First Capital REIT reports strong Q1 2025 results with 5.3% NOI growth, 96.9% occupancy, and robust leasing activity

First Capital Real Estate Investment Trust, announced Tuesday financial results for the quarter ended March 31, 2025, indicating its portfolio occupancy matched an all-time high.

KEY HIGHLIGHTS FROM THE FIRST QUARTER:

• Operating FFO per unit of $0.32
• Same Property NOI growth of 5.3%, excluding bad debt expense (recovery) and lease termination fees
• Strong leasing activity, including lease renewal spreads of 13.6%
• Total portfolio occupancy of 96.9%, matching all-time high

“We are pleased to start 2025 with another quarter of strong operating and financial results, underpinned by continued strength in leasing and execution of our capital allocation strategy” said Adam Paul, President and CEO.

“Excellent fundamentals for our high-quality grocery-anchored retail space positions us well to navigate the current environment while continuing to deliver stability and growth in cash flow.”

First Capital owns, operates and develops grocery-anchored, open-air centres in neighbourhoods with the strongest demographics in Canada.

First Capital said its three-year business plan to year-end 2026 is on-track and remains focused upon achieving two key objectives:

1. Generating annual OFFO per unit growth of at least 3% on average over the three year timeframe; and
2. Achieving a Net Debt to Adjusted EBITDA ratio that is in the low-8x range by year-end 2026;

To achieve the two key objectives stated above and updating for results to-date and the current outlook, FCR has assumed and expects the following:

• Average annual same-property NOI growth of at least 3%
• An aggregate investment of approximately $500 million into property development and redevelopment
• Development completions, including residential inventory deliveries, of approximately $300 million ($200 million formerly)
• Property dispositions totaling approximately $750 million ($1 billion formerly), on a cumulative basis with an average expected yield of less than 3%. The dispositions will continue to be focused on a mix of development sites and select low-yielding income properties
• Acquisitions of $100 million to $150 million, with a focus on multi-tenant, core grocery-anchored shopping centres as well as small, but strategic tuck-ins that are expected to be important to long-term value creation

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