- First Industrial Realty Trust (FR, Financial) reports a significant 41.7% increase in cash rental rates for Q1 2025.
- The company increased its quarterly dividend by 20.3% to $0.445 per share.
- Notable acquisitions include two fully leased buildings in Phoenix for $120 million.
First Industrial Realty Trust, Inc. (FR) has announced robust financial performance for the first quarter of 2025. The company's cash rental rates on new and renewal leases surged by 41.7%, reflecting a 77.0% increase on a straight-line basis. This showcases the company's exceptional pricing power in the industrial market.
Cash Same Store Net Operating Income (NOI) registered a growth of 10.1%, demonstrating the company's successful lease-up efforts and ability to secure substantial rent increases. First Industrial Realty Trust has already secured leases for 73% of its 2025 expirations, with rental rates approximately 30% higher than previous rates, offering excellent visibility into sustained NOI growth.
From a capital structure perspective, First Industrial strengthened its financial position by renewing and upsizing its revolving credit facility to $850 million and extending its $200 million term loan. This move enhances liquidity and extends debt maturities on favorable terms.
The company's diluted earnings per share (EPS) for the first quarter came in at $0.36, down from $0.52 in the previous year. However, funds from operations (FFO) rose to $0.68 per share/unit, up from $0.60, supporting the substantial dividend increase to $0.445 per share.
In terms of acquisitions, First Industrial Realty Trust acquired two fully leased buildings in Phoenix totaling 796,000 square feet for $120 million at a cash yield of 6.4%. Additionally, plans for new developments totaling 402,000 square feet in Dallas and Philadelphia, with an expected investment of $54 million, are underway.
Looking forward, the company's 2025 FFO guidance ranges from $2.87 to $2.97 per share/unit, with a same-store NOI growth guidance of 6-7%, indicating continued strong performance.
Despite a slight decline in occupancy to 95.3%, the figure remains within the company's target range, aligning with year-ago levels.
