Mr. Adam Paul reports

FIRST CAPITAL REIT ANNOUNCES STRONG FOURTH QUARTER 2023 RESULTS ALONG WITH $116M OF NEW PROPERTY DISPOSITIONS AND LEASE COMMITMENTS FOR 100% OF ONE BLOOR EAST

First Capital Real Estate Investment Trust has released financial results for the fourth quarter and year ended Dec. 31, 2023. The fourth quarter 2023 report is available in the investors section of the trust's website and has been filed on SEDAR+.

Key highlights from the fourth quarter:

• Strong leasing activity, including lease renewal spreads of 13.5 per cent;
• Funds from operations per unit excluding other gains and (losses) of 32 cents;
• Improved net debt to earnings before interest, taxes, depreciation and amortization ratio to 9.8 times;
• $116-million of new disposition announcements.

"First Capital's leading grocery-anchored portfolio delivered strong results with full-year 2023 lease renewal spreads accelerating to 12.1 per cent, increased portfolio occupancy of 96.2 per cent and an all-time-high average in-place rent of $23.34 per square foot," said Adam Paul, president and chief executive officer.

"In the quarter, we also advanced our portfolio optimization plan, announcing new asset sales of $116-million at a significant premium to their carrying value."

Mr. Paul continued, "More importantly, we are tracking ahead of targets with respect to the plan's key objectives of FFO per-unit growth while continuing to further strengthen FCR's credit metrics."

Enhanced capital allocation and portfolio optimization plan

First Capital continues to execute on the portfolio optimization plan to monetize over $1-billion by the end of 2024 of low-yielding assets, where value-enhancing goals have been achieved to reorient its portfolio by increasing short- to medium-term FFO growth while continuing to reduce debt. To date, First Capital has completed or has under firm agreement approximately $633-million of dispositions under the plan, with a cumulative in-place yield that is less than 3 per cent and an average premium to international financial reporting standard carrying value of 21 per cent.

During the quarter, First Capital completed or entered into firm agreements for property dispositions of approximately $175-million, consisting of:

• $58-million of previously announced dispositions completed during the quarter, including: (i) a 25-per-cent interest in the trust's Yonge and Roselawn development site, Toronto, Ont.; and (ii) a single-tenant property located at 6455 West Blvd., Vancouver, B.C.;
• $116-million of new dispositions being announced today that are subject to firm agreements entered into by the trust, which include: (i) its 50-per-cent interest in the Royal Orchard development site, located in Thornhill, Ont.; (ii) Circa Residences (68 residential rental suites), located in Richmond, B.C.; (iii) a 41.7-per-cent interest in 1071 King St. West, located in Toronto, Ont., reducing First Capital's interest to 25 per cent; and (iv) 71 King St. West, a small medical office building located in Mississauga, Ont. The aggregate sales price of these four properties reflects a 68-per-cent premium to their IFRS carrying value. The property sales are subject to all-cash purchase agreements with scheduled closing dates ranging from January to March, 2024.

Management conference call and webcast

First Capital invites you to participate at 2 p.m. ET on Wednesday, Feb. 7, 2024, in a live conference call with senior management to discuss financial results for the fourth quarter and year ended Dec. 31, 2023.

First Capital's financial statements and management's discussion and analysis for the fourth quarter will be released prior to the call and will be available on its website in the investors section and on the Canadian Securities Administrators' website at SEDAR+.

Teleconference

You can participate in the live conference by dialling 416-406-0743 or toll-free 1-800-898-3989 with access code 4055798 followed by the number sign. The call will be accessible for replay until Feb. 14, 2024, by dialling 905-694-9451 or toll-free 1-800-408-3053 with access code 5534134 followed by the number sign.

Webcast

To listen to the live audio webcast and conference call presentation, please go to First Capital's website. The webcast will be accessible for replay in the investors section of the website.

About First Capital Real Estate Investment Trust

First Capital owns, operates and develops grocery-anchored, open-air centres in neighbourhoods with the strongest demographics in Canada.

We seek Safe Harbor.