UPDATE: Stifel Nicolaus Initiates First Industrial Realty Trust with Hold on Age of Assets

Stifel Nicolaus initiated its rating on First Industrial Realty Trust FR with a Hold rating. Stifel Nicolaus noted, "Concerns include: (1) the average age of 28 years and 1984 completion date is the oldest in the industrial universe we cover, which indicates functionally challenged assets; (2) our asset-by-asset review indicated a rather unimpressive portfolio; (3) little geographic concentration; (4) high ongoing capital cost for re-tenanting and base building as indicated by a very high 25.5x 2013E FAD multiple; and (5) low Cash Flow and CF less G&A cap rates of 6.1% and 5.3%." First Industrial Realty Trust closed at $12.46 on Thursday.