Last Updated 5/5/25
First Industrial Realty Trust, trading under the ticker FR, is the kind of REIT that tends to fly under the radar. It’s not in the news every week, but for investors focused on reliable dividend income, this stock deserves a closer look. FR specializes in industrial real estate — think warehouses and logistics facilities — and their footprint spans key distribution hubs across the U.S.
The demand for this type of space hasn’t slowed. In fact, it’s become even more critical as supply chains evolve and e-commerce continues to grow. First Industrial has quietly carved out a strong position in this space. Their strategy? Steady development, focused capital spending, and a long-term leasing model that helps cushion the business during tougher cycles.
For those who prize consistency and predictable income, First Industrial checks a lot of boxes. And while the share price has been through the usual market swings, the dividend story remains strong — and getting stronger.
Recent Events
First Industrial’s most recent quarterly results show a business that’s adapting well in a challenging environment. Revenues over the past twelve months came in at just under $686 million, reflecting a solid 8.4% year-over-year increase. Even as costs and rates climb, demand for industrial space has kept cash flowing in.
Earnings per share saw a decline — down about 30% year-over-year to $2.01 — but this was expected. Inflationary pressures and increased financing costs have nudged earnings lower across the sector. Still, margins remain solid. A profit margin near 39% in this environment says a lot about operational strength and the quality of the tenant base.
Management has continued investing in development projects, which supports long-term income growth. The share price, which has moved between $40 and $58 over the past year, now sits near the lower end of that range. For income investors, that could mean a better entry point — especially when the dividend yield is creeping above its historical average.
Key Dividend Metrics
📈 Forward Yield: 3.63%
📉 Trailing Yield: 3.17%
🔁 5-Year Average Yield: 2.36%
💵 Forward Dividend Rate: $1.78
🧾 Payout Ratio: 77.36%
📆 Next Dividend Date: July 21, 2025
⏱️ Ex-Dividend Date: June 30, 2025
Dividend Overview
One of the most appealing aspects of First Industrial is its dividend — not just the yield, but the consistency. With a forward yield at 3.63%, this isn’t one of those token REIT payouts. It’s meaningful income, especially when it’s paired with a conservative payout ratio.
The company is currently distributing 77% of earnings, which is a healthy spot for a REIT. It means they’re returning plenty to shareholders without jeopardizing the financial foundation. The forward dividend of $1.78 per share reflects not just stability, but growth — and the track record backs that up.
What’s interesting is that the current yield is noticeably above the five-year average of 2.36%. That signals the stock could be undervalued from a dividend-income perspective. When yields spike like this without a corresponding cut, it often means the price has dropped more than the dividend has risen — creating a potential opportunity for long-term investors.
Institutional ownership stands above 98%, another quiet endorsement. Big players don’t stick around unless the income stream is reliable and the business model holds up. That level of ownership also tends to reduce volatility, making the stock a more stable ride for individual investors.
Dividend Growth and Safety
When it comes to dividend safety, First Industrial plays it smart. The company brought in $378 million in operating cash flow last year, with $373 million making its way to levered free cash flow. That kind of conversion rate tells you the dividend is being paid out of real, sustainable cash — not accounting tricks or short-term borrowing.
The balance sheet, while carrying a fair amount of debt like most REITs, is in good shape. Total debt sits around $2.4 billion, with a debt-to-equity ratio just under 90%. It’s a capital-intensive business, so those numbers don’t raise red flags. Meanwhile, the current ratio of 1.12 shows they’re managing short-term obligations without stress.
They’ve also shown a solid commitment to raising the dividend year after year. This isn’t a management team chasing headlines — they raise when they can, not just to make noise. That conservative approach has worked in their favor, especially when other companies have been forced to pause or trim payouts.
Returns on equity (10.28%) and assets (3.31%) aren’t flashy, but they’re dependable. This is a business built for income, not high-octane growth. Long-term leases with built-in escalations help ensure that income doesn’t just stay steady, but grows — even if it’s not dramatic.
Finally, the yield being well above its historical norm stands out. Markets might be pricing in macro fears — higher rates, recession worries — but First Industrial is still collecting rent, signing tenants, and raising dividends. For those looking for consistent income with a real estate backbone, the setup here is worth noting.
Cash Flow Statement
First Industrial Realty Trust’s trailing twelve-month cash flow figures show a company maintaining solid operating performance despite ongoing capital demands. Operating cash flow came in at $378.6 million, an increase from the previous year and the highest figure in the last five years, reflecting continued strength in core property operations and tenant lease income. Free cash flow mirrors this number, indicating that capital expenditures are minimal or fully absorbed within operating results, which is typical for a REIT with stable property holdings.
On the investing side, the company recorded an outflow of $325.9 million, suggesting significant ongoing development or property acquisition activity — though at a more moderate pace than in 2021 or 2022. Financing cash flow was also negative, at just over $64 million, pointing to a year of debt repayments or reduced equity activity. This compares to a large inflow in 2021, which likely supported earlier expansion. Cash on hand at the end of the period stood at $37.4 million, down slightly from prior years but still sufficient given the predictable nature of rental cash inflows. Overall, the company’s cash flow health remains intact, supported by a consistent stream of operating income and prudent capital management.
Analyst Ratings
📉 First Industrial Realty Trust (NYSE: FR) has recently experienced a few shifts in analyst sentiment. Truist Securities trimmed its price target from $60 to $55 while still holding a Buy rating. The adjustment reflects a slower pace in development leasing and more conservative projections for normalized funds from operations per share heading into 2025 and 2026.
⚖️ Goldman Sachs moved its rating from Buy to Neutral, simultaneously reducing its price target from $59 to $51. The decision was influenced by concerns around the REIT’s sensitivity to rising interest rates and how those could impact demand in the industrial real estate sector.
🪙 Barclays echoed a more cautious tone, lowering its price target from $56 to $52 and applying an Equal Weight rating. Their view suggests they see the stock as fairly valued at current levels, without strong near-term catalysts to drive upside.
🚀 On a more bullish note, Robert W. Baird bumped its price target up from $59 to $61 and reiterated an Outperform rating. Their stance leans on the company’s continued operational strength and resilience in a shifting economic environment.
📊 As it stands, the analyst consensus on FR remains a Moderate Buy. The average price target sits at $57.08, hinting at a possible upside from where the stock is currently trading.
Earning Report Summary
Solid Start to the Year
First Industrial Realty Trust kicked off 2025 with a strong first quarter, showing that steady execution still pays off in a choppy economic environment. Revenue hit $177.1 million, a healthy 9% bump from the same quarter last year. That lift came largely from better leasing terms and strong tenant recoveries. Funds from operations, or FFO, climbed to $0.68 per share, up from $0.60 a year ago—an encouraging sign for a REIT that leans heavily on operational discipline.
Their core portfolio continued to perform well. Same-store net operating income grew just over 10%, which says a lot about how stable their properties are and how willing tenants are to pay for them. They also reported a 42% increase in cash rental rates, which is a standout figure and speaks to the kind of pricing power they’ve been able to maintain. Occupancy held firm at 95.3%, and management noted that many tenants are renewing leases well ahead of schedule. That kind of advance commitment from tenants doesn’t happen unless they feel confident in both the space and the relationship.
Of course, not everything is smooth sailing. The company did mention that some tenants are hitting pause due to ongoing tariff uncertainties and global tensions. These macro factors are causing a bit of hesitation in leasing conversations, especially for companies trying to plan out longer-term logistics needs. Even with those headwinds, First Industrial is holding the line. Their development pipeline looks strong, and they expect to bring 1.5 million square feet of new space online in the fourth quarter. That’s a solid cushion for future growth.
From a financial standpoint, they’re keeping things tight. Leadership pointed to the recent renewal and extension of their credit lines, which reinforces a strong capital base. They’re not overextending themselves and seem to be setting up for long-term flexibility.
Forward Outlook
As for what’s next, the company is forecasting full-year FFO between $2.87 and $2.97 per share. That’s a steady range that suggests confidence in their outlook, even with some uncertainty in the broader market. They’re aiming for in-service occupancy to average between 95% and 96% and expect same-store NOI growth to come in somewhere between 6% and 7%.
Taken together, the quarter shows a company that knows its lane and sticks to it. They’re not chasing headlines, but they’re clearly delivering for both tenants and shareholders. The message from management was simple: stay focused, stay conservative, and keep growing in the right places.
Final Thoughts
First Industrial Realty Trust (FR) continues to solidify its position as a reliable income-generating REIT within the essential industrial real estate sector. The company’s consistent revenue growth, strong core portfolio performance, and a dividend yield that surpasses its historical average make it an attractive option for dividend-focused investors. While broader economic uncertainties present some headwinds, First Industrial’s disciplined approach to development, healthy occupancy rates, and proactive management of its capital base suggest a resilience that income-seeking portfolios can appreciate. The REIT’s focus on long-term value and steady dividend growth underscores its appeal as a dependable holding in a potentially volatile market.