First Industrial Realty Trust Sees 8.6% FFO Growth, Raises Dividend

By Tamara Parker • Thursday, February 06 10:32 • Permanent Link

First Industrial Realty Trust, Inc. has released its fourth quarter and full-year 2024 results, showcasing significant growth and positive performance across various metrics.

In terms of Funds From Operations (FFO), the company reported a strong growth rate of 8.6% for the full year 2024, with FFO reaching $2.65 per share/unit on a diluted basis, compared to $2.44 in 2023. Additionally, the company provided guidance for the year 2025, initiating the NAREIT FFO at a range of $2.87 to $2.97 per share/unit, reflecting approximately 10% growth at the midpoint.

The company's dividend also saw a substantial increase, with the first quarter 2025 dividend raised to $0.445 per share, marking a 20.3% increase from the previous rate of $0.37 per share/unit.

The company's portfolio performance was notably strong, with in-service occupancy reaching 96.2% at the end of the fourth quarter of 2024, compared to 95.0% at the end of the third quarter of 2024. Cash rental rates also experienced an impressive 41.4% increase in the fourth quarter, contributing to a 50.8% increase for the full year, marking the second-highest annual increase in the company's history.

Development leasing efforts were also fruitful, with the company signing 4.7 million square feet of development leases in 2024, the second-highest annual total since 2012. Notably, the company pre-leased 100% of the 542,000 square-foot First Rockdale VII in Nashville and leased 463,000 square feet of its 959,000 square-foot Building C in its Camelback 303 joint venture in Phoenix.

Moreover, the company's investment and disposition highlights demonstrated strategic financial management, with the sale of five buildings for $25 million in the fourth quarter and the acquisition of five fully leased buildings totaling 264,000 square feet and two land sites for a total of $71 million for the full year 2024.

First Industrial Realty Trust, Inc.'s President and CEO, Peter E. Baccile, expressed confidence in the company's outlook for 2025, expecting approximately 10% growth in FFO per share at the midpoint of the 2025 guidance. The company's focus remains on driving future cash flow growth from lease-up and realizing rental rate growth within its core portfolio while executing on all aspects of its development program. As a result of these announcements, the company's shares have moved 2.2% on the market, and are now trading at a price of $54.98. For the full picture, make sure to review First Industrial Realty Trust's 8-K report.

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