First Industrial (FR): Land & Buildings Presses Board on Mispriced Portfolio, Urges Steps to Unlock 30% NAV Upside

Land & Buildings argues that First Industrial (FR) is a high-quality industrial warehouse REIT trading at an unjustified discount despite a decade-long portfolio upgrade that now matches peers like Prologis and EastGroup. The presentation stresses that FR has rebuilt nearly 40% of its assets, disposed of older properties, and operates in top U.S. logistics markets, yet still trades at a ~7% implied cap rate versus peers in the mid-5% range—creating an estimated 30% upside to NAV. L&B contends that FR should close this gap by selling assets, returning capital, improving communication to correct legacy misperceptions, and considering strategic alternatives if the discount persists. Demand tailwinds—recovering leasing, collapsing new construction, and sustained e-commerce growth—support strong fundamentals. With a low-leverage balance sheet, meaningful development lease-up potential, and a portfolio that would attract buyers like Prologis or Blackstone, L&B positions FR as an underappreciated REIT needing clearer strategic action to realize its value.