4,511)		(171)		(731)
Repayments on Mortgage Loans Payable	(69,465)		(64,450)		(30,146)
Proceeds from Senior Unsecured Notes	—		—		300,000
Proceeds from Unsecured Term Loans	465,000		—		—
Proceeds from Unsecured Credit Facility	720,000		289,000		247,000
Repayments on Unsecured Credit Facility	(656,000)		(210,000)		(405,000)
Net Cash Provided by Financing Activities	304,549		8,915		57,597
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	86,338		(140,878)		46,940
Cash, Cash Equivalents and Restricted Cash, Beginning of Year	58,780		199,658		152,718
Cash, Cash Equivalents and Restricted Cash, End of Year	$	145,118	$	58,780	$	199,658

The accompanying notes are an integral part of the consolidated financial statements.


FIRST INDUSTRIAL, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
	Year Ended December 31, 2022		Year Ended December 31, 2021		Year Ended December 31, 2020
	(In thousands)
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS:
Interest Paid, Net of Interest Expense Capitalized	$	46,445	$	44,184	$	48,849
Interest Expense Capitalized in Connection with Development Activity and Joint Venture Investment	$	16,298	$	12,140	$	6,847
Income Taxes Paid	$	3,760	$	3,366	$	1,573
Cash Paid for Operating Lease Liabilities	$	3,444	$	3,261	$	2,821
Supplemental Schedule of Non-Cash Operating Activities:
Operating Lease Liabilities Arising from Obtaining Right-of-Use Assets	$	949	$	819	$	1,341
Supplemental Schedule of Non-Cash Investing and Financing Activities:
General and Limited Partner Unit Distributions Payable	$	41,259	$	37,178	$	33,703
Exchange of Limited Partner Units for General Partner Units:
Limited Partner Units	$	(2,444)	$	(1,761)	$	(2,090)
General Partner Units	2,444		1,761		2,090
Total	$	—	$	—	$	—







Assumption of Other Assets in Connection with the Acquisition of Real Estate	$	—	$	3,611	$	—
Assumption of Liabilities in Connection with the Acquisition of Real Estate	$	2,115	$	1,990	$	18,579
Accounts Payable Related to Construction in Progress and Additions to Investment in Real Estate	$	86,456	$	82,526	$	34,008
Tenant Improvements Funded by Tenant	$	610	$	28,559	$	—
Write-off of Fully Depreciated Assets	$	(35,716)	$	(36,799)	$	(45,302)

The accompanying notes are an integral part of the consolidated financial statements.

FIRST INDUSTRIAL REALTY TRUST, INC. AND FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share and Unit data)

1. Organization

First Industrial Realty Trust, Inc. (the "Company") is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). Unless stated otherwise or the context otherwise requires, the terms "we," "our" and "us" refer to the Company and its subsidiaries, including its operating partnership, First Industrial, L.P. (the "Operating Partnership"), and its consolidated subsidiaries.

We began operations on July 1, 1994. The Company's operations are conducted primarily through the Operating Partnership, of which the Company is the sole general partner (the "General Partner"), with an approximate 97.87% and 97.98% ownership interest ("General Partner Units") at December 31, ~~2021~~2022 and ~~2020~~2021, respectively. The Operating Partnership also conducts operations through several other limited partnerships (the "Other Real Estate Partnerships"), numerous limited liability companies ("LLCs") and certain taxable REIT subsidiaries ("TRSs"), the operating data of which, together with that of the Operating Partnership, is consolidated with that of the Company as presented herein. The Operating Partnership holds at least a 99% limited partnership interest in each of the Other Real Estate Partnerships. The general partners of the Other Real Estate Partnerships are separate corporations, wholly-owned by the Company, each with at least a .01% general partnership interest in the Other Real Estate Partnerships. The Company does not have any significant assets or liabilities other than its investment in the Operating Partnership and its 100% ownership interest in the general partners of the Other Real Estate Partnerships. The Company's noncontrolling interest in the Operating Partnership of approximately 2.23% and 2.12% at December 31, ~~2021~~2022 and ~~2020~~2021, respectively, represents the aggregate partnership interest held by the limited partners thereof ("Limited Partner Units" and together with the General Partner Units, the "Units"). The limited partners of the Operating Partnership are persons or entities who contributed their direct or indirect interests in properties to the Operating Partnership in exchange for common Limited Partner Units of the Operating Partnership and/or recipients of RLP Units of the Operating Partnership (see Note 6) pursuant to the Company's stock incentive plan.

Profits, losses and distributions of the Operating Partnership, the LLCs, the Other Real Estate Partnerships, the TRSs and the Joint Ventures are allocated to the general partner and the limited partners, the members or the shareholders, as applicable, of such entities in accordance with the provisions contained within their respective organizational documents.

As of December 31, ~~2021~~2022, we owned ~~410~~426 industrial properties located in 1918 states, containing an aggregate of approximately 6165.43 million square feet of gross leasable area ("GLA"). Of the ~~410~~426 properties owned on a consolidated basis, none of them are directly owned by the Company.

Any references to the number of industrial properties and square footage in the financial statement footnotes are unaudited.

6869

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements at December 31, ~~2021~~2022 and ~~2020~~2021 and for each of the years ended December 31, ~~2021~~2022, ~~2020~~2021 and ~~2019~~2020 include the accounts and operating results of the Company and the Operating Partnership. All intercompany transactions have been eliminated in consolidation.

Use of Estimates

In order to conform with generally accepted accounting principles ("GAAP"), in preparation of our consolidated financial statements we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of December 31, ~~2021~~2022 and ~~2020~~2021, and the reported amounts of revenues and expenses for each of the years ended December 31, ~~2021~~2022, ~~2020~~2021 and ~~2019~~2020. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short term maturity of these investments. We maintain cash and cash equivalents in banking institutions that may exceed amounts insured by the Federal Deposit Insurance Corporation. We have not realized any losses of such cash investments or accounts and mitigate risk by using nationally recognized banking institutions.

Restricted Cash

Restricted cash includes cash held in escrow in connection with gross proceeds from the sales of certain industrial properties. These sales proceeds will be disbursed as we exchange into properties under Section 1031 of the Code or will be returned to us after the mandatory time period has expired. The carrying amount approximates fair value due to the short term maturity of these investments. For purposes of our consolidated statements of cash flows, changes in restricted cash are aggregated with cash and cash equivalents.

Investment in Real Estate and Depreciation

Investment in real estate is carried at cost, less accumulated depreciation and amortization. We review our properties on a quarterly basis for impairment and provide a provision if impairments exist. To determine if an impairment may exist, we review our properties and identify those that have had either an event of change or event of circumstances warranting further assessment of recoverability (such as a decrease in occupancy, a decline in general market conditions or a change in the expected hold period of an asset or asset group). The judgments regarding the existence of indicators of impairment are based on the operating performance, market conditions, as well as our ability to hold and our intent with regard to each property. If further assessment of recoverability is needed, we estimate the future net cash flows expected to result from the use of the property and its eventual disposition. Estimated future net cash flows are based on estimates of future operating performance and market conditions. If the sum of the expected future net cash flows (undiscounted and without interest charges) is less than the carrying amount of the property or group of properties, we will recognize an impairment loss equal to the amount in which carrying value exceeds the estimated fair value of the property or group of properties. The assessment of fair value requires the use of estimates and assumptions relating to the timing and amounts of cash flow projections, discount rates and terminal capitalization rates.

We generally classify certain properties and related assets and liabilities as held for sale when the sale of an asset has been duly approved by management, a legally enforceable contract has been executed and the buyer's due diligence period, if any, has expired. At such time, the respective assets and liabilities are presented separately on the consolidated balance sheets. Upon held for sale classification, we cease depreciation and value the properties at the lower of depreciated cost or fair value, less costs to dispose.

Interest costs, real estate taxes, compensation costs of development personnel and other directly related costs incurred during construction periods are capitalized ~~and depreciated commencing with the date the property is substantially completed. Upon substantial completion, we reclassify construction in progress~~ to ~~building and tenant improvements. Such costs begin to be capitalized to the~~ development projects from the point we ~~are~~begin undergoing activity necessary to get the development ready for its intended use. ~~and~~Interest ~~cease~~is ~~when~~capitalized using the ~~development~~weighted ~~projects~~average ~~are~~borrowing ~~substantially~~rate ~~completed~~during ~~and~~the ~~held~~construction ~~available~~period. ~~for~~Upon ~~occupancy.~~substantial ~~Interest~~completion, iswe ~~capitalized~~reclassify ~~using~~construction ~~the~~in ~~weighted~~progress ~~average~~to ~~borrowing~~building ~~rate~~and ~~during~~tenant ~~the~~improvements ~~construction~~and ~~period~~commence depreciation.

6970

Depreciation expense is computed using the straight-line method based on the following useful lives:

			Years
Buildings and Improvements			73 to 50
Land Improvements			31 to 1625
Furniture, Fixtures and Equipment			3 to 5
Tenant Improvements			Lease Term

Construction expenditures for tenant improvements, leasehold improvements and leasing commissions (inclusive of incentive compensation costs of personnel directly attributable to executed leases) are capitalized and amortized over the terms of each specific lease. Repairs and maintenance are charged to expense when incurred. Expenditures for improvements are capitalized.

Upon acquisition of a property, we allocate the purchase price of the property based upon the fair value of the assets acquired and liabilities assumed, which generally consists of land, buildings, tenant improvements, construction in progress, leasing commissions and lease intangibles including in-place lease assets and above market and below market lease assets and liabilities. We allocate the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The determination of fair value includes the use of significant assumptions such as land comparables, discount rates, terminal capitalization rates and market rent assumptions. Acquired above and below market lease intangibles are valued based on the present value of the difference between prevailing market rental rates and the in-place rental rates measured over a period equal to the remaining term of the lease for above market leases or the remaining term of the lease plus the term of any below market fixed rate renewal options for below market leases. The value of above and below market lease intangibles, which are included as assets or liabilities in the line item Deferred Leasing Intangibles, Net are amortized as an increase or decrease to rental revenue over the remaining initial lease term, plus the term of any below market fixed rate renewal options of the respective leases.

The purchase price is further allocated to in-place lease values based on an estimate of the lease revenue received during a reasonable lease-up period as if the property was vacant on the date of acquisition. The value of in-place lease intangibles, which are included in the line item Deferred Leasing Intangibles, Net are amortized over the remaining initial lease term (including expected renewal periods) as adjustments to depreciation and other amortization expense. If a tenant fully terminates its lease early, the unamortized portion of the tenant improvements, leasing commissions, above and below market intangibles and the in-place lease value is immediately accelerated and fully amortized on the date of the termination.

As defined by GAAP, a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants. Our typical acquisitions consist of properties whereby substantially all the fair value or gross assets acquired is concentrated in a single asset (land, building, construction in progress and in-place leases) and, therefore, will be accounted for as asset acquisitions, which permits the capitalization of transaction costs to the basis of the acquired property.

7071

Deferred leasing intangibles, net of accumulated amortization, included in our total assets and total liabilities consist of the following:

	December 31,2021		December 31,2020
	December 31,2022		December 31,2021
In-Place Leases	$	1519,~~428~~373	$	1815,~~253~~428
Above Market Leases	1,~~621~~319		1,~~948~~621
Below Market Ground Lease Obligation	1,~~507~~462		1,~~552~~507
Tenant Relationships	21,~~760~~936		32,~~458~~760
Total Included in Total Assets, Net of $24,933 and $24,781 of Accumulated Amortization	$	21,316	$	25,211
Total Included in Total Assets, Net of $28,590 and $24,933 of Accumulated Amortization	$	24,090	$	21,316
Below Market Leases	$	915,~~252~~152	$	119,~~064~~252
Total Included in Total Liabilities, Net of $15,040 and $13,849 of Accumulated Amortization	$	9,252	$	11,064
Total Included in Total Liabilities, Net of $18,004 and $15,040 of Accumulated Amortization	$	15,152	$	9,252

Amortization expense related to in-place leases and tenant relationships was $46,~~498~~098, $84,~~201~~498 and $68,~~303~~201 for the years ended December 31, ~~2021~~2022, ~~2020~~2021 and ~~2019~~2020, respectively. ~~Lease~~For the years ended December 31, 2022, 2021 and 2020, lease revenue increased by $12,~~442~~679, $1,~~962~~442 and $1,~~281~~962, respectively, related to net amortization of above and below market leases. We will recognize net amortization expense related to deferred leasing intangibles over the next five years, for properties owned as of December 31, ~~2021~~2022 as follows:

	EstimatedAmortizationof In-PlaceLeases and TenantRelationships		Estimated NetIncrease toRental RevenuesRelated toAbove and BelowMarket Leases
2022	$	3,870	$	1,353
2023	$	6,127	$	3,746
2023	$	3,325	$	1,101
2024	$	4,449	$	3,074
2024	$	2,648	$	1,120
2025	$	3,265	$	2,283
2025	$	2,082	$	1,029
2026	$	2,316	$	1,613
2026	$	1,697	$	942
2027	$	1,540	$	1,196

Debt Issuance Costs

Debt issuance costs include fees and costs incurred to obtain long-term financing. These fees and costs are being amortized over the terms of the respective loans. Unamortized debt issuance costs are written-off when debt is retired before the maturity date. Debt issuance costs are presented as a direct deduction from the carrying amount of the respective debt liability, consistent with debt discounts, except for the debt issuance costs related to the unsecured credit facility which are included in the line item Prepaid Expenses and Other Assets, Net on the consolidated balance sheets.

Investment in Joint Ventures

Investment in joint ventures represents a noncontrolling equity interest in ~~two~~ joint ~~ventures~~venture arrangements. We have determined to account for our investment in the joint ventures under the equity method of accounting, as we do not have a majority voting interest, operational control or financial control. Control is determined using accounting standards related to the consolidation of joint ventures and variable interest entities ("VIEs"). Under the equity method of accounting, our share of earnings or losses of the joint ventures is reflected in income as earned and contributions or distributions increase or decrease our investment in joint ventures as paid or received, respectively. Differences between our carrying value of our investment in the joint ventures and our underlying equity in such joint ventures are amortized and included as an adjustment to our equity in income (loss). or recognized, either in whole or in part, during the period that real estate assets are sold from the Joint Venture.

OnWe aaccount ~~periodic~~for ~~basis,~~our ~~management~~interests ~~assesses~~in ~~whether there are any indicators that~~ the ~~value~~Joint ofVentures ~~our~~using ~~investment in~~ the ~~joint~~hypothetical ~~ventures~~liquidation ~~may~~at bebook ~~impaired~~value model. AnUnder ~~investment~~this ismethod, ~~impaired~~we ~~only~~record if our ~~estimate~~Equity ofin ~~the~~Income ~~fair~~(Loss) ~~value~~ of ~~the investment~~Joint isVentures ~~less~~based ~~than~~on ~~the~~our ~~carrying~~proportionate ~~value~~share of the ~~investment,~~Joint ~~and~~Venture's ~~such~~earnings ~~decline~~based inon ~~value~~our isownership ~~deemed to be other than temporary. To the extent impairment has occurred~~interest, ~~the~~after ~~loss~~giving ~~shall~~effect beto ~~measured~~incentive asfees ~~the~~which ~~excess~~we ofare ~~the~~entitled ~~carrying~~to ~~value of the investment over the value of the investment~~receive.

7172

We classify distributions received from equity method investments using the cumulative earnings approach. In general, distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceed cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities.

On a periodic basis, management assesses whether there are any indicators that the value of our investments in joint venture arrangements may be impaired. An investment is impaired only if our estimate of the fair value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent an impairment has occurred, the loss shall be measured as the excess of the carrying value of the investment over the value of the investment.

Noncontrolling Interests

Limited Partner Units are reported within Partners' Capital in the Operating Partnership's balance sheet as of December 31, ~~2021~~2022 and ~~2020~~2021 because they are not redeemable for cash or other assets (a) at a fixed or determinable date, (b) at the option of the Unitholder or (c) upon the occurrence of an event that is not solely within the control of the Operating Partnership. Redemption can be effectuated, as determined by the General Partner, either by exchanging the Units for shares of common stock of the Company on a one-for-one basis, subject to adjustment, or by paying cash equal to the fair market value of such shares.

The Operating Partnership is the only significant asset of the Company and economic, fiduciary and contractual means align the interests of the Company and the Operating Partnership. The Company's Board of Directors and officers of the Company direct the Company to act when acting in its capacity as sole general partner of the Operating Partnership. Because of this, the Operating Partnership is deemed to have effective control of the form of redemption consideration. As of December 31, ~~2021~~2022, all criteria were met for the Operating Partnership to control the actions or events necessary to issue the maximum number of the Company's common shares required to be delivered upon redemption of all remaining Limited Partner Units.

Through a wholly-owned TRS of the Operating Partnership, we own a 43% interest in athe ~~joint~~Joint ~~venture~~Venture that is accounted for under the equity method of accounting. Our ownership interest in the ~~joint~~Joint ~~venture~~Venture is held through a partnership with a third party ("Joint Venture II Partnership") ~~with a third party~~. We concluded that we hold the power to direct the activities that most significantly impact the economic performance of the Joint Venture II Partnership. As a result, we consolidate the Joint Venture II Partnership, which holds an aggregate 49% interest in the Joint Venture ~~II (as defined in Note 5)~~ and reflect the third party's interest in the joint venture as Noncontrolling Interests within the financial statements of the Company and Operating Partnership. See Note 5.

Stock Based Compensation

We measure compensation cost for all stock-based awards at fair value on the date of grant and recognize compensation expense over the period during which an employee is required to provide service in exchange for the award, generally the vesting period.

Revenue Recognition

We lease our properties to tenants under agreements that are classified as leases. We recognize, as rental income, the total minimum lease payments under the leases on a straight-line basis over the lease term. Generally, under the terms of our leases, the majority of property operating expenses, including real estate taxes, insurance, and other property operating expenses are recovered from our tenants and recognized as tenant recovery revenue in the same period we incur the related expenses. As the timing and straight-line pattern of transfer to the lessee for rental revenue and the associated rental recoveries are the same and our leases qualify as operating leases, we account for the present rental revenue and tenant recovery revenue as a single component under Lease Revenue.

We assess the collectibility of lease receivables (including future minimum rental payments) both at commencement and throughout the lease term. If we conclude that collection of lease payments is not probable at lease commencement, we will recognize lease payments only as they are received. If our assessment of collectibility changes during the lease term, any difference between the revenue that would have been received under the straight-line method and the lease payments that have been collected will be recognized as a current period adjustment to Lease Revenue and revenue will subsequently be accounted for on a cash basis until such time that collection of future rent is deemed probable.

If a lease provides for tenant improvements, we determine whether we or the tenant is the owner of the tenant improvements. When we are the owner of the tenant improvements, any tenant improvements funded by the tenant are treated as lease payments which are deferred and amortized as revenue over the lease term. When the tenant is the owner of the tenant improvements, we record any tenant improvement allowance funded as a lease inducement and amortize it as a reduction of revenue over the lease term.

We recognize fees received from tenants to fully terminate their lease prior to the contractual end date on a straight-line basis from the notification date through the revised lease end date.

Property Expenses

Property expenses include real estate taxes, utilities, repairs and maintenance, property insurance as well as the cost of our property management personnel and other costs of managing our properties. Several of our leases require tenants to pay real estate taxes directly to taxing authorities. We exclude from property expenses certain lessor costs, such as real estate taxes, that the ~~lessor~~we contractually ~~requires~~require the ~~lessee~~tenant to pay directly to a third party on ~~its~~our behalf. The amounts paid directly to third parties by ~~lessee's~~tenants for lessor costs are also excluded from lease revenues. ~~Several of our leases require tenants to pay real estate taxes directly to taxing authorities.~~

Lessee Accounting

We are a lessee on a limited number of ground and office leases and these operating lease agreements are included within Operating Lease Right-of-Use Assets ("ROU") and Operating Lease Liabilities on the consolidated balance sheets. We elected the practical expedient to combine our lease and related nonlease components for our lessee building leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Our variable lease payments consist of nonlease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As most of our leases do not provide an implicit rate, we use information available at lease commencement to estimate an appropriate incremental borrowing rate on a fully-collateralized basis to determine the present value of lease payments. ROU assets also include any future minimum lease payments made and exclude lease incentives. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term.

Gain on Sale of Real Estate

Asset sales are generally recognized when control of the asset being sold is transferred to the buyer. As the assets are sold, their costs and related accumulated depreciation, if any, are derecognized with resulting gains or losses reflected in net income. Estimated future costs to be incurred by us after completion of each sale are accrued and included in the determination of the gain on sales.

When leases contain purchase options, we assess the probability that the tenant will execute the purchase option both at lease commencement or at the time the tenant communicates their intent to execute the purchase option. If we determine the execution of the purchase option is likely, we will account for the lease as a sales-type lease and derecognize the associated real estate assets on our balance sheet and record a gain or loss on sale.

Income Taxes

The Company has elected to be taxed as a REIT under the Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of its adjusted taxable income to its stockholders. Management intends to continue to adhere to these requirements and to maintain the Company's REIT status. As a REIT, the Company is entitled to a tax deduction for some or all of the dividends it pays to shareholders. Accordingly, the Company generally will not be subject to federal income taxes as long as it currently distributes to shareholders an amount equal to or in excess of the Company's taxable income. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes and may not be able to qualify as a REIT for four subsequent taxable years.

REIT qualification reduces, but does not eliminate, the amount of state and local taxes we pay. In addition, certain activities that we undertake may be conducted by entities which have elected to be treated as a TRS. TRSs are subject to ~~both~~ federal, state and local income taxes. A benefit or provision has been made for federal, state and local income taxes in the accompanying consolidated financial statements.

In accordance with partnership taxation, each of the partners of the Operating Partnership is responsible for reporting their share of taxable income or loss.

Earnings Per Share and Earnings Per Unit ("EPS" and "EPU")

We use the two-class method of computing earnings per common share or Unit, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Basic net income per common share or Unit is computed by dividing net income available to common stockholders or Unitholders by the weighted average number of common shares or Units outstanding for the period. Diluted net income per common share or Unit is computed by dividing net income available to common stockholders or Unitholders by the sum of the weighted average number of common shares or Units outstanding and any dilutive non-participating securities for the period.

Derivative Financial Instruments

During the normal course of business, we have used derivative instruments for the purpose of managing interest rate risk on anticipated offerings of long term debt. Receipts or payments that result from the settlement of derivative instruments used to fix the interest rate on anticipated offerings of senior unsecured notes are amortized over the life of the derivative or the life of the debt and is included in interest expense. Receipts or payments resulting from derivative instruments used to convert floating rate debt to fixed rate debt are recognized as a component of interest expense.

To qualify for hedge accounting, derivative instruments used for risk management purposes must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions, must be, and are expected to remain, probable of occurring in accordance with our related assertions. We recognize all derivative instruments in the line items Prepaid Expenses and Other Assets, Net or Accounts Payable, Accrued Expenses and Other Liabilities at fair value. Changes in fair value of derivative instruments that are not designated in hedging relationships or that do not meet the criteria of hedge accounting are recognized in earnings. For derivative instruments designated in qualifying cash flow hedging relationships, changes in fair value related to the effective portion of the derivative instruments are recognized in the line item Accumulated Other Comprehensive Income (Loss), whereas changes in fair value of the ineffective portion are recognized in earnings. If it is determined that a derivative instrument ceases to be highly effective as a hedge, or that it is probable the underlying forecasted transaction will not occur, we discontinue its cash flow hedge accounting prospectively and ~~records~~record the appropriate adjustment to earnings based on the current fair value of the derivative instrument. The credit risks associated with derivative instruments are controlled through the evaluation and monitoring of the creditworthiness of the counterparty. In the event that the counterparty fails to meet the terms of the derivative instruments, our exposure is limited to the fair value of agreements, not the notional amounts.

Fair Value

GAAP establishes a framework for measuring fair value and requires disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. The guidance establishes a hierarchy for inputs used in measuring fair value based on observable and unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions of pricing the asset or liability based on the best information available in the circumstances. We estimate fair value using available market information and valuation methodologies we believe to be appropriate for these purposes. The fair value hierarchy consists of the following three broad levels:

•Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;

•Level 2 - inputs other than quoted prices within Level 1 that are either directly or indirectly observable for the asset or liability; and

•Level 3 - unobservable inputs in which little or no market data exists for the asset or liability.

Our assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that we would realize on disposition.

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Segment Reporting

Management views the Company, inclusive of the Operating Partnership, as a single segment based on its method of internal reporting.

Recent Accounting Pronouncements Adopted

In March 2020, FASB issued Accounting Standards Update (“"ASU”") No. 2020-04 Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected ~~over~~through ~~time~~December 31, 2024 as reference rate reform activities occur. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

75Reclassifications

Joint Venture Fees for the years ended December 31, 2021 and 2020 have been reclassified from the Other Revenue line item in the consolidated statements of operations to conform to the 2022 presentation.

3. Investment in Real Estate

Acquisitions

The following table summarizes our acquisition of industrial properties and land parcels for the years ended December 31, ~~2021~~2022, ~~2020~~2021 and ~~2019~~2020. We accounted for the properties and land parcels as asset acquisitions and therefore capitalized transaction costs to the basis of the acquired assets. The revenue and net income associated with the acquisition of the industrial properties, since their respective acquisition dates, are not significant for years ended December 31, ~~2021~~2022, ~~2020~~2021 or ~~2019~~2020.

	Year Ended December 31,
	2021		2020		2019
	2022		2021		2020
Number of Industrial Properties Acquired	411		84		98
GLA (in millions)	0.25		10.52		01.5
Purchase Price of Industrial Properties Acquired	$	38137,~~727~~126	$	~~154~~38,~~410~~727	$	66154,~~805~~410
Purchase Price of Land Parcels Acquired (A)	302,223		69,617		81,082
Purchase Price of Income Producing Land Parcels Acquired (A)	56,525		—		—
Total Purchase Price (B)	$	340,950	$	224,027	$	147,887
Purchase Price of Land Parcels Acquired (B)	105,486		302,223		69,617
Total Purchase Price (C)	$	299,137	$	340,950	$	224,027

(A) For the year ended December 31, ~~2021~~2022, includes $311,~~857~~676, $1,~~434~~577, $3,850 and ($~~183~~4,950) allocated to building improvements/construction in progress, other assets, ~~and~~ in-place leases and below market leases, respectively.

(B) ~~Purchase~~For ~~price~~the ~~excludes~~year ~~closing~~ended ~~costs~~December 31, 2021, includes $3,857, $1,434 and $183 allocated to building improvements/construction in progress, other assets and in-place leases, respectively.

~~The~~(C) ~~following~~Purchase ~~table~~price ~~summarizes~~excludes ~~the~~closing ~~fair value of amounts recognized for each major class of asset and liability for the industrial properties and land parcels acquired during the years ended December 31, 2021 and 2020:~~costs.

	Year Ended December 31,
	2021		2020
Land	$	309,475	$	121,353
Building and Improvements/Construction in Progress	28,839		97,138
Other Assets	1,663		1,790
In-Place Leases	973		5,174
Above Market Leases	—		134
Below Market Leases	—		(1,562)
Total Purchase Price	$	340,950	$	224,027

The following table summarizes the fair value of amounts recognized for each major class of asset and liability for the industrial properties and land parcels acquired during the years ended December 31, 2022 and 2021:


	Year Ended December 31,
	2022		2021
Land	$	252,158	$	309,475
Building and Improvements/Construction in Progress	43,685		28,839
Other Assets	2,975		1,663
In-Place Leases	9,246		973

Above Market Leases	23		—

Below Market Leases	(8,950)		—
Total Purchase Price	$	299,137	$	340,950

Sales

The following table summarizes our property and land dispositions for the years ended December 31, ~~2021~~2022, ~~2020~~2021 and ~~2019~~2020:

	Year Ended December 31,
	2021		2020		2019
	2022		2021		2020
Number of Industrial Properties Sold (A)	299		29		4029
GLA (in millions)(B)	2.92		12.9		51.9
Gross Proceeds from the Sale of Real Estate (B)	$	~~243~~178,~~407~~340	$	~~153~~243,~~351~~407	$	~~315~~153,~~768~~351
Gain on Sale of Real Estate (B)	$	~~150~~128,~~310~~268	$	86150,~~751~~310	$	~~124~~86,~~942~~751

(A) Included as one industrial property for each of the years ended December 31, 2021, ~~2020~~ and ~~2019~~2020 iswas the sale of multiple industrial condominium units.

(B) Gross proceeds and gain on sale of real estate include the sale of one land parcel for ~~the~~each ~~year~~of ~~ended December 31, 2021 and several land parcels for~~ the ~~year~~years ended December 31, ~~2019.~~2022 ~~In addition, included in the above table for the year ended December 31, 2019, is 0.6 million square feet of GLA, gross proceeds of $54,521~~ and gain on sale of $8,606 related to the reclassification of a lease from an operating lease to a sales-type lease that was recorded as a lease receivable as of December 31, 2019 and collected during 20202021. ~~See Note 10 for additional information.~~

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4. Indebtedness

The following table discloses certain information regarding our indebtedness:

	Outstanding Balance at				InterestRate atDecember 31,~~2021~~2022	EffectiveInterestRate atIssuance	MaturityDate
	December 31, 2021		December 31, 2020
	December 31, 2022		December 31, 2021
Mortgage Loans Payable, Gross	$	7910,~~764~~299	$	~~144~~79,~~214~~764	4.~~03% – 4.~~17%	4.~~03% – 4.~~17%	~~September 2022 –August~~ 8/1/2028
Unamortized Debt Issuance Costs	~~(90)~~—		(~~335~~90)
Mortgage Loans Payable, Net	$	7910,~~674~~299	$	~~143~~79,~~879~~674
Senior Unsecured Notes, Gross
2027 Notes	6,070		6,070		7.15%	7.11%	5/15/2027
2028 Notes	31,901		31,901		7.60%	8.13%	7/15/2028
2032 Notes	10,600		10,600		7.75%	7.87%	4/15/2032
2027 Private Placement Notes	125,000		125,000		4.30%	4.30%	4/20/2027
2028 Private Placement Notes	150,000		150,000		3.86%	3.86%	2/15/2028
2029 Private Placement Notes	75,000		75,000		4.40%	4.40%	4/20/2029
2029 II Private Placement Notes	150,000		150,000		3.97%	4.23%	7/23/2029
2030 Private Placement Notes	150,000		150,000		3.96%	3.96%	2/15/2030
2030 II Private Placement Notes	100,000		100,000		2.74%	2.74%	9/17/2030
2032 Private Placement Notes	200,000		200,000		2.84%	2.84%	9/17/2032
Subtotal	$	998,571	$	998,571
Unamortized Debt Issuance Costs	(54,~~491~~777)		(65,~~206~~491)
Unamortized Discounts	(5952)		(6559)
Senior Unsecured Notes, Net	$	993,~~021~~742	$	~~992~~993,~~300~~021
Unsecured Term Loans, Gross
2015 Unsecured Term Loan (A)	260,000		260,000		2.89%	N/A	9/12/2022
2015 Unsecured Term Loan	—		260,000		N/A	N/A	N/A
2020 Unsecured Term Loan	—		200,000		N/A	N/A	N/A
2021 Unsecured Term Loan (A)	200,000		200,000		1.84%	N/A	7/7/2026
2021 Unsecured Term Loan (A)	$	200,000	$	—	1.84%	N/A	7/7/2026
2022 Unsecured Term Loan (A)	425,000		—		3.64%	N/A	10/18/2027
Subtotal	$	460,000	$	460,000
2022 Unsecured Term Loan II (A)(B)	300,000		—		4.88%	N/A	8/12/2025
Unamortized Debt Issuance Costs	(1,675)		(1,538)
Subtotal	$	925,000	$	460,000
Unsecured Term Loans, Net	$	458,325	$	458,462
Unamortized Debt Issuance Costs	(5,740)		(1,675)

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