FR

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management reported a significant strengthening in leasing demand compared to earlier in the year, characterized by enhanced decision-making and increased touring activity. Performance was bolstered by a scarcity of large-format spaces (700,000 to 1.2 million square feet), where market activity has surged by approximately 127% year-over-year. The company successfully addressed 80% of its 2026 rollovers by square footage, achieving a 39% cash rental rate increase on signed leases. Strategic dispositions, including a $131 million land sale in Phoenix at nearly 3x industrial land values, provided significant capital recycling opportunities. Management attributes high rental spreads to a modernized portfolio and strategic positioning in infill, supply-constrained markets that have resisted broader market volatility. Demand is diversifying beyond traditional logistics, with notable growth in manufacturing, food and beverage, and automotive sectors, all up over 25% year-over-year. The FFO guidance midpoint was increased by $0.02 per share, reflecting confidence in development leasing and core portfolio performance. Occupancy is projected to dip to approximately 93.5% in Q3 due to move-outs and new development deliveries before rebounding to 95.5% by year-end. Guidance assumes 900,000 square feet of incremental development leasing in the fourth quarter from a total opportunity set of 1.7 million square feet. Management expects development starts to become more robust over the next 6 to 12 months as consistent leasing momentum validates new projects. The company is targeting new development starts in Pennsylvania, Florida, and Chicago, focusing on delivering product into unmet demand segments. Entitlement processes remain a significant barrier to entry, with management noting that securing approvals is becoming increasingly difficult even in historically easier markets. A 1.1 million square foot sublease in Pennsylvania by a 3PL tenant mitigated potential credit risk associated with the previous tenant, Boohoo. Data center developers are increasingly competing for industrial land, often paying significantly higher prices which may crowd out traditional industrial development. The company incurred $0.04 per share in advisory costs during the first quarter related to a contested proxy campaign, which is excluded from adjusted guidance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes Southern California is 'off the bottom' and starting a recovery as net absorption significantly exceeded new deliveries in Q2. While rents remain flat, historic lows in new construction starts are expected to support future market tightening. Management clarified that while they are pursuing data center conversions, these are long-term projects requiring power commitments and will not impact 2026 results. Data center-related demand is currently viewed as 'incremental' rather than a material driver of the core industrial leasing business. The company has a low funding requirement of $75 million for the remainder of the year, which will be covered by excess cash flow and existing lines of credit. Management emphasized that their $410 million speculative development cap is a limit, not a target, with a primary focus on project profitability over volume.

This article first appeared on GuruFocus. FFO (Funds From Operations): $0.82 per fully diluted share, up from $0.76 a year ago. Cash Same-Store NOI Growth: 6.7% for the quarter, excluding termination fees. In-Service Occupancy: 94.9%, up 60 basis points from the first quarter. Cash Rental Rate Increase: 39% for new and renewal leasing. Leasing Activity: 2.6 million square feet of leases commenced, including 1.1 million new, 1 million renewals, and 500,000 for developments and acquisitions. FFO Guidance for 2026: Increased midpoint by $0.02 per share to $3.08 to $3.16 per share. Average Quarter-End In-Service Occupancy Guidance: 94% to 95% for 2026. Cash Same-Store NOI Growth Guidance: 5.25% to 6.25% for 2026, an increase of 25 basis points at the midpoint. G&A Expense Guidance: $42 million to $43 million, excluding $5.6 million of proxy campaign costs. Warning! GuruFocus has detected 8 Warning Sign with FR. Is FR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Industrial Realty Trust Inc (NYSE:FR) reported strong leasing activity, including a full-building lease for a 708,000 square foot building in Central Pennsylvania. The company increased its FFO guidance midpoint by $0.02 per share, reflecting confidence in leasing demand and business growth. Net absorption in the industrial market was strong, nearly doubling from Q1, with national vacancy improving to 6.5%. The company achieved a cash rental rate increase of 39% for new and renewal leasing, with a guidance range of 35% to 40% for 2026. First Industrial Realty Trust Inc (NYSE:FR) successfully closed a $131 million land sale in Phoenix, achieving pricing nearly three times the industrial land values in that market. In-service occupancy dipped to 93.5% in Q3, with expectations to recover to 95.5% by year-end, indicating some volatility in occupancy levels. The company faces challenges in securing entitlements for new developments, which could impact future growth opportunities. Despite strong leasing activity, some markets, particularly in the mid-size range, still have available product, indicating uneven demand across different property sizes. The company has a significant amount of speculative development leasing to complete, with 900,000 square feet remaining for 2026. Data center developments are driving up land prices, adding competition for industrial land acquisitions. Q: Peter, your commentary is consistent with peers and brokers that things are improving. How is the current market condition shaping tenant discussions, especially with larger spaces being taken off the market? A: Peter Baccile, CEO: Absorption is up significantly, especially for larger spaces. Activity for spaces between 700,000 to 1.2 million square feet is up 127%, and for spaces over 1.2 million square feet, it's up 117%. This scarcity is driving quicker decision-making among tenants. Jojo Yap, CIO, added that this trend is evident in markets like Chicago and Dallas, where larger spaces are decreasing, prompting tenants to act faster. Q: How does the current demand translate to First Aurora, and what are your views on the Southern California market recovery? A: Peter Schultz, EVP - East Region: We have activity at First Aurora for both partial and full building users, with new prospects since the last call. The competitive set hasn't changed much, but we need tenants to make decisions. Jojo Yap, CIO, noted that Southern California is showing signs of recovery, with net absorption exceeding deliveries and starts at historic lows. Q: Can you clarify the occupancy guidance and the timing of lease-ups? A: Scott Musil, CFO: The 900,000 square feet of development leasing is expected primarily in the fourth quarter. Even if leases aren't signed, the FFO impact is minimal, about $0.01 per share. We made slight adjustments to core portfolio leasing assumptions, but we still forecast ending the fourth quarter with a 95.5% in-service occupancy rate. Q: What is your acquisition strategy, especially in markets like Texas and Pennsylvania where you've seen leasing success? A: Johannson Yap, CIO: We are always looking for quality acquisitions with good yields. In Dallas, we acquired a 161,000-square-foot facility at a 6% projected yield. We focus on markets where we have leasing success, ensuring acquisitions meet our investment quality and yield criteria. Q: How are you thinking about deploying your $410 million of speculative capital into development? A: Peter Baccile, CEO: The $410 million is a cap, not a target. We focus on profitability and delivering into unmet demand in specific markets. We avoid having too many projects in one park simultaneously, ensuring we meet demand where it's strongest. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in First Industrial Realty Trust, Inc.? Here are five stocks we like better. First Industrial Realty Trust beat second-quarter expectations with Nareit FFO of $0.82 per share, up from $0.76 a year ago, and raised the midpoint of its 2026 FFO guidance to $3.08-$3.16 per share. Excluding proxy-related advisory costs, guidance is even higher at $3.12-$3.20 per share. Leasing momentum improved materially, highlighted by a 708,000-square-foot full-building lease in Pennsylvania and several development leases across Dallas, South Florida and Philadelphia. In-service occupancy rose to 94.9%, and cash rental rate increases on signed new and renewal leases reached 39%. The company said industrial market fundamentals are improving, with stronger demand for large spaces and better absorption trends. It also added to its portfolio through a Dallas acquisition and a Baltimore infill development site, while selling Phoenix land and Detroit buildings at attractive prices. Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit First Industrial Realty Trust (NYSE:FR) reported higher second-quarter funds from operations and raised the midpoint of its 2026 outlook, citing stronger leasing demand, improved tenant decision-making and several notable leasing wins across its industrial portfolio. President and Chief Executive Officer Peter Baccile said the company “delivered another excellent quarter,” building on momentum from the first quarter. He said management’s confidence in leasing demand has strengthened compared with earlier in the year and “most certainly last year,” with more touring activity and better decision-making, including for larger spaces. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Win-Win Momentum Plays With Strong Dividend Yields “Our team delivered some significant leasing wins in the quarter, including a full building lease for our 708,000 sq ft building in Central Pennsylvania, as well as for a few of our developments,” Baccile said. Chief Financial Officer Scott Musil said Nareit funds from operations were $0.82 per fully diluted share in the second quarter, compared with $0.76 per share a year earlier. Cash same-store net operating income growth, excluding termination fees, was 6.7%. → 3 Photonics Companies Making Quantum Tech Possible Top Shipping Firms Driving Industry-Leading Revenue Growth Musil said the same-store NOI results were primarily driven by higher rental rates on new and renewal leasing, contractual rent increases and lower free rent, partially offset by lower average occupancy. The company raised its 2026 Nareit FFO guidance midpoint by $0.02 per share and narrowed its range to $3.08 to $3.16 per share. That figure includes $0.04 per share of advisory costs related to a contested proxy campaign incurred in the first quarter. Excluding those costs, First Industrial’s 2026 FFO guidance range is $3.12 to $3.20 per share, also up $0.02 at the midpoint. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Other guidance assumptions include average quarter-end in-service occupancy of 94% to 95% and cash same-store NOI growth before termination fees of 5.25% to 6.25%, an increase of 25 basis points at the midpoint. Musil said the company expects in-service occupancy to dip to around 93.5% at the end of the third quarter before ending the year at around 95.5%, assuming development leasing and other core portfolio leasing. Baccile said First Industrial ended the quarter with in-service occupancy of 94.9%, up 60 basis points from the first quarter, primarily due to the 708,000-square-foot lease in Pennsylvania. The company has addressed 80% of its 2026 rollovers by square footage, and cash rental rate increases for signed new and renewal leases were 39%. The company raised and tightened its 2026 cash rental rate guidance for commencements to 35% to 40%. During the second quarter, approximately 2.6 million square feet of leases commenced, including 1.1 million square feet of new leases, 1 million square feet of renewals and 500,000 square feet tied to developments and acquisitions with lease-up. Musil also provided a tenant credit update related to Debenhams, formerly Boohoo, saying a full-building sublease was signed for First Industrial’s 1.1 million-square-foot Pennsylvania property. The subtenant is a third-party logistics provider that was already a First Industrial tenant. Development leasing totaled 643,000 square feet signed in the quarter, including additional activity since the prior call. Baccile highlighted three deals: A 31,000-square-foot expansion with an existing tenant at First Pompano Logistics Center in South Florida, fully leasing the building. A full-building lease for a just-completed 176,000-square-foot building at First Park 121 in Dallas to a wire and cable supplier serving the data center industry. A full-building lease for a recently completed 226,000-square-foot building at First Park New Castle in the Philadelphia market. Following the New Castle lease, the company announced the start of a second building in that park. The planned 613,000-square-foot facility can accommodate up to four tenants, with an estimated investment of $77 million and an estimated cash yield above 8%. Baccile said broader industrial market fundamentals are improving. Citing CBRE data, he said national vacancy improved by 20 basis points to 6.5% at the end of the second quarter. Net absorption was 85 million square feet, nearly double the first quarter and above new deliveries of 48 million square feet. The national construction pipeline increased modestly to 252 million square feet and was 38% pre-leased. On the investment front, First Industrial acquired a recently completed 161,000-square-foot development in the Great Southwest submarket of Dallas for $26 million. The building is 50% leased, with a targeted cash yield of about 6%. The company also acquired a 58-acre infill development site in Baltimore’s BW Corridor for $39 million. The site is designed to accommodate three buildings totaling 629,000 square feet after entitlement and infrastructure work. During the Q&A session, Executive Vice President Peter Schultz said the site is zoned industrial and that the company views the entitlement process as “a matter of when, not if.” He said the site should be ready for construction around the end of 2028 or early 2029, with expected initial yields in the mid-7% range. On dispositions, First Industrial completed a $131 million land sale in Phoenix at $30 per land square foot, which Baccile said was “just shy of three times industrial land values in that market.” The company also sold four buildings in Detroit totaling 310,000 square feet for $29 million, leaving one 16,000-square-foot building in that market. During the question-and-answer portion of the call, analysts asked about improving demand and the availability of large industrial spaces. Baccile said activity for spaces between 700,000 and 1.2 million square feet was up 127%, while activity for spaces larger than 1.2 million square feet was up 117%. “You definitely have a scarcity value at the bigger spaces now,” Baccile said. He added that activity had also improved across other size ranges, though smaller spaces still had more alternatives available. Chief Investment Officer Jojo Yap said the dynamic is visible across Western markets as well as Chicago and Dallas, where tenants have fewer choices for the largest spaces and must make decisions more quickly. Schultz added that First Industrial had multiple prospects for both the Boohoo-related space and the 708,000-square-foot Pennsylvania lease. Executives also discussed Southern California, where Yap said second-quarter statistics suggest the market is “off the bottom” and in the early stages of recovery. He said gross absorption and net absorption exceeded deliveries, starts and projects under construction remained at historic lows, and rents were flat. Several analysts asked whether improving leasing conditions would prompt more development starts. Baccile said the company views its roughly $410 million of potential speculative development capital as a cap, not a target, and remains focused on profitability and market-by-market demand. “We don’t sit here and say, ‘Do we need to use that $400 million?’” Baccile said. “We sit here and say, ‘Where is the demand? Where is it not being met, where are we well-positioned to deliver a property that’s going to be competitive in that marketplace for the long term?’” He said development starts may be evaluated in Pennsylvania, Florida and a smaller project in the Chicago area, while Yap pointed to ongoing projects at First Arlington Commerce Center in Texas and First Park Miami totaling $70 million. Musil said First Industrial has about $75 million of development funding requirements for the second half of the year, with about half expected to be covered by excess cash flow after capital expenditures and dividends. The remainder can be funded with the company’s line of credit, which he said has a very low balance. Baccile closed the call by saying First Industrial remains optimistic about activity levels across development and portfolio availabilities, while maintaining its focus on long-term cash flow and shareholder value. First Industrial Realty Trust, Inc (NYSE: FR) is a publicly traded real estate investment trust focused on the ownership, operation and development of industrial real estate assets. The company specializes in light industrial, warehouse and distribution facilities that serve a broad range of end markets, including manufacturing, transportation and e-commerce. Through both acquisitions and ground-up developments, First Industrial seeks to assemble a diversified portfolio of strategically located properties that support its tenants' supply-chain needs. Core services provided by First Industrial include property leasing, asset management, redevelopment of obsolescent buildings and build-to-suit development for creditworthy users. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "First Industrial Realty Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Cash Same Store NOI Growth of 6.7% Cash Rental Rates Up 39% in 2Q26 39% Cash Rental Rate Increase on Leases Signed To Date Commencing in 2026 New 708,000 Square-Foot Lease at In Service Facility in Central Pennsylvania Signed 643,000 SF of New Leases for Development Projects in the Second Quarter Including 433,000 SF Since the April Results Call Commenced Development of First Park New Castle Building A, 613,000 SF in Philadelphia, Estimated Investment of $77 Million 2026 FFO Guidance Increased $0.02 at the Midpoint CHICAGO, July 22, 2026 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of logistics real estate, today announced results for the second quarter of 2026. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.58 in the second quarter, compared to $0.42 a year ago and second quarter funds from operations (FFO) was $0.82 per share/unit on a diluted basis, compared to $0.76 per share/unit a year ago. "Our second quarter was marked by strong leasing execution including our 708,000 square-foot facility in Central Pennsylvania and several development spaces including full-building deals at two recently completed projects," said Peter E. Baccile, First Industrial's president and chief executive officer. "Leasing traffic across our availabilities remains active and we continue to capture strong rental rate gains on our new and renewal leasing." Portfolio Performance In service occupancy was 94.9% at the end of the second quarter of 2026, compared to 94.3% at the end of the first quarter of 2026, and 94.2% at the end of the second quarter of 2025. In the second quarter, cash rental rates on commenced new and renewal leasing increased 39%. The Company has achieved a cash rental rate increase of approximately 39% on leases signed to date commencing in 2026 reflecting 80% of 2026 expirations by square footage. In the second quarter, cash basis same store net operating income before termination fees ("SS NOI") increased 6.7%, primarily reflecting increases in rental rates on new and renewal leasing, contractual rent escalations and lower free rent, partially offset by lower average occupancy. Portfolio and Development Leasing Highlights During the second quarter, the Company: Leased 100% of its 708,000 square-foot in service facility in Central Pennsylvania; commenced in the second quarter. Leased 100% of its 155,000 square-foot First Wilson Logistics Center II in the Inland Empire; commenced in the second quarter. Leased 56,000 square feet of its 198,000 square-foot First Park Miami Building 3 in South Florida; commenced in the second quarter. Leased 100% of its 226,000 square-foot First Park New Castle Building B in Philadelphia; commenced in the second quarter. Leased the remaining 31,000 square feet of its 60,000 square-foot First Pompano Logistics Center in South Florida; commenced in the second quarter. Leased 100% of its 176,000 square-foot First Park 121 Building F in Dallas; expected to commence in the third quarter. Investment and Disposition Highlights During the second quarter, the Company: Commenced development of First Park New Castle Building A in Philadelphia - a 613,000 square-foot facility designed to accommodate multiple tenants; $77 million estimated investment. Acquired a newly constructed 161,000 square-foot value-add building in Dallas for $26 million. Acquired a 58-acre land site in Baltimore for $39 million for a three-building project developable to 629,000 square feet. Closed a 100-acre income-producing land sale in Phoenix, as anticipated after the tenant exercised its purchase option in the first quarter; the sales price of $131 million represents approximately three times industrial land values. Sold four buildings in Detroit - 310,000 square feet; total of $29 million. Outlook for 2026 "Fundamentals exhibited signs of improvement in the second quarter, with net absorption outpacing moderating new deliveries resulting in lower market vacancy," said Mr. Baccile. "On the strength of our second quarter leasing wins, we increased the midpoint of our FFO guidance by $0.02 per share. We are excited about the growth opportunities within our current availabilities, in-process development projects and future investments." The following assumptions were used for guidance: Average quarter-end in service occupancy of 94.0% to 95.0%. SS NOI growth on a cash basis before termination fees of 5.25% to 6.25%, an increase of 25 basis points at the midpoint. Includes the incremental costs expected in 2026 related to the Company's completed and under construction developments as of June 30, 2026. In total, the Company expects to capitalize $0.08 per share of interest in 2026. General and administrative expense of $42.0 million to $43.0 million. This range excludes $5.6 million of costs related to a contested proxy campaign recognized in the first quarter. Guidance does not include the impact of any future investments, property sales, debt repurchases prior to maturity, debt issuances, equity issuances, or stock repurchases post the date of this press release. Conference Call First Industrial will host its quarterly conference call on Thursday, July 23, 2026 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (833) 890-3273, passcode "First Industrial". The conference call will also be webcast live on the Investors page of the Company's website at www.firstindustrial.com. The replay will also be available on the website. The Company's second quarter 2026 supplemental information can be viewed at www.firstindustrial.com under the "Investors" tab. FFO Definition First Industrial calculates FFO to be equal to net income available to common stockholders, unitholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain (or plus loss) on sale of real estate, adjusted for any associated income tax provisions or benefits. Similar adjustments are made for our share of net income from an unconsolidated joint venture. This calculation methodology is in accordance with the NAREIT definition of FFO. About First Industrial Realty Trust, Inc. First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. In total, we own and have under development approximately 72.1 million square feet of industrial space concentrated in 15 target MSAs as of June 30, 2026. For more information, please visit us at www.firstindustrial.com. Forward-Looking Statements This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors that could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically, including impacts and uncertainties arising from trade disputes and tariffs on goods imported to or exported from the United States; changes in legislation/regulation (including laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; our ability to qualify and maintain our status as a real estate investment trust; the availability, cost and attractiveness of financing (including both public and private capital), increases in or prolonged periods of elevated interest rates, and our ability to raise equity capital on attractive terms; the availability and attractiveness of terms of debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; changes in the competitive environment in which we operate, including changes in supply, demand and valuation of industrial properties and land in our current and potential markets; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to successfully integrate acquired properties; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreases in rental rates or increases in vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up timelines; uncertainty and economic impacts of pandemics, epidemics or other public health emergencies or fear of such events; risks associated with cybersecurity breaches, cyberattacks, intrusions or other significant disruptions of our information technology networks or systems; potential natural disasters and other catastrophic events, including acts of war or terrorism; insufficient or unavailable insurance coverage; technological developments, particularly those affecting supply chains and logistics; litigation risks, including costs associated with prosecuting or defending claims and potential adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described in Item A, "Risk Factors" and elsewhere in our annual report, on Form 10-K for the year ended December 31, 2025, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and public filings with the Securities and Exchange Commission (the "SEC"). We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements except as may be required by law. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC. A schedule of selected financial information is attached. (a) Includes $5,570 of advisory costs related to a contested proxy campaign recognized in the first quarter of 2026. Excluding these costs, basic and diluted EPS would have been $1.70 and basic and diluted FFO per share/unit would have been $1.54 and $1.53, respectively, for the six months ended June 30, 2026. (d) Investors and analysts in the real estate industry commonly use funds from operations ("FFO"), net operating income ("NOI"), adjusted EBITDA and adjusted funds from operations ("AFFO") as supplemental performance measures. While we consider net income, as defined by GAAP, the most appropriate measure of our financial performance, we acknowledge the relevance and widespread use of these supplemental performance measures for evaluating performance and financial position in the real estate industry. FFO principally adjusts for the effects of GAAP depreciation and amortization of real estate assets to account for the inherent assumption that real estate asset values rise or fall with market conditions. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA further evaluates the ability to incur and service debt, fund dividends and meet other cash obligations. AFFO provides a tool to further evaluate the ability to fund dividends, adjusting for additional factors such as straight-line rent and certain capital expenditures. These supplemental performance measures are commonly used in various financial analyses including ratio calculations, pricing multiples/yields and returns and valuation metrics used to measure financial position, performance and value. We calculate our supplemental measures as follows: FFO is calculated as net income available to common stockholders, unitholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain (or plus loss) on sale of real estate, adjusted for any associated income tax provisions or benefits. Similar adjustments are made for our share of net income from an unconsolidated joint venture. This calculation methodology is in accordance with the NAREIT definition of FFO. NOI is calculated as total property revenues minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses. Adjusted EBITDA is calculated as NOI plus equity in FFO from our investment in joint venture (net of noncontrolling interest) and minus general and administrative expenses. AFFO is calculated as adjusted EBITDA minus interest expense, capitalized interest and overhead, plus amortization of debt discounts and hedge costs, minus straight-line rent, amortization of above (below) market leases, lease inducements and provision for income taxes allocable to FFO or plus income tax benefit allocable to FFO, plus amortization of equity based compensation and minus non-incremental capital expenditures. Non-incremental capital expenditures refer to building improvements and leasing costs required to maintain current revenues plus tenant improvements amortized back to the tenant over the lease term. Excluded are first generation leasing costs, capital expenditures underwritten at acquisition and development/redevelopment costs. FFO, NOI, adjusted EBITDA and AFFO do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available for debt repayment or dividend payments. They should not be considered substitutes of GAAP measures such as net income, cash flows or liquidity measures. Furthermore, the methodologies used to calculate these measures may vary across real estate companies, limiting comparability. We consider cash basis same store NOI ("SS NOI") to be a useful supplemental measure of our operating performance. We believe SS NOI enhances the comparability of a company's real estate portfolio to that of other real estate companies. Same store properties are properties that were owned and placed in service prior to January 1, 2025 and held as an in service property through the end of the current reporting period including certain income-producing land parcels, and developments and redevelopments that were placed in service prior to January 1, 2025 (the "Same Store Pool"). Properties acquired with occupancy of at least 75% at acquisition are placed in service, unless we anticipate tenant move-outs within two years of ownership would reduce occupancy below 75%, in which case such properties are placed in service upon the earlier of reaching 90% occupancy or twelve months after tenant move out. Properties acquired with less than 75% occupancy are placed in service upon the earlier of reaching 90% occupancy or one year following acquisition. Developments, redevelopments and acquired income-producing land parcels for which our ultimate intent is to redevelop or develop are placed in service upon the earlier of reaching 90% occupancy or one year after construction completion. We define SS NOI as NOI, less NOI from properties not in the Same Store Pool, and further adjusted to exclude the impact of straight-line rent, the amortization of above (below) market rent and the impact of lease termination fees. These items are excluded because we believe excluding them provides a more meaningful reflection of cash-basis rental growth and allows for a more consistent year-over-year analysis of property-level performance. SS NOI does not reflect general and administrative expense, interest expense, depreciation and amortization, income tax benefit and expense, gains and losses on the sale of real estate, equity in income or loss from joint venture, joint venture fees, joint venture development services expense, capital expenditures and leasing costs. SS NOI should not be considered an alternative to net income or cash flows from operations as defined by GAAP, nor should it be used as a substitute in evaluating our liquidity or overall operating performance. Additionally, our method for calculating SS NOI may differ from those used by other real estate companies, limiting comparability. View original content to download multimedia:https://www.prnewswire.com/news-releases/first-industrial-realty-trust-reports-second-quarter-2026-results-302832599.html

CHICAGO, July 7, 2026 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE: FR), a leading fully integrated owner, operator and developer of logistics real estate, will host its second quarter 2026 results conference call on Thursday, July 23, 2026 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (833) 890-3273, passcode "First Industrial". The conference call will also be webcast live on the Investors page of the Company's website at www.firstindustrial.com. First Industrial's second quarter 2026 results will be released on Wednesday, July 22, 2026 after market close and will be available on the Company's website. A replay of the conference call will be available shortly after the call through July 30, 2026. For the replay, please dial (855) 669-9658 and enter passcode 7188468. The replay will also be available on the Company's website. About First Industrial Realty Trust, Inc. First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. In total, we own and have under development approximately 71.6 million square feet of industrial space concentrated in 15 target MSAs as of March 31, 2026. For more information, please visit us at www.firstindustrial.com. Forward-Looking Statements This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors that could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically, including impacts and uncertainties arising from trade disputes and tariffs on goods imported to or exported from the United States; changes in legislation/regulation (including laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; our ability to qualify and maintain our status as a real estate investment trust; the availability, cost and attractiveness of financing (including both public and private capital), increases in or prolonged periods of elevated interest rates, and our ability to raise equity capital on attractive terms; the availability and attractiveness of terms of debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; changes in the competitive environment in which we operate, including changes in supply, demand and valuation of industrial properties and land in our current and potential markets; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to successfully integrate acquired properties; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreases in rental rates or increases in vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up timelines; uncertainty and economic impacts of pandemics, epidemics or other public health emergencies or fear of such events; risks associated with cybersecurity breaches, cyberattacks, intrusions or other significant disruptions of our information technology networks or systems; potential natural disasters and other catastrophic events, including acts of war or terrorism; insufficient or unavailable insurance coverage; technological developments, particularly those affecting supply chains and logistics; litigation risks, including costs associated with prosecuting or defending claims and potential adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described in Item A, "Risk Factors" and elsewhere in our annual report, on Form 10-K for the year ended December 31, 2025, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and public filings with the Securities and Exchange Commission (the "SEC"). We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements except as may be required by law. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC. View original content to download multimedia:https://www.prnewswire.com/news-releases/first-industrial-realty-trust-to-host-second-quarter-2026-results-conference-call-on-july-23-302819813.html

First Industrial Realty Trust, Inc. reported first-quarter 2026 results showing revenue of US$194.83 million and net income of US$143.1 million, and in April 2026 issued full-year 2026 net income guidance of US$2.32–US$2.42 per share while declaring a quarterly dividend of US$0.50 per share payable on July 20, 2026. Alongside these financial updates, shareholders at the 2026 Annual Meeting strongly backed the existing board, approved executive pay and auditor ratification, and the company expanded director and insider equity incentives, underscoring alignment between governance, management incentives and long-term owners. We’ll now examine how First Industrial’s stronger first-quarter earnings and higher 2026 net income guidance may influence its existing investment narrative. Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. To own First Industrial Realty Trust, you need to believe its U.S. logistics portfolio can keep attracting tenants at healthy rents while maintaining disciplined development and balance sheet management. The latest Q1 2026 beat and higher full year net income guidance support the near term earnings catalyst, though part of the jump reflects one off gains, which may temper how much weight investors put on a single quarter. The reaffirmed US$0.50 quarterly dividend, following a 12.4% increase earlier in 2026, ties recent earnings strength directly to cash returns for shareholders. This matters in the context of activist pressure and a new US$250 million buyback authorization, as both capital return and governance changes sit alongside earnings as key short term drivers of the story. Yet, despite these positives, investors should be aware that reliance on one off gains and earnings forecasts that point to future declines could... Read the full narrative on First Industrial Realty Trust (it's free!) First Industrial Realty Trust's narrative projects $920.3 million revenue and $282.7 million earnings by 2029. This requires 7.3% yearly revenue growth and a $59.6 million earnings decrease from $342.3 million today. Uncover how First Industrial Realty Trust's forecasts yield a $66.93 fair value, a 8% upside to its current price. Three fair value estimates from the Simply Wall St Community range from US$47.88 to about US$67.36, showing very different views of upside. When you set those side by side with the recent earnings beat boosted by one off gains, it becomes even more important to compare multiple risk and return assumptions before forming your own view. Explore 3 other fair value estimates on First Industrial Realty Trust - why the stock might be worth as much as 8% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your First Industrial Realty Trust research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Our free First Industrial Realty Trust research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Industrial Realty Trust's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. AI is about to change healthcare. These 33 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 13 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

First Industrial reported Q1 Nareit FFO of $0.68 per share ($0.72 excluding $0.04 of advisory costs from a Land & Buildings proxy contest) and updated 2026 FFO guidance to $3.05–$3.15 per share, reflecting that incremental advisory expense. Management said it has addressed 61% of 2026 lease rollovers by square footage and achieved an overall cash rental rate increase of 41% on new and renewal leases, highlighted by a renewal of a 556,000‑sq‑ft Southern California building that exceeded guidance, while in‑service occupancy was about 94.3% and development leasing totaled 383,000 sq ft in the quarter. First Industrial expects a previously announced Phoenix land sale to close in June — a 100‑acre parcel purchased for $131 million (about $30 per land sq ft, ~three times local market values) with a disclosed cap rate of ~5.3%; proceeds are slated to pay down the company’s line of credit and slightly dilute guidance. Interested in First Industrial Realty Trust, Inc.? Here are five stocks we like better. Win-Win Momentum Plays With Strong Dividend Yields First Industrial Realty Trust (NYSE:FR) reported first-quarter 2026 Nareit funds from operations (FFO) of $0.68 per fully diluted share, unchanged from the same period a year earlier, as the industrial REIT highlighted continued progress on lease rollovers, development leasing activity, and a pending land sale in Phoenix that management said will generate meaningful value. President and CEO Peter Baccile said industrial fundamentals “continued to steady” during the quarter. Citing CBRE data, Baccile noted national vacancy was stable at 6.7% at quarter end, with net absorption of 43 million square feet compared to 55 million square feet of new deliveries. He added that new supply remained “disciplined,” with muted starts of 39 million square feet and a national construction pipeline of 237 million square feet that is 39% pre-leased. → GE Vernova Beats Earnings by 790% as Data Center Demand Explodes Top Shipping Firms Driving Industry-Leading Revenue Growth Within First Industrial’s portfolio, Baccile said touring activity has increased for available space, and decision-making has accelerated for spaces under 200,000 square feet within the company’s development portfolio. He also said management has not seen “any discernible impact to leasing activity” from potential economic and demand consequences tied to conflict in the Middle East, while noting it remains a risk to monitor. In-service occupancy was 94.3% at quarter end, which management said was in line with expectations. → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? The Hottest Markets to Watch After the Fed’s 25 Bps Rate Cut First Industrial reported further progress addressing 2026 lease expirations. Baccile said the company has now “taken care of 61%” of 2026 rollovers by square footage, and that overall cash rental rate increases for new and renewal leasing were 41%. A key highlight was a renewal of the company’s “largest remaining 2026 expiration,” a 556,000-square-foot building in Southern California. Baccile said the cash rental rate change on that renewal “significantly exceeded the top end” of the company’s annual guidance range of 40%. Chief Investment Officer Jojo Yap declined to provide detailed lease economics on the call but characterized it as a “long-term” renewal and confirmed the cash rent change was “up more than 40%.” → 3M Stock Pulls Back, But Catalysts Point to New Highs On development leasing, management said it signed 383,000 square feet across multiple markets, including a full-building lease at the 155,000-square-foot First Wilson II project in the Inland Empire. The company also executed several leases under 100,000 square feet in Chicago, South Florida, Central Florida, and Central Pennsylvania. In the Lehigh Valley, First Industrial leased a 54,000-square-foot space at the recently completed first phase of First Park 33. During the question-and-answer session, Baccile told Citi’s Craig Mailman that improved activity appears to be driven primarily by “broader industrial demand,” with 3PLs remaining active and manufacturing picking up, including “data center, tech, aerospace, etc.” Management said data center-related activity has helped “on the margin” by increasing the cost of waiting for tenants, but Baccile said it has not “created a wave of new lease signings.” Yap added that tenants supporting data center infrastructure—such as switchgear, semiconductors, and electrical supply—can drive incremental warehouse demand, though she said those users were not among the top tenant categories in the first quarter. Chief Financial Officer Scott Musil said first-quarter 2026 Nareit FFO was $0.68 per share, and that results were negatively impacted by $0.04 per share of advisory costs related to a contested proxy campaign initiated by Land & Buildings. Excluding those costs, Musil said FFO was $0.72 per share. Musil also pointed to higher general and administrative expenses tied to “accelerated expense related to an accounting rule” requiring the company to fully expense the value of granted equity-based compensation for certain tenured employees. Cash same-store NOI growth for the quarter, excluding termination fees, was 8.7%. Musil said the increase was driven primarily by higher rental rates on new and renewal leases, lower free rent, and contractual rent escalations, partially offset by lower average occupancy. During the quarter, approximately 2.4 million square feet of leases commenced, including 300,000 square feet of new leases, 2.0 million square feet of renewals, and 100,000 square feet tied to developments and acquisitions with lease-up, Musil said. Musil said full-year 2026 Nareit FFO guidance is now $3.05 to $3.15 per share, reflecting $0.04 per share of incremental advisory costs related to the Land & Buildings proxy contest. He added that the company’s 2026 FFO guidance range absent the advisory costs—$3.09 to $3.19 per share—was unchanged from the prior update. Management’s other major operating assumptions included: Average quarter-end in-service occupancy: 94% to 95%, reflecting approximately 1.3 million square feet of incremental development leasing and the 708,000-square-foot Central Pennsylvania vacancy expected to occur in the second half of the year. Cash same-store NOI growth (before termination fees): 5% to 6%. Capitalized interest: approximately $0.08 per share for the full year. G&A expense: $42 million to $43 million, excluding $5.6 million of incremental advisory costs related to the proxy contest. Musil said guidance assumes a previously announced Phoenix land sale will close in June. Baccile provided additional detail, stating the ground lessee of 100 acres in the “303 corridor” exercised an option to purchase the site for $131 million. Baccile said the proceeds equate to about $30 per land square foot, which he described as “more than three times industrial land values in that market.” Asked about the economics, Musil said the parcel is on the company’s balance sheet and that the company disclosed a cap rate of about 5.3% in its supplemental materials. He described the rent as “a great rent” when the land was leased “back a couple of years ago.” Musil also said the land sale creates “slight dilution” in guidance because it is a leased parcel and the company assumes proceeds will be used to pay down its line of credit. On the broader land bank, Baccile said management has reviewed all assets and narrowed potential value-enhancement opportunities to “about a handful,” noting efforts are underway to secure power, which he described as a lengthy process that could add value above industrial use if successful. Musil updated investors on a 3PL tenant on the company’s credit watch list, saying First Industrial reached an agreement that required a lump-sum payment of approximately 60% of the balance owed as of Dec. 31, 2025, which was received in March. The agreement also includes scheduled payments to pay off remaining past-due rent by the end of 2026. Musil said the situation had “no impact to FFO or same store” because the company believed the rent was collectible and did not reserve it in 2025. On another tenant topic, Musil said Boohoo remained current on rent, paying “right at the end of the month every month.” Executive Vice President Peter Schultz added that Boohoo continues to market its building for sublease, and he pointed to a “declining number” of available million-square-foot-plus buildings in Pennsylvania. Schultz said activity for large space remains strong, adding that “Amazon is about to ink two more million square foot plus buildings in Pennsylvania” as of the day of the call. Regarding market-by-market conditions, Schultz said Pennsylvania is among the company’s most active markets across a range of tenant sizes, while Denver has seen slower decision-making from larger users despite limited competitive supply; mid-size tenant activity in Denver remains active, he said. Schultz also cited “good activity in South Florida” and said Nashville activity is “a little less” than prior years but supply remains tight. Yap said Dallas, Houston, and Phoenix have shown significant gross leasing since the second half of 2025, and that gross leasing in the Inland Empire has been positive quarter-over-quarter, though she noted abundant availability in the 200,000- to 400,000-square-foot range. Management said it continues to evaluate new development starts but is mindful of market conditions and concentration. Baccile said the company is focused on markets including Dallas, Delaware (which he described as a South Philadelphia submarket), the Lehigh Valley, South Florida, and other markets where it has been active, while indicating Southern California is not a near-term development start market due to available space there. On capital allocation, Baccile said speculative development remains the “primary driver” of growth, with the company also pursuing acquisitions of cash-flowing buildings. He said historically the majority of capital has gone to development, with roughly 20% to 25% into cash-flowing buildings. Baccile also discussed the company’s share repurchase authorization, saying management believes dislocations that pressure the share price below long-term fundamentals can create value-enhancing opportunities to buy back stock, citing periods such as COVID and April 2022 when Amazon announced a pullback. First Industrial also reminded investors of upcoming property tours: an Inland Empire portfolio tour on May 12 and a Central New Jersey tour on June 4. First Industrial Realty Trust, Inc (NYSE: FR) is a publicly traded real estate investment trust focused on the ownership, operation and development of industrial real estate assets. The company specializes in light industrial, warehouse and distribution facilities that serve a broad range of end markets, including manufacturing, transportation and e-commerce. Through both acquisitions and ground-up developments, First Industrial seeks to assemble a diversified portfolio of strategically located properties that support its tenants' supply-chain needs. Core services provided by First Industrial include property leasing, asset management, redevelopment of obsolescent buildings and build-to-suit development for creditworthy users. The article "First Industrial Realty Trust Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. NAREIT Funds from Operations (FFO): $0.68 per fully diluted share for Q1 2026, unchanged from Q1 2025. Adjusted FFO: $0.72 per share, excluding $0.04 per share of advisory costs. Cash Same-Store NOI Growth: 8.7% for the quarter, excluding termination fees. Leasing Activity: 2.4 million square feet of leases commenced, including 2 million square feet of renewals. In-Service Occupancy: 94.3% at quarter end. Cash Rental Rate Increase: 41% for new and renewal leasing. Land Sale: Pending $131 million sale in Phoenix, expected to close in June. 2026 FFO Guidance: $3.05 to $3.15 per share, including advisory costs; $3.09 to $3.19 per share, excluding advisory costs. Average Quarter-End In-Service Occupancy Guidance: 94% to 95% for 2026. Cash Same-Store NOI Growth Guidance: 5% to 6% for 2026. G&A Expense Guidance: $42 million to $43 million, excluding $5.6 million of advisory costs. Warning! GuruFocus has detected 8 Warning Sign with FR. Is FR fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Industrial Realty Trust Inc (NYSE:FR) achieved significant development leasing wins and signed a key renewal in Southern California, exceeding their annual guidance range. The company is capturing significant value creation through a pending $131 million land sale in the Phoenix market, which is more than three times the industrial land values in that area. In-service occupancy at quarter-end was 94.3%, aligning with expectations and showcasing effective management of rollovers. Cash rental rate increase for new and renewal leasing was 41%, surpassing the top end of their guidance range. The company reported a strong cash same-store NOI growth of 8.7%, driven by increased rental rates and lower free rent. First quarter 2026 FFO per share was negatively impacted by $0.04 due to advisory costs related to a contested proxy campaign. Higher G&A costs affected FFO due to accelerated expenses related to equity-based compensation for certain tenured employees. The company maintained its full-year FFO and same-store NOI guidance despite strong Q1 results, indicating potential caution or offsetting factors. Decision-making for larger space users has been slow, particularly in markets like Denver, affecting leasing velocity. The company faces potential economic and demand risks from geopolitical conflicts, which could impact future leasing activity. Q: Can you discuss the improvement in touring activities and whether it's driven by data center demand or broader industrial demand? A: Most of the improvement is due to broader industrial demand, with 3PLs and manufacturing, including data center tech and aerospace, being active. It appears more like general industrial demand rather than being solely driven by data centers. - Peter Baccile, CEO Q: Could you provide an update on the Central Pennsylvania and Denver markets, particularly regarding leasing activity and prospects? A: In Denver, decision-making for larger users is slow, but there are interested prospects. In Central Pennsylvania, activity is very strong with several prospects for our 708,000 square foot building, mostly full-building users. - Peter Schultz, EVP - East Region Q: What is your strategy for starting new projects given your land bank concentration and current market conditions? A: We are evaluating opportunities for new starts, focusing on markets like Dallas, Delaware, Lehigh Valley, and South Florida. We are cautious about starting projects in Southern California due to existing availabilities. - Peter Baccile, CEO Q: Why did you maintain your full-year FFO and same-store NOI guidance despite strong Q1 performance? A: The slight positive impact from development leasing was offset by dilution from a projected land sale and adjustments to leasing assumptions. We regularly update our guidance based on these factors. - Scott Musil, CFO Q: How does the recent land sale in Phoenix inform your strategy for unlocking value in your land bank? A: We have identified a handful of opportunities where we might create significant value, focusing on securing power, which is a lengthy process. Success in this area could significantly enhance value. - Peter Baccile, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, April 23, 2026 at 11:00 a.m. ET President & Chief Executive Officer — Peter E. Baccile Chief Financial Officer — Scott A. Musil Executive Vice President, West Region — Johannson Yap Executive Vice President, East Region — Peter E. Schultz Senior Vice President, Capital Markets and Investor Relations — Art Harmon Executive Vice President & Chief Investment Officer — Christopher Schneider Need a quote from a Motley Fool analyst? Email [email protected] Peter Baccile: Thank you, Art, and thank you all for joining us today. I'd like to express my congratulations and gratitude to our team for their efforts in getting 2026 off to an excellent start. We delivered some significant development leasing wins and signed a key renewal in Southern California for our largest remaining 2026 expiration. . We're also capturing significant value creation via a pending $131 million land sale that I'll detail shortly. Turning to the overall market. Industry fundamentals continue to steady. According to CBRE, national vacancy was stable at 6.7% at the end of the first quarter. Net absorption was a solid 43 million square feet modestly below new deliveries of 55 million square feet. New supply nationally continued to be disciplined with starts remaining muted at 39 million square feet. The national construction pipeline is 237 million square feet and highly pre-leased at 39%. In our portfolio, overall touring activity has increased for our availabilities with decision-making accelerating for space sizes under 200,000 square feet within our development portfolio. With respect to potential economic and demand consequences from the conflict in the Middle East, thus far, we've seen no discernible impact to leasing activity, but this is a risk we'll continue to monitor. From a portfolio standpoint, our in-service occupancy at quarter end was 94.3%, in line with our expectations. Since our last earnings call, we made further progress on our 2026 rollovers. We've now taken care of 61% by square footage and our overall cash rental rate increase for new and renewal leasing is 41%. This includes our largest remaining 2026 expiration, the 556,000 square footer in Southern California for which we achieved a cash run rate change that significantly exceeded the top end of our annual guidance range of 40%. Moving now to development leasing. We saw some broad-based success across several markets, inking 383,000 square feet in total. These included a full building lease for our 155,000 square foot first Wilson 2 project in the Inland Empire. We also signed several sub-100,000 square foot leases in the markets of Chicago, South Florida, Central Florida as well as Central Pennsylvania. There, we leased a 54,000 square foot space at the recently completed first phase of First Park 33 in the Lehigh Valley. As I noted in my opening comments, we're pleased to share with you that the ground lessee of 100 acres of land in the 303 quarter in the Phoenix market exercised its option to purchase the site for a sales price of $131 million. The proceeds are approximately $30 per land square foot, which is more than 3x industrial land values in that market. We expect this transaction to close in June. Before I turn it over to Scott, I would like to remind you of two upcoming property tours we will be hosting. On May 12, we will tour our Inland Empire portfolio, and on June 4, we'll be touring our Central New Jersey assets. Please reach out to Art Harmon to register or for more information. With that, I'll turn it over to Scott. Scott Musil: Thank you, Peter. First quarter 2026 NAREIT funds from operations were $0.68 per fully diluted share compared to $0.68 per share in the first quarter of 2025. The first quarter 2026 FFO per share was negatively impacted by $0.04 per share of advisory costs related to the contested proxy campaign that was initiated by landed buildings. . Excluding these costs, our FFO per share was $0.72. As we noted on our fourth quarter earnings call, FFO in the first quarter was impacted by higher G&A costs due to accelerated expense related to an accounting rule that requires us to fully expense the value of granted equity-based compensation for certain tenured employees. Our cash same-store NOI growth for the quarter, excluding termination fees, was 8.7%. The results in the quarter were primarily driven by increases in rental rates on new and renewal leasing, lower free rent and contractual rent bumps, partially offset by lower average occupancy. Summarizing our leasing activity during the quarter, approximately 2.4 million square feet of leases commenced. Of these, 300,000 renew, 2 million were renewals and $100,000 were for developments and acquisitions with lease. Before I discuss guidance, let me update you on the 3PL tenant on our credit watch list. If you recall, we were collecting rent directly from a subtenant while working through the collection process. We are pleased to announce that we signed an agreement with the 3PL that required a lump sum payment of approximately 60% of the balance Otis at December 31, 2025, which we received in March. In addition, the agreement calls for scheduled payments to pay off the remaining past due rent by the end of 2026. Now moving on to our guidance. Our guidance range for 200 NAREIT FFO is down $3.05 to $3.15 per share, reflecting $0.04 per share of incremental advisory costs relating to the land and buildings contested proxy campaign. 2026 FFO guidance range, absent these advisory costs is $3.09 to $3.19 per share, which is unchanged compared to our last call. Our other major operating metric guidance assumptions are as follows: average quarter-end in-service occupancy of 94% to 95%. This range now reflects approximately 1.3 million square feet of incremental development leasing and the 708,000 square footer in Central Pennsylvania, all to occur in the second half of the year. Cash same-store NOI growth before termination fees of 5% to 6%. Guidance includes the anticipated 2026 costs related to our completed and under construction developments at March 31, for the full year 2026, we expect to capitalize about $0.08 per share of interest. Our G&A expense guidance range is $42 million to $43 million which excludes the $5.6 million of incremental advisory costs related to the content proxy campaign. And our guidance assumes that the aforementioned forecasted land sale in Phoenix will close in June. Let me turn it back over to Peter. Peter Baccile: We are optimistic about the activity levels we are seeing across our availabilities. As always, our team is focused on taking care of our customers gaining new ones and sourcing and executing on profitable investments to drive long-term cash flow and value for shareholders. . Operator, with that, we're ready to open it up for questions. Operator: [Operator Instructions] The first question comes from Craig Mailman with Citi. . Craig Mailman: Peter, you mentioned that touring activities improved, velocity in the 200,000 square feet has improved. Could you talk about other of your peers have talked about the data center adjacent demand. Could you talk about how much of this improvement is that segment of demand versus just either e-commerce or other broader industrial demand? Peter Baccile: I mean, from what we're seeing, most of it is just broader industrial demand, 3PLs continue to be very active. Manufacturing has picked up, and that includes data center tech aerospace, et cetera. So that's picked up but it looks more like broader demand for industrial than completely data center-driven. . Craig Mailman: And then -- sorry, Scott, I know you had mentioned the Central PA is now second half. Could you just talk about kind of the activity you're seeing at Denver and Central PA and kind of the prospects today versus maybe on the fourth quarter call? Scott Musil: Craig, it's Scott. I think you mentioned that we pushed it to the second half, the 708,000 square footer. That's always been in the second half of the year for our 4Q guidance call. So I wanted to clarify that -- and then I'll turn it over to Peter for an update on that vacancy in the Denver development. Peter Schultz: Craig, it's Peter. So in Denver, we continue to have interested prospects for our large vacancy there. Activity or decision-making, I would say, for larger users has been slow. Limited competitive supply. There were just 2 buildings that came back that will compete with us 1 from a business failure from another landlord and another from a lease expiration. But we continue to have prospects. They're just very slow in their decision-making. Smaller midsized tenants in Denver continue to be pretty active. Moving to Pennsylvania. To the second part of your question, Pennsylvania probably is our most active or certainly one of our most active markets across the country in terms of prospect activity across a range of sizes in the industries, including Peter's comments about 3PLs being very active. We have several prospects for our 708,000 square foot building in Central Pennsylvania . All but one of which are full building users and all of those continue to be engaged in discussions with us. Operator: The next question comes from Nick Thillman with Baird. Nicholas Thillman: Maybe touching a little bit, Peter, just thought process on starting some new projects here given the land bank is a little bit more heavy concentrated in, say, the i.e., you did sign a lease there. But just how you're viewing the landscape and just thought process on overall activity and if that would warrant some starts here in the back half of the year? Peter Baccile: Sure. We continue to evaluate opportunities for new starts. We're not going to guide on volume, of course. -- and the markets that we're focused on continue to be markets like Dallas, Delaware, which is really the South Philly submarket. Lehigh Valley PA, we have opportunity, South Florida -- and of course, we're continuing to try to acquire additional opportunity in the way of land and some of the other markets that we've been in and most active recently. So -- that's -- those are the markets we're focused on. Yes, we do have very good sites in Southern California, but those markets still have a number of availabilities. So they are markets where we're going to be starting projects anytime soon. Nicholas Thillman: And then, Scott, maybe just on the 3PL tenant. What was the lift in same-store from that within first quarter? And then can you just provide an update on what the bad debt expectations are for the full year? And I know boohoo, from the standpoint of just the credit agreement that you're covered for the full year, but just any updates on that kind of as well. Scott Musil: Okay. So the 3PL tenant, no impact to same-store -- we never reserve that tenant back in 2025 when we discussed it being on our watch list. We just made you guys aware of it. We always thought it was collectible. . We updated you on this call with the big payment we received and the agreement we reached with the tenant. So again, there's no impact to FFO or same-store related to that. On boohoo, they continue to be current on their rent. They pay right at the end of the month, every month. And Peter, I'll turn it over to you to update them on the sublease potential in this space. Peter Schultz: Thanks, Scott. Boohoo continues to market the building for sublet. There are a declining number of available 1 million square foot plus buildings in Pennsylvania activity. As I mentioned a few minutes ago, continues to be very good at that level as well. . Amazon is about to ink 2 more million square foot plus buildings in Pennsylvania as of today. So that's in process. And there are relatively few options. There likely will be some more starts in that size range given the strength of demand, but boohoo continues to market the building for sublet. Scott Musil: And Nick, you had one other part of the question, our bad debt expense was $100,000 in the first quarter compared to our guidance of $250,000, and we kept our guidance the same in 2Q, 3Q and 4Q at $250,000 per quarter. Operator: And the next question comes from Nicholas Yulico with Scotiabank. . Viktor Fediv: This is ViKtor Fed on with Nick. So you posted really strong Q1, and it seems like year-to-date activity is also solid. So just trying to understand what's driving your decision to maintain your full year FFO and same-store NOI guidance instead of raising it? Scott Musil: Okay. So Nick, this is Scott. We did lease up 400,000 square feet of development leasing. It did have slightly positive impact on our FFO compared to guidance. That's being offset by a couple of things. One is we have in our guidance, the land sale that's expected to close in June. That's the lease piece of land. So there's slight dilution from that sale because we're assuming the funds are used to pay on the line of credit. And the other piece of it is like what we do every quarter when we update guidance. We look at all of our leasing assumptions and guidance and we update them accordingly, and we make adjustments as we see fit. So that's the reconciliation. Viktor Fediv: Got it. And then a quick follow-up on the disposition of land, -- so how does this transaction kind of inform the time line and strategy for unlocking like similar higher and better use value for the rest of your land bank? Just how many similar opportunities you might have within your portfolio? Peter Baccile: Yes. As you know, we have taken a pretty close look at every asset that we own, land and income-producing real estate properties. And -- we've narrowed it down now to about a handful of opportunities where we think we might be able to push forward and create significant value. We're in the process now of trying to secure power. That's a very lengthy process. And so we'll see where that goes. If we're successful with that, that would add significant value above and beyond the value of the industrial value for those particular assets. Operator: And the next question comes from Todd Thomas with KeyBanc. Todd Thomas: First, I just wanted to follow up on the Central PA vacancy. I was just curious where things stand with the tenants that you're engaged with the regarding a lease or a sale is a sale still a potential outcome that's being contemplated? Peter Schultz: Todd, it's Peter. All the prospects we're engaged with or for lease only today. Todd Thomas: Okay. And then you talked about the increase in demand from tenants looking for space 200,000 square feet or less, that generally aligns with some of the more recent development starts. And I'm just wondering what the holdback is from increasing starts here a little bit more meaningfully. What are you sort of looking for in order to increase development start a bit further? Peter Baccile: Yes, that's a market-by-market question. For example, as you know, we've got a number of availabilities in South Florida. We also have a number of opportunities to -- for new starts there. We want to make sure that we're not too concentrated with development in any one market at 1 time. And we just completed the project in the first phase of the project. in Central Pennsylvania. And that we've signed a small lease, a 54,000 square foot lease there. We'd like to see a little bit more leasing there before we begin Phase II. So it's really more of a concentration question. Operator: And the next question comes from Michael Carroll with RBC Capital Markets. . Michael Carroll: Scott, I wanted to circle back on your comments regarding the land sale. I mean how much rent is the JV paying on that land today? I mean just given the sale is 3x the industrial land value, I think that the corresponding cap rate would be pretty low and not dilutive to earnings. Scott Musil: Well, it's not in the JV. This is on balance sheet. And in the supplemental Mike, if you look, we disclosed the cap rate, it's about a 5.3% cap rate. We got a great rent from the tenant when we leased the land to them back a couple of years ago. Dave Rodgers: Okay. And then I just wanted to confirm, too, that you didn't change the expected timing of the 1.3 million square feet remaining development leasing in the PA space. Those are still the same timing as it was in the prior guidance that you provided in 4Q? I believe it was, but I just wanted to confirm that. Scott Musil: That's correct. The only difference is the development leasing in the fourth quarter was $1.7 million. Now it's $1.3 million, and the decline has to do with the 400,000 square foot of development leases that we signed. . Operator: The next question comes from Rich Anderson with Cantor Fitzgerald. . Richard Anderson: So on the release 556, Kay, can you go through the economics of that transaction? I don't know if that's been provided some place, if I missed it, I apologize. . Peter Baccile: So John, do you want to cover that? . Johannson Yap: We can really go through the lease rate or the economics. But I can tell you, it's long term, we're very happy about the long-term renewal -- the space is very critical to the tenant, and it significantly exceeds the high end of our rent change guidance of 40%. . Richard Anderson: Okay. So okay. up more than 40%. Is that right? . Art Harmon: Yes. Yes. . Richard Anderson: Okay. Second, I asked this question on EastGroup, I kind of buttered the question and see if I could do it better here. On the -- on the data center demand that you're seeing, I'm wondering how siloed that is in the confines of your broader business. I mean, to what degree is the data center demand sort of informing your core tenants, your kind of consumption-oriented tenants. -- and telling them I better act now because space is getting taken by this other way of using industrial space. And from your point of view, how does it change your strategy from a development point of view? Does it does First Industrial have to go about things differently depending on the customer, whether it's a supplier or it's a consumption-oriented or e-commerce or whatever, like I'm curious how this is disruptive in any way or it's just pure new demand, and that's -- it's as simple as that. Peter Baccile: We've talked in the past about what would be a catalyst for tenants to begin to make decisions faster. The decision-making now for a couple of years has been fairly slow, especially on the kind of larger spaces. And that -- the topic that you're discussing does create a cost to waiting. So it does help on the margin. The other topic, of course, is power. And while data centers need a lot of power, warehouses need their fair share as well. So that's also a topic. So these are both helpful on the margin to get tenants to make decisions sooner. But it hasn't really created a wave of new lease signings. Peter and Joe, do you want to add anything to that? . Peter Schultz: The only other thing I'd add to that, Rich, is there is a little bit of incremental demand as we commented earlier, from tenants that are supporting the construction of data centers and infrastructure. So we are seeing a little bit of that, but I wouldn't call it material to the overall demand profile. Johannson Yap: Just to add just a little bit more detail there. If you look at the data center development, there's a lot of infrastructure-related switch gear, semiconductor, hikes, electrical supply, a lot of that and that has to be manufactured and distributed. And data center involved businesses need space to either distribute that equipment start at equipment and fulfill that equipment in or out of place in the U.S. So at the end of the day, they need warehouses where they can store these goods or do some light assembly. So that is the incremental demand that both Peter have mentioned. But if you look at the Q1, '26 they are not the biggest users. In fact, I think they're growing, but that didn't even make the top 10. The biggest ones are the 3PLs, consumer goods, like Peter mentioned, broad-based construction and food and beverage. Richard Anderson: I guess just to finish the question. From your point of view, when do you need -- if you're building something spec, when do you need to know that you're going to have an alternative user in the building? And how does that inform your development process? Or can you just -- or do you not need to know necessarily any specific time frame? . Peter Schultz: That's not going to change our process or our philosophy around the quality location features and functionality that we build. . Operator: And the next question comes from Caitlin Burrows with Goldman Sachs. . Caitlin Burrows: Maybe it lines up with the markets you mentioned you'd be most interested in building. But can you go through which markets maybe three are strongest versus weakest today on demand and rents and what's driving that difference? Dave Rodgers: Do you want to talk about PA? . Peter Schultz: Sure. Caitlin, it's Peter. I would say, as I mentioned a couple of minutes ago, Pennsylvania is probably our most active market from a tenant perspective across really all size ranges reflective of the deal we signed in our just completed project in the Lehigh Valley. The activity we have on the 708, the activity from market participants for large buildings over 1 million square feet. Very, very active. We're seeing good activity in South Florida. We're seeing a little less activity in Nashville than we've seen in the last couple of years, but pretty tight from a supply standpoint. And as I mentioned, in Denver, slower decision-making from larger tenants. But overall, markets are performing well. along the East Coast, rents are stable and still trending up a little bit? So pretty good shape there. Jojo, you want to talk about the West. Johannson Yap: Yes. Thank you, Peter. If you look at gross leasing, Dallas, Houston and Phoenix have exhibited significant gross leasing. And that's been really continuing since the second half of '25 through Q1 of '26. What's most interesting is that gross leasing actually in the IE has been positive from Q-to-Q. And if you look at just activity from the large spaces over there, that's been pretty good in IE. But at the same time, in i.e., you have space ranges from 200,000 to 400,000 square feet is abundant in the market today that the -- basically the market has to digest antennas in that size range, 200 to 400 has quite a bit of choices. Caitlin Burrows: Got it. Okay. And then maybe to talk about SoCal a little bit more. So you mentioned that other leases you guys did with the rent spreads meaningfully above 40%. I guess, can you go through what you're seeing more broadly from a leasing spread perspective in SoCal, I imagine some are up, some are down. Is it mostly a function of lease vintage certain building space types act 1 way versus another. Just what's the range you're seeing there? Johannson Yap: Sure, sure. In terms of rent spreads, we will continue to see rent change, positive rent change in SoCal because when you look at it, it has come down from the high of Q1 2023. But the growth from recolte coal significantly still exceeds that. So over the next couple of years, we will still see positive rent change. In terms of actual Q-to-Q -- quarter-to-quarter in terms of rent growth, it's been flat. There are some deals that actually have shown some growth, but overall, it's been flattish. Operator: The next question comes from Jason Belcher with Wells Fargo. Unknown Analyst: Wondering if you could talk a little bit about your investment or capital allocation preferences in the current environment and how you're thinking about deploying capital for, say, acquisitions versus development versus share repurchase? Peter Baccile: Sure. Look, we're going to -- the primary driver of our growth will continue to be speculative development. We're also always in the market, making offers for opportunities to acquire cash flowing buildings in the past that you've seen the majority of our capital go into development. So maybe 20% -- 25% cash flowing buildings. And with respect to the share purchase opportunity, the share authorization Look, again, the primary use of our capital is going to be to support the growth of development and acquisitions. But there have been several market disruptions in the recent past where our stock price has been pretty negatively impacted to levels that belie fundamentals and our long-term prospects. And we have a very strong belief in the long-term value of our shares. So in those periods of dislocation we've concluded that would be value-enhancing to shareholders to opportunistically acquire shares. You can figure out, I suppose, on your own, what that means in terms of allocation to that versus the other 2 categories. Unknown Analyst: Great. And then just as a follow-up. Can you give us an update on how your embedded rent increases are trending and what you're incorporating into newly signed leases. And if you can touch on any shifts you've seen there in recent quarters? Christopher Schneider: Yes. If you look at where we're at on the completed 2026 deals that we've signed the overall bumps are about 3.6%. And if you look at the entire portfolio as far as in-place funds in 2026, we're at about 3.4%. So we're still holding pretty strong. Scott Musil: And if you're asking about the rental increase side of it, we're still consistent with our cash run rate change guidance of 30% to 40% for 2026 is I think we -- as Peter mentioned in the script, I think we're at about 41% for the leases that we've signed already in 2026. The reason that's a little bit higher is that 556,000 square foot renewal that Jojo spoke about that was significantly higher than the top end of our 40% range. Operator: Our next question comes from Vince Tibone with Green Street Advisors. . Vince Tibone: Some of the development leasing this quarter was for smaller suites within larger buildings. Curious if that reflects any change in strategy and kind of willing to carve up some of these boxes have taken a little longer to lease into multi-tenant spaces or suites? Or was that always the business plan for those properties? . Peter Schultz: It's Peter. Yes, that was always the plan for those buildings. So they're all designed for multi-tenant use. Certainly, over the last several years, we've been fortunate to see some full building users. . But we always design flexibility into our buildings. As I mentioned on the question about our building in Central Pennsylvania for 708 just to contrast that size range really good activity there that we're seeing today, and there's a lot of activity for larger buildings from tenants in Pennsylvania and some of the other big markets. So I wouldn't take that tenant demand is limited to under 200,000 we built those buildings because we felt those pockets were underserved, and we're seeing the results of that. The Lehigh Valley building that Peter mentioned, we just completed and we've seen good activity there and already have our first deal signed. Vince Tibone: No, that's really helpful color. I appreciate that. And then maybe staying on development a bit. It seems that the 1 million square foot plus box is where you're seeing the most favorable kind of changes in supply/demand dynamics right now in most markets. . I'm curious, are you willing to kind of go spec at that ultra-large size range? I know you've done some of that in the past, but generally have been a little smaller billing size, like if demand stays strong for this ultra large box, could you pivot or don't go a bit more larger ultra large box when you're doing more some of these new spec deals?. Peter Baccile: Sure. I mean we're always looking to maximize value of our land. We continue to seek out new land investment opportunities and some of which would involve large-format properties -- large-format buildings. It's part of the game plan. As you know, we do own some sites in SoCal that could accommodate very, very large format buildings. And we continue to evaluate those in light of the economic realities and leasing realities of that market. Operator: The next question comes from Vikram Malhotra with Mizuho. . Vikram Malhotra: I guess just first one to clarify, you're ahead on your development lease-up. You've got good rent growth, like rent spreads that you cited and good visibility. . So I'm wondering two things that you can maybe be more specific, like one, why not move up the occupancy guide specifically like what's the offset to not moving that up given the leasing? And then can you be more granular on like why the guide didn't go up because even what you described, it would still suggest you should be trending at least $0.01 or $0.02 higher. Scott Musil: Vikram, this is Scott. And -- so the answer is, yes, we did pick up a little bit of FFO due to the 400,000 square feet of development leasing we announced -- that was offset by two items. One had to do with the projected land sale that we have in our guidance, that's a lease parcel. So when we sell that land parcel, we lose the NOI and we're paying down the line of credit. So there's a little bit of dilution there. And then the other item has to do with just our normal process of going through our lease availabilities and our leasing assumptions on a quarterly basis when we update guidance. We made assumptions to some of those -- we did not make changes, though, to the 1.3 million square feet of development and the 700,000 square feet that we have in our guidance. So it's more some changes in some of the quarter leases. So those are the pieces. Vikram Malhotra: But just to clarify, the occupancy piece, I don't think the land would sale would impact that, right? Like what offset the occupant? Is it just you've assumed lower real . Scott Musil: We made some slight adjustments to some core lease-up assumptions as well. And also keep in mind that occupancy, we provide a range to it and we're comfortable with that occupancy range. Vikram Malhotra: Got it. Okay. And then just maybe stepping back, you announced the buyback, you're doing use property tours. There's a change in sort of the Board as well. I'm just trying to understand, like can you walk through kind of each of these actions, like what are you sort of aiming for? There's obviously in the background, the quasi, I guess, activist that's pushing I'm just trying to understand like all these different actions, like are they related? Are they independent? What are driving those three things? Peter Baccile: A lot of topics in one question. Okay. So the whole topic around the new director, as you may know, we unexpectedly lost a director last year who passed away. Again, unexpectedly. At that point, we determined it would be prudent to go ahead and start a process for a new one. That process was extended on two occasions. First, to consider the candidacy of the LNB nominee, Pass nominee and then again to consider the canadacy of the two individuals that the L&B nominee suggested we talked to. So that whole process was well underway long before those conversations began. With respect to the share buyback, Look, we took a look at what happened to our stock in certain periods, okay, such as COVID, such as when Amazon announced they were pulling back in April of '22. The tariffs impact on the shares, less so the war in the Middle East. And when you look at those time periods, you see significant falloff in share price when the fundamentals and long-term prospects for our shares did not. And those are times that will continue to happen with the volatility that we have experienced and will continue to experience. And so it just simply makes sense to be in the market supporting the long-term value of our shares during those time periods. That, again, is a conversation that we have had with the Board for a long time. I've now forgotten the rest of your question. Vikram Malhotra: Property tour . Peter Baccile: Property tours. I would say, look, yes, we want to do whatever we can to get the word out on not only the transformation that we have completed, but also what's going on right now in some of our markets, we want you guys to be able to get to know our market leaders it just makes sense to take the opportunity to enhance shareholder engagement. . Operator: The next question comes from Brendan Lynch with Barclays. Brendan Lynch: You mentioned winning concessions contributed to the strong cash NOI growth in the quarter. Can you provide some more additional color on the current trends that you're seeing with concessions and what we should expect going forward? . Peter Schultz: Yes, Brendan, it's Peter. Generally speaking, we're seeing rent concessions at half of 1 month to 1 month of rent per year of term. And I would say that's drifted upward a little bit, which is more of a market by market and in some cases, asset by asset, and that's on new leases. TIs have been roughly the same, just depends upon the specific requirements of the tenant. Johannson Yap: And renewals have been pretty steady, still very low renewals and TIs -- in over renewals. . Brendan Lynch: Okay. Great. And another question. We've seen a lot of discussion recently about how brokers are going to be disintermediated by AI or at least the broker fees are going to be pressured lower -- what is your view on how that cost dynamic will evolve for First Industrial and for the industry in general going forward?. Peter Baccile: View on that, Joe. Johannson Yap: Yes. There's -- we don't see material impact right now on AI in terms of brokerage services. Again, when we hire brokers, I mean, we feel we hire the best. They bring value to the table in terms of our leasing efforts. We've seen more very quick flow, efficient flow of information back and forth in the industry. but brokers play a key role in the industrial leasing business. Peter Baccile: Yes. AI is going to provide a lot of data maybe these transactions happen more quickly for that reason, but intermediaries do bring value. And those negotiations, it always helps to have some distance. And we don't see the value of that community lessening over time because of AI. Operator: [Operator Instructions] Our next question comes from Michael Mueller with JPMorgan. Michael Mueller: I guess first, are the light assembly data center users that you've referenced -- are they generally shorter-term lease takers of space? Or are you seeing long-term leases there? And I guess at the completion of the data center, are they expected to kind of stick around or just that's the end of the lease may go away and space goes to a different type of user? Johannson Yap: Let me give you some color there, Michael. The light assembly, usually, they're long -- midterm to longer-term leases because the assembly of the equipment -- it depends on how much data center development, a particular tenant is fulfilling. And if you have a multi-facet for example, development going on that the tenant is falling, that would take anywhere for a couple of years to long term as much as 10 years. So it really depends on what they're fulfilling. It also depends on how many regions that particular prospect will be serving. As you know, data center development and data center buildings take a longer time than industrial buildings. So that's another piece of color there. But yes, so in terms of data center development, we cannot predict. You know as much as we do, if you look at the industry news and how much the hyperscalers 1 we will put out in the marketplace, and that's pretty -- it seems like a pretty long term, pretty huge dollars. Michael Mueller: Got it. Okay. And then just a quick second one. Are there any notable disposition expectations beyond the Phoenix sale that's expected to close this year or just expected to be nominal. Peter Baccile: No, there's really nothing else in the hopper that looks like that. . Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Peter Bacilli for any closing remarks. Peter Baccile: Thank you, operator, and thanks to everyone for participating on our call today. You've got -- if you have any follow-ups from our call, please reach out to our Scott or me, and have a great day. . Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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