Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - First Industrial Realty Trust (NYSE:FR), which boasts a 12-year streak of dividend increases and an impressive 3.6% yield, maintained its Buy rating and $55.00 price target at Truist Securities following better-than-expected second-quarter results. According to InvestingPro, the REIT maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.
The industrial REIT reported funds from operations (FFO) per share of $0.76 for the second quarter of 2025, exceeding both consensus estimates and Truist Securities’ forecast of $0.73 per share.
The outperformance was primarily driven by higher net operating income, which contributed an additional $0.03 per share due to increased executed renewal square footage, slightly higher spreads, and better net operating expenses.
Despite the earnings beat, First Industrial maintained its full-year 2025 FFO guidance at $2.92 per share, compared to consensus estimates of $2.90 and Truist Securities’ projection of $2.91 per share. The company left major assumptions unchanged, including its forecast for 6.5% year-over-year cash same-store net operating income growth.
First Industrial has leased 158,000 square feet of its approximately 1.5 million square foot development leasing budget for 2025, with all remaining leasing activity scheduled for the fourth quarter, representing a potential $0.02 per share impact.
In other recent news, First Industrial Realty Trust reported second-quarter earnings that exceeded analyst expectations, driven by significant rental rate growth and strong renewal activity. The company posted earnings per share of $0.42, surpassing the analyst estimate of $0.38. Revenue for the quarter reached $180.16 million, above the consensus estimate of $177.59 million and up 9.8% from the previous year. First Industrial also achieved cash same-store net operating income growth of 8.7%, reflecting increases in rental rates on new and renewal leases. The company reported a 28.0% increase in cash rental rates on new and renewal leases during the quarter. First Industrial has achieved a cash rental rate increase of approximately 33% on leases signed to-date commencing in 2025. In-service occupancy was 94.2% at the end of the second quarter. The company maintained its full-year 2025 FFO guidance of $2.88 to $2.96 per share. Additionally, Fitch Ratings upgraded First Industrial’s senior unsecured debt ratings to ’BBB+’ in May, and the company completed its first public bond offering since 2007.
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