What is the market's earnings forecast for First Industrial Realty Trust next quarter?

What were the key takeaways from First Industrial Realty Trust’s earnings call?

What is the revenue and EPS growth rate for First Industrial Realty Trust year over year?

What is First Industrial Realty Trust's gross profit margin?

What guidance did First Industrial Realty Trust's management provide for the next earnings period?

What does First Industrial Realty Trust do and what are its main business segments?

What were the key takeaways from First Industrial Realty Trust's earnings call?

Did First Industrial Realty Trust beat or miss consensus estimates last quarter?

- **Record Leasing Achievement**: 501,000 sq ft leased in 45 days at Phoenix project, eliminating $0.02 per share drag.
- **Strong Cash Flow Growth**: 33% cash rental rate growth, 8.7% same-store NOI expansion.
- **New Development Pipeline**: $54M in Dallas/Philadelphia projects targeting 8% yields.
- **Tariff Uncertainty**: Mixed tenant behavior, but e-commerce/3PLs driving activity.
- **Financial Strength**: $450M bond issuance at 5.25%, narrowing 2025 FFO to $2.92 per share.

**【CEO Opening Remarks】**
- Portfolio performance strong with 94.2% in-service occupancy, despite a 110 bps decline due to a Central PA move-out and new developments entering the pool.
- Cash rental rate growth of 33% (38% excluding fixed-rate renewal), on track for 30-40% annual growth.
- New development leases: 501,000 sq ft at Camelback 303 (Phoenix) and 58,000 sq ft at First Loop (Orlando), bringing total project to 100% leased.
- 2025 rollovers: 88% completed by square footage.
- New starts: 176,000 sq ft in Dallas and 226,000 sq ft in Philadelphia, targeting 8% cash yields.
- Tariff uncertainty continues to dampen tenant decision-making, but e-commerce and 3PLs remain active.

**【CFO Financial Commentary】**
- NAREIT FFO: $0.76 per share (vs. $0.66 in 2Q 2024), driven by rental rate growth and contractual bumps.
- Cash same-store NOI growth: 8.7% (excluding termination fees).
- Capital markets: $450M senior unsecured notes issued at 5.25%, narrowing 2025 FFO guidance to $2.88-$2.96 per share (midpoint $2.92).
- Interest expense impact: Higher in H2 due to development funding and bond issuance.
- 2025 development leasing assumption: 1.5M sq ft to be leased by year-end.

**【Q&A Highlights】**
- **Development Leasing Success**: 501,000 sq ft leased at Camelback 303 in 45 days, eliminating $0.02 per share drag in guidance.
- **Construction Costs**: Down 5-10% YoY, stabilizing in 2025 with slight steel and copper price pressures.
- **Tariff Impact**: Tenants split between pausing (e.g., HQ directives) and moving forward (e.g., Amazon-like urgency).
- **Build-to-Suit Strategy**: Lower returns than spec development, executed sparingly for strategic fits.
- **2026-2027 Expirations**: Higher proportion in Dallas and Atlanta, consistent with 2025 trends.
- **Market Strength**: Nashville, Florida submarkets, and infill Dallas/Houston performing best.


First Industrial Realty Trust, Inc. (FR) Q2 2025 Earnings Call Transcript

- **Strong Leasing Momentum**: 73% of 2025 expirations leased with 30% rental rate growth, targeting 30-40% annual increase.
- **Development Pipeline**: 830K sq ft under construction with 43% pre-leasing, targeting 8%+ yields.
- **Tariff Impact Limited**: Minimal exposure to Chinese 3PLs (450K sq ft), no material disruption to auto tenants.
- **Financial Resilience**: FFO guidance unchanged at $2.87-$2.97, with $0.02/share sensitivity to Q4 leasing.
- **Market Outlook**: Tight supply/demand in key markets (South Florida, Inland Empire), 5.9% U.S. vacancy rate.


**【CEO Summary Section】**
- **Market Overview**: U.S. industrial vacancy at 5.9% in Tier 1 markets, with 56M sq ft net absorption. New construction starts down 75% YoY to 54M sq ft. 
- **Leasing Performance**: 95.3% in-service occupancy. 73% of 2025 expirations leased, with 30% cash rental rate increase (36% ex fixed-rate renewal). Full-year target: 30-40% growth.
- **Development Activity**: 
  - 176K sq ft facility in Dallas (8% yield)
  - 226K sq ft in Philadelphia (8% yield)
  - Acquired 796K sq ft in Phoenix (6.4% yield)
- **Tariff Impact**: Uncertainty in trade negotiations may delay tenant decision-making, but no immediate impact on occupancy.

**【CFO Financial Commentary】**
- **Q1 2025 Results**: 
  - FFO: $0.68 vs $0.60 YoY
  - Cash same-store NOI: 10.1% growth
  - In-service occupancy: 95.3% (down 90bps YoY)
- **Leasing Activity**: 1.3M sq ft leased (400K new, 800K renewals)
- **Capital Structure**: 
  - Renewed $850M credit facility to 2030
  - $200M term loan extended to 2030
  - Next maturity in 2027
- **Guidance**: 
  - FFO: $2.87-$2.97
  - Same-store NOI: 6-7%
  - 1.5M sq ft development leasing assumed in Q4

**【Q&A Key Themes】**
1. **Tariff Exposure**: Minimal direct impact (450K sq ft leased to Chinese 3PLs). Auto tenants not materially affected.
2. **Leasing Momentum**: 70-75% rollover retention expected. 1.5M sq ft Q4 leasing could miss by $0.02/share.
3. **Development Risk**: 8%+ yields on new starts; 43% pre-leasing on 830K sq ft pipeline.
4. **Bad Debt**: $1M reserve vs $1.8M during COVID. Current tenants compliant on rent.
5. **Market Trends**: Inland Empire improving (3M sq ft absorption). South Florida, Nashville, Dallas submarkets strong.


First Industrial Realty Trust (FR)-17 Apr 25-2025 Q1 Earnings call transcript

- **Record Development Leasing**: 4.7M sq. ft. signed in '24 (vs. 2.8M budget), driving 51% cash rental rate growth.
- **10% FFO Growth Guidance**: 2025 midpoint reflects 1.6M sq. ft. lease-up and stable 96%+ occupancy.
- **Pennsylvania, Texas, Florida Focus**: New starts targeting underserved smaller tenants with 7%+ yields.
- **Dividend Hike**: 20.3% increase to $0.445/share, supported by strong cash flow.
- **Key Risks**: 700K sq. ft. move-out in PA, elevated Southern California supply, trade policy uncertainty.
- **Construction Costs Down**: 10% YoY in '24; 2025 projects at 6-7% cash returns.


**【CEO Summary Section】**
- Delivered strong 2024 performance with 4.7 million sq. ft. of development leasing (vs. 2.8M sq. ft. budget), achieving second-highest volume since 2012 relaunch.
- Cash rental rate growth of 51% YoY, second highest in 30-year history, with 33% increase for 2025 leases signed to date.
- 2025 FFO growth expected at 10% midpoint, driven by development lease-up and stable occupancy (96.2% Q4 '24).
- Focused on Pennsylvania, Texas, and Florida for new development starts, targeting underserved smaller tenants.
- Dividend increased 20.3% to $0.445/share, aligned with cash flow growth.

**【CFO Financial Commentary】**
- NAREIT FFO per share: $0.71 (Q4 '24) vs. $0.63 (Q4 '23); Full year FFO growth 8.6% to $2.65.
- Cash same-store NOI growth: 9.3% Q4 '24 (excl. termination fees), 8.1% full year.
- 2025 guidance: $220M development spend, 1.6M sq. ft. development lease-up (weighted to H2), and $75M asset sales.
- Bad debt expense at $700K in '24 (10 bps of revenue), stable at $1M '25 assumption.

**【Key Market Insights】**
- **Nashville**: 3% vacancy, 1.7% new supply; 542K sq. ft. building leased 9 months ahead of completion.
- **Southern California**: Vacancy rising but demand improving post-election; 22% YoY port volume growth.
- **Denver**: Occupancy improving, 863M sq. ft. leases signed nationally in '24, third-highest on record.
- **Pennsylvania**: 1.3M sq. ft. fixed-rate renewal; 362K sq. ft. development in Lehigh Valley targeting smaller tenants.

**【Risks & Challenges】**
- 700K sq. ft. move-out in Central PA Q2 '25; 140 bps lease-up opportunity from '23/'24 developments.
- Southern California facing elevated supply but improving momentum; automation impact minimal on space needs.
- Global trade policy uncertainty (tariffs on China/Mexico) could affect tenant behavior, though no impact seen yet.

**【Q&A Highlights】**
- 2025 development pipeline: 1.6M sq. ft. lease-up (mostly '23/'24 developments), 4 new projects in Inland Empire/Miami.
- Tenant retention rate 77% in '24, expected to remain stable.
- Construction costs down 10% YoY in '24; 2025 projects yielding 6-7% cash returns.
- 2025 net absorption expected to accelerate in H2, but cautious on timing of market inflection.


First Industrial Realty Trust (FR)-6 Feb 25-2024 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-17 Oct 24-2024 Q3 Earnings call transcript

First Industrial Realty Trust (FR)-18 Jul 24-2024 Q2 Earnings call transcript

First Industrial Realty Trust (FR)-18 Apr 24-2024 Q1 Earnings call transcript

First Industrial Realty Trust (FR)-8 Feb 24-2023 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-19 Oct 23-2023 Q3 Earnings call transcript

First Industrial Realty Trust (FR)-20 Jul 23-2023 Q2 Earnings call transcript

First Industrial Realty Trust (FR)-20 Apr 23-2023 Q1 Earnings call transcript

First Industrial Realty Trust (FR)-9 Feb 23-2022 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-20 Oct 22-2022 Q3 Earnings call transcript

First Industrial Realty Trust (FR)-21 Jul 22-2022 Q2 Earnings call transcript

First Industrial Realty Trust (FR)-11 Feb 21-2020 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-22 Oct 20-2020 Q3 Earnings call transcript

First Industrial Realty Trust (FR)-23 Jul 20-2020 Q2 Earnings call transcript

First Industrial Realty Trust (FR)-23 Apr 20-2020 Q1 Earnings call transcript

First Industrial Realty Trust (FR)-13 Feb 20-2019 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-26 Oct 19-2019 Q3 Earnings call transcript

First Industrial Realty Trust (FR)-25 Jul 19-2019 Q2 Earnings call transcript

First Industrial Realty Trust (FR)-24 Apr 19-2019 Q1 Earnings call transcript

First Industrial Realty Trust (FR)-14 Feb 19-2018 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-25 Oct 18-2018 Q3 Earnings call transcript

First Industrial Realty Trust (FR)-26 Jul 18-2018 Q2 Earnings call transcript

First Industrial Realty Trust (FR)-25 Apr 18-2018 Q1 Earnings call transcript

First Industrial Realty Trust (FR)-23 Feb 18-2017 Q4 Earnings call transcript

First Industrial Realty Trust (FR)-26 Oct 17-2017 Q3 Earnings call transcript

FR

FR fundamentals

Earnings Call

You can ask Aime