Advertisement
First Industrial Realty reported a robust third-quarter profit, driven by active leasing and higher rental rates, even though revenue slightly fell short of analyst expectations. Funds from operations (FFO) per share rose to USD 0.76 from USD 0.68 year-over-year, prompting the company to raise its 2025 NAREIT FFO guidance to USD 2.94-2.98 per share/unit. Year-end occupancy is expected between 94% and 96%, with same-store net operating income projected to grow 7-7.5%. Leasing highlights included 772,000 sq. ft. of new agreements, strong rental rate increases, and growing tenant interest in key markets such as Phoenix and South Florida.
First Industrial Realty posted a strong third-quarter profit, supported by active leasing across its industrial property portfolio, even though total revenue fell slightly below expectations. The company reported Q3 revenue of USD 181.43 million, just below the analyst consensus of USD 182.02 million. Net income for the quarter reached USD 67.36 million. Adjusted funds from operations (FFO) increased to USD 86.61 million, with FFO per share rising to USD 0.76, compared with USD 0.68 in the same quarter last year. Advertisement
The company raised its 2025 NAREIT FFO guidance to a range of USD 2.94-2.98 per share/unit, reflecting confidence in continued operational strength. First Industrial expects its year-end occupancy to be between 94% and 96%, while same-store net operating income (SS NOI) is projected to grow by 7-7.5% for the full year. This follows consistent performance in the previous quarters, where leasing activity and rent growth contributed to stable returns despite broader market pressures.
Leasing activity was a major driver of the quarter's performance. The company signed 772,000 sq. ft. of new leases for development projects during Q3 and into the current period, including significant agreements in Phoenix and South Florida. Rental rates for leases commencing in 2025 rose by 32%, excluding fixed-rate renewals, highlighting strong demand for industrial space. CEO Peter E. Baccile noted that tenant traffic has increased as prospective tenants evaluate long-term space needs, demonstrating a steady demand for well-located industrial properties.
First Industrial continues to receive positive analyst sentiment. Out of 19 analysts covering the stock, nine recommend "buy" or "strong buy", ten suggest hold, and none recommend "sell." This compares favorably with the average consensus recommendation for commercial REIT peers, which is "buy." Wall Street's median 12-month price target for the stock is USD 56, approximately 7% higher than its recent closing price of USD 51.93. The stock currently trades at a forward price-to-earnings ratio of 31, up from 29 three months ago, indicating modest valuation expansion.
Looking at past quarters, First Industrial has steadily increased its leasing activity and rental rates, which have consistently supported FFO growth. The company has maintained stable occupancy levels while responding to changing tenant requirements, positioning it for continued resilience in the industrial real estate market.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
