First Industrial Realty Trust, Inc.

and welcome to the first Industrial Realty Trust Inc. first quarter 2025 results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Art Harmon, Senior Vice President, Investor Relations and Marketing.

Thank you, Dave. Hello, everybody, and welcome to our call. Before we discuss our first quarter of 2025 results and our updated guidance for the year, please note that our call may include forward-looking statements as defined by federal securities laws. These statements are based on management's expectations, plans, and estimates of our prospects. Today's statements may be time-sensitive and accurate only as of today's date, April 17, 2025. We assume no obligation to update our statements or the other information we provide. Actual results may differ materially from our forward-looking statements, and factors which could cause this are described in our 10-K and other SEC filings. You can find a reconciliation of non-GAAP financial measures discussed in today's call in our supplemental report and our earnings release. The supplemental report, earnings release, and our SEC filings are available at firstindustrial.com under the Investors tab. Our call will begin with remarks by Peter Basile, our President and Chief Executive Officer, and Scott Musil, our Chief Financial Officer, after which we'll open it up for your questions. Also with us today are Jojo Yap, Chief Investment Officer, Peter Schultz, Executive Vice President, Chris Schneider, Executive Vice President of Operations, and Bob Walter, Executive Vice President of Capital Markets and Asset Management. Now let me hand the call over to Peter.

Thank you, Art, and thank you all for joining us today. We're off to a solid start in 2025, advancing our leasing objectives and closing on a few attractive new investments. On the capital side, we renewed our line of credit and $200 million term loan, further pushing out their maturities. Scott will provide additional details during his remarks. Top of mind for everyone is the evolving landscape surrounding tariffs. Like all of you, we are closely monitoring the developments and their potential impact on business activity and the leasing market. We are all operating in unfamiliar territory, and whether we like it or not, we're being included in the geopolitical and economic sausage-making. We have ringside seats to what looks to be an ongoing and volatile negotiation with our international trading partners. It stands to reason that if more clarity is slow to develop, it could further impact the operating environment and decision-making on new investments and growth. At this point, it is too early to assess the specific impacts on leasing, as I'm sure there will be further developments in this area in the coming days, weeks, and months. Before getting into specifics of our performance, let me comment on the industrial market broadly. Based on CoStar data, vacancy in Tier 1 U.S. markets was 5.9% at the end of the first quarter, unchanged since year end. On the demand side, net absorption was 56 million square feet, 24 million of which was in our target markets. Nationally, new construction start volume was 75% lower than the peak of 3Q22, with just 54 million square feet breaking ground in the first quarter. In our 15 target markets, new starts were 29 million square feet, and completions were 39 million. Base under construction totals 200 million square feet, and that is 38% pre-lease. From a portfolio standpoint, our in-service occupancy at quarter end was 95.3%, in line with our expectations. Since our last earnings call, we made further progress on our 2025 rollovers. We have now taken care of 73% by square footage, and our overall cash rental rate increase for new and renewal leasing is 30%. If you exclude the large fixed-rate renewal in central PA, we previously disclosed, the cash rental rate increase is 36%. For the full year, we continue to expect overall cash rental rate growth of 30% to 40% and 35% to 45% excluding the fixed-rate renewal. Moving now to development leasing. We successfully expanded one of our tenants at our first 76 project in Denver by 99,000 square feet, bringing that 200,000 square foot building to 100% occupancy. On the new construction front, in the second quarter, we plan to break ground on a 176,000 square foot facility at our fully leased 1.2 million square foot First Park 121 in the northwest Dallas sub-market of Louisville. Vacancy rates in this submarket have ranged from 4% to 5% since year-end 2022. The building can accommodate one or multiple tenants and will feature auto and trailer parking capacity above submarket standards. Estimated investment is $23 million, with a target cash yield of approximately 8%. We also closed a 61-acre site in Philadelphia's Newcastle submarket for $16 million. The site is near our successful first state crossing project that we leased last year shortly after completion. It's located within a mile of a full I-95, I-495 interchange. In total, we can develop 830,000 square feet. In the second quarter, we will start construction of a 226,000 square foot facility that is divisible and targets the 50 to 100,000 square foot tenant segment, where vacancy is around 5% today. Total projected investment is $31 million, with a target cash yield of approximately 8%. Moving on to investments. We acquired two fully leased developments from our joint venture in Phoenix, the 375,000-square-foot Building A, and the 421,000-square-foot Building B. They are 100% leased to three tenants with a weighted average lease term of approximately seven years. These highly functional buildings include 40-foot clear heights, 200-foot truck courts, multiple access points, and prime frontage on Loop 303 in the Southwest Valley submarkets. Our basis in the buildings is $120 million, adjusted for our share of JV profit, with a cash yield of 6.4%, significantly exceeding market cap rates. With that, I'll turn it over to Scott.