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Jun 30, 2023
First Industrial Q2 2023 Earnings Report
Reported strong financial and operating results, achieving record cash rental rate growth and solid same-store cash net operating income growth.
Key Takeaways
First Industrial Realty Trust reported strong second-quarter results, highlighted by a 10.8% increase in same-store cash net operating income and a record 74% cash rental rate growth on new and renewal leases. The company also increased its 2023 FFO guidance by $0.01 at the midpoint.
Cash rental rates increased by 74.1% in 2Q23.
Cash rental rate increase of 63% on leases signed to-date commencing in 2023.
Same store cash NOI grew by 10.8% in 2Q23, with occupancy at 97.7% at quarter-end.
The company renewed its largest 2024 lease rollover of 700,000 square feet.
First Industrial
First Industrial
Forward Guidance
First Industrial Realty Trust has adjusted its occupancy guidance downward by 75 basis points at the midpoint, reflecting extended lease-up assumptions for certain developments. However, the company is raising its outlook for FFO per share for 2023 by $0.01 per share at the midpoint.
Positive Outlook
- Average quarter-end in service occupancy of 97.0% to 98.0%.
- SS NOI growth on a cash basis before termination fees of 7.75% to 8.75% for the full year.
- FFO from Joint Venture of $0.02 per share related to the Company's share of the ground lease rent from the previously disclosed purchase option agreement.
- Includes the incremental costs expected in 2023 related to the Company’s developments completed and under construction as June 30, 2023.
- The Company expects to capitalize $0.10 per share of interest in 2023.
Challenges Ahead
- Adjustments to lease-up timing assumptions for developments that will be placed in-service in the third and fourth quarters of 2023.
- Guidance does not include the impact of any future investments.
- Guidance does not include the impact of property sales.
- Guidance does not include the impact of debt repurchases prior to maturity.
- Guidance does not include the impact of debt issuances, or equity issuances post the date of this press release.