First Industrial raises FFO guidance as cash rents on new leases jump 52%

First Industrial Realty Trust lifted its full-year outlook after signing leases at sharply higher rents in the third quarter, as the logistics landlord said industrial real estate fundamentals kept improving.

Funds from operations rose to 81 cents a share from 76 cents a year earlier, according to the earnings release the REIT filed with an 8-K on Wednesday. Net income available to common shareholders was 44 cents a share, down from 49 cents.

Cash rental rates on new and renewal leases that commenced in the quarter rose 52%, and cash same-store net operating income grew 5.6%.

"Industrial real estate market fundamentals continued to improve in the third quarter, with strong net absorption reflecting the breadth of tenant demand in the marketplace," President and CEO Peter Baccile said in the release.

Occupancy and leasing

In-service occupancy was 94.1% at quarter-end, down from 94.9% at the end of June and up from 94.0% a year earlier. The company said it has locked in cash rent increases of about 38% on leases commencing in 2026 and about 16% on 2027 leases signed so far, covering 45% of 2027 expirations by square footage.

During the quarter, First Industrial bought a fully leased 764,000-square-foot building in Central Pennsylvania for $120 million and a 32-acre Dallas land site for $13 million.

Guidance

The REIT raised its 2026 NAREIT FFO guidance by a penny at the midpoint to $3.11 to $3.15 a share, or $3.15 to $3.19 before advisory costs tied to a contested proxy campaign. It raised the midpoint of its cash same-store NOI growth guidance by 0.75 point to 6.5%.

By the numbers

• FFO per share: $0.81, vs. $0.76
• EPS: $0.44, vs. $0.49
• Cash rent change on leases: up 52%
• Cash same-store NOI: up 5.6%
• 2026 NAREIT FFO guidance: $3.11 to $3.15

Sources

1. First Industrial Realty Trust, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0000921825-26-000073

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