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Dec 31, 2022
First Industrial Q4 2022 Earnings Report
First Industrial reported strong Q4 2022 results, marked by record year-end occupancy and cash rental rate growth.
Key Takeaways
First Industrial Realty Trust reported a diluted net income per share (EPS) of $0.62 for the fourth quarter, and FFO of $0.60 per share. Year-end occupancy reached 98.8%, with cash rental rates increasing by 41.1% during the quarter.
Year-end occupancy reached a company record of 98.8%.
Cash rental rates increased by 41.1% in the fourth quarter.
SS NOI increased 7.6% reflecting higher average occupancy.
Increased First Quarter 2023 Dividend to $0.32 Per Share, an 8.5% Increase
First Industrial
First Industrial
Forward Guidance
Industrial real estate fundamentals support further market rent growth, which is benefiting our operating results and our earnings, with higher interest rates a partial offset. While the overall economic picture is evolving, we have positioned our company to perform throughout the cycle with our well-located portfolio and pipeline and our strong balance sheet with no debt maturities for the next few years.
Positive Outlook
- Average quarter-end in service occupancy of 97.75% to 98.75%.
- SS NOI growth on a cash basis before termination fees of 7.5% to 8.5% for the full year.
- Includes the incremental costs expected in 2023 related to the Company’s developments completed and under construction as of December 31, 2022.
- The Company expects to capitalize $0.08 per share of interest in 2023.
- General and administrative expense of $34.0 million to $35.0 million.
Challenges Ahead
- 2023 FFO per share guidance is impacted by an additional $0.02 per share in real estate taxes in one of our markets that we will accrue in 2023 but will not be recoverable from our tenants until the taxes are paid in 2024.
- Guidance does not include the impact of any future investments or property sales.
- 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 equity issuances.
- This range assumes 2023 bad debt expense of $1 million and excludes $1.4 million of income related to insurance claim settlements recognized in 4Q22.