First Capital Realty (TSE:FCR.UN)
TSX:FCR.UN
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First Capital Realty
(TSX:FCR.UN)
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Rating:73Outperform
Price Target:
C$22.50
â–²(4.55% Upside)
Action:UpgradedDate:02/18/26
The score is driven mainly by solid (but not pristine) financial performance—strong margins and acceptable leverage tempered by uneven revenue and weaker free-cash-flow quality—plus constructive technical momentum. Valuation is notably attractive (low P/E and healthy yield), while earnings-call guidance and sentiment are supportive but include clear near-term growth and financing headwinds.
Positive Factors
Strong same‑property NOI and leasing
Consistent same-property NOI growth and robust leasing metrics indicate durable rent-setting power and tenant demand in urban retail nodes. Large renewal volume with double-digit rent lifts and substantial new leasing support sustainable rental income, underpinning long-term NOI and redevelopment economics.
Negative Factors
Weak free cash flow / cash conversion
Sharply lower free cash flow and weak cash conversion relative to accounting earnings reduce internal funding available for distributions, capex or deleveraging. Persistent timing swings from development receipts and non‑cash valuation items could constrain capital allocation and distribution resilience over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong same‑property NOI and leasing
Consistent same-property NOI growth and robust leasing metrics indicate durable rent-setting power and tenant demand in urban retail nodes. Large renewal volume with double-digit rent lifts and substantial new leasing support sustainable rental income, underpinning long-term NOI and redevelopment economics.
Read all positive factors
First Capital Realty (FCR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.57B
Dividend Yield4.71%
Average Volume (3M)277.79K
Price to Earnings (P/E)3.8
Beta (1Y)0.51
Revenue Growth-0.83%
EPS Growth-28.93%
CountryCA
Employees364
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)3.95
Shares Outstanding212,452,420
10 Day Avg. Volume223,063
30 Day Avg. Volume277,785
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.83
Price to Sales (P/S)5.49
P/FCF Ratio67.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$22.71Price Target Upside5.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.3
Revenue Forecast (FY)C$754.81M
First Capital Realty Business Overview & Revenue Model
Company Description
First Capital is a leading developer, owner and manager of mixed-use real estate located in Canada's most densely populated cities. First Capital's focus is on creating thriving urban neighbourhoods to generate value for businesses, residents, com...
How the Company Makes Money
First Capital Realty generates revenue primarily through leasing its retail and mixed-use properties to tenants, which include a diverse mix of national and local retailers. The company earns rental income from long-term lease agreements, typicall...
First Capital Realty Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operating momentum driven by robust leasing, record occupancy, all‑time high rents and solid FFO growth, supported by meaningful balance sheet strengthening (extended debt ladder, strong liquidity) and continued disciplined dispositions/development. Headwinds include near‑term vacancy and lost rent from lease terminations and Toys "R" Us, increased interest costs from recent refinancings (adding ~$6M/year), fair value markdowns tied to development/density, and a moderated same‑property NOI outlook (~3% for 2026) given tough comps. On balance, the company demonstrated strong execution on core retail fundamentals and financial positioning, while acknowledging transitory financing and transactional headwinds.Positive Updates
Strong Same-Property NOI and Leasing Performance
Full-year 2025 same-property cash NOI grew 5.9% (ex-lease termination fees and bad debt). Q4 same-property NOI rose 5.7% YoY ($112M vs $106M). Renewals totaled ~2.2M sq ft (535 spaces) with average year‑1 renewal rents up nearly 15% vs expiries and a ~20% renewal lift comparing last year of expiring terms to average renewal rents. New leasing was ~500k sq ft across 193 spaces with average year‑1 net rent of $28.23/sq ft.
Negative Updates
Lease Termination Fees and Short‑Term Vacancies
Q4 lease termination fees were $2.6M from seven tenants (47k sq ft), creating short‑term loss of recurring rental income and roughly 25 bps of portfolio vacancy; management expects backfill prospects but there is near‑term NOI pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Same-Property NOI and Leasing Performance
Full-year 2025 same-property cash NOI grew 5.9% (ex-lease termination fees and bad debt). Q4 same-property NOI rose 5.7% YoY ($112M vs $106M). Renewals totaled ~2.2M sq ft (535 spaces) with average year‑1 renewal rents up nearly 15% vs expiries and a ~20% renewal lift comparing last year of expiring terms to average renewal rents. New leasing was ~500k sq ft across 193 spaces with average year‑1 net rent of $28.23/sq ft.
Read all positive updates
Company Guidance
Management guided 2026 same‑property NOI growth of about 3% (excluding lease termination fees and bad debt), which combined with 2025’s strong 5.9% same‑property NOI would produce more than 9% stacked growth over two years; they expect 2026 development spend of $200–240M (vs $163M in 2025) with $55–65M of retail development/redevelopment deliveries and a stabilized NOI yield of 6.5–7% (benefit weighted to late 2026/2027). They warned of higher financing costs as a result of the $500M debenture issuance (weighted‑average effective rate ~4.7% vs ~3.5% on repaid debt), a ~120bp increase on $500M that equates to roughly $6M of incremental annual interest beginning Q1 2026, while reiterating their objective to reach low‑8x debt‑to‑EBITDA by end‑2026 from the current low‑9s; other balance‑sheet metrics cited were >$700M liquidity, $6.3B unencumbered assets (~70% of assets), a 16% secured‑debt/asset ratio, a 4.6‑year weighted average debt maturity (up from 3.7 a year ago) and only $129M (3% of total debt) maturing in 2026. They also referenced operating FFO of $286M ($1.33/unit) in 2025, Q4 OFFO/unit of $0.34, an OFFO payout ratio of 67% (ACFO payout 83%), planned development ramp at Yonge & Roselawn, and anticipated condominium cash inflows (Edenbridge gross ~$115–120M with ~33% collected and an expected ~$50–60M of proceeds in Q1).First Capital Realty Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 731.24M | 712.59M | 752.07M | 712.20M | 683.81M |
| Gross Profit | 459.94M | 446.35M | 489.34M | 444.61M | 420.86M |
| EBITDA | 458.78M | 389.88M | 441.68M | 404.62M | 373.37M |
| Net Income | 1.06B | 204.93M | -134.06M | -160.00M | 460.13M |
Balance Sheet | |||||
| Total Assets | 9.23B | 9.18B | 9.19B | 9.58B | 10.11B |
| Cash, Cash Equivalents and Short-Term Investments | 57.17M | 153.54M | 90.22M | 36.03M | 74.06M |
| Total Debt | 3.99B | 4.05B | 4.09B | 4.14B | 4.43B |
| Total Liabilities | 4.34B | 5.17B | 5.19B | 5.25B | 5.44B |
| Stockholders Equity | 4.82B | 3.95B | 3.93B | 4.28B | 4.62B |
Cash Flow | |||||
| Free Cash Flow | 59.81M | 110.02M | 84.71M | 126.21M | 96.09M |
| Operating Cash Flow | 206.71M | 233.79M | 227.73M | 251.22M | 249.61M |
| Investing Cash Flow | -50.88M | 33.38M | 83.69M | 133.98M | 154.89M |
| Financing Cash Flow | -252.50M | -204.30M | -256.70M | -387.21M | -470.25M |
First Capital Realty Technical Analysis
Positive
21.52
Price Trends
20.61
Positive
19.78
Positive
19.13
Positive
Market Momentum
0.16
Negative
65.11
Neutral
87.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FCR.UN, the sentiment is Positive. The current price of 21.52 is above the 20-day moving average (MA) of 20.74, above the 50-day MA of 20.61, and above the 200-day MA of 19.13, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FCR.UN.
First Capital Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.17B | 10.72 | 6.52% | 5.52% | 26.88% | 77.26% | |
74 Outperform | C$3.08B | 24.31 | 6.29% | 5.82% | 6.32% | ― | |
73 Outperform | C$4.57B | 3.77 | 25.30% | 4.71% | -0.83% | -28.93% | |
73 Outperform | C$4.13B | 7.47 | 18.40% | 5.74% | 4.11% | 35.99% | |
71 Outperform | C$4.71B | 18.23 | 4.85% | 7.22% | 0.48% | 96.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | C$5.86B | 79.85 | 0.92% | 6.21% | 22.22% | -71.38% |
* Real Estate Sector Average
TSE:FCR.UN
First Capital Realty
21.52
6.39
42.26%
TSE:REI.UN
RioCan Real Estate Investment
20.18
4.66
30.00%
TSE:CRR.UN
Crombie Real Estate ate
16.46
3.27
24.77%
TSE:CRT.UN
CT Real Estate Investment
17.25
3.65
26.88%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
27.64
4.79
20.96%
TSE:PMZ.UN
Primaris Real Estate Investment Trust
18.42
5.21
39.45%
First Capital Realty Corporate Events
Business Operations and StrategyDividends
First Capital REIT Declares February 2026 Monthly Distribution
Positive
Feb 10, 2026
First Capital REIT has declared a cash distribution of $0.076 per REIT unit for February 2026, equivalent to $0.912 per unit on an annualized basis. The payment is scheduled for March 16, 2026 to unitholders of record as of February 27, 2026, unde...
Business Operations and StrategyFinancial Disclosures
First Capital REIT posts strong 2025 results on leasing gains and high occupancy
Positive
Feb 10, 2026
First Capital REIT reported strong fourth-quarter and full-year 2025 results, driven by its grocery-anchored portfolio and disciplined capital allocation strategy. Operating FFO per unit rose to $0.34 in the quarter, up 7% year over year, while to...
Dividends
First Capital REIT Raises Annual Distribution by 2.5%
Positive
Jan 15, 2026
First Capital REIT has approved a 2.5% increase in its annualized distribution to $0.912 per unit, paid monthly, with the higher payout effective for unitholders of record as of January 30, 2026. The January distribution will be $0.076 per unit, p...
Financial DisclosuresRegulatory Filings and Compliance
First Capital REIT Sets Date for Q4 2025 Results Call
Neutral
Jan 13, 2026
First Capital REIT has scheduled a live conference call with senior management for February 11, 2026, to discuss its financial results for the fourth quarter ended December 31, 2025, with the financial statements and MDA to be released beforehand ...
Business Operations and StrategyPrivate Placements and Financing
First Capital REIT Completes C$250 Million Debenture Offering
Positive
Dec 8, 2025
First Capital REIT has completed a C$250 million offering of Series G senior unsecured debentures, which were issued at a price of $99.986 per $100.00 principal amount and bear interest at 4.760% per annum, maturing on February 15, 2035. The proce...
Business Operations and StrategyPrivate Placements and Financing
First Capital REIT Announces Debenture Offering and Redemption Plan
Positive
Dec 1, 2025
First Capital REIT has announced a C$250 million offering of Series G senior unsecured debentures, with the proceeds intended to partially fund the redemption of C$300 million in Series T senior unsecured debentures. This strategic financial move ...
Business Operations and Strategy
First Capital REIT Completes Internal Reorganization
Neutral
Dec 1, 2025
First Capital REIT has completed an internal reorganization by eliminating First Capital Realty Inc. as its wholly-owned subsidiary, simplifying its organizational structure. This reorganization does not alter the company’s strategy, portfol...
Business Operations and StrategyShareholder Meetings
First Capital REIT Secures Unitholder Approval for Reorganization
Positive
Nov 24, 2025
First Capital REIT has received overwhelming unitholder approval for its internal reorganization plan, with 99.58% of votes cast in favor during a special meeting. This reorganization, subject to court approval, is expected to be effective by the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.