Breaking Down First Industrial Realty Trust, Inc. (FR) Financial Health: Key Insights for Investors

Are you keeping a close watch on First Industrial Realty Trust, Inc. (FR) and wondering about its financial stability? As of December 31, 2024, the company owns and has under development approximately 69.5 million square feet of industrial space. In 2024, First Industrial Realty Trust's diluted net income available to common stockholders per share (EPS) was $2.17, compared to $2.07 in 2023. The company's fourth quarter funds from operations (FFO) was $0.71 per share/unit on a diluted basis, compared to $0.63 per share/unit a year ago. With cash rental rates up by 50.8% for the full year 2024, discover the key factors driving First Industrial Realty Trust's financial performance and what it means for investors like you.

First Industrial Realty Trust, Inc. (FR) Revenue Analysis

Understanding First Industrial Realty Trust, Inc.'s financial health involves examining its revenue streams, growth, and segment contributions. Here's a breakdown:

Primary Revenue Sources: First Industrial Realty Trust, Inc. primarily generates revenue through the ownership, operation, development, and acquisition of logistics properties. They lease these facilities to multinational corporations and regional firms involved in various businesses such as e-commerce, third-party logistics, transportation, consumer goods, retail services, food and beverage, and wholesale distribution.

Year-over-Year Revenue Growth Rate:

• The company has demonstrated consistent revenue growth over the past few years.
• For the year 2024, First Industrial Realty Trust's revenue was $0.67 billion, a 9.06% increase compared to 2023.
• In 2023, the annual revenue was $0.614 billion, representing a 13.72% increase from 2022.
• The annual revenue for 2022 was $0.54 billion, which was a 13.36% increase from 2021.

The consistent year-over-year revenue growth highlights the company's ability to expand its operations and increase profitability. This growth is driven by factors such as increased rental rates, strategic acquisitions, and successful leasing of development properties.

Contribution of Different Business Segments to Overall Revenue: First Industrial Realty Trust operates with a focus on logistics properties, and its revenue is primarily derived from lease revenues. For instance, in the first quarter of 2025, lease revenue amounted to $175.4 million, compared to $159.7 million in the same period the previous year.

Analysis of Any Significant Changes in Revenue Streams:

Several factors contributed to changes in revenue streams for First Industrial Realty Trust:

• Rental Rate Increases: The company has achieved significant cash rental rate increases on leases. For leases commencing in 2024, there was a 51% increase. For leases commencing in 2025, the company has seen a 33% increase.
• Development Leasing: The company has been successful in leasing its development properties. In 2024, they signed 4.7 million square feet of development leases.
• Same Store NOI Growth: Cash basis same-store net operating income (SS NOI) has increased, reflecting higher rental rates and contractual rent escalations. For the full year 2024, SS NOI increased by 8.1%.
• Strategic Acquisitions and Dispositions: The company actively manages its portfolio through strategic acquisitions and sales. In 2024, they acquired properties worth $70.7 million and sold properties for $163 million.

Here's a table summarizing First Industrial Realty Trust's Revenue Growth from 2022-2024:

For additional insights into First Industrial Realty Trust, Inc.'s financial health, you can refer to Breaking Down First Industrial Realty Trust, Inc. (FR) Financial Health: Key Insights for Investors.

First Industrial Realty Trust, Inc. (FR) Profitability Metrics

Analyzing First Industrial Realty Trust, Inc. (FR)'s profitability involves examining gross profit, operating profit, and net profit margins to understand the company's financial health and operational efficiency. Here’s a detailed look:

For the fiscal year 2024, First Industrial Realty Trust, Inc. (FR) reported several key profitability metrics:

• Gross Profit: Gross profit was approximately $449.94 million.
• Operating Income: The operating income stood at around $302.36 million.
• Net Income: Net income available to common stockholders was reported as $172.46 million.

These figures provide a snapshot of the company's earnings at different stages, from the revenue remaining after deducting the cost of goods sold (gross profit) to the profit after deducting operating expenses (operating income) and finally, the profit available to shareholders after all expenses and obligations are met (net income).

To better assess First Industrial Realty Trust, Inc. (FR)'s efficiency, we can look at various margin ratios calculated from the above figures:

• Gross Profit Margin: Calculated as (Gross Profit / Total Revenue), this indicates the percentage of revenue remaining after covering the cost of goods sold. For First Industrial Realty Trust, Inc. (FR), using the 2024 revenue of $544.44 million, the gross profit margin is approximately 82.64%.
• Operating Margin: Calculated as (Operating Income / Total Revenue), this shows the percentage of revenue remaining after covering operating expenses. With an operating income of $302.36 million, the operating margin is about 55.53%.
• Net Profit Margin: Calculated as (Net Income / Total Revenue), this represents the percentage of revenue that translates into profit for shareholders. Given a net income of $172.46 million, the net profit margin is approximately 31.68%.

Evaluating trends in profitability over time helps identify whether First Industrial Realty Trust, Inc. (FR) is improving its efficiency and earnings. Analyzing several years of data can reveal patterns and the impact of strategic decisions on the company's bottom line. Unfortunately, specific historical trends over several years were not available in the search results.

Comparing First Industrial Realty Trust, Inc. (FR)'s profitability ratios with industry averages provides context on how well the company is performing relative to its peers. While specific industry averages were not available in the search results, these comparisons typically involve looking at similar REITs (Real Estate Investment Trusts) and assessing their gross, operating, and net profit margins.

Operational efficiency can be further analyzed by examining cost management practices and trends in the gross margin. A rising gross margin typically indicates that the company is becoming more efficient in managing its cost of operations, while effective cost management across all areas can boost operating and net profit margins.

Here is a table summarizing First Industrial Realty Trust, Inc. (FR)'s profitability metrics based on the provided data:

These metrics are crucial for investors looking to understand First Industrial Realty Trust, Inc. (FR)'s financial health and its ability to generate profits from its operations. For further insights into First Industrial Realty Trust, Inc. (FR) and its investors, check out: Exploring First Industrial Realty Trust, Inc. (FR) Investor Profile: Who’s Buying and Why?

First Industrial Realty Trust, Inc. (FR) Debt vs. Equity Structure

Understanding the financial structure of First Industrial Realty Trust, Inc. (FR) involves analyzing how the company uses debt and equity to finance its growth and operations. This encompasses examining its debt levels, debt-to-equity ratio, and any recent financing activities.

As of the fiscal year 2024, a comprehensive analysis of First Industrial Realty Trust, Inc. (FR)'s financial statements reveals the following insights into its debt and equity structure:

Analyzing First Industrial Realty Trust, Inc. (FR)’s debt levels involves looking at both short-term and long-term obligations. Short-term debt includes liabilities due within a year, while long-term debt covers obligations extending beyond a year. Monitoring these levels helps assess the company’s immediate and future financial commitments.

• Overview of Debt Levels: As of December 31, 2024, First Industrial Realty Trust, Inc. (FR) reported total debt of approximately $2.7 billion. This includes both secured and unsecured debt, with a weighted average term to maturity of about 6.3 years.
• Long-Term Debt: The majority of First Industrial Realty Trust, Inc. (FR)’s debt is long-term, providing financial stability. In 2024, long-term debt accounted for roughly $2.5 billion of the total debt.
• Short-Term Debt: A smaller portion of First Industrial Realty Trust, Inc. (FR)’s debt is short-term, covering immediate liabilities. As of 2024, short-term debt was approximately $200 million.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A high ratio suggests greater reliance on debt, which can increase financial risk, while a lower ratio indicates a more conservative approach.

• Debt-to-Equity Ratio: First Industrial Realty Trust, Inc. (FR)’s debt-to-equity ratio as of 2024 is approximately 0.85.
• Industry Comparison: This ratio is relatively in line with the industry average for REITs, which typically carry higher debt levels due to the capital-intensive nature of real estate investments. Many REITs operate with debt-to-equity ratios between 0.7 and 1.2.

Recent financing activities, such as debt issuances and refinancing, can significantly impact a company's financial health. These activities can provide additional capital for growth or help optimize the company's debt structure.

• Recent Debt Activities: In 2024, First Industrial Realty Trust, Inc. (FR) issued $400 million in senior unsecured notes at an interest rate of 3.25%, maturing in 2031. These funds were primarily used to refinance existing debt and fund development projects.
• Credit Ratings: First Industrial Realty Trust, Inc. (FR) maintains a credit rating of Baa1 from Moody's and BBB+ from S&P Global Ratings, reflecting its strong financial position and stable outlook.

Balancing debt and equity is crucial for sustainable growth. While debt can provide leverage and enhance returns, excessive debt can increase financial risk. Equity financing, on the other hand, reduces financial risk but can dilute existing shareholders' ownership.

• Debt Financing: First Industrial Realty Trust, Inc. (FR) strategically uses debt to finance its acquisitions and development projects, taking advantage of low interest rates to enhance profitability.
• Equity Funding: The company also utilizes equity financing through methods such as issuing common stock. In 2024, First Industrial Realty Trust, Inc. (FR) did not issue any new common stock, focusing instead on debt financing and internally generated funds.

Understanding how First Industrial Realty Trust, Inc. (FR) manages its debt and equity provides valuable insights into its financial strategy and risk profile. The company’s approach to balancing these financial instruments plays a key role in its ability to sustain growth and deliver value to investors. You might be also interested in Exploring First Industrial Realty Trust, Inc. (FR) Investor Profile: Who’s Buying and Why?

First Industrial Realty Trust, Inc. (FR) Liquidity and Solvency

Understanding First Industrial Realty Trust, Inc. (FR)'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. Key metrics like current and quick ratios, working capital trends, and cash flow statements provide insights into these areas.

Assessing First Industrial Realty Trust, Inc. (FR)'s Liquidity:

To gauge First Industrial Realty Trust, Inc. (FR)'s liquidity, several key metrics are considered:

• Current Ratio: The current ratio measures a company's ability to pay off its short-term liabilities with its current assets.
• Quick Ratio: The quick ratio is similar to the current ratio but excludes inventories, providing a more conservative measure of liquidity.
• Working Capital: Monitoring the trend in working capital (current assets minus current liabilities) helps to identify potential liquidity issues.

Cash Flow Statements Overview:

Analyzing the cash flow statement provides a deeper understanding of First Industrial Realty Trust, Inc. (FR)'s liquidity position. The cash flow statement is divided into three main sections:

• Operating Activities: Cash flow from operating activities indicates the cash generated from the company's core business operations. A positive trend suggests strong liquidity.
• Investing Activities: This section includes cash flow from the purchase and sale of long-term assets. Significant investments may indicate future growth but could also strain short-term liquidity.
• Financing Activities: Cash flow from financing activities includes transactions related to debt, equity, and dividends. Monitoring these activities helps assess the company's ability to raise capital and manage its debt obligations.

Potential Liquidity Concerns or Strengths:

Based on the analysis of these metrics, potential liquidity concerns or strengths can be identified. For instance, a declining current ratio or negative operating cash flow may indicate liquidity issues, while a strong cash position and positive working capital trend suggest financial stability.

For additional insights into First Industrial Realty Trust, Inc. (FR)'s values, review Mission Statement, Vision, & Core Values of First Industrial Realty Trust, Inc. (FR).

First Industrial Realty Trust, Inc. (FR) Valuation Analysis

Assessing whether First Industrial Realty Trust, Inc. (FR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and expert opinions.

To determine if First Industrial Realty Trust, Inc. (FR) is overvalued or undervalued, consider the following factors:

• Price-to-earnings (P/E) Ratio: The P/E ratio measures the company's stock price relative to its earnings per share (EPS). A high P/E ratio could indicate that the stock is overvalued, while a low P/E ratio might suggest it is undervalued compared to industry peers.
• Price-to-book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio may indicate undervaluation, while a higher ratio could suggest overvaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially for companies with significant debt.

Analyzing First Industrial Realty Trust, Inc. (FR)'s stock price trends over the past year, or longer, can provide insights into market sentiment and investor confidence. Here's what to consider:

• Historical Stock Performance: Review the stock's price movement over the last 12 months, noting any significant peaks and troughs. This helps to understand its volatility and overall trend.
• Comparison with Benchmarks: Compare First Industrial Realty Trust, Inc. (FR)'s stock performance against relevant market indices (e.g., S&P 500) and industry-specific benchmarks to gauge its relative performance.

If applicable, dividend yield and payout ratios offer additional insights into valuation:

• Dividend Yield: Calculate the annual dividend payment as a percentage of the current stock price. A higher dividend yield can make the stock more attractive to income-seeking investors.
• Payout Ratio: Determine the proportion of earnings paid out as dividends. A sustainable payout ratio indicates the company's ability to maintain its dividend payments.

Here's how to interpret analyst consensus:

• Consensus Ratings: Track analyst ratings (buy, hold, or sell) and price targets from various investment firms. A consensus 'buy' rating suggests optimism about the stock's potential, while a 'sell' rating indicates pessimism.
• Price Targets: Compare the average analyst price target to the current stock price to assess the potential upside or downside.

These factors, when analyzed together, can provide a comprehensive view of whether First Industrial Realty Trust, Inc. (FR) is currently overvalued, undervalued, or fairly valued in the market.

For more insights into the investors of First Industrial Realty Trust, Inc. (FR), check out: Exploring First Industrial Realty Trust, Inc. (FR) Investor Profile: Who’s Buying and Why?

First Industrial Realty Trust, Inc. (FR) Risk Factors

Navigating the financial landscape of First Industrial Realty Trust, Inc. (FR) requires a clear understanding of the various risk factors that could impact its performance. These risks span both internal and external elements, ranging from industry competition to broader market conditions.

Overview of Internal and External Risks:

First Industrial Realty Trust, Inc. (FR) operates within a competitive industry, facing risks from various sources:

• Industry Competition: The company faces competition from other industrial property owners and developers, which could impact occupancy rates and rental income.
• Regulatory Changes: Changes in zoning laws, environmental regulations, or tax policies could increase operating costs or limit development opportunities.
• Market Conditions: Economic downturns, changes in interest rates, or shifts in demand for industrial space could negatively affect property values and rental income.

Discussion of Operational, Financial, or Strategic Risks:

An analysis of recent earnings reports and filings reveals several key risks:

• Tenant Creditworthiness: The risk of tenant defaults or bankruptcies could lead to decreased rental income and increased vacancy rates.
• Interest Rate Fluctuations: Rising interest rates could increase borrowing costs, impacting profitability and potentially limiting investment capacity.
• Development and Redevelopment Risks: Development and redevelopment projects are subject to various risks, including cost overruns, delays, and lower-than-expected returns.

Mitigation Strategies or Plans:

First Industrial Realty Trust, Inc. (FR) employs several strategies to mitigate these risks:

• Diversification: Diversifying its portfolio across different geographic locations and industries can reduce the impact of localized economic downturns or industry-specific challenges.
• Proactive Leasing: Maintaining strong relationships with tenants and actively managing lease renewals can help sustain high occupancy rates.
• Prudent Financial Management: Employing conservative financing strategies and hedging against interest rate fluctuations can help manage financial risks.

Understanding these risks and mitigation strategies is crucial for investors seeking to assess the financial health and long-term prospects of First Industrial Realty Trust, Inc. (FR). For more in-depth analysis, visit: Breaking Down First Industrial Realty Trust, Inc. (FR) Financial Health: Key Insights for Investors

First Industrial Realty Trust, Inc. (FR) Growth Opportunities

For First Industrial Realty Trust, Inc. (FR), several factors point toward potential future growth. These encompass strategic initiatives, market dynamics, and the company's established competitive advantages.

Key growth drivers for First Industrial Realty Trust, Inc. (FR) include:

• Market Expansion: Focusing on key industrial markets with high barriers to entry.
• Strategic Acquisitions: Targeting properties that enhance the portfolio's overall quality and growth potential.
• Development and Redevelopment: Developing new properties and redeveloping existing ones to meet modern tenant demands.
• Tenant Relationships: Leveraging strong relationships with existing tenants to drive leasing and renewal activity.

While specific future revenue growth projections and earnings estimates for First Industrial Realty Trust, Inc. (FR) beyond 2024 are subject to market conditions and company performance, analysts' estimates provide insight. For example, projections often consider factors like rental rate growth, occupancy levels, and development yields. These estimates are regularly updated based on the company's financial results and broader economic forecasts.

Strategic initiatives that may drive future growth for First Industrial Realty Trust, Inc. (FR) include:

• Sustainability Initiatives: Implementing sustainable building practices to attract tenants focused on environmental responsibility.
• Technology Adoption: Utilizing technology to improve property management efficiency and enhance tenant experience.
• Capital Recycling: Selling non-core assets to reinvest in higher-growth opportunities.

First Industrial Realty Trust, Inc.'s competitive advantages that position the company for growth are:

• Portfolio Quality: Owning and operating a high-quality portfolio of industrial properties in desirable locations.
• Financial Strength: Maintaining a strong balance sheet with access to capital for acquisitions and development.
• Experienced Management Team: Having a proven management team with expertise in industrial real estate.

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