Bullish indicating open at $55-$60, IPO prices at $37
CHICAGO - First Industrial Realty Trust (NYSE:FR) shares rose 1.3% in after hours trading Wednesday after the logistics real estate owner reported second quarter earnings that exceeded analyst expectations, driven by strong rental rate growth and healthy renewal activity.
The company posted earnings per share of $0.42 for the second quarter, surpassing the analyst estimate of $0.38. Revenue came in at $180.16 million, above the consensus estimate of $177.59 million and up 9.8% from $164.14 million in the same quarter last year.
First Industrial reported impressive cash same store net operating income growth of 8.7% in the quarter, primarily reflecting increases in rental rates on new and renewal leasing and contractual rent escalations, partially offset by lower average occupancy. Cash rental rates on new and renewal leases increased 28.0% in the quarter.
"Our diverse portfolio continues to perform strongly with cash rental rate growth among the sector leaders coupled with healthy renewal activity," said Peter E. Baccile, First Industrial’s president and chief executive officer.
The company has achieved a cash rental rate increase of approximately 33% on leases signed to-date commencing in 2025, representing 88% of 2025 expirations by square footage. Excluding a 1.3 million square-foot fixed-rate renewal, the cash rental rate increase rises to 38%.
In-service occupancy was 94.2% at the end of the second quarter, compared to 95.3% at the end of both the first quarter of 2025 and the second quarter of 2024.
First Industrial maintained its full-year 2025 FFO guidance of $2.88 to $2.96 per share. The company also received an upgrade of its senior unsecured debt ratings to ’BBB+’ from Fitch Ratings in May and completed its first public bond offering since 2007.
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