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1. Company Snapshot

1.a. Company Description

First Industrial Realty Trust, Inc.(NYSE: FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers.Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types.


In total, we own and have under development approximately 64.1 million square feet of industrial space as of September 30, 2020.

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1.b. Last Insights on FR

The recent performance of First Industrial Realty Trust, Inc. was negatively impacted by a miss on Q1 FFO estimates, with a reported $0.68 per share, missing the Zacks Consensus Estimate of $0.70 per share. This compares to FFO of $0.60 per share a year ago. Despite this, the company reported strong cash same-store NOI growth of 10.1% and a 42% increase in cash rental rates in 1Q25. Additionally, First Industrial acquired two 100% leased buildings from its Camelback 303 JV in Phoenix, totaling 796,000 square feet, with a purchase price of $120 million, net of its share of gain on sale and promote, and a cash yield of 6.4%. The company also renewed its unsecured revolving credit facility, upsizing it by $100 million to $850 million, and renewed its $200 million unsecured term loan. Furthermore, First Industrial increased its first quarter 2025 dividend to $0.445 per share, a 20.3% increase.

1.c. Company Highlights

2. First Industrial Realty Trust Delivers Strong Q2 Results with FFO Beat and Robust Leasing Activity

First Industrial Realty Trust, Inc. reported strong second-quarter 2025 results, with NAREIT funds from operations (FFO) of $0.76 per fully diluted share, surpassing the consensus estimate of $0.72. This represents a 15% year-over-year increase, driven by solid operational performance and higher rents. Cash same-store NOI growth came in at 8.7%, supported by rent increases and contractual escalations. The company's in-service occupancy remained robust at 94.2%, with 88% of 2025 rollovers already addressed, highlighting its ability to maintain a stable tenant base amid a competitive market.

Publication Date: Jul -21

📋 Highlights
  • FFO Growth: - NAREIT FFO increased to $0.76 per share, up from $0.66 in Q2 2024.
  • Cash Same-Store NOI Growth: - Reported 8.7% growth driven by rent increases and contractual escalations.
  • In-Service Occupancy: - Occupancy remained strong at 94.2%, with 88% of 2025 rollovers addressed.
  • New Development Starts: - Announced two new projects totaling $54 million, targeting 8% cash yields.
  • Rental Rate Increase: - Achieved a 33% cash rental rate increase for new and renewal leases (38% excluding a large renewal).

Operational Strength and Leasing Momentum

The company demonstrated strong leasing momentum during the quarter, with a 33% increase in cash rental rates for new and renewal leases, rising to 38% when excluding a large fixed-rate renewal. Notably, First Industrial leased the remaining 501,000 square feet of a 968,000-square-foot building in Phoenix and 58,000 square feet at its First Loop project in Orlando. These leasing successes underscore the company's ability to capitalize on demand in key markets. Management also highlighted that $1.5 million square feet of development leasing is assumed in guidance for the fourth quarter, though this is expected to have no impact on FFO if not realized.

Capital Markets and Balance Sheet Update

First Industrial bolstered its balance sheet by issuing $450 million of senior unsecured notes at a 5.25% coupon rate. This follows a credit rating upgrade by Fitch to BBB+, reflecting the company's improving financial health. The company's guidance for NAREIT FFO remains unchanged at $2.92 per share, with a narrowed range of $2.88 to $2.96, signaling confidence in its full-year performance. Additionally, the company announced two new development starts in Northwest Dallas and Philadelphia, with a combined investment of $54 million and target cash yields of 8%, further expanding its growth pipeline.

Market Trends and Regional Performance

While some tenants have paused decisions due to economic uncertainty, others are actively seeking space, particularly in high-demand markets like Nashville, Florida, Dallas, and Houston. Peter Schultz noted that Nashville remains one of the strongest markets, with limited supply and rising rents. Southern California saw a 5% decline in market rents from Q1 to Q2, though rents remain double pre-COVID levels, reflecting a 13.5-14% CAGR. The company emphasized its disciplined approach to pricing, focusing on NPV rather than chasing short-term demand through rate reductions.

Valuation and Investment Thesis

Trading at a P/E ratio of 24.43 and a P/B ratio of 2.5, the stock appears reasonably valued given its strong operational performance and growth prospects. The dividend yield of 3.26% and free cash flow yield of 6.0% provide attractive returns for investors. With a solid balance sheet and a strong development pipeline, First Industrial is well-positioned to capitalize on favorable industrial market trends, making it a compelling choice for investors seeking exposure to the industrial real estate sector.

3. NewsRoom

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First Industrial Realty Trust, Inc. $FR Shares Sold by Fisher Asset Management LLC

Dec -05

Source: defenseworld.net

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Land & Buildings Issues Presentation Detailing First Industrial's Underappreciated Portfolio Quality and Substantial Discount to NAV

Dec -04

Source: businesswire.com

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Activist investor Litt urges changes at First Industrial Realty to boost stock, sources say

Dec -04

Source: reuters.com

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First Industrial Realty Trust, Inc. (NYSE:FR) Receives Consensus Recommendation of “Hold” from Brokerages

Dec -04

Source: defenseworld.net

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First Industrial: This Undervalued Coastal Logistics REIT Is Still Crushing It

Dec -03

Source: seekingalpha.com

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First Industrial: Not Too Late To Get In But Bargain Window Is Closing

Dec -01

Source: seekingalpha.com

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Investors Buy Large Volume of Call Options on First Majestic Silver (NYSE:AG)

Nov -29

Source: defenseworld.net

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.30%)

6. Segments

Same Store Properties

Expected Growth: 8%

Same Store Properties from First Industrial Realty Trust, Inc. achieved 8% growth driven by strong demand for industrial space, e-commerce growth, and limited supply in key markets. Additionally, the company's focus on high-quality, infill properties and strategic capital investments contributed to the growth. Furthermore, the company's ability to maintain high occupancy rates and increase rental rates also supported the growth.

(Re) Developments

Expected Growth: 12%

First Industrial Realty Trust's 12% growth is driven by increasing demand for industrial properties, e-commerce growth, and strategic acquisitions. Strong operating fundamentals, including high occupancy rates and rent growth, also contribute to the company's expansion. Additionally, the company's focus on high-barrier, infill markets and its ability to redevelop and reposition properties further support its growth momentum.

Other

Expected Growth: 6%

First Industrial Realty Trust's 6% growth is driven by increasing demand for industrial properties, e-commerce growth, and limited supply in key markets. Additionally, the company's strategic acquisitions, development projects, and strong operating performance contribute to its growth. Furthermore, the company's focus on high-barrier, high-growth markets and its ability to increase rents also support its growth momentum.

Acquired Properties

Expected Growth: 11%

The 11% growth in Acquired Properties from First Industrial Realty Trust, Inc. is driven by increasing demand for industrial spaces, strategic property acquisitions, and expansion into high-growth markets. Additionally, the company's focus on modernizing its portfolio through redevelopment and renovation projects has also contributed to the growth.

Sold Properties

Expected Growth: 4%

Strong demand for industrial properties, driven by e-commerce growth and supply chain shifts, has fueled Sold Properties' 4% growth. Additionally, First Industrial Realty Trust's strategic portfolio repositioning, focus on high-barrier markets, and effective capital allocation have contributed to this growth. Furthermore, the company's ability to capitalize on dispositions and redeploy capital into higher-yielding assets has also driven growth.

7. Detailed Products

Industrial Properties

First Industrial Realty Trust, Inc. owns and operates industrial properties, including warehouses, distribution centers, and light industrial facilities.

Rental Properties

The company offers rental properties for industrial and commercial use, providing flexible lease terms and customized solutions for businesses.

Development and Construction Services

First Industrial Realty Trust, Inc. provides development and construction services, including build-to-suit projects and property renovations.

Property Management Services

The company offers property management services, including maintenance, repairs, and administrative support for industrial properties.

Investment and Acquisition Services

First Industrial Realty Trust, Inc. provides investment and acquisition services, including property acquisition, disposition, and investment management.

8. First Industrial Realty Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for First Industrial Realty Trust, Inc. is medium due to the availability of alternative industrial properties and logistics services.

Bargaining Power Of Customers

The bargaining power of customers for First Industrial Realty Trust, Inc. is low due to the company's diversified customer base and long-term leases.

Bargaining Power Of Suppliers

The bargaining power of suppliers for First Industrial Realty Trust, Inc. is medium due to the company's dependence on a few large contractors and suppliers.

Threat Of New Entrants

The threat of new entrants for First Industrial Realty Trust, Inc. is low due to the high barriers to entry in the industrial real estate market.

Intensity Of Rivalry

The intensity of rivalry for First Industrial Realty Trust, Inc. is high due to the competitive industrial real estate market and the presence of several large players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.71%
Debt Cost 3.95%
Equity Weight 53.29%
Equity Cost 9.23%
WACC 6.76%
Leverage 87.64%

11. Quality Control: First Industrial Realty Trust, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
STAG Industrial

A-Score: 6.1/10

Value: 3.4

Growth: 5.4

Quality: 7.2

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
LXP Industrial Trust

A-Score: 5.9/10

Value: 3.6

Growth: 2.2

Quality: 6.6

Yield: 9.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
First Industrial Realty Trust

A-Score: 5.9/10

Value: 2.5

Growth: 5.6

Quality: 8.0

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Terreno Realty

A-Score: 5.8/10

Value: 2.4

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
EastGroup Properties

A-Score: 5.8/10

Value: 2.0

Growth: 6.1

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Rexford Industrial Realty

A-Score: 5.7/10

Value: 3.0

Growth: 7.0

Quality: 6.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.85$

Current Price

57.85$

Potential

-0.00%

Expected Cash-Flows