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Earnings analysis · 10-Q

FR earnings analysis

Filed October 22, 2026 · Our reading of the company's report

The latest report

First Industrial delivered solid operating growth in Q3, with revenue up 8.6%, same-store cash NOI up 5.6%, and strong leasing activity supported by 40.5% average cash-rent growth on new and renewal leases. However,…

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First Industrial delivered solid operating growth in Q3, with revenue up 8.6%, same-store cash NOI up 5.6%, and strong leasing activity supported by 40.5% average cash-rent growth on new and renewal leases. However, occupancy remained below the prior year and higher debt balances and interest rates pressured earnings and operating cash flow; reported EPS/FFO of $0.81 was slightly below the $0.82 estimate. Liquidity was adequate at September 30, 2026, but the company faces $131.1 million of note maturities in April and May 2027 and expects to refinance them.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $26 Operating expenses $30 Left as operating profit $44

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Same-store properties 95.9% Acquired properties 3.3% Other 0.8%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$0.81

What stood out

  • Revenue grew 8.6% year over year

    Third-quarter revenue was $197.115 million, up 8.6% from $181.430 million a year earlier. Gross margin was approximately 74.5%, versus 74.5% in the prior-year quarter, while operating margin was approximately 44.2%, versus 44.5%.

  • Leasing drove same-store NOI growth

    Same-store cash NOI increased 5.6% to $135.025 million from $127.917 million, and nine-month same-store cash NOI rose 7.0% to $403.045 million. Management attributed growth primarily to higher rental rates and tenant recoveries.

  • Strong leasing and rent growth

    Nine-month cash rental rates on new and renewal leases increased 40.5% on average, while 7.381 million square feet of leases commenced. Quarter-end in-service occupancy was 94.1%.

  • Acquisitions and developments contributed

    Acquired-property revenue increased 158.9% to $6.306 million in the quarter, while (re)development revenue rose 465.5% to $6.746 million, reflecting the six acquired properties and increased occupancy in completed developments.

  • Net income and FFO improved

    Nine-month net income increased to $288.1 million from $177.1 million, helped by $125.6 million of real-estate sale gains versus $17.5 million a year earlier. Nine-month FFO increased to $305.3 million from $290.5 million.

  • Liquidity remained substantial

    Operating cash flow was $318.891 million for the nine months, while investing cash use was $234.654 million. The company had $42.4 million of cash and $648.4 million of available revolver capacity at September 30, 2026.

What to watch

  • Occupancy remains a headwind

    Same-store average daily occupancy declined to 94.5% in the quarter from 94.7% a year earlier and was 94.4% for the nine months versus 95.0% in 2025. Lower occupancy could offset rental-rate growth.

  • Higher debt and interest expense

    Nine-month interest expense increased 16.1% to $73.6 million, driven by weighted-average debt of $2,591.8 million versus $2,368.8 million and an average interest rate of 4.22% versus 4.08%.

  • Refinancing and rate exposure

    The company has $125.0 million of private-placement notes maturing in April 2027 and $6.1 million of public notes maturing in May 2027. Management expects to refinance these obligations, but access and cost depend on market conditions; variable-rate debt also increased to $273.0 million, or 10.3% of total debt, from $183.0 million, or 7.1%.

  • Operating cash flow declined

    Operating cash flow declined to $318.891 million from $339.228 million year over year, primarily due to $22.8 million less in joint-venture distributions and $10.2 million of additional interest expense.

  • No formal risk-factor changes

    The 10-Q states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Current-period disclosures nevertheless identify $5.6 million of proxy-campaign advisory, legal and consulting costs incurred during the nine months.

Management's outlook

The 10-Q does not provide new quantitative revenue or EPS guidance. Management states it expects to fund $131.1 million of public and private note maturities due in April and May 2027 through the $850.0 million unsecured credit facility or other indebtedness, and expects to meet longer-term liquidity needs through asset dispositions, debt and equity issuance subject to market conditions.

Earlier filings 1

10-Q · April 24, 2026

First Industrial reported strong Q1 operating performance with total revenues of $194.827 million, up $17.753 million or 10.0% versus $177.074 million in Q1 2025, and net income of $147.9 million (Q1 2025: $52.9…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.