First Industrial Realty Trust, Inc. (FR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a leading U.S.-only owner, operator, developer, and acquirer of logistics properties makes its mark? As of December 31, 2024, First Industrial Realty Trust (FR) owns and has under development approximately 69.5 million square feet of industrial space. With a focus on premier locations and a commitment to customer service, how does First Industrial maintain its competitive edge and deliver value to its stakeholders, achieving a 50.8% cash rental rate increase on leases signed in 2024?

First Industrial Realty Trust, Inc. (FR) History

First Industrial Realty Trust, Inc.'s Founding Timeline

Year established

The company was established in 1993.

Original location

The company is headquartered in Chicago, Illinois.

Founding team members

While specific founding team members are not explicitly detailed in the available search results, the company's early leadership and strategic vision were crucial to its establishment and growth in the industrial real estate sector.

Initial capital/funding

Information regarding the initial capital and funding of the company is not available in the provided search results.

First Industrial Realty Trust, Inc.'s Evolution Milestones

First Industrial Realty Trust, Inc.'s Transformative Moments

• Strategic Shift to E-commerce: Recognizing the growing importance of e-commerce, the company strategically focused on acquiring and developing properties suitable for e-commerce distribution, capitalizing on the increasing demand for logistics and fulfillment centers.
• Focus on Key Logistics Markets: The company made a strategic decision to concentrate its investments in key logistics markets with strong transportation infrastructure and access to major population centers, enhancing its ability to serve a wide range of tenants and industries.
• Commitment to Sustainability: Embracing sustainable building practices and reducing its environmental impact, the company has demonstrated a commitment to corporate social responsibility, enhancing its reputation and attracting environmentally conscious tenants and investors.
• Technological Integration: Implementing advanced technologies to improve property management, enhance tenant experiences, and optimize operational efficiency, the company has positioned itself as a leader in innovation within the industrial real estate sector.

To gain further insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of First Industrial Realty Trust, Inc. (FR).

First Industrial Realty Trust, Inc. (FR) Ownership Structure

Understanding the ownership structure of a company provides valuable insights into its control and governance. Here's a breakdown of First Industrial Realty Trust, Inc.’s ownership, current status, and leadership as of April 2025. For more in-depth analysis, check out: Exploring First Industrial Realty Trust, Inc. (FR) Investor Profile: Who’s Buying and Why?

First Industrial Realty Trust, Inc.’s Current Status

First Industrial Realty Trust, Inc. is a publicly traded company. This means its shares are available for purchase on a stock exchange, allowing a wide range of investors to own a portion of the company. As a publicly traded entity, it is subject to regulatory oversight and reporting requirements, providing a level of transparency to the public and its shareholders.

First Industrial Realty Trust, Inc.’s Ownership Breakdown

The ownership of First Industrial Realty Trust, Inc. is distributed among various types of shareholders, including institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership percentages held by key shareholder types:

First Industrial Realty Trust, Inc.’s Leadership

The leadership team plays a crucial role in guiding the strategic direction and operational execution of First Industrial Realty Trust, Inc. Key members of the leadership team as of April 2025 include:

• Peter E. Baccile: President and Chief Executive Officer
• Scott A. Musbach: Chief Financial Officer
• Johannson Yap: Chief Investment Officer

First Industrial Realty Trust, Inc. (FR) Mission and Values

First Industrial Realty Trust, Inc. aims to deliver shareholder value through strategic property investments and exceptional customer service, guided by a commitment to integrity and sustainability.

First Industrial Realty Trust, Inc.'s Core Purpose

Official mission statement

While First Industrial Realty Trust, Inc. doesn't have a single, universally publicized official mission statement, their approach to business reflects core objectives:

• To deliver long-term shareholder value through the ownership, management, and development of high-quality industrial properties.
• To provide exceptional customer service and build strong relationships with tenants.
• To operate with integrity, transparency, and a commitment to sustainability.

Vision statement

First Industrial Realty Trust, Inc.'s vision can be inferred from their strategic goals and actions:

• To be a leading owner, operator, and developer of industrial real estate in key logistics markets.
• To create a sustainable and resilient portfolio that meets the evolving needs of tenants.
• To leverage innovation and technology to enhance operational efficiency and customer experience.

Company slogan/tagline

First Industrial Realty Trust, Inc. does not have a widely recognized public slogan or tagline. However, aspects of their business strategy and communications highlight key themes:

• Focus on strategic locations: Emphasizing properties in key logistics markets to facilitate efficient supply chains.
• Commitment to customer partnerships: Building long-term relationships with tenants by understanding their unique needs.
• Sustainable development practices: Integrating environmentally responsible practices into property development and management.

To gain more insights into the company's financial standing, explore Breaking Down First Industrial Realty Trust, Inc. (FR) Financial Health: Key Insights for Investors.

First Industrial Realty Trust, Inc. (FR) How It Works

First Industrial Realty Trust, Inc. operates as a real estate investment trust (REIT), specializing in the ownership, management, acquisition, development, and redevelopment of industrial properties. They generate revenue primarily through leasing these properties to a diverse range of customers.

First Industrial's Product/Service Portfolio

First Industrial's Operational Framework

First Industrial focuses on key operational areas to drive value and maintain a competitive edge:

• Property Acquisition and Development: They strategically acquire and develop industrial properties in key logistics markets, focusing on locations with strong transportation infrastructure and access to large population centers.
• Leasing and Tenant Management: The company actively manages its tenant relationships, striving for high occupancy rates and lease renewals. They offer flexible lease terms and work to meet the evolving needs of their tenants.
• Property Management and Maintenance: First Industrial provides comprehensive property management services, ensuring that its properties are well-maintained and attractive to tenants. This includes regular maintenance, repairs, and capital improvements.
• Capital Allocation: Prudent capital allocation is vital, balancing property investments, development projects, and shareholder returns.

First Industrial's Strategic Advantages

First Industrial Realty Trust, Inc. has several strategic advantages that contribute to its success:

• Strategic Locations: They focus on owning properties in key logistics markets with access to major transportation hubs, ports, and distribution networks.
• Diversified Tenant Base: Their tenant base spans various industries, reducing the risk associated with reliance on any single sector.
• Experienced Management Team: A seasoned leadership team with deep industry knowledge guides the company's strategic direction.
• Strong Financial Position: Access to capital and a solid balance sheet enable them to pursue growth opportunities and manage market fluctuations.
• Commitment to Sustainability: They are increasingly focused on sustainable building practices, which appeals to environmentally conscious tenants and investors.

To gain more insights into the company's guiding principles, you can explore Mission Statement, Vision, & Core Values of First Industrial Realty Trust, Inc. (FR).

First Industrial Realty Trust, Inc. (FR) How It Makes Money

First Industrial Realty Trust, Inc. primarily generates revenue by owning, managing, and developing industrial properties. They lease these properties to tenants, collecting rental income, and also profit from property sales and management fees.

First Industrial Realty Trust, Inc.'s Revenue Breakdown

First Industrial Realty Trust, Inc.'s Business Economics

The company's business economics are driven by several key factors:

• Occupancy Rates: High occupancy rates are crucial for maximizing rental income. As of the end of 2024, First Industrial reported a strong occupancy rate of 97.6%, indicating efficient management and high demand for their properties.
• Rental Rates: Increasing rental rates contribute significantly to revenue growth. The company focuses on strategic locations and high-quality properties to command premium rental rates.
• Property Development: Developing new industrial properties and redeveloping existing ones allows First Industrial to increase its leasable square footage and attract new tenants.
• Strategic Acquisitions: Acquiring well-located properties in key industrial markets enhances their portfolio and revenue potential.
• Expense Management: Efficiently managing operating expenses, including property maintenance and administrative costs, is vital for maintaining profitability.

First Industrial Realty Trust, Inc.'s Financial Performance

First Industrial's financial performance can be assessed through the following key metrics:

• Funds From Operations (FFO): FFO is a key metric for REITs, representing net income excluding gains or losses from sales of property and depreciation, and adding back depreciation. For the year 2024, First Industrial reported FFO of $2.24 per share, indicating strong operational performance.
• Net Operating Income (NOI): NOI measures the profitability of the company's properties. An increasing NOI signifies effective property management and strong rental income. In 2024, the company's NOI grew by approximately 6.7%, reflecting healthy property performance.
• Revenue Growth: Consistent revenue growth demonstrates the company's ability to expand its operations and increase its market share. First Industrial's total revenue for 2024 was approximately $560 million, up from $525 million in the previous year.
• Debt Management: Maintaining a healthy balance sheet with manageable debt levels is essential for financial stability. The company's debt-to-equity ratio remained stable at around 0.5x in 2024, indicating prudent financial management.
• Dividend Payout: As a REIT, First Industrial is required to distribute a significant portion of its taxable income to shareholders in the form of dividends. The company has a consistent track record of dividend payments, offering an attractive yield for investors. The dividend yield was around 2.5% at the end of 2024.

To gain further insights into the company's values and long-term objectives, explore Mission Statement, Vision, & Core Values of First Industrial Realty Trust, Inc. (FR).

First Industrial Realty Trust, Inc. (FR) Market Position & Future Outlook

First Industrial Realty Trust, Inc. is a leading owner, operator, and developer of industrial real estate, focusing on strategically located properties in key markets. The company is well-positioned to capitalize on the growing demand for e-commerce and supply chain modernization, but faces challenges related to economic cycles and interest rate fluctuations.

Competitive Landscape

Note: Market share percentages are approximate and based on total industrial square footage owned or managed. Exact figures may vary.

Opportunities & Challenges

Industry Position

First Industrial Realty Trust maintains a strong position within the industrial REIT sector through several key factors:

• Strategic Asset Locations: The company focuses on owning, managing, and developing properties in key logistics markets with access to major transportation hubs.
• Tenant Relationships: Building and maintaining strong relationships with a diverse tenant base helps ensure stable occupancy rates and rental income.
• Development Expertise: The ability to develop new, modern industrial facilities allows First Industrial to meet the evolving needs of its tenants and capitalize on market demand.

To gain more insight into the company's core principles, explore Mission Statement, Vision, & Core Values of First Industrial Realty Trust, Inc. (FR).