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 long-term 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 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 CAD 76.9 million ($0.36 per unit), up CAD 8 million or 11.5% year-over-year; OFFO per unit rose to CAD 0.36 from CAD 0.32.

• Adjusted for non-recurring items, OFFO per unit was CAD 0.31 in Q3 2024, up from CAD 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, 2024, was CAD 21.92, up 3% year-over-year.

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

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 in OFFO and same property NOI; current results are tracking ahead of plan.

• Ongoing focus on FFO, NAV, and distribution per unit growth, with continued capital recycling and investment in core and value-add properties.

• 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.