Land & Buildings nominates founder for First Industrial board seat

Land & Buildings Investment Management announced it has nominated founder Jonathan Litt as a director candidate for First Industrial Realty Trust's (NYSE: FR) 2026 annual meeting, citing persistent underperformance and governance concerns.

The activist investor disclosed ownership of 901,875 shares of First Industrial through various entities and accounts. Land & Buildings estimates the industrial REIT's net asset value at $73 per share, representing approximately 20% upside from current trading levels.

According to performance data presented by Land & Buildings, First Industrial has underperformed its proxy compensation peer group by 17% over the trailing four-year period and 4% over three years. The firm noted that First Industrial trades at a mid-6% implied cap rate on market rents, while peers Prologis (NYSE: PLD) and EastGroup (NYSE: EGP) trade in the low 5% range.

Land & Buildings called for immediate board refreshment, stating no director has been added to First Industrial's board in five years. The firm said the board has left a vacancy unfilled for nearly a year following a director's death and plans to nominate two directors with more than 15 years of tenure.

The activist investor outlined several value-creation steps, including a $500 million to $1 billion asset disposition program with proceeds returned to shareholders, scheduling an investor day within 90 days, and authorizing exploration of strategic alternatives if valuation discounts do not narrow within six months.

Land & Buildings stated it intends to file a preliminary proxy statement with the SEC to solicit votes for its director nominee at the 2026 annual meeting. The information is based on the firm's shareholder letter.

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