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What changed in FIRST INDUSTRIAL REALTY TRUST INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of FIRST INDUSTRIAL REALTY TRUST INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+242 added−235 removedSource: 10-K (2026-02-11) vs 10-K (2025-02-14)

Top changes in FIRST INDUSTRIAL REALTY TRUST INC's 2025 10-K

242 paragraphs added · 235 removed · 206 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAs of December 31, 2024, we had 151 employees, 150 of whom are full-time employees. The average tenure of our workforce is approximately 12 years. We are an equal opportunity employer and, as such, promote an equitable workplace that acknowledges and values differences in race, gender, age, ethnicity, sexual orientation, gender identity, national origin, abilities and religious beliefs.
Biggest changeWe are an equal opportunity employer and, as such, promote an equitable workplace that acknowledges and values differences in race, gender, age, ethnicity, sexual orientation, gender identity, national origin, abilities and religious beliefs, consistent with applicable laws. We apply these policies throughout our organization, including at the senior management level and in our composition of our Board of Directors.
We have an operational management strategy designed to enhance tenant satisfaction and portfolio performance. We pursue an active leasing strategy that includes broadly marketing available space, seeking to renew existing leases at higher rents while minimizing re-leasing costs and seeking leases which provide for the pass-through of property-related expenses to the tenant.
We utilize an operational management strategy designed to enhance tenant satisfaction and portfolio performance. We pursue an active leasing strategy that includes broadly marketing available space, seeking to renew existing leases at higher rents while minimizing re-leasing costs and seeking leases which provide for the pass-through of property-related expenses to the tenant.
We also evaluate joint venture arrangements as another source of capital to finance acquisitions and developments as well as manage investment exposure and allocation.
We also periodically evaluate joint venture arrangements as another source of capital to finance acquisitions and developments as well as manage investment exposure and allocation.
These markets have one or more of the following characteristics: (i) favorable industrial real estate fundamentals, including improving industrial demand and constrained future supply that can lead to long-term rent growth; (ii) favorable and diversified economic and business environments that should benefit from increases in distribution activity driven by growth in global trade and local consumption; (iii) population growth as it generally drives industrial demand; (iv) natural barriers to entry and scarcity of land which are key elements in delivering future rent growth; (v) sufficient size to provide ample opportunity for growth through incremental investments and support asset liquidity; and (vi) favorable governmental, regulatory and tax environment. • Leasing and Marketing Strategy.
These markets exhibit one or more of the following characteristics: (i) favorable industrial real estate fundamentals, including improving industrial demand and constrained future supply that can lead to long-term rent growth; (ii) favorable and diversified economic and business environments that should benefit from increases in distribution activity driven by growth in global trade and local consumption; (iii) population growth, which generally drives industrial demand; (iv) natural barriers to entry and scarcity of land which are key elements in delivering future rent growth; (v) sufficient market size to provide ample opportunity for growth through incremental investments and support asset liquidity; and (vi) favorable governmental, regulatory and tax environment. • Leasing and Marketing Strategy.
The Company's operations are conducted primarily through the Operating Partnership, a Delaware limited partnership formed on November 23, 1993 of which the Company is the sole general partner (the "General Partner"), with an approximate 97.3% ownership interest ("General Partner Units") at December 31, 2024.
The Company's operations are conducted primarily through the Operating Partnership, a Delaware limited partnership formed on November 23, 1993 of which the Company is the sole general partner (the "General Partner"), with an approximate 97.0% ownership interest ("General Partner Units") at December 31, 2025.
To finance acquisitions, developments and debt maturities, as market conditions permit, we may utilize a portion of proceeds from property sales, unsecured debt offerings, term loans, mortgage financings and line of credit borrowings under our $750.0 million unsecured revolving credit agreement (the "Unsecured Credit Facility"), and proceeds from the issuance, when and as warranted, of additional equity securities.
To finance acquisitions, developments and debt maturities, as market conditions permit, we may utilize proceeds from property sales, unsecured debt offerings, term loans, mortgage financings and borrowings under our $850.0 million unsecured revolving credit agreement (the "Unsecured Credit Facility"), and proceeds from the issuance, when and as warranted, of additional equity securities.
As a result, we may need to offer rent concessions, incur tenant improvement expenses or provide other inducements to enable us to timely lease vacant space, all of which may have an adverse impact on our results of operations.
As a result, we may need to offer rent concessions, incur tenant improvement costs or provide other inducements to timely lease vacant space, all of which may have an adverse impact on our results of operations.
When evaluating potential industrial property acquisitions and developments, we consider such factors as: (i) the geographic area and type of property; (ii) the location, construction quality, functionality, condition and design of the property; (iii) the terms of tenant leases, including the potential for rent increases; (iv) the potential for economic growth and the general business, tax and regulatory environment of the area in which the property is located; (v) the occupancy and demand by tenants for properties of a similar type in the vicinity; (vi) competition from existing properties and the potential for the construction of new properties in the area; (vii) the potential for capital appreciation of the property; (viii) the ability to improve the property's performance through renovation; and (ix) the potential for expansion of the physical layout of the property and/or the number of sites. • Disposition Strategy.
When evaluating potential industrial property acquisitions and developments, we consider such factors as: (i) the geographic area and type of property; (ii) the location, construction quality, functionality, condition and design of the property; (iii) the terms and credit quality of tenant leases, including the potential for rent rate growth; (iv) the potential for economic growth and the general business, tax and regulatory environment of the surrounding area; (v) the occupancy and demand by tenants for properties of a similar type in the vicinity; (vi) competition from existing properties and the potential for the construction of new properties in the area; (vii) the potential for capital appreciation of the property; (viii) the ability to improve the property's performance through renovation; and (ix) the potential for physical expansion of the property and/or additional sites. • Disposition Strategy.
We continually seek to upgrade our overall portfolio by making new investments and selling assets that lack strong long-term cash flow growth potential. Our focus is on 15 key logistics markets, with a primary emphasis on coastal markets, which exhibit desirable long-term growth characteristics and where developable land is relatively scarce.
We continually seek to upgrade our overall portfolio by making new investments and selling assets that lack strong long-term cash flow growth potential. Our investment focus is on 15 key logistics markets which exhibit desirable long-term growth characteristics and where developable land is relatively scarce.
Such competition may increase acquisition prices or cause us to forgo an investment in a property that would otherwise meet our investment criteria. Additionally, we face significant competition in leasing available properties to prospective tenants and in renewing leases to existing tenants.
Such competition may increase acquisition prices or cause us to forgo investments that would otherwise meet our investment criteria. Additionally, we face significant competition in leasing available properties to prospective tenants and in renewing leases with existing tenants.
The noncontrolling interest in the Operating Partnership of approximately 2.7% at December 31, 2024, represents the aggregate partnership interest held by the limited partners thereof ("Limited Partner Units" and together with the General Partner Units, the "Units"). Through a wholly-owned TRS of the Operating Partnership, we own an equity interest in a joint venture (the "Joint Venture").
The noncontrolling interest in the Operating Partnership of approximately 3.0% at December 31, 2025, represents the aggregate partnership interest held by the limited partners thereof ("Limited Partner Units" and together with the General Partner Units, the "Units"). Through a wholly-owned TRS of the Operating Partnership, we own an equity interest in a joint venture (the "Joint Venture").
The capital from these sales is generally reinvested into new assets identified, consistent with our investment strategy discussed above or otherwise used in a manner consistent with our business strategy. • Financing Strategy.
The capital from these sales is generally reinvested in new assets consistent with our investment strategy or otherwise used in a manner consistent with our business strategy. • Financing Strategy.
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to these reports are available without charge on our website at www.firstindustrial.com. These reports can also be accessed through the SEC's website at www.sec.gov.
Our telephone number is (312) 344-4300. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to these reports are available without charge on our website at www.firstindustrial.com. These reports can also be accessed through the SEC's website at www.sec.gov.
We implement a decentralized property operations strategy through the deployment of experienced regional management teams and local property managers. We provide acquisition, development and financing assistance, asset management oversight and financial reporting functions from our headquarters in Chicago, Illinois to support our regional operations.
We employ a decentralized property operations strategy through the deployment of experienced regional management teams and local property managers. Our headquarters in Chicago, Illinois provides acquisition, development and financing assistance, asset management oversight and financial reporting functions to our regional operations.
As of February 13, 2025, we had approximately $480.5 million available for additional borrowings under the Unsecured Credit Facility. 5 Competition In connection with the acquisition of industrial properties and land for development, we compete with other public industrial property sector REITs, income-oriented non-traded REITs, private real estate funds and other real estate investors and developers, some of which have greater financial resources or other competitive advantages.
As of February 11, 2026, we had approximately $726.9 million available for additional borrowings under the Unsecured Credit Facility. 5 Competition In connection with the acquisition of industrial properties and land for development, we compete with other publicly traded industrial REITs, income-oriented non-traded REITs, private real estate funds and other real estate investors and developers, some of which have greater financial resources or other competitive advantages.
As of December 31, 2024, our in-service portfolio consisted of 412 industrial properties, located in 19 states, containing an aggregate of approximately 66.7 million square feet of gross leasable area ("GLA"). We began operations on July 1, 1994.
As of December 31, 2025, our in-service portfolio consisted of 414 industrial properties, located in 19 states, containing an aggregate of approximately 69.9 million square feet of gross leasable area ("GLA"). We began operations on July 1, 1994.
We seek to grow internally by: (i) increasing revenues by renewing or re-leasing spaces subject to expiring leases at higher rental levels; (ii) obtaining contractual rent escalations on our long-term leases; (iii) increasing occupancy levels at properties where vacancies exist and maintaining occupancy elsewhere; (iv) controlling and minimizing property operating expenses, general and administrative expenses and releasing costs; and (v) renovating existing properties. • External Growth.
We seek to grow internally by: (i) increasing revenues by renewing or re-leasing expiring leases at higher rental levels; (ii) obtaining contractual rent escalations on our long-term leases; (iii) increasing occupancy at properties with existing vacancies while maintaining high occupancy across the remainder of the portfolio; (iv) controlling and minimizing property operating expenses, general and administrative expenses and releasing costs; and (v) selectively renovating existing properties. • External Growth.
We believe the size of our portfolio enables us to realize operating efficiencies by spreading overhead among many properties and by negotiating purchasing discounts. • Market Strategy. Our market strategy is to concentrate on 15 key logistics markets in the United States, with a primary emphasis on coastal markets.
We believe the size of our portfolio enables us to realize operating efficiencies by spreading overhead costs among many properties and by negotiating favorable terms and purchasing discounts. • Market Strategy. Our market strategy focuses on 15 key logistics markets in the United States.
Government Regulation We are subject to laws and regulations of the United States and the states and local municipalities in which we operate, including laws and regulations relating to environmental protection and human health and safety.
Government Regulation We are subject to various federal, state and local laws and regulations in the jurisdictions in which we operate, including laws and regulations relating to environmental protection and human health and safety.
We seek to grow externally through: (i) the development of best-in-class industrial properties and the acquisition of individual and portfolios of industrial properties, which meet our investment parameters within our 15 key logistics markets, with a primary emphasis on coastal markets; and (ii) the expansion of our existing properties. • Portfolio Enhancement.
We seek to grow externally through: (i) the development of best-in-class industrial properties and the acquisition of individual assets, portfolios of industrial properties and leased land sites that meet our investment parameters within our 15 key logistics markets; and (ii) the expansion and redevelopment of our existing properties. • Portfolio Enhancement.
We also provide various services to the Joint Venture. The Joint Venture is accounted for under the equity method of accounting. The operating data of the Joint Venture is not consolidated with that of the Company or the Operating Partnership as presented herein.
We also provide various services to the Joint Venture. The Joint Venture is accounted for under the equity method of accounting. The operating data of the Joint Venture is not consolidated with that of the Company or the Operating Partnership as presented herein. During the year ended December 31, 2025, the Joint Venture sold its remaining real estate assets.
We apply these policies throughout our organization, including at the senior management level and in our composition of our Board of Directors. We believe such diversity of experience and background helps make us strong and achieve our mission to create long-term shareholder value by providing industrial real estate solutions that mutually benefit our customers and our stockholders.
We believe such diversity of experience and background helps make us strong and achieve our mission to create long-term shareholder value by providing industrial real estate solutions that mutually benefit our customers and our stockholders.
Our ability to pursue our long-term growth plans is affected by market conditions and our financial condition and operating capabilities. See "Summary of Significant Transactions in 2024" under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations." 4 Business Strategies We utilize the following strategies in connection with the operation of our business: • Organizational Strategy.
See "Summary of 2025" under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a summary of significant transactions. 4 Business Strategies We utilize the following strategies in connection with the operation of our business: • Organizational Strategy.
Taken together, these efforts promote higher levels of satisfaction and employee retention, while creating an enhanced leadership pipeline. Available Information Our principal executive offices are located at One North Wacker Drive, 42nd Floor, Chicago, Illinois 60606. Our telephone number is (312) 344-4300.
In addition, we endeavor to develop each of our employees’ skillsets and decision-making abilities through challenging project assignments, formal training, mentorship and recognition. Taken together, these efforts promote higher levels of satisfaction and employee retention, while creating an enhanced leadership pipeline. Available Information Our principal executive offices are located at One North Wacker Drive, 42nd Floor, Chicago, Illinois 60606.
Our Board of Directors is comprised of 43% directors who identify as female, people of color or both. In managing our business, we focus on attracting and retaining employees by providing compensation and benefits packages that are competitive within the applicable market, taking into account the skills required, responsibilities and geographic location.
In managing our business, we focus on attracting and retaining employees by providing compensation and benefits packages that are competitive within the applicable market, taking into account the skills required, responsibilities and geographic location. All employees are eligible to participate in one of our incentive plans, under which payments are tied to pre-established performance goals.
Additionally, we have both local and national marketing programs that target the business and real estate brokerage communities, as well as multi-national tenants. • Acquisition/Development Strategy.
Additionally, we have both local and national marketing programs that target the business and real estate brokerage communities, as well as multi-national tenants. • Acquisition/Development Strategy. Our investment strategy is primarily focused on developing and acquiring industrial properties in 15 key logistics markets in the United States through the deployment of experienced regional management teams.
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Our investment strategy is primarily focused on developing and acquiring industrial properties in 15 key logistics markets in the United States, with an emphasis on markets with a coastal orientation, through the deployment of experienced regional management teams.
Added
Our ability to pursue our long-term growth plans is affected by market conditions and our financial condition and operating capabilities.
Removed
All employees are eligible to participate in one of our incentive plans, under which payments are tied to pre-established performance goals. In addition, we endeavor to develop each of our employees’ skillsets and decision-making abilities through challenging project assignments, formal training, mentorship and recognition.
Added
As of December 31, 2025, we had 152 employees, 151 of whom are full-time employees. The average tenure of our workforce is approximately 12 years.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

62 edited+8 added−7 removed103 unchanged
Biggest changeHowever, joint venture investments involve risks not present where we act alone, including: (i) joint venture partners may have shared approval rights over major decisions, which might significantly delay or make impossible actions and decisions we believe are necessary or advisable with respect to properties owned through a joint venture, and/or adversely affect our ability to develop, finance, lease or sell properties owned through a joint venture at the most advantageous time for us, if at all; (ii) joint venture partners might experience financial distress and fail to fund their share of any required capital contributions; (iii) joint venture partners may have economic or other business goals that are competitive or inconsistent with ours that would affect our ability to develop, finance, lease, operate, manage or sell any joint venture properties; (iv) joint venture partners may have the power to act contrary to our policies or objectives, including those necessary to maintain the Company's qualification as a REIT; (v) joint venture agreements often restrict the transfer of interests or may otherwise restrict our ability to sell our interest when we would like to or on advantageous terms; (vi) disputes with joint venture partners may result in costly litigation or arbitration that would increase our expenses and prevent our employees, officers and directors from focusing their time and effort on our business and subject the properties owned by the applicable joint venture to additional risk; and (vii) we may in certain circumstances be held liable for the actions or decisions of our joint venture partners.
Biggest changeInvestments in joint ventures involve risks that are not present when we operate properties independently, including: (i) joint venture partners may have approval or veto rights over major decisions, which could delay, restrict or prevent actions that we believe are necessary or advisable and could adversely affect our ability to develop, finance, lease or sell joint venture properties on a timely basis or on favorable terms, or at all; (ii) joint venture partners may experience financial distress or otherwise fail to fund their share of required capital contributions; (iii) joint venture partners may have economic, business or other objectives that differ from or conflict with ours, which could adversely affect the operation, management, financing or disposition of joint venture properties; (iv) joint venture partners may have the power to act contrary to our policies or objectives, including those necessary to maintain the Company's qualification as a REIT; (v) 11 joint venture agreements typically restrict transfers of ownership interests and may limit our ability to sell our interest in a joint venture at a time or on terms that are favorable to us; (vi) disputes with joint venture partners may result in costly litigation or arbitration, increase our expenses, divert the attention of our employees, officers and directors from our business, and may subject the joint venture properties to additional risk; and (vii) in certain circumstances, we may be held liable for the actions or decisions of our joint venture partners.
Under various federal, state and local laws and regulations, we may, as a current or previous owner, developer or operator of real estate, be liable for the costs of cleaning up hazardous or toxic materials found on, in or emanating from a property as well as for any related damages to natural resources.
Under various federal, state and local laws and regulations, we may be liable, as a current or previous owner, developer or operator of real estate, for the costs of cleaning up hazardous or toxic materials found on, in or emanating from a property as well as for any related damages to natural resources.
If the Company fails to qualify as a REIT in any taxable year, it would be subject to federal income tax at corporate rates. This could result in a discontinuation or substantial reduction in distributions to our stockholders and unitholders and could reduce the cash available for debt repayment or to make further investments in real estate.
If the Company fails to qualify as a REIT in any taxable year, it would be subject to federal income tax at corporate rates. This could result in a discontinuation or substantial reduction in distributions to our stockholders and unitholders and could reduce the cash available for debt repayment or for further investments in real estate.
The occurrence of one or more of these events could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units. 11 We own certain properties subject to ground leases that expose us to risks.
The occurrence of one or more of these events could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units. We own certain properties subject to ground leases that expose us to risks.
Cybersecurity events or disruptions impacting our vendors, sub-processors and service providers could impact our data and operations or the data of third parties retained within our system via unauthorized access to information or disruption of services. Our computer systems are essential to our day-to-day operations and, in some cases, may be critical to the operations of certain of our tenants.
Cybersecurity events or disruptions impacting our vendors, sub-processors and service providers could impact our data and operations or the data of third parties retained within our systems via unauthorized access to information or disruption of services. Our computer systems are essential to our day-to-day operations and, in some cases, may be critical to the operations of certain of our tenants.
In addition, as a REIT, our ability to sell properties is further restricted by tax laws, including punitive taxation on asset sales that fail to meet safe harbor rules or other established criteria. 9 We may be unable to sell properties on advantageous terms.
In addition, as a REIT, our ability to sell properties is further restricted by tax laws, including punitive taxation on asset sales that fail to meet safe harbor rules or other established criteria. We may be unable to sell properties on advantageous terms.
Terrorist attacks, acts of violence or war may affect the market for the Company's common stock, the industry in which we conduct our operations and our profitability. Acts of violence, including terrorism and armed conflicts, or other destabilizing events could occur in areas where we conduct business.
Terrorist attacks, acts of violence or war may affect the market for the Company's common stock, the industry in which we conduct our operations and our profitability. Acts of violence, including terrorism and armed conflicts, or other destabilizing geopolitical events could occur in areas where we conduct business.
Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk. Moreover, our risk exposure extends beyond our internal systems.
Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and it is impossible for us to entirely mitigate this risk. Moreover, our risk exposure extends beyond our internal systems.
Additional changes to tax laws are likely to continue to occur in the future and any such legislative action may prospectively or retroactively modify the Company's tax treatment and therefore, may adversely affect taxation of us and/or our stockholders and unitholders.
Additional changes to tax laws are likely to occur in the future and any such legislative action may prospectively or retroactively modify the Company's tax treatment and therefore, may adversely affect taxation of us and/or our stockholders and unitholders.
As a result, we may not be able to recover the carrying amount of our properties, which may require us to recognize an impairment loss in earnings . Additionally, adverse events in the banking or financial services sections could directly or indirectly affect our liquidity.
As a result, we may not be able to recover the carrying amount of our properties, which may require us to recognize an impairment loss in earnings . Additionally, adverse events in the banking or financial services sectors could directly or indirectly affect our liquidity.
These risks could materially and adversely impact our financial condition, results of operations, and ability to meet our obligations. 12 Financing and Capital Risks: Disruptions in the financial markets could affect our ability to obtain financing and may negatively impact our liquidity, financial condition and operating results.
Any of these outcomes could materially and adversely impact our financial condition, results of operations, and ability to meet our obligations. 12 Financing and Capital Risks: Disruptions in the financial markets could affect our ability to obtain financing and may negatively impact our liquidity, financial condition and operating results.
We face risks relating to cybersecurity attacks and other disruptions to our computer systems. We rely extensively on computer systems to manage our business, and our business is at risk from and may be impacted by cybersecurity attacks, data breaches and other system disruptions.
We face risks relating to cybersecurity attacks and other disruptions to our computer systems. We rely extensively on computer systems to manage our business, and our business is at risk from and may be impacted by cybersecurity attacks, data breaches and other significant disruptions.
These risks could include attempts to gain unauthorized access to our computer systems, data and the data of third parties retained within our systems through malware, computer viruses, attachments to e-mails, persons inside our Company or persons with access to systems inside our Company, and other significant disruptions of our information technology networks and related systems.
These risks could include attempts to gain unauthorized access to our computer systems, data and the data of third parties retained within our systems through malware, computer viruses, email attachments, persons inside our Company or persons with access to systems inside our Company, and other significant disruptions of our information technology networks and related systems.
The IRS could contend that certain sales of properties by us are prohibited transactions. While we implement controls to avoid prohibited transactions, if a dispute were to arise that was successfully argued by the IRS, the 100% penalty tax could be assessed against the Company's profits from these transactions, which could materially and adversely impact our financial results.
The IRS could contend that certain sales of properties by us are prohibited transactions. While we implement controls designed to avoid prohibited transactions, if a dispute were to arise and be successfully asserted by the IRS, the 100% penalty tax could be assessed against the Company's profits from these transactions, which could materially and adversely impact our financial results.
A lack of access to debt or equity securities or to borrow under our Unsecured Credit Facility were to be impaired by volatility in or disruption of the capital markets, it could have a material adverse effect on our liquidity and financial condition. Debt financing, the degree of leverage and rising interest rates could reduce our cash flow.
If our access to debt or equity securities or our ability to borrow under our Unsecured Credit Facility were impaired by volatility in or disruption of the capital markets, it could have a material adverse effect on our liquidity and financial condition. Debt financing, the degree of leverage and rising interest rates could reduce our cash flow.
Stockholders and unitholders are urged to consult with their own tax advisor with respect to the impact of recent legislation, the status of legislative, regulatory, or administrative developments and proposals, and their potential effect on ownership of our shares. Certain property transfers may generate prohibited transaction income, resulting in a penalty tax on the gain attributable to the transaction.
Stockholders and unitholders are urged to consult with their own tax advisors regarding the impact of recent legislation, the status of legislative, regulatory, or administrative developments and proposals, and their potential effect on ownership of our shares. Certain property transfers may generate prohibited transaction income, resulting in a penalty tax on the gain attributable to the transaction.
There can be no assurance that existing laws and regulatory policies will not adversely affect us or the timing or cost of any future acquisitions or renovations, or that additional laws or regulation will not be adopted that increase such delays or result in additional costs.
There can be no assurance that existing laws and regulatory policies will not adversely affect us or the timing or cost of any future acquisitions or renovations, or that additional laws or regulations will not be adopted that increase delays or result in additional costs.
To the extent these risks result in increased debt service expense, construction costs and delays in budgeted leasing, they could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units.
To the extent these risks result in increased debt service expense, higher construction costs or delays in budgeted leasing, they could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, as well as the market price of the Company's common stock and the market value of the Units.
While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in accomplishing all control objectives all of the time.
While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in accomplishing all control objectives at all times.
While some assessments have led to further investigation and sampling, none have identified material environmental liabilities that we believe would adversely affect our business, financial condition or results of operations taken as a whole. However, we cannot give any assurance that such conditions do not exist or may not arise in the future.
While some assessments have led to further investigation and sampling, none have identified material environmental liabilities that we believe, individually or in the aggregate, would adversely affect our business, financial condition or results of operations. However, we cannot give any assurance that such conditions do not exist or may not arise in the future.
As part of our business, we sell properties to third parties as opportunities arise. However, under the Code, a 100% penalty tax could be assessed on the taxable gain recognized from sales of properties that are deemed to be prohibited transactions. The question of what constitutes a prohibited transaction is based on the facts and circumstances surrounding each transaction.
As part of our business, we sell properties to third parties as opportunities arise. However, under the Code, a 100% penalty tax could be assessed on the taxable gain attributable to sales of properties that are deemed to be prohibited transactions. Whether a transaction constitutes a prohibited transaction is based on the facts and circumstances surrounding each transaction.
Additionally, in property dispositions, we may agree to retain responsibility for certain environmental conditions, including costs associated with monitoring and/or remediating such conditions. We may incur significant costs complying with various federal, state and local laws and regulations that are applicable to our properties.
Additionally, in connection with certain property dispositions, we may agree to retain responsibility for certain environmental conditions, including costs associated with monitoring and/or remediating such conditions. We may incur significant costs to comply with various federal, state and local laws and regulations applicable to our properties.
In addition, we may be held liable for clean-up costs or natural resource damages stemming from hazardous materials disposed or treated at off-site facilities, even if the facility is not owned or operated by us.
In addition, we may be held liable for clean-up costs or natural resource damages stemming from the treatment or disposal of hazardous materials at off-site facilities, even if the facility is not owned or operated by us.
Although we employ a number of measures to prevent, detect and mitigate these threats, even the most well-protected information, networks, systems and facilities remain potentially vulnerable because the techniques and tools (including artificial intelligence) used in such attempted security breaches evolve and generally are not recognized until launched against a target and, in some cases, are designed to not be detected and, in fact, may not be detected.
Although we employ a number of measures to prevent, detect and mitigate these threats, even the most well-protected information, networks, systems and facilities remain potentially vulnerable because the techniques and tools (including artificial intelligence) used in such attempted attacks evolve and generally are not recognized until launched against a target and, in some cases, are designed to avoid detection.
A future contagious disease outbreak or pandemic could cause disruptions to regional and global economies and significant volatility and negative pressure in the financial markets.
A future contagious disease outbreak or pandemic could disrupt regional and global economies and cause significant volatility and negative pressure in financial markets.
At December 31, 2024, operating properties located in California (Northern California and Southern California markets) and Pennsylvania, our two largest regions, represented 25.6% and 11.4%, respectively, of our consolidated net operating income for the year ended December 31, 2024.
At December 31, 2025, operating properties located in California (Northern California and Southern California markets) and Pennsylvania, our two largest regions, represented 26.3% and 11.4%, respectively, of our consolidated net operating income for the year ended December 31, 2025.
No assurance can be given that existing environmental assessments with respect to any of our properties have identified all environmental liabilities, that prior owners or operators did not create unknown material environmental conditions, or that such conditions will not arise in the future.
No assurance can be given that environmental assessments performed with respect to our properties have identified all existing or potential environmental liabilities, that prior owners or operators did not create undiscovered environmental conditions, or that such conditions will not arise in the future.
A failure to comply with these covenants, even if we have satisfied our payment obligations, could result in a default under the applicable debt agreement. Consistent with our historical practice, we will continue to interpret and certify our performance under these covenants in a good faith manner that we deem reasonable and appropriate.
A breach of any covenant, even if we have satisfied our payment obligations, could result in a default under the applicable debt agreement. Consistent with our historical practice, we intend to interpret and certify our performance under these covenants in a good faith manner that we deem reasonable and appropriate.
As part of our business, we develop new properties and re-develop existing properties, both of which carry significant risks, including: • we may not be able to obtain financing for these projects on favorable terms; • we may have delays in obtaining construction materials or rising material costs (including as a result of the imposition of tariffs) may occur; • we may not complete construction on schedule or within budget; • we may not be able to obtain, or may experience delays in obtaining necessary zoning, land-use, building, occupancy and other governmental permits and authorizations; • contractor and subcontractor disputes, strikes, lack of available labor, labor disputes or supply chain disruptions may occur; • contractor, subcontractor and design professionals may cause damage, design errors or other negligent actions with respect to our properties; and • properties may perform below anticipated levels, producing cash flow below budgeted amounts, which could lead to unprofitable investments or limit our ability to sell such properties.
As part of our business, we develop new properties and re-develop existing properties, both of which carry significant risks, including: • we may not be able to obtain financing for these projects on favorable terms or within desired timeframes; • we may experience delays in obtaining construction materials, or cost overruns may occur due to inflationary pressures, supply chain disruptions, or increased material costs, including those driven by tariffs or other trade-related factors; • we may not complete construction on schedule or within budget; • we may not be able to obtain, or may experience delays in obtaining necessary zoning, land-use, building, occupancy and other governmental permits and authorizations; • contractor and subcontractor disputes, strikes, labor shortages, or supply chain disruptions may occur; • contractors, subcontractors, or design professionals may cause damage, design errors or other negligent actions with respect to our properties; and • properties may perform below anticipated levels, producing cash flow below budgeted amounts, which could lead to unprofitable investments or limit our ability to sell such properties.
We may incur significant costs complying with various federal, state and local laws and regulations that are applicable to our properties including, without limitation, those related to zoning, zoning moratoria, the Americans with Disabilities Act of 1990 (the "ADA"), fire and safety regulations, and greenhouse gas emissions.
Our properties are subject to various federal, state and local laws and regulations, including, without limitation, those related to zoning, zoning moratoria, the Americans with Disabilities Act of 1990 (the "ADA"), fire and safety regulations, and greenhouse gas emissions.
A successful cybersecurity attack or system disruption could have severe consequences, including: (i) disrupt the proper functioning of our networks and systems, and therefore our operations and/or those of certain of our tenants; (ii) result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; (iii) result in misstated financial reports, violations of loan covenants or missed reporting deadlines; (iv) result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; (v) divert significant management resources to remedy any damages and restore systems; (vi) subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; (vii) subject us to legal liability or regulatory actions stemming from data breaches or disruptions; or (viii) damage our reputation among our tenants, investors and stakeholders. 18 While we continuously work to strengthen our defenses, the evolving nature of cyber threats makes it impossible to entirely eliminate this risk.
A successful cybersecurity attack or system disruption could have severe consequences, including: (i) disruption to the proper functioning of our networks and systems, and therefore our operations and/or those of certain of our tenants; (ii) unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which could be used to compete against us or for other harmful purposes; (iii) misstated financial reports, violations of loan covenants or missed reporting deadlines; (iv) an inability to properly monitor compliance with the rules and regulations regarding our qualification as a REIT; (v) diversion of significant management resources to remedy damages and restore systems; (vi) claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; (vii) legal liability or regulatory actions stemming from data breaches or disruptions; or (viii) damage to our reputation among tenants, investors and other stakeholders.
The adverse effects on our business, financial condition, results of operations and cash flows could include: (i) reduced economic activity which may severely impact our tenants' businesses and may cause certain of our tenants to be unable to meet their obligations to us in full, or at all, attempt to terminate early or non-renew of their leases or otherwise seek modifications of their obligations to us; (ii) delays to or halting of construction activities, including permitting and obtaining approvals, related to our ongoing development, redevelopment and tenant improvements projects; (iii) difficulty in accessing the capital and lending markets (or a significant increase in the costs of doing so), impacts to our credit ratings, a severe disruption or instability in the global financial markets, or deterioration in credit and financing conditions, which may affect our access to capital necessary to fund business operations or address maturing debt obligations on a timely basis; (iv) potential impact on our ability to meet the financial covenants of our Unsecured Credit Facility and other debt agreements, which may result in a default or an acceleration of indebtedness, and such non-compliance could negatively impact our ability to make additional borrowings under our Unsecured Credit Facility and pay dividends; (v) any impairment in value of our tangible or intangible assets which could be recorded as a result of weaker economic conditions; (vi) a general decline in business activity and demand for real estate transactions, which could adversely affect our ability to sell or purchase properties, at attractive pricing or at all; (vii) an inability to initiate or pursue litigation due to various court closures, increased case volume and/or moratoriums on certain types of activities; (viii) the potential negative impact on the health of our employees, particularly if a significant number of them are impacted, which could result in a deterioration in our ability to ensure business continuity during the disruption and which may negatively impact our disclosure controls and procedures over financial reporting; and (ix) extended remote work arrangements for our employees could strain our business continuity plans and introduce operational inefficiencies risk including, but not limited to, cybersecurity risks.
The adverse effects on our business, financial condition, results of operations and cash flows could include: (i) reduced economic activity which may adversely impact our tenants' businesses, resulting in an inability to meet lease obligations, early lease terminations, non-renewals or requests for lease modifications; (ii) delays to or halting of construction activities, including permitting and approvals, related to our development, redevelopment and tenant improvements projects; (iii) difficulty in accessing the capital and lending markets (or a significant increase in the costs of doing so), impacts to our credit ratings, disruption or instability in the global financial markets, or deterioration in credit and financing conditions, which may affect our access to capital necessary to fund business operations or address maturing debt obligations on a timely basis; (iv) potential impact on our ability to meet the financial covenants of our Unsecured Credit Facility and other debt agreements, which may result in defaults, acceleration of indebtedness, restrictions on additional borrowings and limitations on dividend payments; (v) impairment of the value of our tangible or intangible assets due to the weakened economic conditions; (vi) a general decline in business activity and demand for real estate transactions, which could adversely affect our ability to sell or purchase properties on favorable terms or at all; (vii) limitations on our ability to initiate or pursue litigation due to court closures, increased case volume or moratoriums on certain activities; (viii) adverse impacts on employee health, particularly if a significant number of them are impacted, which could result in a deterioration in our ability to ensure business continuity during the disruption and which may negatively impact our disclosure controls and procedures over financial reporting; and (ix) extended remote work arrangements could strain our business continuity plans and introduce operational inefficiencies risk including, but not limited to, cybersecurity risks.
Environmental laws and regulations in the U.S. also impose obligations on building owners or operators regarding asbestos management. These include requirements for proper handling, disclosure, and abatement during renovation or demolition, as well as penalties for non-compliance. Third parties may also seek recovery for asbestos-related injuries.
Environmental laws and regulations in the U.S. also impose obligations on building owners or operators regarding the management of asbestos-containing materials, including requirements for handling, disclosure, and abatement during renovation or demolition, as well as penalties for non-compliance. In addition, third parties may also seek recovery for asbestos-related injuries. Some of our properties may contain asbestos-containing building materials.
The risk of a cybersecurity breach or disruption, particularly through a cyber-incident, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.
Our business is also at risk from computer systems malfunctions or other significant disruption. The risk of a cybersecurity breach or disruption, including through a cyber-incident involving computer hackers, foreign governments or cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.
From time to time, we may acquire properties or interests in properties, with known adverse environmental conditions where we believe that the environmental liabilities are quantifiable and the acquisition will yield a superior risk-adjusted return. In such an instance, we underwrite the costs of environmental investigation, clean-up and monitoring into the cost.
From time to time, we may acquire properties or interests in properties, with known adverse environmental conditions where we believe the associated risks and costs are quantifiable and the acquisition will yield a superior risk-adjusted return. In such cases, we underwrite the costs of environmental investigation, remediation and monitoring costs in the purchase price.
We are subject to the physical and financial impacts of climate change, particularly due to our significant investment in properties located in coastal markets, including Southern California, Northern California, Houston and South Florida. These areas are also targeted markets for future growth.
Our portfolio is subject to the physical and financial risks of adverse weather events and natural disasters, particularly due to our significant investment in properties located in coastal markets, including Southern California, Northern California, Houston, Seattle and South Florida. These areas are also targeted markets for future growth.
If we incur substantial costs to comply with applicable laws or regulations, our financial condition, results of operations, cash flow, our ability to satisfy debt service obligations and to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units could be adversely affected.
If we incur substantial compliance-related costs, our financial condition, results of operations, cash flow, ability to satisfy debt service obligations and to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units could be adversely affected. Adverse market and economic conditions could result in impairment charges.
Such events could cause us to experience a significant loss of capital or revenues, and be exposed to obligations under recourse debt associated with a property.
Such events could result in a significant loss of capital or revenues, and exposure to obligations under recourse debt associated with a property.
Furthermore, we cannot be sure that insurance companies will continue to offer products with sufficient coverage at commercially reasonable rates. This could occur due to an uninsured or high deductible loss, a loss in excess of insured limits, or a loss not paid due to insurer insolvency.
Furthermore, we cannot be sure that insurance companies will continue to offer products with sufficient coverage at commercially reasonable rates. We may incur significant losses in the event of an uninsured or underinsured casualty, a loss in excess of policy limits, or a loss not paid due to insurer insolvency or coverage disputes.
We could be subject to risks and liabilities in connection with joint venture arrangements. Our organizational documents do not limit the amount of funds that we may invest in joint ventures. We currently have and may in the future selectively acquire, own and/or develop properties through joint ventures with other parties when circumstances warrant.
Our organizational documents do not limit the amount of funds that we may invest in joint ventures. We have entered into, and may in the future enter into, joint venture arrangements to acquire, own, develop and/or operate properties when we determine such arrangements to be appropriate.
We may be required to make substantial improvements or capital expenditures, or implement operational changes, to comply with applicable laws and regulations, and we may not be able to effectively pass on these additional costs to our tenants.
Compliance with these laws and regulations may require us to make substantial improvements or capital expenditures, or implement operational changes, and we may not be able to effectively pass these costs on to our tenants. Failure to comply with applicable laws and regulations could result in fines, penalties, or the award of damages or attorneys’ fees to private litigants.
Properties in these regions are vulnerable to catastrophic weather events, such as severe storms, drought, earthquakes, floods, wildfires or other extreme weather conditions. An increase in the frequency or severity of such events could heighten our exposure to these risks, potentially disrupting our tenants' operations and impairing their ability to pay rent.
Properties in these regions are vulnerable to catastrophic weather and natural events, such as severe storms, drought, earthquakes, floods, freezes and wildfires. The frequency and severity of such events may continue to rise, potentially disrupting tenant operations, damaging our properties, increasing operating and capital costs and impairing tenants' ability to pay rent.
These risks, individually or collectively, could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units.
These risks, individually or collectively, could adversely affect our financial condition, results of operations, cash flow and ability to make distributions to our stockholders and unitholders, the market price of the Company's common stock and the market value of the Units. 9 We may be unable to sell properties when appropriate or at all because real estate investments are not as liquid as certain other types of assets.
We carry comprehensive insurance coverage to mitigate our casualty risk, in amounts and of a kind that we believe are appropriate for the markets where each of our properties and their business operations are located.
While we maintain comprehensive insurance coverage to mitigate casualty risks, in amounts and of a kind that we believe are appropriate for the markets where our properties and their business operations are located, there is no assurance that insurance companies will continue to offer sufficient coverage or do so at commercially reasonable rates.
Real property is subject to casualty risk including damage, destruction, or loss caused by events that are unusual, sudden and unexpected. Some of our properties are located in areas where casualty risk is higher due to hurricane, earthquake, wind, wildfire and/or flood risk.
Our insurance coverage may not cover all potential losses. Real property is subject to casualty risk including damage, destruction, or loss caused by unusual, sudden and unexpected events. Some of our properties are located in geographic areas that are subject to increased risk of hurricanes, earthquakes, windstorms, wildfires and flooding.
These laws and regulations often impose liability without regard to whether the owner or operator knew of, or was responsible for, the presence of hazardous or toxic materials. The presence of such materials, or the failure to address those conditions properly, may adversely affect our ability to rent or sell a property or use it as collateral for a financing.
These laws and regulations may impose liability without regard to whether the owner or operator knew of, or was responsible for, the presence of hazardous or toxic materials.
However, we do not insure against all types of casualty, and we may not fully insure against certain perils including, earthquake, windstorm, flood, pandemic, war, civil unrest and cyber risk, either because coverage is not available or because we do not deem it to be economically feasible or prudent to do so.
However, we do not insure against all types of casualty risks, and we may not fully insure against certain perils including earthquakes, windstorms, floods, pandemics, war, civil unrest and cyber events, either because such coverage is unavailable, subject to significant exclusions or limitations, or because we believe the costs of such coverage is not economically feasible or prudent.
Trade disputes could also adversely impact global supply chains which could further increase costs for us and our tenants or delay delivery of key inventories and supplies. Many real estate costs are fixed, even if income from properties decreases. Our financial results depend on leasing space to tenants on terms favorable to us.
Because global trade policy remains fluid and subject to rapid change, additional tariffs, restrictions, or retaliatory actions could further impact our tenants, operations, and financial results. Many real estate costs are fixed, even if income from properties decreases. Our financial results depend on leasing space to tenants on terms favorable to us.
For certain of our properties, we own the building and other improvements but have leased the underlying land pursuant to a long-term ground lease. These arrangements expose us to unique risks, including the potential loss of our interest in the properties if we breach the terms of the ground leases, fail to renew them, or if they are otherwise terminated.
These arrangements expose us to unique risks, including the potential loss of our interest in the properties if we breach the terms of the ground leases, fail to extend or renew them, or if they are otherwise terminated. As the ground lease termination dates approach, the values of the properties could decline if extensions or renewals are not secured.
To the extent our tenants are unable to pass these costs on to their customers, our tenants could be adversely impacted. In addition, international trade disputes, including those related to tariffs, could result in inflationary pressures that directly impact our costs, such as construction materials applicable to our development and redevelopment projects.
In addition, international trade disputes, including those related to tariffs, could result in inflationary pressures that directly impact our costs, such as construction materials and equipment used in our development and redevelopment projects. Persistent supply-chain disruptions could delay project timelines or elevate capital expenditures.
We may be unable to sell properties when appropriate or at all because real estate investments are not as liquid as certain other types of assets. Real estate assets are inherently less liquid than other types of investments, which could limit our ability to adjust our property portfolio in response to changes in economic conditions or portfolio performance.
Real estate assets are inherently less liquid than other types of investments, which could limit our ability to adjust our property portfolio in response to changes in economic conditions or portfolio performance. This limitation could adversely affect our financial condition, ability to service debt and capacity to make distributions to our stockholders and unitholders.
Moreover, we cannot predict whether (i) changes to environmental laws and regulations will not result in material environmental liability; or (ii) our properties will be affected by nearby activities, such as underground storage tanks leaks, or by unrelated third parties.
Moreover, we cannot predict whether changes to environmental laws and regulations, or their interpretation or enforcement, will result in material environmental liabilities, or whether our properties may be adversely affected by nearby activities or conditions beyond our control, such as underground storage tank leaks or releases by unrelated third parties. 10 At the time of acquisition, all of our properties are subject to a Phase I or similar environmental assessment conducted by an independent consultant.
Adverse market and economic conditions could result in impairment charges. We regularly review our real estate assets for impairment indicators, such as declines in occupancy rates, deteriorating market conditions or changes in the anticipated hold period of an asset.
We regularly review our real estate assets for impairment indicators, such as declines in occupancy rates, deteriorating market conditions or changes in the anticipated holding period of a property. If such indicators are present, we assess whether the carrying value of any asset is recoverable, which may require us to recognize an impairment charge.
Among other coverage, we carry property, boiler and machinery, general liability, cyber liability, fire, flood, terrorism, earthquake, windstorm, owner's protective professional indemnity and rental loss insurance. Our coverage includes policy specifications and limits customarily carried for similar properties and business activities. However, our insurance coverage does not insure the total replacement cost of the portfolio.
We maintain insurance coverage that we believe is customary and appropriate for the markets in which our properties and their business operations are located. Among other coverage, we carry property, boiler and machinery, general liability, cyber liability, fire, flood, terrorism, earthquake, windstorm, owner's protective professional indemnity and rental loss insurance.
Some of these claims may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against. Resolution of these types of matters could adversely impact our financial condition, results of operations and cash flow.
We may become subject to litigation, including claims relating to our operations, offerings, and other activity in the ordinary course of business. Some of these claims may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against.
At acquisition, all of our properties are subject to a Phase I or similar environmental assessment conducted by an independent consultant. These assessments are intended to discover and evaluate information regarding the environmental condition of the surveyed property and surrounding areas but typically do not include soil sampling, subsurface investigation, remediation or asbestos surveys.
These assessments are intended to identify recognized environmental conditions associated with the surveyed property and surrounding areas but typically do not include soil sampling, subsurface investigation, remediation or asbestos surveys.
Some of our properties may contain asbestos-containing building materials. 10 We maintain a portfolio environmental insurance policy to address certain unknown environmental liabilities, but coverage is subject to policy terms, conditions and limitations. Renewal of this policy may not be guaranteed, and coverage may be insufficient to fully mitigate potential losses.
We maintain a portfolio-level environmental insurance policy intended to address certain unknown environmental liabilities; however coverage is under this policy is subject to policy terms, conditions and limitations, may not be sufficient to cover all potential losses and may not be available on commercially reasonable terms, or at all, upon renewal.
A successful cybersecurity attack or disruption could materially and adversely affect our business, financial performance, and reputation. We may become subject to litigation. We may become subject to litigation, including claims relating to our operations, offerings, and other activity in the ordinary course of business.
While we continuously work to strengthen our defenses, the evolving nature of cyber threats makes it impossible to entirely eliminate this risk. A successful cybersecurity attack or disruption could materially and adversely affect our business, financial performance, and reputation. 18 We may become subject to litigation.
These factors may adversely affect our financial condition, results of operations or ability to generate income from these properties. We are exposed to the impacts of climate change.
Additionally, certain ground leases include annual payment escalations and/or periodic fair market value adjustments which could increase our lease obligations over time. These factors may adversely affect our financial condition, results of operations or ability to generate income from these properties. We are exposed to the impacts of adverse weather events and natural disasters.
International trade disputes, including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation or otherwise, could adversely impact our business. Many of our tenants sell imported goods and tariffs or other trade restrictions could increase costs for these tenants.
Ongoing international trade disputes, including threatened or implemented tariffs and other measures employed by the U.S. and its trading partners continue to create uncertainty and potential disruption across supply chains. Many of our tenants rely on imported goods or components, and increased trade barriers could increase their costs.
Noncompliance with these laws and regulations could result in the imposition of fines or the award of damages or attorneys’ fees to private litigants. Any such laws or regulations could also impose substantial costs on our tenants, potentially impacting their financial condition and ability to meet lease obligations, which could impact leasing or re-leasing our properties.
In addition, compliance obligations imposed on our tenants could adversely affect their financial condition and ability to meet their lease obligations, which could negatively impact leasing or re-leasing our properties.
We evaluate our insurance limits and deductibles using analysis and modeling, as is customary in our industry.
Our insurance policies contain customary specifications and limits and do not insure the aggregate total replacement cost of our portfolio. We periodically evaluate our insurance limits, coverages and deductibles using industry-standard analysis and modeling.
Removed
This limitation could adversely affect our financial condition, ability to service debt and capacity to make distributions to our stockholders and unitholders.
Added
To the extent our tenants are unable to pass these costs on to their customers, our tenants could be adversely impacted, which in turn could impact their ability to meet lease obligations.
Removed
If we determine that indicators of impairment are present, we review the affected properties to determine whether an impairment charge is required. As a result, we may be required to recognize asset impairment, which could materially and adversely affect our business, financial condition and results of operations.
Added
The presence of such materials, or the failure to properly address the conditions, may adversely affect our ability to rent, sell or finance a property or to use it as collateral for indebtedness.
Removed
We use considerable judgment in making determinations about impairments, from analyzing whether there are indicators of impairment, to the assumptions used in calculating the fair value of the investment. Accordingly, our subjective estimates and evaluations may not be accurate, and such estimates and evaluations are subject to change or revision.
Added
The determination of whether an impairment exists, and the amount of any such impairment, requires the exercise of significant judgment, including assumptions regarding future cash flows, capitalization rates and expected holding periods. These assumptions are inherently subjective and may differ from actual results.
Removed
As the ground lease termination dates approach, the values of the properties could decline if extensions or renewals are not secured. Additionally, certain ground leases include annual payment escalations and/or periodic fair market value adjustments which could increase our lease obligations over time.
Added
Changes in market conditions or in our expectations regarding a property could result in impairment charges in future periods. Any such impairment charges could materially and adversely affect our business, financial condition and results of operations. We may be subject to risks and liabilities in connection with joint venture arrangements.
Removed
Furthermore, the effects of climate change may adversely affect our ability to lease, develop or sell properties or to use them as collateral for financings. We maintain comprehensive insurance coverage to mitigate casualty risks, in amounts and of a kind that we believe are appropriate for the markets where each of our properties and their business operations are located.
Added
For certain of our properties, we own the building and other improvements but have leased the underlying land pursuant to a long-term ground lease.
Removed
However, as climate change risks intensify, there is no assurance that insurance companies will continue to offer sufficient coverage or do so at commercially reasonable rates. A lack of adequate insurance or significant increases in premiums could materially affect our financial performance and operations. Our insurance coverage does not include all potential losses.
Added
Climate-related disruption could also adversely affect our ability to lease, develop or sell properties or to use them as collateral for financings.
Removed
Our business is also at risk from and may be impacted by our computer systems malfunctioning or being subject of a significant disruption.
Added
Increases in insurance premiums, higher deductibles, reduced availability of coverage, or uninsured losses could materially affect our financial condition, results of operations, and cash flows. In addition, evolving regulatory requirements and market expectations related to environmental sustainability, energy efficiency, and greenhouse gas emissions may require additional capital investment or compliance costs that could affect our financial performance and operations.
Added
Resolution of these types of matters could adversely impact our financial condition, results of operations and cash flow.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn connection with this phase, we do the following: • Maintain controls and processes over access to our networks and computer systems including: (i) approval and restriction to appropriate personnel as well as ensuring powerful privileges are restricted and segregated to select information technology employees; (ii) utilize a password manager to protect encrypted passwords of power users; (iii) disable system and physical access of terminated employees in a timely manner; (iv) utilize two-factor authentication for remote access to the network; and (v) segregate internal network through the use of internal firewalls; • Maintain physical security at our data center and backup recovery location including door access control system with surveillance; • Block data intrusion to maintain confidentiality and integrity of our data via the following: (i) capacity of our servers and networks have an automated monitoring system; (ii) patch management controls on our key software including monitoring resources for patch criticality and reported issues as well as running vulnerability scans; (iii) change logs are kept and updated on all of our key software; (iv) all major changes to hardware and infrastructure devices are performed and approved prior to production migration; (v) remote access is fully encrypted for all users; and (vi) internal firewalls are used to limit access to sensitive systems and applications; and • Maintain controls and processes relating to payments we make to third parties by using a combination of internal controls around the setup, maintenance and archiving of records to reduce fraud and erroneous payments. 20 We continually monitor our information system in order to d etect anomalous activity and verify the effectiveness of our protective measures.
Biggest changeIn connection with this phase, we: • Maintain access controls that restrict network and system access to authorized users, including privileged access segregation, password encryption via a password manager, timely deactivation of terminated employees and two-factor authentication for remote access; • Maintain physical security at our data center and backup recovery sites, including door access control systems and surveillance; • Prevent data intrusion to maintain confidentiality and integrity of our data by deploying automated monitoring systems that continuously assess server and network capacity and performance; applying patch management controls on key financial software with routine vulnerability scans; maintaining and updating change logs for all key financial software; requiring pre-approval for all major hardware and infrastructure changes prior to production migration; ensuring all remote access is fully encrypted; and implementing internal firewalls to limit access to sensitive systems and applications; and • Maintain controls and processes over third-party payments, using a combination of internal controls around the setup, maintenance and archiving of records to prevent fraud and minimize the risk of erroneous payments. 20 We continually monitor our information systems in order to detect anomalous activity and verify the effectiveness of our protective measures.
We have controls and systems in place to safely receive, protect and store information; collect, use, and share that information appropriately; and detect, contain and respond to data security and denial-of-service incidents. We identify material cyber risks by continually assessing external threats to understand evolving threats, developing issues and industry trends.
We have controls and systems in place to safely receive, protect and store information; collect, use, and share that information appropriately; and detect, contain and respond to data security and denial-of-service incidents. We identify and manage material cyber risks by continually assessing external threats to understand evolving threats, emerging issues and industry trends.
In addition to the foregoing, from time to time, the Board of Directors is updated concerning the Company’s internal control systems with respect to information technology security. 21
In addition to the foregoing, from time to time, the Board of Directors is updated on the Company’s internal control systems with respect to information technology security. 21
Item 1C. Cybersecurity Cybersecurity risk is an important and continuously evolving focus for us, and significant resources are devoted to protecting and enhancing the security of computer systems, software, networks and our other technology assets.
Item 1C. Cybersecurity Cybersecurity risk is a critical and continuously evolving area of focus for us, and significant resources are devoted to protecting and enhancing the security of computer systems, software, networks and other technology assets.
Our processes and controls to mitigate these cyber risks, categorized by five functional areas, Identify, Protect, Detect, Respond and Recover, are addressed below. The first step in our process is to i dentify the risks related to our data, personnel, devices, systems and facilities.
Our processes and controls to mitigate these risks, categorized by six functional areas: Identify, Protect, Detect, Respond, Recover and Govern, are described below. The first step in our process is to identify the risks related to our data, personnel, devices, systems and facilities.
Cybersecurity is an important and integrated part of the Company’s enterprise risk management function that identifies, monitors and mitigates business, operational and legal risks.
Cybersecurity is an integral part of the Company’s enterprise risk management function, which identifies, monitors and mitigates business, operational and legal risks.
In connection with this phase, we do the following: • Run extended detection and response software on our network at all times, which is comprehensive company-wide personal computer device security monitoring and active threat remediation software that is fully supported by staff and backed by a prevention warranty; • Engage third-party specialists to periodically perform: (i) penetration testing, which is a simulated cyberattack against our computer system, in order to assess our ability to resist potential threats and attacks from external and internal sources; (ii) cyber dwelling, which determines if a threat actor has made its way or could make its way into our computer network and if confidential information was or could be compromised; and (iii) tabletop mock cybersecurity incident exercises to gauge our ability to react to an attack; • Evaluate the technical control structure and competency for all new third-party software vendors and review “cloud” third-party software vendor’s Service Organization Control reports, or reasonable substitutes, which give comfort on the maturity of the vendor’s security controls; and • Perform monthly mock phishing email exercises with our employees and provide additional training if needed.
In connection with this phase, we: • Operate extended detection and response software on our network at all times, company-wide endpoint security monitoring and active threat remediation software that is fully supported by staff and backed by a prevention warranty; • Engage independent cybersecurity specialists to periodically perform penetration testing (simulated cyberattacks to assess our ability to resist potential threats and attacks from external and internal sources), cyber dwelling assessments (to determine if a threat actor has accessed or could access our network and compromise confidential information) and tabletop exercises to evaluate our ability to react to an attack; • Evaluate the technical control structure and competency of all new third-party software vendors and review “cloud” vendors’ Service Organization Control (SOC) reports or reasonable substitutes to assess the maturity of their security controls; and • Conduct monthly mock phishing exercises with employees and provide additional training as needed.
Our cybersecurity program is overseen by a highly experienced team, including the Chief Information Officer (who reports directly to our Chief Executive Officer), our Senior Director of Information Technology, our Senior Director of Business Systems Applications and our Information Technology Security Manager.
The Chief Information Officer (who reports directly to our Chief Executive Officer), supported by Senior Director of Information Technology, our Senior Director of Business Systems Applications and the Information Technology Security Manager, directs the Company’s cybersecurity strategy, daily operations, and incident response preparedness.
We have plans in place in order to r espond to detected cybersecurity incidents: • Maintain written playbooks, which provide sequential instructions on the appropriate steps to take in the wake of various cyberattacks, including a playbook for each of the following: ransomware attack, a data breach, loss of third-party data and partial and full disaster recovery plans; and • Retain a leading incident response provider to assist with security incidents as well as an attorney that serves as our data breach coach who specializes in data privacy and cyber security, and has relationships with third-party forensics investigators, crisis communications professionals and other services and organization we may need if a data breach is encountered.
We maintain comprehensive plans to respond to detected cybersecurity incidents, including: • Written playbooks providing sequential instructions on appropriate steps to take in the wake of various cyberattacks, including ransomware attacks, data breaches, loss of third-party data and partial and full disaster recovery scenarios; • Retention of a leading incident response provider to assist with security incidents, as well as an attorney who serves as our data breach coach.
In connection with this phase, we do the following: • Perform global risk assessments which include information technology risk areas including cyber and, in conjunction with this assessment, we engage leading security and technology vendors to periodically perform specific technical information technology risk assessments; • Maintain a matrix that delineates roles and responsibilities for information security supporting significant financial applications, database and networks; • Participate in various consortiums, associations and groups to share threat intelligence and collaborate with organizations across different industries to share best practices, fight cybercrime, enhance privacy, discuss new technologies, better understand the evolving regulatory environment, and advance capabilities in these areas; • Conduct mandatory information security training for all employees and regularly evaluate their information security awareness and adherence to our information security recommendations; and • Disclose our computer usage policy on our intranet and require employees to acknowledge the policy annually.
In connection with this phase, we: • Conduct enterprise-wide risk assessments that include information technology risk areas, supplemented by periodic technical assessments from independent security and technology firms; • Maintain a matrix that delineates roles and responsibilities for information security supporting critical financial applications, databases and networks; • Participate in various consortiums, associations and groups to share threat intelligence, regulatory updates and best practices; • Conduct mandatory information security training for all employees and regularly evaluate their awareness and adherence to our information security recommendations; and • Publish our computer usage policy on our intranet and require employees to acknowledge the policy annually.
We view our main cyber risk areas to be attempts to gain unauthorized access to our data and computer systems and the data of third parties to which we may owe a duty of care through malware, ransomware, computer fraud, insider threat from persons inside our Company or persons with access to systems inside our Company, and other significant disruptions of our information technology networks and related systems.
We view our main cybersecurity risks as attempts to gain unauthorized access to our computer systems and data (including that of third parties to whom we owe a duty of care) through malware, ransomware, phishing, social engineering, insider threats and other malicious activities or disruptions to our information technology networks and systems.
In order to r ecover systems or assets affected by a cybersecurity incident, we maintain and regularly test full backups of our business systems data. These backups are stored in multiple locations, both online and offline.
To recover systems or assets affected by a cybersecurity incident, we maintain and regularly test full system backups stored in multiple secure locations, both online and offline. As of the date of this Form 10-K, we have not experienced a cybersecurity threat or incident that resulted in a material adverse impact to our business, operations or financial condition.
Next, we perform certain controls and processes in order to p rotect against the identified risks.
Next, we implement controls and processes designed to protect against identified risks.
The Audit Committee, as delegated by our Board of Directors, is responsible for reviewing, with management, our internal control systems with respect to information technology security. The Audit Committee Chairperson also participates in our annual overall risk assessment process.
The Audit Committee, as delegated by our Board of Directors, oversees cybersecurity matters, receiving regular reports from management on risk assessments, control initiatives, and incident response activities. The Audit Committee Chairperson also participates in our annual enterprise-wide risk assessment process.
While we have not, as of the date of this Form 10-K, experienced a cybersecurity threat or incident that resulted in a material adverse impact to our business, operations or financial condition, there can be no guarantee that we will not experience such an incident in the future. See Risk Factors for more information on our cybersecurity risks.
However, there can be no guarantee that we will not experience such an incident in the future. See Risk Factors for more information on our cybersecurity risks. Cybersecurity oversight begins with strong governance. The Company manages cybersecurity risk as part of its overall enterprise risk management program, with clear accountability and defined responsibilities across management and the Board of Directors.
Removed
Collectively, this team has decades of expertise in information technology, and the Information Technology Security Manager holds a master's degree in Network Security. They meet regularly to discuss key cybersecurity risks and strategies, reporting to the Audit Committee annually or as necessary, in accordance with our cybersecurity incident protocols.
Added
This attorney specializes in data privacy and cybersecurity, and maintains relationships with forensics investigators, crisis communications professionals and other specialized service providers we may engage in the event of a data breach; and • Escalation and notification protocols aligned with legal and regulatory obligations.
Added
Management reviews cybersecurity policies and procedures at least annually with the Audit Committee and reports on emerging risks, control performance, and mitigation progress. The Company also manages third party and supply chain security risks through vendor due diligence reviews and contractual requirements.

Item 2. Properties

Properties — owned and leased real estate

33 edited+3 added−2 removed3 unchanged
Biggest changeThe development projects under construction have the following characteristics: Metropolitan Area Number of Properties GLA Anticipated Quarter of Building Completion South Florida 2 258,024 Q2 2025 Houston, TX 1 424,560 Q3 2025 Nashville, TN 2 858,617 Q3 2025 Central Florida 1 112,000 Q3 2025 Central/Eastern Pennsylvania 2 361,800 Q1 2026 Total (A) 8 2,015,001 (A) The eight properties were 43% pre-leased at December 31, 2024. 23 Property Acquisitions During the year ended December 31, 2024, we acquired five industrial properties in our Houston and Southern California markets, as well as approximately 81 acres of land in our South Florida and Southern California markets, for an aggregate purchase price of approximately $70.7 million.
Biggest changeWorth, TX 1 84,360 Q4 2026 South Florida 1 220,310 Q1 2027 Total 6 1,068,332 23 Property Acquisitions During the year ended December 31, 2025, we acquired four industrial properties and one income-producing land parcel in our Baltimore, Northern California and Phoenix markets, as well as approximately 61 acres of land for development in the Philadelphia market, for an aggregate purchase price of approximately $303.0 million.
The capitalization rate for these sales was calculated using the properties' revenues (excluding straight-line rent adjustments, lease inducement amortization and above and below market lease amortization) less operating expenses for the twelve full preceding the sale, divided by the sales price.
The capitalization rate for these sales was calculated using the properties' revenues (excluding straight-line rent adjustments, lease inducement amortization and above and below market lease amortization) less operating expenses for the twelve full months preceding the sale, divided by the sales price.
The properties are generally located in business parks that have convenient access to interstate highways and/or rail and air transportation. We maintain insurance on our properties that we believe is adequate. The following tables summarize, by market, certain information as of December 31, 2024, with respect to the in-service properties.
The properties are generally located in business parks that have convenient access to interstate highways and/or rail and air transportation. We maintain insurance on our properties that we believe is adequate. The following tables summarize, by market, certain information as of December 31, 2025, with respect to the in-service properties.
Similarly, for 2025, net rental rates for new leases on a cash basis on average are expected to exceed prior lease rates, driven primarily by market rent growth since the original leases were signed.
Similarly, for 2026, net rental rates for new leases on a cash basis on average are expected to exceed prior lease rates, driven primarily by market rent growth since the original leases were signed.
Leasing Activity The following table provides a summary of our leasing activity for the year ended December 31, 2024. The table does not include month-to-month leases or leases with terms less than twelve months.
Leasing Activity The following table provides a summary of our leasing activity for the year ended December 31, 2025. The table does not include month-to-month leases or leases with terms less than twelve months.
(C) Annualized base rent is calculated as monthly contractual base rent per the terms of the lease, as of December 31, 2024, multiplied by 12. If free rent is granted, then the first positive rent value is used.
(C) Annualized base rent is calculated as monthly contractual base rent per the terms of the lease, as of December 31, 2025, multiplied by 12. If free rent is granted, then the first positive rent value is used.
At December 31, 2024, our leases have a weighted average lease length of 7.8 years from inception and the majority provide for periodic rent increases that are either fixed or based on changes in the Consumer Price Index.
At December 31, 2025, our leases have a weighted average lease length of 7.7 years from inception and the majority provide for periodic rent increases that are either fixed or based on changes in the Consumer Price Index.
Looking ahead, based on our recent experience, low levels of vacancy generally across our markets, and the 2025 forecast of a leading national research company, we expect higher average net rental rates for renewal leases on a cash basis compared to expiring rates.
Looking ahead, based on our recent experience, modest levels of vacancy generally across our markets, and the 2026 forecast of a leading national research company, we expect higher average net rental rates for renewal leases on a cash basis compared to expiring rates.
Acquired properties with tenants that we anticipate will move out within the first two years of ownership are placed in service upon the earlier of reaching 90% occupancy or one year after move out. The average annual base rent per square foot for our in-service portfolio, calculated at December 31, 2024, was $7.89.
Acquired properties with tenants that we anticipate will move out within the first two years of ownership are placed in service upon the earlier of reaching 90% occupancy or one year after move out. The average annual base rent per square foot for our in-service portfolio, calculated at December 31, 2025, was $8.41.
The following table provides a summary of our leases that commenced during the year ended December 31, 2024, which included rent concessions during the lease term.
The following table provides a summary of our leases that commenced during the year ended December 31, 2025, which included rent concessions (abated rent) during the lease term.
Included in the estimated total cost is $17.0 million of leasing commissions. The capitalization rate for these development projects, calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments) divided by the total investment in the developed property is 7.0%.
Included in the estimated total cost is $8.6 million of leasing commissions. The capitalization rate for these development projects, calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments) divided by the total investment in the developed property is 6.8%.
See Note 4 to the Consolidated Financial Statements and the accompanying Schedule III for additional information. 22 Development Activity During the year ended December 31, 2024, we transferred seven development properties totaling approximately 2.8 million square feet of GLA to our in-service portfolio at a total estimated cost of approximately $392.0 million.
See Note 4 to the Consolidated Financial Statements and the accompanying Schedule III for additional information. 22 Development Activity During the year ended December 31, 2025, we transferred seven development properties totaling approximately 1.9 million square feet of GLA to our in-service portfolio at a total estimated cost of approximately $249.8 million.
As of December 31, 2024, approximately 96.2% of the GLA of our in-service properties was leased, and no single tenant or group of related tenants accounted for more than 6.5% of our rent revenues, nor did any single tenant or group of related tenants occupy more than 6.8% of the total GLA of our in-service properties.
As of December 31, 2025, approximately 94.4% of the GLA of our in-service properties was leased, and no single tenant or group of related tenants accounted for more than 6.4% of our rent revenues, nor did any single tenant or group of related tenants occupy more than 6.5% of the total GLA of our in-service properties.
The industrial properties were acquired at an expected stabilized capitalization rate of approximately 6.1%. This capitalization rate for these property acquisitions was calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments and above and below market lease amortization), divided by the sum of the purchase price, closing costs and estimated stabilization costs.
The industrial properties and the income-producing land parcel were acquired at an expected stabilized capitalization rate of approximately 6.4%. This capitalization rate was calculated using the estimated stabilized net operating income (excluding straight-line rent adjustments and above and below market lease amortization), divided by the sum of the purchase price, closing costs and estimated stabilization costs.
In-Service Property Summary Totals Metropolitan Area GLA Number of Properties Occupancy at 12/31/24 Atlanta, GA 5,249,774 23 100.0% Baltimore, MD 3,416,464 14 85.9% Central Florida 1,168,453 12 89.2% Central/Eastern Pennsylvania (A) 8,656,434 24 100.0% Chicago, IL 6,169,821 25 96.9% Cincinnati, OH 467,320 3 100.0% Dallas/Ft.
In-Service Property Summary Totals Metropolitan Area GLA Number of Properties Occupancy at 12/31/25 Atlanta, GA 5,249,774 23 96.4% Baltimore, MD / D.C. 3,416,464 14 84.3% Central Florida 1,279,412 13 92.0% Central/Eastern Pennsylvania (A) 8,656,434 24 91.0% Chicago, IL 6,169,821 25 96.9% Cincinnati, OH 467,320 3 100.0% Dallas/Ft.
The estimated total investment for these developments is approximately $138.0 million, of which $123.2 million has been funded as of December 31, 2024. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost.
The estimated total investment for these developments is approximately $97.4 million, of which $84.7 million has been funded as of December 31, 2025. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost.
Reflects the impact of renewals signed prior to January 1, 2025 which are now reflected in the new year of expiration. (B) Does not include existing vacancies of 2,505,108 aggregate square feet and December 31, 2024 move outs of 355,696 aggregate square feet.
Reflects the impact of renewals signed prior to January 1, 2026 which are now reflected in the new year of expiration. (B) Does not include existing vacancies of 3,892,990 aggregate square feet and December 31, 2025 move outs of 130,376 aggregate square feet.
Indebtedness As of December 31, 2024, three of our 412 in-service industrial properties, with a net carrying value of $30.2 million, are pledged as collateral under a mortgage financing, totaling $9.6 million.
Indebtedness As of December 31, 2025, three of our 414 in-service industrial properties, with a net carrying value of $29.4 million, are pledged as collateral under a mortgage financing, totaling $9.3 million.
Number of Leases Commenced Square Feet Commenced (in 000's) Net Rent Per Square Foot (A) Straight Line Basis Rent Growth (B) Weighted Average Lease Term (C) Lease Costs Per Square Foot (D) Weighted Average Tenant Retention (E) New Leases 64 2,069 $ 10.51 56.9 % 4.8 $ 6.65 N/A Renewal Leases 120 6,270 10.38 75.1 % 6.5 2.50 76.7 % Development / Acquisition Leases 12 3,136 10.50 N/A 9.9 N/A N/A Total / Weighted Average 196 11,475 $ 10.44 70.1 % 7.1 $ 3.53 76.7 % (A) Net rent is the average base rent calculated in accordance with GAAP, over the term of the lease.
Number of Leases Commenced Square Feet Commenced (in 000's) Net Rent Per Square Foot (A) Straight Line Basis Rent Growth (B) Weighted Average Lease Term (C) Lease Costs Per Square Foot (D) Weighted Average Tenant Retention (E) New Leases 73 1,836 $ 10.36 53.4 % 5.4 $ 8.71 N/A Renewal Leases 91 4,421 10.95 53.2 % 5.8 2.83 71.0 % Development / Acquisition Leases 11 1,518 10.28 N/A 9.1 N/A N/A Total / Weighted Average 175 7,775 $ 10.68 53.3 % 6.4 $ 4.56 71.0 % (A) Net rent is the average base rent, calculated in accordance with GAAP, over the term of the lease.
The sold industrial properties have the following characteristics: Metropolitan Area Number of Properties GLA Central/Eastern Pennsylvania 3 162,800 Chicago, IL 2 93,059 Cincinnati, OH 5 278,000 Detroit, MI 5 211,287 New Jersey 7 445,078 Total 22 1,190,224 24 Tenant and Lease Information We have a diverse base of approximately 900 tenants engaged in a wide variety of businesses including e-commerce, third-party logistics and transportation, consumer and other manufactured products, retail and consumer services, food and beverage, lumber and building materials, wholesale goods, health services, governmental and other.
The sold industrial properties have the following characteristics: Metropolitan Area Number of Properties GLA Denver, CO 1 59,711 Detroit, MI 6 264,871 Total 7 324,582 24 Tenant and Lease Information We have a diverse base of approximately 900 tenants engaged in a wide variety of businesses including e-commerce, third-party logistics and transportation, consumer and other manufactured products, retail and consumer services, food and beverage, lumber and building materials, wholesale goods, health services, governmental and other.
Item 2. Properties General At December 31, 2024, we owned 416 industrial properties of which 412 were classified as in-service. Of the 416 properties owned on a consolidated basis, none of them are directly owned by the Company.
Item 2. Properties General At December 31, 2025, we owned 418 industrial properties of which 414 were classified as in-service. Of the 418 properties owned on a consolidated basis, none of them are directly owned by the Company. The 414 in-service industrial properties contained an aggregate of approximately 69.9 million square feet of GLA in 19 states.
(B) Straight Line basis rent growth is a ratio of the change in net rent (including straight-line rent adjustments) on a new or renewal lease compared to the net rent (including straight-line rent adjustments) of the comparable lease. New leases where there were no prior comparable leases are excluded. (C) The lease term is expressed in years.
(B) Straight line basis rent growth is calculated as the percentage change in net rent (including straight line rent adjustments) on a new or renewal lease compared to the net rent (also including straight line rent adjustments) of the expiring comparable lease. New leases without a prior comparable lease are excluded from this metric.
Paul, MN 2,136,628 12 100.0% Nashville, TN 2,335,079 7 100.0% New Jersey (A) 2,074,153 17 98.5% Northern California 1,300,236 9 100.0% Phoenix, AZ 4,152,314 17 97.5% Seattle, WA 552,163 9 100.0% South Florida 2,655,394 23 100.0% Southern California (A) 10,900,626 83 95.3% Total 66,708,178 412 96.2% _______________ (A) Central/Eastern Pennsylvania includes the markets of Central Pennsylvania and Philadelphia.
Paul, MN 2,136,628 12 98.9% Nashville, TN 2,876,579 8 100.0% New Jersey (A) 2,074,153 17 99.8% Northern California 1,300,236 9 100.0% Phoenix, AZ 5,916,701 20 100.0% Seattle, WA 552,163 9 100.0% South Florida 2,677,491 23 97.0% Southern California (A) 11,538,294 86 89.7% Total 69,884,767 414 94.4% _______________ (A) Central/Eastern Pennsylvania includes the markets of Central Pennsylvania and Philadelphia.
The substantially completed developments have the following characteristics: Metropolitan Area Number of Properties GLA Occupancy at 12/31/24 Southern California 3 637,668 0% South Florida 1 135,707 34% Total 4 773,375 As of December 31, 2024, we have eight development projects that are under construction totaling approximately 2.0 million square feet of GLA.
The substantially completed developments have the following characteristics: Metropolitan Area Number of Properties GLA Occupancy at 12/31/25 Nashville, TN 1 317,117 0% South Florida 2 258,024 22% Total 3 575,141 As of December 31, 2025, we have six projects classified as under development totaling approximately 1.1 million square feet of GLA.
The acquired industrial properties have the following characteristics: Metropolitan Area Number of Properties GLA Occupancy at 12/31/24 Houston, TX 4 210,937 100% Southern California 1 52,929 100% Total 5 263,866 Property Sales During the year ended December 31, 2024, we sold 22 industrial properties totaling approximately 1.2 million square feet of GLA, at a weighted average capitalization rate of 6.7%, for total gross sales proceeds of approximately $162.8 million.
The acquired industrial properties have the following characteristics: Metropolitan Area Number of Properties GLA Occupancy at 12/31/25 Baltimore, MD 1 116,550 67% Phoenix, AZ 3 1,764,387 100% Total 4 1,880,937 Property Sales During the year ended December 31, 2025, we sold seven industrial properties totaling approximately 0.3 million square feet of GLA, at a weighted average capitalization rate of 6.9%, and one land parcel for total gross sales proceeds of approximately $42.3 million.
Lease costs per square foot represent the total turnover costs expected to be incurred on the leases signed during the period and do not reflect actual expenditures for the period. First generation lease costs for development and acquisition properties are excluded. (E) Represents the weighted average square feet of tenants renewing their respective leases.
Lease costs per square foot represent the total expected turnover costs for leases that commenced during the period and may not reflect actual expenditures for the period. Excludes properties with zero square footage, such as income producing land. (E) Represents the weighted average square footage of tenants that renewed their respective leases.
Assumes no exercise of lease renewal options, if any. (D) Lease costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions funded and costs capitalized for leasing transactions.
(C) The lease term is expressed in years and assumes no exercise of any renewal or extension options. (D) Lease costs include all costs incurred or capitalized for improvements related to vacant and renewal spaces, along with leasing commissions and other capitalized transaction-related costs.
The placed in-service development projects have the following characteristics: Metropolitan Area Number of Properties GLA Occupancy at 12/31/24 Central/Eastern Pennsylvania 2 1,057,728 100% Central Florida 1 107,984 0% Northern California 2 1,052,847 100% Southern California 2 543,945 100% Total 7 2,762,504 As of December 31, 2024, we substantially completed four developments totaling approximately 0.8 million square feet of GLA.
The placed in-service development projects have the following characteristics: Metropolitan Area Number of Properties GLA Occupancy at 12/31/25 Central Florida 1 112,000 100% Houston, TX 1 424,560 100% Nashville, TN 1 541,500 100% Southern California 3 637,668 25% South Florida 1 135,707 76% Total 7 1,851,435 As of December 31, 2025, we substantially completed three developments totaling approximately 0.6 million square feet of GLA.
In 2024, new supply outpaced incremental demand, leading to a slight increase in national vacancy levels, though they remained low overall. Market-level rental rate growth was flat to slightly positive in virtually all of the markets in which we own and operate properties. However, Southern California experienced rental rate declines after two years of extraordinary growth.
Market-level rental rate growth was flat to slightly positive in virtually all of the markets in which we own and operate properties. Southern California experienced lower rental rates but at a reduced pace compared to 2024.
Worth, TX 7,390,236 53 97.4% Denver, CO (A) 3,802,262 37 80.8% Detroit, MI 590,906 11 100.0% Houston, TX 3,689,915 33 96.5% Minneapolis/St.
Worth, TX 7,390,236 53 98.3% Denver, CO (A) 3,742,551 36 82.3% Detroit, MI 326,035 5 100.0% Houston, TX 4,114,475 34 99.8% Minneapolis/St.
The following table shows scheduled lease expirations for our in-service properties as of December 31, 2024: Year of Expiration (A) Number of Leases Expiring GLA Expiring (B) Percentage of GLA Expiring (B) Annualized Base Rent Under Expiring Leases (In thousands) (C) Percentage of Total Annualized Base Rent Expiring (C) 2025 87 2,897,747 4.6% $21,613 4.3% 2026 167 8,396,541 13.2% 58,341 11.6% 2027 175 9,472,076 14.8% 67,577 13.4% 2028 140 9,763,621 15.3% 90,008 17.8% 2029 137 7,818,241 12.2% 73,033 14.5% 2030 76 5,402,436 8.5% 41,831 8.3% 2031 26 3,628,941 5.7% 33,733 6.7% 2032 34 6,424,457 10.1% 42,797 8.5% 2033 17 2,453,117 3.8% 22,953 4.5% 2034 15 3,600,846 5.6% 23,465 4.6% Thereafter 11 3,989,351 6.2% 29,043 5.8% Total 885 63,847,374 100% $504,394 100% _______________ (A) Includes leases that expire on or after January 1, 2025 and assumes tenants do not exercise existing renewal, termination or purchase options.
The following table shows scheduled lease expirations for our in-service properties as of December 31, 2025: Year of Expiration (A) Number of Leases Expiring GLA Expiring (B) Percentage of GLA Expiring (B) Annualized Base Rent Under Expiring Leases (In thousands) (C) Percentage of Total Annualized Base Rent Expiring (C) 2026 111 4,600,013 7.0% $34,949 6.3% 2027 171 8,276,871 12.6% 63,548 11.5% 2028 159 10,699,101 16.3% 101,940 18.4% 2029 146 8,382,881 12.7% 80,923 14.6% 2030 123 7,139,667 10.9% 62,492 11.3% 2031 54 5,854,349 8.9% 49,469 8.9% 2032 43 6,854,414 10.4% 50,712 9.2% 2033 26 3,050,861 4.6% 28,519 5.2% 2034 19 4,185,546 6.4% 29,694 5.4% 2035 11 4,011,123 6.1% 28,491 5.1% Thereafter 16 2,725,575 4.1% 22,957 4.1% Total 879 65,780,401 100% $553,694 100% _______________ (A) Includes leases that expire on or after January 1, 2026 and assumes tenants do not exercise existing renewal, termination or purchase options.
Number of Leases With Rent Concessions Square Feet (in 000's) Rent Concessions New Leases 54 1,863 $ 6,015 Renewal Leases 12 474 2,034 Development / Acquisition Leases 11 3,072 18,812 Total 77 5,409 $ 26,861 25 Lease Expirations Fundamentals for the United States industrial real estate market were balanced in 2024.
Number of Leases With Rent Concessions Square Feet (in 000's) Rent Concessions New Leases 56 1,571 $ 4,386 Renewal Leases 8 712 4,039 Development / Acquisition Leases 10 977 4,634 Total 74 3,260 $ 13,059 25 Lease Expirations Fundamentals for the United States industrial real estate market demonstrated modest improvement overall in 2025.
The estimated total investment for these development projects under construction is $280.4 million, of which $102.9 million has been funded as of December 31, 2024. There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost.
This total includes two projects for which vertical construction commenced in the first quarter of 2026. The estimated total investment for these development projects under construction is $187.1 million, of which $100.1 million has been funded as of December 31, 2025.
Removed
The 412 in-service industrial properties contained an aggregate of approximately 66.7 million square feet of GLA in 19 states, with a diverse base of approximately 900 tenants engaged in a wide variety of businesses, including e-commerce, third-party logistics and transportation, consumer and other manufactured products, retail and consumer services, food and beverage, lumber and building materials, wholesale goods, health services, governmental and other.
Added
There can be no assurance that the actual completion cost for these developments will not exceed the estimated completion cost. The development projects under construction have the following characteristics: Metropolitan Area Number of Properties GLA Anticipated Quarter of Building Completion Central/Eastern Pennsylvania 2 361,800 Q1 2026 Central/Eastern Pennsylvania 1 225,680 Q2 2026 Dallas/Ft. Worth, TX 1 176,182 Q2 2026 Dallas/Ft.
Removed
Demand for new industrial space grew modestly compared to the post-COVID inventory rebuilding periods of 2021 and 2022. New industrial space was delivered throughout the year, while the volume of new construction starts slowed significantly compared to 2023 in response to the moderation of demand.
Added
For properties acquired from the Joint Venture located in Phoenix, the purchase price used in this calculation was reduced by our proportionate share of the Joint Venture's gain on sale and incentive fees.
Added
Demand for new industrial space increased compared to 2024. New industrial space was delivered throughout 2025 at a slower pace than the prior year. The volume of new construction starts remained low relative to the recent peak of 2023 given the pace of demand. In 2025, new supply outpaced incremental demand, leading to an increase in national vacancy levels.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed7 unchanged
Biggest changeFiscal year ending December 31. 12/19 12/20 12/21 12/22 12/23 12/24 FIRST INDUSTRIAL REALTY TRUST, INC. $ 100.00 $ 104.18 $ 167.02 $ 124.66 $ 139.49 $ 136.64 S&P 500 $ 100.00 $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 FTSE NAREIT Equity REITs $ 100.00 $ 92.00 $ 131.78 $ 99.67 $ 113.35 $ 123.25 _______________ (A) The information provided in this performance graph shall not be deemed to be "soliciting material," to be "filed" or to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 unless specifically treated as such.
Biggest changeThe information provided in this performance graph shall not be deemed to be "soliciting material," to be "filed" or to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 unless specifically treated as such.
The number of holders does not include individuals or entities who beneficially own shares but whose shares are held of record by a broker or clearing agency, but does include each such broker or clearing agency as one record holder. The Operating Partnership had 107 holders of record of Units registered with our transfer agent.
The number of holders does not include individuals or entities who beneficially own shares but whose shares are held of record by a broker or clearing agency, but does include each such broker or clearing agency as one record holder. The Operating Partnership had 106 holders of record of Units registered with our transfer agent.
Our dividend/distribution policy is determined by the Company's Board of Directors and is dependent on multiple factors, including cash flow and capital expenditure requirements, as well as ensuring that the Company meets the minimum distribution requirements set forth in the Code. The Company met the minimum distribution requirements with respect to 2024.
Our dividend/distribution policy is determined by the Company's Board of Directors and is dependent on multiple factors, including cash flow and capital expenditure requirements, as well as ensuring that the Company meets the minimum distribution requirements set forth in the Code. The Company met the minimum distribution requirements with respect to 2025.
Limited Partner Units During the year ended December 31, 2024, the Operating Partnership issued 396,400 Limited Partner Units as part of its equity compensation program, including Limited Partner Units issued in connection with dividends accrued on the underlying common stock for certain employees and directors. See Note 11 to the Consolidated Financial Statements for more information.
Limited Partner Units During the year ended December 31, 2025, the Operating Partnership issued 549,203 Limited Partner Units as part of its equity compensation program, including Limited Partner Units issued in connection with dividends accrued on the underlying common stock for certain employees and directors. See Note 11 to the Consolidated Financial Statements for more information.
The NAREIT Index represents the performance of our publicly traded REIT peers. The historical information set forth below is not necessarily indicative of future performance. (A) $100 invested on 12/31/19 in stock or index, including reinvestment of dividends.
The NAREIT Index represents the performance of our publicly traded REIT peers. The historical information set forth below is not necessarily indicative of future performance. (A) $100 invested on 12/31/20 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.
As of December 31, 2024, if all Limited Partner Units were redeemed, the Operating Partnership could satisfy its redemption obligations by making an aggregate cash payment of approximately $182.5 million or by issuing 3,640,860 shares of the Company's common stock. 27 Performance Graph The following graph provides a comparison of the cumulative total stockholder return among the Company, the FTSE NAREIT Equity REIT Total Return Index (the "NAREIT Index") and the Standard & Poor's 500 Index ("S&P 500").
As of December 31, 2025, if all Limited Partner Units were redeemed, the Operating Partnership could satisfy its redemption obligations by making an aggregate cash payment of approximately $230.9 million or by issuing 4,031,088 shares of the Company's common stock. 27 Performance Graph The following graph provides a comparison of the cumulative total stockholder return among the Company, the FTSE NAREIT Equity REIT Total Return Index (the "NAREIT Index") and the Standard & Poor's 500 Index ("S&P 500").
Quarter Ended Closing High Closing Low Dividend/Distribution Declared December 31, 2024 $55.90 $49.60 $0.37 September 30, 2024 $56.97 $47.13 $0.37 June 30, 2024 $53.28 $45.42 $0.37 March 31, 2024 $54.80 $50.59 $0.37 December 31, 2023 $53.97 $40.64 $0.32 September 30, 2023 $54.86 $47.59 $0.32 June 30, 2023 $54.36 $50.09 $0.32 March 31, 2023 $54.94 $47.64 $0.32 As of February 12, 2025, the Company had 249 common stockholders of record.
Quarter Ended Closing High Closing Low Dividend/Distribution Declared December 31, 2025 $59.03 $50.26 $0.445 September 30, 2025 $52.64 $47.58 $0.445 June 30, 2025 $54.05 $43.07 $0.445 March 31, 2025 $57.99 $48.46 $0.445 December 31, 2024 $55.90 $49.60 $0.370 September 30, 2024 $56.97 $47.13 $0.370 June 30, 2024 $53.28 $45.42 $0.370 March 31, 2024 $54.80 $50.59 $0.370 As of February 10, 2026, the Company had 236 common stockholders of record.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

63 edited+21 added−17 removed26 unchanged
Biggest changeFinancing Activities: Cash used in financing activities increased $185.2 million ($185.3 million for the Operating Partnership), primarily due to the following: • decrease in net borrowings under our Unsecured Credit Facility of $173.0 million in 2024 as compared to 2023; and • increase in dividend and unit distributions of $24.1 million due to the Company increasing the dividend rate in 2024 as well as an increase in common shares and units outstanding; offset by: ◦ decrease in distributions to noncontrolling interests of $11.4 million in 2024 as compared to 2023. 34 Material Cash Requirements At December 31, 2024, our cash and cash equivalents and restricted cash was approximately $51.2 million, after excluding our Joint Venture partner's share of cash and cash equivalents that we consolidate and report in our financial statements.
Biggest changeFinancing Activities: Cash provided by financing activities was $89.3 million ($89.2 million for the Operating Partnership) in 2025 as compared to cash used in financing activities of $213.0 million ($213.1 million for the Operating Partnership) in 2024, resulting in an increase of cash provided by financing activities of $302.3 million, primarily due to the following: • the issuance of senior unsecured notes in 2025 resulting in net proceeds of $443.8 million; offset by: ◦ increase in net repayments of borrowings under our Unsecured Credit Facility of $82.0 million in 2025 as compared to 2024; ◦ increase in dividend and unit distributions of $37.7 million due to the Company increasing the dividend rate in 2025 as well as a slight increase in common shares and units outstanding; and ◦ increase in financing issuance costs of $12.4 million related to the amendment and restatement of the Unsecured Credit Facility and the $200.0 million unsecured term loan, the issuance of senior unsecured notes and the extension of the $300.0 million unsecured term loan in 2025. 34 Material Cash Requirements At December 31, 2025, our cash and cash equivalents were approximately $72.7 million, excluding our Joint Venture partner's share of cash and cash equivalents that we consolidate and report in our financial statements.
In addition, while some of our existing leases are below current market rental rates, we believe that lease renewals or re-leasing opportunities will allow us to adjust rental rates upward, aligning them more closely with market rates. These adjustments could offset inflationary pressures on our operating expenses. Inflation also continues to affect our development portfolio.
In addition, while some of our existing leases are below current market rental rates, we believe that lease renewals or re-leasing opportunities will allow us to adjust rental rates upward, aligning them more closely with current market rates. These adjustments could help offset inflationary pressures on our operating expenses. Inflation also continues to affect our development portfolio.
FFO and SS NOI are factors used by management in measuring our performance, including for purposes of determining the compensation of our executive officers under our 2024 incentive compensation plan. Neither FFO nor SS NOI should be considered as a substitute for net income, or any other measures derived in accordance with GAAP.
FFO and SS NOI are factors used by management in measuring our performance, including for purposes of determining the compensation of our executive officers under our 2025 incentive compensation plan. Neither FFO nor SS NOI should be considered as a substitute for net income, or any other measures derived in accordance with GAAP.
Interest Rate Risk The following analysis presents the hypothetical gain or loss in earnings, cash flows or fair value of the financial instruments and derivative instruments that are held by us at December 31, 2024 that are sensitive to changes in interest rates.
Interest Rate Risk The following analysis presents the hypothetical gain or loss in earnings, cash flows or fair value of the financial instruments and derivative instruments that are held by us at December 31, 2025 that are sensitive to changes in interest rates.
We have no other off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, results of operation or liquidity and capital resources. Environmental We paid approximately $0.8 million and $0.7 million during the years ended December 31, 2024 and 2023, respectively, related to environmental expenditures.
We have no other off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, results of operation or liquidity and capital resources. Environmental We paid approximately $0.8 million and $0.8 million during the years ended December 31, 2025 and 2024, respectively, related to environmental expenditures.
Other revenues are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, interest income, joint venture fees and other miscellaneous revenues.
Other Revenues and Property Expenses: Other revenues are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, interest income, joint venture fees and other miscellaneous revenues.
In accordance with the NAREIT definition of FFO, we calculate FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain (or plus loss) on sale of real estate, adjusted for any associated income tax provision or benefits.
In accordance with the NAREIT definition of FFO, we calculate FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate.
The following table shows a reconciliation of the same store revenues and property expenses disclosed in the results of operations (and reconciled to revenues and expenses reflected on the statements of operations) to SS NOI for the years ended December 31, 2024 and 2023.
The following table shows a reconciliation of the same store revenues and property expenses, as disclosed in the results of operations and reconciled to revenues and expenses reflected on the statements of operations, to SS NOI for the years ended December 31, 2025 and 2024.
At December 31, 2024 and 2023, the fixed rate debt amounts include variable rate debt that has been effectively swapped to a fixed rate through the use of derivative instruments with an aggregate notional amount outstanding of $925.0 million that mitigate our exposure to our Unsecured Term Loans' variable interest rates, which are currently based on SOFR.
The fixed rate debt amounts at December 31, 2025 and 2024 include variable rate debt that has been effectively swapped to a fixed rate through the use of derivative instruments with an aggregate notional amount outstanding of $925.0 million. These derivatives mitigate our exposure to our Unsecured Term Loans' variable interest rates, which are based on SOFR.
Total debt, exclusive of unamortized debt issuance costs and unamortized discounts, at December 31, 2024 and 2023 is detailed below.
Total debt, exclusive of unamortized debt issuance costs and unamortized discounts, at December 31, 2025 and 2024 is detailed below.
If the SOFR rate component relevant to our variable rate debt were to have increased 10%, we estimate that our interest expense during the years ended December 31, 2024 and 2023 would have increased by approximately $1.5 million and $1.3 million, respectively, based on our average outstanding floating-rate debt during the years ended December 31, 2024 and 2023.
If the SOFR rate component relevant to our variable rate debt were to have increased 10%, we estimate that our interest expense during the years ended December 31, 2025 and 2024 would have increased by approximately $0.8 million and $1.5 million, respectively, based on our average outstanding floating-rate debt during the years ended December 31, 2025 and 2024.
Our balance under our Unsecured Credit Facility changes depending on our cash needs and the interest rate and facility fee are each subject to adjustment based on our leverage and investment grade rating. Weighted average maturity reflected in the table above assumes we extended the maturity pursuant to two, six-month extension options, subject to certain conditions.
Our balance under our Unsecured Credit Facility changes depending on our cash needs and the interest rate and facility fee are each subject to adjustment based on our leverage and investment grade rating. The weighted average maturity reflected in the table above assumes the exercise of two six-month extension options, subject to the satisfaction of certain conditions.
Additionally, if weighted average interest rates on our weighted average fixed rate debt were to have increased by 10% due to refinancing, interest expense would have increased by approximately $7.5 million and $7.5 million during the years ended December 31, 2024 and 2023, respectively. 38 Supplemental Earnings Measure Investors and analysts in the real estate industry commonly use funds from operations ("FFO") and net operating income ("NOI") as supplemental performance measures of an equity REIT.
Additionally, if weighted average interest rates on our weighted average fixed rate debt were to have increased by 10% due to refinancing, interest expense would have increased by approximately $9.0 million and $7.5 million during the years ended December 31, 2025 and 2024, respectively. 38 Supplemental Earnings Measure Investors in and industry analysts following the real estate industry utilize funds from operations ("FFO") and NOI as supplemental performance measures of an equity REIT.
Inflation Inflation had a minimal impact on the operating performance of our industrial properties across our markets prior to 2021, due to relatively low inflation rates. However, inflation increased significantly in 2021 and 2022, remain elevated relative to pre-2021 levels and the future direction of inflation rates is uncertain.
Inflation Inflation had a minimal impact on the operating performance of our industrial properties across our markets prior to 2021, due to relatively low inflation rates. However, inflation increased significantly in 2021 and 2022, and although it has moderated since 2023, it remains elevated relative to pre-2021 levels. The future direction of inflation rates is uncertain.
We expect to meet long-term (after December 31, 2025) liquidity requirements such as property acquisitions, developments, scheduled debt maturities, major renovations, expansions and other nonrecurring capital improvements through long-term unsecured and secured indebtedness, the disposition of select assets and the issuance of additional equity or debt securities, subject to market conditions. 35 We believe that we were in compliance with our financial covenants as of December 31, 2024, and we anticipate that we will be able to operate in compliance with our financial covenants in 2025.
We expect to meet our long-term liquidity requirements (beyond December 31, 2026) such as property acquisitions, development projects, scheduled debt maturities, major renovations, expansions and other nonrecurring capital improvements through a combination of select asset dispositions, long-term unsecured and secured indebtedness and the issuance of additional equity securities, subject to market conditions. 35 We believe that we were in compliance with our financial covenants as of December 31, 2025, and we anticipate that we will be able to operate in compliance with our financial covenants in 2026.
Apart from these payment obligations, we believe that our principal short-term liquidity needs include funding normal recurring expenses, property acquisitions, developments, renovations, expansions, other nonrecurring capital improvements, debt service requirements, the minimum distributions required to maintain the Company's REIT qualification under the Code and distributions approved by the Company's Board of Directors.
Beyond this scheduled maturity, we believe that our principal short-term liquidity needs include funding normal recurring expenses, property acquisitions, developments, expansions, renovations and other nonrecurring capital improvements, debt service requirements, the minimum distributions required to maintain the Company's REIT status under the Code and distributions approved by the Company's Board of Directors.
We also had $467.5 million available for additional borrowings under our Unsecured Credit Facility as of December 31, 2024. We have considered our short-term liquidity needs through December 31, 2025, as well as the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet those needs.
We also had $664.9 million of availability for additional borrowings under our Unsecured Credit Facility as of December 31, 2025. We have considered our short-term liquidity requirements through December 31, 2026, as well as the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet those requirements.
As of February 13, 2025, we had approximately $480.5 million available for additional borrowings under our Unsecured Credit Facility. As of December 31, 2024, our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB/Positive, respectively.
As of February 11, 2026, we had approximately $726.9 million available for additional borrowings under our Unsecured Credit Facility. 36 As of December 31, 2025, our senior unsecured notes have been assigned credit ratings from Standard & Poor's, Moody's and Fitch Ratings of BBB/Stable, Baa2/Stable and BBB+/Stable, respectively.
Such risks principally include credit risk and legal risk and are not represented in the following analysis. 37 At December 31, 2024, $1,933.2 million, or 87.3%, of our total debt, excluding unamortized debt issuance costs, was fixed rate debt, while $282.0 million, or 12.7%, was variable rate debt.
Such risks principally include credit risk and legal risk and are not represented in the following analysis. 37 At December 31, 2025, $2,379.9 million, or 92.9%, of our total debt, excluding unamortized debt issuance costs, was fixed rate debt, while $183.0 million, or 7.1%, was variable rate debt.
Sold properties are properties that were sold subsequent to December 31, 2022. Developments and redevelopments (collectively referred to as "(Re)Developments") include (re)developments that were not: a) substantially complete 12 months prior to January 1, 2023; or b) stabilized prior to January 1, 2023.
Sold Properties: Sold properties are properties that were disposed of subsequent to December 31, 2023. Developments and Redevelopments: Developments and redevelopments (collectively referred to as "(Re)Developments") include properties that were either: (i) not substantially complete 12 months prior to January 1, 2024; or (ii) not stabilized prior to January 1, 2024.
The impairment assessment and fair value measurement requires the use of estimates and assumptions, including the timing and amounts of cash flow projections, discount rates and terminal capitalization rates. 33 Liquidity and Capital Resources Cash Flow Activity The following table summarizes our cash flow activity for the Company for the years ended December 31, 2024 and 2023: Year Ended December 31, 2024 2023 (In thousands) Net cash provided by operating activities $ 352,488 $ 304,815 Net cash used in investing activities (131,620) (378,306) Net cash used in financing activities (213,030) (27,783) The following table summarizes our cash flow activity for the Operating Partnership for the years ended December 31, 2024 and 2023: Year Ended December 31, 2024 2023 (In thousands) Net cash provided by operating activities $ 352,542 $ 304,813 Net cash used in investing activities (131,620) (378,306) Net cash used in financing activities (213,084) (27,781) Changes in cash flow for the year ended December 31, 2024, compared to the prior year are described as follows: Operating Activities: Cash provided by operating activities increased $47.7 million, primarily due to the following: • increase in net operating income from same store properties, acquired properties and recently developed properties of $48.7 million, offset by a decrease in net operating income due to the disposition of real estate of $8.8 million; and • increase in accounts payable, accrued expenses, other liabilities, rents received in advance and security deposits due to timing of cash payments; offset by: ◦ decrease in distributions from our Joint Venture of $4.5 million in 2024 as compared to 2023; and ◦ increase of $8.6 million in interest expense.
The impairment assessment and fair value measurement requires the use of estimates and assumptions, including the timing and amounts of cash flow projections, discount rates and terminal capitalization rates. 33 Liquidity and Capital Resources Cash Flow Activity The following table summarizes our cash flow activity for the Company for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 (In thousands) Net cash provided by operating activities $ 461,263 $ 352,488 Net cash used in investing activities (524,179) (131,620) Net cash provided by (used in) financing activities 89,266 (213,030) The following table summarizes our cash flow activity for the Operating Partnership for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 (In thousands) Net cash provided by operating activities $ 461,336 $ 352,542 Net cash used in investing activities (524,179) (131,620) Net cash provided by (used in) financing activities 89,193 (213,084) Changes in cash flow for the year ended December 31, 2025, compared to the prior year are described as follows: Operating Activities: Cash provided by operating activities increased $108.8 million, primarily due to the following: • increase in net operating income ("NOI") from same store properties, acquired properties and recently developed properties of $56.3 million offset by a decrease in NOI due to the disposition of real estate of $7.7 million; • increase in distributions from our Joint Venture of $54.6 million in 2025 as compared to 2024; and • increase in accounts payable, accrued expenses, other liabilities, rents received in advance and security deposits due to timing of cash payments; offset by: ◦ increase in tenant accounts receivable, prepaid expenses and other assets due to timing of cash receipts.
Weighted Average Interest Rate at December 31, 2024 Outstanding Balance at Weighted Average Maturity in Years at December 31, 2024 December 31, 2024 December 31, 2023 (In thousands) Mortgage Loan Payable (A) 4.17% $ 9,643 $ 9,978 3.6 Senior Unsecured Notes, Gross Senior Unsecured Bonds (A) 7.58% 48,571 48,571 4.3 Private Placement Notes (A) 3.66% 950,000 950,000 5.0 Subtotal 998,571 998,571 Unsecured Term Loans, Gross 2021 Unsecured Term Loan (B) 1.83% 200,000 200,000 1.5 2022 Unsecured Term Loan (C) 3.63% 425,000 425,000 2.8 2022 Unsecured Term Loan II (D) 4.87% 300,000 300,000 2.6 Subtotal 925,000 925,000 Unsecured Credit Facility (E) 5.19% 282,000 299,000 1.5 Total Debt $ 2,215,214 $ 2,232,549 (A) These loans have a fixed interest rate.
Weighted Average Interest Rate at December 31, 2025 Outstanding Balance at Weighted Average Maturity in Years at December 31, 2025 December 31, 2025 December 31, 2024 (In thousands) Mortgage Loan Payable (A) 4.17% $ 9,295 $ 9,643 2.6 Senior Unsecured Notes, Gross Senior Unsecured Bonds (A) 5.48% 498,571 48,571 4.9 Private Placement Notes (A) 3.66% 950,000 950,000 3.9 Subtotal 1,448,571 998,571 Unsecured Term Loans, Gross 2021 Unsecured Term Loan N/A — 200,000 N/A 2022 Unsecured Term Loan II (B)(E) 4.42% 300,000 300,000 1.6 2022 Unsecured Term Loan (C)(E) 3.64% 425,000 425,000 1.8 2025 Unsecured Term Loan (D)(E) 1.83% 200,000 — 4.2 Subtotal 925,000 925,000 Unsecured Credit Facility (F) 4.44% 183,000 282,000 4.2 Total Debt $ 2,565,866 $ 2,215,214 (A) These loans have a fixed interest rate.
Depreciation and other amortization from acquired properties increased $1.7 million due to properties acquired subsequent to December 31, 2022. Depreciation and other amortization from sold properties decreased $2.5 million due to properties sold subsequent to December 31, 2022. Depreciation and other amortization from (re)developments increased $10.5 million primarily due to an increase in depreciation and amortization related to completed developments.
Depreciation and other amortization from acquired properties increased $8.1 million due to properties acquired subsequent to December 31, 2023. Depreciation and other amortization from sold properties decreased $1.6 million due to properties sold subsequent to December 31, 2023. Depreciation and other amortization from (re)developments increased $6.9 million primarily due to an increase in depreciation and amortization related to completed developments.
Off-Balance Sheet Arrangements At December 31, 2024, we had letters of credit and performance bonds outstanding amounting to $32.2 million in the aggregate. The letters of credit and performance bonds are not reflected as liabilities on our balance sheet.
Off-Balance Sheet Arrangements At December 31, 2025, we had letters of credit and performance bonds outstanding in an aggregate amount of $35.9 million. The letters of credit and performance bonds are not reflected as liabilities on our balance sheet.
(E ) The interest rate is a variable rate based on SOFR, plus a 0.10% SOFR adjustment, plus a credit spread of 0.775% and a facility fee of 15 basis points.
(F ) The interest rate is variable and based on SOFR plus a credit spread of 0.775%, and requires us to pay a facility fee of 15 basis points.
Properties are moved from the same store classification to the redevelopment classification when capital expenditures for a project are estimated to exceed 25% of the undepreciated gross book value of the property. Acquired properties are properties that were acquired subsequent to December 31, 2022 and held as an operating property through December 31, 2024.
Properties are moved from the same store category to the redevelopment classification when projected capital expenditures are estimated to exceed 20% of the property's undepreciated gross book value. Acquired Properties: Acquired properties are properties that were purchased subsequent to December 31, 2023 and held as an operating property through December 31, 2025.
Actual results could differ materially from those projected in the forward-looking statements. Our business subjects us to market risk from interest rates, as described below.
Market Risk The following discussion about our risk-management activities includes "forward-looking statements" that involve risk and uncertainties. Actual results could differ materially from those projected in the forward-looking statements. Our business subjects us to market risk from interest rates, as described below.
(C) The interest rate is based on SOFR, plus a 0.10% SOFR adjustment, plus a credit spread of 0.84%. We have interest rate swaps, with an aggregate notional value of $425.0 million, that effectively fix the SOFR rate that results in an all-in interest rate of 3.63% at December 31, 2024. These interest rate swaps mature in September 2027.
We entered into interest rate swaps with an aggregate notional value of $425.0 million, that effectively fix the SOFR component and result in an all-in interest rate of 3.64% at December 31, 2025. These swaps mature in September 2027. (D) The interest rate is based on SOFR, plus a 0.10% SOFR adjustment and a credit spread of 0.85%.
The following table shows a reconciliation of net income available to common stockholders and participating securities to the calculation of FFO available to common stockholders and participating securities as follows: Year Ended December 31, 2024 2023 2022 2021 2020 (In thousands) Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities $ 287,554 $ 274,816 $ 359,134 $ 270,997 $ 195,989 Adjustments: Depreciation and Other Amortization of Real Estate 171,207 162,098 146,448 130,062 128,814 Depreciation and Other Amortization of Real Estate in the Joint Venture 2,758 — — — — Gain on Sale of Real Estate (111,970) (95,650) (128,268) (150,310) (86,751) Gain on Sale of Real Estate (Including Incentive Fees) from Joint Venture (1,756) (28,034) (115,024) — (4,443) Income Tax Provision - Excluded from FFO 4,542 7,311 23,658 4,853 2,198 Noncontrolling Interest Share of Adjustments (1,850) 2,126 15,222 357 (843) Funds from Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities $ 350,485 $ 322,667 $ 301,170 $ 255,959 $ 234,964 39 Same Store Net Operating Income SS NOI is a non-GAAP financial measure that provides a measure of rental operations and, as calculated by us, that does not factor in joint venture fees, depreciation and amortization, general and administrative expense, joint venture development services expense, interest expense, equity in income and loss from joint ventures, income tax benefit and provision and gains and losses on the sale of real estate.
The following table shows a reconciliation of net income available to common stockholders and participating securities to the calculation of FFO available to common stockholders and participating securities as follows: Year Ended December 31, 2025 2024 2023 2022 2021 (In thousands) Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities $ 247,443 $ 287,554 $ 274,816 $ 359,134 $ 270,997 Adjustments: Depreciation and Other Amortization of Real Estate 184,682 171,207 162,098 146,448 130,062 Depreciation and Other Amortization of Real Estate in the Joint Venture 2,614 2,758 — — — Gain on Sale of Real Estate (26,905) (111,970) (95,650) (128,268) (150,310) Gain on Sale of Real Estate (Including Incentive Fees) from the Joint Venture (34,184) (1,756) (28,034) (115,024) — Income Tax Provision - Excluded from FFO 13,909 4,542 7,311 23,658 4,853 Noncontrolling Interest Share of Adjustments 4,217 (1,850) 2,126 15,222 357 Funds from Operations Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities $ 391,776 $ 350,485 $ 322,667 $ 301,170 $ 255,959 39 Same Store Net Operating Income We consider cash basis SS NOI to be a useful non-GAAP supplemental measure of our operating performance.
Depreciation from corporate furniture, fixtures and equipment and other remained relatively unchanged. For the year ended December 31, 2024, we recognized $112.0 million of gain on sale of real estate related to the sale of 22 industrial properties comprising approximately 1.2 million square feet of GLA.
For the year ended December 31, 2024, we recognized $112.0 million of gain on sale of real estate related to the sale of 22 industrial properties totaling approximately 1.2 million square feet of GLA.
(D) The interest rate is based on SOFR, plus a 0.10% SOFR adjustment, plus a credit spread of 0.84%. We have interest rate swaps, with an aggregate notional value of $300.0 million, that effectively fix the SOFR rate that results in an all-in interest rate of 4.87% at December 31, 2024.
(B) The interest rate is based on SOFR, plus a 0.10% SOFR adjustment and a credit spread of 0.85%. We entered into interest rate swaps with an aggregate notional value of $300.0 million, that effectively fix the SOFR component and result in an all-in interest rate of 4.42% at December 31, 2025.
We estimate 2025 expenditures of approximately $1.9 million which has been accrued at December 31, 2024. We estimate that the aggregate expenditures which need to be expended in 2025 and beyond with regard to currently identified environmental issues will not exceed approximately $4.6 million which has been accrued at December 31, 2024.
We estimate 2026 expenditures of approximately $1.8 million, which has been accrued at December 31, 2025. We further estimate that aggregate expenditures for currently identified environmental issues to be incurred in 2026 and beyond will not exceed approximately $4.5 million, which has been accrued at December 31, 2025.
Currently, we do not enter into financial instruments for trading or other speculative purposes. See Material Cash Requirements for further details on the derivative instruments. As of December 31, 2024 and 2023, the estimated fair value of our debt was approximately $2,125.3 million and $2,135.7 million, respectively, based on our estimate of the then-current market interest rates.
See "Material Cash Requirements" for further details on the derivative instruments. As of December 31, 2025 and 2024, the estimated fair value of our debt was approximately $2,525.4 million and $2,125.3 million, respectively, based on our estimate of the then-current market interest rates.
However, our cost of borrowing would increase and our ability to access certain financial markets may be limited. 36 Our other material cash requirements from known contractual and other obligations as of December 31, 2024 include an estimate of remaining payments on the completion of development projects under construction for the Company of $177.5 million which includes all costs necessary to place the properties into service.
Our other material cash requirements from known contractual and other obligations as of December 31, 2025 include an estimate of remaining payments on the completion of development projects under construction for the Company of $87.0 million which includes all costs necessary to place the properties into service.
Other property expenses are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, vacant land expenses and other miscellaneous regional expenses. Our future financial condition and results of operations, including rental revenues, may be impacted by the future acquisition, (re)development and sale of properties.
Other property expenses are derived from the operations of properties not placed in service under one of the categories discussed above, the operations of our maintenance company, vacant land expenses and other miscellaneous regional expenses.
Revenues from acquired properties increased $4.3 million due to the nine industrial properties acquired subsequent to December 31, 2022 totaling approximately 0.4 million square feet of GLA. Revenues from sold properties decreased $12.2 million due to the 33 industrial properties sold subsequent to December 31, 2022 totaling approximately 2.2 million square feet of GLA.
Revenues from acquired properties increased $10.9 million due to the nine industrial properties acquired subsequent to December 31, 2023 totaling approximately 2.1 million square feet of GLA. Revenues from sold properties decreased $9.7 million due to the 29 industrial properties sold subsequent to December 31, 2023 totaling approximately 1.5 million square feet of GLA.
This higher amount included our pro-rata share of gain from the sale of real estate by the Joint Venture and related incentive fees. Both periods include the 6% interest held by our partner in the Joint Venture, which is consolidated and reported in our financial statements.
Equity in income of joint venture increased by $30.4 million, or 707.2%, primarily due to our pro-rata share of gain from the sales of real estate by the Joint Venture and related incentive fees. Both periods include the 6% interest held by our partner in the Joint Venture, which is consolidated and reported in our financial statements.
With respect to our outstanding indebtedness, we periodically evaluate our exposure to interest rate fluctuations, and may continue to enter into derivatives that mitigate, but do not eliminate, the impact of interest rate changes on our Unsecured Credit Facility. Market Risk The following discussion about our risk-management activities includes "forward-looking statements" that involve risk and uncertainties.
With respect to our outstanding indebtedness, we periodically evaluate our exposure to interest rate fluctuations, and may continue to enter into derivative instruments that mitigate, but do not eliminate, the impact of interest rate changes on our Unsecured Credit Facility and other variable-rate debt.
Investing Activities: Cash used in investing activities decreased $246.7 million, primarily due to the following: • decrease of $203.6 million related to the acquisition, development and investment in real estate attributed to fewer acquisitions and reduced expenditures for developments under construction during the year ended December 31, 2024 as compared to the year ended December 31, 2023; • increase of $38.5 million in net proceeds received from the disposition of real estate in 2024 as compared to 2023; and • decrease of $6.6 million in contributions to the Joint Venture in 2024 as compared to 2023.
Investing Activities: Cash used in investing activities increased $392.6 million, primarily due to the following: • increase of $340.9 million related to the acquisition, development and investment in real estate activity, primarily attributed to higher acquisition-related spending and increased expenditures for developments under construction during the year ended December 31, 2025 as compared to the year ended December 31, 2024; and • decrease of $118.9 million in net proceeds received from the disposition of real estate in 2025 as compared to 2024; offset by: ◦ increase in net distributions of $70.9 million resulting from our Joint Venture in 2025 as compared to 2024.
For the year ended December 31, 2023, we recognized $95.7 million of gain on sale of real estate related to the sale of 11 industrial properties comprising approximately 1.0 million square feet of GLA and two land parcels.
For the year ended December 31, 2025, we recognized $26.9 million of gain on sale of real estate related to the sale of seven industrial properties totaling approximately 0.3 million square feet of GLA and a land parcel.
Property expenses from same store properties increased $8.7 million primarily due to increases in real estate tax expense and snow removal costs. Property expenses from acquired properties increased $1.0 million due to properties acquired subsequent to December 31, 2022. Property expenses from sold properties decreased $3.4 million due to properties sold subsequent to December 31, 2022.
Property expenses from same store properties increased $8.1 million primarily due to increases in real estate taxes and repairs and maintenance expenses. Property expenses from acquired properties increased $1.6 million due to properties acquired subsequent to December 31, 2023. Property expenses from sold properties decreased $2.1 million due to properties sold subsequent to December 31, 2023.
At December 31, 2023, $1,933.5 million, or 86.6%, of our total debt, excluding unamortized debt issuance costs, was fixed rate debt, while $299.0 million, or 13.4%, was variable rate debt.
At December 31, 2024, $1,933.2 million, or 87.3%, of our total debt, excluding unamortized debt issuance costs, was fixed rate debt, while $282.0 million, or 12.7%, was variable rate debt.
(B) The interest rate is based on SOFR, plus a 0.10% SOFR adjustment, plus a credit spread of 0.85%. We have interest rate swaps, with an aggregate notional value of $200.0 million, that effectively fix the SOFR rate that results in an all-in interest rate of 1.83% at December 31, 2024. These interest rate swaps mature in February 2026.
We entered into interest rate swaps with an aggregate notional value of $200.0 million, that effectively fix the SOFR component and result in an all-in interest rate of 1.83% at December 31, 2025. These swaps mature in February 2026.
We define SS NOI as revenues minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses, minus the NOI of properties that are not same store properties and minus the impact of straight-line rent, the amortization of above/below market leases and lease termination fees.
We define SS NOI as revenues minus property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses. SS NOI is further adjusted to exclude the NOI of properties that are not included in the same store pool.
This decrease was partially offset by an increase in income tax expense associated with gains from the sale of real estate. 32 Comparison of Year Ended December 31, 2023 to Year Ended December 31, 2022 A discussion of changes in our results of operations between 2023 and 2022 can be found in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Comparison of Year Ended December 31, 2023 to Year Ended December 31, 2022" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Income tax expense increased $9.2 million, or 151.6%, primarily due to an increase in our pro-rata share of taxable gain and incentive fees from the Joint Venture. 32 Comparison of Year Ended December 31, 2024 to Year Ended December 31, 2023 A discussion of changes in our results of operations between 2024 and 2023 can be found in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Comparison of Year Ended December 31, 2024 to Year Ended December 31, 2023" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
These interest rate swaps mature in December 2025 ($150.0 million notional) and August 2027 ($150.0 million notional). Weighted average maturity reflected in the table above assumes we extended the maturity pursuant to two, one-year extension options, subject to certain conditions.
These swaps mature in August 2027 ($150.0 million notional) and December 2028 ($150.0 million notional). The weighted average maturity reflected in the table above assumes the exercise of a one-year extension option, subject to the satisfaction of certain conditions. (C) The interest rate is based on SOFR, plus a 0.10% SOFR adjustment and a credit spread of 0.85%.
Similar adjustments are made for our share of net income from an unconsolidated joint venture.
We also exclude the same adjustments from our share of net income from an unconsolidated joint venture.
The use of derivative financial instruments allows us to manage risks of increases in interest rates with respect to the effect these fluctuations would have on our earnings and cash flows. We designated all of the swaps related to our Unsecured Term Loans as cash flow hedges.
The use of derivative financial instruments allows us to manage the risk of interest rate increases and the related impact on our earnings and cash flows. We designated all of the swaps related to our Unsecured Term Loans as cash flow hedges. Currently, we do not enter into financial instruments for trading or other speculative purposes.
Additionally, the increase in interest expense was influenced by a higher weighted average debt balance of $2,220.7 million for the year ended December 31, 2024, up from $2,175.0 million for the year ended December 31, 2023, as well as an increase in the weighted average interest rate to 4.11% for the year ended December 31, 2024, compared to 4.05% for the year ended December 31, 2023.
Interest expense increased by $1.9 million, or 2.3%, primarily due to a higher weighted average debt balance of $2,392.4 million for the year ended December 31, 2025, as compared to $2,220.7 million for the year ended December 31, 2024, offset by a decrease in the weighted average interest rate to 4.08% for the year ended December 31, 2025 as compared to 4.11% for the year ended December 31, 2024 and an increase in capitalized interest of $4.5 million during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
Revenues from (re)developments increased $32.5 million due to an increase in occupancy and tenant recoveries. Reven ue s from other increased $0.5 million due to revenues from income-producing land parcels for which our ultimate intent is to redevelop, develop or sell the applicable land parcel, offset by a decrease in joint venture fees and legal settlement proceeds.
Revenues from (re)developments increased $24.1 million due to an increase in occupancy and tenant recoveries. Reven ue s from other decreased $2.0 million due to a decrease in interest income, a decrease in revenues from properties that were previously occupied and a decrease in joint venture fees, offset by legal settlement proceeds.
Year Ended December 31, 2024 2023 (In thousands) Same Store Revenues $ 594,527 $ 563,949 Same Store Property Expenses (144,221) (135,570) Same Store Net Operating Income Before Same Store Adjustments $ 450,306 $ 428,379 Same Store Adjustments: Straight-line Rent (3,960) (16,226) Above (Below) Market Lease Amortization (2,726) (3,189) Lease Termination Fees (589) (297) Same Store Net Operating Income $ 443,031 $ 408,667 40 The following table shows a reconciliation of net income available to common stockholders and participating securities to cash basis SS NOI without lease termination fees for the years ended December 31, 2024 and 2023.
Year Ended December 31, 2025 2024 (In thousands) Same Store Revenues $ 659,878 $ 625,807 Same Store Property Expenses (161,373) (153,279) Same Store Net Operating Income Before Same Store Adjustments $ 498,505 $ 472,528 Same Store Adjustments: Straight-line Rent (8,080) (9,102) Above (Below) Market Lease Amortization (2,117) (3,038) Lease Termination Fees (685) (589) Same Store Net Operating Income $ 487,623 $ 459,799 40 The following table shows a reconciliation of net income available to common stockholders and participating securities to cash basis SS NOI without lease termination fees for the years ended December 31, 2025 and 2024.
Additionally, the increase was influenced by a modest increase in overall compensation and a slight decrease in the amount of compensation capitalized to development activities. Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $2.1 million, or 58.3%.
Joint Venture development services expense, representing payments made to a third party for property development assistance within the Joint Venture, decreased by $0.9 million, or 58.9%.
We anticipate that these needs will be met with cash flows provided by operating activities as well as the disposition of select assets. These needs may also be met by the issuance of other debt or equity securities or borrowings under our Unsecured Credit Facility, subject to market conditions.
We anticipate meeting these short-term liquidity requirements primarily through cash flows generated by operating activities and proceeds from select asset dispositions. Additional sources of liquidity may include the issuance of other debt or equity securities or borrowings under our Unsecured Credit Facility, subject to market conditions.
Year Ended December 31, 2024 2023 (In thousands) Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities $ 287,554 $ 274,816 Interest Expense 82,973 74,335 Depreciation and Other Amortization of Real Estate 171,207 162,098 Depreciation and Other Amortization of Real Estate in the Joint Venture 2,758 — Income Tax Provision - Allocable to FFO 1,533 1,381 Net Income Attributable to the Noncontrolling Interests 8,434 11,021 Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (636) (501) Amortization of Debt Issuance Costs 3,646 3,626 Depreciation of Corporate FF&E 732 853 Gain on Sale of Real Estate (111,970) (95,650) Gain on Sale of Real Estate from Joint Venture (1,756) (28,034) Income Tax Provision - Excluded from FFO 4,542 7,311 General and Administrative 40,935 37,121 Equity in FFO from Joint Venture, Net of Noncontrolling Interest (4,661) (3,672) Net Operating Income $ 485,291 $ 444,705 Non-Same Store Net Operating Income (34,985) (16,326) Same Store Net Operating Income Before Same Store Adjustments $ 450,306 $ 428,379 Straight-line Rent (3,960) (16,226) Above (Below) Market Lease Amortization (2,726) (3,189) Lease Termination Fees (589) (297) Same Store Net Operating Income (Cash Basis without Termination Fees) $ 443,031 $ 408,667 Subsequent Events Subsequent to December 31, 2024, we sold two industrial buildings for a sales price of approximately $11.9 million, excluding transaction costs. 41
Year Ended December 31, 2025 2024 (In thousands) Net Income Available to First Industrial Realty Trust, Inc.'s Common Stockholders and Participating Securities $ 247,443 $ 287,554 Interest Expense 84,886 82,973 Depreciation and Other Amortization of Real Estate 184,682 171,207 Depreciation and Other Amortization of Real Estate in the Joint Venture 2,614 2,758 Income Tax Provision - Allocable to FFO 1,373 1,533 Net Income Attributable to the Noncontrolling Interests 16,636 8,434 Equity in FFO from Joint Venture Attributable to the Noncontrolling Interest (372) (636) Amortization of Debt Issuance Costs 5,033 3,646 Depreciation of Corporate FF&E 634 732 Gain on Sale of Real Estate (26,905) (111,970) Gain on Sale of Real Estate from Joint Venture (34,184) (1,756) Income Tax Provision - Excluded from FFO 13,909 4,542 General and Administrative 41,945 40,935 Equity in FFO from Joint Venture, Net of Noncontrolling Interest (2,727) (4,661) Net Operating Income $ 534,967 $ 485,291 Non-Same Store Net Operating Income (36,462) (12,763) Same Store Net Operating Income Before Same Store Adjustments $ 498,505 $ 472,528 Straight-line Rent (8,080) (9,102) Above (Below) Market Lease Amortization (2,117) (3,038) Lease Termination Fees (685) (589) Same Store Net Operating Income (Cash Basis without Termination Fees) $ 487,623 $ 459,799 Subsequent Events On January 22, 2026, we refinanced the 2022 Unsecured Term Loan to, among other things, extend its maturity date to January 2030 (with our option to extend the maturity date of the loan by one year) and eliminate the 10 basis point SOFR adjustment.
This decrease is primarily attributable to a reduction in development activities by our Joint Venture during the year ended December 31, 2024, compared to the year ended December 31, 2023. 31 Year Ended December 31, 2024 2023 $ Change % Change (In thousands) DEPRECIATION AND OTHER AMORTIZATION Same Store Properties $ 145,944 $ 146,863 $ (919) (0.6) % Acquired Properties 2,119 404 1,715 424.5 % Sold Properties 1,237 3,782 (2,545) (67.3) % (Re) Developments 19,670 9,172 10,498 114.5 % Corporate Furniture, Fixtures and Equipment and Other 2,969 2,730 239 8.8 % Total Depreciation and Other Amortization $ 171,939 $ 162,951 $ 8,988 5.5 % Depreciation and other amortization from same store properties remained relatively unchanged.
This decrease is primarily attributable to a reduction in development activities by our Joint Venture during the year ended December 31, 2025, compared to the year ended December 31, 2024. 31 Year Ended December 31, 2025 2024 $ Change % Change (In thousands) DEPRECIATION AND OTHER AMORTIZATION Same Store Properties $ 157,639 $ 155,989 $ 1,650 1.1 % Acquired Properties 8,851 778 8,073 1,037.7 % Sold Properties 298 1,897 (1,599) (84.3) % (Re) Developments 16,933 10,080 6,853 68.0 % Corporate Furniture, Fixtures and Equipment and Other 1,595 3,195 (1,600) (50.1) % Total Depreciation and Other Amortization $ 185,316 $ 171,939 $ 13,377 7.8 % Depreciation and other amortization from same store properties remained relatively unchanged.
For the years ended December 31, 2024 and 2023, the average daily occupancy rate of our same store properties was 96.8% and 97.6%, respectively. 30 Year Ended December 31, 2024 2023 $ Change % Change (In thousands) REVENUES Same Store Properties $ 594,527 $ 563,949 $ 30,578 5.4 % Acquired Properties 5,522 1,245 4,277 343.5 % Sold Properties 8,266 20,470 (12,204) (59.6) % (Re) Developments 43,669 11,176 32,493 290.7 % Other 17,657 17,187 470 2.7 % Total Revenues $ 669,641 $ 614,027 $ 55,614 9.1 % Revenues from same store properties increased $30.6 million primarily due to increases in rental rates and tenant recoveries, offset by a slight decrease in occupancy.
For the years ended December 31, 2025 and 2024, the average daily occupancy rate of our same store properties was 94.9% and 95.4%, respectively. 30 Year Ended December 31, 2025 2024 $ Change % Change (In thousands) REVENUES Same Store Properties $ 659,878 $ 625,807 $ 34,071 5.4 % Acquired Properties 12,430 1,485 10,945 737.0 % Sold Properties 1,979 11,714 (9,735) (83.1) % (Re) Developments 42,446 18,337 24,109 131.5 % Other 10,343 12,298 (1,955) (15.9) % Total Revenues $ 727,076 $ 669,641 $ 57,435 8.6 % Revenues from same store properties increased $34.1 million primarily due to increases in rental rates and tenant recoveries, offset by a decrease in occupancy.
Property expenses from (re)developments increased $9.1 million primarily due to the substantial completion of developments. Property expenses from other increased $1.9 million primarily due to an increase in real estate tax expense related to land parcels, demolition costs incurred to prepare certain land sites for construction and miscellaneous expenses.
Property expenses from other decreased $2.1 million primarily due to the capitalization of real estate taxes related to ongoing construction preparation activities on certain land parcels during the year ended December 31, 2025 as well as demolition costs incurred during the year ended December 31, 2024 to prepare certain land sites for construction. General and administrative expense remained relatively unchanged.
Year Ended December 31, 2024 2023 $ Change % Change (In thousands) PROPERTY EXPENSES Same Store Properties $ 144,221 $ 135,570 $ 8,651 6.4 % Acquired Properties 1,131 172 959 557.6 % Sold Properties 1,677 5,101 (3,424) (67.1) % (Re) Developments 17,366 8,295 9,071 109.4 % Other 18,426 16,517 1,909 11.6 % Total Property Expenses $ 182,821 $ 165,655 $ 17,166 10.4 % Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses.
Year Ended December 31, 2025 2024 $ Change % Change (In thousands) PROPERTY EXPENSES Same Store Properties $ 161,373 $ 153,279 $ 8,094 5.3 % Acquired Properties 2,035 390 1,645 421.8 % Sold Properties 466 2,540 (2,074) (81.7) % (Re) Developments 10,784 7,730 3,054 39.5 % Other 16,822 18,882 (2,060) (10.9) % Total Property Expenses $ 191,480 $ 182,821 $ 8,659 4.7 % Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses.
At December 31, 2024, we had eight projects under development, totaling approximately 2.0 million square feet of GLA, with an aggregate estimated investment of approximately $280.4 million.
At December 31, 2025, we had six projects classified as under development, totaling approximately 1.1 million square feet of GLA with an aggregate estimated investment of approximately $187.1 million. This total includes two projects for which vertical construction commenced in the first quarter of 2026 .
Developments, redevelopments and acquired income-producing land parcels for which our ultimate intent is to redevelop or develop on the land parcel are placed in service as they reach the earlier of 90% occupancy or one year subsequent to development/redevelopment construction completion.
A property is considered placed in service when it meets one of the following criteria: (i) acquired properties with occupancy of at least 75% at acquisition, unless we anticipate tenant move-outs within two years of ownership would reduce occupancy below 75%; (ii) acquired properties with occupancy less than 75% at acquisition are placed in service upon reaching the earlier of 90% occupancy or one year subsequent to acquisition; (iii) developments, redevelopments and acquired income-producing land parcels for which our ultimate intent is to redevelop or develop on the land parcel are placed in service upon the earlier of reaching 90% occupancy or one year after construction completion; and (iv) properties acquired with occupancy greater than 75% but with anticipated move out within two years of ownership, are placed in service upon the earlier of reaching 90% occupancy or twelve months after tenant move out.
The tables below summarize our revenues, property expenses and depreciation and other amortization by various categories for the years ended December 31, 2024 and 2023. Same store properties are properties owned prior to January 1, 2023 and held as an in-service property through December 31, 2024 and developments and redevelopments that were placed in service prior to January 1, 2023.
Same Store Properties: Same store properties include those that were owned and in service prior to January 1, 2024 and remained in service through December 31, 2025. Same store properties also includes developments and redevelopments placed in service prior to January 1, 2024.
Summary of 2024 Our operating results were strong in 2024. Our year end in-service occupancy was 96.2%, representing a 70-basis-point increase compared to December 31, 2023. Additionally, during the year ended December 31, 2024, we achieved a 50.8% increase in cash rental rates on new and renewal leases, while same store performance on a cash basis rose by 8.4%.
Summary of 2025 Our operating results were strong in 2025, highlighted by a 32.2% average increase in cash rental rates on new and renewal commenced leases, tenant retention of 71.0% and year-end in-service occupancy of 94.4%, demonstrating healthy demand.
Our success depends largely upon our ability to lease space and to recover the operating costs associated with those leases from our tenants.
Our ability to grow SS NOI is largely dependent on our success in leasing space and recovering property operating costs from tenants under existing lease agreements.
Removed
In 2024, we completed the following significant real estate activities: • We executed 13 leases at development properties with the following characteristics: Metropolitan Area Number of Properties GLA Leased % of Building Leased as of 12/31/24 Central/Eastern Pennsylvania 2 708,486 100% Chicago 1 119,840 73% Denver 1 100,588 50% Houston 1 212,280 50% Nashville 2 1,041,740 100% Northern California 1 1,015,791 100% Seattle 1 64,341 100% South Florida 1 46,257 34% Southern California 2 543,945 100% Total 12 3,853,268 Additionally, within our Joint Venture, we fully leased an industrial building totaling approximately 0.4 million square feet of GLA to two tenants and executed a lease, which is expected to commence in the first quarter of 2025, for 48% of an industrial building totaling approximately 1.0 million square feet of GLA. • We acquired five industrial properties totaling approximately 0.3 million square feet of GLA located in our Houston and Southern California markets for an aggregate purchase price of $44.8 million, excluding transaction costs.
Added
During 2025, we completed several significant real estate transactions: • We acquired three industrial properties located in our Phoenix market, totaling approximately 1.8 million square feet of GLA, from our Joint Venture for an aggregate price of $245.3 million, excluding transaction costs.
Removed
These properties were 100% leased at December 31, 2024. • We acquired approximately 81.4 acres of land for development located in our South Florida and Southern California markets for an aggregate purchase price of $25.9 million, excluding transaction costs. • We placed in-service seven industrial properties totaling approximately 2.8 million square feet of GLA located in our Central/Eastern Pennsylvania, Central Florida, Northern California and Southern California markets at an estimated total cost of $392.0 million.
Added
The purchase price is net of our economic share of gain on sale and incentive fees we earned on the sale as well as other deferred fees.
Removed
These properties were 96% leased at December 31, 2024. • We commenced speculative development of seven industrial buildings totaling approximately 1.9 million square feet of GLA in our Central/Eastern Pennsylvania, Houston, Nashville and South Florida markets.
Added
We also acquired a 0.1 million square foot industrial property in our Baltimore/D.C. market for a purchase price of $31.4 million, excluding transaction costs. • We acquired one income-producing land parcel in our Northern California market for a purchase price of $10.6 million, excluding transaction costs and approximately 61.4 acres of land for development in our Philadelphia market for a purchase price of $15.7 million, excluding transaction costs. • We sold seven industrial properties totaling approximately 0.3 million square feet of GLA, along with a land parcel, for gross proceeds of $42.3 million.
Removed
These properties were 40% pre-leased at December 31, 2024. • We sold 22 industrial properties totaling approximately 1.2 million square feet of GLA for gross proceeds of $162.8 million.
Added
We also completed the following financing activities during the year ended December 31, 2025: • We declared an annual cash dividend of $1.78 per common share or Unit, an increase of 20.3% from 2024. • In May, Fitch Ratings upgraded our long-term issuer default rating and underlying unsecured investments to BBB+ from BBB. • In May, we issued $450.0 million of senior notes due January 2031, bearing a coupon rate of 5.25%. • We exercised our first one-year extension option related to our $300.0 million term loan, extending the maturity date to August 2026 and amended our $200.0 million term loan to, among other things, extend the maturity to March 2028, with two optional one-year extensions. • We entered into forward-starting swaps with an aggregate notional value of $350.0 million to fix SOFR on our unsecured term loans, replacing expiring swaps and extending hedge coverage through the maturity dates of our unsecured term loans. • We amended our Unsecured Credit Facility to, among other changes, increase the borrowing capacity by $100.0 million to $850.0 million, eliminate the 10 basis point SOFR adjustment and extend the maturity date to March 2029, with two optional six-month extensions. • At December 31, 2025, we had $664.9 million of available borrowing capacity under our Unsecured Credit Facility and held $72.7 million in cash and cash equivalents, excluding our Joint Venture partner's 6% share that we consolidate and report in our financial statements. 29 Results of Operations Comparison of Year Ended December 31, 2025 to Year Ended December 31, 2024 The tables below summarize our revenues, property expenses and depreciation and other amortization by various categories for the years ended December 31, 2025 and 2024.
Removed
We completed the following financing activities during the year ended December 31, 2024: • We declared an annual cash dividend of $1.48 per common share or Unit, an increase of 15.6% from 2023. • At December 31, 2024, we had $467.5 million available for additional borrowings under our Unsecured Credit Facility and cash and cash equivalents and restricted cash was $51.2 million, after excluding our Joint Venture partner's 6% share that we consolidate and report in our financial statements. 29 Results of Operations Comparison of Year Ended December 31, 2024 to Year Ended December 31, 2023 Our net income was $296.0 million and $285.8 million for the years ended December 31, 2024 and 2023, respectively.
Added
During the year ended December 31, 2025, one industrial property, totaling approximately 0.1 million square feet of GLA, was taken out of service with the intent for future redevelopment. As a result of taking this industrial property out of service, the results of operations associated with this property were reclassified from the same store property classification to the other classification.
Removed
Properties that are at least 75% occupied at acquisition are placed in service, unless we anticipate the tenant move-outs within two years of ownership would drop occupancy below 75%. Properties that are less than 75% occupied at the date of acquisition are placed in service as they reach the earlier of 90% occupancy or one year subsequent to acquisition.
Added
Our future financial condition and results of operations, including rental revenues, may be impacted by the future acquisition, (re)development and sale of properties. Our future revenues and expenses may vary materially from historical rates. Our net income was $264.1 million and $296.0 million for the years ended December 31, 2025 and 2024, respectively.
Removed
Acquired properties with occupancy greater than 75% at acquisition, but with tenants that we anticipate will move out within two years of ownership, will be placed in service upon the earlier of reaching 90% occupancy or twelve months after move out.
Added
Property expenses from (re)developments increased $3.1 million primarily due to the substantial completion of developments.
Removed
Our future revenues and expenses may vary materially from historical rates.
Added
Depreciation from corporate furniture, fixtures and equipment and other decreased $1.6 million due to certain improvements on land parcels, for which our ultimate intent is to redevelop or develop, becoming fully depreciated.
Removed
General and administrative expense increased by $3.8 million, or 10.3%, primarily driven by higher equity compensation expense which is primarily due to the accelerated recognition of expense for certain tenured employees who are, or will soon become, retirement eligible prior to the standard vesting schedule.

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