FIRST INDUSTRIAL REALTY TRUST INCFR

FIRST INDUSTRIAL REALTY TRUST INC Income Taxes Disclosure

10-KFiled Feb 11, 20263 min read
Income Taxes
Our Consolidated Financial Statements include the operations of our TRSs, which are not entitled to the dividends paid deduction and are subject to federal, state and local income taxes on its taxable income. During the years ended December 31, 2025, 2024 and 2023, the Company qualified as a REIT and incurred no federal income tax expense; accordingly, the only federal income taxes included in the accompanying Consolidated Financial Statements relate to activities of our TRSs. The components of the income tax provision for the years ended December 31, 2025, 2024 and 2023 is comprised of the following: 
Year Ended December 31,
 202520242023
Current:
Federal$(2,757)$(174)$(22,424)
State(292)(5,623)(6,319)
Deferred:
Federal(10,369)(209)16,922 
State(1,864)(69)3,129 
             Total Income Tax Provision$(15,282)$(6,075)$(8,692)
Deferred income taxes represent the tax effect of the temporary differences between the book and tax basis of assets and liabilities. Deferred income tax assets and liabilities include the following as of December 31, 2025 and 2024:

Year Ended December 31,
 20252024
Real Estate Basis Difference - Investment in Joint Venture$— $490 
Other - Temporary Differences16 448 
Total Deferred Income Tax Assets$16 $938 
Deferred Income - Investment in Joint Venture$(14,360)$(3,047)
Other - Temporary Differences(337)(339)
Total Deferred Income Tax Liabilities$(14,697)$(3,386)
Total Net Deferred Income Tax Liabilities$(14,681)$(2,448)
We evaluate tax positions taken in the financial statements on a quarterly basis under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, we may recognize a tax benefit from an uncertain tax position only if it is "more-likely-than-not" that the tax position will be sustained on examination by taxing authorities. As of December 31, 2025, we do not have any unrecognized tax benefits.
We file income tax returns in the U.S. and various states. The statute of limitations for income tax returns is generally three years. As such, our tax returns that are subject to examination would be primarily from 2022 and thereafter. There were no material interest or penalties recorded for the years ended December 31, 2025, 2024 and 2023.
The amount of income taxes we paid during the year ended December 31, 2025 was as follows:
Year Ended December 31,
 2025
Federal$2,915 
State:
California1,149 
Pennsylvania392 
Texas355 
Arizona320 
Other States758 
Total Income Taxes Paid, Net of Refunds$5,889 
The amount of income taxes we paid during the years ended December 31, 2024 and 2023 was $5,299 and $27,754, respectively.
Federal Income Tax Treatment of Common Dividends
For the years ended December 31, 2025, 2024 and 2023, the dividends paid to the Company's common shareholders per common share for income tax purposes were characterized as follows:
2025As a
Percentage
of
Distributions		2024As a
Percentage
of
Distributions		2023As a
Percentage
of
Distributions
Ordinary Income (A)
$1.5772 88.61 %$0.7080 47.84 %$0.6756 52.78 %
Unrecaptured Section 1250 Capital Gain— 0.00 %0.2948 19.92 %0.0536 4.19 %
Other Capital Gain (B)
— 0.00 %0.4772 32.24 %0.0956 7.47 %
Qualified Dividend0.2028 11.39 %— 0.00 %0.4552 35.56 %
$1.7800 100.00 %$1.4800 100.00 %$1.2800 100.00 %
(A) For the years ended December 31, 2025, 2024 and 2023, the Code Section 199A dividend is equal to the total ordinary income dividend.
(B) For the years ended December 31, 2024 and 2023, Section 1061 of the Code related to Capital Gains for the One Year Amounts was 0% and 0%, respectively, and for the Three Year Amounts was 0% and 0%, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 14, 2025
2023Feb 14, 2024
2022Feb 16, 2023
2021Feb 18, 2022
2020Feb 16, 2021
2019Feb 13, 2020
2018Feb 20, 2019
2017Feb 26, 2018
2016Feb 24, 2017
2015Feb 25, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

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