<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996
( ) Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
------------------
Commission File Number 33-97014-01
FIRST INDUSTRIAL SECURITIES, L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 36-4036965
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 N. WACKER DRIVE, SUITE 150, CHICAGO, ILLINOIS 60606
(Address of principal executive offices)
(312) 704-9000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes /X/ No .
------------------- --------------
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P.
FORM 10-Q
FOR THE PERIOD ENDED MARCH 31, 1996
INDEX
PART I: FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Balance Sheets of First Industrial Securities, L.P. as of
March 31, 1996 and December 31, 1995 . . . . . . . . . . . . . . 2
Statement of Operations of First Industrial Securities, L.P.
for the Three Months Ended March 31, 1996 and Combined Statement
of Operations of the Predecessor Businesses for the Three Months
Ended March 31, 1995 . . . . . . . . . . . . . . . . . . . . . . 3
Statement of Cash Flows of First Industrial Securities, L.P.
for the Three Months Ended March 31, 1996 and Combined Statement
of Cash Flows of the Predecessor Businesses for the Three Months
Ended March 31, 1995 . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements. . . . . . . . . . . . . . . . . . 5-9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . 10-11
PART II: OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . 12
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . 12
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . 12
Item 4. Submission of Matters to a Vote of Security Holders . . 12
Item 5. Other Information . . . . . . . . . . . . . . . . . . . 12
Item 6. Exhibits. . . . . . . . . . . . . . . . . . . . . . . . 12
SIGNATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P.
BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- ------------
(Unaudited)
ASSETS
<S> <C> <C>
Assets:
Investment in Real Estate:
Land . . . . . . . . . . . . . . . . . . . . . $ 11,626 $ 11,626
Buildings and Improvements . . . . . . . . . . 64,274 63,693
Less: Accumulated Depreciation. . . . . . . . (2,403) (1,981)
--------- ---------
Net Investment in Real Estate. . . . 73,497 73,338
Cash and Cash Equivalents . . . . . . . . . . . 1,054 1,112
Restricted Cash . . . . . . . . . . . . . . . . 414 414
Tenant Accounts Receivable. . . . . . . . . . . 156 163
Deferred Rent Receivable. . . . . . . . . . . . 491 426
Prepaid Expenses and Other Assets, Net. . . . . 373 425
--------- ---------
Total Assets. . . . . . . . . . . . $ 75,985 $ 75,878
--------- ---------
--------- ---------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts Payable and Accrued Expenses . . . . . 920 677
Rents Received in Advance and Security
Deposits . . . . . . . . . . . . . . . . . . 361 433
--------- ---------
Total Liabilities. . . . . . . . . 1,281 1,110
--------- ---------
Commitments and Contingencies . . . . . . . . .
Partners' Capital:
Partners' Capital . . . . . . . . . . . . . . . 74,704 74,768
--------- ---------
Total Liabilities and Partners'
Equity. . . . . . . . . . . . . $ 75,985 $ 75,878
--------- ---------
--------- ---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. STATEMENT OF OPERATIONS
AND PREDECESSOR BUSINESSES
COMBINED STATEMENT OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
First Industrial Predecessor
Securities, L.P. Businesses
---------------- --------------
Three Months Three Months
Ended Ended
March 31, 1996 March 31, 1995
---------------- --------------
<S> <C> <C>
Revenues:
Rental Income . . . . . . . . . . . . . . $ 2,088 $ 1,470
Tenant Recoveries and Other Income. . . . 654 457
-------- --------
Total Revenues. . . . . . . . . 2,742 1,927
-------- --------
Expenses:
Real Estate Taxes . . . . . . . . . . . . 422 375
Repairs and Maintenance . . . . . . . . . 119 37
Property Management. . . . . . . . . . . 87 56
Utilities . . . . . . . . . . . . . . . . 24 9
Insurance . . . . . . . . . . . . . . . . 22 18
Other . . . . . . . . . . . . . . . . . . 6 7
Interest Expense. . . . . . . . . . . . . --- 577
Depreciation and Amortization . . . . . . 439 324
-------- --------
Total Expenses . . . . . . . . 1,119 1,403
-------- --------
Net Income . . . . . . . . . . . . . . . . . $ 1,623 $ 524
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. STATEMENT OF CASH FLOWS
AND PREDECESSOR BUSINESSES
COMBINED STATEMENT OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
First Industrial Predecessor
Securities, L.P. Businesses
---------------- --------------
Three Months Three Months
Ended Ended
March 31, 1996 March 31, 1995
---------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income. . . . . . . . . . . . . . . . . . . . . . . $ 1,623 $ 524
Adjustments to Reconcile Net Income to Net Cash Provided
by Operating Activities:
Depreciation and Amortization . . . . . . . . . . . 439 324
(Increase) in Tenant Accounts Receivable, Deferred
Rent Receivable and Prepaid Expenses and Other
Assets. . . . . . . . . . . . . . . . . . . . . . (23) (763)
Increase in Total Liabilities . . . . . . . . . . . 171 221
-------- --------
Net Cash Provided by Operating Activities . . 2,210 306
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of and Additions to Investment in Real Estate. (581) (9,023)
-------- --------
Net Cash Used in Investing Activities . . . . (581) (9,023)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Acquisition Facility Payable. . . . . . . --- 3,516
Capital Contributions . . . . . . . . . . . . . . . . . --- 5,201
Dividends/Distributions . . . . . . . . . . . . . . . . (1,687) ---
-------- --------
Net Cash Provided by (Used In) Financing
Activities . . . . . . . . . . . . . . . . (1,687) 8,717
-------- --------
Net (Decrease) in Cash and Cash Equivalents. . . . . . . . (58) ---
Cash and Cash Equivalents, Beginning of Period . . . . . . 1,112 ---
-------- --------
Cash and Cash Equivalents, End of Period . . . . . . . . . $ 1,054 $ ---
-------- --------
-------- --------
Supplemental Cash Flow Information:
Cash Paid for Interest. . . . . . . . . . . . . . . . . $ 0 $ 577
-------- --------
-------- --------
Interest Capitalized. . . . . . . . . . . . . . . . . . $ 0 $ 0
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. AND PREDECESSOR BUSINESSES
NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
1. ORGANIZATION
First Industrial Securities, L.P. (the Company") is a Delaware limited
partnership formed on August 14, 1995, the 1% general partner of which is First
Industrial Securities Corporation ("Securities Corporation"), a wholly owned
subsidiary of First Industrial Realty Trust, Inc. ("FI"), and the 99% limited
partner of which is First Industrial, L.P. (the "Operating Partnership"), of
which FI is the sole general partner. Securities Corporation also owns a
preferred limited partnership interest in the Company.
The limited partnership agreement of the Company (the "Limited Partnership
Agreement") and the guarantee agreement contain covenants generally restricting
the Company's activities to the ownership and operation of its properties and,
under certain circumstances, other industrial properties. These covenants
shall cease to have any effect upon the termination of the guarantee. Under its
Articles of Incorporation, Securities Corporation's sole purpose is to act as
general partner of the Company and to pay dividends on its common and preferred
stock. These and other restrictions are intended to assure that even in the
event of FI, the Operating Partnership or other affiliates of FI becoming
subject to federal bankruptcy proceedings, neither Securities Corporation nor
the Company nor their assets will be treated as subject to such bankruptcy
proceedings under the doctrine of substantive consolidation or other doctrines
(except to the extent liabilities are imposed by non-insolvency regulatory
statutes on affiliates) and that activities of FI, the Operating Partnership and
other affiliates will not cause Securities Corporation or the Company to become
insolvent or unable to pay their debts as they mature (including the guarantee).
2. FORMATION TRANSACTIONS
THE INITIAL CAPITALIZATION
The Company was capitalized with a capital contribution of $1 on August
28, 1995 by Securities Corporation.
THE CONTRIBUTION TRANSACTIONS
On November 17, 1995, FI completed a public offering of 1,500,000 shares of
$.01 par value 9 1/2% Series A Cumulative Preferred Stock at $25.00 per share,
and on December 14, 1995, FI issued 150,000 shares of $.01 par value 9 1/2%
Series A Cumulative Preferred Stock for $25.00 per share pursuant to the
underwriters' exercise of their over-allotment option (together the "Series A
Preferred Shares"). The issuance of 1,650,000 Series A Preferred Shares is thus
referred to as the "Offering". Gross proceeds to FI from the Offering were
$41,250. FI contributed to Securities Corporation the gross proceeds from the
Offering in exchange for preferred stock of Securities Corporation, and
Securities Corporation contributed such proceeds to the Company in exchange for
a preferred limited partnership interest in the Company. The Operating
Partnership and First Industrial Pennsylvania, L.P. (the "Pennsylvania
Partnership"), a Delaware limited partnership and a subsidiary of the Operating
Partnership, contributed to the Company, in return for limited partnership
interests, 14 properties and 5 properties on November 17, 1995, and December 14,
1995, respectively, (described below) encumbered by liens collateralizing debt
under the 1994 Acquisition Facility (herein after defined). An amount of such
debt equal to the gross proceeds of the Offering was repaid by the Company and
such liens on the properties described below were released. The Pennsylvania
Partnership contributed its limited partnership interest in the Company to the
Operating Partnership. The foregoing are herein collectively referred to as the
"Contribution Transactions". The Company commenced operations on November 17,
1995.
5
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. AND PREDECESSOR BUSINESSES
NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
THE PROPERTIES
Upon consummation of the Offering and the Contribution Transactions
(collectively, the "Formation Transactions"), the Company owned 19 properties
located in four states containing an aggregate of approximately 2.1 million
square feet of gross leasable area ("GLA"). Of the properties:
(a) Four were acquired by the Operating Partnership prior to FI's initial
public offering (the "Initial Offering") in June 1994;
(b) Two were acquired concurrently with the consummation of the Initial
Offering; and
(c) Thirteen were acquired or developed by either the Operating
Partnership or the Pennsylvania Partnership subsequent to the Initial
Offering.
THE GUARANTEE
In connection with the Offering, the Company entered into a Guarantee and
Payment Agreement (the "Guarantee Agreement") pursuant to which the Company
guaranteed the payment of dividends on, and payments on liquidation or
redemption of, the Series A Preferred Shares.
The guarantee was created through the execution of the Guarantee Agreement
between the Company and Securities Corporation, for the benefit of a guarantee
agent. The Guarantee Agreement is administered and enforced for the benefit for
the holders of the Series A Preferred Shares by the guarantee agent. The
guarantee agent may enforce the guarantee directly against the Company only with
the approval of the holders of at least 25% of the outstanding Series A
Preferred Shares. No holder may seek directly to enforce the guarantee.
Under the terms of the Guarantee Agreement, the Company was required to
deposit approximately $414 into a restricted cash escrow account with the
guarantee agent. These funds were set aside to pay for certain repair and
maintenance items of the contributed properties. As of March 31, 1996, none of
these funds have been drawn by the Company.
3. BASIS OF PRESENTATION
The Balance Sheets as of March 31, 1996 and December 31, 1995 present the
financial position of the Company.
The Statement of Operations and Cash Flows for the three months ended March
31, 1996 reflect the operations and cash flows of the Company. The Combined
Statement of Operations and Cash Flows for the three months ended March 31, 1995
reflect the operations and cash flows of the properties contributed to the
Company by the Operating Partnership and Pennsylvania Partnership (the
"Predecessor Businesses").
In the opinion of management, all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the financial position of the
Company as of March 31, 1996 and the results of operations and cash flows for
the Company for the three months ended March 31, 1996 and the results of
operations and cash flows for the Predecessor Businesses for the three months
ended March 31, 1995 have been included.
6
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. AND PREDECESSOR BUSINESSES
NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
In order to conform with generally accepted accounting principles,
management, in preparation of the financial statements, is required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities as of March 31,
1996 and December 31, 1995, and the reported amounts of revenues and expenses
for the three months ended March 31, 1996 and March 31, 1995. Actual results
could differ from those estimates.
REVENUE RECOGNITION:
Rental income is recognized on a straight-line method under which
contractual rent increases are recognized evenly over the lease term. Tenant
recovery income includes payments from tenants for taxes, insurance and other
property operating expenses and are recognized as revenues in the period the
related expenses are incurred by the Company.
The Company evaluates and, if applicable, provides for an allowance for
doubtful accounts against the portion of accounts receivable which is estimated
to be uncollectible. An allowance for doubtful accounts had not been
established at March 31, 1996 and December 31, 1995, as all amounts were deemed
collectible.
GENERAL AND ADMINISTRATIVE:
Expenses related to the operations of the properties are reflected in
property management expense, therefore, there is no allocation of FI's general
and administrative expense.
INVESTMENT IN REAL ESTATE AND DEPRECIATION:
Real estate assets are carried at the lower of depreciated cost or fair
value as determined by the Company. The Company reviews its properties on a
quarterly basis for impairment and provides an allowance if impairments are
determined. First, to determine if impairment may exist, the Company reviews its
properties and identifies those which have had either an event of change or
event of circumstance warranting further assessment of recoverability. Then,
the Company estimates the fair value of those properties on an individual basis
by capitalizing the expected net operating income and discounting the expected
cash flows of the properties. Such amounts are then compared to the property's
depreciated cost to determine whether an impairment exists. Interest expense,
real estate taxes and other directly related expenses incurred during
construction periods are capitalized and depreciated commencing with the date
placed in service, on the same basis as the related assets. Depreciation
expense is computed using the straight-line method based on the following useful
lives:
Years
--------
Buildings and Improvements............ 38 to 40
Land Improvements...................... 15
Construction expenditures for tenant improvements and leasing commissions
are capitalized and amortized over the life of each specific lease. Maintenance
and repairs are charged to expense when incurred. Expenditures for improvements
are capitalized.
When assets are sold or retired, their costs and related accumulated
depreciation are removed from the accounts with the resulting gains or losses
reflected in net income or loss.
7
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. AND PREDECESSOR BUSINESSES
NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
CASH AND CASH EQUIVALENTS:
Cash and cash equivalents include all cash and liquid investments with an
initial maturity of three months or less. The carrying amount approximates fair
value due to the short maturity of these investments.
INCOME TAXES:
No federal income taxes are payable by the Company or the Predecessor
Businesses, and none have been provided for in the accompanying financial
statements. In accordance with partnership taxation, each of the partners are
responsible for reporting their share of taxable income or loss.
FAIR VALUE OF FINANCIAL INSTRUMENTS:
The Company's financial instruments include short-term investments, tenant
accounts receivable, accounts payable and other accrued expenses. The fair
value of these financial instruments was not materially different from their
carrying or contract values.
5. RELATED PARTY TRANSACTIONS
The 19 properties owned by the Company are managed by the Operating
Partnership, of which FI is the sole general partner. Management fees incurred
are based on 3.25% of gross revenues. Such fees totaled $87 for the three
months ended March 31, 1996, of which $24 were due to the Operating Partnership
at March 31, 1996. At December 31, 1995, $36 of accrued management fees was due
to the Operating Partnership.
6. THE ACQUISITION FACILITY PAYABLE
Concurrent with the consummation of the Initial Offering, the Operating
Partnership entered into a revolving credit facility (the "1994 Acquisition
Facility") under which the Operating Partnership may borrow to finance the
acquisition of additional properties and for other corporate purposes, including
working capital. The combined financial statements of the Predecessor
Businesses assume a loan balance proportional to the total lender's estimated
value of the properties in-service compared to the total lender's estimated
value of all properties collateralizing the 1994 Acquisition Facility.
Borrowings under the 1994 Acquisition Facility bear interest at a floating rate
based on a "Corporate Base Rate" plus .5% or LIBOR plus 2.0%. Under the 1994
Acquisition Facility, interest only payments are due monthly. The borrowings
under the 1994 Acquisition Facility are cross-collateralized by certain other
properties acquired and held by the Operating Partnership and the Pennsylvania
Partnership. In connection with the Contribution Transactions, the outstanding
balance under the 1994 Acquisition Facility allocable to the Predecessor
Businesses was repaid and the liens on the properties collateralizing such
facility were released.
7. COMMITMENTS AND CONTINGENCIES
In the normal course of business, the Company is involved in legal actions
arising from the ownership of their properties. In management's opinion, the
liabilities, if any, that may ultimately result from such legal actions are not
expected to have a material adverse effect on the consolidated financial
position, results of operations or liquidity of the Company.
8
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. AND PREDECESSOR BUSINESSES
NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
8. DISTRIBUTIONS
On January 18, 1996, the Company paid a pro rata general and limited
partnership distribution to Securities Corporation and the Operating
Partnership, respectively, in the aggregate amount of $707.
On March 7, 1996, FI's Board of Directors declared a dividend of 59.375
cents per Series A Preferred Share, payable on March 31, 1996, to shareholders
of record on March 15, 1996. On March 26, 1996, the Company distributed $980 to
Securities Corporation, and Securities Corporation paid a preferred stock
dividend of $980 to FI, in each case, the amount equal to the aggregate dividend
payable on the Series A Preferred Shares.
9
<PAGE>
FIRST INDUSTRIAL SECURITIES, L.P. AND PREDECESSOR BUSINESSES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of First Industrial Securities,
L.P.'s (the "Company") financial condition and the Company's and the
Predecessor Businesses' results of operations should be read in conjunction with
the financial statements and notes thereto appearing elsewhere in this Form
10-Q.
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED MARCH 31, 1996 TO THREE MONTHS ENDED MARCH 31,
1995
At March 31, 1996, the Company owned 19 properties with approximately 2.1
million square feet, compared to 13 properties with approximately 1.7 million
square feet owned by the Predecessor Businesses at March 31, 1995. The six
properties acquired or developed between April 1, 1995 and December 31, 1995
includefour acquired properties comprising approximately .3 million square feet
and two completed build-to-suit properties containing a total of approximately
.1 million square feet.
Total revenues increased by $.8 million, or 42%, due primarily to the
properties acquired or developed after March 31, 1995.
Property expenses, which include real estate taxes, repairs and
maintenance, property management, utilities, insurance and other expenses,
increased by $.2 million, or 35%, due primarily to the properties acquired or
developed after March 31, 1995.
Interest expense decreased from $.6 million to $0 because the Company has
no outstanding indebtedness since the contribution of the properties to the
Company in late 1995.
Depreciation and amortization expense increased by $.1 million due
primarily to the additional depreciation and amortization related to the
properties acquired or developed after March 31, 1995.
LIQUIDITY AND CAPITAL RESOURCES
Upon and subsequent to the consummation of the Offering, Securities, L.P.
had no outstanding indebtedness.
Net cash provided by operating activities, used in investing activities and
used in financing activities for the Company for the three months ended March
31, 1996 were $2,210, $581, and $1,687, respectively. Net cash used in
investing activities was used principally for capital improvements of the
Company's properties. Net cash used in financing activities consisted of a
preferred limited partner distribution of $980 and a general and limited partner
distribution of $707. Net cash provided by operating activities, used in
investing activities and used in financing for the Predecessor Businesses for
the three months ended March 31, 1995 were $306, $9,023 and $8,717,
respectively. Net cash used in investing activities was used principally in
connection with the acquisition of additional properties. Net cash provided by
financing activities was provided principally by borrowings under the
Acquisition Facility and capital contributions.
10
<PAGE>
The Company has considered its short-term liquidity requirements and the
adequacy of its estimated cash flows from operations. The Company believes that
its liquidity needs are to fund normal recurring expenses, and pay the preferred
dividend distribution and other partnership distributions. The Company
anticipates that these needs will be met with cash flows provided by operating
activities.
The Company expects to fund its long-term liquidity requirements for non-
recurring capital improvements with its cash flows from operations and in part
with a deferred maintenance escrow established in connection with the issuance
of First Industrial Realty Trust, Inc.'s issuance of its Series A Preferred
Shares.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON MORTGAGES AND NOTES PAYABLE
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
12
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
FIRST INDUSTRIAL SECURITIES, L.P.,
BY: FIRST INDUSTRIAL SECURITIES CORPORATION,
ITS SOLE GENERAL PARTNER
Date: May 10, 1996 By: /s/ Michael J. Havala
-----------------------------------------
Michael J. Havala
Chief Financial Officer
(Principal Financial and Accounting Officer)
13
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- - ----------- -----------
27 Financial Data Schedule
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF FIRST INDUSTRIAL SECURITIES L.P. FOR THE QUARTERLY
PERIOD ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,054
<SECURITIES> 0
<RECEIVABLES> 156
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,210
<PP&E> 75,900
<DEPRECIATION> (2,403)
<TOTAL-ASSETS> 75,985
<CURRENT-LIABILITIES> 1,281
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 74,704
<TOTAL-LIABILITY-AND-EQUITY> 75,985
<SALES> 2,742
<TOTAL-REVENUES> 2,742
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,119
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,623
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,623
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,623
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
