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First Industrial Realty Trust Reports Fourth Quarter and Full Year 2025 Results

Introduction
First Industrial Realty Trust, Inc. (NYSE FR), a prominent owner, operator, and developer in the logistics real estate sector, announced its financial performance for the fourth quarter and the entirety of 2025 on February 4, 2026. The company showcased notable growth metrics, despite a challenging leasing market influenced by fluctuating tariff policies and other market uncertainties.

2025 Highlights

• - Growth in FFO: First Industrial reported a Funds From Operations (FFO) of $0.77 per share/unit for Q4, marking an increase from $0.71 in the same period last year. The full-year FFO reached $2.96, up from $2.65 in 2024, translating to an 11.7% growth.
• - Earnings Per Share (EPS): The diluted EPS for Q4 stood at $0.59, up from $0.52 in the previous year. The full-year EPS was $1.87 compared to $2.17 in 2024.
• - Rental Rate Increases: The company saw cash rental rates increase by 32% for leases starting in 2025, with an even more impressive 37% growth when excluding a fixed-rate renewal of 1.3 million square feet. Additionally, a cash rental rate increase of 35% was achieved on leases signed for 2026.
• - Dividends: The board declared a dividend of $0.50 per share for Q1 2026, a significant increase of 12.4% from the prior rate.

Occupancy and Performance Metrics
As of the end of Q4 2025, in-service occupancy reached 94.4%, a slight increase compared to 94.0% at the end of Q3 2025 but a drop from 96.2% a year prior. The cash basis same-store net operating income (NOI) showed a year-on-year increase of 7.1%, primarily driven by substantial rental rate increases on both new and renewal leases. However, this growth came with challenges, including lower average occupancy percentages.

Development and Leases
First Industrial secured leases totaling 447,000 square feet for new development projects during the fourth quarter and maintained a strong pipeline of future leasing opportunities. Key developments included:

• - The completion of leasing the remaining space at the First Liberty Logistics Center in Houston and other logistical centers in Orlando and South Florida.
• - Beginning two new development projects in early 2026, totaling 305,000 square feet in Miami and Dallas, with estimated investments around $70 million.

Acquisitions and Dispositions
In Q4, the company acquired a 968,000 square-foot building in Phoenix for $125 million from its Camelback 303 joint venture. Other acquisitions included properties in Baltimore and land sales in Detroit, aligning with their strategy to enhance portfolio performance and optimize asset management.

Capital Markets Activity
First Industrial successfully closed unsecured term loans totaling $425 million and $375 million in early 2026, refinancing existing obligations and strengthening its balance sheet. These loans featured favorable terms with extended maturity and reduced payment burdens, facilitating flexibility in future growth.

Outlook for 2026
The company remains focused on enhancing shareholder value through strategic growth, as indicated by CEO Peter E. Baccile’s remarks on leasing demand and expectations of continuous improvement in yield from recently signed leases. The guidance for 2026 forecasts an FFO range of $3.09 to $3.19 per share/unit, illustrating confidence in sustained growth amidst evolving market dynamics.

Conclusion
First Industrial Realty Trust’s performance in 2025 exemplifies resilience and strategic adaptability paving the way for future growth. With a robust portfolio and proactive management, the company is well-positioned to navigate market challenges and capitalize on opportunities ahead. Investors will look forward to the upcoming conference call for further insights and clarity on the operational strategies driving this growth.