First Industrial Raises 2026 FFO Guidance Amid Stabilizing Industrial Rent Growth
First Industrial (FR) has raised its full-year 2026 funds from operations (FFO) guidance midpoint by $0.01 per share following its third-quarter earnings report. Despite a moderation in rental growth compared to post-pandemic peaks, the company reported a 16% cash rent increase on signed renewals for leases expiring in 2027, covering 45% of those expirations. The company's core property leasing outperformed expectations during the third quarter, helping to offset minor development delays. Management also noted signs of recovery in Southern California industrial demand, particularly within the Inland Empire and Los Angeles regions. As national net absorption continues to outpace new construction, First Industrial remains focused on maintaining pricing discipline and managing lease rollover schedules.
Tickers: $FR
Topics: FFO guidance increase industrial real estate lease renewals net absorption