First Industrial Realty Trust, Inc.'s Revenue Soars 9.77% in Strong Q2 2025

First Industrial Realty Trust, Inc. (NYSE: FR) announced strong financial results for the second quarter of 2025. The company reported diluted net income available to common stockholders per share (EPS) of $0.42, an increase from $0.39 in the same period last year. Revenue for the quarter reached $180,163 thousand, up from $164,136 thousand in the second quarter of 2024, representing a 9.77% year-over-year increase. Net income saw a 7.57% increase, rising to $56,879 thousand from $52,876 thousand in the prior year.

Portfolio Performance Highlights

The company's portfolio demonstrated robust performance, with cash rental rates on new and renewal leasing increasing 28.0% in the second quarter, and 47.1% on a straight-line basis. Excluding a previously disclosed 1.3 million square-foot fixed-rate renewal, these increases were 46.1% and 67.3%, respectively. Cash basis same store net operating income (SS NOI) before termination fees increased 8.7%, driven by higher rental rates and contractual rent escalations, despite lower average occupancy. In-service occupancy stood at 94.2% at the end of the second quarter of 2025.

Strategic Development and Capital Initiatives

During the second quarter, First Industrial Realty Trust, Inc. leased 58,000 square feet of its 107,000 square-foot First Loop Logistics Park Building 4 in Orlando. The company also commenced two new development projects totaling 402,000 square feet with an estimated total investment of $54 million, including First Park 121 Building F in Dallas and First Park New Castle Building B in Philadelphia. On the capital markets front, the company received an upgrade to its senior unsecured debt ratings to 'BBB+' from Fitch Ratings and successfully completed its first public bond offering since 2007, issuing $450 million of 5.25% senior unsecured notes due January 2031.

Management Outlook

Peter E. Baccile, First Industrial's president and chief executive officer, highlighted the strong performance of the company's diverse portfolio, noting cash rental rate growth among sector leaders and healthy renewal activity. He expressed anticipation for further clarity on tariffs, which would benefit demand for logistics real estate. Scott Musil, First Industrial's chief financial officer, emphasized the strengthening of the company's capital position through the recent bond offering. For the full year 2025, First Industrial Realty Trust, Inc. anticipates diluted net income available to common stockholders per share between $1.53 and $1.61, and NAREIT Funds From Operations (FFO) per share/unit between $2.88 and $2.96. The guidance assumes average quarter-end in-service occupancy of 95.0% to 96.0% and SS NOI growth on a cash basis of 6.0% to 7.0% before termination fees.