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Jun 30, 2022
First Industrial Q2 2022 Earnings Report
Reported strong second quarter performance driven by financial results, portfolio metrics, and development program contributions.
Key Takeaways
First Industrial Realty Trust reported a strong second quarter in 2022, with EPS of $0.88 compared to $0.40 a year ago, and FFO of $0.56 per share/unit on a diluted basis, compared to $0.48 per share/unit a year ago. The company experienced high occupancy rates, increased rental rates, and growth in same property cash basis net operating income.
Increased FFO guidance for 2022 by $0.04 at the midpoint to $2.15 to $2.23 per share/unit.
Achieved occupancy of 98.4%, with cash rental rates up 27.0% and cash same store NOI growing 9.4%.
Leased 100% of 1.1 million square-foot First Logistics Center @ 283 in Central Pennsylvania and 208,000 square-foot First Bordentown Logistics Center in New Jersey.
Sold 391 acres at Camelback 303 Joint Venture in Phoenix for $255 Million; FR's Share of Gain and Promote Before Tax of $104 Million.
First Industrial
First Industrial
Forward Guidance
The company is increasing its FFO per share guidance for 2022 by four cents at the midpoint to $2.19, fueled predominantly by development leasing ahead of pro forma, quicker lease up in the in-service portfolio and an increase in capitalized interest due to new development starts.
Positive Outlook
- Average quarter-end in service occupancy of 98.0% to 98.75%, an increase of 37.5 basis points at the midpoint.
- Lease-up of the 644,000 square-foot facility in Baltimore will occur in 4Q22.
- Same store NOI growth on a cash basis before termination fees of 8.25% to 9.25% for the full year, an increase of 50 basis points at the midpoint.
- General and administrative expense of approximately $34.0 million to $35.0 million, an increase of $0.5 million at the midpoint.
- The Company expects to capitalize $0.10 per share of interest in 2022, an increase of $0.01 per share.
Challenges Ahead
- Guidance does not include the impact of any future debt repurchases prior to maturity or future debt issuances.
- Guidance does not include the impact of any future investments or property sales.
- Guidance does not include the impact of any future equity issuances.
- Uncertainty in economic conditions.
- Changes in real estate markets.