Activist investor Jonathan Litt (Land & Buildings), who holds a 1% stake in First Industrial Realty Trust, is urging the company to take decisive actions—asset sales, capital returns, and a board refresh—moves he believes could boost the stock price by 30%.
Litt stresses that while he thinks highly of First Industrial’s portfolio and leadership, the company remains undervalued despite significant portfolio upgrades:
- Nearly 40% of the portfolio newly developed over the past decade
- Over 40% of legacy assets divested
- 2.3 million sq ft still available to be leased
If these steps aren’t enough to eliminate the valuation gap, Litt believes the board should consider a full strategic alternatives review, including a potential sale.
📦 Why Investors Are Watching Closely
Industrial warehouse assets remain attractive as:
- New construction starts have fallen sharply over the past two years
- E-commerce players require far more warehouse space than traditional retailers
- Institutional investors view CRE as a defensive, non-correlated asset—especially amid concerns of an AI-driven market bubble
🧭 Collaboration & Market Context
Land & Buildings plans to work closely with First Industrial’s board and management to unlock value.
First Industrial currently has a market cap of ~$7.4 billion, with shares closing at $55.93 on Wednesday.
As industrial real estate grows more strategically important, activist pressure may accelerate decisions that reshape the company’s trajectory.