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First Industrial Realty Trust Reports Third Quarter 2023 Results

  • 60% Cash Rental Rate Increase on Leases Signed To-Date Commencing in 2023
  • 38% Cash Rental Rate Increase on 2024 Rollovers Signed To-Date
  • Cash Same Store NOI Growth of 7.4% in 3Q23, 8.7% YTD 3Q23
  • Sold 39 Acres in Phoenix On Balance Sheet for $41 Million
  • Signed 955,000 Square Feet of New Leases for Speculative Developments in the Third Quarter and Fourth Quarter To-Date Inclusive of Joint Venture
  • 2023 FFO Guidance Increased $0.01 at Midpoint

First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of logistics real estate, today announced results for the third quarter of 2023. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.57, compared to $0.94 a year ago and third quarter FFO was $0.62 per share/unit on a diluted basis, compared to $0.60 per share/unit a year ago.

“Our financial results reflect the continuing solid overall fundamentals in our sector and the strength of our operations,” said Peter E. Baccile, president and chief executive officer of First Industrial. “We have made good progress to date on our 2024 expirations where we continue to achieve strong cash rent growth.”

Portfolio Performance

  • In service occupancy was 95.4% at the end of the third quarter of 2023, compared to 97.7% at the end of the second quarter of 2023, and 98.3% at the end of the third quarter of 2022. Third quarter 2023 occupancy excluding the impact of developments placed in service was 97.1%.
  • Cash rental rates increased 39.4% and increased 59.7% on a straight-line basis in the third quarter of 2023.
  • Cash rental rate increase of approximately 60% on leases signed to-date commencing in 2023 reflecting 97% of 2023 expirations.
  • The Company has achieved a cash rental rate increase of approximately 38% on leases signed to-date commencing in 2024 reflecting 40% of 2024 expirations.
  • Same store cash basis net operating income before termination fees (“SS NOI”) increased 7.4% reflecting increases in rental rates on new and renewal leasing, contractual rent escalations, and lower free rent, partially offset by slightly lower average occupancy and an increase in real estate taxes.

Development Leasing

During the third quarter, the Company:

  • Leased 100% of the 132,000 square-foot FirstGate Commerce Center in South Florida.
  • 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 fourth quarter of 2023.
  • Leased 50% of the 699,000 square-foot First Logistics Center @ 283 Building B in Central Pennsylvania.

In the fourth quarter to-date, the Company:

  • Leased 100% of the 37,000 square-foot First 92 in Northern California. The lease is expected to commence in the fourth quarter of 2023.
  • Leased 17,000 square feet at First Loop Logistics Park Building 3 in Orlando. The lease commenced in the fourth quarter of 2023.

Disposition and Investment Highlights

In the third quarter, the Company:

  • Sold 39 acres in Phoenix on balance sheet for a total of $41 million. Additionally, we entered into a 5-year ground lease for the remaining 100 acres on balance sheet that includes a purchase option exercisable beginning in year three.
  • Sold three buildings in Detroit comprised of 32,000 square feet for a total of $3 million.
  • Acquired one site in Nashville for $3 million that can support up to 542,000 square feet of development.

Outlook for 2023

“We are capturing strong rental rate increases on our renewals with the benefit of the healthy market rent growth the past several years,” added Mr. Baccile. “Prospective tenants for newly developed space remain deliberate in their decision-making given the evolving economic environment which is impacting lease-up timing. With the benefit of income from our new Phoenix ground lease, we are raising our outlook for FFO per share for 2023 by $0.01 per share at the midpoint.”

Q3 2023 Outllok

The following assumptions were used for guidance:

  • In service occupancy at year-end fourth quarter of 94.25% to 94.75%. This implies a full year quarter-end average in service occupancy of 96.5% to 96.6%, a decrease of 95 basis points at the midpoint. The midpoint of our end of fourth quarter occupancy guidance assumes the lease-up of the 644,000 square-foot facility in Baltimore in 2024. Developments placed in service in the third and fourth quarters of 2023 are now also assumed to be leased up in 2024.
  • Fourth quarter SS NOI growth on a cash basis before termination fees of 6.0% to 7.5%. This implies a quarterly average SS NOI growth for the full year 2023 of 8.0% to 8.5%. These ranges exclude $1.4 million of income related to insurance claim settlements recognized in 4Q22.
  • Includes $0.01 per share related to revenue from the aforementioned ground lease to a data center user that is investment grade rated. The ground lease commenced late in the third quarter.
  • Includes the incremental costs expected in 2023 related to the Company’s developments completed and under construction as September 30, 2023. In total, the Company expects to capitalize $0.10 per share of interest in 2023.
  • General and administrative expense of $34.5 million to $35.5 million, an increase of $0.5 million at the midpoint.
  • 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, October 19, 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 third 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 U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 69.4 million square feet of industrial space as of September 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 PDF version below. 

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


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