#United States #Chicago #earnings report #First Industrial #Realty Trust

First Industrial Realty Trust Reports Strong 2024 Results

First Industrial Realty Trust, Inc. (NYSE FR), a prominent owner and developer of logistics real estate, has recently disclosed its results for the fourth quarter and full year ending 2024, showcasing remarkable performance in key areas.

Significant Financial Performance

In the fourth quarter, the company reported diluted earnings per share (EPS) of $0.52, a decline from $0.67 year-over-year. However, the total EPS for 2024 saw an increase to $2.17 from $2.07 in 2023. An essential metric, funds from operations (FFO), stood at $0.71 per share/unit on a diluted basis, up from $0.63 a year ago. For the entire year, FFO peaked at $2.65 per share/unit, marking an 8.6% increase from 2023's $2.44.

Robust Portfolio Activity

2024 marked a banner year for First Industrial, signing 4.7 million square feet of development leases—the second-highest annual total since the re-launch of its development program in 2012. This strong leasing activity translates to a portfolio occupancy of 96.2% at the year's close, up from 95.5% in Q4 2023.

Notable Increases in Cash Rental Rates

A significant highlight was the 50.8% increase in cash rental rates for the full year, outperforming the previous year and demonstrating a strong demand for industrial properties. On leases signed for 2025, there was an impressive 33% increase in cash rental rates as company initiatives to maintain a competitive market position took shape.

Dividend Increase and Future Outlook

The board of directors announced a 20.3% increase in the common stock dividend to $0.445 per share/unit for the first quarter of 2025. This decision reflects the company’s commitment to returning value to its shareholders while maintaining a strong trajectory in cash flow growth.

Peter E. Baccile, president and CEO, emphasized the successful delivery of operational metrics and the broad-based development leasing efforts across ten markets. As a result of the positive momentum, he projected an expected FFO growth rate of approximately 10% for 2025, further validating the company’s proactive strategies.

Development and Disposition Highlights

The development activities during Q4 included the initiation of two projects totaling 679,000 square feet in Nashville and the Lehigh Valley, with an estimated investment of $96 million. Moreover, five buildings were sold for $25 million, and the full year saw 22 buildings sold for a cumulative total of $163 million.

Conclusion

First Industrial Realty Trust continues to demonstrate remarkable growth in both financial metrics and operational efficacy, underlined by significant increases in cash rental rates and strategic development initiatives. Looking ahead, the company is positioned for further advancements as it steers into 2025, aiming for sustainable growth in the real estate logistics sector.