First Industrial Realty Trust (FR) Citi’s 30th Annual Global Property CEO Conference 2025 summary

2024 performance and leasing highlights

• Achieved 4.7 million sq ft of development leases in 2024, surpassing initial guidance and marking the second highest volume since 2012 relaunch.

• Leasing was broad-based, covering 10 of 15 target markets, including major signings in California.

• In-service occupancy reached 96.2%, up 70 basis points from prior year-end.

• Cash same-store growth was 8.1%, with a 51% increase in cash rental rates on new and renewal leases.

• 2025 started strong, with 59% of lease expirations addressed and signed leases showing a 33% cash rental rate increase.

Forward-looking growth and development plans

• 2025 cash rental rate increases expected at 30%-40% overall, and 35%-45% excluding a major Central PA renewal.

• FFO growth projected at approximately 10% for 2025, building on 8.6% growth in 2024.

• Speculative development remains the primary growth vehicle, with disciplined risk management.

• Recent project starts include a $96 million investment in Nashville and a two-building project in Lehigh Valley.

• Land holdings can support 15 million sq ft of future development, valued at $810 million or 1.7x book.

Market conditions and leasing environment

• Leasing traffic has increased post-election, with more prospects per property and shrinking tenant alternatives.

• Decision-makers are more confident in current interest rates and are moving off the sidelines to secure space.

• Tariffs have not yet impacted leasing discussions, though certain industries like autos and furniture could be affected if tariffs persist.

• Market rent growth is expected to be modest nationally, with some markets like Nashville and Dallas outperforming.

• Western markets, especially SoCal, have seen rents fall after sharp rises, while eastern markets remain stable.