FIRST INDUSTRIAL REALTY TRUST REPORTS FIRST QUARTER 2025 RESULTS
First Industrial Realty Trust (NYSE: FR) reported strong Q1 2025 results with notable growth metrics. Cash Same Store NOI increased by 10.1%, while cash rental rates surged 41.7% in Q1. The company achieved a 30% cash rental rate increase on 2025 lease commitments.
Key highlights include the acquisition of two 100% leased buildings in Phoenix for $120 million with a 6.4% cash yield, and plans for two new developments totaling 402,000 square feet in Dallas and Philadelphia with an estimated investment of $54 million. The company renewed and upsized its credit facility to $850 million and renewed a $200 million term loan.
Q1 2025 financial results showed diluted EPS of $0.36 compared to $0.52 year-ago, while FFO reached $0.68 per share/unit versus $0.60 last year. The company increased its quarterly dividend by 20.3% to $0.445 per share.
First Industrial Realty Trust (NYSE: FR) ha riportato risultati solidi nel primo trimestre 2025 con metriche di crescita significative. Il NOI in contanti Same Store è aumentato del 10,1%, mentre i canoni di locazione in contanti sono cresciuti del 41,7% nel primo trimestre. L'azienda ha registrato un incremento del 30% nei canoni di locazione in contanti per i contratti di locazione del 2025.
I punti salienti includono l'acquisizione di due edifici completamente affittati a Phoenix per 120 milioni di dollari con un rendimento in contanti del 6,4%, e i piani per due nuovi sviluppi per un totale di 37.355 metri quadrati a Dallas e Philadelphia con un investimento stimato di 54 milioni di dollari. L'azienda ha rinnovato e ampliato la sua linea di credito a 850 milioni di dollari e ha rinnovato un prestito a termine da 200 milioni di dollari.
I risultati finanziari del primo trimestre 2025 hanno mostrato un utile diluito per azione di 0,36 dollari rispetto a 0,52 dollari dell'anno precedente, mentre il FFO ha raggiunto 0,68 dollari per azione/unità contro 0,60 dollari dell'anno scorso. L'azienda ha aumentato il dividendo trimestrale del 20,3% a 0,445 dollari per azione.
First Industrial Realty Trust (NYSE: FR) reportó sólidos resultados en el primer trimestre de 2025 con métricas de crecimiento destacadas. El NOI en efectivo Same Store aumentó un 10,1%, mientras que las tarifas de alquiler en efectivo se dispararon un 41,7% en el primer trimestre. La compañía logró un aumento del 30% en las tarifas de alquiler en efectivo para los compromisos de arrendamiento de 2025.
Los aspectos más destacados incluyen la adquisición de dos edificios 100% alquilados en Phoenix por 120 millones de dólares con un rendimiento en efectivo del 6,4%, y planes para dos nuevos desarrollos que suman 402,000 pies cuadrados en Dallas y Filadelfia con una inversión estimada de 54 millones de dólares. La compañía renovó y amplió su línea de crédito a 850 millones de dólares y renovó un préstamo a plazo de 200 millones de dólares.
Los resultados financieros del primer trimestre de 2025 mostraron un BPA diluido de 0,36 dólares en comparación con 0,52 dólares del año anterior, mientras que el FFO alcanzó 0,68 dólares por acción/unidad frente a 0,60 dólares del año pasado. La compañía aumentó su dividendo trimestral en un 20,3% a 0,445 dólares por acción.
First Industrial Realty Trust (NYSE: FR)는 2025년 1분기에 주목할 만한 성장 지표와 함께 강력한 실적을 보고했습니다. 현금 동일 점포 NOI는 10.1% 증가했으며, 현금 임대료는 1분기에 41.7% 급등했습니다. 회사는 2025년 임대 계약에 대해 30%의 현금 임대료 인상을 달성했습니다.
주요 내용으로는 현금 수익률 6.4%로 피닉스에 위치한 100% 임대된 두 건물을 1억 2천만 달러에 인수한 것과, 댈러스 및 필라델피아에서 총 40만 2천 평방피트 규모의 두 신규 개발 프로젝트에 약 5,400만 달러를 투자할 계획이 포함됩니다. 회사는 신용 한도를 8억 5천만 달러로 갱신 및 확대하고, 2억 달러의 기한부 대출도 갱신했습니다.
2025년 1분기 재무 결과는 희석 주당순이익이 0.36달러로 전년 동기 0.52달러에 비해 감소했으나, FFO는 주당/단위당 0.68달러로 지난해 0.60달러를 상회했습니다. 회사는 분기 배당금을 20.3% 인상하여 주당 0.445달러로 조정했습니다.
First Industrial Realty Trust (NYSE : FR) a annoncé de solides résultats pour le premier trimestre 2025 avec des indicateurs de croissance notables. Le NOI en espèces Same Store a augmenté de 10,1%, tandis que les taux de location en espèces ont bondi de 41,7% au premier trimestre. La société a réalisé une hausse de 30% des taux de location en espèces sur les engagements de baux pour 2025.
Les points clés incluent l'acquisition de deux immeubles entièrement loués à Phoenix pour 120 millions de dollars avec un rendement en espèces de 6,4 %, ainsi que des projets de deux nouveaux développements totalisant 37 355 mètres carrés à Dallas et Philadelphie, avec un investissement estimé à 54 millions de dollars. La société a renouvelé et augmenté sa ligne de crédit à 850 millions de dollars et a renouvelé un prêt à terme de 200 millions de dollars.
Les résultats financiers du premier trimestre 2025 ont montré un BPA dilué de 0,36 $ contre 0,52 $ l'année précédente, tandis que le FFO a atteint 0,68 $ par action/unité contre 0,60 $ l'an dernier. La société a augmenté son dividende trimestriel de 20,3% à 0,445 $ par action.
First Industrial Realty Trust (NYSE: FR) meldete starke Ergebnisse für das erste Quartal 2025 mit bemerkenswerten Wachstumskennzahlen. Das Cash Same Store NOI stieg um 10,1%, während die Bar-Mietpreise im ersten Quartal um 41,7% zulegten. Das Unternehmen erzielte eine Steigerung der Bar-Mietpreise um 30% bei den Mietvertragsabschlüssen für 2025.
Zu den Highlights gehören der Erwerb von zwei zu 100 % vermieteten Gebäuden in Phoenix für 120 Millionen US-Dollar mit einer Bar-Rendite von 6,4 % sowie Pläne für zwei neue Entwicklungen mit insgesamt 37.355 Quadratmetern in Dallas und Philadelphia bei einer geschätzten Investition von 54 Millionen US-Dollar. Das Unternehmen hat seine Kreditlinie auf 850 Millionen US-Dollar erneuert und aufgestockt sowie ein 200 Millionen US-Dollar Term-Darlehen verlängert.
Die Finanzergebnisse für das erste Quartal 2025 zeigten einen verwässerten Gewinn je Aktie von 0,36 US-Dollar im Vergleich zu 0,52 US-Dollar im Vorjahr, während der FFO mit 0,68 US-Dollar je Aktie/Einheit gegenüber 0,60 US-Dollar im Vorjahr zunahm. Das Unternehmen erhöhte seine vierteljährliche Dividende um 20,3% auf 0,445 US-Dollar je Aktie.
- Strong 10.1% increase in Cash Same Store NOI
- 41.7% increase in cash rental rates for Q1
- 20.3% dividend increase to $0.445 per share
- Successful credit facility upsize to $850 million
- New developments with projected 8% cash yield
- Occupancy declined to 95.3% from 96.2% in Q4 2024
- Q1 EPS decreased to $0.36 from $0.52 year-over-year
Insights
First Industrial delivers exceptional Q1 results with 10.1% SS NOI growth and remarkable 41.7% cash rental increases, demonstrating strong pricing power in industrial markets.
First Industrial Realty Trust's Q1 2025 results demonstrate exceptional operational performance in today's industrial real estate environment. The standout metric is the 41.7% cash rental rate growth on new and renewal leases (77% on a straight-line basis), which significantly exceeds typical industrial REIT performance and indicates extraordinary pricing power in supply-constrained logistics markets.
The 10.1% cash same-store NOI growth reflects both successful lease-up efforts and the company's ability to capture substantial rent increases as leases roll. This growth is particularly impressive given the high-quality, stabilized nature of FR's portfolio. Management has already secured leases for 73% of 2025 expirations at approximately 30% higher cash rents (36% excluding a large fixed-rate renewal), providing excellent visibility into continued NOI growth throughout 2025.
The 20.3% dividend increase to $0.445 per share signals management's confidence in sustainable cash flow growth. The company's FFO grew to $0.68 per share, up 13.3% from $0.60 in Q1 2024, supporting this substantial dividend boost.
From a capital structure perspective, FR has strengthened its financial position by renewing and upsizing its revolving credit facility to $850 million (a $100 million increase) and extending its $200 million term loan. These transactions enhance liquidity and extend debt maturities with favorable terms.
Looking forward, management's 2025 FFO guidance of $2.87-$2.97 and same-store NOI growth guidance of 6-7% suggest continued strong performance, albeit at a more moderate pace than Q1's exceptional results. The slight occupancy decline to 95.3% bears watching, but remains within the company's target range of 95-96% and aligns with year-ago levels.
FR's acquisition and development strategy yields strong returns with 6.4% acquisition yields and 8% development yields, demonstrating disciplined capital deployment in prime logistics markets.
First Industrial's Q1 results highlight a strategically sound capital allocation approach in today's competitive industrial real estate landscape. The company's $120 million acquisition of two fully leased buildings in Phoenix at a 6.4% cash yield demonstrates disciplined investing in a market where quality assets rarely trade at cap rates exceeding 5.5%. This transaction, completed through their Camelback 303 joint venture, showcases FR's ability to create value through both development and timely monetization.
The company's development pipeline continues to demonstrate strong value creation potential. FR plans to commence two new developments totaling 402,000 square feet in Dallas and Philadelphia at an estimated investment of $54 million. The projected 8% cash yield on these developments represents an exceptional spread over stabilized acquisition cap rates, highlighting FR's development expertise as a significant competitive advantage.
The acquisition of a 61-acre land site in Philadelphia for $16 million positions the company for future growth in a key East Coast distribution hub. This two-phase project will ultimately yield 837,000 square feet of logistics space in a supply-constrained coastal market where new development opportunities are increasingly scarce.
FR's portfolio is strategically positioned in 15 target MSAs with emphasis on supply-constrained, coastally oriented markets. This geographical focus explains the remarkable rental rate growth achieved this quarter, as coastal logistics markets continue to experience significant supply-demand imbalances despite concerns about new supply in some inland markets.
The selective dispositions in Detroit ($14 million total from two properties) demonstrate FR's commitment to recycling capital from secondary markets into higher-growth core markets, enhancing the overall portfolio quality and long-term growth profile.
- Cash Same Store NOI Growth of
10.1% - Cash Rental Rates Up
42% in 1Q25 30% Cash Rental Rate Increase on Leases Signed To-Date Commencing in 2025;36% Increase Excluding 1.3 Million Square-Foot Fixed-Rate Renewal- Acquired Two
100% Leased Buildings from Our Camelback 303 JV inPhoenix ; 796,000 Square Feet,$120 Million 6.4% - Two Planned Development Starts for 2Q25 Totaling 402,000 Square Feet in
Dallas andPhiladelphia ,$54 Million 8% - Renewed Unsecured Revolving Credit Facility, Upsizing It
$100 Million $850 Million $200 Million - Increased First Quarter 2025 Dividend to
$0.44 520.3% Increase
"Our team delivered a solid quarter of operating results and executed on some key investment and capital market transactions," said Peter E. Baccile, First Industrial's president and chief executive officer.
Portfolio Performance
- In service occupancy was
95.3% at the end of the first quarter of 2025, compared to96.2% at the end of the fourth quarter of 2024, and95.5% at the end of the first quarter of 2024. - In the first quarter, cash rental rates on new and renewal leasing increased
41.7% and increased77.0% on a straight-line basis. - The Company has achieved a cash rental rate increase of approximately
30% on leases signed to-date commencing in 2025 reflecting73% of 2025 expirations by square footage. Excluding the 1.3 million square-foot fixed-rate renewal previously disclosed, the cash rental rate increase is36% . - In the first quarter, cash basis same store net operating income before termination fees ("SS NOI") increased
10.1% primarily reflecting increases in rental rates on new and renewal leasing, contractual rent escalations and slightly higher average occupancy.
Development Leasing Highlights
During the first quarter, the Company:
- Leased the remaining
50% of its 200,000 square-foot First 76 Logistics Center inDenver ; commenced in the first quarter.
Investment and Disposition Highlights
During the first quarter, the Company:
- Acquired two
100% leased buildings totaling 796,000 square feet from its Camelback 303 joint venture inPhoenix for$120 million - Acquired a 61-acre land site in
Philadelphia for$16 million - Sold two buildings in
Detroit - 100,000 square feet; total of$12 million
In the second quarter to-date, the Company:
- Plans to start development of two facilities totaling 402,000 square feet, estimated total investment of
$54 million - First Park 121 Building F in
Dallas - 176,000 square feet;$23 million - First Park New Castle Building B in
Philadelphia - 226,000 square feet;$31 million
- First Park 121 Building F in
- Sold one building in
Detroit - 18,000 square feet;$2 million
Capital
In the first quarter, the Company:
- Closed an
$850 million $100 million - Closed an unsecured term loan that refinances its
$200 million
Common Stock Dividend
As previously disclosed, the board of directors declared a common dividend of
Outlook for 2025
Low End of | High End of | |||
Guidance for 2025 | Guidance for 2025 | |||
(Per share/unit) | (Per share/unit) | |||
Net Income Available to Common Stockholders and Unitholders | $ 1.52 | $ 1.62 | ||
Add: Depreciation and Other Amortization of Real Estate (1) | 1.37 | 1.37 | ||
Less: Gain on Sale of Real Estate Through April 16, 2025 (1) | (0.02) | (0.02) | ||
NAREIT Funds From Operations | $ 2.87 | $ 2.97 |
(1) Amounts include our share from a joint venture and are net of any associated income tax provision or benefit. |
The following assumptions were used for guidance:
- Average quarter-end in service occupancy of
95.0% to96.0% . - SS NOI growth on a cash basis before termination fees of
6.0% to7.0% . This range excludes$4.5 million - Includes the incremental costs expected in 2025 related to the Company's completed and under construction developments as of March 31, 2025 and the aforementioned planned second quarter starts of First Park 121 Building F and First Park New Castle Building B. In total, the Company expects to capitalize
$0.09 - General and administrative expense ("G&A") of
$40.5 million $41.5 million - Guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, or equity issuances post the date of this press release.
Conference Call
First Industrial will host its quarterly conference call on Thursday, April 17, 2025 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (877) 870-4263, passcode "First Industrial". The conference call will also be webcast live on the Investors page of the Company's website at www.firstindustrial.com. The replay will also be available on the website.
The Company's first quarter 2025 supplemental information can be viewed at www.firstindustrial.com under the "Investors" tab.
FFO Definition
First Industrial calculates FFO to be equal to net income available to common stockholders, unitholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain (or plus loss) on sale of real estate, adjusted for any associated income tax provisions or benefits. Similar adjustments are made for our share of net income from an unconsolidated joint venture. This calculation methodology is in accordance with the NAREIT definition of FFO.
About First Industrial Realty Trust, Inc.
First Industrial Realty Trust, Inc. (NYSE: FR) is a leading
Forward-Looking Statements
This press release and the presentation to which it refers may contain 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; 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.
A schedule of selected financial information is attached.
FIRST INDUSTRIAL REALTY TRUST, INC. | ||||
Selected Financial Data | ||||
(Unaudited) | ||||
(In thousands except per share/Unit data) | ||||
Three Months Ended | ||||
March 31, | March 31, | |||
2025 | 2024 | |||
Statements of Operations and Other Data: | ||||
Total Revenues | $ 177,074 | $ 162,272 | ||
Property Expenses | (48,311) | (47,014) | ||
General and Administrative | (15,897) | (11,781) | ||
Joint Venture Development Services Expense | (217) | (426) | ||
Depreciation of Corporate FF&E | (171) | (187) | ||
Depreciation and Other Amortization of Real Estate | (43,583) | (41,632) | ||
Total Expenses | (108,179) | (101,040) | ||
Gain on Sale of Real Estate | 6,844 | 30,852 | ||
Interest Expense | (19,469) | (20,897) | ||
Amortization of Debt Issuance Costs | (963) | (912) | ||
Income from Operations Before Equity in Income of Joint Venture and Income Tax Provision | $ 55,307 | $ 70,275 | ||
Equity in Income of Joint Venture | 3,477 | 1,402 | ||
Income Tax Provision | (5,900) | (1,179) | ||
Net Income | $ 52,884 | $ 70,498 | ||
Net Income Attributable to the Noncontrolling Interests | (4,781) | (2,046) | ||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 48,103 | $ 68,452 | ||
RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO FFO (c) AND AFFO (c) | ||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 48,103 | $ 68,452 | ||
Depreciation and Other Amortization of Real Estate | 43,583 | 41,632 | ||
Depreciation and Other Amortization of Real Estate in the Joint Venture (a) | 1,056 | — | ||
Net Income Attributable to the Noncontrolling Interests | 4,781 | 2,046 | ||
Gain on Sale of Real Estate | (6,844) | (30,852) | ||
Gain on Sale of Real Estate from Joint Venture (a) | (3,305) | (132) | ||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (a) | (147) | (152) | ||
Income Tax Provision - Excluded from FFO (b) | 5,736 | 928 | ||
Funds From Operations ("FFO") (NAREIT) (c) | $ 92,963 | $ 81,922 | ||
Amortization of Equity Based Compensation | 13,930 | 9,108 | ||
Amortization of Debt Discounts and Hedge Costs | 104 | 104 | ||
Amortization of Debt Issuance Costs | 963 | 912 | ||
Depreciation of Corporate FF&E | 171 | 187 | ||
Non-incremental Building Improvements | (1,277) | (975) | ||
Non-incremental Leasing Costs | (5,442) | (5,218) | ||
Capitalized Interest | (2,883) | (2,637) | ||
Capitalized Overhead | (3,164) | (3,197) | ||
Straight-Line Rent, Amortization of Above (Below) Market Leases and Lease Inducements | (6,283) | (4,659) | ||
Adjusted Funds From Operations ("AFFO") (c) | $ 89,082 | $ 75,547 | ||
RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO ADJUSTED EBITDA (c) AND NOI (c) | ||||
Three Months Ended | ||||
March 31, | March 31, | |||
2025 | 2024 | |||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 48,103 | $ 68,452 | ||
Interest Expense | 19,469 | 20,897 | ||
Depreciation and Other Amortization of Real Estate | 43,583 | 41,632 | ||
Depreciation and Other Amortization of Real Estate in the Joint Venture (a) | 1,056 | — | ||
Income Tax Provision - Allocable to FFO (b) | 164 | 251 | ||
Net Income Attributable to the Noncontrolling Interests | 4,781 | 2,046 | ||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (a) | (147) | (152) | ||
Amortization of Debt Issuance Costs | 963 | 912 | ||
Depreciation of Corporate FF&E | 171 | 187 | ||
Gain on Sale of Real Estate | (6,844) | (30,852) | ||
Gain on Sale of Real Estate from Joint Venture (a) | (3,305) | (132) | ||
Income Tax Provision - Excluded from FFO (b) | 5,736 | 928 | ||
Adjusted EBITDA (c) | $ 113,730 | $ 104,169 | ||
General and Administrative | 15,897 | 11,781 | ||
Equity in FFO from Joint Venture, Net of Noncontrolling Interest (a) | (1,081) | (1,118) | ||
Net Operating Income ("NOI") (c) | $ 128,546 | $ 114,832 | ||
Non-Same Store NOI | (3,764) | 410 | ||
Same Store NOI Before Same Store Adjustments (c) | $ 124,782 | $ 115,242 | ||
Straight-line Rent | (2,500) | (3,890) | ||
Above (Below) Market Lease Amortization | (550) | (743) | ||
Lease Termination Fees | (24) | (68) | ||
Same Store NOI (Cash Basis without Termination Fees) (c) | $ 121,708 | $ 110,541 | ||
Weighted Avg. Number of Shares/Units Outstanding - Basic | 135,440 | 135,068 | ||
Weighted Avg. Number of Shares Outstanding - Basic | 132,415 | 132,360 | ||
Weighted Avg. Number of Shares/Units Outstanding - Diluted | 136,115 | 135,387 | ||
Weighted Avg. Number of Shares Outstanding - Diluted | 132,493 | 132,406 | ||
Per Share/Unit Data: | ||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 48,103 | $ 68,452 | ||
Less: Allocation to Participating Securities | (36) | (45) | ||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders | $ 48,067 | $ 68,407 | ||
Basic and Diluted Per Share | $ 0.36 | $ 0.52 | ||
FFO (NAREIT) (c) | $ 92,963 | $ 81,922 | ||
Less: Allocation to Participating Securities | (129) | (152) | ||
FFO (NAREIT) Allocable to Common Stockholders and Unitholders | $ 92,834 | $ 81,770 | ||
Basic Per Share/Unit | $ 0.69 | $ 0.61 | ||
Diluted Per Share/Unit | $ 0.68 | $ 0.60 | ||
Common Dividends/Distributions Per Share/Unit | $ 0.445 | $ 0.370 | ||
Balance Sheet Data (end of period): | March 31, 2025 | December 31, 2024 | ||
Gross Real Estate Investment | $ 6,028,897 | $ 5,846,392 | ||
Total Assets | 5,448,054 | 5,261,426 | ||
Debt | 2,380,554 | 2,209,303 | ||
Total Liabilities | 2,704,832 | 2,515,398 | ||
Total Equity | 2,743,222 | 2,746,028 |
Three Months Ended | |||||
March 31, | March 31, | ||||
2025 | 2024 | ||||
(a) | Equity in Income of Joint Venture | ||||
Equity in Income of Joint Venture per GAAP Statements of Operations | $ 3,477 | $ 1,402 | |||
Gain on Sale of Real Estate from Joint Venture | (3,305) | (132) | |||
Depreciation and Other Amortization of Real Estate in the Joint Venture | 1,056 | — | |||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest | (147) | (152) | |||
Equity in FFO from Joint Venture, Net of Noncontrolling Interest | $ 1,081 | $ 1,118 | |||
(b) | Income Tax Provision | ||||
Income Tax Provision per GAAP Statements of Operations | $ (5,900) | $ (1,179) | |||
Income Tax Provision - Excluded from FFO | 5,736 | 928 | |||
Income Tax Provision - Allocable to FFO | $ (164) | $ (251) | |||
(c) Investors and analysts in the real estate industry commonly use funds from operations ("FFO"), net operating income ("NOI"), adjusted EBITDA and adjusted funds from operations ("AFFO") as supplemental performance measures. While we consider net income, as defined by GAAP, the most appropriate measure of our financial performance, we acknowledge the relevance and widespread use of these supplemental performance measures for evaluating performance and financial position in the real estate industry. FFO principally adjusts for the effects of GAAP depreciation and amortization of real estate assets to account for the inherent assumption that real estate asset values rise or fall with market conditions. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA further evaluates the ability to incur and service debt, fund dividends and meet other cash obligations. AFFO provides a tool to further evaluate the ability to fund dividends, adjusting for additional factors such as straight-line rent and certain capital expenditures.
These supplemental performance measures are commonly used in various financial analyses including ratio calculations, pricing multiples/yields and returns and valuation metrics used to measure financial position, performance and value. We calculate our supplemental measures as follows:
FFO is calculated as net income available to common stockholders, unitholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain (or plus loss) on sale of real estate, adjusted for any associated income tax provisions or benefits. Similar adjustments are made for our share of net income from an unconsolidated joint venture. This calculation methodology is in accordance with the NAREIT definition of FFO.
NOI is calculated as total property revenues minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses.
Adjusted EBITDA is calculated as NOI plus equity in FFO from our investment in joint venture (net of noncontrolling interest), and minus general and administrative expenses.
AFFO is calculated as adjusted EBITDA minus interest expense, capitalized interest and overhead, plus amortization of debt discounts and hedge costs, minus straight-line rent, amortization of above (below) market leases, lease inducements and provision for income taxes allocable to FFO or plus income tax benefit allocable to FFO, plus amortization of equity based compensation and minus non-incremental capital expenditures. Non-incremental capital expenditures refer to building improvements and leasing costs required to maintain current revenues plus tenant improvements amortized back to the tenant over the lease term. Excluded are first generation leasing costs, capital expenditures underwritten at acquisition and development/redevelopment costs.
FFO, NOI, adjusted EBITDA and AFFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available for debt repayment or dividend payments. They should not be considered substitutes of GAAP measures such as net income, cash flows or liquidity measures. Furthermore, the methodologies used to calculate these measures may vary across real estate companies, limiting comparability.
We consider cash basis same store NOI ("SS NOI") to be a useful supplemental measure of our operating performance. We believe SS NOI enhances the comparability of a company's real estate portfolio to that of other real estate companies. Same store properties are properties that were owned and placed in service prior to January 1, 2024 and held as an in service property through the end of the current reporting period including certain income-producing land parcels, and developments and redevelopments that were placed in service prior to January 1, 2024 (the "Same Store Pool"). Properties acquired with occupancy of at least
We define SS NOI as NOI, less NOI from properties not in the Same Store Pool, and further adjusted to exclude the impact of straight-line rent, the amortization of above (below) market rent and the impact of lease termination fees. These items are excluded because we believe excluding them provides a more meaningful reflection of cash-basis rental growth and allows for a more consistent year-over-year analysis of property-level performance. SS NOI does not reflect general and administrative expense, interest expense, depreciation and amortization, income tax benefit and expense, gains and losses on the sale of real estate, equity in income or loss from joint venture, joint venture fees, joint venture development services expense, capital expenditures and leasing costs. SS NOI should not be considered an alternative to net income or cash flows from operations as defined by GAAP, nor should it be used as a substitute in evaluating our liquidity or overall operating performance. Additionally, our method for calculating SS NOI may differ from those used by other real estate companies, limiting comparability.
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SOURCE First Industrial Realty Trust, Inc.
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