You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: These statements are based on management's expectations, plans and estimates of our prospects.
Today's statements may be time-sensitive and accurate only as of today's date, Thursday, July 23, 2020.
We assume no obligation to update our statements or the other information we provide.
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.
I hope that you and yours are maintaining your health as we all work through these challenging times.
Before we discuss the quarter, we would like to express our gratitude and bid farewell to an important member of the First Industrial family.
As we previously disclosed, Bruce Duncan has retired from our Board.
As many of you know, Bruce has taken on a new challenge as CEO of another REIT.
Bruce joined First Industrial as our CEO in 2009 during a difficult period and provided tremendous leadership to help stabilize and transform our business model and portfolio.
We wish Bruce well in his new role.
As you may also have seen, seasoned FR Director, Matt Dominski, has taken over as Chairperson.
Matt has been a highly productive member of our Board since 2010.
We are thrilled to have Matt as our new Chair and look forward to his continued counsel and leadership.
Moving now to the quarter.
We produced strong results demonstrated in several different areas, including collections, leasing, investment and capital markets.
Our regional teams have done a fantastic job in the second quarter on collections.
As of yesterday, we have collected 98% of 2Q monthly rental billings and so far, we've collected 97% of July billings, which is ahead of the pace we experienced in the second quarter.
If we include collections from government-related tenants that regularly pay at the end of the month, our collection rate for July would also be 98%.
About 65% of the outstanding monthly rental billings in the second quarter were in jurisdictions that have moratoriums on the landlord's right to evict, which we believe, is a contributing factor toward the open receivables for this group.
To be clear, in our calculation of this collections percentage metric, the numerator reflects cash collections and we do not give ourselves credit under our methodology for the application of security deposit.
In addition, the denominator reflects the total monthly rental billings and is not reduced for any reserves for bad debt expense or rent deferrals.
Including surrendered security deposits and bad debt reserves recognized in the second quarter, our outstanding accounts receivable related to our monthly rental billings in 2Q is only $550,000.
Rent relief requests have tapered off to a minimum.
During the COVID-19 crisis to-date, we have established rent deferment agreements with 14 tenants totaling $750,000 or about 18 basis points of annualized billings.
The average term for these deferrals is 1.3 months.
It appears the government stimulus has helped a number of our customers and business leaders in general are more optimistic about their prospects.
The industrial business continues to perform well as commerce continues to flow through logistics facility.
As you've seen, economic activity has improved since March and April and our customers and prospects are moving ahead with new space requirements albeit with caution, in some cases.
In its second quarter preliminary flash report, CBRE reported 19 million square feet of net absorption versus 56 million square feet of completion.
These figures should not be a surprise given the economic slowdown attributable to COVID and the resulting drop in Q2 leasing activity.
However, we are optimistic about our long term prospects given the acceleration of e-commerce adoption and the potential for additional safety stock, generating incremental demand for logistics space.
This view is supported by CBRE's recent forecast that annual net industrial absorption will total more than 333 million square feet by 2022.
If they are right, net absorption for the sector will exceed the high watermark, post a great financial crisis of 324 million square feet in 2016 and the all-time mark of 329 million square feet in 2000.
Despite completions exceeding net absorption nationally in the quarter, our portfolio occupancy increased to 97.7% at quarter-end.
We also achieved a big leasing win at our Nottingham Ridge Logistics Center in the I-95 North submarket in Baltimore.
We leased 100% of the 585,000 square foot Building A to a leading e-commerce provider on a long term basis, which commenced in late June.
Considering we purchased this asset in the first quarter, we leased this property significantly ahead of the 12-month lease-up budgeted in our guidance.
With just 54,000 square feet remaining to lease, we are now 93% occupied at this 751,000 square foot two-building project.
Looking more closely at our portfolio performance.
As of July 22nd, we have signed 83% of our 2020 lease expirations at a cash rental rate increase of 8.6%.
For the full year, we expect our cash rental rate change on new and renewal leasing to be approximately 10%.
The investment market has begun to awaken after a fairly quiet period in which we saw the bid-ask spread widen a bit.
Most offerings had been shelved as participants saw more clarity on the direction of the economy and asset values.
The federal government stimulus actions certainly helped to quell some of those concerns and based on what we are seeing and hearing, pricing has returned to pre-COVID levels and in some cases is higher.
We were able to make a few acquisitions during the quarter in some high barrier markets.
We acquired a 39,000 square-footer in Fremont in Northern California and added an adjacent building comprised of 46,000 square feet.
The aggregate purchase price was $17.8 million with a weighted average initial yield of approximately 4.6%.
We also added a 9.7-acre covered land investment in the Inland Empire for $3.5 million.
The site has a 3% in-place yield for the next several years, generating some cash for us as we entitled the site.
The site will accommodate a 155,000 square foot development.
Thus far in the third quarter, we have closed on a 6.6-acre site in Seattle for $6.1 million that can accommodate a 129,000 square foot building.
We are also excited to launch a new build-to-suit development at our First Nandina II site in the Inland Empire.
The building will be 221,000 square feet and it's leased on a long term basis to a manufacturer of material handling systems.
Total investment is $22.4 million and the initial cash yield will be approximately 6.2%.
We are proceeding with all of our developments in process, which totaled 1 million square feet and a total investment of $94.7 million at June 30th.
In addition to our on-balance sheet developments, construction on the 643,000 square foot spec building in our Phoenix joint venture at PV303 is progressing well.
Our portion of the investment is $21 million and our targeted yield is 7%.
Our on-balance sheet land holdings will accommodate approximately 13 million square feet of future developments, the vast majority of which is entitled and ready to go.
We continue to move ahead on infrastructure work at several sites so that we are prepared to launch when we think economic conditions in the specific submarkets justify new starts.
In the second quarter, we sold three buildings totaling 211,000 square feet for $14.6 million.
These were comprised of a building in Detroit, one in Chicago and our last asset in Indianapolis.
Year-to-date, we sold 437,000 square feet for a total of $41.1 million.
As a reminder, in the third quarter, we expect to close on the $55 million sale in Phoenix, in which the tenant exercised its purchase option in 2019.
Moving to our recent capital markets activity.
On July 7th, we entered into a private placement agreement to issue $300 million in total of 10 and 12 year notes with a weighted average interest rate of 2.81%.
On July 15th, we closed on an extension of our term loan that was scheduled to mature in January of 2021.
These two executions provide us additional capital for new investment and lengthen our maturity schedule.
So all in all, a successful and very busy quarter with great execution by our team.
I will begin with our earnings per share and FFO for the second quarter.
Diluted earnings per share was $0.28 versus $0.31 one year-ago and NAREIT funds from operations were $0.46 per fully diluted share compared to $0.43 per share in 2Q 2019.
Second quarter 2020 FFO includes approximately $500,000 of cash bad debt expense related to tenant accounts receivable and $400,000 of non-cash bad debt expense related to the write-off of certain deferred rent receivables.
Pier 1 has paid July rents and we are assuming they pay August rent, which in total represents a $500,000 pick up from our prior guidance.
Occupancy was strong at 97.7%, up 60 basis points from the prior quarter and up 40 basis points from a year-ago.
As for leasing volume during the quarter, we commenced approximately 2.9 million square feet of leases, 600,000 were new, 1.6 million were renewals and 700,000 were for developments and acquisitions with lease-up.
Tenant retention by square footage was 88.7%.
Same-store NOI growth on a cash basis, excluding termination fees, was 6.3% helped by increase in rental rates on new and renewal leasing, a decrease in free rent and rental rate bumps embedded in our leases.
This was partially offset by increase in bad debt expense and slightly lower average occupancy.
Cash rental rates were up 11% overall with renewals up 8.9% and new leasing 16.7%.
And on a straight-line basis, overall rental rates were up 32.4% with renewals increasing 30.6% and new leasing up 37.5%.
As Peter mentioned, we executed on two capital market transactions in the third quarter that extend and ladder our maturities at attractive rates.
First, we entered into an agreement to issue $300 million of fixed rate senior unsecured notes in a private placement offering.
The notes are comprised of two tranches, $100 million with a 10-year term at a rate of 2.74% and $200 million with a 12-year term at a rate of 2.84%.
We expect to close on the offering on or about September 17th of this year.
On an interim basis, we will use these funds to pay down our line of credit, which will give us more liquidity to fund new investment and a secured debt maturity in 2021.
We also refinanced our $200 million unsecured term loan, previously scheduled to mature at the end of January 2021.
The new loan has an initial maturity date of July 2021, which we can push to July 2023 via two one-year extensions exercisable at our option.
The loan features interest-only payments and bears an interest rate of LIBOR plus 150 basis points.
In conjunction with the new term loan, we entered into new interest rate swap agreements that convert the loan to a fixed interest rate of 2.49%, beginning in February 2021.
In 2021, we will realize about a penny per share of savings due to this refinancing.
After these two executions, one of our remaining 2021 maturities is the aforementioned $63 million of secure debt in the fourth quarter.
We can pay that off using our line, which will have additional capacity created by the proceeds from our private placement offering.
The other is our line of credit, which matures in October of 2021, but we can push that out another year through a one-year extension exercisable at our option.
Our leverage is also in good shape with our net debt plus preferred stock to EBITDA at 5.2 times at January -- at June 30th.
Our guidance range for NAREIT FFO and FFO before one-time items is now $1.76 to $1.84 per share with a midpoint of $1.80.
This is an increase of $0.02 per share compared to the midpoint of our guidance on our first quarter call.
The increase is primarily due to the early lease up of the 585,000 square foot building at the Nottingham Ridge Logistics Center as well as two months of additional rental income from Pier 1.
This is slightly offset by additional interest expense based on our assumption that we use the funds from our private placement offering to pay down our line of credit in the near term.
Our assumption for the average -- for the range of average quarter-end occupancy remains 96% to 97% and our cash bad debt expense assumption remains $900,000 for each of the third and fourth quarters.
Please note that guidance does not include any potential write-offs of deferred rent receivables related to tenants that are having financial difficulties.
Other key assumptions for guidance are as follows, same-store NOI growth on a cash basis before termination fees of 3.25% to 4.25%, an increase of 25 basis points at the midpoint and a tightening of the range.
Our G&A guidance range remains at $31 million to $32 million and guidance also includes the anticipated 2020 costs related to our completed and under construction developments at June 30th, plus the third quarter start of First Nandina II.
In total, for the full year 2020, we expect to capitalize about $0.04 per share of interest related to our developments.
The impact of any future gain related to the final settlement of one insurance claim from a damaged property.
And guidance also excludes the potential issuance of equity.
Our company is built for the long term and we are well positioned to drive cash flow growth for shareholders by serving logistics needs of a range of essential and emerging businesses, while capitalizing on the secular drivers of e-commerce.
With that, we will now move to the question-and-answer portion of our call.

user
compname reports second quarter ffo per share of $0.46.
q2 ffo per share $0.46.
q2 earnings per share $0.28.
2020 ffo guidance increased $0.02 at midpoint to $1.80 per share/unit primarily reflecting portfolio performance.

assistant