First Industrial Realty Trust Inc (NYSE: FR)

Sector: Real Estate Industry: REIT - Industrial CIK: 0000921825
Market Cap 7.95 Bn
P/B 2.97
P/E 32.11
P/S 10.93
ROIC (Qtr) 5.35
Div Yield % 2.96
Rev 1y % (Qtr) 7.30
Total Debt (Qtr) 2.57 Bn
Debt/Equity (Qtr) 0.96
Add ratio to table...

About

First Industrial Realty Trust, Inc. (FR), a Maryland corporation established in 1993, operates as a self-administered and fully integrated real estate investment trust (REIT) in the industrial real estate sector. Its primary business activities revolve around the acquisition, development, management, sale, and redevelopment of industrial properties, primarily in the United States. The company's main source of revenue is generated through leasing its industrial properties to a diverse range of tenants, focusing on bulk and regional warehouses, as...

Read more

Investment thesis

Bull case

  • Operating cash flow of 461.34M provides exceptional 27.73x coverage of minority interest expenses 16.64M, showing strong core operations.
  • Strong operating cash flow of 461.34M provides 11x coverage of SG&A expenses 41.95M, showing efficient operational cost management.
  • Operating cash flow of 461.34M provides strong 2.48x coverage of operating expenses 185.94M, showing operational efficiency.
  • Strong tangible asset base of 5.69B provides 87.33x coverage of acquisition spending 65.13M, enabling strategic growth.
  • Operating cash flow of 461.34M exceeds receivables of 192.94M by 2.39x, demonstrating excellent collection efficiency.

Bear case

  • Operating cash flow of 461.34M barely covers its investment activities of (524.18M), with a coverage ratio of -0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 461.34M provides thin coverage of dividend payments of (231.22M) with a -2 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 78.03M provide limited coverage of acquisition spending of 65.13M, which is 1.20x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (128.91M) provides weak coverage of capital expenditures of 590.25M, with a -0.22 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 347.61M show weak coverage of depreciation charges of 148.94M, with a 2.33 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the REIT - Industrial
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PLD Prologis, Inc. 131.57 Bn 39.60 14.97 35.04 Bn
2 PSA Public Storage 52.97 Bn 33.41 10.98 10.25 Bn
3 EXR Extra Space Storage Inc. 15.99 Bn 113.72 34.08 13.66 Bn
4 LINE Lineage, Inc. 10.60 Bn -59.87 1.98 7.77 Bn
5 EGP Eastgroup Properties Inc 10.17 Bn 39.51 14.10 1.63 Bn
6 REXR Rexford Industrial Realty, Inc. 8.74 Bn 43.69 8.72 3.25 Bn
7 FR First Industrial Realty Trust Inc 7.95 Bn 32.11 10.93 2.57 Bn
8 STAG STAG Industrial, Inc. 7.19 Bn 26.29 8.50 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.82 1.14
EV to Cash from Ops. EV/CFO 22.39 24.26
EV to Debt EV to Debt 4.02 3.22
EV to EBIT EV/EBIT 29.72 50.75
EV to EBITDA EV/EBITDA 22.62 19.38
EV to Free Cash Flow [EV/FCF] EV/FCF -80.15 -0.63
EV to Market Cap EV to Market Cap 1.30 1.57
EV to Revenue EV/Rev 14.21 12.09
Price to Book Value [P/B] P/B 2.97 2.55
Price to Earnings [P/E] P/E 32.11 22.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.07 -0.46
Dividend Payout Ratio % Div Payout % (Qtr) 95.20 34.94
Dividend per Basic Share Div per Share (Qtr) 1.78 3.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -182.94 25.32
Interest Coverage Int. cover (Qtr) 4.10 3.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -352.29 -38.11
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 50.98 19.56
Dividend Growth (1y) % Div 1y % (Qtr) 20.27 41.56
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.23 27.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.94 9.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.70 22.14
EBT Growth (1y) % EBT 1y % (Qtr) -10.52 19.88
EPS Growth (1y) % EPS 1y % (Qtr) -13.82 14.36
FCF Growth (1y) % FCF 1y % (Qtr) -158.06 -604.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.02 3.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.22 0.34
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.96 1.46
Interest Cover Ratio Int Coverage (Qtr) 4.10 3.92
Times Interest Earned Times Interest Earned (Qtr) 4.10 3.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 68.30 67.77
EBIT Margin % EBIT Margin % (Qtr) 47.81 40.11
EBT Margin % EBT Margin % (Qtr) 36.13 24.24
Gross Margin % Gross Margin % (Qtr) 73.70 76.41
Net Profit Margin % Net Margin % (Qtr) 34.00 22.54