1033128--3/16/2006--FIRST_INDUSTRIAL

related topics

{debt, indebtedness, cash}

{investment, property, distribution}

{tax, income, asset}

{loan, real, estate}

{acquisition, growth, future}

{loss, insurance, financial}

{cost, regulation, environmental}

{stock, price, share}

Many real estate costs are fixed, even if income from properties decreases. The Consolidated Operating Partnership may be unable to sell properties when appropriate because real estate investments are not as liquid as certain other types of assets. The Consolidated Operating Partnership may be unable to sell or contribute properties on advantageous terms. The Consolidated Operating Partnership may be unable to acquire properties on advantageous terms or acquisitions may not perform as the Consolidated Operating Partnership expects. The Consolidated Operating Partnership may be unable to complete development and re-development projects on advantageous terms. The Consolidated Operating Partnership may be unable to renew leases or find other lessees. The Company might fail to qualify or remain qualified as a REIT. Certain property transfers may generate prohibited transaction income, resulting in a penalty tax on the gain attributable to the transaction. The REIT distribution requirements may require the Company to turn to external financing sources. Debt financing, the degree of leverage and rising interest rates could reduce the Consolidated Operating Partnership s cash flow. Cross-collateralization of mortgage loans could result in foreclosure on substantially all of the Consolidated Operating Partnership s properties if the Consolidated Operating Partnership is unable to service its indebtedness. The Consolidated Operating Partnership may have to make lump-sum payments on its existing indebtedness. There is no limitation on debt in the Consolidated Operating Partnership s organizational documents. Rising interest rates on the Consolidated Operating Partnership s Unsecured Line of Credit could decrease the Consolidated Operating Partnership s available cash. Earnings and cash dividends, asset value and market interest rates affect the price of the Company s common stock. The Consolidated Operating Partnership may incur unanticipated costs and liabilities due to environmental problems. The Consolidated Operating Partnership s insurance coverage does not include all potential losses.

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1033128--3/16/2006--FIRST_INDUSTRIAL_LP