Core Viewpoint - Valeo has announced a new green bond issue amounting to 500 million euros, maturing in March 2032, aimed at financing low-carbon mobility projects, particularly vehicle electrification [2][3]. Group 1: Green Bond Details - The green bond issue was oversubscribed, with a coupon rate of 4.625% and a maturity period of 6.5 years [2]. - The transaction will finance projects linked to Valeo's portfolio of technologies that contribute to low-carbon mobility [3]. - Valeo plans to exercise a call option on its outstanding €600 million bonds (1.625%) maturing on March 18, 2026, with an expected call date of December 18, 2025 [3]. Group 2: Sustainability Goals - Valeo aims to achieve Net Zero by 2050, covering all operating activities and supply chains globally, with specific objectives outlined in the CAP 50 plan [5]. - The company is focused on developing technologies that promote low-carbon mobility accessible to a wide audience [5]. Group 3: Company Overview - Valeo is a technology company that partners with automakers and new mobility players, focusing on making mobility safer, smarter, and more sustainable [6]. - The company reported sales of 21.5 billion euros in 2024 and operates in 28 countries with 155 plants and 64 R&D centers [7].

Core Points - Valeo is renewing its employee share offering aimed at approximately 90,000 eligible employees across 21 countries to enhance long-term engagement with the Group's performance and development [2][3] - As of June 30, 2025, employees held 4.70% of Valeo's share capital, with one in two employees owning shares directly or indirectly [2] Offering Details - The share subscription offering includes a maximum of 1,200,000 Valeo shares with a nominal value of EUR 1 per share, which will be fully fungible with existing shares upon issuance [5] - The subscription price is set at EUR 8.40, reflecting a 20% discount based on the average opening prices over 20 trading days prior to September 15, 2025 [11] - The subscription period runs from September 16, 2025, to October 6, 2025 [12] Employee Eligibility and Benefits - The offering is available to employees with at least three months of seniority and includes former employees in retirement or pre-retirement who have retained assets in the group savings plan [6][7] - Employees subscribing through the group savings plan will benefit from a matching contribution from the employer, while those outside France will receive conditional shares for free [9] Capital Increase and Listing - The capital increase and delivery of shares are expected to occur on November 13, 2025, with an application for listing on Euronext Paris to be filed shortly thereafter [14]

Company Overview - Valeo is a technology company that partners with automakers and new mobility players, focusing on making mobility cleaner, safer, and smarter [2] - The company has technological and industrial leadership in four key areas: electrification, driving assistance systems, interior experience reinvention, and lighting, which are essential for the transformation of mobility [2] Financial Performance - Valeo reported sales of €21.5 billion in 2024 [3] - As of December 31, 2024, the company employed 106,100 people across 28 countries, operating 155 plants and 46 research and development centers, along with 18 distribution platforms [3] Share Capital and Voting Rights - As of August 30, 2025, Valeo's issued capital was €244,633,504, with a total of 244,633,504 shares and 275,030,813 theoretical voting rights [1] - The total number of exercisable voting rights, excluding shares deprived of voting rights, was 274,911,080 [1][2]

Company Overview - Valeo is a technology company that partners with automakers and new mobility players, focusing on making mobility cleaner, safer, and smarter [2] - The company has a strong technological and industrial leadership in four key areas: electrification, driving assistance systems, interior experience reinvention, and lighting [2] Financial Performance - Valeo reported sales of €21.5 billion in 2024 [3] - As of December 31, 2024, the company employed 106,100 people across 28 countries, operating 155 plants and 46 research and development centers [3] Share Capital and Voting Rights - As of July 31, 2025, Valeo's issued capital was €244,633,504, with a total of 244,633,504 shares [1] - The total number of theoretical voting rights was 275,030,593, while the total number of exercisable voting rights was 274,920,605 [1][2]

Core Insights - Valeo demonstrated improved profitability in the first half of 2025, achieving an operating margin of 4.5% and free cash flow of 252 million euros, aligning with its profitability and cash generation objectives for the year [1][34][61] - The company reported a 30% increase in order intake, reaching 11.8 billion euros, reflecting strong demand and effective price management [5][54] - Cost-cutting measures contributed significantly to financial performance, with reductions in administrative costs by 5%, investments by 23%, and gross R&D expenditure by 11% [3][36] Financial Performance - Sales totaled 10,660 million euros, a decrease of 4.1% compared to the first half of 2024, with a gross margin of 19.6%, up 1.1 percentage points year-on-year [6][35] - EBITDA reached 1,472 million euros, representing 13.8% of sales, an increase of 1.4 percentage points from the previous year [39][35] - Net attributable income was 104 million euros, down 26% from 141 million euros in the prior year, reflecting challenges in certain segments [45][35] Operational Highlights - The company experienced a significant shift in its customer mix, with Chinese automakers accounting for a growing share of order intake, which accelerated to nearly three times Valeo's sales [4][23] - Valeo was recognized as a Supplier of the Year by General Motors and Volkswagen, highlighting its operational performance and innovation in the automotive sector [5][59][60] - The POWER Division faced challenges but showed solid performance in thermal systems and transmission systems, particularly in China [28][30] R&D and Cost Management - Gross R&D expenditure decreased by 11% to 1.25 billion euros, with R&D recognized in the income statement at 10.5% of sales, up 0.8 percentage points year-on-year [36][38] - The company implemented a restructuring plan that optimized its industrial and R&D footprint, contributing to improved margins across divisions [31][32] Market Position and Future Outlook - Valeo adjusted its sales objective for 2025 to around 20.5 billion euros, primarily due to adverse currency effects, while maintaining its margin and free cash flow targets [61][62] - The automotive production environment remains challenging, with Valeo's original equipment sales underperforming compared to overall automotive production growth [20][22]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Group 1: Investment Strategy - A solid base of classic dividend growth stocks can be complemented with other asset types to create a balanced portfolio [1]. - The hybrid system developed allows for capturing total returns that align with the performance of the S&P index [1]. Group 2: Investment Focus - The focus is on high-quality dividend stocks and assets that provide potential for long-term growth and significant income generation [1].

Group 1 - The article discusses the unusual market conditions in the current year, highlighting a mix of various factors impacting the investment landscape [1] - There is a focus on the importance of in-depth research on various income alternatives, including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 2 - The article emphasizes the significance of understanding market-moving developments, suggesting that this year has seen an increase in such articles [1]

[PART I: FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements and accompanying notes for First Industrial Realty Trust, Inc. and First Industrial, L.P. for the period ended June 30, 2025 [First Industrial Realty Trust, Inc. Financial Statements](index=6&type=section&id=First%20Industrial%20Realty%20Trust%2C%20Inc.%20Financial%20Statements) This section presents the consolidated balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows for First Industrial Realty Trust, Inc. for the periods ended June 30, 2025, and 2024 First Industrial Realty Trust, Inc. - Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Investment in Real Estate | $4,951,399 | $4,760,684 | | Total Assets | $5,452,115 | $5,261,426 | | Total Liabilities | $2,717,722 | $2,515,398 | | Total Equity | $2,734,393 | $2,746,028 | First Industrial Realty Trust, Inc. - Operations Highlights (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $357,237 | $326,408 | | Net Income | $109,763 | $123,374 | | Diluted EPS | $0.78 | $0.90 | First Industrial Realty Trust, Inc. - Cash Flow Highlights (in thousands) | Cash Flow | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $214,620 | $170,234 | | Net Cash used in Investing Activities | ($290,048) | ($71,879) | | Net Cash from (used in) Financing Activities | $58,695 | ($95,651) | [First Industrial, L.P. Financial Statements](index=12&type=section&id=First%20Industrial%2C%20L.P.%20Financial%20Statements) This section presents the consolidated balance sheets, statements of operations, comprehensive income, changes in partners' capital, and cash flows for First Industrial, L.P. for the periods ended June 30, 2025, and 2024 First Industrial, L.P. - Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Investment in Real Estate | $4,951,399 | $4,760,684 | | Total Assets | $5,461,303 | $5,270,655 | | Total Liabilities | $2,717,722 | $2,515,398 | | Total Partners' Capital | $2,743,581 | $2,755,257 | First Industrial, L.P. - Operations Highlights (in thousands, except per unit data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $357,237 | $326,408 | | Net Income | $109,763 | $123,374 | | Diluted EPU | $0.78 | $0.91 | [Notes to the Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures supporting the consolidated financial statements, covering organization, accounting policies, real estate investments, indebtedness, and derivative instruments - As of June 30, 2025, the company owned **415 industrial properties** totaling approximately **68.2 million square feet** of gross leasable area (GLA) across 19 states[56](index=56&type=chunk) - During the first six months of 2025, the company acquired **two industrial properties** and **one land parcel** for a total purchase price of **$135.7 million**[64](index=64&type=chunk) - In the first six months of 2025, **three industrial properties** were sold for gross proceeds of **$13.7 million**, resulting in a gain of **$8.0 million**[65](index=65&type=chunk) - In May 2025, the company issued **$450 million of 5.25% senior unsecured notes** due 2031, with an effective interest rate of **5.41%**[71](index=71&type=chunk) - In March 2025, the company amended its revolving credit facility, increasing its capacity by **$100 million to $850 million** and extending the maturity to March 2029[73](index=73&type=chunk) - As of June 30, 2025, the company had **nine development projects** under construction, with an estimated total investment of **$285.2 million**, of which approximately **$146.6 million** remains to be funded[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, including business objectives, performance summary, operating results, leasing activity, liquidity, and non-GAAP reconciliations [Management's Overview](index=34&type=section&id=Management%27s%20Overview) This section outlines the company's business objectives and growth strategies, emphasizing portfolio enhancement, decentralized operations, disciplined financing, and strong operating results for H1 2025 - The company's strategy focuses on internal and external growth, with a portfolio concentration in **15 key logistics markets**, primarily in coastal areas[119](index=119&type=chunk) - Highlights for the first six months of 2025 include **94.2% quarter-end occupancy**, a **9.4% increase in cash-basis same store NOI**, and a **34% average increase in cash rental rates** on new and renewal leases[122](index=122&type=chunk) - Key financing activities in H1 2025 included a credit rating upgrade by Fitch to **BBB+**, the issuance of **$450.0 million in senior notes**, and an increase in the unsecured credit facility to **$850.0 million**[124](index=124&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) This section provides a comparative analysis of operating results for the six months ended June 30, 2025, highlighting a **9.4% increase in total revenues** to **$357.2 million** and a decrease in net income to **$109.8 million** primarily due to lower gains on real estate sales Comparison of Revenues (Six Months Ended June 30, in thousands) | Category | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Same Store Properties | $327,619 | $308,445 | $19,174 | 6.2% | | Acquired Properties | $4,785 | $11 | $4,774 | 43,400.0% | | (Re)Developments | $18,711 | $3,669 | $15,042 | 410.0% | | **Total Revenues** | **$357,237** | **$326,408** | **$30,829** | **9.4%** | - Net income for H1 2025 was **$109.8 million**, a decrease from **$123.4 million** in H1 2024, mainly driven by a lower gain on sale of real estate, which was **$8.0 million** in 2025 compared to **$37.0 million** in 2024[132](index=132&type=chunk)[138](index=138&type=chunk) - General and administrative expenses for H1 2025 increased by **$2.9 million (13.7%)** primarily due to accelerated recognition of equity compensation expense for retirement-eligible employees[135](index=135&type=chunk) - Interest expense for H1 2025 decreased by **$0.8 million (2.0%)** due to higher capitalized interest and a lower weighted average interest rate, despite a higher average debt balance[139](index=139&type=chunk) [Leasing Activity](index=42&type=section&id=Leasing%20Activity) This section details leasing activity for the first half of 2025, with **83 leases** commenced totaling **3.9 million square feet**, achieving **59.9% straight-line rent growth** and a **6.0-year weighted average lease term** Leasing Activity Summary (Six Months Ended June 30, 2025) | Lease Type | Leases Commenced | Square Feet (in 000's) | Straight Line Rent Growth | Weighted Avg. Lease Term (Yrs) | | :--- | :--- | :--- | :--- | :--- | | New Leases | 31 | 837 | 64.7% | 5.8 | | Renewal Leases | 50 | 2,863 | 58.6% | 6.0 | | **Total / Weighted Avg.** | **83** | **3,857** | **59.9%** | **6.0** | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$34.9 million in cash** and **$823.8 million available** under its credit facility, with short-term needs met by operations and asset sales, and long-term needs by dispositions, debt, and equity issuances - As of June 30, 2025, the company had **$34.9 million in cash and cash equivalents** and **$823.8 million available** under its Unsecured Credit Facility[159](index=159&type=chunk) - The company holds investment-grade credit ratings of **BBB/Stable (S&P)**, **Baa2/Stable (Moody's)**, and **BBB+/Stable (Fitch)**[163](index=163&type=chunk) Cash Flow Activity Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $214,620 | $170,234 | | Net cash used in investing activities | ($290,048) | ($71,879) | | Net cash provided by (used in) financing activities | $58,695 | ($95,651) | - The **$154.3 million positive swing** in financing cash flow was primarily due to the issuance of **$443.8 million in senior unsecured notes** in 2025, offset by lower net borrowings on the credit facility and higher dividend payments[165](index=165&type=chunk) [Supplemental Earnings Measure](index=46&type=section&id=Supplemental%20Earnings%20Measure) This section provides reconciliations for non-GAAP financial measures, FFO and Same Store NOI, with FFO available to common stockholders increasing to **$190.1 million** and cash basis SS NOI growing by **9.4%** for the first six months of 2025 Funds From Operations (FFO) Reconciliation (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Income Available to Common Stockholders | $103,288 | $119,770 | | Adjustments (Depreciation, Gain on Sale, etc.) | $86,781 | $47,384 | | **FFO Available to Common Stockholders** | **$190,069** | **$167,154** | Same Store Net Operating Income (SS NOI) Reconciliation (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Same Store Revenues | $327,619 | $308,445 | | | Same Store Property Expenses | ($78,499) | ($76,364) | | | GAAP Same Store NOI | $249,120 | $232,081 | 7.3% | | Adjustments (Straight-line rent, etc.) | ($5,729) | ($9,634) | | | **Cash Basis SS NOI** | **$243,391** | **$222,447** | **9.4%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with **99.0% of total debt fixed-rate** as of June 30, 2025, and a hypothetical **10% SOFR increase** having a minimal **$0.6 million impact** on interest expense for H1 2025 - As of June 30, 2025, **99.0% ($2.38 billion)** of the company's total debt was fixed-rate, including the effect of interest rate swaps, an increase from **87.3%** at the end of 2024[169](index=169&type=chunk) - The company uses derivative instruments, specifically interest rate swaps with a notional value of **$925.0 million**, to hedge its exposure to variable interest rates on its unsecured term loans[169](index=169&type=chunk) - A sensitivity analysis shows that a **10% increase in the SOFR rate** would have increased interest expense by approximately **$0.6 million** for the six months ended June 30, 2025[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both First Industrial Realty Trust, Inc. and First Industrial, L.P. were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The principal executive and financial officers concluded that the disclosure controls and procedures for both the Company and the Operating Partnership were effective as of the end of the reporting period[188](index=188&type=chunk)[190](index=190&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the internal control over financial reporting for either entity[189](index=189&type=chunk)[191](index=191&type=chunk) [PART II: OTHER INFORMATION](index=50&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings - None[194](index=194&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's annual report on Form 10-K for the year ended December 31, 2024, were reported - No material changes to the risk factors disclosed in the 2024 Form 10-K were reported[195](index=195&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds during the period - None[196](index=196&type=chunk) [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[197](index=197&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section references the Exhibit Index, listing all exhibits filed with or furnished as part of the Form 10-Q report - The exhibits required by Item 6 are listed in the Exhibit Index[198](index=198&type=chunk)

Core Viewpoint - First Industrial Realty Trust reported strong fiscal Q2 2025 results, exceeding analysts' expectations in both earnings per share and revenue, indicating robust operational performance despite slight occupancy declines [1][2]. Financial Performance - Earnings per share (EPS) for Q2 2025 was $0.42, surpassing the forecast of $0.38, and revenue reached $180.2 million, exceeding the consensus estimate of $177.6 million [1][3]. - Funds from Operations (FFO) per share increased to $0.76, a 15.2% rise from Q2 2024 [3][6]. - Same-store net operating income (NOI) grew by 8.7% year-over-year, reflecting strong property performance [3][6]. Operational Highlights - The company experienced a rental rate increase of 28.0% on a cash basis and 47.1% on a straight-line basis for new and renewal leases, indicating strong tenant demand [7]. - In-service occupancy decreased to 94.2%, down from 95.3% in Q1 2025 and Q2 2024, attributed to planned move-outs and unleased newly-developed space [7]. Strategic Focus - The company specializes in logistics and industrial properties, focusing on high-demand U.S. markets with limited land supply, which supports long-term rent growth and capital appreciation [4][5]. - Recent strategies include driving internal rental growth through lease renewals and targeted development projects, alongside disciplined financial management [5]. Development and Capital Activity - Two new development projects were initiated, one in Dallas and another in Philadelphia, with total investments of $54 million targeting yields near 8% [8]. - The company issued $450 million in senior unsecured notes at 5.25%, marking its first public bond issuance since 2007, and received a credit rating upgrade to BBB+ from Fitch Ratings [9]. Dividend and Guidance - The quarterly dividend was increased by 20.3% to $0.445 per share, reflecting confidence in earnings and cash flow stability [10]. - Management reaffirmed full-year fiscal 2025 guidance, projecting GAAP net income per share between $1.53 and $1.61 and FFO per share between $2.88 and $2.96 [11].

Financial Data and Key Metrics Changes - Funds from operations (FFO) for Q2 2025 were $0.76 per fully diluted share, an increase from $0.66 per share in Q2 2024, reflecting strong performance [16] - Cash same store net operating income (NOI) growth for the quarter was 8.7%, driven by increases in rental rates and new and renewal leasing [16] - In-service occupancy at the end of the quarter was 94.2%, down 110 basis points from the previous quarter [17] Business Line Data and Key Metrics Changes - Overall cash rental rate increase for new and renewal leasing was 33%, with a 38% increase when excluding a large fixed-rate renewal in Central Pennsylvania [11] - Approximately 2,500,000 square feet of leases commenced during the quarter, with 400,000 being new leases and 2,100,000 being renewals [17] Market Data and Key Metrics Changes - Vacancy in Tier one U.S. markets was 6.3% at the end of Q2, up 30 basis points compared to the prior quarter [10] - Nationally, net absorption year-to-date totaled 16,000,000 square feet, with 5,000,000 square feet in target markets [10] - New construction start volume was 62,000,000 square feet in Q2, down from 66,000,000 in Q1 2025 and 72% lower than the peak in Q3 2022 [10] Company Strategy and Development Direction - The company remains focused on securing and serving existing and new customers to drive long-term cash flow growth [23] - The company is executing new starts in markets with good fundamentals and unmet demand [26] - The company plans to maximize value from its Camelback project and is considering various strategies for its remaining land [40] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty around tariffs continues to dampen decision-making momentum [7] - There is a positive outlook for improved confidence and investment in new growth initiatives once the tariff situation becomes clearer [23] - Management expressed that the demand side is a key issue, with tenants needing the right fit at the right time [53] Other Important Information - The company was upgraded by Fitch to BBB+ and launched a $450,000,000 public bond offering at a coupon rate of 5.25% [14] - Guidance for NAREIT FFO for the year remains at $2.92 per share at the midpoint, with a range narrowed to $2.88 to $2.96 per share [19] Q&A Session Summary Question: How attractive are incremental development starts today compared to three or six months ago? - Management indicated that more consistent development lease signings are needed to deepen new starts, with strong gross leasing activity in the first half of the year [25] Question: Any abnormal or non-recurring items in the second quarter FFO? - Management noted that higher interest expense in the second half of the year would slightly drag down FFO due to funding the development pipeline and the recent bond offering [30] Question: Can you clarify the new lease that was not in the $1,600,000 target? - Management confirmed that the new lease announced has positively impacted the guidance, and the $0.02 per share impact is now $0.00 [36] Question: What is the plan for the Camelback lease? - The plan is to maximize value, with various options being considered for the remaining land [40] Question: How are private industrial developers behaving in the current environment? - Developers are cautious, with some offering elevated concession packages due to increased tenant choices [71] Question: What is the outlook for specific markets? - Nashville is performing strongly, with good demand and little new supply, while certain submarkets in Dallas and Houston are also doing well [106][107]