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

Executive summary

• Delivered strong Q4 and full-year 2025 results, with robust growth in key operating and financial metrics, including record-high occupancy of 97.1% and all-time high average in-place net rental rates.

• 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.

• Board approved a 2.5% increase to monthly distribution, effective January 2026.

• 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.

Financial highlights

• Q4 operating FFO was CAD 72 million, up 7% year-over-year and 1% sequentially; Q4 FFO per unit was $0.34, up 7% year-over-year.

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

• Full-year operating FFO was CAD 286 million (CAD 1.33 per unit), up from CAD 270 million (CAD 1.26 per unit) in 2024.

• Net rent per square foot reached a record $24.73, up 3.0% year-over-year.

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

Outlook and guidance

• 2026 is the final year of the three-year plan, with tracking ahead of key objectives.

• Same property NOI growth for 2026 expected at approximately 3%, excluding lease termination fees and bad debt.

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

• Retail development/redevelopment deliveries expected to generate 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.