First Industrial CFO Scott Musil Transfers 2,603 LP Units to Spouse in Marital Settlement on July 27, 2026

Marital Dissolution Leads to CFO’s LP Unit Transfer

Scott A. Musil, CFO of First Industrial Realty Trust Inc., transferred 2,603 LP units in First Industrial L.P. to his spouse on July 27, 2026, as disclosed in a Securities and Exchange Commission filing. The transfer was part of a marital dissolution settlement and involved no monetary exchange, as indicated by the $0 transaction price in the filing. Such transfers are common in family law contexts and differ from market-driven equity transactions.

This disclosure clarifies the nature of the transaction as personal rather than commercial. As an officer, Musil remains subject to Section 16 reporting requirements under the Securities Exchange Act of 1934, and the filing reflects his updated beneficial ownership following the transfer.

Details on LP Units and Conversion Process

The transferred securities are LP units of First Industrial L.P., where First Industrial Realty Trust Inc. acts as the general partner. Per the filing, these LP units follow a conversion protocol under the company’s 2024 Stock Incentive Plan. Each vested LP unit with allocated rights converts automatically into a common unit of limited partnership interest on a one-for-one basis.

Additionally, these common units can be converted into First Industrial Realty Trust common stock, also on a one-for-one basis. This dual conversion framework is typical of real estate investment trusts (REITs), combining partnership structures with traditional equity instruments. The filing does not specify the vesting status or timing for the transferred units.

Musil’s Retained Beneficial Ownership

After the transfer, Musil retains direct beneficial ownership of 89,995 LP units in First Industrial L.P., indicating that the 2,603-unit transfer represents a partial divestiture. This direct ownership means Musil holds immediate beneficial rights without intermediaries or custodial arrangements, maintaining his Section 16 reporting obligations and insider trading restrictions.

The size of Musil’s remaining stake suggests ongoing alignment with First Industrial Realty Trust’s long-term performance.

End of Custodial Arrangement for Minor Child

The filing also reports termination of a custodial arrangement under the Uniform Transfers to Minors Act (UTMA) for Musil’s child. Previously, Musil had indirect beneficial ownership of 2,175 common shares held as custodian. On July 27, 2026, this custodianship ended as the child reached the age of majority.

Upon reaching majority, UTMA custodial arrangements terminate automatically, and the custodian’s beneficial ownership interest ceases. Musil disclaimed any pecuniary interest in these shares following termination. This routine process does not indicate a voluntary sale or transfer by Musil; the shares now belong to the child or are managed according to applicable state laws.

Executive Role and Regulatory Reporting

As CFO, Musil is subject to enhanced regulatory oversight under federal securities laws. Officers must file Form 4 disclosures for any equity acquisitions or dispositions, including those arising from personal circumstances such as marital settlements. This ensures transparency of insider holdings and transactions.

The filing was submitted by Jennifer Matthews Rice, Musil’s attorney-in-fact, dated July 27, 2026. Delegation of filing authority to legal counsel is common and helps ensure compliance. The attestation requirement safeguards against misstatements or omissions, which are federal criminal offenses.

Transaction and Filing Timing

The transaction and SEC filing both occurred on July 27, 2026, demonstrating prompt disclosure. Officers must file Form 4 within two business days of a reportable transaction. The same-day filing or filing within the regulatory window reflects standard compliance practices monitored by the SEC and stock exchanges.

Marital Settlement Transfers and Insider Trading Rules

Transfers of securities due to divorce or marital dissolution are typically exempt from insider trading restrictions if conducted under court orders or formal settlement agreements. The filing’s description of the transfer as part of a marital dissolution settlement confirms its legal context.

These exemptions acknowledge that parties may have limited control over timing and structure of such transfers, differentiating them from voluntary market trades. Nonetheless, all ownership changes remain subject to disclosure requirements, ensuring transparency of insider holdings.

Executive Equity Compensation and Ownership Structure

Musil’s LP units and their conversion rights reflect First Industrial Realty Trust’s executive compensation strategy under the 2024 Stock Incentive Plan. Using LP units aligns executive incentives with partnership performance while leveraging REIT partnership structures alongside traditional equity.

Executive equity holdings align management interests with shareholder returns, expose officers to market risks, and provide retention incentives. Musil’s nearly 90,000 LP units retained after the transfer signify a meaningful equity stake and highlight the company’s commitment to equity-based compensation for its financial leadership.

Investor Insights and Shareholder Impact

Insider ownership changes are closely watched by investors and analysts as indicators of management confidence or liquidity needs. However, transfers resulting from marital settlements should be interpreted differently from discretionary market transactions.

This forced division of marital property limits conclusions about Musil’s views on company prospects. His substantial retained ownership may reassure investors of continued alignment with shareholder interests despite the reduced position.