First Industrial Realty Trust (NYSE: FR) reported its fourth quarter and full year 2025 results, with growth in funds from operations (FFO) and continued improvement in cash rental rates, the company said on Thursday.
Quarterly and Full-Year Financial Highlights
For the quarter ended December 31, 2025, First Industrial’s diluted net income available to common stockholders was $0.59 per share, compared with $0.52 per share in the year-ago quarter. Full-year 2025 diluted earnings per share were $1.87, down from prior year levels.
Funds from operations, a key metric for real estate investment trusts, improved. FFO for Q4 2025 was $0.77 per share/unit on a diluted basis, compared to $0.71 per share/unit in the fourth quarter of 2024. Full-year 2025 FFO rose to $2.96 per share/unit, up from $2.65 in 2024, representing an 11.7% growth rate.
Operational Performance and Leasing Activity
The company reported in-service occupancy of 94.4% at the end of Q4 2025, slightly above the third quarter level but lower than year-ago occupancy. First Industrial highlighted improvements in cash rental rates on commenced leasing activity. In the quarter, cash rental rates on new and renewal leases rose 35% year-over-year, contributing to stronger rental income trends. For the full year, cash rental rates increased approximately 32%, and 37% excluding a large fixed-rate renewal, indicating firm pricing power in its logistics real estate portfolio.
Cash basis same-store net operating income (SS NOI) — a key measure of underlying property performance — also grew. SS NOI increased 3.7% in the fourth quarter and 7.1% for the full year, reflecting contributions from higher contractual rents and leasing activity.
Portfolio and Development Activity
During the fourth quarter, First Industrial acquired the last remaining building in its Camelback 303 joint venture in Phoenix, adding 968,000 square feet of fully leased industrial space with a purchase price of approximately $125 million. The company also signed 447,000 square feet of new leases for development projects in Q4, with additional development leasing following the third quarter earnings call.
The company has also initiated new development projects in early 2026, including properties in Miami and Dallas, with estimated total investments of about $70 million. In addition, refinancing and capital transactions completed in early 2026 include $425 million and $375 million in unsecured term loans to support balance sheet strength and growth initiatives.
Dividend and Outlook
First Industrial increased its dividend rate by approximately 12.4%, reflecting confidence in its cash flow generation and long-term strategy. The company also provided 2026 FFO guidance, with a range of $3.09 to $3.19 per share/unit, implying moderate growth at the midpoint over 2025 results.
Industry and Market Context
First Industrial operates as a fully integrated owner, operator and developer of logistics properties across the United States. Its portfolio spans multi-market industrial facilities catering to a broad range of tenant industries. The industrial real estate sector has generally benefited from e-commerce growth, supply chain reconfiguration and limited logistics space availability in key markets.
Summary
First Industrial reported improved FFO and gains in rental rate metrics for both the fourth quarter and full year 2025. While occupancy remained below prior peak levels, strong pricing trends and enhanced same-store performance supported year-over-year growth in key operating results. The dividend increase and forward guidance suggest confidence in continued momentum through 2026.