First Industrial Realty (F5W) Q3 2026 Earnings Report

The call was predominantly positive. The company reported higher FFO, strong same-store NOI growth, occupancy above prior expectations, substantial leasing spreads, improved industrial market fundamentals, completed acquisitions, and continued development and data center opportunities. The principal challenges were the shift of approximately 150,000 square feet of development leasing into 2027, expected moderation in future rent growth, remaining leasing needs in select markets, higher fuel and construction costs, swap-rate exposure, and proxy campaign costs. Highlights significantly outweighed the lowlights.

For 2026, NAREIT FFO guidance is $3.11 to $3.15 per share, including $0.04 per share of advisory costs related to the contested proxy campaign, or $3.15 to $3.19 per share excluding these advisory costs; end of fourth quarter in-service occupancy is expected at 94.5% to 96.5% with a midpoint of 95.5%, implying an average quarter end in-service occupancy for the year of 94.5% to 95%, with approximately 650,000 square feet of incremental development leasing assumed to occur at the end of December; fourth quarter cash same-store NOI growth before termination fees is expected at 4% to 6%, implying full year 2026 cash same-store NOI growth before termination fees of 6.25% to 6.75%, an increase of 75 basis points at the midpoint; the company expects to capitalize about $0.08 per share of interest, and G&A expense guidance remains $42 million to $43 million, excluding $5.6 million of costs related to the contested proxy campaign. For 2027, retention is expected to be 65% to 75%, and management said the full year number for cash rent increases is not expected to be meaningfully different from the 16% achieved thus far.