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Land & Buildings Investment Management has urged First Industrial's board to take swift actions to maximize shareholder value, recommending an asset sale program of USD 500 million to USD 1 billion with proceeds returned to investors. The firm has also nominated its founder and CIO for the board, proposed exploring strategic alternatives if market discounts persist over six months, and called for a board refresh. This intervention highlights activist investor influence in driving stronger governance and tangible strategies in the industrial real estate sector, particularly to reduce trading discounts and unlock shareholder value.
Land & Buildings Investment Management has called on the board of First Industrial to take immediate measures aimed at enhancing value for all shareholders. The firm has recommended that the company launch an asset disposal program valued between USD 500 million and USD 1 billion, with the proceeds returned directly to shareholders.
In addition, Land & Buildings disclosed that its founder and Chief Investment Officer has been nominated as a candidate for election to First Industrial's board at the upcoming annual general meeting. The investment firm also urged the board to consider a formal exploration of strategic alternatives if the company's current market discount does not reduce within the next six months.
Furthermore, Land & Buildings emphasized the need for an immediate refresh of the board, signaling that new perspectives could help drive stronger decision-making and improve shareholder returns. The move reflects ongoing pressure from investors seeking more active governance and tangible strategies to unlock value in publicly traded industrial real estate assets.
First Industrial, which manages and develops industrial properties across the U.S., has previously faced scrutiny for trading at a discount compared with its peers. Land & Buildings intervention underscores the increasing influence of activist investors in pushing boards toward faster action on corporate strategy and capital allocation.
Source Reuters
5th Jun, 2025
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