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Real Estate Report

First Capital REIT

May 02, 2023

Investment Type
Mid - Cap
Risk Level
Rec. Price ()

Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

First Capital REIT (FCR.UN) is a developer, owner, and operator of mixed-use urban real estate in Canada's populated centers. The company's focus is on creating thriving neighborhoods that create value for businesses, residents, communities, and investors. Kalkine’s Real Estate Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~32.90% of the total shareholding. RBC Global Asset Management Inc. and CI Global Asset Management hold a maximum stake in the company at ~­­­10.34% and ~4.96%, respectively.

1.4 Key Metrics:

The company reported a positive trend in its occupancy rates, which stood at 95.8% in Q4 2022, as well as an increase in net operating income on a sequential basis, which is a key positive. Furthermore, the group has gained traction under FFO, demonstrating its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as announcement regarding dividend distribution, property disposition and shares repurchasing.

2.2 Insights on FY 2022 Financial Performance:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~0.19% and a downside of ~13.31% over the last 1 month and 3 months respectively. Moreover, the stock is trading below the average of 52-week high price of CAD 169.89 and 52-week low price of CAD 115.90 providing an opportunity to ride the trend. First Capital REIT (FCR.UN) was last covered in a report dated ‘2nd November 2022’.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Based Relative Valuation (Illustrative)

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 May 1, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.


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