First Industrial Realty Q2 2026 Earnings Call Transcript

First Industrial Realty (NYSE: FR ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

02 per share. The company achieved significant leasing wins, including a full building lease in Central Pennsylvania and developments in South Florida, Dallas, and Philadelphia. 9%, and the company has addressed 80% of its 2026 rollovers with a cash rental rate increase of 39%. Acquisitions included a 161,000 square foot facility in Dallas and a 58-acre site in Baltimore, while notable sales included a $131 million land sale in Phoenix.

Management expressed confidence in market conditions with strong net absorption and moderating new deliveries, indicating optimism for future leasing activity. Full Transcript OPERATOR Good day and welcome to the First Industrial Realty Trust Second Quarter 2026 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Art Harmon, Senior Vice President, Investor Relations and Marketing. Please go ahead. Arthur Harmon, Senior Vice President, Investor Relations and Marketing Thank you, Dave. Hello everyone, and welcome to our call.

Before we discuss our second quarter 2026 results and our updated guidance for 2026, please note that our call may include forward-looking statements as defined by federal securities laws. These statements are based on management's expectations, plans, and estimates of our prospects. Today's statements may be time-sensitive and accurate only as of today's date, July 23, 2026. We assume no obligation to update our statements or the other information we provide.

Actual results may differ materially from our forward-looking statements, and factors which could cause this are described in our 10-K and other SEC filings. You can find a reconciliation of non-GAAP financial measures discussed in today's call in our Supplemental Report and our Earnings Release. com under the Investors tab. Our call today will begin with remarks by Peter Baccile, our President and Chief Executive Officer, and Scott Musil, Chief Financial Officer, after which we'll open it up for your questions.

Also with us today are JoJo Yap, Chief Investment Officer, Peter Schultz, Executive Vice President, Chris Schneider, Executive Vice President of Operations, and Bob Walter, Executive Vice President of Capital Markets and Asset Management. Now let me hand the call over to Peter. Peter Baccile, President and Chief Executive Officer Thank you, Art, and thank you all for joining us today. Our team delivered another excellent quarter, building upon the momentum that took shape in Q1.

Our confidence in leasing demand supporting new business growth has strengthened compared to earlier in the year and most certainly last year. We're seeing additional touring activity and enhanced decision-making overall, including for larger format spaces. Our team delivered some significant leasing wins in the quarter, including a full building lease for our 708,000 square foot building in Central Pennsylvania, as well as for a few of our developments which I'll detail shortly. 02 per share.

Scott will walk you through our guidance during his remarks. Turning to the overall market, industry fundamentals are trending positively with respect to net absorption, while the pace of new deliveries continues to moderate as expected. 5% at the end of the second quarter. Net absorption was strong at 85 million square feet, nearly doubling Q1 and significantly exceeding new deliveries of 48 million square feet.

The national construction pipeline ticked up modestly to 252 million square feet and is still well pre-leased at 38%. 9%, up 60 basis points from the first quarter, primarily driven by the 708,000 square foot Pennsylvania lease. Regarding our 2026 rollovers, we've now taken care of 80% by square footage, and our overall cash rental rate increase for new and renewal leasing for signed leases is 39%. Our cash rental rate guidance for 2026 commencements is 35% to 40%, which is an increase at the midpoint and a tightening of the range.

Moving now to development leasing, since last quarter's call we saw more broad-based success across several markets, inking an additional 433,000 square feet, bringing the total signings in the quarter to 643,000 square feet. First, we expanded our existing tenant into the remaining 31,000 square feet at First Pompano Logistics Center in South Florida. In Dallas, we signed a full building lease for the just completed 176,000 square footer at First Park 121 to a wire and cable supplier that supports the data center industry. Lastly, we fully leased our recently completed 226,000 square foot building at First Park Newcastle in the Philadelphia market.

With this full building lease, we're excited to announce the start of a second building in that park. The 613,000 square foot facility can