RBC Capital has adjusted its valuation on First Industrial Realty Trust, elevating the price target to $66.00 from $64.00 and retaining an Outperform recommendation on the industrial real estate investment trust. The change follows the company’s fourth-quarter 2025 financial announcement and reflects what the analyst firm described as better-than-anticipated leasing activity tied to its development pipeline.
At the time of RBC’s revision the stock was trading at $59.62, roughly 0.98% below its 52-week high of $60.79. RBC noted that the company’s prospects for earnings growth are primarily tied to the lease-up of projects that are either in process or recently completed.
Leasing outlook drives revision
RBC highlighted a clearer leasing trajectory at First Industrial, upgrading its expectation for the second half of 2026 to 1.7 million square feet of leasing activity, up from the firm’s previous estimate of 1.3 million square feet. The firm also pointed to a specific acceleration in central Pennsylvania, where First Industrial now anticipates leasing 708,000 square feet during the second half of 2026. RBC had earlier forecast that this leasing in central Pennsylvania would not occur until the first quarter of 2027.
Based on this revised leasing outlook, RBC slightly raised its internal estimates for the company, a move that underpinned the higher price target while leaving the Outperform rating intact.
Quarterly results support the outlook
First Industrial reported fourth-quarter 2025 earnings that topped analyst expectations. The company recorded earnings per share of $0.59, exceeding the forecasted $0.42 - a 40.48% beat. Revenue for the quarter came in at $188.4 million versus an anticipated $186.18 million. These results underscore the company’s ability to beat consensus on both EPS and top-line figures for the quarter.
Following the earnings release the stock moved higher, though the article does not detail the magnitude of the price change. Independently, InvestingPro data referenced by analysts shows First Industrial has delivered a 26.48% price return over the past six months, illustrating notable share-price appreciation in recent periods.
What this means for investors
The combination of a stronger leasing cadence for in-process and completed developments, the revised timing for a substantial central Pennsylvania lease, and the company’s recent earnings outperformance are the proximate factors driving RBC’s more bullish price target and maintained rating. Investors and market observers are likely to continue monitoring leasing execution and the pace at which development projects convert to stabilized cash flows to validate the higher estimates.
Disclosure