First Industrial Raises 2021 Outlook on Strong Q3 Results

Illinois-based real estate investment trust (REIT) First Industrial Realty Trust, Inc. (FR) has reported excellent financial results for the third quarter of 2021. The company owns, manages, acquires, sells, develops and redevelops industrial real estate.

First Industrial reported FFO per share of $0.51, higher than the year-ago FFO and the Street’s estimate of $0.49. Total revenues amounted to $121.1 million, compared to $116.2 million reported in the same quarter last year. The figure exceeded analysts’ expectations of $118.4 million.

In-service occupancy was 97.1% at the end of the quarter, as compared to 96.3% at the end of the third quarter of 2020. (See Insiders’ Hot Stocks on TipRanks)

For the fourth quarter, the company aims to begin the development of three projects totaling 800,000 square feet. It plans to invest $130 million in these projects.

The President and CEO of First Industrial, Peter E. Baccile, said, “We are achieving strong rent growth across our markets while driving external growth through our expanding development pipeline.”

“We are raising our full-year FFO per share guidance for 2021 by $0.02 at the midpoint due to our strong third-quarter performance and our outlook for the fourth quarter,” added Baccile.

For 2021, the company now expects FFO per share to range from $1.93 to $1.97, while the Street’s estimate stands at $1.93.

Meanwhile, First Industrial’s shares gained 2.6% on Wednesday to close at $58.53.

Recently, Berenberg Bank analyst Connor Siversky initiated coverage of the stock with a Buy rating and a price target of $66 (11.6% upside potential).

Siversky said, “Industrial REITs have the best market positioning and asset composition to deliver outsized returns in the months ahead given a robust demand for the industrial space.”

Overall, the stock has a Strong Buy consensus rating based on 5 Buys and 1 Hold. The average First Industrial Realty Trust price target of $63.80 implies 9% upside potential. Shares have gained 43.3% year-to-date.