First Capital Real Estate Investment Trust (FCR.UN) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with robust leasing activity, higher occupancy at 96.5%, and rising rents, supporting objectives of FFO, NAV, and distribution growth per unit.

• Owns and operates grocery-anchored, open-air centres in top Canadian neighbourhoods, with $9.2B in total assets and 22.2M SF gross leasable area as of Q3 2024.

• Focuses on FFO, NAV, and distribution per unit growth, leveraging a diversified tenant mix and high population density locations.

• Recognized for ESG leadership, with multiple awards, top GRESB rankings, and a validated 2030 GHG reduction target.

• Net income attributable to unitholders was $81.1 million, a significant turnaround from a $327.5 million loss in Q3 2023.

Financial highlights

• Q3 2024 operating FFO was $76.9 million ($0.36 per unit), up $8 million year-over-year; adjusted OFFO per unit was $0.31, up from $0.30 in Q3 2023.

• Same property NOI grew 3.7% year-over-year in Q3, driven by higher base rents, occupancy, and recoveries.

• Net asset value per unit at September 30 was $21.92, up 3% year-over-year.

• Liquidity at quarter-end was approximately $0.8 billion, with $698 million undrawn credit and $67 million cash.

• Occupancy reached 96.5%, up 0.6% from Q3 2023.

Outlook and guidance

• Full-year 2024 same property NOI growth expected to meet or exceed 3%, with higher internal growth anticipated for 2025.

• Three-year plan targets >3% CAGR for OFFO and same property NOI; current performance is ahead of plan.

• Management remains focused on executing its three-year Strategic Roadmap: Discipline | Stability | Growth.

• Decarbonization plan and ESG initiatives to support long-term sustainability and value creation.

• No expected material impact from a slowdown in population growth; leasing pipeline remains robust.