First Industrial Realty Trust Inc. (FR) is a leading owner, operator, and developer of industrial real estate with a solid track record. Expected FFO growth of 6% and the dividend yield of 3.3% could lead to total annual returns of 8.2%, advises Ben Reynolds, editor of Top 10 REITs.
FR has 872 tenants, with its top 20 accounting for approximately 26% of its net rent. In total, the trust owns roughly 71.6 million square feet of industrial space and has an $8 billion market cap.
First Industrial Realty Trust Inc. (FR)
On Feb. 4, First Industrial announced results for the fourth quarter. The company reported funds from operations (FFO) grew 8.5% to $0.77 per share from $0.71, driven by solid leasing activity and higher rent. Same-store NOI rose 3.7% even though the trust’s occupancy fell slightly to 94.4%. First Industrial signed 447K square feet of new leases in Q4.
Leadership initiated its 2026 FFO guidance at $3.09 to $3.19 per share, 5% to 6% same-store NOI growth, and average quarter-end occupancy of 94% to 95%. Then on Feb. 5, First Industrial announced a 12% increase in its dividend, marking 14 consecutive years of dividend growth.
First Industrial has an S&P credit rating of BBB, which is investment grade. The interest coverage ratio is 3.9, and the trust sports a debt-to-equity ratio of 0.9, which is considered very good. The REIT's dividend payout ratio of 63% based on 2026 FFO is considered secure.
Based on forecast 2026 FFO per share of $3.15, First Industrial stock trades for a price-to-FFO ratio of 19.1. This compares to its ten-year average P/FFO ratio of 22.3.
Recommended Action: Buy FR.
