First Industrial Realty Trust Reports Strong Third Quarter 2024 Earnings

Strategic Insights -

First Industrial Realty Trust, Inc., a leading fully integrated owner, operator, and developer of logistics real estate, announced its third quarter 2024 financial results, showcasing solid operating metrics, important leases, and capital deployment actions. The company's diluted net income available to common stockholders per share was $0.75, a 32% increase from the same period last year. Third quarter funds from operations (FFO) was $0.68 per share/unit on a diluted basis, a 10% increase from the same period last year. The company's portfolio performance remains strong, with in-service occupancy at 95.0% at the end of the third quarter, compared to 95.3% at the end of the second quarter and 95.4% at the end of the third quarter of 2023.

Key Takeaways:

  • The company's diluted net income available to common stockholders per share was $0.75 in the third quarter, a 32% increase from the same period last year.
  • Third quarter funds from operations (FFO) was $0.68 per share/unit on a diluted basis, a 10% increase from the same period last year.
  • The company achieved a cash rental rate increase of approximately 51% on leases signed to-date commencing in 2024, reflecting 97% of 2024 expirations by square footage.
  • The company achieved a cash rental rate increase of approximately 33% on leases signed to-date commencing in 2025, reflecting 37% of 2025 expirations by square footage.
  • Cash basis same store net operating income before termination fees ("SS NOI") increased 7.6% for the third quarter, reflecting increases in rental rates on new and renewal leasing and contractual rent escalations.
  • The company leased 100% of the 461,000 square-foot First Pioneer Logistics Center in the Inland Empire, commenced in the third quarter.
  • The company commenced development of First Rockdale VII in Nashville, a 542,000 square-foot project with an estimated investment of $54 million.
  • The company acquired a four-building fully leased portfolio in Houston, totaling 211,000 square feet, for $29 million.
  • The company sold a seven-building portfolio in New Jersey, totaling 445,000 square feet, for $82 million.
  • The company sold three buildings in Central Pennsylvania, totaling 163,000 square feet, for $19 million.
  • The company raised its FFO per share guidance by two cents at the midpoint, from $2.61 to $2.65, citing strong operating performance and successful lease renewals.

Statistics:

  • Diluted net income available to common stockholders per share: $0.75
  • Third quarter funds from operations (FFO) per share/unit: $0.68
  • Cash rental rate increase on leases signed to-date commencing in 2024: 51%
  • Cash rental rate increase on leases signed to-date commencing in 2025: 33%
  • Cash basis same store net operating income before termination fees ("SS NOI") growth: 7.6%
  • In-service occupancy at the end of the third quarter: 95.0%
  • Estimated investment for First Rockdale VII in Nashville: $54 million
  • Total square footage of the four-building fully leased portfolio acquired in Houston: 211,000 square feet
  • Total square footage of the seven-building portfolio sold in New Jersey: 445,000 square feet
  • Total square footage of the three buildings sold in Central Pennsylvania: 163,000 square feet

Sources:

  • "First Industrial Realty Trust, Inc. Announces Third Quarter 2024 Results" (October 16, 2024)
  • "First Industrial Realty Trust, Inc. Provides Third Quarter 2024 Supplemental Information" (October 16, 2024)
  • "First Industrial Realty Trust, Inc. Hosts Quarterly Conference Call" (October 17, 2024)
  • NAREIT definition of Funds From Operations (FFO)