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Overview of First Industrial Realty Trust's Q3 2025 Results

On October 15, 2025, First Industrial Realty Trust, Inc. (NYSE: FR) released its financial results for the third quarter of 2025, revealing a solid performance marked by substantial leasing activity and notable growth in rental rates. The company, a leading fully integrated owner, operator, and developer of logistics real estate, reported a diluted net income available to common stockholders per share (EPS) of $0.49, a decline from the $0.75 reported during the same period last year. However, funds from operations (FFO) increased to $0.76 per share/unit, compared to $0.68 per share/unit in the previous year.

"Our team delivered another solid quarter, highlighted by some key development leasing wins and strong rental rate growth on 2025 and 2026 lease signings to date," stated Peter E. Baccile, the company’s president and CEO.

Signing New Leases

During the third quarter, First Industrial Realty Trust secured an impressive total of 772,000 square feet in new leases for ongoing development projects. This includes key properties such as:

• - 501,000 SF at Building C of the Camelback 303 joint venture in Phoenix
• - 56,000 SF at First Park Miami Building 3 in South Florida
• - 159,000 SF at First Harley Knox Logistics Center in the Inland Empire
• - 57,000 SF at First Park Miami Building 12 in South Florida.

The company anticipates a cash rental rate increase of approximately 32% on leases signed to date that will commence in 2025, and 31% for those commencing in 2026.

Operational Performance

As of the end of Q3 2025, First Industrial reported an occupancy rate of 94.0%, slightly down from 94.2% at the end of Q2 2025, and 95.0% at the end of Q3 2024. Cash rental rates on new and renewal leases rose substantially, exhibiting an increase of 26.5%, while a straight-line basis saw an increase of 40.6%. This underscores the company’s potential for sustained revenue growth amid increased tenant demand and subsequent rent growth.

Operating at a cash basis, the company’s same-store net operating income (SS NOI) climbed by 6.1%, reflecting the strength of recent leasing activity, alongside contractual rent escalations and insurance claim recoveries. Excluding the effects of an insurance settlement, the SS NOI increase would have been 5.4%.

Recent Acquisitions and Investments

First Industrial also made strategic moves within its investment portfolio during Q3. The company acquired a land site in Northern California for $11 million and successfully disposed of a 60,000 square foot building in Denver along with a land site in Houston for a total of $13 million. These transactions highlight First Industrial's strategic approach to enhancing its asset base while pursuing growth opportunities.

Capital Market Strategies

In response to the challenging interest rate landscape, First Industrial entered into forward-starting interest rate swaps to stabilize its financing costs effectively. The company secured a series of financial maneuvers to lock in rates at approximately 4.13% and 4.10% on two major unsecured term loans totaling $300 million, with these new fixed rates becoming effective in December 2025 and February 2026, respectively. These actions exemplify the company’s proactive management of its financial strategy.

Future Outlook

The CEO expressed confidence in First Industrial's future, stating, "Industrial fundamentals are showing signs of further firming across our markets, with vacancy stabilizing and new starts remaining moderate." The company aims to leverage its leasing operations as the main driver of growth and value creation, with expectations for continuing rent growth on forthcoming lease signings.

First Industrial Realty Trust continues to position itself strongly within the logistics real estate market, adapting to evolving consumer demands and industry trends while maintaining a focus on expansion and investor value. As it heads into the final quarter of 2025, stakeholders and investors will be keenly watching the company’s progress and strategic initiatives.

For further details, you can visit the company’s investor relations page at www.firstindustrial.com.