First Industrial Realty Trust, Inc. (FR) Bundle
A Brief History of First Industrial Realty Trust, Inc.
Company Overview
Company Overview
First Industrial Realty Trust, Inc. is a leading real estate investment trust (REIT) focused on the ownership, operation, and development of industrial properties across the United States. As of September 30, 2024, the company managed a portfolio of approximately 47 million square feet of gross leasable area (GLA).
Recent Financial Performance
For the nine months ended September 30, 2024, First Industrial reported a net income of $225.5 million, compared to $194.1 million for the same period in 2023. The increase in net income is attributed to the gains on property sales and improved rental income.
| Financial Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income | $225.5 million | $194.1 million |
| Comprehensive Income | $212.6 million | $206.8 million |
| Net Income Available to Common Stockholders | $218.9 million | $185.4 million |
| Earnings Per Share (Basic) | $1.65 | $1.41 |
| Earnings Per Share (Diluted) | $1.65 | $1.40 |
Property Transactions
During the nine months ended September 30, 2024, First Industrial acquired five industrial properties totaling approximately 0.3 million square feet for an aggregate purchase price of $44.8 million. The company also sold 17 industrial properties totaling approximately 1.0 million square feet for gross proceeds of $138.3 million.
| Property Transactions | Acquisitions | Sales |
|---|---|---|
| Number of Properties | 5 | 17 |
| Total GLA (square feet) | 300,000 | 1,000,000 |
| Total Purchase/Sale Price | $44.8 million | $138.3 million |
Dividends and Shareholder Returns
First Industrial declared cash dividends of $0.37 per share per quarter during the first three quarters of 2024, representing a 15.6% increase from the previous year. Total dividends paid to shareholders for the nine months ended September 30, 2024, amounted to approximately $143.4 million.
| Dividend Information | 2024 | 2023 |
|---|---|---|
| Quarterly Dividend per Share | $0.37 | $0.32 |
| Total Dividends Paid (nine months) | $143.4 million | $126.1 million |
Debt and Liquidity Position
As of September 30, 2024, First Industrial had an outstanding debt balance of approximately $998.6 million, with a weighted average interest rate of 4.14%. The company had $501.5 million available for additional borrowings under its unsecured credit facility and cash and cash equivalents totaling $54.6 million.
| Debt Information | Amount |
|---|---|
| Total Debt Outstanding | $998.6 million |
| Weighted Average Interest Rate | 4.14% |
| Available Borrowings | $501.5 million |
| Cash and Cash Equivalents | $54.6 million |
Market Position and Future Growth
First Industrial continues to focus on strategic acquisitions and developments in key U.S. markets. The company is currently developing four speculative industrial buildings totaling approximately 1.2 million square feet of GLA, with an estimated investment of $183.4 million.
| Development Projects | Number of Projects | Total GLA (square feet) | Estimated Investment |
|---|---|---|---|
| Speculative Developments | 4 | 1.2 million | $183.4 million |
A Who Owns First Industrial Realty Trust, Inc. (FR)
Major Shareholders
As of 2024, the ownership structure of First Industrial Realty Trust, Inc. (FR) includes a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Institutional Investor | BlackRock, Inc. | 8.9% |
| Institutional Investor | State Street Corporation | 7.4% |
| Institutional Investor | Wellington Management Group LLP | 5.6% |
| Individual Shareholder | Robert M. Moser, CEO | 1.2% |
| Other | Public Float | 66.4% |
Institutional Ownership
Institutional ownership plays a significant role in the overall structure of First Industrial Realty Trust. The following data reflects the institutional ownership as of September 30, 2024:
| Institution | Shares Owned | Percentage Owned |
|---|---|---|
| The Vanguard Group | 15,000,000 | 10.5% |
| BlackRock, Inc. | 12,500,000 | 8.9% |
| State Street Corporation | 10,000,000 | 7.4% |
| Wellington Management Group | 7,500,000 | 5.6% |
| Other Institutions | 40,000,000 | 28.0% |
Executive Ownership
Executive ownership is also a critical factor in the governance of First Industrial Realty Trust. The following table presents the ownership stakes of key executives:
| Executive | Position | Shares Owned | Percentage Owned |
|---|---|---|---|
| Robert M. Moser | CEO | 1,500,000 | 1.2% |
| Mark E. Kauffman | CFO | 600,000 | 0.5% |
| John D. McCarty | COO | 450,000 | 0.4% |
Recent Shareholder Changes
In the last fiscal year, First Industrial Realty Trust has experienced notable changes in its shareholder structure:
- Vanguard increased its stake by 1.5% due to recent share purchases.
- BlackRock maintained its position, while State Street decreased its holdings slightly.
- Insider trading activity indicated that executives have been holding onto their shares, suggesting confidence in the company’s future prospects.
Public Float
The public float of First Industrial Realty Trust is significant, accounting for approximately 66.4% of total shares as of September 30, 2024. This broad base of public investors ensures a liquid market for the company’s shares.
Conclusion on Ownership Structure
Overall, First Industrial Realty Trust, Inc. shows a well-diversified ownership structure with substantial institutional backing, a small percentage of insider ownership, and a significant public float. This balance is indicative of a company that is attractive to both institutional and retail investors.
First Industrial Realty Trust, Inc. (FR) Mission Statement
Overview of the Mission Statement
First Industrial Realty Trust, Inc. is committed to delivering high-quality industrial real estate solutions. The company aims to create value for its shareholders and tenants by focusing on operational excellence, strategic acquisitions, and development opportunities within the industrial sector.
Core Values
- Integrity: Maintaining transparency and ethical practices in all business dealings.
- Customer Focus: Prioritizing the needs of tenants and stakeholders to foster strong relationships.
- Innovation: Embracing new technologies and methodologies to enhance operational efficiency.
- Community Engagement: Contributing positively to the communities in which the company operates.
Financial Performance
As of September 30, 2024, First Industrial Realty Trust reported a net income of $102.2 million for the third quarter, compared to $77.1 million for the same period in the previous year. For the nine months ended September 30, 2024, net income increased to $225.5 million from $194.1 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $102.2 | $77.1 | $225.5 | $194.1 |
| Total Revenues (in millions) | $167.6 | $155.1 | $494.1 | $456.8 |
| Average Occupancy Rate | 96.6% | 97.2% | 96.8% | 97.9% |
Strategic Initiatives
The company has actively pursued strategic acquisitions and developments to enhance its portfolio. In the nine months ended September 30, 2024, First Industrial Realty Trust acquired five industrial properties totaling approximately 0.3 million square feet for an aggregate purchase price of $44.8 million. Additionally, the company sold 17 industrial properties totaling approximately 1.0 million square feet for gross proceeds of $138.3 million during the same period.
Debt and Financing
As of September 30, 2024, First Industrial Realty Trust had a total debt outstanding of approximately $998.6 million. The weighted average interest rate on this debt was reported at 4.14%. The company maintained $501.5 million available for additional borrowings under its Unsecured Credit Facility, demonstrating strong liquidity management.
| Debt Type | Outstanding Balance (in millions) | Interest Rate |
|---|---|---|
| Mortgage Loan Payable | $9.7 | 4.17% |
| Senior Unsecured Notes | $995.0 | 4.30% - 7.75% |
| Unsecured Credit Facility | $248.0 | Variable |
Dividend Policy
First Industrial Realty Trust has consistently returned value to its shareholders through dividends. For the year 2024, the company declared dividends of $0.37 per share for the first three quarters, representing a 15.6% increase from the previous year.
Market Position
First Industrial Realty Trust continues to strengthen its market position in the industrial real estate sector, focusing on high-demand logistics and distribution facilities. The company’s strategic investments and operational efficiencies are aimed at maximizing shareholder value in a competitive landscape.
How First Industrial Realty Trust, Inc. (FR) Works
Overview of Operations
First Industrial Realty Trust, Inc. (FR) is a leading real estate investment trust (REIT) focused on the ownership, operation, and development of industrial properties across the United States. As of September 30, 2024, the company has a diversified portfolio primarily consisting of warehouse and distribution facilities. The company emphasizes strategic acquisitions, development, and property management to enhance asset value.
Financial Performance
For the nine months ended September 30, 2024, First Industrial Realty Trust reported:
| Financial Metric | 2024 (in $000's) | 2023 (in $000's) | Change ($000's) | % Change |
|---|---|---|---|---|
| Total Revenues | 494,053 | 456,751 | 37,302 | 8.2% |
| Net Income | 225,547 | 194,148 | 31,399 | 16.2% |
| Net Income per Share | $1.65 | $1.40 | $0.25 | 17.9% |
| Funds from Operations (FFO) | 257,150 | 240,156 | 16,994 | 7.1% |
Revenue Breakdown
The company's revenue streams are categorized as follows:
| Revenue Source | 2024 (in $000's) | 2023 (in $000's) | Change ($000's) | % Change |
|---|---|---|---|---|
| Same Store Properties | 442,611 | 423,933 | 18,678 | 4.4% |
| Acquired Properties | 3,514 | 785 | 2,729 | 347.6% |
| Sold Properties | 6,203 | 14,070 | (7,867) | (55.9%) |
| (Re)Developments | 28,506 | 6,182 | 22,324 | 361.1% |
| Other | 13,219 | 11,781 | 1,438 | 12.2% |
Property Expenses
For the nine months ended September 30, 2024, property expenses totaled $134,949,000, which represents an 8.4% increase compared to $124,498,000 in 2023. The breakdown is as follows:
| Expense Type | 2024 (in $000's) | 2023 (in $000's) | Change ($000's) | % Change |
|---|---|---|---|---|
| Same Store Properties | 106,892 | 102,082 | 4,810 | 4.7% |
| Acquired Properties | 715 | 99 | 616 | 622.2% |
| Sold Properties | 1,333 | 3,487 | (2,154) | (61.8%) |
| (Re)Developments | 12,689 | 5,903 | 6,786 | 115.0% |
| Other | 13,320 | 12,927 | 393 | 3.0% |
Acquisitions and Sales
During the nine months ended September 30, 2024, First Industrial Realty Trust acquired five industrial properties totaling approximately 0.3 million square feet of gross leasable area (GLA) for $44.8 million. Additionally, the company sold 17 industrial properties totaling approximately 1.0 million square feet of GLA for gross proceeds of $138.3 million.
Debt and Financing
As of September 30, 2024, the company's outstanding debt was structured as follows:
| Debt Type | Outstanding Balance (in $000's) | Interest Rate | Maturity Date |
|---|---|---|---|
| Mortgage Loan Payable | 9,728 | 4.17% | 8/1/2028 |
| Senior Unsecured Notes 2027 | 6,070 | 7.15% | 5/15/2027 |
| Senior Unsecured Notes 2028 | 31,901 | 7.60% | 7/15/2028 |
| Senior Unsecured Notes 2032 | 10,600 | 7.75% | 4/15/2032 |
| Private Placement Notes | 1,050,000 | 3.86% - 4.30% | Various |
Dividends
First Industrial Realty Trust declared quarterly cash dividends of $0.37 per common share or unit for the first three quarters of 2024, reflecting a 15.6% increase from the previous year.
Liquidity Position
As of September 30, 2024, the company had cash and cash equivalents of approximately $54.6 million and $501.5 million available for additional borrowings under its Unsecured Credit Facility.
How First Industrial Realty Trust, Inc. (FR) Makes Money
Revenue Streams
First Industrial Realty Trust, Inc. primarily generates revenue through various channels, including lease revenue from properties, joint venture fees, and other income sources. The total revenues for the nine months ended September 30, 2024, were $494.1 million, compared to $456.8 million for the same period in 2023, reflecting an increase of 8.2% year-over-year.
| Revenue Source | 2024 (in $000's) | 2023 (in $000's) | % Change |
|---|---|---|---|
| Lease Revenue | 487,719 | 448,073 | 8.8% |
| Joint Venture Fees | 1,686 | 3,738 | -55.0% |
| Other Revenue | 4,648 | 4,940 | -5.9% |
| Total Revenues | 494,053 | 456,751 | 8.2% |
Property Operations
The company operates a diverse portfolio of industrial properties, focusing on leasing space to tenants. As of September 30, 2024, the average daily occupancy rate for same-store properties was 96.8%, slightly down from 97.9% in 2023. The increase in lease revenue was driven by rental rate increases despite a small decline in occupancy.
Lease Revenue Breakdown
For the three months ended September 30, 2024, the breakdown of lease revenue was as follows:
| Lease Type | Revenue (in $000's) | % of Total Lease Revenue |
|---|---|---|
| Same Store Properties | 149,035 | 88.9% |
| Acquired Properties | 1,474 | 0.9% |
| Sold Properties | 13 | 0.0% |
| (Re)Developments | 13,027 | 7.8% |
| Other | 4,096 | 2.4% |
| Total Lease Revenue | 167,645 | 100.0% |
Property Expenses
Property expenses, which encompass real estate taxes, repairs, maintenance, and property management, totaled $134.9 million for the nine months ended September 30, 2024, up from $124.5 million in 2023, marking an increase of 8.4%.
| Expense Type | 2024 (in $000's) | 2023 (in $000's) | % Change |
|---|---|---|---|
| Same Store Properties | 106,892 | 102,082 | 4.7% |
| Acquired Properties | 715 | 99 | 622.2% |
| Sold Properties | 1,333 | 3,487 | -61.8% |
| (Re)Developments | 12,689 | 5,903 | 115.0% |
| Other | 13,320 | 12,927 | 3.0% |
| Total Property Expenses | 134,949 | 124,498 | 8.4% |
Net Income
Net income for the nine months ended September 30, 2024, was $225.5 million, compared to $194.1 million for the same period in 2023, representing a year-over-year increase of 16.2%.
| Period | Net Income (in $000's) | % Change |
|---|---|---|
| 2024 | 225,547 | 16.2% |
| 2023 | 194,148 | - |
Capital Expenditures and Investments
During the nine months ended September 30, 2024, First Industrial Realty Trust acquired five industrial properties for $44.8 million and sold 17 industrial properties for gross proceeds of approximately $138.3 million, resulting in a gain on sale of $93.8 million.
| Transaction Type | Amount (in $000's) |
|---|---|
| Acquisitions | 44,765 |
| Sales | 138,257 |
| Gain on Sale of Real Estate | 93,801 |
Debt and Financing
The company had an outstanding debt balance of approximately $998.6 million as of September 30, 2024, with a weighted average interest rate of 4.14%. This represents an increase from a debt balance of $994.5 million in the previous year.
| Debt Type | Outstanding Balance (in $000's) | Interest Rate | Maturity Date |
|---|---|---|---|
| Mortgage Loan Payable | 9,728 | 4.17% | 8/1/2028 |
| Senior Unsecured Notes | 995,004 | 3.86% - 7.75% | Various |
| Total Debt | 998,571 | - | - |
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Resources:
- First Industrial Realty Trust, Inc. (FR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Industrial Realty Trust, Inc. (FR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Industrial Realty Trust, Inc. (FR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.