FIRST CAPITAL REIT REPORTS STRONG FOURTH QUARTER AND FULL-YEAR 2025 RESULTS

Executive Summary

• First Capital REIT reported its fourth quarter and full-year 2025 financial results, highlighting strong operational fundamentals including a 7% year-over-year growth in Operating FFO per unit for Q4 and a 97.1% total portfolio occupancy rate.
• The company announced a 2.5% increase in its monthly distribution to $0.076 per unit, effective for the January 2026 distribution, reflecting confidence in its cash flow generation and capital allocation strategy.
• Significant balance sheet metrics include a Net Debt to Adjusted EBITDA ratio of 9.1x and a Net Asset Value (NAV) per unit of $22.57, while the company continues to execute its disciplined asset disposition program, having completed or agreed to sell $194 million in properties during 2025.

Key Details

• Q4 2025 Operating FFO: $72.3 million ($0.34 per diluted unit), an increase of $4.6 million or 7% compared to Q4 2024 ($67.7 million / $0.32 per unit).
• Full Year 2025 Operating FFO: $285.6 million ($1.33 per diluted unit), a decrease of $5.3 million or 2% compared to 2024 ($291.0 million / $1.36 per unit), primarily due to non-recurring items in the prior year.
• Q4 2025 Net Income: $849.5 million ($3.95 per diluted unit), compared to $32.1 million ($0.15 per unit) in Q4 2024. The increase was driven by a $746.7 million deferred income tax recovery resulting from an internal tax reorganization.
• Full Year 2025 Net Income: $1.1 billion ($4.96 per diluted unit), compared to $204.9 million ($0.96 per unit) in 2024.
• Same Property NOI Growth:
  • Q4 2025: 7.9% total growth; 5.7% excluding bad debt and lease termination fees.
  • Full Year 2025: 5.2% total growth; 5.9% excluding bad debt and lease termination fees.
• Occupancy: Total portfolio occupancy stood at 97.1% at year-end 2025 (up 30 basis points year-over-year). Same property occupancy was 97.2%.
• Leasing Metrics:
  • Q4 Lease Renewal Lift: 15.8% on 522,000 sq ft.
  • Full Year Lease Renewal Lift: 14.8% on 2,201,000 sq ft.
  • Average Net Rental Rate: $24.73 per square foot (up 3.0% year-over-year).
• Capital Allocation (Q4 2025):
  • Development/Redevelopment/Residential Inventory Investments: ~$47 million.
  • Property Dispositions: $67 million completed, including the sale of Montgomery Assembly for $42 million.
  • Firm agreements entered for four additional properties totaling $43 million.
• Capital Allocation (Full Year 2025):
  • Total Property Investments: ~$190 million.
  • Total Dispositions (completed or agreed): $194 million.
  • Average premium to IFRS carrying value on dispositions: >40%.
• Balance Sheet:
  • Net Debt: $4,052.9 million.
  • Net Debt to Adjusted EBITDA: 9.1x.
  • Net Asset Value (NAV) per unit: $22.57.
  • Liquidity: ~$0.7 billion, including $678 million in revolving credit facility availability.
  • Unencumbered Assets: $6.27 billion (68% of total assets).
• Distribution Update: Board approved a 2.5% distribution increase to $0.076 per unit monthly (annualized $0.912), effective January 2026.

Notable Quotes

• "Strong fundamentals for FCR's grocery anchored portfolio together with the disciplined execution of our capital allocation strategy delivered solid results again in 2025," said Adam Paul, President & CEO.
• "Healthy leasing metrics including same property NOI growth of more than 5%, lease renewal spreads of nearly 15% and occupancy of 97.1% contributed to normalized Operating FFO per unit growth of 5.5% for the year". Mr. Paul continued, "As we commence the final year of our three-year strategic plan, I am pleased that we continue to track well against the metrics we presented to our investors in early 2024."