First Industrial Realty Trust, Inc.

Good day and welcome to the first Industrial Realty Trust Inc. fourth 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. Please go ahead.

Thanks very much, Dave. Hello, everybody, and welcome to our call. Before we discuss our fourth quarter and full year 2025 results and our initial guidance for 2026, 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, February 5, 2026. 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 turn the call over to Peter.

Thank you, Art, and thank you all for joining us today. I'm proud of how our team performed in 2025. For the third straight year, we competed well in a volatile and evolving economy and a challenging environment for tenants investing in new growth. The only thing that is certain in this operating environment is uncertainty. We're well prepared for more of the same. We're also well positioned with a resilient portfolio and significant growth opportunity ahead. From an operational standpoint, our team remained focused and generated strong cash rental rate, cash same-store NOI, and FFO growth, and continued to sign new development leases. We also executed two recent term loan refinancings, which Scott will address in his remarks. The overall leasing market showed significant activity in the fourth quarter with a record 226 million square feet of leasing according to CBRE, which was 22% higher than a year ago. Total leasing was 941 million square feet for the year, making it the second highest year on record second only to 2021, and more than 12% higher than 2024. 3PLs continue to be very active, representing 36% of total leasing, with retail and manufacturing occupiers rounding out the top three. According to CBRE, vacancy in the fourth quarter was 6.7%, reflecting net absorption of 58 million square feet, with completions at 78 million. For the year, net absorption was 149 million square feet and completions were 282 million. Construction starts nationally in the fourth quarter were 45 million square feet, in line with the third quarter and still well below 2022's peak level. Pre-leasing on the under-construction pipeline continues to be approximately 40%. Within our own portfolio and development projects, touring activity continues to improve. Since our last call, we signed 231,000 square feet of leases in two of our developments. These leasing wins include the other half of our 425,000 square foot Houston development and 19,000 square feet at our first loop project in Orlando. For 2025, our cash rental rate increase on new and renewal leasing was 32%. If you exclude the large fixed-rate renewal in central PA we previously discussed, the cash rental rate increase was 37%, and the straight-line increase was 59%. Our annual escalators for 2025 commencements, excluding the fixed-rate renewal, were 3.7%, which has remained steady since 2023. when we started to implement higher escalators in our leases. For the whole portfolio for 2026, they are 3.4%. Regarding our 2026 rollovers, we're off to an excellent start, having taken care of 45% by square footage and our overall cash rental rate increase for new and renewal leasing is 35%. For the full year, we expect cash rental rate growth to range from 30% to 40%. Moving now to investments. During the quarter, we acquired the 968,000 square foot 100% leased building from our Camelback 303 Phoenix joint venture for $125 million. The purchase price is net of $18 million, which is our share of the venture's gain on sale, promote, and fees. The venture also sold the last remaining 71 acres it owned to a data center operator. With these transactions, we successfully concluded the joint venture, which achieved an overall IRR of 90%. We thank Diamond Realty for being an outstanding partner on this and the prior PV303 venture, through which we created significant value for them and our shareholders. And ultimately, we're able to add some high-quality properties to our portfolio. We also acquired a newly constructed 117,000-square-foot facility in the Baltimore market in the infill eastern suburbs of Washington, D.C., near Andrews Air Force Base for $31 million. The property was two-thirds leased at acquisition. The combined stabilized cash yield on the net purchase price of the Phoenix building plus the DC facility is 6.3%. On the development front, we're breaking ground on two new buildings in the first quarter. At First Park Miami in Medley, we're starting a 220,000 square foot project as we continue to methodically build out that park. As a reminder, We've developed 1.4 million square feet across eight buildings in this INSA location, and we own additional land that will support another 859,000 square feet of projects. In Dallas, we're starting the 84,000-square-foot First Arlington Commerce Center III. This is the third project in our park in this highly sought-after submarket. Total investment for these two buildings is $70 million, with a combined projected cash yield of approximately 7%. Lastly, given our performance and outlook, our Board of Directors declared a first quarter dividend of 50 cents per share. This is an increase of 12.4%, which is aligned with our anticipated cash flow growth. With that, I'll hand it over to Scott.