First Capital Realty (FCR.UN) AI Stock Analysis

• Market Cap: C$3.49B
• Dividend Yield: 5.26%
• Average Volume (3M): 465.05K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.03
• Revenue Growth: 6.55%
• EPS Growth: N/A
• Country: CA
• Employees: 372
• Sector: Real Estate
• Sector Strength: 71
• Industry: REIT - Retail
• EPS (TTM): 0.96
• Shares Outstanding: 212,300,000
• 10 Day Avg. Volume: 540,293
• 30 Day Avg. Volume: 465,048
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.89
• Price to Cash Flow (P/CF): 10.90
• P/FCF Ratio: 14.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$20.00
• Price Target Upside: 20.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

First Capital Realty demonstrates strong operational efficiency and cash flow management, benefiting from a strategic three-year plan that enhances growth and financial metrics. However, challenges such as revenue growth consistency and market conditions temper the outlook. The valuation is attractive with a high dividend yield, appealing to income investors, while recent corporate events reinforce confidence in ongoing performance.

Positive Factors

Debt Management

Debt financing costs have improved, positively impacting FCR's financial stability.

Operational Performance

FCR's operational performance has been solid, indicating strong company fundamentals despite concerns about the Canadian economy.

Negative Factors

Economic Outlook

The near-term economic outlook has become increasingly uncertain due to lower immigration targets and the threat of a protracted trade dispute with the U.S.

Execution Risk

Failure to execute on the three-year business plan, which requires a significant volume of dispositions through 2026, is the primary risk to the recommendation.

Interest Expense

Interest expense increased due to refinancing debt maturities at higher interest rates, which could impact profitability.

First Capital Realty Business Overview & Revenue Model

Company Description

First Capital Realty Inc. (FCR.UN) is a leading Canadian real estate company specializing in the ownership, development, and management of urban retail properties. The company focuses on high-quality, mixed-use properties situated in major urban centers across Canada. Its portfolio comprises retail centers, office spaces, and residential units, strategically located to leverage high pedestrian traffic and vibrant community settings.

How the Company Makes Money

First Capital Realty Inc. generates revenue primarily through leasing its retail, office, and residential properties to a diverse range of tenants. The company's revenue streams include rental income from long-term lease agreements with retailers, such as grocery stores, pharmacies, and service providers, which form the backbone of its commercial property holdings. Additionally, FCR.UN benefits from property development projects, which enhance the value of its existing assets and generate sales revenue from developed units. Strategic partnerships with retailers and property management services further contribute to its earnings, ensuring stable cash flow and value appreciation in its real estate portfolio.

First Capital Realty Financial Statement Overview

Summary

First Capital Realty exhibits solid operational efficiency and cash flow management, but faces challenges with revenue growth and net income stability. The balance sheet remains relatively strong but is becoming more leveraged over time. Overall, the company manages well but needs to address profitability consistency and top-line growth to enhance its financial standing.

Income Statement

First Capital Realty's gross profit margin has been relatively stable, demonstrating strong operational efficiency. However, the net profit margin is inconsistent due to fluctuating net income, affected by a significant net loss in 2023. Revenue growth has been minimal, with only a slight increase in 2024 after a decline in 2023, indicating challenges in expanding top-line growth.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. However, the equity ratio has been decreasing slightly, indicating a potential increase in financial risk. Return on equity is inconsistent, reflecting volatility in net income, which poses a challenge to investor returns.

Cash Flow

The cash flow statement reveals healthy operating cash flow relative to net income, indicating efficient cash generation from operations. Free cash flow has shown growth in 2024, enhancing financial flexibility. However, the free cash flow to net income ratio is variable, reflecting fluctuations in profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
713.52M	755.87M	693.10M	674.89M	672.89M
	Gross Profit
447.29M	493.14M	425.50M	412.54M	399.03M
	EBIT
0.00	445.48M	399.26M	367.65M	383.41M
	EBITDA
386.27M	445.48M	3.15M	373.67M	389.00M
	Net Income Common Stockholders
204.93M	-134.06M	-159.76M	460.13M	7.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.54M	90.22M	36.03M	74.06M	104.16M
	Total Assets
9.18B	9.19B	9.58B	10.11B	10.03B
	Total Debt
4.05B	4.09B	4.14B	4.43B	4.79B
	Net Debt
3.90B	4.00B	4.11B	4.40B	4.69B
	Total Liabilities
5.17B	5.19B	5.25B	5.44B	5.78B
	Stockholders Equity
3.95B	3.93B	4.28B	4.62B	4.23B
Cash Flow		Free Cash Flow
110.02M	84.71M	126.21M	96.09M	14.47M
	Operating Cash Flow
233.79M	227.73M	251.22M	249.61M	219.50M
	Investing Cash Flow
33.38M	83.69M	133.98M	154.89M	10.23M
	Financing Cash Flow
-204.30M	-256.70M	-387.21M	-470.25M	-154.79M

First Capital Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FCR.UN, the sentiment is Negative. The current price of 16.53 is below the 20-day moving average (MA) of 16.77, below the 50-day MA of 16.67, and below the 200-day MA of 16.63, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 24.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FCR.UN.

First Capital Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRU.UN	76 Outperform	C$4.33B	18.94	4.50%	7.35%	9.46%	-42.77%
PLZ.UN	73 Outperform	C$416.28M	16.79	4.61%	7.42%	5.99%	20.38%
FCR.UN	72 Outperform	C$3.49B	17.02	5.20%	5.26%	6.55%	―
REI.UN	68 Neutral	$5.12B	10.93	6.34%	6.74%	11.62%	1120.60%
AX.UN	67 Neutral	$766.59M	―	-2.86%	8.19%	-10.56%	81.41%
HR.UN	63 Neutral	C$2.64B	―	-2.29%	5.96%	-6.92%	-310.05%
Sector *	61 Neutral	$4.75B	18.23	-3.59%	10.86%	6.00%	-21.50%

First Capital Realty Corporate Events

First Capital REIT Declares March 2025 Cash Distribution

First Capital REIT announced a cash distribution of $0.074167 per REIT unit for March, amounting to $0.89 annually. This distribution, payable on April 15, 2025, reflects the company’s ongoing commitment to providing returns to its unitholders, reinforcing its stable financial operations and strong market positioning.

First Capital REIT Declares February 2025 Distribution

First Capital REIT announced a cash distribution of $0.074167 per REIT unit for February, equating to $0.89 annually. This distribution, payable on March 17, 2025, reflects the company’s ongoing commitment to providing returns to its unitholders and maintaining its strong position in the Canadian retail real estate sector.

First Capital Reports Robust Q4 and 2024 Financial Performance

First Capital Real Estate Investment Trust reported strong financial results for the fourth quarter and full year of 2024, showcasing significant improvements in key performance metrics. The company experienced a 3.4% growth in Same Property NOI and a total portfolio occupancy increase to 96.8%. Additionally, First Capital announced a 3% increase in monthly distributions effective January 2025, reflecting confidence in its strategic plan. The Trust achieved a 6% growth in normalized OFFO per unit, surpassing its annual average target, and improved its debt to EBITDA ratio, strengthening its financial position.

First Capital REIT Declares January 2025 Cash Distribution

First Capital REIT has announced a cash distribution of approximately $0.074 per REIT unit for January 2025, which annualizes to $0.89 per unit. This distribution is scheduled for payment on February 18, 2025, to unitholders of record by January 31, 2025, reflecting First Capital’s continued commitment to delivering value to its stakeholders.

First Capital REIT to Discuss Q4 2024 Results in Upcoming Conference Call

First Capital REIT has announced a live conference call for February 12, 2025, to discuss its financial results for the fourth quarter of 2024. The financial statements will be available prior to the call, and stakeholders can access the live audio webcast and replay options through the company’s website, indicating a commitment to transparency and engagement with investors.