First Capital REIT Announces Temporary Reduction in Distributions to Unitholders to Advance Real Estate Strategy While Strengthening its Financial Position

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[{"type":"text","content":"\n \n \n \n First Capital REIT Announces Temporary Reduction in Distributions to Unitholders to Advance Real Estate Strategy While Strengthening its Financial Position\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN\n \n THE UNITED STATES\n \n /\n \n \n \n TORONTO\n \n ,\n \n Jan. 12, 2021\n \n /CNW/ - First Capital REIT (\"First Capital\" or the \"REIT\") (TSX: FCR.UN), announced today the temporary reduction of its monthly distribution to unitholders from\n \n $0.0716\n \n per unit to\n \n $0.036\n \n per unit, or from\n \n $0.860\n \n to\n \n $0.432\n \n on an annualized basis. The reduction in the distribution will provide First Capital with additional retained cash flow of approximately\n \n $95 million\n \n per annum and is expected to span approximately two years.\n \n \n The impact of COVID-19 on First Capital's business and on market conditions continues to evolve, particularly given the uncertainty related to the duration of new government mandated closures in several regions. As a result, the REIT's Board of Trustees has made the decision to reduce the distribution to provide First Capital with meaningful financial flexibility to advance its strategic objectives. The decrease will be effective for the REIT's\n \n January 2021\n \n distribution, payable to unitholders in\n \n February 2021\n \n .\n \n \n Subject to the duration and ultimate economic impact of the pandemic, the Board believes the reduction will be in place for a period spanning approximately two-years. Thereafter, the Board's intention is that the REIT's distributions will approximate the current level.\n \n \n \n Adam Paul\n \n , President and CEO of First Capital said, \"This decision is a significant step towards advancing FCR's objectives and mitigating the impact of the pandemic. Accordingly, we believe the beneficial outcome of this decision will be higher FFO, higher NAV and lower financial leverage than would otherwise be the case.\"\n \n \n Firs...

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