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First Industrial Realty Trust Reports First Quarter 2025 Results

  • Cash Same Store NOI Growth of 10.1%
  • Cash Rental Rates Up 42% in 1Q25
  • 30% Cash Rental Rate Increase on Leases Signed To-Date Commencing in 2025; 36% Increase Excluding 1.3 Million Square-Foot Fixed-Rate Renewal
  • Acquired Two 100% Leased Buildings from Our Camelback 303 JV in Phoenix; 796,000 Square Feet, $120 Million Purchase Price, Net of Our Share of Gain on Sale and Promote, Cash Yield of 6.4%
  • Two Planned Development Starts for 2Q25 Totaling 402,000 Square Feet in Dallas and Philadelphia, $54 Million Estimated Investment, Estimated Combined Cash Yield of 8%
  • Renewed Unsecured Revolving Credit Facility, Upsizing It $100 Million to $850 Million, and Renewed $200 Million Unsecured Term Loan
  • Increased First Quarter 2025 Dividend to $0.445 Per Share, a 20.3% Increase

First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of logistics real estate, today announced results for the first quarter of 2025. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.36 in the first quarter, compared to $0.52 a year ago and first quarter funds from operations (FFO) was $0.68 per share/unit on a diluted basis, compared to $0.60 per share/unit a year ago.

“Our team delivered a solid quarter of operating results and executed on some key investment and capital market transactions,” said Peter E. Baccile, First Industrial's president and chief executive officer.

Portfolio Performance

  • In service occupancy was 95.3% at the end of the first quarter of 2025, compared to 96.2% at the end of the fourth quarter of 2024, and 95.5% at the end of the first quarter of 2024.
  • In the first quarter, cash rental rates on new and renewal leasing increased 41.7% and increased 77.0% on a straight-line basis.
  • The Company has achieved a cash rental rate increase of approximately 30% on leases signed to-date commencing in 2025 reflecting 73% of 2025 expirations by square footage. Excluding the 1.3 million square-foot fixed-rate renewal previously disclosed, the cash rental rate increase is 36%.
  • In the first quarter, cash basis same store net operating income before termination fees (“SS NOI”) increased 10.1% primarily reflecting increases in rental rates on new and renewal leasing, contractual rent escalations and slightly higher average occupancy.

Development Leasing Highlights

During the first quarter, the Company:

  • Leased the remaining 50% of its 200,000 square-foot First 76 Logistics Center in Denver; commenced in the first quarter.

Investment and Disposition Highlights

During the first quarter, the Company:

  • Acquired two 100% leased buildings totaling 796,000 square feet from its Camelback 303 joint venture in Phoenix for $120 million. Purchase price reflects a reduction related to First Industrial's share of its gain and promote.
  • Acquired a 61-acre land site in Philadelphia for $16 million for a two-phase project developable to 837,000 square feet.
  • Sold two buildings in Detroit - 100,000 square feet; total of $12 million.

In the second quarter to-date, the Company:

  • Plans to start development of two facilities totaling 402,000 square feet, estimated total investment of $54 million, comprised of:
    • First Park 121 Building F in Dallas - 176,000 square feet; $23 million estimated investment.
    • First Park New Castle Building B in Philadelphia - 226,000 square feet; $31 million estimated investment.
  • Sold one building in Detroit - 18,000 square feet; $2 million.

Capital

In the first quarter, the Company:

  • Closed an $850 million senior unsecured revolving credit facility which amended and restated its previous facility and upsized it by $100 million. The facility matures on March 16, 2029 and has two six-month extension options. The agreement provides for interest-only payments currently at an interest rate of SOFR plus 77.5 basis points based on the Company's current credit ratings and consolidated leverage ratio and removes the incremental 10 basis point SOFR adjustment included in the prior facility.
  • Closed an unsecured term loan that refinances its $200 million unsecured term loan previously scheduled to mature on July 7, 2026. The new term loan matures on March 17, 2028 and has two one-year extension options. The agreement provides for interest-only payments currently at an interest rate of SOFR plus 85 basis points based on the Company's current credit ratings and consolidated leverage ratio plus a SOFR adjustment of 10 basis points.

Common Stock Dividend

As previously disclosed, the board of directors declared a common dividend of $0.445 per share/unit for the quarter ending March 31, 2025 payable on April 21, 2025 to stockholders of record on March 31, 2025. The new dividend rate represents a 20.3% increase from the prior rate of $0.37 per share/unit.

The following assumptions were used for guidance:

  • Average quarter-end in service occupancy of 95.0% to 96.0%.
  • SS NOI growth on a cash basis before termination fees of 6.0% to 7.0%. This range excludes $4.5 million of income related to the 3Q24 accelerated recognition of a tenant improvement reimbursement.
  • Includes the incremental costs expected in 2025 related to the Company’s completed and under construction developments as of March 31, 2025 and the aforementioned planned second quarter starts of First Park 121 Building F and First Park New Castle Building B. In total, the Company expects to capitalize $0.09 per share of interest in 2025.
  • General and administrative expense ("G&A") of $40.5 million to $41.5 million.
  • Guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, or equity issuances post the date of this press release. 

Conference Call

First Industrial will host its quarterly conference call on Thursday, April 17, 2025 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (877) 870-4263, passcode “First Industrial”. The conference call will also be webcast live on the Investors page of the Company’s website at www.firstindustrial.com. The replay will also be available on the website.

The Company’s first quarter 2025 supplemental information can be viewed at www.firstindustrial.com under the “Investors” tab. 

FFO Definition

First Industrial calculates FFO to be equal to net income available to common stockholders, unitholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain (or plus loss) on sale of real estate, adjusted for any associated income tax provisions or benefits. Similar adjustments are made for our share of net income from an unconsolidated joint venture. This calculation methodology is in accordance with the NAREIT definition of FFO.

About First Industrial Realty Trust, Inc.

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 70.2 million square feet of industrial space as of March 31, 2025. For more information, please visit us at www.firstindustrial.com.

Forward-Looking Statements

This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors that could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up schedules; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events; risks associated with security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology networks and related systems; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; technological developments, particularly those affecting supply chains and logistics; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2024, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the Securities and Exchange Commission (the "SEC"). We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC.

A schedule of selected financial information can be found in the PDF below.

Contact:           Art Harmon, Senior Vice President, Investor Relations and Marketing - (312) 344-4320

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