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Shareholders Of First Industrial Realty Trust (NYSE:FR) Must Be Happy With Their 111% Total Return

Simply Wall St

It hasn't been the best quarter for First Industrial Realty Trust, Inc. (NYSE:FR) shareholders, since the share price has fallen 15% in that time. But that doesn't change the fact that the returns over the last five years have been pleasing. Its return of 84% has certainly bested the market return!

Check out our latest analysis for First Industrial Realty Trust

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, First Industrial Realty Trust managed to grow its earnings per share at 62% a year. This EPS growth is higher than the 13% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

NYSE:FR Past and Future Earnings May 26th 2020
NYSE:FR Past and Future Earnings May 26th 2020

We know that First Industrial Realty Trust has improved its bottom line lately, but is it going to grow revenue? Check if analysts think First Industrial Realty Trust will grow revenue in the future.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of First Industrial Realty Trust, it has a TSR of 111% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

First Industrial Realty Trust's TSR for the year was broadly in line with the market average, at 6.9%. It has to be noted that the recent return falls short of the 16% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that First Industrial Realty Trust is showing 5 warning signs in our investment analysis , and 2 of those make us uncomfortable...

Of course First Industrial Realty Trust may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.