First Capital Real Estate Investment Trust (FCR.UN) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong operating and financial results, with same property cash NOI up 6.4% year-over-year, driven by increased occupancy and higher rents across the portfolio.

• Operating FFO per unit was $0.33, up 9% year-over-year when excluding a prior year density bonus.

• Occupancy remained high at 97.1%, with average in-place net rental rates reaching over $24.50 per sq ft.

• Lease renewal rates increased by 13.5% in Q3, with blended renewal lifts over 18%.

• The three-year strategic plan is on track, with operating FFO per unit CAGR at approximately 5% over 21 months, and Debt-to-EBITDA improving to the low 9s.

Financial highlights

• Operating FFO for Q3 was $72 million ($0.33 per unit), down from $77 million ($0.36 per unit) in Q3 2024, which included an $11 million one-time density bonus.

• Excluding the 2024 density bonus, FFO per unit grew 9% year-over-year.

• Same property NOI (excluding lease termination fees and bad debt) was $111 million, up $6.7 million from Q3 2023.

• Net income attributable to unitholders was $66.6 million ($0.31 per diluted unit), down from $81.1 million ($0.38 per unit) last year, mainly due to lower property value increases.

• Net asset value per unit increased to $22.29, up $0.37 year-over-year.

Outlook and guidance

• Expecting at least 5% same property NOI growth for 2025, ahead of prior expectations.

• Management expects continued stability and growth in cash flow, supported by strong fundamentals in the grocery-anchored retail portfolio.

• Confident in meeting the $750 million disposition target and achieving low eight times leverage by end of 2026.

• Anticipate continued strong leasing and above-average renewal spreads into 2026 and 2027.

• Forward-looking statements are subject to risks and uncertainties, with no assurance that future results will match expectations.