Shareholder Support Solidifies Leadership at First Industrial Amid Activist Pressure

First Industrial Realty Trust shareholders overwhelmingly reelect incumbent board members, rejecting Jonathan Litt's activist push for leadership changes.

By: AXL Media

Published: May 2, 2026, 6:55 AM EDT

Source: Bisnow

Governance Standoff and the Defeat of L&B’s Campaign

The reelection of Peter Baccile, Teresa Bryce Bazemore, Matthew Dominski, Patrick Hackett, Denise Olsen, and Marcus Smith concludes a period of intense public friction between First Industrial and Land & Buildings. Jonathan Litt had specifically targeted Dominski and Hackett, the board’s longest-tenured members with 16 years of service each, arguing that fresh perspectives were necessary to close a persistent valuation gap. Despite L&B’s claim that First Industrial’s stock was undervalued by approximately 30% relative to its asset value, the vast majority of shareholders chose to maintain the status quo, effectively endorsing the current governance structure.

Strategic Transformation and Market Performance

The board’s victory is rooted in a multiyear effort to high-grade First Industrial’s portfolio and fortify its balance sheet. In a statement following the vote, the board emphasized its commitment to a "clear, consistent, value-driven strategy" that has yielded competitive returns. While Litt argued that the company’s stock discount was a "governance problem" rather than a real estate issue, the REIT’s performance metrics tell a story of resilience. First Industrial’s stock has risen 28% over the past year, and while it slightly trails sector giant Prologis (up 38%), it has outperformed other peers like EastGroup (up 22%) in the same timeframe.

The Role of New Leadership and Defensive Maneuvers

To address concerns regarding board refreshment, First Industrial previously announced that Frank Schmitz will join the board effective June 1. While the company presented this as a proactive step in its evolution, Litt dismissed the appointment as a "defensive maneuver" intended to simulate change without relinquishing control. The activist investor, who holds a stake of less than 1% in the company, had previously withdrawn his own nomination to the board in March, opting instead to pressure the REIT from an external position. This tactical shift, however, failed to sway the broader institutional investor base.