First Industrial: Is It A Buy Following Another Quarter Of Record Rental Growth?

Summary

• First Industrial reported strong Q2 results, which included another quarter of record cash rental growth.
• Results were also accompanied with positive revisions to expectations for full-year FFO and cash rental growth.
• Despite the strong growth rates, the company appears to be facing little pushback, as assessed through occupancy and retention rates.
• FR also continues to make positive progress in their speculative development pipeline.
• Despite the ongoing strength, I continue to view the stock neutrally and see shares best left on "hold".

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Posting back-to-back record rental growth is no easy feat. But First Industrial (NYSE:FR) is making it look easy. Based on the post-earnings share price decline, markets appear skeptical it can last. If markets are correct, FR could be

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.