In order to expand its borrowing capacity, First Industrial Realty Trust Inc. FR, the Chicago, IL-based equity real estate investment trust, (“REIT”) has replaced its previous credit facility with a new $625 million senior unsecured revolving credit facility. This new and extended borrowing capacity will lend further financial flexibility to the company, thereby, aiding its long-term growth.
Based upon First Industrial’s leverage ratio, the new credit facility provides arrangement for initial interest-only payments at the rate LIBOR plus 115 basis points (bps). Compared to the previous credit facility, this marks a 35 bps improvement. The new facility, slated to mature on Mar 11, 2019, also comes with a one-year extension offer, although subject to certain criteria. Additionally, it entails a special feature that permits First Industrial to raise the total revolving borrowing capacity to $900 million, conditioned upon the fulfillment of certain requirements.
First Industrial is engaged in owning, operating and developing industrial real estate, and holds a proven record of offering industry-leading customer service to multinational corporations and regional customers. This extended facility will add to the company’s financial strength, going forward.
First Industrial currently carries a Zacks Rank #3 (Hold).
Investors interested in equity REITs may consider better-ranked stocks like Ashford Hospitality Trust, Inc. AHT, CareTrust REIT, Inc. CTRE and Kilroy Realty Corp. KRC. All these stocks sport a Zacks Rank #1 (Strong Buy).
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