KeyBanc downgrades First Industrial to Underweight on leasing slowdown

KeyBanc last night downgraded First Industrial Realty Trust to Underweight from Sector Weight with a $42 price target. The analyst sees risk to fiscal 2024 funds from operations estimates given longer leasing timelines for new development projects, which the firm says could disproportionately impact First Industrial’s future growth outlook versus peers. Approximately $346M of development is scheduled to be placed in service during the next four quarters, with minimal pre-leasing completed to date, the analyst tells investors in a research note.