Fitch REIT Credit Analysis: First Industrial's Ratings Reflect Financial Flexibility, Asset Sales.

NEW YORK -- While First Industrial Realty Trust, Inc. (NYSE:FR) maintains a flexible funding profile and geographically diverse industrial property portfolio, the company's dependence on asset sales proceeds to bolster its liquidity position may pose a credit concern, according to the latest credit analysis update by Fitch Ratings.

Fitch affirmed First Industrial and its operating partnership, First Industrial, L.P. with a Stable Rating Outlook on May 16. Fitch's latest credit analysis update on First Industrial, which provides more detail supporting Fitch's ratings, is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch currently rates First Industrial as follows:

First Industrial Realty Trust, Inc.

--Issuer Default Rating (IDR) 'BBB';

--Preferred securities 'BBB-'.

First Industrial, L.P.

--IDR 'BBB';

--Senior unsecured notes 'BBB';

--Senior unsecured exchangeable notes 'BBB';

--Unsecured line of credit 'BBB'.

Primary credit strengths include the following:

--Strong financial flexibility from unsecured debt funding profile;

--Geographically diverse portfolio;

--Appropriate risk-adjusted capitalization;

--Manageable lease expiration schedule;

--Granular tenant base;

--Growing joint venture platform.

Primary credit concerns include the following:

--Liquidity position is somewhat dependent on asset sales;

--Gains on asset sales have materially contributed to the company's ability to pay its stock dividends;

--Excluding gains on sale, coverage ratios are low for the 'BBB' rating level;

--High FFO payout ratios without gains on sale included.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.