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First Industrial Realty Trust (FR)
NYSE:FR
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First Industrial Realty (FR) AI Stock Analysis

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FR

First Industrial Realty

(NYSE:FR)

Rating:74Outperform
Price Target:
$57.00
▲(11.42% Upside)
First Industrial Realty's strong financial performance and positive earnings call highlights are significant strengths. However, the high P/E ratio and technical indicators suggest caution. The balanced outlook from the earnings call and valuation concerns slightly temper the overall score.
Positive Factors
Financial Performance
FR reported 2Q25 FFO/sh. of $0.76, which was above consensus and analyst's estimate.
Growth Prospects
FR is maintaining one of the best growth rates among industrial REITs.
Negative Factors
Leasing Activity
New leasing activity was less robust this quarter compared to previous quarters.
Occupancy Levels
There was a decline in average occupancy, dropping by 110 basis points compared to the previous quarter.

First Industrial Realty (FR) vs. SPDR S&P 500 ETF (SPY)

First Industrial Realty Business Overview & Revenue Model

Company DescriptionFirst 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 64.1 million square feet of industrial space as of September 30, 2020.
How the Company Makes MoneyFirst Industrial Realty generates revenue primarily through leasing its industrial properties to a diverse range of tenants, including e-commerce companies, third-party logistics providers, and manufacturers. The company earns rental income from long-term lease agreements, which typically provide stable cash flows. Additionally, First Industrial may realize income from property management fees and development projects. Significant revenue streams include upfront lease payments and ongoing rent escalations tied to inflation or market rates. The company also engages in opportunistic acquisitions of industrial properties, enhancing its portfolio and income potential. Strategic partnerships with logistics firms and key industry players further support its earnings by ensuring high occupancy rates and demand for its properties.

First Industrial Realty Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q2-2025)
|
% Change Since: 3.75%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong rental rate growth and successful leasing activities, along with a favorable Fitch upgrade and bond offering. However, challenges such as a decline in occupancy, increased interest expenses, and tariff uncertainties were noted. While positive aspects were significant, the lowlights suggest a balanced outlook.
Q2-2025 Updates
Positive Updates
Strong Cash Rental Rate Growth
Overall cash rental rate increase for new and renewal leasing was 33%, with a potential increase to 38% excluding a large fixed rate renewal.
Successful Leasing Activity
Leased 501,000 square feet in Phoenix, bringing a 1.8 million square foot project to 100% leased, and 58,000 square feet at the First Loop project in Orlando.
Fitch Upgrade and Bond Offering
Upgraded to BBB+ by Fitch and launched a $450 million public bond offering with strong demand from investors.
High Same-Store NOI Growth
Cash same-store NOI growth for the quarter was 8.7%, driven by rental rate increases and contractual rent bumps.
Negative Updates
Occupancy Decline
In-service occupancy at quarter end was 94.2%, down 110 basis points from the previous quarter due to known move-outs and developments entering service.
Interest Expense Impact
Increased interest expenses expected in the second half of the year due to funding development pipeline and bond offering slightly dilutive.
Tariff Uncertainty Impact
Uncertainty around tariffs continued to dampen momentum around decision-making and leasing activity.
Company Guidance
During the First Industrial Realty Trust, Inc. Second Quarter 2025 Results Call, the company provided guidance for the fiscal year. The guidance for NAREIT funds from operations (FFO) was maintained at $2.92 per share at the midpoint, with a narrowed range of $2.88 to $2.96 per share. The company expects an average quarter-end in-service occupancy between 95% and 96%, and projects cash same-store net operating income (NOI) growth, excluding termination fees, to be between 6% and 7%. General and administrative (G&A) expenses are anticipated to range from $40.5 million to $41.5 million. Additionally, they plan to capitalize approximately $0.09 per share of interest for the full year 2025. The company highlighted their strategic achievements, such as the leasing of 501,000 square feet at Camelback 303 and a new 58,000 square foot lease at First Loop in Orlando.

First Industrial Realty Financial Statement Overview

Summary
First Industrial Realty has shown a strong financial performance with increasing revenues, solid profitability margins, and efficient cash flow management. However, there is a concern about the increasing debt levels, which might pose future risks.
Income Statement
85
Very Positive
First Industrial Realty has demonstrated a solid financial performance with increasing total revenue over the years, reaching $684.44 million in TTM (Trailing-Twelve-Months). The gross profit margin is strong at approximately 66.7%, and the net profit margin is healthy at 39.0% for the TTM. The EBIT and EBITDA margins are impressive at 53.8% and 66.3%, respectively. However, there is a slight decline in revenue growth from previous periods, which should be monitored.
Balance Sheet
77
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.90, indicating manageable leverage. The equity ratio is strong at 48.7%, signifying a robust equity base relative to total assets. Return on equity (ROE) is respectable at 10.1% for the TTM. Nonetheless, the increase in total debt over time is a point of concern that may pose future risks if not managed.
Cash Flow
80
Positive
Cash flow analysis reveals a positive trajectory with operating cash flow at $378.57 million, demonstrating strong cash generation capability. The free cash flow growth is notable, and the free cash flow to net income ratio is healthy at 1.25. The operating cash flow to net income ratio is strong at 1.42, indicating efficient cash flow management. Continued positive cash flow trends strengthen the company's ability to meet obligations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue669.64M614.03M539.93M476.29M448.03M
Gross Profit486.82M444.70M396.27M344.99M328.83M
EBITDA557.03M413.32M358.20M306.96M292.56M
Net Income287.34M274.82M266.67M271.00M195.99M
Balance Sheet
Total Assets5.26B5.18B4.95B4.18B3.79B
Cash, Cash Equivalents and Short-Term Investments44.51M43.84M133.24M58.59M162.09M
Total Debt2.23B2.25B2.09B1.63B1.62B
Total Liabilities2.52B2.54B2.42B1.93B1.84B
Stockholders Equity2.67B2.56B2.53B2.25B1.95B
Cash Flow
Free Cash Flow352.49M304.81M-111.47M33.85M79.96M
Operating Cash Flow352.49M304.81M410.90M267.03M241.08M
Investing Cash Flow-131.62M-378.31M-629.11M-416.82M-251.74M
Financing Cash Flow-213.03M-27.78M304.50M8.91M57.60M

First Industrial Realty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price51.16
Price Trends
50DMA
49.17
Positive
100DMA
48.59
Positive
200DMA
50.46
Positive
Market Momentum
MACD
0.49
Negative
RSI
59.85
Neutral
STOCH
85.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR, the sentiment is Positive. The current price of 51.16 is above the 20-day moving average (MA) of 49.12, above the 50-day MA of 49.17, and above the 200-day MA of 50.46, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR.

First Industrial Realty Risk Analysis

First Industrial Realty disclosed 39 risk factors in its most recent earnings report. First Industrial Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

First Industrial Realty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$5.91B23.036.85%3.43%22.17%40.80%
74
Outperform
$6.98B25.0710.33%3.19%9.66%-4.60%
74
Outperform
$9.47B29.833.74%4.24%13.66%11.34%
73
Outperform
$6.92B28.816.89%4.09%8.56%22.20%
69
Neutral
$2.63B31.804.15%6.02%6.64%210.89%
63
Neutral
$7.00B13.54-0.52%7.07%3.61%-22.78%
48
Neutral
$4.22B-1.67%6.08%-1.98%80.67%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR
First Industrial Realty
51.16
-2.96
-5.47%
STAG
Stag Industrial
36.29
-2.37
-6.13%
TRNO
Terreno Realty
57.19
-9.26
-13.94%
LXP
LXP Industrial Trust
8.88
-0.82
-8.45%
REXR
Rexford Industrial Realty
40.01
-8.84
-18.10%
COLD
Americold Realty
14.80
-13.22
-47.18%

First Industrial Realty Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
First Industrial Realty Completes $450M Senior Notes Offering
Positive
May 14, 2025

On May 14, 2025, First Industrial, L.P., a subsidiary of First Industrial Realty Trust, Inc., completed an underwritten public offering of $450 million in 5.250% Senior Notes due 2031. The Notes, fully guaranteed by the parent company, are senior unsecured obligations and are subject to various restrictive covenants. This financial move is expected to strengthen the company’s capital structure and support its strategic growth initiatives in the industrial real estate market.

The most recent analyst rating on (FR) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on First Industrial Realty stock, see the FR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025