First Industrial Realty Trust Inc. (FR) Reports Strong Q3 2023 Results with 60% Cash Rental ...
First Industrial Realty Trust Inc. (NYSE:FR) reported a 60% cash rental rate increase on leases signed to-date commencing in 2023.
The company's cash same store NOI growth was 7.4% in Q3 2023 and 8.7% YTD Q3 2023.
FR sold 39 acres in Phoenix for $41 million and signed 955,000 square feet of new leases for speculative developments in Q3 and Q4 to-date.
The company increased its 2023 FFO guidance by $0.01 at the midpoint.
First Industrial Realty Trust Inc. (NYSE:FR), a leading fully integrated owner, operator, and developer of logistics real estate, announced its third-quarter 2023 results on October 18, 2023. The company's diluted net income available to common stockholders per share (EPS) was $0.57, compared to $0.94 a year ago. Third-quarter FFO was $0.62 per share/unit on a diluted basis, compared to $0.60 per share/unit a year ago.
Financial Highlights
The company's financial results reflect the solid overall fundamentals in the logistics real estate sector. The in-service occupancy was 95.4% at the end of Q3 2023, compared to 97.7% at the end of Q2 2023, and 98.3% at the end of Q3 2022. Cash rental rates increased 39.4% and increased 59.7% on a straight-line basis in Q3 2023.
Our financial results reflect the continuing solid overall fundamentals in our sector and the strength of our operations, said Peter E. Baccile, president and chief executive officer of First Industrial. We have made good progress to date on our 2024 expirations where we continue to achieve strong cash rent growth.
Development Leasing and Investment Highlights
In Q3 2023, the company leased 100% of the 132,000 square-foot FirstGate Commerce Center in South Florida and 100% of the 421,000 square-foot Building B at its Camelback 303 business park joint venture in Phoenix. The company also sold 39 acres in Phoenix on balance sheet for a total of $41 million and acquired one site in Nashville for $3 million that can support up to 542,000 square feet of development.
Outlook for 2023
With the benefit of income from the new Phoenix ground lease, the company is raising its outlook for FFO per share for 2023 by $0.01 per share at the midpoint. The company expects to capitalize $0.10 per share of interest in 2023 and anticipates a general and administrative expense of $34.5 million to $35.5 million.
For more detailed financial information, please visit the company's website at www.firstindustrial.com.
This article first appeared on GuruFocus.
