Land & Buildings Investment Management issued a letter to shareholders of First Industrial Realty Trust (NYSE: FR) recommending votes against Chairman Matt Dominski and Director H. Patrick Hackett at the company's April 30 annual meeting.

The activist investor argued that First Industrial's high-quality portfolio trades at a discount to peers Prologis (NYSE: PLD) and EastGroup (NYSE: EGP) due to governance issues. Land & Buildings stated that First Industrial trades at a mid-6% implied cap rate while comparable companies trade in the low 5% range, representing approximately $2 billion in unrealized market capitalization.

Land & Buildings noted that First Industrial's total shareholder return increased from 10% to 27% between December 3, 2025 and April 6, 2026, with the majority of outperformance occurring after Land & Buildings launched its public campaign on December 4, 2025.

Since the campaign began, First Industrial announced a $250 million share repurchase authorization, a 12% dividend increase, appointment of director Frank E. Schmitz effective June 1, 2026, and scheduled property tours. Land & Buildings characterized these as reactive measures that would not have occurred without activist pressure.

The investment firm withdrew its director nomination on March 20, 2026, following First Industrial's announcement of Schmitz's appointment. Land & Buildings said it chose to focus on voting against existing directors rather than adding a new board member.

Land & Buildings criticized Dominski, 71, who has served 16 years and previously served on the board of CBL & Associates, which filed for bankruptcy. The firm also targeted Hackett, 74, who has served 16 years and chairs the Compensation and Investment Committees, noting CEO Peter Baccile received a 25% pay increase to $8.3 million in 2025.

The activist investor estimated First Industrial's net asset value at $73 per share, representing over 20% upside from current levels. Land & Buildings called for a formal strategic alternatives exploration if the valuation discount does not narrow within six months.