Activist Investor Land & Buildings Calls Out First Industrial’s Governance Discount, Seeks Board Changes

Event summary

  • Land & Buildings issued a letter to First Industrial shareholders detailing governance concerns and a $15 per share valuation discount.
  • First Industrial’s CEO Peter Baccile’s compensation rose 25% in 2025 to $8.3 million despite persistent discount to NAV.
  • Land & Buildings plans to vote against re-election of Chairman Matthew Dominski and Director H. Patrick Hackett, Jr., and nominate Jonathan Litt for the board.
  • The activist investor claims First Industrial’s board lacks independence and oversight, citing Dominski’s role in CBL & Associates’ bankruptcy.
  • Land & Buildings estimates First Industrial’s shares could trade $15 higher with improved governance and oversight.

The big picture

Land & Buildings’ campaign highlights a growing trend of activist investors targeting real estate firms with governance and valuation concerns. The $15 per share discount underscores the potential for significant upside if governance improvements are made, reflecting broader industry shifts towards greater shareholder engagement and board accountability. First Industrial’s response will be a bellwether for how other industrial REITs handle activist pressure.

What we're watching

Governance Dynamics
Whether First Industrial’s board will respond to Land & Buildings’ demands for refreshment and improved oversight.
Valuation Upside
The pace at which First Industrial’s shares could rebound if governance improvements are implemented.
Activist Influence
How Land & Buildings’ campaign will affect First Industrial’s strategic decisions and shareholder returns.