First Industrial Realty Trust Inc. (NYSE:FR PRKCL) Q1 2016 Earnings Conference Call - Final Transcript
Apr 28, 2016 • 11:00 am ET
Good morning my name is Nicole and I will be your conference operator. At this time I would welcome everyone to the First Industrial First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]
I would now like to hand the conference over to Mr. Art Harmon, Vice President of Investor Relations. Please go ahead, sir.
Thanks, Nicole. Hello, everybody and welcome to our call. Before we discuss our first quarter 2016 results, let me remind everyone that our call may include forward-looking statements as defined by federal securities laws. These are based on management's expectations, plans and estimates of our prospects. Today's statements maybe time sensitive and accurate only as of today's date, Thursday, April 28, 2016.
We assume no obligation to update our statements or the other information we provide. Actual results may differ materially from our forward-looking statements and factors which could cause this are described in our 10-K and other SEC filings. You can find a reconciliation of non-GAAP financial measures discussed in today's call in our supplemental report, and our earnings release. The supplemental report, earnings release and our SEC filings are available at firstindustrial.com under the Investors tab.
Our call will begin with remarks by Bruce Duncan, our Chairman, President and CEO as well as Scott Musil, our CFO. After which, we will open it up for your questions. Also on the call today are Jojo Yap, our Chief Investment Officer; Peter Schultz, Executive Vice President; Chris Schneider, Senior Vice President of Operations; and Bob Walter, Senior Vice President of Capital Markets and Asset Management.
Now, let me turn the call over to Bruce.
Thanks, Art. And thanks to all of you for joining us today on our call. Overall 2016 is off to a great start, as we continue to execute on our plan to drive current and long-term cash flow growth. We ended the first quarter with occupancy at 94.8%, reflecting the typical first quarter dip plus the impact of the 400,000 square foot move out in our Memphis assets we discussed on our fourth quarter call. Rest assured we are focused on the work to be done to achieve our occupancy objectives for the year.
We delivered strong cash same store NOI growth of 9.6%. This is primarily driven by a decrease in free rent, Higher average occupancy, rental rate bumps and rental rate growth. Based on the strength of our first quarter, we increased our cash same store guidance which Scott will walk through shortly. Cash rental rate were up 6.9% overall. Our ninth consecutive positive quarter, GAAP rents were up 15.2% making it 17 positive quarters in a row.
Moving on to development, I refer you to Page 20 of our supplemental. We have had some very good development leasing wins thus far this year. In the first quarter we successful leased and placed in service the final building of our