First Industrial Realty Trust Closes $800M in Unsecured Term Loans, Starts $70M Industrial Real Estate Developments in Miami and Dallas

First Industrial Realty Trust (NYSE: FR) reported first quarter 2026 results on April 22, 2026, highlighted by strong industrial real estate fundamentals, $800 million in refinanced unsecured term loans, and the commencement of two new industrial developments totaling 305,000 square feet across Miami and Dallas with an estimated investment of $70 million.

The industrial REIT posted diluted net income available to common stockholders of $1.08 per share in the first quarter, compared to $0.36 per share a year ago. Funds from operations (FFO) came in at $0.68 per share on a diluted basis, matching the year-ago period. Excluding advisory costs related to a contested proxy campaign, first quarter 2026 FFO was $0.72 per share.

"2026 is off to a good start as our team delivered strong cash same store NOI and rental rate growth and signed development leases in several markets reflecting broad-based demand," said Peter E. Baccile, First Industrial's president and chief executive officer. "We also successfully renewed the lease for our 556,000 square-foot Inland Empire facility, our largest remaining 2026 expiration. We are encouraged by the activity levels across our availabilities to drive value for shareholders."

Industrial Real Estate Portfolio Performance

First Industrial's in-service occupancy stood at 94.3% at the end of the first quarter of 2026, compared to 94.4% at the end of the fourth quarter of 2025 and 95.3% at the end of the first quarter of 2025. Cash rental rates on commenced new and renewal leasing increased 32% during the quarter.

The company has achieved a cash rental rate increase of approximately 41% on leases signed to date commencing in 2026, reflecting 61% of 2026 expirations by square footage. That figure includes the renewal of a 556,000-square-foot facility in the Inland Empire that had been scheduled to expire in the third quarter of 2026.

Cash basis same-store net operating income before termination fees increased 8.7% in the first quarter, driven primarily by increases in rental rates on new and renewal leasing, lower free rent, and contractual rent escalations, partially offset by lower average occupancy.

The company also disclosed it signed an agreement with a third-party logistics (3PL) tenant on its credit watchlist. First Industrial collected approximately 60% of the balance owed at year-end 2025 in a lump sum payment, with regularly scheduled payments expected to retire the remaining past-due rent by the end of 2026.

Industrial Real Estate Development Activity

During the first quarter, First Industrial commenced development of two industrial real estate projects totaling 305,000 square feet with an estimated total investment of $70 million:

• First Park Miami Building 4 in South Florida — 220,000 square feet; estimated investment of $57 million.
• First Arlington Commerce Center III in Dallas — 84,000 square feet; estimated investment of $13 million.

The company also signed 383,000 square feet of new leases for development projects during the first quarter and into the second quarter, spanning markets including Orlando, Chicago, the Lehigh Valley, South Florida, and the Inland Empire.

Development leasing highlights during the first quarter included the lease of the remaining 30,000 square feet of its 107,000-square-foot First Loop Logistics Park Building 4 in Orlando; 60,000 square feet of the remaining 122,000 square feet of its 451,000-square-foot First Park 94 Building D in Chicago; 54,000 square feet of its recently completed 151,000-square-foot First Park 33 Building I in the Lehigh Valley; and 29,000 square feet of its 60,000-square-foot First Pompano Logistics Center in South Florida.

In the second quarter to date, the company leased 100% of its 155,000-square-foot First Wilson Logistics Center II in the Inland Empire and 56,000 square feet of its 198,000-square-foot First Park Miami Building 3 in South Florida.

Separately, a tenant exercised its purchase option on a 100-acre income-producing land site in Phoenix for a sales price of $131 million, which the company said represents more than three times industrial land values. The transaction is expected to close in the second quarter.

Commercial Real Estate Financing: $800M Term Loan Refinancing

First Industrial completed two unsecured term loan refinancings during the first quarter, totaling $800 million in aggregate.

The company closed a $425 million unsecured term loan that refinanced a prior facility previously scheduled to mature on October 18, 2027. The new term loan matures on January 22, 2030 and includes a one-year extension option. The loan carries interest-only payments at a current rate of SOFR plus 85 basis points based on the company's current credit ratings, with the previous 10 basis point SOFR adjustment eliminated.

First Industrial also closed a $375 million unsecured term loan that refinanced and expanded a prior $300 million facility previously scheduled to mature on August 12, 2026. The new term loan matures on January 22, 2029 and includes two one-year extension options, also carrying interest-only payments at SOFR plus 85 basis points with the prior SOFR adjustment eliminated.

In conjunction with these refinancings, the company amended its $200 million unsecured term loan to eliminate the 10 basis point SOFR adjustment from that facility as well.

First Industrial also established a new share repurchase program under which the company may repurchase up to $250 million of common stock.

Dividend Increase and 2026 Outlook

The board of directors declared a common dividend of $0.50 per share for the quarter ending March 31, 2026, paid on April 20, 2026 to stockholders of record on March 31, 2026. The new dividend rate represents a 12.4% increase from the prior rate of $0.445 per share.

For full-year 2026 guidance, First Industrial projected average quarter-end in-service occupancy of 94.0% to 95.0% and same-store NOI growth on a cash basis before termination fees of 5.0% to 6.0%. General and administrative expense is expected to range from $42.0 million to $43.0 million, excluding $5.6 million of costs related to the contested proxy campaign recognized in the first quarter. The company expects to capitalize $0.08 per share of interest in 2026 related to its completed and under-construction developments.

"The fundamental environment continues to be stable, with decision-making accelerating for space sizes under 200,000 square feet in our portfolio," Baccile said. "We look to build on our leasing successes thus far and attract and serve new customers with our high quality, well-located logistics facilities."

Guidance includes the impact of the expected Phoenix land sale in the second quarter but excludes the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, equity issuances, or stock repurchases after the date of the press release.

As of March 31, 2026, First Industrial owned and had under development approximately 71.6 million square feet of industrial space concentrated in 15 target metropolitan statistical areas. The company hosted its quarterly conference call on April 23, 2026 at 10:00 a.m. CDT.

Sources: First Industrial Realty Trust Q1 2026 Earnings Release, April 22, 2026. https://www.firstindustrial.com/node/309