First Capital Real Estate Investment Trust (FCR.UN) Q4 2024 earnings summary

Executive summary

• Achieved strong year-one and Q4 results of a three-year strategic plan, with portfolio optimization, balance sheet strengthening, and recurring FFO growth per unit.

• Owns and operates grocery-anchored, open-air centres in top Canadian neighborhoods, with $9.2B in total assets and 22.1M SF gross leasable area.

• Board approved a 3% increase to monthly distributions, effective January 2025.

• Recognized for ESG leadership and received multiple awards for corporate governance and sustainability.

• Portfolio is diversified across major Canadian cities, with 54% of fair value in Central Canada and 30% in Western Canada.

Financial highlights

• 2024 operating FFO (OFFO) was CAD 1.36 per unit, with normalized FFO at CAD 1.26 per unit after excluding non-recurring items.

• Q4 OFFO per unit was $0.32, a 0.3% decrease year-over-year; annual Operating FFO was $291.0M ($1.36 per unit), up $37.7M from 2023.

• Same property NOI grew 4.4% year-over-year, with Q4 growth at 2.7% (3.4% excluding one-time items).

• Lease renewal spreads reached 12.5% for the year, and occupancy improved to 96.8%.

• Net asset value per unit increased to CAD 22.05 at year-end; total assets at year-end were $9.18B.

Outlook and guidance

• 2025 same property NOI growth expected at approximately 4%, excluding lease termination fees and bad debt expense.

• Management targets continued growth in FFO per unit, NAV per unit, and distributions, with a focus on capital recycling, development, and maintaining high occupancy.

• FFO per unit growth in 2025 expected to be more level, with more meaningful improvements anticipated in 2026.