First Industrial Reports Funds From Operations of $0.81, Raises Annual Guidance
Key Facts
First Industrial Realty Trust reported diluted funds from operations of $0.81 per share or unit in the third quarter of 2026, up from $0.76 in the corresponding period of 2025, and raised its annual guidance for the measure based on its quarterly performance and outlook. Diluted net income, meanwhile, was $0.44 per share for the period, according to the earnings release, which the company had scheduled for publication after the market close on October 21, 2026. Diluted net income was $0.49 per share in the third quarter of the previous year. According to Investing.com, earnings per share missed analysts' estimates of $0.47 by $0.03. Revenue, however, exceeded consensus estimates, reaching $197.12 million for the quarter, compared with forecasts of $196.29 million. The year-on-year decline in net earnings per share thus coincided with growth in funds from operations, while revenue exceeded analysts' expectations.
In leasing activity, the company said cash rents on new and renewal leases commencing during the third quarter rose 52%. The increase for leases commencing in the second quarter of the same year was 39%, according to the previous period's earnings release. Same-property cash net operating income, before lease termination fees, grew 5.6% in the third quarter. That compared with growth of 6.7% in the second quarter, marking a slowdown despite the larger increase in rents on new and renewal leases. The company attributed the growth in operating income to higher rents on those leases, alongside contractual rent increases. It added that lower average occupancy limited the impact of these supporting factors during the quarter.
Occupancy at operating properties stood at 94.1% at the end of September 2026, according to the company's third-quarter earnings release. Occupancy was 94.9% at the end of June of the same year, reflecting a decline from the end of the previous quarter. On a year-on-year basis, occupancy at the end of the third quarter remained slightly above its level of 94.0% at the end of the corresponding period of 2025. Chief Executive Peter Baccile said "market fundamentals continued to improve" during the quarter. Baccile linked that improvement to broadening tenant demand in the industrial property market.
As part of its property portfolio activity during the third quarter, the company acquired a building in central Pennsylvania for $120 million. It said in its release that the 764,000-square-foot building was fully leased. In trading before the results were published, the company's shares, which trade under the ticker FR, closed at $59.4 on October 21, according to EL7 data. The shares closed at $59.19 in the October 20 session, with the closing price rising in the following session. The October 21 closing price preceded the company's scheduled earnings announcement after trading ended that day.
For 2026, First Industrial expects funds from operations under the National Association of Real Estate Investment Trusts standard of between $3.11 and $3.15 per share or unit. The company said it raised the midpoint of its guidance range for the measure by $0.01 per share or unit. It based the increase on its third-quarter performance and outlook for the remainder of the year. It also targets occupancy at operating properties of between 94.5% and 96.5% by the end of the fourth quarter of 2026. It expects same-property cash net operating income, before lease termination fees, to grow between 6.25% and 6.75% for the year. The company scheduled its earnings conference call for October 22, 2026, at 11 a.m. Eastern Time.