In a recent filing with the Securities and Exchange Commission, First Industrial Realty (NYSE:FR) Trust, Inc., and its operating partnership First Industrial L.P. announced the signing of a new employment agreement with President and Chief Executive Officer Peter E. Baccile, effective January 1, 2025. This contract will succeed Baccile's current agreement, which is set to expire on December 31, 2024.
The new agreement, which spans from January 1, 2025, through December 31, 2029, sets Baccile's annual base salary at $935,000. Additionally, it includes a target annual bonus of 150% of the base salary and a target annual long-term incentive opportunity of $4,440,000. This incentive is divided into 35% time-based awards and 65% performance-based awards, subject to the Compensation Committee's discretion.
In the event of termination without cause or for a good reason, Baccile would receive severance payments up to three times his annual base salary and average annual bonus, contingent on the timing relative to a change in control of the company. He would also be eligible for a prorated annual bonus for the year of termination based on actual performance, continued vesting of unvested equity awards, and continued healthcare benefits at active employee rates.
Should Baccile's employment end due to death, disability, retirement, or at the expiration of the employment term, he would be entitled to similar benefits, including a prorated annual bonus and health care benefits. Receipt of these benefits, except in the case of death or disability, would require compliance with certain restrictive covenants, including confidentiality and non-competition clauses.
In other recent news, First Industrial Realty Trust has secured a new employment agreement with CEO Peter E. Baccile, effective from January 1, 2025. The contract includes an annual base salary of $935,000, potential bonuses, and long-term incentives. The company has also reported robust Q3 results, with NAREIT funds from operations increasing to $0.68 per share, up from $0.62 in the same period the previous year. In light of these results, the company has raised its 2024 guidance range for NAREIT FFO to $2.61 to $2.65 per share.
In addition to these developments, First Industrial Realty Trust has announced significant leasing achievements, including a 150% cash rental rate increase on a major lease renewal in Southern California and a 51% increase in cash rental rates across 2024 expirations. These recent developments highlight the company's strategic moves and successful implementation of its capital recycling program.
InvestingPro Insights
First Industrial Realty Trust's commitment to retaining CEO Peter E. Baccile with a new five-year contract aligns with the company's strong financial performance and shareholder value creation. According to InvestingPro data, the company boasts a market capitalization of $6.94 billion and has demonstrated solid revenue growth of 8.51% over the last twelve months as of Q3 2024. This growth is complemented by a robust operating income margin of 40.76% for the same period, indicating efficient management and operational effectiveness.
InvestingPro Tips highlight that First Industrial Realty Trust has raised its dividend for 12 consecutive years, reflecting a commitment to shareholder returns that aligns with Baccile's leadership. The company's dividend yield stands at 2.82%, with a notable dividend growth of 15.62% in the last twelve months. This consistent dividend increase, coupled with the stock's 20.67% total return over the past year, suggests that the board's confidence in Baccile's leadership is well-founded.
The company's P/E ratio of 40.03 (adjusted for the last twelve months) indicates that investors are willing to pay a premium for the stock, possibly due to its growth prospects and dividend reliability. For investors seeking more insights, InvestingPro offers additional tips and analysis to further evaluate First Industrial Realty Trust's investment potential.
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