First Capital REIT Sets Stage for Q1 2025 Earnings Call

First Capital REIT (TSX: FCR.UN) has announced the date for its first-quarter 2025 earnings call, scheduled for Wednesday, May 7, 2025, at 2:00 p.m. (ET). This call will provide investors with a comprehensive overview of the company's financial performance for the quarter ending March 31, 2025. The earnings call is a crucial event for income-focused investors, offering insights into the REIT's operational efficiency, financial health, and strategic initiatives.



Key Highlights to Watch For

# 1. Financial Performance Metrics

Investors should closely monitor several key financial metrics during the earnings call. These include:

- Same Property NOI Growth: This metric reflects the REIT's ability to generate income from its existing properties. In Q4 2024, First Capital reported a 3.4% increase in Same Property NOI, excluding bad debt expenses and lease termination fees. This growth was driven by higher base rents and strong leasing activity.

- Portfolio Occupancy: High occupancy rates are indicative of strong tenant demand and stable cash flows. First Capital's portfolio occupancy stood at 96.8% as of December 31, 2024, representing a 60 basis points year-over-year increase.

- Lease Renewal Spreads: The REIT achieved a 12.7% net rental rate increase on lease renewals, demonstrating its pricing power and the resilience of its tenant base.

- Funds from Operations (FFO): Operating FFO per unit remained consistent at $0.32, while FFO per unit increased to $0.31, reflecting non-cash gains on derivatives. The REIT's normalized OFFO growth of nearly 6% in 2024 exceeded its strategic plan target of at least 3%.

# 2. Balance Sheet and Liquidity

First Capital's balance sheet strength is another critical area of focus. The REIT's net debt to Adjusted EBITDA ratio improved to 8.7x as of December 31, 2024, down from 9.9x a year earlier. This improvement, coupled with a liquidity position of approximately $0.9 billion, provides the REIT with the financial flexibility to pursue growth opportunities and maintain its dividend payouts.

# 3. Dividend Policy

The REIT's dividend policy is a key consideration for income-seeking investors. First Capital announced a 3% increase in monthly distributions, effective January 2025. This increase brings the annualized dividend to $0.89 per unit, reflecting the REIT's confidence in its cash flow stability and growth prospects.

# 4. Strategic Initiatives

Investors should also pay attention to First Capital's strategic initiatives, including its development and redevelopment activities. The REIT invested approximately $57 million in property improvements during Q4 2024, focusing on high-demand, grocery-anchored centers. Additionally, First Capital completed $105 million in dispositions, streamlining its portfolio and enhancing its financial position.

Industry Benchmarks and Comparisons

First Capital's performance in Q4 2024 compares favorably with industry benchmarks. The REIT's 96.8% occupancy rate exceeds the average for Canadian retail REITs, while its 3.4% Same Property NOI growth outperforms many peers. Furthermore, First Capital's net debt-to-EBITDA ratio of 8.7x is healthier than some retail REITs, indicating better leverage management.

Conclusion

First Capital REIT's upcoming earnings call on May 7, 2025, presents an opportunity for investors to gain insights into the company's financial performance, strategic initiatives, and growth prospects. With a strong focus on operational efficiency, balance sheet strength, and dividend sustainability, First Capital is well-positioned to deliver value to its shareholders. Income-seeking investors should tune in to the call to stay informed about the REIT's progress and future outlook.