First Industrial Realty Trust (FR) Q1 2026 earnings summary

Executive summary

• Achieved strong operating results with a 41% average increase in cash rental rates on new and renewal leases, 85.7% tenant retention, and 94.3% quarter-end occupancy, reflecting robust demand for industrial properties.

• Completed a significant lease reclassification in Phoenix, recognizing a $109 million gain on sale, and finished development of two buildings in Philadelphia totaling 0.4 million square feet.

• Signed 383,000 SF of new leases for development projects and started two new developments totaling 305,000 SF in Miami and Dallas.

• Declared a quarterly dividend of $0.50 per share/unit, up 12.4% year-over-year, and established a $250 million share repurchase program.

• Achieved a key renewal in Southern California and exceeded rent change guidance.

Financial highlights

• Total revenues rose 10.0% year-over-year to $194.8 million, driven by higher rental rates and new acquisitions.

• Net income increased to $147.9 million from $52.9 million in the prior year quarter, primarily due to the $109 million gain on the Phoenix lease reclassification.

• Q1 2026 Nareit FFO was $0.68 per share, flat year-over-year; adjusted FFO was $0.72, excluding $0.04 per share in proxy-related advisory costs.

• Same store NOI (cash basis, excluding termination fees) grew 8.7% year-over-year.

• Basic and diluted EPS were $1.08, up from $0.36 year-over-year.

Outlook and guidance

• 2026 Nareit FFO guidance (excluding proxy costs): $3.09–$3.19 per share/unit, unchanged from prior call.

• Average quarter-end in-service occupancy guidance: 94%–95%, reflecting incremental development leasing.

• Cash same-store NOI growth guidance (before termination fees): 5%–6%.

• G&A expense guidance: $42–$43 million, excluding $5.6 million in proxy-related costs.

• Guidance assumes Phoenix land sale closes in June/Q2 2026.