First Industrial Realty Trust (NYSE:FR) - Share price, News & Analysis

Q: What is the Fair Price of FR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FR ($48.49) is trading below our estimate of [[fair value]] ($85.8)

FR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	3/6
Financial Health	3/6
Dividends	3/6

FR Stock Overview

Rewards

Trading at 43.5% below our estimate of its fair value

Earnings are forecast to grow 8.58% per year

Earnings have grown 10.7% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year

First Industrial Realty Trust Competitors

EastGroup Properties

NYSE:EGP

US$7.1b

STAG Industrial

NYSE:STAG

US$5.7b

Terreno Realty

NYSE:TRNO

US$4.3b

Rexford Industrial Realty

NYSE:REXR

US$10.0b

Price History & Performance

Summary of all time highs, changes and price drops for First Industrial Realty Trust
Historical stock prices
Current Share Price	US$48.49
52 Week High	US$66.74
52 Week Low	US$45.80
Beta	0.95
1 Month Change	-9.90%
3 Month Change	-23.57%
1 Year Change	-7.62%
3 Year Change	29.24%
5 Year Change	70.08%
Change since IPO	105.25%

Recent News & Updates

Jun 23

Is Now The Time To Put First Industrial Realty Trust (NYSE:FR) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jun 13

First Industrial's Growth Outpaces Its Valuation

FR has strong growth ahead from both organic rent growth and development. A large land bank already owned allows FR to build at a significantly higher return than peers. Despite the growth runway, FR trades at a low multiple on FFO.

Shareholder Returns

	FR	US REITs	US Market
7D	-1.2%	-0.6%	-2.5%
1Y	-7.6%	-8.7%	-21.2%

Return vs Industry: FR exceeded the US REITs industry which returned -8.7% over the past year.

Return vs Market: FR exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is FR's price volatile compared to industry and market?
FR volatility
FR Average Weekly Movement	4.7%
REITs Industry Average Movement	4.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: FR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	162	Peter Baccile	https://www.firstindustrial.com

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers. Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. In total, we own and have under development approximately 64.1 million square feet of industrial space as of September 30, 2020.

First Industrial Realty Trust Fundamentals Summary

How do First Industrial Realty Trust's earnings and revenue compare to its market cap?
FR fundamental statistics
Market Cap	US$6.56b
Earnings (TTM)	US$244.79m
Revenue (TTM)	US$485.43m

26.1x

P/E Ratio

13.2x

P/S Ratio

Is FR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FR income statement (TTM)
Revenue	US$485.43m
Cost of Revenue	US$133.47m
Gross Profit	US$351.96m
Other Expenses	US$107.17m
Earnings	US$244.79m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.85
Gross Margin	72.50%
Net Profit Margin	50.43%
Debt/Equity Ratio	77.7%

How did FR perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

54%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is FR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FR. This is calculated by dividing FR's market cap by their current preferred multiple.
What is FR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$6.56b

FR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	16.9x
Enterprise Value/EBITDA	25.2x
PEG Ratio	3x

Price to Earnings Ratio vs Peers

How does FR's PE Ratio compare to its peers?

FR PE Ratio vs Peers

The above table shows the PE ratio for FR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	46x
EGP EastGroup Properties	36.7x	2.9%	US$7.1b
STAG STAG Industrial	25.6x	1.1%	US$5.7b
TRNO Terreno Realty	47.6x	10.8%	US$4.3b
REXR Rexford Industrial Realty	74.1x	20.7%	US$10.0b
FR First Industrial Realty Trust	26.1x	8.6%	US$6.6b

Forward PE

Price-To-Earnings vs Peers: FR is good value based on its Price-To-Earnings Ratio (26.1x) compared to the peer average (46x).

Price to Earnings Ratio vs Industry

How does FR's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: FR is good value based on its Price-To-Earnings Ratio (26.1x) compared to the US REITs industry average (31.2x)

Price to Earnings Ratio vs Fair Ratio

What is FR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.1x
Fair PE Ratio	39.4x

Price-To-Earnings vs Fair Ratio: FR is good value based on its Price-To-Earnings Ratio (26.1x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).

Share Price vs Fair Value

What is the Fair Price of FR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FR ($48.49) is trading below our estimate of fair value ($85.8)

Significantly Below Fair Value: FR is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: FR is poor value based on its PEG Ratio (3x)

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Future Growth

How is First Industrial Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FR's forecast earnings growth (8.6% per year) is above the savings rate (1.9%).

Earnings vs Market: FR's earnings (8.6% per year) are forecast to grow slower than the US market (13.6% per year).

High Growth Earnings: FR's earnings are forecast to grow, but not significantly.

Revenue vs Market: FR's revenue (11.3% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: FR's revenue (11.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if FR's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has First Industrial Realty Trust performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FR has a large one-off gain of $115.7M impacting its March 31 2022 financial results.

Growing Profit Margin: FR's current net profit margins (50.4%) are higher than last year (47.9%).

Past Earnings Growth Analysis

Earnings Trend: FR's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: FR's earnings growth over the past year (12.7%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: FR earnings growth over the past year (12.7%) underperformed the REITs industry 69.5%.

Return on Equity

High ROE: FR's Return on Equity (11%) is considered low.

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Financial Health

How is First Industrial Realty Trust's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FR's short term assets ($325.7M) exceed its short term liabilities ($210.3M).

Long Term Liabilities: FR's short term assets ($325.7M) do not cover its long term liabilities ($1.9B).

Debt to Equity History and Analysis

Debt Level: FR's net debt to equity ratio (75.8%) is considered high.

Reducing Debt: FR's debt to equity ratio has reduced from 106.9% to 77.7% over the past 5 years.

Debt Coverage: FR's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: FR's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

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Dividend

What is First Industrial Realty Trust current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FR's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: FR's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FR has been paying a dividend for less than 10 years.

Growing Dividend: FR's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53.9%), FR's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.9%), FR's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure

CEO

Peter Baccile (60 yo)

5.83yrs

Tenure

US$5,242,451

Compensation

Mr. Peter E. Baccile has been President of First Industrial Realty Trust, Inc since September 2016, Chief Executive Officer since December 2016 and its Director since 2016. Mr. Baccile serves as President,...

CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD5.24M) is below average for companies of similar size in the US market ($USD8.35M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FR's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: FR's board of directors are considered experienced (5.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31