First Industrial Sets 2026 Same-Store NOI Growth at 6.5%

The Tip Desk · October 26, 2026 · 3 min read

Cash same-store NOI rose 5.6% in the third quarter as the logistics REIT set full-year growth guidance at 6.25% to 6.75%.

First Industrial Realty Trust (FR), a fully integrated owner, operator and developer of logistics real estate, guided 2026 cash same-store net operating income growth to 6.25% to 6.75%, a midpoint of 6.5%, after a third-quarter cash same-store NOI increase of 5.6%.

The company also set 2026 funds from operations guidance at a range of $3.15 to $3.19 a share/unit before advisory costs related to a contested proxy campaign.

Cash same-store NOI growth had been 6.7% in the second quarter and 8.7% in the first quarter. The company said the third-quarter increase primarily reflected higher rental rates on new and renewal leasing and contractual rent escalations, partially offset by lower average occupancy.

Cash rental rates on commenced new and renewal leases increased 52% in the third quarter, after 39% in the second quarter and 32% in the first quarter. On a straight-line basis, those rates increased 76%.

In-service occupancy was 94.1% at the end of the third quarter, down from 94.9% at the end of the second quarter.

Diluted FFO was $0.81 a share/unit, compared with $0.76 a year earlier. Diluted net income available to common stockholders was $0.44 a share. Total revenues for the three months ended September 30, 2026 were $197.1 million.

President and Chief Executive Officer Peter E. Baccile said industrial real estate market fundamentals continued to improve, with strong net absorption reflecting the breadth of tenant demand. He said the company experienced a strong pace of early renewals for 2027 expirations and was excited about overall prospect activity.

Leases signed to date commencing in 2026 have produced an approximately 38% cash rental-rate increase, covering 94% of 2026 expirations by square footage. Leases signed to date commencing in 2027 have produced an approximately 16% cash rental-rate increase, covering 45% of 2027 expirations by square footage.

During the quarter the company leased the remaining 32,000 square feet of its 136,000-square-foot First Park Miami Building 12 in South Florida, which commenced in the third quarter. It acquired a fully leased 764,000-square-foot building in Central Pennsylvania for $120 million and a 32-acre Dallas land site for $13 million, developable to 390,000 square feet across two buildings.

Guidance assumes year-end fourth-quarter in-service occupancy of 94.5% to 96.5%, which the company said implies a full-year quarter-end average of 94.5% to 95.0%. It also assumes 650,000 square feet of additional development leasing in December 2026. Fourth-quarter cash same-store NOI growth before termination fees is guided at 4.0% to 6.0%.

General and administrative expense is guided at $42.0 million to $43.0 million, excluding $5.6 million of contested-proxy costs recognized in the first quarter. The company expects to capitalize $0.08 a share of interest in 2026. Guidance does not include future investments, property sales, debt repurchases prior to maturity, debt issuances, equity issuances, or stock repurchases after the release date.

As of September 30, 2026, the company owned and had under development approximately 72.9 million square feet of industrial space concentrated in 15 target MSAs.