First Industrial Realty Trust Reports $296M Net Income and 9.1% Revenue Growth for Fiscal Year 2024

First Industrial Realty Trust, Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with net income reaching $296.0 million, a slight increase from $285.8 million in 2023. Total revenues rose by 9.1% to $669.6 million, driven by a 5.4% increase in same-store revenues, which amounted to $594.5 million. The company also noted a significant 50.8% increase in cash rental rates on new and renewal leases, while same-store performance on a cash basis rose by 8.4%. The in-service occupancy rate improved to 96.2%, reflecting a 70-basis-point increase compared to the previous year.

In terms of strategic developments, First Industrial Realty Trust made notable acquisitions and property transactions during 2024. The company acquired five industrial properties totaling approximately 0.3 million square feet for $44.8 million and approximately 81 acres of land for $25.9 million. Additionally, the company placed seven development properties into service, totaling about 2.8 million square feet, at an estimated cost of $392.0 million. The company also sold 22 industrial properties, generating gross proceeds of approximately $162.8 million.

Operationally, First Industrial Realty Trust's portfolio consisted of 412 in-service properties across 19 states, encompassing approximately 66.7 million square feet of gross leasable area. The company reported a diverse tenant base of around 900 businesses, with no single tenant accounting for more than 6.5% of rental revenues. The average annual base rent per square foot for the in-service portfolio was $7.89. The company also maintained a healthy employee count of 151, with an average tenure of approximately 12 years.

Looking ahead, First Industrial Realty Trust expressed optimism regarding its growth trajectory. The company anticipates higher average net rental rates for renewal leases in 2025 compared to expiring rates, driven by low vacancy levels and market rent growth. The company is also focused on its long-term growth plans, which include internal growth through lease renewals and external growth via property acquisitions and developments in key logistics markets, particularly coastal areas. However, the company acknowledged potential risks, including economic conditions, interest rate fluctuations, and competition in the real estate market, which could impact its operations and financial performance.