First Industrial Realty cut to Equal Weight at Barclays on contracting occupancy

As previously reported, Barclays downgraded First Industrial Realty to Equal Weight from Overweight with a price target of $53, down from $63, after assuming coverage of the name. Supply growth in Southern California, where First Industrial has 24.4% of its portfolio, is resulting in higher vacancy and pricing pressure, the analyst tells investors in a research note. The REIT’s same-store portfolio in Southern California was occupied a still-healthy 94.5% at the end of FY23, but contracted 500bps y/y, the firm added.