71 slides from First Capital Real Estate Investment Trust's earnings presentation, Feb 7, 2024
Slide 1: Q4 2023 Investor Presentation
Q4 2023 Investor Presentation
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 1.0 Company Snapshot ....……………………………………………………………………………........................ XX 4 2.0 Highlights - Recent Financial and Operating Results ..….….….….….….……….………….......... 2.0 5–7 3.0 Thriving Neighbourhoods ……………………………….……………………………………………………...... 3.0 XX8 -–XX 20 4.0 4.0 Densi
Slide 4: Company Snapshot
1.0 COMPANY SNAPSHOT (TSX: FCR.UN) First Capital owns, operates and develops grocery-anchored, open-air centres in neighbourhoods with the strongest demographics in Canada. 142 22.3m sf neighbourhoods Major market of gross leasable area (19.4m sf at FCR share) focus $7.3b enterprise value 23.7m sf o
Slide 5: Highlights - Recent Financial and Operating Results
2.0 Highlights - Recent Financial and Operating Results
Slide 6: Highlights – Q4 2023
2.0 HIGHLIGHTS – Q4 2023 Optimization Plan • Tracking ahead of targets with respect to key objectives of: 1) FFO/unit growth (FFO >$1.20 in 2024) and 2) Improved credit metrics (Debt to EBITDA <10x end of 2024) • $476M or ~48% of ~$1B Plan is completed since the September 2022 Plan announcement • $1
Slide 7: Highlights – Q4 2023 Balance Sheet, Liquidity and Asset Quality
2.0 HIGHLIGHTS – Q4 2023 BALANCE SHEET, LIQUIDITY AND ASSET QUALITY Maintaining Financial Strength and Significant Liquidity • Approximately $0.8b of liquidity: $698m of availability on revolving credit facilities and $92m of cash (at FCR share) • $6.0b of unencumbered assets: Approximately 66% of t
Slide 8: Thriving Neighbourhoods
3.0 Thriving Neighbourhoods
Slide 9: Neighbourhood Investment Strategy
3.0 NEIGHBOURHOOD INVESTMENT STRATEGY Through the expertise and collaboration of our team, we create thriving properties which generate value for businesses, investors and our neighbourhoods. Thriving properties…Thriving neighbourhoods • Invest in high-quality, grocery anchored and mixed-use propert
Slide 10: Enhanced Capital Allocation & Portfolio Optimization Plan
3.0 ENHANCED CAPITAL ALLOCATION & PORTFOLIO OPTIMIZATION PLAN • In September 2022, the Trust announced its Enhanced Capital Allocation and Portfolio Optimization Plan (“the Plan”), which aims to monetize more than $1 billion of typically low-and-no-yielding, and sought-after assets over a two-year p
Slide 11: Thriving Neighbourhoods
3.0 THRIVING NEIGHBOURHOODS Proximity to transit, “Walk Score”, and most importantly population density are key criteria by which we evaluate the potential of our neighbourhoods. We have significantly improved these metrics over time through our investment and disposition activity and we intend to m
Slide 12: Thriving Neighbourhoods – Fair Values Across Canada's Major Cities
3.0 THRIVING NEIGHBOURHOODS – FAIR VALUES ACROSS CANADA’S MAJOR CITIES Vancouver, Calgary, Western Canada Central Canada Toronto Eastern Canada Montreal, Ottawa Edmonton Neighbourhoods 39 Neighbourhoods 64 Neighbourhoods 39 GLA 6.2m GLA 8.6m GLA 4.6m Fair Value % 30% Fair Value % 54% Fair Value % 16
Slide 13: Taking a High-Quality Portfolio on to New Heights
3.0 TAKING A HIGH-QUALITY PORTFOLIO ON TO NEW HEIGHTS ~ $3.4 b of total investment and disposition activities in 2019 to 2023 2019 – 2023 5km Average 5km Average $ Amount Population Household Income Acquisitions $634m 539,000 $139,000 Development Spend $652m 419,000 $130,000 Investment Total $1,286m
Slide 14: North American Leader in Population Density
3.0 THRIVING NEIGHBOURHOODS - NORTH AMERICAN LEADER IN POPULATION DENSITY FCR Portfolio Demographic Metrics versus Peer Group: Q4 2023 (1) 295,000 US $152,000 $133,000 $121,000 151,000 164,000 US Peers (2) CDN Peers (3) Q4 2023 US Peers (2) CDN Peers (3) Q4 2023 US Peers (2) CDN Peers (3) 5 km Popul
Slide 15: Growth in NAV per Unit
3.0 GROWTH IN NAV PER UNIT +2.3% CAGR 2015 –2023 $24.26 $24.26 $23.48 $23.39 $22.59 $22.59 $22.34 $21.85 $21.95 $21.85 $19.53 $19.53 $18.25 2015 2016 2017 2018 2019 2020 2021 2022 2023 First Capital 15
Slide 16: Solid Long Term Operating Performance
3.0 SOLID LONG TERM OPERATING PERFORMANCE Same Property NOI Growth 8.0% 2.9% 10-year 6.0% 4.0% 5.7% 5.1% pre-pandemic average (2010-2019) 2.0% 2.6%(2) 1.3% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2.4% 14-year average, -2.0% -2.6%(1) -4.0% including pandemic years (
Slide 17: Consistently High Performance in Renewal Leasing Spreads
3.0 CONSISTENTLY HIGH PERFORMANCE IN RENEWAL LEASING SPREADS Lease Renewal Rate Increases (1) 9.2% 10-year 14.0% 12.0% 12.1% pre-pandemic average (2010-2019) 10.0% 8.0% 6.0% 9.4% 14-year average, 4.0% including pandemic years 2.0% (2010-2023) 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 18: Top 20 Retail Tenants
3.0 TOP 20 RETAIL TENANTS Contribute 45.1% of annualized minimum rent (AMR) Investment Investment Rank # Tenant AMR Rank # Tenant AMR Grade Grade 1. 10.5% 11. 1.4% - 2. 5.5% 12. 1.4% 3. 3.2% 13. 1.3% 4. 2.9% 14. 1.3% 5. 2.1% 15. 1.3% 6. 2.0% 16. 1.1% 7. 1.9% 17. 1.1% - 8. 1.8% - 18. 1.1% - 9. 1.7% -
Slide 19: Strategic and Diversified Retail Tenant Mix
3.0 STRATEGIC AND DIVERSIFIED RETAIL TENANT MIX % of Rent # of locations Grocery Stores 17.1 123 Medical, Professional & 15.5 1,292 Personal Services QSR, Chains and Cafes 13.0 927 Other Necessity-Based 12.4 380 Retailers Pharmacies 9.2 118 Banks & Credit Unions 8.1 185 Other Tenants 7.9 466 Value-B
Slide 20: Q4 2023 New Tenant Openings
WO Q4 2023 NEW TENANT OPENINGS : E "st AXBAR Mark’s f ‘ ysAvs —wellwise Wat | DOLLARAMA (cf. “(ation ASHLEY eregance @ Chunschun® crumbl me Specsavers
Slide 21: Density Pipeline and Development
4.0 Density Pipeline and Development
Slide 22: Significant Future Density Pipeline
4.0 SIGNIFICANT FUTURE DENSITY PIPELINE Total development inventory of 23.7m sf Included IFRS values are: GLA/GFA IFRS Value (M) Density and 1071 King St West Toronto, ON Yonge & Roselawn Toronto, ON development 7.1m $515 land Properties under 352k $124 construction Residential 365k $212 inventory 2
Slide 23: Future Incremental Density - Entitlements Program
4.0 FUTURE INCREMENTAL DENSITY - ENTITLEMENTS PROGRAM • FCR submitted entitlement applications for 17.3m sf or 73% of its incremental density pipeline • FCR expects to recognize increased IFRS values as previously submitted and future submissions are approved • 8.5m sq ft zoned to date; expecting up
Slide 24: Active Developments
4.1 Active Developments @e First OD CAPITAL
Slide 25: Active Developments - Developing in Thriving Neighbourhoods
4.1 ACTIVE DEVELOPMENTS - DEVELOPING IN THRIVING NEIGHBOURHOODS Active Developments = 717,000 sf with a total projected cost of $733m At FCR’s share As at December 31, 2023 Estimated GLA at Completion (‘000 sf) Project (1)(2) Interest % Type Residential Commercial Total Stanley Park Mall, Kitchener
Slide 26: Environmental, Social and Governance (ESG)
5.0 Environmental, Social and Governance (ESG)
Slide 27: ESG Initiatives
5.0 ESG INITIATIVES 2022 Green Lease Leader 2023 Sector Leader for Developments Benchmark by Institute for Market 2nd amongst our peers in the Standing Investments Transformation Benchmark Awarded Prime Status for Corporate ESG AAAESG Rating Performance (2023) First Capital 27
Slide 28: ESG Initiatives
5.0 ESG INITIATIVES Winner in the Canada’s Canada’s Top Small & Greenest Employers First Canadian REIT to be a Medium Employers Competition signatory in support of the Task Force on Climate- Related Financial Disclosure Recognized as one of Selected for inclusion in “The Career Greater Toronto’s Top
Slide 29: ESG Initiatives
5.0 ESG INITIATIVES 81% Properties certified by Received The Outstanding Building of the Year Award (“TOBY”) from BOMA GLA (2023) International for 85 Hanna and BOMA Toronto for Barrymore Building 7.1m sf 129 LEED-certified projects Achieved WELL Health- Safety Rating (35 properties) > 4.4m sf (2023
Slide 30: ESG Roadmap (2020-2024)
5.0 ESG ROADMAP (2020-2024) Environment Social Governance •2030 greenhouse gas (GHG) reduction •Launched the FCR Thriving •Aligned disclosures with the Task target to achieve reduction of 46% in Neighbourhoods Foundation, with Force on Climate-related Financial Scope 1 & 2 emissions has been focus o
Slide 31: ESG Initiatives
5.0 ESG INITIATIVES Need access to data (Melissa) • 2030 GHG reduction target validated by the Science-Based Target Initiative (SBTi): 46% in Scope 1 & 2 GHG emissions from 2019 GHG Emissions baseline 27,000 • Achieved 9% decrease in GHG emissions over 2019 baseline (2019-2022) • Achieved 7% decreas
Slide 32: Enhancing Thriving Neighbourhoods Through Public Art
5.0 ENHANCING THRIVING NEIGHBOURHOODS THROUGH PUBLIC ART 31 Public Art Installations commissioned across our portfolio Supporting Public Art partnerships with First Capital 32
Slide 33: FCR Equity, Diversity & Inclusion (ED&I)
5.0 FCR EQUITY, DIVERSITY & INCLUSION (ED&I) First Capital is committed to sustaining an equitable, diverse, and inclusive culture of belonging, where all employees have an equal opportunity to thrive, love what they do and grow their careers. First Capital continues to evolve and build an action fr
Slide 34: Strong Gender Diversity Metrics Across the Organization
5.0 STRONG GENDER DIVERSITY METRICS ACROSS THE ORGANIZATION EXECUTIVE BOARD MEMBERS MEMBERS 33% Women 67% Men 30% Women 70% Men Selected for inclusion in “The Career TOTAL MANAGEMENT Directory” from 2021 - 2023 as one ROLES EMPLOYEES of Canada’s Best Employers for Recent Graduates Over 50% of manage
Slide 35: FCR Thriving Neighbourhood Foundation
5.0 FCR THRIVING NEIGHBOURHOOD FOUNDATION • The FCR Thriving Neighbourhoods Foundation, founded in 2020, is an employee-led organization supporting registered charities and philanthropic initiatives that support the neighbourhoods in which we operate • The Foundation has four pillars of focus includ
Slide 36: FCR Thriving Neighbourhood Foundation Achievements
5.0 FCR THRIVING NEIGHBOURHOOD FOUNDATION ACHIEVEMENTS Food Insecurity • In 2020, over $66,000 was raised and donated to food banks across Canada • For 2021, we partnered with Second Harvest. We raised $338,000 to provide meals for Canadian families. These funds rescued and redistributed over 939,00
Slide 37: Financial Strength and Flexibility
6.0 Super Financial Strength Urban and Flexibility Neighbourhoods
Slide 38: Capital Structure
6.0 CAPITAL STRUCTURE (1) $8.8B $7.3B Gross Asset Value (2) Enterprise Value $b WAIR (3) $1.5B Mortgages 1.4 3.8% Secured Debt Secured Facilities 0.1 6.4% Total Secured 1.5 4.0% 21% $2.7B Unsecured Debentures 1.6 4.0% Unsecured Debt Unsecured Term Loans 1.1 4.6% 39% Unsecured Revolving Facilities -
Slide 39: Financial Strength and Flexibility
6.0 FINANCIAL STRENGTH AND FLEXIBILITY 2023 2022 2021 2020 2019 2018 2017 Unsecured revolving credit facilities (million) $700 $800 $800 $800 $800 $800 $800 66% Unencumbered assets (billion) $6.0 $6.6 $7.4 $7.0 $7.0 $7.3 $7.4 of total assets are Unencumbered assets(2) to unsecured debt 2.4x 2.3x 2.3
Slide 40: Staggered Term Debt Maturities ($M)
6.0 STAGGERED TERM DEBT MATURITIES ($M) WAIR 3.9% Term to Maturity 3.3 years $900 5.5% Unsecured Term Loans 5.1% Millions 5.0% $800 Mortgages 94% of Term Debt is Fixed Rate 4.6% Senior Unsecured Debentures 4.5% $700 4.2% Weighted Average Effective Interest % 3.9% 4.0% 3.7% 3.6% $600 3.5% 3.3% 3.3% 3
Slide 41: Staggered Term Debt Maturities ($M) – Pro forma
6.0 STAGGERED TERM DEBT MATURITIES ($M) – Pro forma (1) WAIR 3.9% Term to Maturity 3.4 years $900 Unsecured Term Loans 5.5% 5.1% Mortgages 5.0% $800 94% of Term Debt is Fixed Rate 4.6% Senior Unsecured Debentures 4.3% Weighted Average Effective Interest % 4.5% $700 4.0% 3.9% 4.0% $600 3.4% 3.5% 3.3%
Slide 42: OFFO Payout Ratio
6.0 OFFO PAYOUT RATIO: Higher quality cash flow; conservative and sustainable payout ratio $350 90% 84% 82% $302 $300 $287 78% $284 80% 74% $261 $253 $250 $236 71% $237 $261 69% $225 70% 73% $200 60% $150 48% 50% $100 40% 40% $50 $0 30% 2015 2016 2017 2018 2019 2020 2021 2022 2023 FFO excl OGLE/unit
Slide 43: Appendix I - Profiling Thriving Neighbourhoods
Appendix I Profiling Thriving Neighbourhoods
Slide 44: Liberty Village
Liberty Village Toronto, ON Property Statistics 5KM 2022 Estimates Population 589,000 Average Household Income $127,000 Gross Leasable Area 497,000 sf Acreage 12.6 Future Density 870,000 sf Key Tenants First Capital 44
Slide 45: King High Line
King High Line Liberty Village, Toronto, ON Property Statistics 5KM 2022 Estimates Population 591,000 Average Household Income $126,000 Gross Leasable Area Retail GLA 154,000 sf FCR Interest 100% Commercial Key Tenants First Capital 45
Slide 46: Olde Oakville Market Place
Olde Oakville Market Place Oakville, ON Demographics 5KM 2022 Estimates Population 125,000 Average Household Income $207,000 Gross Leasable Area Retail GLA 124,000 sf Key Tenants First Capital 46
Slide 47: Griffintown
Griffintown Montreal, QC Demographics 5KM 2022 Estimates Population 431,000 Average Household Income $112,000 Retail GLA 255,000 sf Key Tenants First Capital 47
Slide 48: Appleby Village
Appleby Village Burlington, ON Demographics 5KM 2022 Estimates Population 99,000 Average Household Income $158,000 Gross Leasable Area Retail GLA 210,000 sf Key Tenants First Capital 48
Slide 49: Mount Royal Village
Mount Royal Village Calgary, AB Demographics 5KM 2022 Estimates Population 240,000 Average Household Income $140,000 Gross Leasable Area 365,000 sf Acreage 4.4 Key Tenants First Capital 49
Slide 50: Pemberton Plaza
Pemberton Plaza North Vancouver, BC Demographics 5KM 2022 Estimates Population 207,000 Average Household Income $132,000 Gross Leasable Area Retail GLA 99,000 sf Key Tenants First Capital 50
Slide 51: The Brewery District
The Brewery District Edmonton, AB Demographics 5KM 2022 Estimates Population 202,000 Average Household Income $100,000 Gross Leasable Area (at 100%) 297,000 sf FCR Interest 50% Key Tenants First Capital 51
Slide 52: Cranston Market
Cranston Market Calgary, AB Demographics 5KM 2022 Estimates Population 140,000 Average Household Income $156,000 Gross Leasable Area Retail GLA 84,000 sf Key Tenants First Capital 52
Slide 53: False Creek Village
False Creek Village Vancouver, BC Demographics 5KM 2022 Estimates Population 446,000 Average Household Income $123,000 Retail GLA 63,000 sf Key Tenants First Capital 53
Slide 54: Leaside Village
Leaside Village Toronto, ON Demographics 5KM 2022 Estimates Population 512,000 Average Household Income $173,000 Gross Leasable Area Retail GLA 198,000 sf Key Tenants First Capital 54
Slide 55: Bloor-Yorkville
Bloor-Yorkville Toronto, ON Demographics 5KM 2022 Estimates Population 774,000 Average Household Income $152,000 Gross Leasable Area Yorkville Village 315,000 sf One Bloor East 85,000 sf Total Bloor/Yorkville 400,000 sf Future Density 139,000 sf Key Tenants First Capital 55
Slide 56: Bloor-Yorkville
BLOOR-YORKVILLE Bloor-Yorkville A 138 Yorkville Avenue (Development) B Yorkville Village (Retail) First Capital 56
Slide 57: Yorkville Village
New Tenant Opening Yorkville Village Kith another first to market international retailer in the FCR Portfolio September 2023 Opening First Capital 57
Slide 58: Appendix II - Active & Recent Developments
Appendix II Active & Recent Developments
Slide 59: Station Place
Recent Development Completion Station Place Toronto, ON Demographics 5KM 2022 Estimates Population 282,000 Average Household Income $149,000 Gross Leasable Area (at 100%) Retail GLA 43,000 sf Residential GLA (333 Rental Units) 267,000 sf Total GLA 310,000 sf FCR Interest / 50% partner 35% /_________
Slide 60: Centre Commercial Wilderton
Recent Development Completion Centre Commercial Wilderton Montreal, QC Demographics 5KM 2022 Estimates Population 630,000 Average Household Income $108,000 Property Statistics Pre-redevelopment GLA 112,000 sf Post Redevelopment GLA Retail GLA (FCR Interest 100%) 125,000 sf Residential GLA (not owned
Slide 61: 200 West Esplanade
Recent Development Completion 200 West Esplanade North Vancouver, BC Demographics 5KM 2022 Estimates Population 273,000 Average Household Income $126,000 Current Gross Leasable Area (at 100%) Residential GLA (75 Rental Units) 48,000 sf Retail GLA 10,000 sf Total GLA 58,000 sf FCR Interest 50% 50% Pa
Slide 62: Stanley Park Mall
Active Development Stanley Park Mall Kitchener, ON Demographics 5KM 2022 Estimates Population 139,000 Average Household Income $104,000 Gross Leasable Area Square Feet Under Active Development 61,000 sf Retail GLA 189,000 sf Target Completion Date H1 2024 • Construction of a new purpose built 61k sf
Slide 63: Cedarbrae Mall
Active Development Cedarbrae Mall Toronto, ON Demographics 5KM 2022 Estimates Population 296,000 Average Household Income $102,000 Gross Floor Area Square Feet Under Active Development 7,000 sf Retail GLA 476,000 sf Target Completion Date H1 2024 • An extensive retail renovation within the former Wa
Slide 64: Edenbridge Kingsway
Active Development Edenbridge Kingsway Humbertown, Toronto, ON Demographics 5KM 2022 Estimates Population 362,000 Average Household Income $140,000 Phase 1 Site Area 1.8 acres Current Gross Floor Area (at 100%) Retail GFA 7,400 sf Residential GFA 247,000 sf Total GFA 254,400 sf 100% Commercial FCR I
Slide 65: Humbertown Shopping Centre
Active Development Humbertown Shopping Centre Toronto, ON Demographics 5KM 2022 Estimates Population 362,000 Average Household Income $140,000 Phase 1 Site Area 7.19 acres Current Gross Floor Area (at 100%) Phase I Retail GFA 26,000 sf Phase I Total GFA 135,000 sf FCR Interest 100% Commercial Target
Slide 66: 400 King Street West
Active Development 400 King Street West Toronto, ON Demographics 5KM 2022 Estimates Population 611,000 Average Household Income $135,000 Current Gross Floor Area (at 100%) Residential GFA (612 Rental Units) 427,000 sf Non-Residential GFA 37,000 sf Total GFA 464,000 sf FCR Interest 35% 50% Partner Re
Slide 67: 138 Yorkville Avenue
Active Development 138 Yorkville Avenue Toronto, ON Demographics 5KM 2022 Estimates Population 808,000 Average Household Income $142,000 Gross Floor Area (at 100%) Current Residential GFA 274,000 sf Retail GFA 40,000 sf Total GFA 314,000 sf FCR Interest (1) 33%/100% Co-development Partner 33% Passiv
Slide 68: Yonge & Roselawn
Active Development Yonge & Roselawn Toronto, ON Demographics 5KM 2022 Estimates Population 504,000 Average Household Income $187,000 Rendering Gross Floor Area (at 100%) Residential GFA (552 Rental Units) 449,000 sf Retail GFA 65,000 sf Total Future GFA 514,000 sf FCR Interest 50% 50% Partner Curren
Slide 69: 1071 King Street West
Near Term Development 1071 King Street West Toronto, ON Demographics 5KM 2022 Estimates Population 601,000 Average Household Income $127,000 Gross Floor Area (at 100%) Residential GFA (278 Rental Units) 221,000 sf Retail GFA 5,000 sf Total GFA 226,000 sf FCR Interest 25% Partners Rendering Targeted
Slide 70: 2150 Lake Shore Blvd W
Medium & Long Term Development 2150 Lake Shore Blvd W Former Christie Cookie Site, Toronto, ON Demographics 5KM 2022 Estimates Population 276,000 Average Household Income $136,000 Gross Floor Area (at 100%) Residential GFA ( ~7,500 Units) 6,300,000 sf Non-Residential GFA 1,200,000 sf Total GFA 7,500
Slide 71: 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