First Industrial Realty Trust stock poised to outperform after FFO beat

Published 16/10/2025, 11:54
First Industrial Realty Trust stock poised to outperform after FFO beat

Investing.com - First Industrial Realty Trust (NYSE:FR) reported third-quarter 2025 financial results that exceeded expectations, with funds from operations (FFO) beating analyst estimates. The company, currently valued at $7.3 billion by market cap, has maintained strong profitability with a 73% gross margin over the last twelve months.

The industrial real estate investment trust raised its fiscal year 2025 FFO guidance, increasing the midpoint by 1.4%, according to KeyBanc Capital Markets, which maintained its Sector Weight rating on the stock. According to InvestingPro, the company has raised its dividend for 12 consecutive years, with a current dividend yield of 3.3%.

Same-store net operating income (SSNOI) growth moderated to 6.1% in the quarter, representing a 260 basis point sequential decrease from the previous quarter. Excluding insurance claim recovery income, SSNOI growth was 5.4%.

The company maintained steady development leasing activity during the quarter, securing several new lease agreements including a full-building lease of approximately 190,000 square feet in the Inland Empire.

First Industrial Realty Trust stock has gained 9.9% year-to-date but is underperforming its traditional industrial REIT peers by approximately 490 basis points, which KeyBanc suggests creates a "low bar" for the stock, with expectations it will outperform in the next trading session.

In other recent news, First Industrial Realty Trust reported its second-quarter 2025 earnings, highlighting a robust performance. The company achieved a notable increase in Funds from Operations (FFO), reaching $0.76 per fully diluted share, compared to $0.66 in the same quarter of the previous year. Additionally, First Industrial Realty Trust experienced a significant cash same-store Net Operating Income (NOI) growth of 8.7%, despite a slight decline in occupancy rates. These developments indicate the company’s ability to maintain strong financial performance amidst changing market conditions. Analyst firms have not yet provided updates on upgrades or downgrades following these results. Overall, these recent developments reflect First Industrial Realty Trust’s continued focus on enhancing its financial metrics.

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