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

Executive summary

• Portfolio value reached $8.8B at June 30, 2026, with 135 neighbourhoods and 97.1% occupancy, reflecting stability in core grocery-anchored assets and continued demand for necessity-based retail space.

• Net income attributable to unitholders was $24.2M ($0.11/unit) for Q2 2026, down year-over-year due to a $71.4M impairment on 138 Yorkville and $36.3M credit losses, partially offset by $120M in fair value gains.

• Operating FFO per unit rose 2.3% year-over-year to $0.35, driven by higher NOI and interest income, including $3.4M from condo sales.

• The REIT is being acquired by KingSett Capital and Choice Properties REIT in a $9.4B transaction, with unitholders to receive $19.24 in cash and 0.3186 Choice Properties REIT units per FCR unit; closing expected in Q4 2026.

Financial highlights

• Q2 2026 revenues were $190.7M, up 2.4% year-over-year; NOI was $118.1M, up 1.9%.

• FFO for Q2 2026 was $59.5M ($0.28/unit), down 19% year-over-year, mainly due to $14.8M in privatization-related legal/advisory fees.

• OFFO for Q2 2026 was $74.7M ($0.35/unit), up 2.7% year-over-year, driven by higher NOI and interest income.

• AFFO for Q2 2026 was $38.6M ($0.18/unit), down 31.6% year-over-year, reflecting higher capital expenditures and transaction costs.

• ACFO for Q2 2026 was $54.7M, with a rolling four-quarter payout ratio of 88.2%.

• NAV per diluted unit increased to $22.81 at June 30, 2026, from $22.57 at year-end 2025.

Outlook and guidance

• Portfolio occupancy remains at the high end of historical range; tenant demand is strong, especially for necessity-based retailers.

• Management expects continued FFO growth, distribution growth, and improved debt ratios as part of its three-year business plan.

• The closing of the acquisition may limit certain activities and impact achievement of previously stated objectives prior to transaction completion.