Fitch REIT Credit Analysis: First Industrial's Ratings Reflect Financial Flexibility, Asset Sales.NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- While First Industrial Realty Trust, Inc. (NYSE NYSE
See: New York Stock Exchange :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 Ratings
An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. .
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 IDR
In currencies, this is the abbreviation for the Indonesian Rupiah.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) 'BBB';
--Preferred securities 'BBB-'.
First Industrial, L.P.
--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 FFO
See: Funds from operations payout ratios without gains on sale included.
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