First Industrial Realty Trust Acquires $125M Phoenix Industrial Building, Reports 11.7% FFO Growth in 2025

First Industrial Realty Trust acquired a fully leased 968,000-square-foot industrial building in Phoenix for $125 million during the fourth quarter of 2025, completing its acquisition of assets from the Camelback 303 joint venture. The company announced the transaction alongside its fourth quarter and full year 2025 financial results on February 4, 2026.

The acquisition represents the last remaining building from First Industrial's Camelback 303 joint venture. The 100% leased property adds to the company's Phoenix industrial portfolio.

Strong Financial Performance in 2025

First Industrial Realty Trust reported full-year 2025 NAREIT funds from operations of $2.96 per share/unit on a diluted basis, compared to $2.65 in 2024, representing growth of 11.7%. Fourth quarter FFO reached $0.77 per share/unit, up from $0.71 in the prior year period.

The company's diluted net income available to common stockholders per share was $0.59 in the fourth quarter, compared to $0.52 a year earlier. Full year 2025 EPS totaled $1.87, compared to $2.17 in 2024.

"Despite a volatile leasing market in 2025 impacted by the evolving tariff policies and other uncertainties, our First Industrial team maintained its keen focus on delivering strong growth in FFO, cash rental rates and cash same store NOI," said Peter E. Baccile, First Industrial's president and chief executive officer. "On the strength of the performance of our platform and our outlook, we increased our dividend rate by 12.4%."

Cash Rental Rates Increase Across Portfolio

First Industrial achieved a 32% cash rental rate increase on leases commencing in 2025. Excluding a 1.3 million square-foot fixed-rate renewal, the cash rental rate increase reached 37%. For leases signed to date commencing in 2026, the company reported a 35% cash rental rate increase.

In the fourth quarter alone, cash rental rates on commenced new and renewal leasing increased 35%. The company's cash same store NOI growth reached 7.1% for the full year 2025.

Portfolio occupancy stood at 94.4% at the end of the fourth quarter of 2025, compared to 94.0% at the end of the third quarter of 2025 and 96.2% at the end of the fourth quarter of 2024.

Development and Financing Activity

First Industrial signed 447,000 square feet of new leases for development projects in the fourth quarter, with 231,000 square feet signed subsequent to the third quarter earnings call. The company started two development projects in the first quarter of 2026 totaling 305,000 square feet in Miami and Dallas, with an estimated investment of $70 million.

First Industrial closed $425 million and $375 million in unsecured term loans during the first quarter of 2026.

The company increased its first quarter 2026 dividend to $0.50 per share, representing a 12.4% increase. First Industrial initiated 2026 NAREIT FFO guidance at a range of $3.09 to $3.19 per share/unit, representing approximately 6% growth at the midpoint.

Sources:
First Industrial Realty Trust - https://www.firstindustrial.com/node/306