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Mar 31, 2022
First Industrial Q1 2022 Earnings Report
Reported excellent operating results driven by strong industrial real estate fundamentals and low vacancy levels.
Key Takeaways
First Industrial Realty Trust reported strong first-quarter 2022 results, with EPS of $0.27 and FFO of $0.53 per share/unit. The company saw a 14.4% increase in cash same-store NOI and an occupancy rate of 98.0%. They also increased the dividend by 9.3% to $0.295 per share.
Cash Same Store NOI grew 14.4% with occupancy at 98.0% and cash rental rates up 12.7%.
Signed 72% of 2022 rollovers to-date at a cash rental rate increase of 20%.
Started five developments in the first quarter totaling 1.3 million square feet, with an estimated investment of $168 million.
Increased first quarter 2022 dividend to $0.295 per share, a 9.3% increase.
First Industrial
First Industrial
Forward Guidance
Given the first quarter performance and the outlook for the remainder of the year, the company is increasing its midpoint FFO guidance by $0.01 per share.
Positive Outlook
- Average quarter-end in service occupancy of 97.5% to 98.5%, an increase of 25 basis points at the midpoint.
- Same store NOI growth on a cash basis before termination fees of 7.75% to 8.75% for the full year, an increase of 50 basis points at the midpoint.
- General and administrative expense of approximately $33.5 million to $34.5 million.
- Includes the incremental costs expected in 2022 related to the Company’s developments completed and under construction as of March 31, 2022 and the aforementioned planned second quarter start of First Elm Logistics Center. In total, the Company expects to capitalize $0.09 per share of interest in 2022.
- Reflects the aforementioned $425 million term loan transaction that refinances the $260 million term loan and the expected payoff of a $67 million mortgage loan coming due in 3Q22.
Challenges Ahead
- Any future debt repurchases prior to maturity or future debt issuances.
- Any future investments or property sales.
- Any future equity issuances.
- 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.