FIRST CAPITAL REIT REPORTS STRONG THIRD QUARTER 2025 RESULTS SUPPORTED BY 6% SAME-PROPERTY NOI GROWTH

Executive Summary

• First Capital Real Estate Investment Trust reported its third-quarter 2025 financial results, highlighting strong operational performance with a 6.4% year-over-year growth in Same Property NOI (excluding bad debt and lease termination fees) and a record average net rental rate of $24.57 per square foot.
• The Trust reported Operating FFO per diluted unit of $0.33, representing a 9% increase year-over-year when excluding a one-time density bonus recognized in the prior year period. Total portfolio occupancy remained high at 97.1%.
• The Board approved a proposed internal reorganization to simplify the organizational structure by eliminating a wholly-owned subsidiary, subject to unitholder approval at a special meeting on November 24, 2025.

Key Details

• Operating FFO: $71.6 million for the three months ended September 30, 2025 (down from $76.9 million in 2024, primarily due to an $11.3 million density bonus in Q3 2024; excluding this, Operating FFO grew ~9% YoY).
• FFO: $69.6 million for the three months ended September 30, 2025 (down from $72.3 million in 2024).
• Net Income: $66.6 million attributable to unitholders for Q3 2025 ($0.31 per diluted unit), compared to $81.1 million ($0.38 per diluted unit) in Q3 2024.
• Same Property NOI Growth: 6.4% excluding bad debt/lease termination fees; 7.2% total Same Property NOI growth.
• Occupancy: Total portfolio occupancy of 97.1% (up 0.6% YoY from 96.5% in Sept 2024).
• Lease Renewals: Volume of 543,000 sq ft renewed in Q3; Lease renewal lift of 13.5% on first-year rent and 18.7% on average rent over the renewal term.
• Rental Rates: Average net rental rate increased to a record $24.57 per occupied square foot (up $0.13 or 0.5% from Q2 2025).
• Capital Allocation (Q3 2025):
  • Acquisition of investment properties: $5.5 million.
  • Development expenditures: $24.6 million.
  • Investment in residential inventory: $18.5 million.
  • Property disposition proceeds: $34.6 million (including Place Anjou in Montreal).
• Balance Sheet:
  • Net Debt: $4,089.3 million.
  • Net Debt to Adjusted EBITDA: 9.2x.
  • Net Asset Value (NAV) per unit: $22.29.
  • Liquidity: Approximately $0.7 billion, including $626 million in revolving credit facility availability.
• ESG Ratings: Received a score of 94 in the 2025 GRESB Development Benchmark and an 'A' rating in the 2025 MSCI ESG Ratings assessment.
• Subsequent Event: Board approved an internal reorganization via plan of arrangement to eliminate First Capital Realty Inc. as a subsidiary, aiming to simplify accounting and tax compliance. Special meeting scheduled for November 24, 2025, with anticipated effectiveness on November 30, 2025.

Notable Quotes

• "We are pleased to report another strong quarter of operating and financial results, highlighted by near record occupancy, solid same-property NOI growth and robust lease renewal spreads", said Adam Paul, President & CEO.
• "Our results continue to reflect the successful execution of our strategy and the strong fundamentals of FCR's grocery anchored retail portfolio, which positions us well for continued stability and growth in cash flow."