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Jun 30, 2024
First Industrial Q2 2024 Earnings Report
Announced second quarter 2024 results, featuring significant leasing wins and increased FFO guidance.
Key Takeaways
First Industrial Realty Trust reported a diluted EPS of $0.39 for the second quarter of 2024, compared to $0.41 a year ago. Second quarter funds from operations (FFO) was $0.66 per share/unit on a diluted basis, compared to $0.61 per share/unit a year ago. The company signed 1.1 million square feet of new leases for speculative developments in the second quarter and third quarter to-date and increased 2024 NAREIT FFO guidance $0.03 at the midpoint to $2.57 to $2.65 Per Share/Unit.
Signed 1.1 million square feet of new leases for speculative developments in Q2 and Q3 to-date.
In service occupancy was 95.3% at the end of the second quarter of 2024.
Cash rental rates on new and renewal leasing increased 43.4% for leases commenced in the second quarter.
2024 NAREIT FFO guidance increased $0.03 at the midpoint to $2.57 to $2.65 Per Share/Unit.
First Industrial
First Industrial
Forward Guidance
With the benefit of the progress we have made leasing our developments, we are raising our FFO per share guidance by 3 cents at the midpoint.
Positive Outlook
- Average quarter-end in service occupancy of 95.75% to 96.75%.
- SS NOI growth on a cash basis before termination fees of 7.25% to 8.25% for the full year.
- Includes the incremental costs expected in 2024 related to the Company’s completed and under construction developments as of June 30, 2024.
- In total, the Company expects to capitalize $0.05 per share of interest in 2024.
- General and administrative expense ("G&A") of $39.5 million to $40.5 million.
Challenges Ahead
- 2024 NAREIT FFO per share/unit guidance is impacted by $0.02 per share/unit of accelerated expense related to an accounting rule that requires the Company to fully expense the value of granted equity-based compensation for certain tenured employees.
- SS NOI excludes $2.9 million of income related to the 1Q23 accelerated recognition of a tenant improvement reimbursement.
- Guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, or equity issuances post the date of this press release.
- 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