First Industrial Realty Trust Reports First Quarter 2026 Results
Rhea-AI Summary
First Industrial Realty Trust (NYSE: FR) reported Q1 2026 results: EPS $1.08 vs $0.36 a year ago and FFO $0.68 per share/unit (FFO ex-advisory $0.72). Cash SS NOI increased 8.7% and cash rental rates rose 32% in the quarter. The board raised the quarterly dividend to $0.50 (up 12.4%). The company started two developments (305,000 SF, estimated $70M), signed major leases (including a 556,000 SF Inland Empire renewal), closed $425M and $375M unsecured term loans, and established a $250M share repurchase program.
Positive
- EPS increased to $1.08 in Q1 2026 from $0.36 a year ago
- Total revenues rose to $194.8M in Q1 2026 from $177.1M in Q1 2025
- Dividend raised to $0.50 per share, a 12.4% increase
- Cash rental rates on commenced leases up 32% in Q1 2026
- Started two developments totaling 305,000 SF with ~$70M estimated investment
- Established a $250M common stock repurchase program
Negative
- General and administrative expense increased to $23.0M from $15.9M year‑over‑year
- Interest expense rose to $23.8M in Q1 2026 from $19.5M in Q1 2025
- In‑service occupancy declined to 94.3% from 95.3% year‑over‑year
Key Figures
Market Reality Check
Peers on Argus
FR slipped 0.4% with strong Q1 metrics, while key industrial REIT peers like STAG, EGP, TRNO, CUBE and NSA fell between about 0.95% and 2.29%, pointing to a broader REIT/industrial headwind rather than FR-specific weakness.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Q4 & FY 2025 earnings | Positive | +2.2% | Reported 2025 NAREIT FFO growth and raised the Q1 2026 dividend. |
| Oct 15 | Q3 2025 earnings | Positive | +1.4% | Q3 FFO growth, higher guidance midpoint, strong cash SS NOI and rental spreads. |
| Jul 16 | Q2 2025 earnings | Positive | +0.1% | EPS and FFO gains with robust SS NOI and rental rate increases. |
| Apr 16 | Q1 2025 earnings | Positive | +1.5% | Double-digit SS NOI growth, strong rent spreads and higher dividend. |
| Feb 05 | Q4 & FY 2024 earnings | Positive | +2.5% | FFO growth, large rental rate increases and meaningful development leasing. |
Earnings releases over the past five quarters have consistently led to modestly positive next-day price reactions.
Over the last five earnings cycles from Feb 2024 through Feb 2026, FR has repeatedly delivered rising FFO, strong cash same-store NOI growth, and double-digit cash rental rate increases. Dividend hikes, disciplined development starts, and capital markets activity such as unsecured notes and term loan refinancings have featured prominently. These Q1 2026 results, with solid NOI and rental spreads plus updated 2026 FFO guidance, extend the established pattern of steady operational and financial execution.
Historical Comparison
In the past five earnings releases, FR’s next-day moves averaged about ±1.55%, with consistently favorable reactions to strong FFO and rental growth updates.
Earnings updates show a steady progression of higher FFO per share, strong cash SS NOI growth, robust rental spreads, and recurring dividend increases over 2024–2025.
Market Pulse Summary
This announcement highlights strong Q1 2026 performance, including diluted EPS of $1.08, cash SS NOI growth of 8.7%, and a 32% cash rental rate increase on new and renewal leases. Management raised the dividend to $0.50 and outlined 2026 NAREIT FFO guidance of $3.05–$3.15 per share. Investors may watch execution on development starts, the planned $131 million Phoenix land sale, and how governance and proxy-related expenses evolve through 2026.
Key Terms
funds from operations financial
ffo financial
net operating income financial
noi financial
nareit financial
adjusted funds from operations financial
affo financial
sofr financial
AI-generated analysis. Not financial advice.
- Cash Same Store NOI Growth of
8.7% - Cash Rental Rates Up
32% in 1Q26 41% Cash Rental Rate Increase on Leases Signed To Date Commencing in 2026; Includes 556,000 SF Renewal in the Inland Empire- Signed Agreement with 3PL Credit Watchlist Tenant; Collected Approximately
60% of Balance Owed at Year-End 2025 with Scheduled Payments to Collect Remainder by End of 2026 - Signed 383,000 SF of New Leases for Several Development Projects in the First Quarter and Second Quarter To Date
- Started Two Developments in the First Quarter Totaling 305,000 SF in
Miami andDallas , Estimated Investment of$70 Million - Closed
$425 Million $375 Million - Increased First Quarter 2026 Dividend to
$0.50 12.4% Increase
CHICAGO , April 22, 2026 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of logistics real estate, today announced results for the first quarter of 2026. First Industrial's diluted net income available to common stockholders per share (EPS) was
"2026 is off to a good start as our team delivered strong cash same store NOI and rental rate growth and signed development leases in several markets reflecting broad-based demand," said Peter E. Baccile, First Industrial's president and chief executive officer. "We also successfully renewed the lease for our 556,000 square-foot Inland Empire facility, our largest remaining 2026 expiration. We are encouraged by the activity levels across our availabilities to drive value for shareholders."
Portfolio Performance
- In service occupancy was
94.3% at the end of the first quarter of 2026, compared to94.4% at the end of the fourth quarter of 2025, and95.3% at the end of the first quarter of 2025. - In the first quarter, cash rental rates on commenced new and renewal leasing increased
32% . - The Company has achieved a cash rental rate increase of approximately
41% on leases signed to date commencing in 2026 reflecting61% of 2026 expirations by square footage. The population includes the lease renewal for a 556,000 square-foot facility in the Inland Empire that was scheduled to expire in 3Q26. - In the first quarter, cash basis same store net operating income before termination fees ("SS NOI") increased
8.7% , primarily reflecting increases in rental rates on new and renewal leasing, lower free rent and contractual rent escalations, partially offset by lower average occupancy. - Signed agreement with 3PL tenant on credit watchlist, as discussed on prior conference calls; collected approximately
60% of balance owed at year-end 2025 in a lump sum payment, with regularly scheduled payments to pay off remaining past due rent by the end of 2026.
Development Leasing Highlights
During the first quarter, the Company:
- Leased the remaining 30,000 square feet of its 107,000 square-foot First Loop Logistics Park Building 4 in
Orlando ; commenced in the first quarter. - Leased 60,000 square feet of the remaining 122,000 square feet of its 451,000 square-foot First Park 94 Building D in
Chicago ; commenced in the first quarter. - Leased 54,000 square feet of its recently completed 151,000 square-foot First Park 33 Building I in the Lehigh Valley; commenced in the second quarter.
- Leased 29,000 square feet of its 60,000 square-foot First Pompano Logistics Center in
South Florida ; commenced in the first quarter.
During the second quarter to date, the Company:
- Leased
100% of its 155,000 square-foot First Wilson Logistics Center II in the Inland Empire; commenced in the second quarter. - Leased 56,000 square feet of its 198,000 square-foot First Park Miami Building 3 in
South Florida ; expected to commence in the second quarter.
Investment and Disposition Highlights
During the first quarter, the Company:
- Commenced development of two projects totaling 305,000 square feet with an estimated total investment of
$70 million - First Park Miami Building 4 in
South Florida - 220,000 square feet;$57 million - First Arlington Commerce Center III in
Dallas - 84,000 square feet;$13 million
- First Park Miami Building 4 in
- Tenant exercised its purchase option on a 100-acre income-producing land site in
Phoenix for a sales price of$131 million
Capital Markets Highlights
In the first quarter, the Company:
- Closed an unsecured term loan that refinanced its
$425 million - Closed an unsecured term loan that refinanced its
$300 million $375 million - In conjunction with these refinancings, the Company also amended its
$200 million - Established a new share repurchase program under which the Company may repurchase up to
$250 million
Common Stock Dividend
The board of directors declared a common dividend of
Outlook for 2026
"The fundamental environment continues to be stable, with decision-making accelerating for space sizes under 200,000 square feet in our portfolio," said Mr. Baccile. "We look to build on our leasing successes thus far and attract and serve new customers with our high quality, well-located logistics facilities."
Low End of | High End of | |||
Guidance for 2026 | Guidance for 2026 | |||
(Per share/unit) | (Per share/unit) | |||
Net Income Available to Common Stockholders and Unitholders | $ 2.32 | $ 2.42 | ||
Add: Depreciation and Other Amortization of Real Estate | 1.50 | 1.50 | ||
Less: Gain on Sale of Real Estate, Net of Allocable Income Tax Provision, | (0.77) | (0.77) | ||
NAREIT Funds From Operations | $ 3.05 | $ 3.15 | ||
Add: Advisory Costs Related to a Contested Proxy Campaign | 0.04 | 0.04 | ||
FFO Before Advisory Costs Related to a Contested Proxy Campaign | $ 3.09 | $ 3.19 |
The following assumptions were used for guidance:
- Average quarter-end in service occupancy of
94.0% to95.0% . - SS NOI growth on a cash basis before termination fees of
5.0% to6.0% . - Includes the incremental costs expected in 2026 related to the Company's completed and under construction developments as of March 31, 2026. In total, the Company expects to capitalize
$0.08 - General and administrative expense of
$42.0 million $43.0 million $5.6 million - Guidance includes the impact of the aforementioned expected sale of the 100-acre income-producing land site in
Phoenix in 2Q26. - Guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, equity issuances, or stock repurchases post the date of this press release.
Conference Call
First Industrial will host its quarterly conference call on Thursday, April 23, 2026 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (833) 890-3273, 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 2026 supplemental information can be viewed at www.firstindustrial.com under the "Investors" tab.
Upcoming Property Tours for Analysts and Investors
First Industrial is hosting two upcoming property tours for investors and analysts. On Tuesday, May 12, 2026, the Company will conduct a presentation and tour of properties in the Inland Empire,
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 (the "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, including impacts and uncertainties arising from trade disputes and tariffs on goods imported to or exported from
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, | |||
2026 | 2025 | |||
Statements of Operations and Other Data: | ||||
Total Revenues | $ 194,827 | $ 177,074 | ||
Property Expenses | (53,614) | (48,311) | ||
General and Administrative (a) | (22,973) | (15,897) | ||
Joint Venture Development Services Expense | (31) | (217) | ||
Depreciation of Corporate FF&E | (157) | (171) | ||
Depreciation and Other Amortization of Real Estate | (49,911) | (43,583) | ||
Total Expenses | (126,686) | (108,179) | ||
Gain on Sale of Real Estate | 109,032 | 6,844 | ||
Interest Expense | (23,819) | (19,469) | ||
Amortization of Debt Issuance Costs | (1,531) | (963) | ||
Income from Operations Before Equity in Income of Joint Venture and Income Tax Provision | $ 151,823 | $ 55,307 | ||
Equity in Income of Joint Venture | 108 | 3,477 | ||
Income Tax Provision | (4,013) | (5,900) | ||
Net Income | $ 147,918 | $ 52,884 | ||
Net Income Attributable to the Noncontrolling Interests | (4,817) | (4,781) | ||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 143,101 | $ 48,103 | ||
RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO FFO (d) AND AFFO (d) | ||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 143,101 | $ 48,103 | ||
Depreciation and Other Amortization of Real Estate | 49,911 | 43,583 | ||
Depreciation and Other Amortization of Real Estate in the Joint Venture (b) | — | 1,056 | ||
Net Income Attributable to the Noncontrolling Interests | 4,817 | 4,781 | ||
Gain on Sale of Real Estate | (109,032) | (6,844) | ||
Gain on Sale of Real Estate from Joint Venture (b) | (49) | (3,305) | ||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (b) | (7) | (147) | ||
Income Tax Provision - Excluded from FFO (c) | 3,712 | 5,736 | ||
Funds From Operations ("FFO") (NAREIT) (d) | $ 92,453 | $ 92,963 | ||
Amortization of Equity Based Compensation | 15,055 | 13,930 | ||
Amortization of Debt Discounts and Hedge Costs | 262 | 104 | ||
Amortization of Debt Issuance Costs | 1,531 | 963 | ||
Depreciation of Corporate FF&E | 157 | 171 | ||
Non-incremental Building Improvements | (2,793) | (1,277) | ||
Non-incremental Leasing Costs | (6,604) | (5,442) | ||
Capitalized Interest | (2,961) | (2,883) | ||
Capitalized Overhead | (2,965) | (3,164) | ||
Straight-Line Rent, Amortization of Above (Below) Market Leases and Lease Inducements | (3,563) | (6,283) | ||
Adjusted Funds From Operations ("AFFO") (d) | $ 90,572 | $ 89,082 | ||
RECONCILIATION OF NET INCOME AVAILABLE TO FIRST INDUSTRIAL REALTY TRUST, INC.'S COMMON STOCKHOLDERS AND PARTICIPATING SECURITIES TO ADJUSTED EBITDA (d) AND NOI (d) | ||||
Three Months Ended | ||||
March 31, | March 31, | |||
2026 | 2025 | |||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 143,101 | $ 48,103 | ||
Interest Expense | 23,819 | 19,469 | ||
Depreciation and Other Amortization of Real Estate | 49,911 | 43,583 | ||
Depreciation and Other Amortization of Real Estate in the Joint Venture (b) | — | 1,056 | ||
Income Tax Provision - Allocable to FFO (c) | 301 | 164 | ||
Net Income Attributable to the Noncontrolling Interests | 4,817 | 4,781 | ||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (b) | (7) | (147) | ||
Amortization of Debt Issuance Costs | 1,531 | 963 | ||
Depreciation of Corporate FF&E | 157 | 171 | ||
Gain on Sale of Real Estate | (109,032) | (6,844) | ||
Gain on Sale of Real Estate from Joint Venture (b) | (49) | (3,305) | ||
Income Tax Provision - Excluded from FFO (c) | 3,712 | 5,736 | ||
Adjusted EBITDA (d) | $ 118,261 | $ 113,730 | ||
General and Administrative (a) | 22,973 | 15,897 | ||
Equity in FFO from Joint Venture, Net of Noncontrolling Interest (b) | (52) | (1,081) | ||
Net Operating Income ("NOI") (d) | $ 141,182 | $ 128,546 | ||
Non-Same Store NOI | (4,706) | 1,811 | ||
Same Store NOI Before Same Store Adjustments (d) | $ 136,476 | $ 130,357 | ||
Straight-line Rent | (1,202) | (5,945) | ||
Above (Below) Market Lease Amortization | (479) | (560) | ||
Lease Termination Fees | (166) | (24) | ||
Same Store NOI (Cash Basis without Termination Fees) (d) | $ 134,629 | $ 123,828 | ||
Weighted Avg. Number of Shares/Units Outstanding - Basic | 135,915 | 135,440 | ||
Weighted Avg. Number of Shares Outstanding - Basic | 132,573 | 132,415 | ||
Weighted Avg. Number of Shares/Units Outstanding - Diluted | 136,493 | 136,115 | ||
Weighted Avg. Number of Shares Outstanding - Diluted | 132,640 | 132,493 | ||
Per Share/Unit Data: | ||||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities | $ 143,101 | $ 48,103 | ||
Less: Allocation to Participating Securities | (63) | (36) | ||
Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders | $ 143,038 | $ 48,067 | ||
Basic and Diluted Per Share (a) | $ 1.08 | $ 0.36 | ||
FFO (NAREIT) (d) | $ 92,453 | $ 92,963 | ||
Less: Allocation to Participating Securities | (116) | (129) | ||
FFO (NAREIT) Allocable to Common Stockholders and Unitholders | $ 92,337 | $ 92,834 | ||
Basic Per Share/Unit (a) | $ 0.68 | $ 0.69 | ||
Diluted Per Share/Unit (a) | $ 0.68 | $ 0.68 | ||
Common Dividends/Distributions Per Share/Unit | $ 0.500 | $ 0.445 | ||
Balance Sheet Data (end of period): | March 31, 2026 | December 31, 2025 | ||
Gross Real Estate Investment | $ 6,384,542 | $ 6,367,678 | ||
Total Assets | 5,772,370 | 5,688,081 | ||
Debt | 2,565,126 | 2,553,396 | ||
Total Liabilities | 2,921,071 | 2,929,151 | ||
Total Equity | 2,851,299 | 2,758,930 |
(a) Includes
Three Months Ended | |||||
March 31, | March 31, | ||||
2026 | 2025 | ||||
(b) | Equity in Income of Joint Venture | ||||
Equity in Income of Joint Venture per GAAP Statements of Operations | $ 108 | $ 3,477 | |||
Gain on Sale of Real Estate from Joint Venture | (49) | (3,305) | |||
Depreciation and Other Amortization of Real Estate in the Joint Venture | — | 1,056 | |||
Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest | (7) | (147) | |||
Equity in FFO from Joint Venture, Net of Noncontrolling Interest | $ 52 | $ 1,081 | |||
(c) | Income Tax Provision | ||||
Income Tax Provision per GAAP Statements of Operations | $ (4,013) | $ (5,900) | |||
Income Tax Provision - Excluded from FFO | 3,712 | 5,736 | |||
Income Tax Provision - Allocable to FFO | $ (301) | $ (164) | |||
(d) 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, 2025 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, 2025 (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.