#United States #Chicago #First Industrial #Q1 Results #logistic real estate

First Industrial Realty Trust Reports Strong First Quarter 2025 Results

On April 16, 2025, First Industrial Realty Trust, Inc. (NYSE: FR), a prominent owner and operator of logistics properties, disclosed its financial results for the first quarter of 2025. The company showcased its strong performance amid a competitive market, highlighted by a 10.1% growth in cash same-store net operating income (NOI) and an astonishing 42% rise in cash rental rates.

Financial Highlights

First Industrial's diluted earnings per share (EPS) reached $0.36, down from $0.52 in the same quarter of the previous year. However, funds from operations (FFO) improved to $0.68 per share, an increase from $0.60 year-over-year. The increase in FFO indicates that the company is managing its operations effectively despite challenges in rental pricing.

Regarding occupancy, First Industrial maintained a robust rate of 95.3% across its portfolio by the end of Q1, reflecting a slight decline from 96.2% at the end of Q4 2024. The variation is minimal and signifies stable performance in core markets, enhancing confidence in the company’s operational strategy.

Furthermore, cash rental rates for new and renewed leases jumped by 41.7% this quarter, averaging 77% on a straight-line basis. A notable statistic is that the company achieved an overall cash rental rate increase of approximately 30% on leases signed for 2025.

Investment Ventures

The company did not rest on its laurels; it successfully executed several investment and capital market transactions. In Q1 2025, First Industrial acquired two fully leased buildings in Phoenix, totaling 796,000 square feet for $120 million. This strategic acquisition generates a cash yield of 6.4%, bolstering the company's position in key markets.

Additionally, First Industrial has plans for significant development projects. Two properties in Dallas and Philadelphia, totaling 402,000 square feet, are set to commence construction in the second quarter. The anticipated investment for these projects is $54 million, with an estimated cash yield of 8%.

Capital Management and Dividend Growth

First Industrial continues to optimize its capital structure. The company has extended its unsecured revolving credit facility by $100 million, bringing the total to $850 million. This facility is an essential tool for acquiring and developing properties in a rapidly changing marketplace. Additionally, the company renewed its $200 million unsecured term loan, providing added liquidity and financial flexibility.

In recognition of its performance and commitment to shareholder value, the board declared an increased common dividend of $0.445 per share, reflecting a substantial rise of 20.3% from the previous quarter. This commitment signals the company’s confidence in its ongoing earnings potential.

2025 Outlook

Looking ahead, First Industrial is optimistic regarding its performance throughout 2025. The company projects a net income available to common stockholders within a range of $1.52 to $1.62 per share, with an anticipated FFO range of $2.87 to $2.97 per share. This outlook is supported by expected occupancy rates ranging from 95.0% to 96.0% and an SS NOI growth target of 6.0% to 7.0%.

Conclusion

First Industrial Realty Trust has demonstrated considerable strength in its Q1 2025 results, indicating a solid foundation for its operations moving forward. The strategic acquisitions, new developments, and increased dividends reflect its focus on growth and return on investment for shareholders. As the logistics sector continues to evolve, First Industrial is well-positioned to capitalize on emerging opportunities in the marketplace. The combination of reliable asset management and investment strategies will likely yield positive results for stakeholders in the years to come.