48 slides from First Capital Real Estate Investment Trust's earnings presentation, Oct 29, 2024
Slide 1: Q3 2024 Investor Presentation
Q3 2024 INVESTOR PRESENTATION 1
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
Forward-Looking Statements and Non-IFRS Financial Measures This material may contain forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions to the extent they relate to First Capital REIT (“Fir
Slide 3: Table of Contents
Table of Contents 1.0 FCR Overview …………………………..…………….……………………………………………………………………………………............................ 4–11 2.0 Q3 2024 Financial and Operating Highlights ………….……………………………………………………………………………………………… 12–14 3.0 Asset Profile………………………………………………………..…………………………………………………………………………………….. 15-16 3.1 C
Slide 4: FCR Overview
1.0 FCR Overview Centre Commercial Beaconsfield, Beaconsfield
Slide 5: FCR Overview
1.0 FCR Overview First Capital owns, operates and develops grocery-anchored, open-air centres in neighbourhoods with the strongest demographics in Canada. FCR.UN $9.2B ON THE TSX TOTAL ASSETS 22.2M SF $8.1B GROSS LEASABLE AREA ENTERPRISE VALUE (19.4M SF AT FCR SHARE) 138 22.3M SF NEIGHBOURHOODS FUTU
Slide 6: Core Competencies & Competitive Advantages
1.0 FCR Overview– Core Competencies & Competitive Advantages Core Competencies Competitive Advantages Acquiring, developing, owning and Core portfolio of grocery-anchored, operating open-air, grocery-anchored open-air shopping centres shopping centres Rezoning future development sites Portfolio of d
Slide 7: Key Objectives
1.0 FCR Overview– Key Objectives FFO per unit growth Key Objectives NAV per unit growth Distribution per unit growth First Capital 7
Slide 8: Fair Values Across Canada's Major Cities
1.0 FCR Overview– Fair Values Across Canada’s Major Cities Western Canada Central Canada Eastern Canada GLA 6.2M GLA 8.6M GLA 4.6M Fair Value % 30% Fair Value % 54% Fair Value % 16% Edmonton 7% Calgary Vancouver 12% 11% Montreal Toronto 12% 3% 47% Ottawa 4% 4% First Capital 8
Slide 9: Strategic and Diversified Retail Tenant Mix
1.0 FCR Overview– Strategic and Diversified Retail Tenant Mix % of Rent # of locations Grocery Stores 17.0 122 Medical, Professional & 15.0 1,261 Personal Services QSR, Chains and Cafes 13.1 922 Other Necessity-Based 12.5 379 Retailers Pharmacies 9.0 115 Other Tenants 8.2 455 Banks & Credit Unions 8
Slide 10: North American Leader in Population Density
1.0 North American Leader in Population Density FCR Portfolio Demographic Metrics versus Peer Group: Q3 2024(1) Q3 2024 US Peers(2) CDN Peers(3) $157,000 295,000 $133,000 $128,000 Q3 2024 US Peers (2) CDN Peers (3) Q3 2024 170,000 149,000 US Peers (2) CDN Peers (3) US Peers (2) CDN Peers (3) 5 km Po
Slide 11: Capital Structure Highlights
1.0 FCR Overview– Capital Structure Highlights $4.7B 16% NAV SECURED DEBT/TOTAL ASSETS $4.1B $6.2B NET DEBT UNENCUMBERED ASSETS 64% / 36% 68% UNSECURED / SECURED UNENCUMBERED ASSETS OF TOTAL ASSETS First Capital 11
Slide 12: Q3 2024 Financial and Operating Highlights
2.0 Q3 2024 Financial and Operating Highlights Strandherd Crossing, Ottawa
Slide 13: Highlights – Q3 2024: Financial Performance and Leasing
2.0 Highlights – Q3 2024 FINANCIAL LEASING & PERFORMANCE OCCUPANCY (1) $0.36 OFFO per unit Strong Leasing Activity 437,000 sf of renewal leasing at an average lift of 12.4% plus 196,000 sf of new leasing 3.7%(2) SP NOI Growth $23.85 Net Rent PSF +3.3% (+$0.77) YoY primarily due to renewal lifts, and
Slide 14: Balance Sheet and Capital Allocation
2.0 Highlights – Q3 2024 Balance Sheet and Capital Allocation FLEXIBLE CAPITAL ALLOCATION BALANCE SHEET STRATEGIC RESULTS $0.8B Corporate Liquidity $275M of Asset Sales(1) Including $698M of availability on $700M of revolving ~2% run rate NOI yield credit facilities and $67M of cash ~$6.2B Unencumbe
Slide 15: Asset Profile
3.0 Asset Profile Leaside Village, Toronto
Slide 16: Asset Profile and Core Competencies
3.0 Asset Profile and Core Competencies Assets Core Competencies Core Acquiring, developing, owning and operating open-air, grocery-anchored shopping centres Core Value-Add Other Rezoning future development sites First Capital 16
Slide 17: Core Properties, Q3 2024
3.1 Asset Profile – Core Properties, Q3 2024 IFRS Category % of Value Yield (%) Value ($B) Core 6.4 74% Core Value-Add 0.8 10% Total Core 7.2 84% 5.6% Core Properties • Grocery-Anchored • High-Occupancy • Steady & Growing Income • Low Management Intensity Brewery District, Edmonton First Capital 17
Slide 18: Core Properties Key Drivers of Performance Metrics
3.1 Asset Profile – Core Properties Core Properties are the Key Drivers Supported by high population density and of FCR’s leading Performance excellent transit connectivity Metrics: High & stable occupancy 241,000 (1) Average population within Highest rents in-place 5km radius Top tier renewal sprea
Slide 19: Total Portfolio Occupancy
3.1 Asset Profile – Total Portfolio Occupancy 100% 96.5% 98% (Q3 2024) 96.5% 96% 96% (1) 94% LTA ~95-97% 92% LOW/HIGH RANGE 90% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 (1) Since 2010 First Capital 19
Slide 20: FCR and Peer Net Rent Per Square Foot
3.1 Asset Profile – FCR and Peer Net Rent Per Square Foot $26 $24 $23.85 $22 (Q3 2024) $20 $18 2.8% CAGR (1) $16 $14 $12 $10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 FCR I n d u s t r y P e e r s (2) (1) Since 2010 (2) Industry peers include RioCan, Crombie REIT,
Slide 21: Lease Renewal Spread
3.1 Asset Profile – Lease Renewal Spread 14.0% 12.3%(2) 12.0% +9.4% LTA (1) 10.0% 8.0% +6-12% 6.0% LOW/HIGH RANGE 4.0% 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 (1) Since 2010 based on annual data. Lease renewal spread is on a total portfolio basis and
Slide 22: Same Property NOI Growth
3.1 Asset Profile – Same Property NOI Growth 8.0% 6.0% 5.7% 5.1% 5.0%(4) 4.0% 2.4% (1) 2.0% 2.6%(3) 1.3% LTA 0.0% -2.0% -2.6%(2) -4.0% -6.0% -7.1% -8.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 (1) 2.9% LTA pre-pandemic (2010-2019) (2) Ex-COVID Same Property NOI
Slide 23: Growth in NAV Per Unit
3.1 Asset Profile – Growth in NAV Per Unit $25 $24.28 $23.39 $23.48 $22.59 $22.34 $21.85 $21.95 $21.92 $20 $19.53 $18.00 $18.25 $17.73 $17.26 $15.40 $15 4.2% (1) $12.45 CAGR $10 $5 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 (1) Since 2010 First Capital 23
Slide 24: Leaside Village
3.1 Asset Profile – Core Properties Core Asset Leaside Village Toronto 198,000 SF 100% GLA OCCUPANCY 512,000 13 ACRES POPULATION – 5KM LAND SIZE First Capital 24
Slide 25: McKenzie Towne Centre
3.1 Asset Profile – Core Properties Core Asset McKenzie Towne Centre Calgary 234,000 SF 99.5% GLA OCCUPANCY 140,000 19 ACRES POPULATION – 5KM LAND SIZE First Capital 25
Slide 26: Brewery District
3.1 Asset Profile – Core Properties Core Asset Brewery District Edmonton 2 9 6 , 0 0 0 S F (1) 99.7% GLA OCCUPANCY 202,000 11.8 ACRES POPULATION – 5KM LAND SIZE (1) GLA at 100%; FCR ownership is 50% First Capital 26
Slide 27: Core Value-Add Properties, Q3 2024
3.2 Asset Profile – Core Value-Add Properties, Q3 2024 Core Value-Add Properties • Small sub-set of Core Properties • Typically, current format is not optimal (e.g enclosed areas, dated store formats, large box or other vacancy) • Offer the potential for capital investment at an attractive risk- wei
Slide 28: Humbertown Shopping Centre
3.2 Asset Profile – Core Value-Add Properties - Redevelopment Humbertown Shopping Centre Toronto 148,000+ SF GLA $140,000 HOUSEHOLD INCOME – 5KM 352,000 POPULATION– 5KM ROYAL YORK ROAD First Capital 28
Slide 29: Humbertown
3.2 Asset Profile – Core Value-Add Properties Humbertown ~$49M >7% I NV E S TMENT DE V E LO PMENT YI E L D Phase 1 (Completed Q3 2024) Phase 2 (To commence in Q1 2025) First Capital 29
Slide 30: Humbertown Phases 1-3
3.2 Asset Profile – Core Value-Add Properties Humbertown - Phase 1 Humbertown - Phase 2 Humbertown - Phase 3 First Capital 30
Slide 31: Other Properties, Q3 2024
3.3 Asset Profile – Other Properties, Q3 2024 IFRS Category % of Value Yield (%) Value ($B) Core 7.2 82% 5.6% Other(1) 1.6 18% ~2.8% Total Real Estate Assets 8.8 100% 5.1% Other Properties • Low or no yielding properties with development density • Select Yorkville, residential and other low yield in
Slide 32: Other Properties
3.3 Asset Profile – Other Properties First Capital 32
Slide 33: Other Properties, Q3 2024: Density Pipeline
3.3 Asset Profile – Other Properties, Q3 2024 Other Properties have a low NOI yield in part because they include ~$0.4B of recognized density value as well as various properties under construction. Reflected on Balance Sheet 22.3M SF DENSITY PIPELINE 1. 6.5M sf of zoned density - $376M; 30% Density
Slide 34: Entitlement Applications, Q3 2024
3.3 Asset Profile – Other Properties – Entitlement Applications, Q3 2024 37 PLANNING APPLICATIONS 20M SF (1) INCREMENTAL DENSITY Entitlement Program 11.6M SF (1) SUCCESSFULLY REZONED 4.6M SF EXPECTED WITHIN 3 YEARS ~$300M value uplift ~$1.40 per unit (1) Incremental density and Square feet successfu
Slide 35: High-Quality Portfolio on to New Heights
3.4 High-Quality Portfolio on to New Heights $3.7B of total investment and disposition activities in 2019 to Q3 2024 2019 – Q3 2024 $ Amount 5km Average Population 5km Average Household Income Acquisitions $667M 519,000 $140,000 Development Spend $735M 423,000 $132,000 Investment Total $1,402M 468,0
Slide 36: Environmental, Social and Governance (ESG)
4.0 Environmental, Social and Governance (ESG) Seton Gateway, Calgary
Slide 37: ESG Recognitions
4.0 ESG Recognitions Selected for inclusion in “The Career Directory” for 2021 – Awarded 2024 Gold Green Lease Leader 2024 as one of Canada’s Best Employers for Recent Recognition by the Institute for Market Graduates Transformation Listed as a top 30 Canadian company in Sustainalytics ‘Road Awarded
Slide 38: ESG Roadmap (2020-2024)
4.0 ESG Roadmap (2020-2024) Environment Social Governance 2030 Greenhouse Gas Reduction Launched Foundation TCFD Target to achieve reduction of 46% in Scope 1 & Launched the FCR Thriving Neighbourhoods Aligned disclosures with the Task Force on 2 emissions has been validated and approved by Foundati
Slide 39: ESG Initiatives
4.0 ESG Initiatives GHG Reduction GHG Emissions 2030 GHG reduction target validated by the Science-Based Target Initiative 30,000 (SBTi): 46% in Scope 1 & 2 GHG emissions from 2019 baseline 19% decrease Achieved in GHG emissions (2019-2023) 25,000 12% decrease Achieved in energy consumption (2019-20
Slide 40: Enhancing Thriving Neighbourhoods Through Public Art
4.0 Enhancing Thriving Neighbourhoods Through Public Art 33 Public Art Installations commissioned across our portfolio Supporting Public Art partnerships with First Capital 40
Slide 41: Strong Gender Diversity Metrics Across the Organization
4.0 Strong Gender Diversity Metrics Across the Organization EXECUTIVE BOARD MEMBERS MEMBERS Selected for inclusion in “The Career 33% Women 67% Men 30% Women 70% Men Directory” for 2023 & 2024 as one of Canada’s Best Employers for Recent Graduates >50% MANAGEMENT TOTAL of management positions are he
Slide 42: FCR Thriving Neighbourhoods Foundation
4.0 FCR Thriving Neighbourhoods Foundation Founded in 2020 The FCR Thriving Neighbourhoods Foundation has raised over $1.2M since 2020. Our Foundation is an employee-led organization supporting registered charities and philanthropic initiatives that support the neighbourhoods in which we operate. Fo
Slide 43: Financial Strength and Flexibility
5.0 Financial Strength and Flexibility Carré Lucerne, Montréal
Slide 44: Capital Structure
5.0 Capital Structure (1) $8.9B $8.1B Gross Asset Value (2) Enterprise Value $B WAIR⁽3⁾ $1.5B Mortgages 1.3 3.9% Secured Debt 18% Secured Facilities 0.2 6.6% Total Secured 1.5 4.2% $2.7B Unsecured Debentures 1.9 4.4% Unsecured Debt 33% Unsecured Term Loans 0.8 4.9% Unsecured Revolving
Slide 45: Liquidity and Well-Staggered Term Debt Maturities
5.0 Liquidity and Well-Staggered Term Debt Maturities ($M) $1,000 6.0% 5.5% 5.3% 5.2% 5.1% 4.3% WAIR $800 4.5% 5.0% 4.2% 4.1% 4.0% 3.7 Years 3.7% 3.6% $600 3.3% Term to Maturity 3.0% 100% Term Debt is Fixed Rate $400 2.0% $200 1.0% $- 0.0% Liquidity 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Slide 46: Liquidity and Term Debt Maturities – Proforma
5.0 Liquidity and Well-Staggered Term Debt Maturities ($M) – Proforma (1) $1,000 6.0% Millions 5.5% 5.3% 5.2% 5.1% 4.3% $800 4.3% 4.5% 5.0% WAIR 4.0% 3.9% 4.0% 3.8 Years 3.7% $600 3.3% Term to Maturity 3.0% 100% Term Debt is Fixed Rate $400 2.0% $200 1.0% $- 0.0% Liquidity 2024 2025 2026 2027 2028 2
Slide 47: Financial Strength and Flexibility
5.0 Financial Strength and Flexibility 2019 2020 2021 2022 2023 Q3 2024 Unsecured revolving credit facilities $800 $800 $800 $800 $700 $700 (million) Unencumbered assets (Billion) $7.0 $7.0 $7.4 $6.6 $6.0 $6.2 68% Unencumbered assets(1) to unsecured debt 2.2x 2.1x 2.3x 2.3x 2.4x 2.4x of total assets
Slide 48: Contact
Adam Paul President & CEO Neil Downey Executive VP, Enterprise Strategies & CFO First Capital Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, ON Tel: 416-504-4114 InvestorRelations@fcr.ca fcr.ca TSX: FCR.UN