First Industrial Realty Trust, Inc. (FR): BCG Matrix [Dec-2025 Updated]

You're trying to figure out exactly where First Industrial Realty Trust, Inc. (FR) should be deploying capital heading into 2026, so I've mapped their operations onto the classic BCG Matrix using late 2025 figures. Honestly, the story is clear: the core portfolio is a reliable Cash Cow, projecting up to 7.5% Same Store NOI growth and high occupancy, while the Stars-like that development pipeline hitting an 8% cash yield-are primed for investment. But we can't ignore the Dogs, which are being strategically pruned after $163 million in 2024 sales, or the Question Marks in emerging submarkets that need clear paths to lease-up, like that remaining 300,000 square feet of unleased space. Keep reading to see the distilled view on where FR's momentum truly lies.

Background of First Industrial Realty Trust, Inc. (FR)

You're looking at First Industrial Realty Trust, Inc. (FR), which is a real estate investment trust, or REIT, focused squarely on industrial properties across the United States. Honestly, they aren't dabbling in offices or apartments; their entire platform is built around logistics real estate. They own, operate, develop, and acquire these facilities, serving as a key link in the supply chains for both big multinational corporations and smaller regional firms.

The company's strategy centers on a concentrated portfolio within 15 target MSAs (Metropolitan Statistical Areas), with a clear emphasis on markets that are supply-constrained and located near the coast. As of September 30, 2025, First Industrial Realty Trust, Inc. owned and had under development approximately 70.4 million square feet of this essential industrial space. That's a significant footprint in the logistics sector.

To give you a sense of where things stand near the end of 2025, the firm's market capitalization hovered around $7.58 billion, trading with a Price-to-Earnings ratio of about 31.98. Operationally, they've been seeing strong pricing power; for leases signed to-date commencing in 2025, the cash rental rate increase was reported at 32%. Furthermore, First Industrial Realty Trust, Inc. increased its full-year 2025 NAREIT Funds From Operations (FFO) guidance to a range of $2.94 to $2.98 per share/unit at the midpoint.

For context on recent performance, in the third quarter of 2025, the company posted diluted net income available to common stockholders per share (EPS) of $0.49, and FFO was $0.76 per share/unit. They maintain a debt-to-equity ratio of 0.88, which gives you a quick read on their leverage profile. Their focus remains on providing high-quality facilities where tenant demand is strongest.

First Industrial Realty Trust, Inc. (FR) - BCG Matrix: Stars

You're looking at the engine room of First Industrial Realty Trust, Inc. (FR)'s current growth story-the Stars quadrant. These are the assets and developments commanding the highest market share in the fastest-growing logistics real estate sectors, demanding significant capital investment to maintain that leadership position.

The development pipeline activity showcases this focus on high-growth, supply-constrained areas. For instance, two planned development starts in the second quarter of 2025, totaling 402,000 Square Feet in Dallas and Philadelphia, represented an estimated combined investment of $54 Million, targeting an estimated combined cash yield of 8%.

Demand for these premier assets is clearly present, evidenced by the leasing velocity achieved through the third quarter of 2025. First Industrial Realty Trust, Inc. (FR) secured 772,000 SF of new leases for development projects year-to-date through the third and fourth quarters of 2025.

This leasing success is translating directly into superior pricing power on new agreements. The cash rental rate increase on new leases signed in 2025 to-date, when excluding the 1.3 million SF fixed-rate renewal, stands at 37%.

The specific properties driving this Star performance are concentrated in markets First Industrial Realty Trust, Inc. (FR) targets as high-growth and supply-constrained. Here's a breakdown of some of the recent development leasing activity contributing to this segment:

• Development leasing activity to-date in the third and fourth quarters of 2025 totaled 772,000 SF.
• Leases signed in South Florida included 56,000 SF at First Park Miami Building 3 in the third quarter of 2025 and 57,000 SF at First Park Miami Building 12 in the fourth quarter of 2025.
• The Phoenix market saw 501,000 SF remaining at Building C at the Camelback 303 JV as of the third quarter of 2025.
• The Inland Empire contributed 159,000 SF at First Harley Knox Logistics Center in the fourth quarter of 2025.

To put the rental rate performance into context against other periods, consider this comparison for leases commencing in 2025:

First Industrial Realty Trust, Inc. (FR) - BCG Matrix: Cash Cows

You're looking at the core engine of First Industrial Realty Trust, Inc. (FR), the assets that reliably fund the rest of the operation. These are the established logistics properties operating in mature markets where the company has secured a high market share. They generate the necessary cash to fund growth elsewhere, service debt, and support shareholder returns.

The foundation of this cash generation is the sheer scale of the portfolio. As of June 30, 2025, First Industrial Realty Trust, Inc. (FR) owned and had under development approximately 70.5 million square feet of industrial space across 15 target MSAs. This massive, high-quality base provides the stability needed for a Cash Cow segment.

The operational performance in 2025 clearly demonstrates this strong cash-generating capability. For the second quarter of 2025, the company reported a cash same-store Net Operating Income (NOI) growth of 8.7%. This real-time result significantly outpaced the full-year 2025 guidance range of 6.0% to 7.0% cash same-store NOI growth before termination fees. That kind of consistent, high single-digit growth from the existing base is what defines a strong Cash Cow.

The stability is further evidenced by the high occupancy levels, which are essential for maximizing recurring revenue. While Q2 2025 in-service occupancy settled at 94.2%, the full-year 2025 guidance projects an average in-service occupancy between 95.0% and 96.0%. This high utilization rate means minimal vacancy drag on the cash flow derived from these mature assets.

The financial output confirms the segment's role. First Industrial Realty Trust, Inc. (FR) initiated its full-year 2025 NAREIT FFO guidance at a range of $2.87 to $2.97 per share. The midpoint of $2.92 per share represents a solid indicator of operational cash generation, which is used to cover corporate costs and pay dividends. For context, the actual FFO for Q2 2025 was $0.76 per share, up from $0.66 per share in Q2 2024.

The stability of the revenue stream comes from the nature of the tenants occupying these core assets. You see this in the leasing metrics:

• Cash rental rates on new and renewal leasing in Q2 2025 increased by 28.0%.
• The cash rental rate increase on leases signed to-date commencing in 2025 reached approximately 33%, or 38% excluding one large fixed-rate renewal.
• The company earned a BBB+ unsecured credit rating from Fitch Ratings, reflecting the dependable nature of the underlying cash flows.

To maintain this efficiency, investments are focused on infrastructure rather than aggressive market expansion. The company expects to capitalize approximately $0.09 per share of interest in 2025, and General and Administrative (G&A) expense guidance is set between $40.5 million to $41.5 million for the full year.

Here's a quick look at the key financial metrics supporting the Cash Cow status for 2025:

The company is actively managing its debt profile to support these stable assets, having issued $450 million of 5.25% Senior Unsecured Notes Due January 2031 in Q2 2025. This move locks in capital costs, further securing the predictable cash flow from the Cash Cow portfolio.

First Industrial Realty Trust, Inc. (FR) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

First Industrial Realty Trust, Inc.'s strategic actions in 2024 and early 2025 clearly signal an active management approach to minimizing exposure to these lower-performing assets, consistent with the Dogs quadrant strategy.

Non-core assets sold in 2024 for a total of $163 million, indicating a strategic exit from lower-growth properties. This divestiture activity suggests a deliberate pruning of the portfolio to reallocate capital toward higher-growth logistics hubs. For instance, in the fourth quarter of 2024, First Industrial Realty Trust, Inc. sold five buildings for $25 million, contributing to the full-year total divestiture proceeds of $163 million.

The properties categorized as Dogs often include older, smaller buildings in secondary markets with limited rent growth potential compared to coastal hubs. While First Industrial Realty Trust, Inc. has seen significant cash rental rate increases on new and renewal leasing-such as the 28.0% increase in Q2 2025-these gains are concentrated in core markets. Assets that do not command these premium rates are candidates for exit.

A concrete example illustrating the low-share/low-growth segment pressure is the specific property like the one in Central Pennsylvania that saw a 708,000 square-foot move-out in Q2 2025, which suggests a segment with lower relative market share. This single event caused the in-service occupancy to drop to 94.2% at the end of the second quarter of 2025 from 95.3% at the end of the first quarter of 2025. Management has stated this 708,000 square-foot space in Central Pennsylvania is effectively assumed to be leased up by 12/31/2025.

The underlying financial characteristic of these Dogs is that they are assets that require disproportionately high capital expenditure (CapEx) for maintenance without corresponding rent increases. In contrast, modern industrial properties often require lower operational costs and fewer tenant improvements. The decision to sell rather than invest heavily in these older assets is a capital allocation choice, avoiding tying up capital where returns are minimal.

Here's a quick look at the financial context surrounding these portfolio actions:

The strategic implication is clear: First Industrial Realty Trust, Inc. is actively shedding properties that fit the Dogs profile to focus on growth.

• Divestiture of $163 million in assets in 2024.
• Exposure to a large, single-tenant vacancy of 708,000 square-foot in Q2 2025.
• Focus on high-growth markets, implying secondary markets are being reduced.
• Avoiding capital deployment into assets with low corresponding rent growth.

The company is prioritizing assets where high rent growth is achievable, such as the 33% cash rental rate increase on leases commencing in 2025 year-to-date as of Q2 2025.

Finance: draft 13-week cash view by Friday.

First Industrial Realty Trust, Inc. (FR) - BCG Matrix: Question Marks

You're looking at the high-growth, high-cash-consumption side of First Industrial Realty Trust, Inc. (FR)'s portfolio-the Question Marks. These are the new developments and land parcels that require significant capital now, hoping to become Stars later.

The immediate focus for First Industrial Realty Trust, Inc. (FR) in this quadrant centers on the leasing of its current development pipeline. To hit the midpoint of its 2025 FFO guidance, the company is assuming it will lease an additional 300,000 square feet of its in-service developments by December 31, 2025. This remaining unleased space is consuming cash while waiting for tenant commitment, a classic Question Mark trait. The current FFO for the third quarter of 2025 was $0.76 per share/unit, but the investment needed for future growth is substantial.

The strategy involves pushing these assets into the market quickly. For instance, First Industrial Realty Trust, Inc. (FR) planned for new growth by targeting two development starts in the second quarter of 2025 within emerging submarkets. These were specifically planned for Dallas and Philadelphia, totaling 402,000 square feet with an $54 Million Estimated Investment and an Estimated Combined Cash Yield of 8%. These new starts are pure Question Marks; they are high growth prospects but currently have zero market share (no revenue) and are burning capital.

The total scale of First Industrial Realty Trust, Inc. (FR)'s growth engine, which houses these Question Marks, is large. As of September 30, 2025, the company owned and had under development approximately 70.4 million square feet of industrial space. The land bank holdings represent the potential for future Question Marks, tying up capital today for projects that might start in 2026 or beyond.

Tenant commitment in certain segments is being held back by external factors, forcing these assets into the Question Mark category longer than desired. Prospective tenants are actively evaluating their long-term needs but are specifically awaiting additional clarity on tariffs and underlying consumer demand before finalizing space commitments. This macro uncertainty directly impacts the speed at which these high-growth assets can secure leases and start generating returns.

Here is a look at the key financial metrics tied to the 2025 outlook, which reflects the investment into these growth areas:

The decision for First Industrial Realty Trust, Inc. (FR) is whether to heavily invest in these emerging markets and developments to quickly gain market share, or to divest if the macro environment makes a quick transition to a Star unlikely. The current leasing success on 2025 expirations, showing a 32% cash rental rate increase on leases signed to-date, suggests strong underlying demand that supports continued investment.

• Lease rate increase on 2025 expirations signed to-date: 32%
• Lease rate increase on 2025 expirations signed to-date (excluding renewal): 37%
• Lease rate increase on 2026 expirations signed to-date: 31%
• In-service occupancy end of Q3 2025: 94.0%