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First Industrial Realty Trust Reports First Quarter 2023 Results

  • Cash Rental Rates Up 58.3%
  • Cash Rental Rate Increase of 56% on Leases Signed To Date Commencing in 2023
  • Occupancy of 98.7%; Cash Same Store NOI Growth of 8.1%
  • Signed 394,000 Square Feet of New Leases for Speculative Developments Year-To-Date
  • Started a 358,000 Square-Foot Development in the Philadelphia Market, Estimated Investment of $61 Million
  • Sold 31 Acres at Camelback 303 Joint Venture in Phoenix for $50 Million; FR's Share of Gain and Incentive Fee Before Tax of $24 Million; Purchase Option Agreement and Ground Lease with Buyer for Additional 71 Acres
  • 2023 FFO Guidance Increased $0.04 at Midpoint to $2.33 to $2.43 Per Share/Unit, Excluding1Q23 Accelerated Recognition of Tenant Improvement Reimbursement
  • Increased First Quarter 2023 Dividend to $0.32 Per Share, an 8.5% Increase

First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of industrial real estate, today announced results for the first quarter of 2023. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.42, compared to $0.27 a year ago and first quarter FFO was $0.59 per share/unit on a diluted basis, compared to $0.53 per share/unit a year ago. Excluding $0.02 per share/unit of income related to the accelerated recognition of a tenant improvement reimbursement associated with a departing tenant in Dallas, first quarter 2023 FFO was $0.57 per share/unit.

“2023 is off to an excellent start with another strong quarter of operating results that reflect the strength of our portfolio and the talents of our team,” said Peter E. Baccile, president and chief executive officer of First Industrial. “We established a new company quarterly record for cash rental rate change of 58% while maintaining high occupancy and securing new customers for a few of our developments.”

Portfolio Performance

  • In service occupancy was 98.7% at the end of the first quarter of 2023, compared to 98.8% at the end of the fourth quarter of 2022, and 98.0% at the end of the first quarter of 2022.
  • Cash rental rates increased 58.3% and increased 85.3% on a straight-line basis.
  • The Company has achieved a cash rental rate increase of approximately 56% on leases signed to date commencing in 2023 reflecting 63% of 2023 rollovers.
  • Same store cash basis net operating income before termination fees (“SS NOI”) increased 8.1% reflecting increases in rental rates on new and renewal leasing, contractual rent escalations and higher average occupancy, slightly offset by higher free rent and an increase in real estate taxes.

Development Leasing

During the first quarter, the Company:

  • Leased 100% of the 198,000 square-foot First Park Miami Building 10 in South Florida. The lease is expected to commence upon completion in the second quarter.
  • Leased 100% of the 105,000 square-foot First Lehigh Logistics Center in the Lehigh Valley in Pennsylvania.
  • Leased the remaining 27,000 square feet at the 81,000 square-foot First Loop Logistics Park Building 2 in Central Florida.

In the second quarter to-date, the Company:

  • Leased 50% of the 128,000 square-foot First Steele in Seattle.

Investment and Disposition Highlights

In the first quarter, the Company:

  • Commenced development of First State Crossing in the Philadelphia market - 358,000 square feet; $61 million estimated investment.
  • Sold 31 acres at its Camelback 303 business park joint venture in Phoenix for $50 million; First Industrial's share of the gain and incentive fee before tax is $24 million. In conjunction with the sale, the joint venture entered into a purchase option agreement with the buyer for an additional 71 acres that requires the buyer to lease the ground for up to two years.

Common Stock Dividend

In the first quarter, the Company:

  • Paid a common dividend of $0.32 per share/unit for the quarter ending March 31, 2023 on April 17, 2023 to stockholders of record on March 31, 2023. The new dividend rate represented an 8.5% increase from the prior quarterly rate of $0.295 per share/unit.

Outlook for 2023

“On the strength of our leasing performance and contribution from our joint venture, we are raising our FFO per share guidance, before the accelerated tenant improvement reimbursement recognition, by four cents at the midpoint,” added Mr. Baccile. “We expect healthy rental rate changes on our new and renewal leasing for the balance of the year and we are keenly focused on leasing up our development pipeline to drive future cash flow.”

Outlook for 2023 - Q123

The following assumptions were used for guidance:

  • Average quarter-end in service occupancy of 97.75% to 98.75%.
  • SS NOI growth on a cash basis before termination fees of 7.75% to 8.75% for the full year, an increase of 25 basis points at the midpoint. This range excludes $1.4 million of income related to insurance claim settlements recognized in 4Q22.
  • FFO from Joint Venture of $0.02 per share primarily related to the Company's share of the ground lease rent from the aforementioned purchase option agreement.
  • Includes the incremental costs expected in 2023 related to the Company’s developments completed and under construction as March 31, 2023. In total, the Company expects to capitalize $0.09 per share of interest in 2023.
  • General and administrative expense of $34.0 million to $35.0 million.
  • Our guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, or equity issuances post the date of this press release.

Conference Call

First Industrial will host its quarterly conference call on Thursday, April 20, 2023 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (888) 317-6003, passcode "First Industrial". The conference call will also be webcast live on the Investors page of the Company’s website at The replay will also be available on the website.

The Company’s first quarter 2023 supplemental information can be viewed at under the “Investors” tab. 

FFO Definition

In accordance with the NAREIT definition of FFO, First Industrial calculates FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate. First Industrial also excludes the same adjustments from its share of net income from unconsolidated joint ventures.

About First Industrial Realty Trust, Inc.

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers. Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. In total, we own and have under development approximately 69.3 million square feet of industrial space as of March 31, 2023. For more information, please visit us at

Forward-Looking Statements

This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors which could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the outbreak of coronavirus disease 2019 (COVID-19); our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up schedules; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; technological developments, particularly those affecting supply chains and logistics; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2022, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the SEC. We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC.

A schedule of selected financial information can be found on the PDF version below. 

Contact:           Art Harmon, Vice President, Investor Relations and Marketing - (312) 344-4320



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