"I am proud to announce that we have met the goals of our 2000 plan," says president and chief executive officer Mike Brennan of the 10.1% FFO increase for the year. "We've increased the value of our portfolio by investing in the nation's top 25 industrial locations and by selling properties in our designated exit markets."

First Industrial sold more than 109 properties in 2000 for $433.7 million, with the majority of the volume achieved in the REIT's eight designated exit markets and to institutional buyers as well as pension funds. The sales were at an average 9.5% capitalization rate and an average 17.2% unleveraged internal rate of return, says chief investment office Johannson L. Yap, while the REIT's purchases were at a 10.4% cap rate. More than half of the sales occurred during the fourth quarter.

The REIT finished the year with a 94% occupancy rate, retaining 76.2% of its tenants, according to executive vice president of development operations David Draft. The REIT's average lease term is 5.8 years, he added. With 19% of its leases rolling over in 2001, the REIT aims to retain 70% of those tenants.

Rental increases averaged 8% for the year, averaging 8.3% in the REIT's core markets and 6.8% in its exit markets. Double-digit rent increases were achieved in 10 markets, led by Southern New Jersey at 17.6%, Los Angeles at 16.7%, Northern New Jersey and Nashville at 14.4% each and Milwaukee at 12.7%. An 11.5% increase was seen in Columbus, OH, a market the REIT is nonetheless exiting. The only decrease was a 0.2% drop in Des Moines, IA.

First Industrial also has projects worth $342.4 million in its development pipeline, half of that currently under construction.

"In 2001, we will focus on achieving sector-leading earnings growth and sector-leading return on assets," Brennan says. "We are comfortable with 2001 FFO per share estimates of $4.05 to $4.07. These FFO per share estimates assume 2001 same property NOI growth of 4%.