First Capital Real Estate Investment Trust (FCR.UN) Q4 2023 earnings summary

Executive summary

• Grocery-anchored, open-air portfolio spans 142 neighbourhoods, with $7.3B enterprise value, 22.3M sf GLA (19.4M sf at share) and 23.7M sf of future incremental density.

• Q4 operating performance included 96.2% occupancy, positive same-property NOI growth and 13.5% average net rental rate increases on leasing activity.

Financial highlights

• Q4 FFO per unit excluding OGLE was $0.32, up 1% YoY; reported FFO per unit was $0.27, down 27.5% YoY, primarily from lower OGLE mark-to-market items.

• Q4 same-property NOI growth excluding LTF and BDE was 3.3%, primarily from higher base rents and CAM/tax recoveries.

• 2023 FFO per unit excluding OGLE was $1.182; annual distribution was $0.86 per unit and payout ratio was 73%.

• Q4 investment in development and redevelopment was $56M; total 2023 investment was $130M.

Outlook and guidance

• 2024 objectives: FFO per unit above $1.20 and debt-to-EBITDA below 10x; 2023 actuals were $1.182 and 9.9x, respectively.

• Up to ~6M sf of additional density approvals expected by year-end 2026; current-market-value potential to increase recognized density value by ~$450M.

• Active developments total 717,000 sf at share, with projected cost of $733M; selected project completion targets span H1 2024 to H2 2028.