First Capital Real Estate Investment Trust (FCR.UN) investor relations material

Executive summary

• Achieved record 97.2% occupancy and strong leasing activity, with renewal rent increases averaging 16.2% and robust new leasing spreads.

• Operating FFO per unit grew 6.2% year-over-year to $0.34, with net income attributable to unitholders rising to $63.5 million from $16.9 million.

• Portfolio is concentrated in high-quality, grocery-anchored shopping centres in major Canadian urban markets, supporting stability and growth.

• Strategic asset sales and acquisitions aligned with capital allocation priorities, including $74.4 million in dispositions and a $22.2 million Toronto acquisition.

• Progressing on a three-year strategic plan focused on stability, growth, and leverage reduction.

Financial highlights

• Q2 2025 Operating FFO was $73M–$73.5M, up 6% year-over-year; FFO per unit rose to $0.33–$0.34.

• Same property NOI grew 6.2% year-over-year, reaching $111M, with net operating income for Q2 at $115.9M.

• Net income per diluted unit was $0.30 for Q2 2025, up from $0.08 in Q2 2024.

• Net asset value per unit at June 30 was $22.20, up from $22.05 at year-end 2024.

• AFFO and ACFO payout ratios remained in the mid-80% range.

Outlook and guidance

• 2025 same property NOI growth expected at 5%, up from prior 4% guidance, with continued above-average market rent growth anticipated.

• Management targets at least 3% annual OFFO per unit growth and net debt to Adjusted EBITDA in the low-8x range by year-end 2026.

• Projected cumulative property dispositions of $750M and acquisitions of $100–$150M, focusing on core grocery-anchored assets.

• Ongoing investment of $500M in development/redevelopment, with $300M in completions expected.

• Economic outlook remains uncertain due to trade policy, inflation, and interest rate volatility, but essential retail focus supports resilience.