First Industrial Realty Trust Announces Pricing of $450 Million of Senior Notes Due 2031

Rhea-AI Summary

First Industrial Realty Trust (NYSE: FR) has priced a public offering of $450 million in senior unsecured notes with a 5.25% interest rate, due in January 2031. The notes were priced at 99.265% of principal value, with settlement expected on May 14, 2025. The offering will be guaranteed by the company and proceeds will fund property acquisitions, development, debt refinancing, and general corporate purposes.

First Industrial Realty Trust is a leading U.S.-focused owner, operator, developer, and acquirer of logistics properties, with approximately 70.2 million square feet of industrial space owned and under development across 15 target MSAs as of March 31, 2025, primarily in supply-constrained, coastal markets.

Positive

• Successful pricing of $450 million senior notes offering demonstrates market confidence and access to capital
• Funds will support strategic growth through property acquisitions and development
• Strong portfolio of 70.2 million square feet of industrial space in prime logistics markets
• Focus on supply-constrained coastal markets positions company for stable demand

Negative

• Additional debt increases company's interest expense obligations
• Notes priced at a discount (99.265%) to principal value
• 5.25% interest rate reflects current higher rate environment

Insights

Corporate Finance Expert

First Industrial's $450M bond issuance at 5.25% enhances liquidity while extending debt maturity profile, providing flexibility for growth opportunities.

First Industrial Realty Trust has successfully priced a $450 million senior unsecured notes offering with a 5.25% coupon maturing in 2031. The notes were priced at 99.265% of face value, indicating a slight discount to par that effectively raises the yield marginally above the stated coupon rate. This is a significant capital raise that strengthens the REIT's financial position in several important ways.

The pricing of these notes represents a strategic move to lock in medium-term financing in the current interest rate environment. With the notes not maturing until January 2031, the company has effectively extended its debt maturity profile, which reduces refinancing risk over the next few years. The 5.25% coupon rate appears competitive for a logistics REIT in today's market, suggesting good capital markets access and investor confidence in First Industrial's credit quality.

What's particularly noteworthy is the flexibility in how the proceeds can be deployed. The company has indicated multiple potential uses including property acquisitions, development funding, and refinancing existing debt obligations. This optionality is valuable as it allows management to opportunistically allocate capital across their development pipeline or acquisition targets in their 15 target MSAs, with special focus on supply-constrained coastal markets where industrial properties command premium valuations.

With approximately 70.2 million square feet of industrial space owned or under development, this capital raise represents a meaningful expansion of First Industrial's financial capacity. The involvement of major financial institutions as joint book-running managers (including J.P. Morgan, PNC, RBC, and Wells Fargo) further validates the offering's credibility in the capital markets.

This debt issuance demonstrates management's confidence in executing their growth strategy despite the potential headwinds mentioned in their forward-looking statements. The financing enhances First Industrial's ability to capitalize on opportunities in the logistics real estate sector, which continues to benefit from strong fundamentals tied to e-commerce growth and supply chain reconfiguration.

CHICAGO, May 12, 2025 /PRNewswire/ -- First Industrial Realty Trust, Inc. (the "Company") (NYSE: FR), a leading fully integrated owner, operator and developer of logistics real estate, today announced that its operating partnership, First Industrial, L.P., has priced a public offering of $450 million aggregate principal amount of 5.25% senior unsecured notes due 2031 (the "Notes").

The Notes were priced at 99.265% of the principal amount and will mature on January 15, 2031. The offering is expected to settle on May 14, 2025, subject to the satisfaction of customary closing conditions. The Notes will be fully and unconditionally guaranteed by the Company.

Proceeds from the sale of the Notes are expected to be used for general corporate purposes, including funding the acquisition and development of additional properties, the repayment or refinancing of outstanding indebtedness, working capital and other general purposes.

J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC acted as joint book-running managers; BofA Securities, Inc., Citigroup Global Markets Inc., Fifth Third Securities, Inc., Regions Securities LLC and U.S. Bancorp Investments, Inc. acted as joint book-running managers; and Samuel A. Ramirez & Company, Inc. acted as co-manager of this offering.

This offering is being made pursuant to an effective shelf registration statement and prospectus and related prospectus supplement filed by the Company and the operating partnership with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the prospectus supplement and related prospectus for this offering can be obtained, when available, from J.P. Morgan Securities LLC collect at (212) 834-4533, PNC Capital Markets LLC at (855) 881-0697, RBC Capital Markets, LLC at (866) 375-6829 and Wells Fargo Securities, LLC at 1-800-645-3751 or by emailing wfscustomerservice@wellsfargo.com.

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 70.2 million square feet of industrial space as of March 31, 2025.

Forward-Looking Statements

This press release contains 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 ("Exchange Act"). 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 that 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; 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; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events; risks associated with security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology networks and related systems; 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; our use of proceeds from the offering of these notes; satisfaction of the closing conditions for the sale of the notes 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, 2024, 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 Securities and Exchange Commission (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.

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SOURCE First Industrial Realty Trust, Inc.

FAQ

What is the size and interest rate of First Industrial Realty Trust's (FR) new senior notes offering?

First Industrial Realty Trust's new senior notes offering is $450 million with a 5.25% interest rate, maturing in January 2031.

How will First Industrial Realty Trust (FR) use the proceeds from the senior notes offering?

The proceeds will be used for general corporate purposes, including funding property acquisitions, development, repayment or refinancing of debt, working capital, and other general purposes.

What is the current portfolio size of First Industrial Realty Trust (FR)?

As of March 31, 2025, First Industrial owns and has under development approximately 70.2 million square feet of industrial space across 15 target MSAs.

When will First Industrial Realty Trust's (FR) new senior notes mature?

The senior notes will mature on January 15, 2031.

What is the pricing of First Industrial Realty Trust's (FR) new senior notes offering?

The notes were priced at 99.265% of the principal amount.