Analyst Ratings February 5, 2026

Truist Keeps Buy Rating on First Industrial, Cites Solid FFO and Dividend Hike

Industrial REIT posts modest FFO beat, issues 2026 guidance slightly below consensus while raising its dividend by 12.4%

By Caleb Monroe FR
Truist Keeps Buy Rating on First Industrial, Cites Solid FFO and Dividend Hike
FR

Truist Securities reaffirmed a Buy rating on First Industrial Realty Trust (NYSE: FR) and maintained a $65.00 price target after the REIT reported fourth-quarter funds from operations that modestly beat expectations. Management set 2026 NAREIT FFO guidance narrowly below consensus, highlighted strong cash blended lease spreads for leases commencing in 2026, and raised the quarterly dividend by 12.4%. The stock is trading near its 52-week high and carries a premium valuation.

Key Points

  • Truist Securities reiterated a Buy rating on First Industrial and maintained a $65.00 price target; shares traded at $58.44, about 2.9% below a 52-week high of $60.20.
  • Fourth-quarter FFO was $0.77 per share, beating both Truist’s estimate and the $0.76 consensus, driven by higher NOI from net investments but partly offset by increased G&A expenses.
  • Company set 2026 NAREIT FFO guidance of $3.09-$3.19 (midpoint $3.14), reported cash blended lease spreads tracking at +35% for leases commencing in 2026, and raised its quarterly dividend by 12.4%.

Truist Securities has reiterated its Buy rating on First Industrial Realty Trust (NYSE: FR) and kept its price objective at $65.00. The broker's stance follows the company's latest quarterly results and forward guidance, with the shares changing hands at $58.44 and trading roughly 2.9% below a 52-week peak of $60.20 - a level that suggests continuing investor confidence in the industrial REIT.

First Industrial reported fourth-quarter funds from operations (FFO) of $0.77 per share, narrowly outperforming both Truist’s internal estimate and the consensus figure of $0.76 per share. Truist attributed the slight outperformance primarily to stronger net operating income (NOI) from net investments, although the gain was partly offset by higher general and administrative expenses.

For 2026 the company provided a NAREIT FFO guidance range of $3.09 to $3.19 per share, with the midpoint of $3.14 coming in just below the consensus estimate of $3.15 per share. Management also reported that cash blended lease spreads on leases signed to date that will commence in 2026 are tracking at +35%, a metric that underlines robust pricing on newly contracted leases.

Truist highlighted potential upside to First Industrial's same-store cash NOI growth guidance of 5.0%-6.0%, and noted that the company has aligned with peer industrial REITs in reporting or guiding to continued healthy growth during this earnings season. At present, the company’s price-to-earnings ratio stands at 32.9, indicating that investors are paying a premium for its stable growth profile.

In a move signaling confidence in both cash flow and the company's payout capacity, First Industrial raised its quarterly common stock dividend by 12.4%. Company dividend data show a 13-year streak of dividend increases, a current yield of 3.05%, and dividend growth of 20.27% over the last twelve months.

Overall, Truist's maintained Buy rating, the modest FFO beat, the company’s 2026 guidance, the strong cash blended lease spreads, and the sizeable dividend increase present a mixed but constructive picture for the REIT: steady operational performance with measured guidance and a valuation that commands a premium from investors.


Data and metrics referenced in this report are taken from the company's disclosed quarterly results and the guidance provided by First Industrial, along with valuation and dividend figures reported alongside those results.

Risks

  • The midpoint of 2026 NAREIT FFO guidance ($3.14) is slightly below the consensus estimate ($3.15), creating execution risk if results do not meet investor expectations - affects the REIT and real estate sectors.
  • Higher general and administrative expenses partially offsetting NOI gains could pressure near-term margins and cash flow if expense trends continue - impacts corporate profitability and investor return metrics.
  • A premium valuation, reflected in a P/E ratio of 32.9, exposes investors to valuation risk should growth slow or guidance fall short - relevant to equity investors in industrial real estate and broader REIT allocations.

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