First Capital Real Estate Investment Trust (FCR.UN) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results, with robust leasing, NOI, and FFO growth, record-high occupancy of 97.1%, and all-time high average in-place net rental rate of CAD 24.73 per sq ft.

• Renewed 2.2 million sq ft of leases with an average 15% increase in net rental rates; 500,000 sq ft of new leasing completed at higher rents.

• Board approved a 2.5% increase to monthly distribution effective January 2026, raising the annualized rate to $0.912 per unit.

• Owns and operates $9.3B in total assets, with 21.8M SF gross leasable area across 136 Canadian neighborhoods, focusing on grocery-anchored, open-air centers in high-density, affluent areas.

• Key objectives include FFO per unit, NAV per unit, and distribution per unit growth, with continued execution of a three-year strategic plan.

Financial highlights

• Q4 Operating FFO per unit was CAD 0.34, up 7% year-over-year; full-year Operating FFO reached CAD 286 million (CAD 1.33 per unit), up from CAD 270 million (CAD 1.26 per unit) in 2024.

• Same property NOI (excluding lease termination fees and bad debt) grew 5.7% in Q4 and 5.9% for the year.

• Net income attributable to unitholders for Q4 was $849.5M ($3.95 per unit); annual net income was $1.1B ($4.96 per unit), driven by deferred tax recovery.

• Average net rental rate reached $24.73 per sq. ft., up 3.0% year-over-year.

• Occupancy rate was 97.1%, up 0.3% from Q4 2024.

Outlook and guidance

• 2026 same property NOI growth expected at approximately 3%, reflecting a tough comp against a strong 2025.

• Development expenditures for 2026 projected at CAD 200–240 million, higher than prior years.

• Retail development/redevelopment deliveries expected to contribute CAD 55–65 million in NOI, weighted toward late 2026 and 2027.

• Value uplift of ~$60M or ~$0.30/unit expected by end of 2026 from entitlement program and density pipeline.

• Interest expense to rise due to refinancing at higher rates, with a CAD 6 million annual increase from new debentures.