Correction: Fitch Affirms First Industrial Ratings.

Business Editors

(Correction: The `BBB' rating for the outstanding perpetual

prefered stock was left out from a prior release)

NEW YORK--(BUSINESS WIRE)--Aug. 15, 2000

Fitch has affirmed its senior debt and preferred stock ratings for First Industrial Realty Trust (NYSE: FR). The ratings have been affirmed at `BBB+' for $950 million of outstanding senior unsecured notes issued by First Industrial, L.P., the principal operating subsidiary, and at `BBB' for $391 million of outstanding perpetual prefered stock issued by the parent company. Fitch's Rating Outlook is stable.

First Industrial is among the REIT industry's largest owners, operators and developers of industrial properties, with a June 30 portfolio of 975 buildings (68 million square feet) and total assets of $2.8 billion (at cost). Fitch's ratings reflect favorably on the consistency of First Industrial's financial protection measures, the breadth of tenant and investor demand for industrial properties, and the company's high level of portfolio diversification across tenants, regions, and industrial property types. The ratings also acknowledge the benefits of self-funding new development with proceeds from the sale of less strategic assets, a program that continues to improve overall portfolio quality and relieve potential external funding needs. Issues that Fitch had previously identified as credit negatives--including exposure to older properties and smaller markets and seasoning issues associated with rapid portfolio growth--have largely been addressed and mitigated by First Industrial's increased focus on operations and restructuring of management at the senior and regional levels.

Among many REITs forced by weak equity markets to slow portfolio growth and refocus on operations, First Industrial's transition has been one of the most comprehensive and successful. Highlights include consolidations within both senior and regional management ranks in late 1998 and a continuing shift in capital allocation towards customer-driven development activity, as discussed below. The company's late 1999 announcement of plans to exit eight smaller markets should significantly improve overall portfolio quality, both in terms of asset quality and reduced exposure to markets that lack economic diversity or tenant and investor demand. Over the past 18 months, First Industrial has sold nearly $382 million of properties, contributing to a reduction in average portfolio age from 18 to 15 years. An average disposition cap rate in the low 9% range reflects favorably on the depth of demand for industrial properties from both owner- users and investors. First Industrial has another $600 million of assets queued for disposition, a level that should allow the company to match fund the current run rate of acquisitions ($51 million during 2Q'00) and development well into 2002.

First Industrial's national platform and marketing program continue to yield an increasing number of build-for-suit and build-for-sale development opportunities. The development pipeline totaled $253 million as of June 30, with an unfunded commitment of $121 million that represented approximately 4% of total assets. Leasing risk remains moderate, with 54% of the pipeline pre-leased as of mid-year, and is mitigated by the current strength of the national industrial market, where vacancy reached a cyclical low of 6.7% as of midyear, as reported by Torto Wheaton Research. Fitch also believes that First Industrial, without significant capital commitments to land inventory or a large development organization, could readily scale back development activities should market conditions weaken.

Fitch expects that First Industrial will continue to merchant build approximately one-half of its pipeline on a fee or build-for-sale basis, a structure that should allow First Industrial to actively pursue customer-driven developments without incremental long term capital commitments. Development fees and profits totaled approximately 7% of EBITDA during 2Q'00, a level that Fitch expects to increase into the 10%-15% range over the next several years. Support for the company's ability to sustain these more cyclical revenue sources is provided by consistent demand from institutional investors and the large percentage of industrial tenants that prefer to own their buildings.

Fitch's rating affirmations also reflect favorably on First Industrial's strong balance sheet and financial profile. Over the past several years the company has consistently maintained coverage ratios within a narrow range, with 2Q'00 interest coverage at 3.4 times (x) and fixed charge coverage at 2.1x after adjustment for straight-line rents, capital expenditures, capitalized interest and preferred stock dividends. Asset sales have provided First Industrial with capital to execute both its buyback and development programs on a leverage-neutral basis, preserving debt leverage in the mid-40% range. Debt refinancing risk is mitigated by moderate levels of floating rate debt, a well- staggered and extended debt maturity schedule, and a large unencumbered portfolio that totals approximately 90% of NOI and provides more than 2x asset coverage of unsecured debt obligations. Asset sale proceeds, net of capital recycled into new investments, are expected to be sufficient to repay the April, 2001 reset maturity of $100 million of remarketable senior notes, reducing reliance on the company's $300 million unsecured revolving credit facility, which was recently extended through 2003.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.