First Industrial Q2 2022 Earnings Report
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.