First Industrial Realty Trust, Inc. and its subsidiary, First Industrial, L.P., reported financial results for the quarter ended September 30, 2024. The company’s net income was $23.1 million, or $0.23 per diluted share, compared to $20.5 million, or $0.20 per diluted share, in the same period last year. Total revenues increased 4.5% to $64.1 million, driven by a 3.1% increase in same-store net operating income and a 1.4% increase in rental rates. The company’s same-store portfolio occupancy rate remained strong at 95.6%, and its debt-to-equity ratio was 0.53 at quarter-end. The company also announced that it had acquired 12 industrial properties totaling 1.4 million square feet for $143.5 million, and had sold 10 properties totaling 1.1 million square feet for $93.5 million.
Overview of the Company’s Financial Performance
First Industrial Realty Trust, Inc. (the “Company”) is a real estate investment trust (REIT) that owns, manages, acquires, sells, develops, and redevelops industrial real estate. The Company reported strong operating results for the nine months ended September 30, 2024, with net income of $225.5 million, up from $194.1 million in the same period of 2023.
The Company’s in-service occupancy rate at the end of the third quarter of 2024 was 95.0%, and it achieved a 52.9% increase in cash rental rates for new and renewal leases that commenced during the nine-month period. The Company also had five development projects totaling 1.3 million square feet of gross leasable area (GLA) under construction as of September 30, 2024, with an estimated total investment of $183.4 million.
Revenue and Profit Trends
The Company’s total revenues increased by 8.2% to $494.1 million for the nine months ended September 30, 2024, compared to $456.8 million in the same period of 2023. This increase was primarily driven by:
The Company’s net income increased by $31.4 million (16.2%) to $225.5 million for the nine months ended September 30, 2024, compared to $194.1 million in the same period of 2023. This increase was primarily driven by:
These increases were partially offset by:
Strengths and Weaknesses
Strengths:
Weaknesses:
Outlook for the Future
The Company’s management is optimistic about the future, citing favorable industrial real estate fundamentals, economic and business environments, and population growth in the Company’s 15 key logistics markets, particularly those with a coastal orientation.
The Company plans to continue its focus on internal growth through lease renewals, rent escalations, occupancy improvements, and cost control. Externally, the Company will seek to grow through strategic development, acquisitions, and joint venture investments in its target markets.
The Company’s financing strategy involves utilizing a mix of property sales proceeds, unsecured debt, mortgage financing, and equity issuances to fund its growth initiatives, while maintaining a strong balance sheet and investment-grade credit ratings.
Overall, the Company appears well-positioned to capitalize on the favorable industrial real estate market conditions and continue its track record of growth and value creation for shareholders.