First Industrial Realty: The Speculative Exposure Still Warrants A Higher Risk Premium

Justin Purohit
2.3K Followers

Summary

  • First Industrial Realty Trust continues to benefit from strong market fundamentals in the industrial real estate sector.
  • Vacancy rates that are averaging 3% nationally and even lower in some of their strongest markets have enabled the company to realize rent spreads well in excess of 20%.
  • The robust earnings growth has translated to continued dividend growth for existing shareholders.
  • Though shares could track higher in the periods ahead, their speculative exposure does warrant a higher risk premium in the current market environment.
Empty warehouse in logistic center.

Vanit Janthra

First Industrial Realty Trust (NYSE:FR) continues to post robust earnings results on favorable industry-wide demand drivers. Their operations are concentrated in 15 key logistics markets, with particular emphasis on some of the most supply-constrained markets in the country. A quarter of their

This article was written by

2.3K Followers
Providing timely and quick to the punch analysis of earnings and macro-related events across various sectors, with a focus on retail and real estate. I am a licensed CPA.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About FR Stock

SymbolLast Price% Chg
EPS
PE
Div Rate
Yield
Short Interest
Market Cap
Volume
Compare to Peers

More on FR

Related Stocks

SymbolLast Price% Chg
FR
--