First Industrial Realty Trust stock initiated with Neutral rating at Cantor Fitzgerald

Published 01/10/2025, 10:44
First Industrial Realty Trust stock initiated with Neutral rating at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald initiated coverage on First Industrial Realty Trust (NYSE:FR), a $7.03 billion industrial REIT with a 3.46% dividend yield, with a Neutral rating and set a price target of $55.00, representing a potential 7.1% upside from current levels. According to InvestingPro analysis, the stock is currently fairly valued based on its proprietary Fair Value model.

The research firm based its price target on a 2026 estimated AFFO multiple of 21.2x, which is below the 22.7x average for First Industrial’s property sector peers.

Cantor Fitzgerald highlighted First Industrial’s speculative development platform as a distinguishing feature that carries both elevated risk and potential for higher returns.

The firm acknowledged First Industrial’s impressive track record but suggested that investors could find industrial real estate exposure with a better risk/return ratio elsewhere.

Cantor Fitzgerald indicated that while First Industrial would be well-positioned with fewer macroeconomic uncertainties, the development component of its business model makes it slightly less appealing despite the firm’s positive view on the industrial space overall.

In other recent news, First Industrial Realty Trust reported a robust second quarter for 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.42, exceeding the projected $0.38, and reported revenue of $180.16 million, which was above the expected $177.59 million. Additionally, First Industrial Realty Trust announced an at-the-market equity offering of up to $800 million, involving up to 16 million shares of its common stock. This offering was executed through agreements with ten financial institutions, including Wells Fargo Securities and BofA Securities. Jefferies has raised its price target for First Industrial Realty Trust to $57, maintaining a Buy rating due to a positive development outlook. Meanwhile, KeyBanc Capital Markets reiterated its Sector Weight rating following the company’s strong second-quarter earnings and a new lease agreement in Phoenix. These developments highlight the company’s strategic financial moves and analyst perspectives.

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