FIRST CAPITAL REIT REPORTS STRONG SECOND QUARTER 2025 RESULTS WITH 6% OPERATING FFO PER UNIT GROWTH

Executive Summary

• First Capital Real Estate Investment Trust reported strong second quarter 2025 financial results, with Operating FFO per unit increasing 6.2% year-over-year to $0.34.
• The Trust achieved record total portfolio occupancy of 97.2% and Same Property NOI growth of 6.2% (excluding bad debt and lease termination fees), driven by rental rate growth and positive leasing momentum.
• The company completed a $300 million Series E senior unsecured debenture offering to refinance existing debt and reported significant property dispositions, including the sale of Place Anjou subsequent to quarter-end.

Key Details

• Operating FFO: $72.8 million for the three months ended June 30, 2025 (up from $68.4 million in 2024); $141.7 million for the six months ended June 30, 2025.
• FFO: $73.5 million for the three months ended June 30, 2025 (up from $68.2 million in 2024); $141.2 million for the six months ended June 30, 2025.
• Net Income: $63.5 million ($0.30 per diluted unit) for the three months ended June 30, 2025, compared to $16.9 million ($0.08 per diluted unit) in the prior year period.
• Same Property NOI Growth: 6.2% excluding bad debt/lease termination fees; 5.6% total Same Property NOI growth for the quarter.
• Occupancy: Total portfolio occupancy reached a record high of 97.2% at June 30, 2025 (up from 96.3% in 2024). Same Property occupancy was 97.3%.
• Leasing Metrics: Lease renewal volume was 626,000 square feet. Lease renewal spreads (lift) were 16.2% on a first-year rent basis and 20.9% on an average rent basis. Average Net Rental Rate per occupied square foot was $24.44.
• Capital Allocation (Q2 2025):
  • Development expenditures: $21.3 million.
  • Investment in residential inventory: $15.9 million.
  • Property disposition proceeds: $2.4 million.
  • Acquisition of investment properties: $0.
• Debt Offering: On June 13, 2025, the Trust issued $300 million in Series E senior unsecured debentures at par, bearing interest at 4.832% per annum, maturing June 13, 2033. Net proceeds were used to repay the $300 million Series S debentures due July 31, 2025.
• Balance Sheet: Net debt was $4,065.2 million. Net debt to Adjusted EBITDA multiple was 9.0x. Liquidity was approximately $1.0 billion, including $677 million in revolving credit facility availability.
• Subsequent Events: The Trust completed the sale of Place Anjou (a development site in Montreal) for approximately $33 million after quarter-end.
• Dispositions: Entered into a firm agreement to sell the Montgomery land assembly in mid-town Toronto for approximately $42 million, with closing expected in December 2025.

Notable Quotes

• "We are pleased to deliver a very strong quarter of operating and financial results, underpinned by solid leasing and record occupancy," said Adam Paul, President & CEO.
• "We continue to be encouraged by positive leasing momentum that is in part the result of numerous years of population growth set against very low supply growth in grocery-anchored shopping centres... we expect our portfolio will continue to perform well."