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

Executive summary

• Achieved strong year-one and Q4 2024 results, advancing a three-year strategic plan focused on portfolio optimization, FFO growth, and balance sheet improvement.

• 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 in monthly distributions, effective January 2025.

• Recognized for ESG leadership, receiving 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

• Q4 2024 Operating FFO was $67.7M ($0.32 per unit), flat year-over-year; annual Operating FFO was $291.0M ($1.36 per unit), up $37.7M from 2023.

• Same property NOI grew 3.3% for the year, above initial expectations; Q4 growth was 3.4% excluding one-time items.

• Lease renewal spreads were 12.5% for the year; occupancy rose to 96.8%, up 0.6 percentage points year-over-year.

• Net asset value per unit at year-end was $22.05, stable year-over-year.

• Net rent per square foot rose 2.8% year-over-year to $24.00, driven by renewal lifts and escalations.

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.

• Development expenditures for 2025 projected at CAD 130–160 million, with key projects underway.

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

• Remains on track to meet three-year business plan objectives, including ongoing property dispositions.