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First Industrial Realty Trust Reports Second Quarter 2023 Results

  • Cash Rental Rates Up 74.1% in 2Q23
  • Cash Rental Rate Increase of 63% on Leases Signed To-Date Commencing in 2023
  • Cash Same Store NOI Growth of 10.8% in 2Q23; Occupancy of 97.7% at Quarter-End
  • Renewed Largest 2024 Lease Rollover of 700,000 Square Feet
  • Signed 673,000 Square Feet of New Leases for Speculative Developments in the Second Quarter and Third Quarter To-Date Inclusive of Joint Venture
  • 2023 FFO Guidance Increased $0.01 at Midpoint to $2.35 to $2.43 Per Share/Unit Which Excludes $0.02 Per Share 1Q23 Accelerated Recognition of Tenant Improvement Reimbursement

First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of industrial real estate, today announced results for the second quarter of 2023. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.41, compared to $0.88 a year ago and second quarter FFO was $0.61 per share/unit on a diluted basis, compared to $0.56 per share/unit a year ago.

“Our team delivered another quarter of strong financial and operating results,” said Peter E. Baccile, president and chief executive officer of First Industrial. “We grew our same store cash net operating income 10.8%. We also achieved cash rental rate growth of 74% on new and renewal leases commencing in the quarter, establishing a new company record."

Portfolio Performance

  • In service occupancy was 97.7% at the end of the second quarter of 2023, compared to 98.7% at the end of the first quarter of 2023, and 98.4% at the end of the second quarter of 2022.
  • Cash rental rates increased 74.1% and increased 97.1% on a straight-line basis.
  • The Company has achieved a cash rental rate increase of approximately 63% on leases signed to date commencing in 2023 reflecting 81% of 2023 rollovers.
  • The Company renewed its largest 2024 lease expiration at its 700,000 square-foot facility in Nashville.
  • Same store cash basis net operating income before termination fees (“SS NOI”) increased 10.8% reflecting increases in rental rates on new and renewal leasing and contractual rent escalations, offset by slightly lower average occupancy, higher free rent and an increase in real estate taxes.

Development Leasing

During the second quarter, the Company:

  • Leased 50% of the 129,000 square-foot First Steele in Seattle.
  • Leased 100% of the 56,000 square-foot First Park Miami Building 13 in South Florida.

In the third quarter to-date, the Company:

  • Leased 100% of the 132,000 square-foot FirstGate Commerce Center in South Florida. The lease is expected to commence in the third quarter.
  • Leased 100% of the 421,000 square-foot Building B at its Camelback 303 business park joint venture in Phoenix. The lease is expected to commence in the first quarter of 2024.

Investment and Disposition Highlights

In the second quarter, the Company:

  • Commenced development of two projects totaling 294,000 square feet with an estimated total investment of $65 million comprised of:
    • First Park Miami Building 12 in South Florida - 136,000 square feet; $34 million estimated investment.
    • First Harley Knox Logistics Center in the Inland Empire - 159,000 square feet; $31 million estimated investment
  • Acquired three sites in Miami, the Inland Empire and the Lehigh Valley for $60 million that can support up to 3.1 million square feet of development. We also added one additional site in the Inland Empire for $13 million that, when combined with a site we already own, can accommodate up to 550,000 square feet of development.
  • Acquired a 15,000 square-foot building in the Inland Empire for $5 million.
  • Sold a 183,000 square-foot building in Houston and one land site in Minneapolis for a total of $17 million.

Outlook for 2023

"Industrial market fundamentals are healthy overall. The pace of leasing decisions within our in-service portfolio continues to be strong, while the timeframes for prospective tenants evaluating new space commitments have lengthened,” added Mr. Baccile. “We have adjusted our occupancy guidance by 75 basis points at the midpoint to reflect extended lease-up assumptions for certain developments that will enter our in-service pool in the third and fourth quarters. With the benefit of early leasing at other development projects and higher capitalized interest, we are raising our outlook for FFO per share for 2023 by $0.01 per share at the midpoint.”

First Industrial Q2 2023 Outlook

The following assumptions were used for guidance:

  • Average quarter-end in service occupancy of 97.0% to 98.0%, a decrease of 75 basis points at the midpoint. The guidance reflects adjustments to lease-up timing assumptions for developments that will be placed in-service in the third and fourth quarters of 2023.
  • SS NOI growth on a cash basis before termination fees of 7.75% to 8.75% for the full year. 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 related to the Company's share of the ground lease rent from the previously disclosed purchase option agreement.
  • Includes the incremental costs expected in 2023 related to the Company’s developments completed and under construction as June 30, 2023. In total, the Company expects to capitalize $0.10 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, July 20, 2023 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (877) 870-4263, 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 second 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 an unconsolidated joint venture.

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 69.4 million square feet of industrial space as of June 30, 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 attached PDF. 

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



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