2024-04-18 02:38:34 ET
Summary
- First Industrial Realty has underperformed in the past year due to higher interest rates and a slowdown in industrial leasing activity.
- The company reported mixed results and reduced guidance, which may put pressure on its shares.
- The weakness in leasing activity, particularly in Southern California, and uncertainties in US-China relations are impacting First Industrial Realty's performance.
- Still, its current valuation and limited long-term supply dynamics make FR stock attractive for dividend growth investors.
Shares of First Industrial Realty ( FR ) have been a significant underperformer over the past year, losing 5% of their value, as higher rates have weighed on real estate valuations and industrial leasing activity has slowed. After the bell on Wednesday, FR reported mixed results and reduced guidance, which could pressure shares. Since rating shares a buy in January , FR has lost 5% while the S&P has gained 7%, a disappointing level of underperformance. Given these results, we need to re-examine FR and determine if the buy thesis is broken....
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First Industrial: Shares Attractive Despite Softer Q1 Results