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Highlights

  • First Capital REIT (FCR.UN) hosts a suite of prime real estate in some of the most popular neighbourhoods in Canada.
  • For Q2 2023, FCR’s net rental rates saw a growth of about 14.0% on a volume of 510,000 square feet of lease renewals.
  • FCR secured CAD 63.8 million funds from operations during the quarter, against CAD 61.3 million in pcp.

First Capital REIT (FCR.UN) hosts a suite of prime real estate in some of the most popular neighborhoods in Canada. The company is engaged in developing and operating around 144 neighborhoods, spread over 22.3 million sqft of gross leasable area valued at CAD$9.6 billion in total assets.

The company recorded a 2.2% growth in its total Same Property NOI over the previous year. This increase can be attributed to rising base rent, lease termination fees, and variable revenue contributions along with a drop in bad debt expense.

For the second quarter of the year 2023, First Capitals’ net rental rates saw a growth of about 14.0% on a volume of 510,000 sqft of lease renewals. Also, the net rental rates on the leases that were renewed during the quarter jumped 16.0%.

The company secured CAD 63.8 million funds from operations during the quarter, against CAD 61.3 million in the previous corresponding period.

In Q2 2023, the company achieved an occupancy rate of 95.9%, with a rise in the net operating income on a sequential basis.

 

Following adjustments under straight-line rent, REIT’s property rental revenue fell to CAD 171.9 million during the second quarter, as compared to CAD 172.6 million in the previous corresponding period.

However, net operating income increased to CAD 106.5 million due to reduced bad debt expense. Consequently, the company posted net loss of CAD 29.1 million during the reporting period, against a loss of CAD 42.1 million in Q2 2022.

Top 10 Shareholders
Around 32.17% of the total shareholding are owned by the company’s top ten shareholders. While RBC Global Asset Management Inc. owns ­­­10.35% shares in FCR, CI Global Asset Management holds approximately 4.88% of the total shareholding.

 

Stock Price Performance
The company stock price has dropped by 3.43% over the last one month, while it has declined by approximately 8.10% in the last three months. The stock’s 52-week high and low price stand at CAD 18.65 and CAD 13.535, respectively.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 1, 2023. The reference data in this report has been partly sourced from EODHD/Others.