TORONTO, July 30, 2024 /CNW/ - First Capital Real Estate Investment Trust ("First Capital", "FCR", or the "Trust") (TSX:FCR), announced financial results for the quarter ended June 30, 2024. The 2024 Second Quarter Report is available in the Investors section of the Trust's website at www.fcr.ca and has been filed on SEDAR+ at www.sedarplus.ca. KEY HIGHLIGHTS FROM THE SECOND QUARTER: Operating FFO per unit of $0.32, representing year-over-year growth of 8.4% Same Property NOI growth of 4.6% Lease renewal spreads of 13.2% Improved Net Debt to EBITDA ratio to 9.2x "I am pleased with the successful execution of our strategy and strong leasing activity which continue to deliver solid operating and financial results. Looking ahead, we remain well positioned and on-track to achieve the key one- and three-year objectives we presented earlier this year at our Investor Day," said Adam Paul, President and CEO. SELECTED FINANCIAL INFORMATION Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Operating FFO ($ millions) (1)(2) $68.4 $63.0 $146.4 $116.8 FFO ($ millions) (1) $68.2 $63.8 $81.6 $53.5 Operating FFO per diluted unit (1)(2) $0.32 $0.29 $0.68 $0.54 Other gains and (losses) included in FFO per diluted unit (1) $0.00 $0.00 $0.02 $0.00 FFO per diluted unit (1) $0.32 $0.30 $0.70 $0.55 Total Same Property NOI growth (1)(3) 4.6 % 2.2 % 6.2 % 3.0 % Total portfolio occupancy (4) 96.3 % 95.9 % Total Same Property occupancy (1)(4) 96.4 % 95.8 % Increase (decrease) in value of investment properties, net (1) ($74.2) ($104.5) ($72.2) ($111.2) Net income (loss) attributable to unitholders ($ millions) $16.9 ($29.0) $91.7 $19.7 Net income (loss) attributable to unitholders per diluted unit $0.08 ($0.14) $0.43 $0.09 Weighted average diluted units for FFO and net income (000s) 214,287 214,056 214,137 214,648 (1) Refer to "Non-IFRS Financial Measures" section of this press release. (2) For the six months ended June 30, 2024, Operating FFO includes $Nil (June 30, 2023 - approximately $7 million or 3 cents per unit) of non-recurring costs related to the Unitholder activism. (3) Prior periods as reported; not restated to reflect current period categories. (4) As at June 30. SECOND QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS Same Property NOI Growth: Total Same Property NOI increased 4.6% over the prior year period. The growth was primarily due to higher base rent, lower non-recoverable expenditures, and a year-over-year increase in bad debt recovery of $0.9 million. Same Property NOI excluding bad debt expense (recovery) and lease termination fees increased 3.7%. Portfolio Occupancy: On a quarter-over-quarter basis, total portfolio occupancy increased 0.1% to 96.3% at June 30, 2024, from 96.2% at March 31, 2024. On a year-over-year basis, total portfolio occupancy increased 0.4% to 96.3% at June 30, 2024, from 95.9% at June 30, 2023. Lease Renewal Rate Increase: Net rental rates increased 13.2% on a volume of 720,000 square feet of lease renewals, when comparing the rental rate in the first year of the renewal term to the rental rate in the last year of the expiring term. Net rental rates on leases renewed in the quarter increased 18.9% when comparing the average rental rate over the renewal term to the rental rate in the last year of the expiring term primarily owing to the higher contractual growth rates negotiated over the renewed lease terms. Average Net Rental Rate: The portfolio average net rental rate increased by 0.5% or $0.11 per square foot over the prior quarter to a record $23.73 per square foot, primarily due to rent escalations and renewal lifts. Property Investments: First Capital invested approximately $37 million into its properties during the second quarter, primarily through development and redevelopment. Property Dispositions: During and subsequent to the second quarter, First Capital entered into firm agreements for $66 million of additional dispositions, including (i) 1629-1633 The Queensway, Etobicoke and (ii) 895 Lawrence Avenue East, Toronto. The properties are debt-free and subject to all-cash purchase agreements. The dispositions are expected to close in the fourth quarter of 2024 and first quarter of 2025. Since announcing the Optimization Plan, First Capital has $710 million of property disposition and related transactions that are completed or under firm agreement. Collectively these sales have been affected at an in-place yield that is less than 3% and an average premium to IFRS carrying value of more than 20%. $300 Million Series C Senior Unsecured Debenture Offering: On June 12, 2024, First Capital completed the issuance of $300 million aggregate principal amount of Series C senior unsecured debentures (the "Debentures") on a private placement basis. The Debentures were issued at par, bear interest at a rate of 5.455% per annum and mature on June 12, 2032. Net proceeds from the offering will primarily be allocated to the repayment of the remaining Series R senior unsecured debentures maturing August 30, 2024, and for general Trust purposes. Balance Sheet and Liquidity: First Capital's June 30, 2024 net debt to Adjusted EBITDA multiple was 9.2x, an improvement from 9.9x at December 31, 2023. First Capital's June 30, 2024 liquidity position was approximately $1.2 billion, including $698 million of availability on revolving credit facilities and $457 million of cash on a proportionate basis. Operating FFO per Diluted Unit of $0.32: Operating Funds from Operations of $68.4 million increased $5.3 million, or $0.02 per unit, over the prior year period. Supported by strong operating metrics, the increase in Operating FFO for the second quarter of 2024 was primarily due to higher NOI, totaling $6.0 million. FFO per Diluted Unit of $0.32: Funds From Operations of $68.2 million increased $4.5 million, or $0.02 per unit, over the prior year period. The increase was driven by higher Operating FFO of $5.3 million, partially offset by a year-over-year decrease in other gains (losses) and (expenses) of $0.9 million. Net Income (Loss) Attributable to Unitholders: For the three months ended June 30, 2024, First Capital recognized net income (loss) attributable to Unitholders of $16.9 million or $0.08 per diluted unit compared to ($29.0) million or ($0.14) per diluted unit for the prior year period. The increase ...