"First Industrial does not need fixing anymore," the trust's CEO Mike Brennan told a group of analysts gathered for a conference call. Calling the asset realignment strategy he has implemented a success, Brennan says First Industrial is now focused on delivering "sector leading earnings and return on asset growth."
After First Industrial embarked on a dubious acquisition tear several years ago, Brennan was elevated by the trust's board to clean up the mess. He implemented a strategy of exiting under performing markets, with plans to concentrate on 25 markets identified as exceptional, including Los Angeles, Dallas, Denver, Chicago, Northern New Jersey and Atlanta.
"They met expectations," says Prudential real estate analyst Lou Taylor, who says he continues to see annual FFO growth for First Industrial in the 8% to 10% range, about average for industrial REITs. For First Industrial to be among the top performers as executives are now predicting, "a lot of things would have to go right", Taylor says.
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