First Capital Real Estate Investment Trust (FCR.UN) Q2 2025 earnings summary

Executive summary

• Achieved record occupancy of 97.2% and robust leasing activity, with lease renewal spreads reaching 16.2% and significant renewals and new leases at higher rental rates.

• Same property cash NOI grew 6.2% year-over-year, driven by increased occupancy, new tenants, and higher rents, excluding bad debt and lease termination fees.

• Operating FFO per unit grew 6.2% year-over-year, reaching $0.34 for Q2 2025.

• Net income attributable to unitholders was $63.5 million, up from $16.9 million in Q2 2024.

• Progressing on a three-year strategic plan focused on FFO per unit growth, NAV growth, and stable distributions.

Financial highlights

• Operating FFO for Q2 was $73 million, up 6% year-over-year; FFO per diluted unit was $0.34.

• Same property NOI (excluding lease termination fees and bad debt) increased 6.2% year-over-year to $111 million.

• Net asset value per unit at June 30 was $22.20, up 2% year-over-year.

• Net income per diluted unit was $0.30, compared to $0.08 in Q2 2024.

• Total assets stood at $9.39 billion as of June 30, 2025.

Outlook and guidance

• 2025 same property NOI growth expected at 5%, up from prior 4% guidance.

• Continued above-average market rent growth anticipated due to strong demand and limited new supply.

• Three-year plan targets at least 3% average annual FFO per unit growth and net debt to adjusted EBITDA in the low 8x range by end of 2026.

• Management expects continued strong performance due to positive leasing momentum and limited new supply in grocery-anchored shopping centres.

• Forward-looking statements highlight risks related to economic conditions, tenant defaults, and execution of the three-year business plan.