First Industrial Realty Trust, Inc. and First Industrial, L.P. Announce Quarterly Results for the Period Ended March 31, 2025

Overview of First Industrial Realty Trust’s Financial Performance

First Industrial Realty Trust, Inc. is a self-administered and fully integrated real estate company that owns, manages, acquires, sells, develops, and redevelops industrial properties. As of March 31, 2025, the company owned 416 industrial properties located in 19 states, containing approximately 68.2 million square feet of gross leasable area.

The company’s operating results were strong during the first quarter of 2025. In-service occupancy at the end of the quarter was 95.3%, and the company achieved a 41.7% increase in cash rental rates on new and renewal leases that commenced during the quarter, reflecting continued strong demand.

During the quarter, the company completed several significant real estate transactions, including acquiring two industrial properties in Phoenix and 61.4 acres of land for development in Central/Eastern Pennsylvania, while also selling two industrial properties. The company’s key financing activities included increasing the borrowing capacity on its unsecured credit facility, extending the maturity on a term loan, and declaring a 20.3% increase in its quarterly cash dividend.

As of March 31, 2025, the company had $395.5 million of available borrowing capacity under its unsecured credit facility and held $37.2 million in cash, cash equivalents, and restricted cash, excluding its joint venture partner’s interest.

Revenue and Profit Trends

The company’s net income was $52.9 million and $70.5 million for the first quarters of 2025 and 2024, respectively. Revenues increased by 9.1% to $177.1 million in the first quarter of 2025, compared to $162.3 million in the same period of 2024.

The increase in revenues was primarily driven by:

• A $10.1 million (6.5%) increase in same-store property revenues due to higher rental rates and occupancy.
• A $1.4 million increase in revenues from acquired properties.
• A $7.9 million (589.8%) increase in revenues from (re)developments due to higher occupancy and tenant recoveries.

These increases were partially offset by a $3.4 million (97.6%) decrease in revenues from sold properties.

Property expenses increased by 2.8% to $48.3 million in the first quarter of 2025, compared to $47.0 million in the same period of 2024. This increase was primarily due to higher expenses from acquired properties and (re)developments, partially offset by lower expenses from sold properties.

General and administrative expenses increased by 34.9% to $16.0 million, primarily due to the accelerated recognition of equity compensation expense for certain employees in the first quarter of 2025.

The company recognized $6.8 million of gain on the sale of real estate in the first quarter of 2025, compared to $30.9 million in the same period of 2024.

Interest expense decreased by 6.8% to $19.5 million, primarily due to a lower weighted average interest rate and a higher amount of capitalized interest.

Equity in income of the company’s joint venture increased by 148.0% to $3.5 million, primarily due to gain on sale and incentive fees recognized from the joint venture’s sale of two properties, as well as an increase in the company’s pro-rata share of rental income, partially offset by higher expenses.

Strengths and Weaknesses

Strengths:

• Strong operating performance, with high in-service occupancy and significant rent growth on new and renewal leases.
• Successful acquisition, development, and disposition activities that have enhanced the portfolio.
• Solid financial position, with ample liquidity and manageable debt levels.
• Experienced management team and decentralized operating platform that supports efficient property management.

Weaknesses:

• Reliance on the industrial real estate sector, which could be impacted by economic downturns or changes in supply and demand dynamics.
• Potential exposure to rising interest rates, which could increase the company’s borrowing costs.
• Concentration of properties in 15 key logistics markets, which could make the portfolio more susceptible to regional economic conditions.
• Potential volatility in gains on property sales, which can significantly impact reported net income.

Outlook and Future Prospects

The company’s long-term business growth plans include a focus on internal growth through rent increases, occupancy improvements, and expense control, as well as external growth through strategic acquisitions and developments. The company’s market strategy is to concentrate on 15 key logistics markets in the United States, with a primary emphasis on coastal markets.

The company believes it is well-positioned to continue executing on its growth plans, given its strong financial position, experienced management team, and focus on high-quality industrial properties in desirable markets. However, the company faces risks and uncertainties that could impact its future performance, including changes in economic conditions, legislation and regulation, availability of financing, competition, and supply and demand dynamics in its target markets.

Overall, First Industrial Realty Trust’s financial performance in the first quarter of 2025 was strong, with solid revenue growth, profitability, and liquidity. The company’s focus on the industrial real estate sector, strategic acquisition and development activities, and prudent financial management suggest it is well-positioned to navigate the challenges and capitalize on the opportunities in the current market environment.