NYSE:FR
FIRST INDUSTRIAL REALTY TRUST INC
A leading owner of industrial real estate assets serving the logistics and e-commerce markets with a focus on high-quality warehouse properties.
Key Metrics
Investment Thesis
Bull Case
Investors may buy FR for its exposure to the resilient industrial real estate sector driven by e-commerce growth and supply chain optimization. The company's consistent ability to generate substantial operating cash flow supports a reliable dividend yield attractive in lower-rate environments. A well-maintained asset portfolio with long-term leases provides downside protection against market volatility.
Bear Case
The decline in net income over the last two years suggests potential margin compression or increased operational inefficiencies that warrant scrutiny. High levels of debt and significant cash outflows for investing activities could strain liquidity if refinancing conditions deteriorate. Exposure to a cyclical industry means the stock could underperform during broader economic downturns affecting logistics demand.
About FIRST INDUSTRIAL REALTY TRUST INC
FIRST INDUSTRIAL REALTY TRUST INC (FR) is a real estate investment trust focused on owning and operating industrial properties across North America. The company generates revenue primarily through leasing warehouse and distribution facilities to tenants in the logistics, e-commerce, and supply chain sectors. FR provides stable cash flow through long-term leases while investing in infrastructure that supports growing third-party logistics demand.
Analysis
Management Discussion
Revenue increased from $614M in 2023 to $727.1M in 2025, reflecting successful leasing activity and portfolio growth. However, net income declined slightly from $296M in 2024 to $264.1M in 2025, likely due to higher operating expenses or one-time costs despite strong gross profit margins. Cash flow from operations remains robust at $461.3M, supporting dividend payments of $231.2M and significant investing outflows for acquisitions.
Industry Overview
The industrial real estate sector is currently experiencing strong demand due to the continued expansion of e-commerce and the need for efficient distribution networks. Investors are increasingly attracted to REITs that offer direct exposure to this infrastructure-heavy asset class without the complexities of property management. However, rising construction costs and interest rates present headwinds for new development projects within this sector.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $539.9M | $614.0M | $669.6M | $727.1M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $539.9M | $614.0M | $669.6M | $727.1M |
| Operating Expenses | $249.9M | $351.7M | $371.9M | $482.4M |
| Operating Income | $290.0M | $262.3M | $297.8M | $244.7M |
| G&A | $34.0M | $37.1M | $40.9M | $41.9M |
| Stock-Based Comp | $15.7M | $16.7M | $20.1M | $20.3M |
| D&A | $147.4M | $163.0M | $171.9M | $185.3M |
| Depreciation | $119.5M | $130.4M | $139.2M | $148.9M |
| Other OpEx | $215.9M | $314.6M | $330.9M | $440.4M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $290.0M | $262.3M | $297.8M | $244.7M |
| Income Tax | $23.4M | $8.7M | $6.1M | $15.3M |
| Continuing Ops | $266.7M | $253.6M | $291.7M | $229.4M |
| Discontinued Ops | $114.9M | $32.2M | $4.3M | $34.7M |
| Net Income | $381.6M | $285.8M | $296.0M | $264.1M |
| Minority Interest | $22.5M | $11.0M | $8.4M | $16.6M |
| Net to Common | $359.1M | $274.8M | $287.6M | $247.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $133.2M | $43.8M | $44.5M | $78.0M |
| Operating Leases | $24.6M | $24.2M | $19.9M | $19.6M |
| Total Assets | $4.95B | $5.18B | $5.26B | $5.69B |
| Total Liabilities | $2.42B | $2.54B | $2.52B | $2.93B |
| Shareholders' Equity | $2.53B | $2.64B | $2.75B | $2.76B |
| Paid-In Capital | $2.40B | $2.41B | $2.43B | $2.44B |
| Retained Earnings | $23.1M | $127.7M | $219.1M | $230.7M |
| AOCI | $33.4M | $22.3M | $19.9M | $3.2M |
| Total L&E | $4.95B | $5.18B | $5.26B | $5.69B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $381.6M | $285.8M | $296.0M | $264.1M |
| Non-Cash Adjustments | $-6.8M | $21.0M | $44.4M | $156.9M |
| Working Capital Changes | $36.2M | $-2.1M | $12.1M | $40.3M |
| Cash from Operations | $410.9M | $304.8M | $352.5M | $461.3M |
| Cash from Investing | $-629.1M | $-378.3M | $-131.6M | $-524.2M |
| Dividends Paid | $155.3M | $169.4M | $193.5M | $231.2M |
| Cash from Financing | $304.5M | $-27.8M | $-213.0M | $89.3M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $86.3M | $-101.3M | $7.8M | $26.4M |
| Beginning Cash | $58.8M | $145.1M | $43.8M | $51.7M |
| Ending Cash | $145.1M | $43.8M | $51.7M | $78.0M |
Frequently Asked Questions
How does FIRST INDUSTRIAL REALTY TRUST INC make money?
The company's revenue is derived principally from rental income generated by its portfolio of industrial warehouses and distribution centers. Additional segments include property management fees, lease termination costs, and gains or losses on property sales. The business operates across key U.S. markets, leveraging its scale to attract major national tenants in the supply chain industry.
What are the main risks for FR?
Interest rate fluctuations can impact borrowing costs and the valuation of fixed-rate debt within FR's substantial leverage structure. Rising vacancy rates in specific industrial sub-markets could pressure rental growth and cash flow stability. Regulatory changes related to real estate taxes or zoning laws may affect operating expenses and development timelines. Economic slowdowns reducing consumer demand could lead to tenant bankruptcies or lease renewals at lower rates.
What is FR's competitive advantage?
FR benefits from a diversified portfolio of high-quality industrial assets located near major transportation hubs and population centers. The company possesses strong tenant relationships with leading e-commerce and logistics providers, ensuring stable occupancy rates. Its experienced management team actively manages capital allocation through opportunistic acquisitions and strategic property improvements.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.