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Jun 30, 2021
First Industrial Q2 2021 Earnings Report
Reported strong second quarter results driven by leasing wins, portfolio performance and development pipeline.
Key Takeaways
First Industrial Realty Trust reported a strong second quarter with EPS of $0.40 and FFO of $0.48 per share/unit. The company saw increased occupancy, strong cash rental rate growth, and significant development leasing activity.
Increased 2021 FFO guidance by $0.03 at midpoint to $1.93 per share/unit.
Achieved occupancy of 96.6%, up 90 basis points from 1Q21; cash rental rates increased by 15.7%.
Signed 1.2 million square feet of new leases for speculative developments in the second quarter and third quarter to-date.
Commenced four developments totaling 2.7 million square feet with an estimated investment of $266 million.
Forward Guidance
First Industrial is increasing the midpoint of its FFO guidance by $0.03 for 2021, driven by a strong quarter and increased capitalized interest related to new developments.
Positive Outlook
- Average quarter-end in service occupancy of 96.0% to 97.0%.
- SS NOI growth on a cash basis before termination fees of 3.75% to 4.75% for the full year.
- General and administrative expense of approximately $33.0 million to $34.0 million.
- Capitalize $0.07 per share of interest in 2021.
- Benefit of incremental leasing in the second quarter and a revised lease-up assumption for the 644,000 square-foot facility in Baltimore from 3Q21 to 2022.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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