FIRST INDUSTRIAL LP
For the period ended Jun 30, 2025. Filed Jul 17, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 17, 2025
FR$53.76-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-17.
0000921825-25-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-17.
0000921825-25-000074
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 137 previous paragraphs and 155 current paragraphs.
87 unchanged; 48 reworded; 15 added; 2 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 11 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
•In May, Fitch Ratings upgraded our long-term issuer default rating and underlying unsecured investments to BBB+ from BBB.
Current report
•In May, we issued $450.0 million of senior notes due January 2031, bearing a fixed weighted average coupon rate of 5.25%.
Current report
•We delivered notice to the lenders to exercise the first one-year extension option related to our $300.0 million term loan, which subject to the satisfaction of certain conditions, will extend the maturity date to August 12, 2026.
Current report
During the six months ended June 30, 2025, one industrial property, totaling approximately 0.1 million square feet of GLA, was taken out of service with the intent for future redevelopment. As a result of taking this industrial property out of service, the results of operations were reclassified from the same store property classification to the other classification.
Current report
Comparison of Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024
Current report
Our net income was $109.8 million and $123.4 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
Interest expense decreased by $0.8 million, or 2.0%, primarily due to an increase of $1.1 million in capitalized interest during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 and a decrease in the weighted average interest rate to 4.07% for the six months ended June 30, 2025 as compared to 4.17% for the six months ended June 30, 2024. The decrease in interest expense was offset by a higher weighted average debt balance of $2,334.8 million for the six months ended June 30, 2025 as compared to $2,256.3 million for the six months ended June 30, 2024.
Current report
General and administrative expense decreased by $1.2 million, or 12.3%, primarily due to the accelerated recognition of equity-based compensation expense for certain tenured employees who are retirement eligible in the first quarter of 2025, compared to such expense being recognized ratably over all four quarters in 2024.
Current report
For the three months ended June 30, 2025, we recognized $1.1 million of gain on sale of real estate related to the sale of one industrial property totaling approximately 0.02 million square feet of GLA. For the three months ended June 30, 2024, we recognized $6.1 million of gain on sale of real estate related to the sale of one industrial property totaling approximately 0.1 million square feet of GLA.
Current report
Amortization of debt issuance costs increased $0.4 million, or 45.6%, primarily due to financing costs incurred related to the amendment and restatement of the Unsecured Credit Facility, the amendment and restatement of our $200.0 million term loan and the issuance of $450.0 million of senior notes in May 2025.
Current report
Equity in (loss) income of joint venture decreased $1.2 million, or 105.5%, for the three months ended June 30, 2025. The decrease is primarily attributable to a reduction in our pro-rata share of net operating income from the Joint Venture, resulting from the sale of two buildings in March 2025 and the expiration of a ground lease.
Current report
The income tax provisions for both three-month periods were not significant.
Current report
•increase in distributions from our Joint Venture of $21.6 million in 2025 as compared to 2024; offset by:
Current report
•the issuance of senior unsecured notes in 2025 resulting in net proceeds of $443.8 million; offset by:
Current report
Subsequent to June 30, 2025, we acquired one income-producing land parcel for a purchase price of $10.6 million, excluding transaction costs.
Removed paragraphs (2)
Previous report
•increase in accounts payable, accrued expenses, other liabilities, rents received in advance and security deposits due to timing of cash payment; and:
Previous report
Subsequent to March 31, 2025, we sold one industrial property for a sales price of $1.9 million, excluding transaction costs.
Reworded paragraphs (48)
Previous wording
The Company is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). As of March 31, 2025, we owned 416 industrial properties located in 19 states, containing an aggregate of approximately 68.2 million square feet of gross leasable area ("GLA"). Of the 416 properties owned on a consolidated basis, none of them are directly owned by the Company.
Current wording
The Company is a self-administered and fully integrated real estate company which owns, manages, acquires, sells, develops and redevelops industrial real estate. The Company is a Maryland corporation organized on August 10, 1993 and a real estate investment trust ("REIT") as defined in the Internal Revenue Code of 1986 (the "Code"). As of June 30, 2025, we owned 415 industrial properties located in 19 states, containing an aggregate of approximately 68.2 million square feet of gross leasable area ("GLA"). Of the 415 properties owned on a consolidated basis, none of them are directly owned by the Company.
Previous wording
Summary of the Three Months Ended March 31, 2025
Current wording
Summary of the Six Months Ended June 30, 2025
Previous wording
Our operating results were strong during the three months ended March 31, 2025. In-service occupancy at quarter end was 95.3%, and for new and renewal leases that commenced during the quarter we achieved a 41.7% increase in cash rental rates, reflecting continued demand.
Current wording
Our operating results were strong for the six months ended June 30, 2025, highlighted by quarter-end occupancy of 94.2%, a 9.4% increase in cash-basis same store NOI, and a robust 34% average increase in cash rental rates on new and renewal commenced leases, demonstrating continued healthy demand.
Previous wording
As of March 31, 2025, we had eight development projects underway, totaling 2.0 million square feet of GLA, with an aggregate estimated investment of approximately $280.4 million.
Current wording
As of June 30, 2025, we had nine development projects underway, totaling 2.2 million square feet of GLA, with an aggregate estimated investment of approximately $285.2 million.
Previous wording
During the three months ended March 31, 2025, we completed several significant real estate transactions:
Current wording
During the six months ended June 30, 2025, we completed several significant real estate transactions:
Previous wording
•We acquired approximately 61.4 acres of land for development located in our Central/Eastern Pennsylvania market for an aggregate purchase price of $15.7 million, excluding transaction costs.
Current wording
•We acquired approximately 61.4 acres of land for development located in our Philadelphia market for an aggregate purchase price of $15.7 million, excluding transaction costs.
Previous wording
•We sold two industrial properties totaling approximately 0.1 million square feet of GLA for gross proceeds of $11.9 million.
Current wording
•We sold three industrial properties totaling approximately 0.1 million square feet of GLA for gross proceeds of $13.7 million.
Previous wording
During the three months ended March 31, 2025, our key financing activities included:
Current wording
During the six months ended June 30, 2025, our key financing activities included:
Previous wording
•We declared a first quarter cash dividend of $0.445 per common share or Unit, an increase of 20.3% over the 2024 quarterly dividend rate.
Current wording
•We declared first and second quarter cash dividends of $0.445 per common share or Unit, an increase of 20.3% over the 2024 quarterly dividend rate.
Previous wording
As of March 31, 2025, we had $395.5 million of available borrowing capacity under our Unsecured Credit Facility and held $37.2 million in cash, cash equivalents and restricted cash, excluding our Joint Venture partner's 6% interest, which is consolidated in our financial statements.
Current wording
As of June 30, 2025, we had $823.8 million of available borrowing capacity under our Unsecured Credit Facility and held $34.9 million in cash and cash equivalents, excluding our Joint Venture partner's 6% interest, which is consolidated in our financial statements.
Previous wording
The tables below summarize our revenues, property expenses and depreciation and other amortization by category for the three months ended March 31, 2025 and 2024.
Current wording
The tables below summarize our revenues, property expenses and depreciation and other amortization by category for the three and six months ended June 30, 2025 and 2024.
Previous wording
Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties remained relatively unchanged. Property expenses from acquired properties increased $0.2 million due to properties acquired subsequent to December 31, 2023. Property expenses from sold properties decreased $0.9 million due to properties sold subsequent to December 31, 2023. Property expenses from (re)developments increased $1.2 million primarily due to the substantial completion of developments. Property expenses from other remained relatively unchanged.
Current wording
Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties remained relatively unchanged. Property expenses from acquired properties increased $0.8 million due to properties acquired subsequent to December 31, 2023. Property expenses from sold properties decreased $1.5 million due to properties sold subsequent to December 31, 2023. Property expenses from (re)developments increased $2.1 million primarily due to the substantial completion of developments. Property expenses from other remained relatively unchanged.
Previous wording
General and administrative expense increased by $4.1 million, or 34.9%, primarily due to the accelerated recognition of equity compensation expense for certain employees in the first quarter of 2025, compared to full-year amortization of the expense in 2024.
Current wording
General and administrative expense increased by $2.9 million, or 13.7%, primarily due to the accelerated recognition of equity compensation expense for certain tenured employees who are retirement eligible in the first quarter of 2025, compared to full-year amortization of the expense in 2024.
Previous wording
For the three months ended March 31, 2025, we recognized $6.8 million of gain on sale of real estate related to the sale of two industrial properties totaling approximately 0.1 million square feet of GLA. For the three months ended March 31, 2024, we recognized $30.9 million of gain on sale of real estate related to the sale of nine industrial properties totaling approximately 0.4 million square feet of GLA.
Current wording
For the six months ended June 30, 2025, we recognized $8.0 million of gain on sale of real estate related to the sale of three industrial properties totaling approximately 0.1 million square feet of GLA. For the six months ended June 30, 2024, we recognized $37.0 million of gain on sale of real estate related to the sale of 10 industrial properties totaling approximately 0.5 million square feet of GLA.
Previous wording
Amortization of debt issuance costs remained relatively unchanged.
Current wording
Amortization of debt issuance costs increased by $0.5 million, or 25.6%, primarily due to financing costs incurred related to the amendment and restatement of the Unsecured Credit Facility, the amendment and restatement of our $200.0 million term loan and the issuance of $450.0 million of senior notes in May 2025.
Previous wording
Equity in income of joint venture increased $2.1 million, or 148.0%, for the three months ended March 31, 2025. The increase primarily relates to gain on sale and incentive fees recognized in connection with the sale of two properties by the Joint Venture during the quarter. As we were the purchaser of the properties, our economic share of the gain and incentive fees was offset against the basis of the real estate acquired. The remaining portion of the gain on sale and incentive fees reflects our partner’s share, which is consolidated in our financial statements. Additionally, the increase reflects an increase in our pro-rata share of rental income from the Joint Venture, partially offset by an increase in our pro-rata share of depreciation, amortization and interest expense. These increases in expenses are attributable to the substantial completion of three buildings totaling 1.8 million square feet of GLA during the year ended December 31, 2024.
Current wording
Equity in income of joint venture increased $0.9 million, or 33.2%, primarily due to gain on sale and incentive fees recognized in connection with the sale of two properties by the Joint Venture. As we were the purchaser of the properties, our economic share of the gain and incentive fees was offset against the basis of the real estate acquired. The remaining portion of the gain on sale and incentive fees reflects our partner’s share, which is consolidated in our financial statements. This increase is partially offset by increases in our pro-rata share of depreciation, amortization and interest expense incurred by the Joint Venture. These increases in expenses are attributable to the substantial completion of three buildings totaling 1.8 million square feet of GLA during the year ended December 31, 2024. Both periods include the 6% interest held by our partner in the Joint Venture, which is consolidated and reported in our financial statements.
Previous wording
Income tax provision increased by $4.7 million, or 400.4%, primarily driven by our pro-rata share of gain and incentive fees recognized from the sale of real estate by the Joint Venture during the three months ended March 31, 2025. Our equity interest in the Joint Venture is held through a wholly-owned TRS.
Current wording
Income tax provision increased $4.4 million, or 272.5%, primarily driven by our pro-rata share of gain and incentive fees recognized from the sale of real estate by the Joint Venture during the six months ended June 30, 2025. Our equity interest in the Joint Venture is held through a wholly-owned TRS.
Previous wording
Our net income was $52.9 million and $70.5 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Our net income was $56.9 million and $52.9 million for the three months ended June 30, 2025 and 2024, respectively.
Previous wording
For the three months ended March 31, 2025 and 2024, the average daily occupancy rate of our same store properties was 95.7% and 95.0%, respectively.
Current wording
For the three months ended June 30, 2025 and 2024, the average daily occupancy rate of our same store properties was 94.7% and 95.5%, respectively.
Previous wording
Revenues from same store properties increased $10.1 million primarily due to an increase in rental rates as well as an increase in occupancy. Revenues from acquired properties increased $1.4 million due to the seven industrial properties acquired subsequent to December 31, 2023 totaling approximately 1.1 million square feet of GLA. Revenues from sold properties decreased $3.4 million due to the 24 industrial properties sold subsequent to December 31, 2023 totaling approximately 1.3 million square feet of GLA. Revenues from (re)developments increased $7.9 million due to an increase in occupancy and tenant recoveries. Revenues from other decreased $1.2 million primarily due to a decrease in joint venture fees and interest income.
Current wording
Revenues from same store properties increased $9.1 million primarily due to increases in rental rates, partially offset by a slight decrease in occupancy. Revenues from acquired properties increased $3.4 million due to the seven industrial properties acquired subsequent to December 31, 2023 totaling approximately 1.1 million square feet of GLA. Revenues from sold properties decreased $4.4 million due to the 25 industrial properties sold subsequent to December 31, 2023 totaling approximately 1.3 million square feet of GLA. Revenues from (re)developments increased $7.1 million primarily due to an increase in occupancy. Revenues from other increased $0.7 million primarily due to proceeds from a lawsuit settlement, partially offset by a decrease in joint venture fees.
Previous wording
Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $0.2 million, or 49.1%. This decline is attributed to a reduction in development activities by our Joint Venture during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Current wording
Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $0.3 million, or 68.5%. This decline is attributed to a reduction in development activities by our Joint Venture during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.
Previous wording
Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $0.5 million due to properties acquired subsequent to December 31, 2023. Depreciation and other amortization from sold properties decreased $0.6 million due to properties sold subsequent to December 31, 2023. Depreciation and other amortization from (re)developments increased $2.0 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other was not significant for either period.
Current wording
Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $2.7 million due to properties acquired subsequent to December 31, 2023. Depreciation and other amortization from sold properties decreased $0.6 million due to properties sold subsequent to December 31, 2023. Depreciation and other amortization from (re)developments increased $1.6 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other was not significant for either period.
Previous wording
Interest expense decreased by $1.4 million, or 6.8%, primarily due to a decrease in the weighted average interest rate, which fell to 4.03% for the three months ended March 31, 2025 from 4.18% for the three months ended March 31, 2024, a $0.2 million increase in capitalized interest during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and a lower weighted average debt balance of $2,250.4 million for the three months ended March 31, 2025 compared to $2,264.8 million for the three months ended March 31, 2024.
Current wording
Interest expense increased $0.6 million, or 2.8%, primarily due to a higher weighted average debt balance of $2,418.2 million for the three months ended June 30, 2025 compared to $2,247.7 million for the three months ended June 30, 2024, offset by a decrease in the weighted average interest rate, which fell to 4.10% for the three months ended June 30, 2025 from 4.16% for the three months ended June 30, 2024, and a $0.9 million increase in capitalized interest during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Previous wording
The following table provides a summary of our commenced leases for the three months ended March 31, 2025. The table does not include month-to-month leases or leases with terms less than twelve months.
Current wording
The following table provides a summary of our commenced leases for the three and six months ended June 30, 2025. The table does not include month-to-month leases or leases with terms less than twelve months.
Previous wording
The following table provides a summary of our leases that commenced during the three months ended March 31, 2025, which included rent concessions during the lease term.
Current wording
The following table provides a summary of our leases that commenced during the three and six months ended June 30, 2025, which included rent concessions during the lease term.
Previous wording
At March 31, 2025, we had approximately $37.2 million in cash, cash equivalents and restricted cash, excluding our Joint Venture partner's share of cash that is consolidated in our financial statements. We also had $395.5 million available for additional borrowings under our Unsecured Credit Facility as of March 31, 2025.
Current wording
At June 30, 2025, we had approximately $34.9 million in cash and cash equivalents, excluding our Joint Venture partner's share of cash that is consolidated in our financial statements. We also had $823.8 million available for additional borrowings under our Unsecured Credit Facility as of June 30, 2025.
Previous wording
As of April 17, 2025, we had approximately $333.8 million available for additional borrowings under our Unsecured Credit Facility.
Current wording
As of July 17, 2025, we had approximately $834.8 million available for additional borrowings under our Unsecured Credit Facility.
Previous wording
Our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB/Positive, respectively. In the event of a downgrade, we believe we would continue to have access to sufficient capital. However, our cost of borrowing would increase and our ability to access certain financial markets may be limited.
Current wording
Our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB+/Stable, respectively. In the event of a downgrade, we believe we would continue to have access to sufficient capital. However, our cost of borrowing would increase and our ability to access certain financial markets may be limited.
Previous wording
The following table summarizes our cash flow activity for the Company for the three months ended March 31, 2025 and 2024:
Current wording
The following table summarizes our cash flow activity for the Company for the six months ended June 30, 2025 and 2024:
Previous wording
The following table summarizes our cash flow activity for the Operating Partnership for the three months ended March 31, 2025 and 2024:
Current wording
The following table summarizes our cash flow activity for the Operating Partnership for the six months ended June 30, 2025 and 2024:
Previous wording
Changes in cash flow for the three months ended March 31, 2025, compared to the prior year comparable period are described as follows:
Current wording
Changes in cash flow for the six months ended June 30, 2025, compared to the prior year comparable period are described as follows:
Previous wording
Operating Activities: Cash provided by operating activities increased $26.1 million, primarily due to the following:
Current wording
Operating Activities: Cash provided by operating activities increased $44.4 million, primarily due to the following:
Previous wording
•increase in net operating income ("NOI") from same store properties, acquired properties and recently developed properties of $17.4 million offset by a decrease in NOI due to the disposition of real estate of $2.6 million;
Current wording
•increase in net operating income ("NOI") from same store properties, acquired properties and recently developed properties of $34.0 million offset by a decrease in NOI due to the disposition of real estate of $6.3 million; and
Previous wording
•decrease in tenant accounts receivable, prepaid expenses and other assets due to timing of cash receipts; offset by:
Current wording
◦increase in tenant accounts receivable, prepaid expenses and other assets due to timing of cash receipts; and
Previous wording
◦increase in income tax provision of $4.7 million.
Current wording
◦increase in income tax provision of $4.4 million.
Previous wording
Investing Activities: Cash used in investing activities increased $194.3 million, primarily due to the following:
Current wording
Investing Activities: Cash used in investing activities increased $218.2 million, primarily due to the following:
Previous wording
•increase of $153.6 million related to the acquisition, development and investment in real estate primarily attributed to an increase in acquisitions, offset by reduced expenditures for developments under construction during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024; and
Current wording
•increase of $171.5 million related to the acquisition, development and investment in real estate activity, primarily attributed to higher acquisition volume and increased expenditures for developments under construction during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024; and
Previous wording
•decrease of $36.3 million in net proceeds received from the disposition of real estate in 2025 as compared to 2024.
Current wording
•decrease of $42.4 million in net proceeds received from the disposition of real estate in 2025 as compared to 2024.
Previous wording
Financing Activities: Cash provided by financing activities was $110.5 million for the three months ended March 31, 2025 as compared to cash used in financing activities of $38.4 million for the three months ended March 31, 2024, resulting in an increase of cash provided by financing activities of $148.9 million, primarily due to the following:
Current wording
Financing Activities: Cash provided by financing activities was $58.7 million for the six months ended June 30, 2025 as compared to cash used in financing activities of $95.7 million for the six months ended June 30, 2024, resulting in an increase of cash provided by financing activities of $154.3 million, primarily due to the following:
Previous wording
•increase in net borrowings under our Unsecured Credit Facility of $165.0 million in 2025 as compared to 2024; offset by:
Current wording
◦decrease in net borrowings under our Unsecured Credit Facility of $258.0 million in 2025 as compared to 2024;
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
For the six months ended June 30, 2025 and 2024, the average daily occupancy rate of our same store properties was 95.2% for each period.
Current report — wording carried from elsewhere
Revenues from same store properties increased $19.2 million primarily due to increases in rental rates. Revenues from acquired properties increased $4.8 million due to the seven industrial properties acquired subsequent to December 31, 2023 totaling approximately 1.1 million square feet of GLA. Revenues from sold properties decreased $7.8 million due to the 25 industrial properties sold subsequent to December 31, 2023 totaling approximately 1.3 million square feet of GLA. Revenues from (re)developments increased $15.0 million primarily due to an increase in occupancy. Revenues from other remained relatively unchanged.
Current report — wording carried from elsewhere
Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $0.5 million, or 58.1%. This decline is attributed to a reduction in development activities by our Joint Venture during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Depreciation and other amortization from same store properties remained relatively unchanged. Depreciation and other amortization from acquired properties increased $3.1 million due to properties acquired subsequent to December 31, 2023. Depreciation and other amortization from sold properties decreased $1.3 million due to properties sold subsequent to December 31, 2023. Depreciation and other amortization from (re)developments increased $3.6 million primarily due to an increase in depreciation and amortization related to completed developments. Depreciation from corporate furniture, fixtures and equipment and other decreased $0.4 million as certain improvements on land parcels, for which our ultimate intent is to redevelop or develop, became fully depreciated.
Current report — wording carried from elsewhere
Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties remained relatively unchanged. Property expenses from acquired properties increased $0.5 million due to properties acquired subsequent to December 31, 2023. Property expenses from sold properties decreased $0.7 million due to properties sold subsequent to December 31, 2023. Property expenses from (re)developments increased $1.0 million primarily due to the substantial completion of developments. Property expenses from other remained relatively unchanged.