First Capital Realty (FCR.UN) AI Stock Analysis

• Market Cap: C$3.64B
• Dividend Yield: 5.09%
• Average Volume (3M): 457.63K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.91
• Revenue Growth: 3.11%
• EPS Growth: N/A
• Country: CA
• Employees: 364
• Sector: Real Estate
• Sector Strength: 62
• Industry: REIT - Retail
• EPS (TTM): 0.39
• Shares Outstanding: 212,420,870
• 10 Day Avg. Volume: 565,820
• 30 Day Avg. Volume: 457,634
• PEG Ratio: 3.32
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.08
• 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$20.25
• Price Target Upside: 18.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: C$19.50 ▲( 13.77% Upside)

First Capital Realty exhibits solid financial fundamentals with strengths in profitability and cash flow management. Technical indicators support stock strength, and the company's fair valuation and attractive dividend yield enhance investment appeal. The positive earnings call reinforces operational efficiency and strategic progress, though macroeconomic uncertainties and revenue growth challenges present risks. Overall, the stock is positioned well for stability and potential growth.

Positive Factors

Asset Management

The REIT's asset sales strategy focuses on non-core properties, achieving a sale price 25% above the IFRS value for a Montreal site.

Leasing Activity

Leasing activity remains strong, and the runway for rent growth is long.

Operational Performance

Operating performance improves with double-digit leasing spreads and improvement in same-property occupancy driving strong internal growth of 5.3%.

Negative Factors

Business Plan Execution

Failure to execute on the three-year business plan is the primary risk.

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.

Interest Expenses

Interest expense rose due to refinancing debt maturities at higher interest rates, increasing FCR's weighted average interest rate.

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, communities and our investors.

How the Company Makes Money

First Capital Realty generates revenue primarily through the leasing and management of its retail-centered real estate properties. The company earns income from leasing space to a variety of tenants, including national retailers, local businesses, and service providers, ensuring a diversified and stable revenue stream. Additionally, First Capital Realty engages in strategic property development and redevelopment projects that enhance property values and increase rental income. The company also benefits from property appreciation and potential capital gains on asset sales. Key partnerships with retailers and other stakeholders contribute to the successful execution of its development strategies and long-term revenue growth.

First Capital Realty Financial Statement Overview

Summary

First Capital Realty shows a moderate level of profitability and stability. The income statement reveals a strong gross profit margin of 62.91%, but inconsistent revenue growth. The balance sheet indicates a solid equity base with a debt-to-equity ratio of 1.02, though asset utilization could be improved. Cash flow generation is robust, with a strong operating cash flow to net income ratio of 1.09, despite fluctuations in free cash flow growth.

Income Statement

The company's income statement shows a moderate level of profitability and stability. The gross profit margin for TTM is a healthy 62.91%, indicating strong cost control and efficient operations. However, the net profit margin has improved to 29.68% from a negative position in 2023, reflecting significant recovery but also recent volatility. Revenue growth is inconsistent, with a slight increase from the previous year, indicating challenges in consistent revenue generation.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 1.02, suggesting a balanced approach to leveraging. The return on equity for TTM is 5.39%, indicating moderate profitability relative to shareholder equity. However, the equity ratio of 43.37% shows a stable financial structure, though there is room for improvement in asset utilization efficiency.

Cash Flow

The cash flow statement indicates robust cash generation capabilities. The free cash flow growth rate is slightly negative at -0.96% in the latest period, but the operating cash flow to net income ratio is 1.09, indicating strong cash flow relative to net earnings. The free cash flow to net income ratio of 0.51 further supports a solid cash position, despite some fluctuations in free cash flow growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
722.73M	713.52M	755.87M	693.10M	674.89M	672.89M
	Gross Profit
454.52M	447.29M	493.14M	425.50M	412.54M	399.03M
	EBIT
400.84M	388.25M	445.48M	399.26M	367.65M	383.41M
	EBITDA
454.57M	386.27M	445.48M	3.15M	373.67M	389.00M
	Net Income Common Stockholders
214.56M	204.93M	-134.06M	-159.76M	460.13M	7.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.93M	153.54M	90.22M	36.03M	74.06M	104.16M
	Total Assets
9.64B	9.18B	9.19B	9.58B	10.11B	10.03B
	Total Debt
4.24B	4.05B	4.09B	4.14B	4.43B	4.79B
	Net Debt
4.16B	3.90B	4.00B	4.11B	4.40B	4.69B
	Total Liabilities
5.32B	5.17B	5.19B	5.25B	5.44B	5.78B
	Stockholders Equity
4.27B	3.95B	3.93B	4.28B	4.62B	4.23B
Cash Flow		Free Cash Flow
108.97M	110.02M	84.71M	126.21M	96.09M	14.47M
	Operating Cash Flow
233.50M	233.79M	227.73M	251.22M	249.61M	219.50M
	Investing Cash Flow
-33.00K	33.38M	83.69M	133.98M	154.89M	10.23M
	Financing Cash Flow
-254.41M	-204.30M	-256.70M	-387.21M	-470.25M	-154.79M

First Capital Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 17.14 is above the 20-day moving average (MA) of 17.10, above the 50-day MA of 16.61, and above the 200-day MA of 16.88, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 24.29 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCR.UN	76 Outperform	C$3.64B	16.96	5.40%	5.09%	3.11%	―
Sector *	60 Neutral	$2.75B	10.29	0.33%	8508.22%	5.95%	-17.48%
RIOCF		$3.67B	19.41	3.61%	6.55%	―	―
CRT.UN	82 Outperform	C$3.67B	8.28	11.23%	5.99%	4.54%	68.32%
SRU.UN	78 Outperform	C$4.31B	18.32	4.75%	7.29%	10.06%	-19.26%
DIR.UN	73 Outperform	C$3.09B	13.23	4.92%	6.67%	6.68%	14.72%
CRR.UN	69 Neutral	C$2.67B	―	-0.49%	6.16%	6.96%	85.15%

First Capital Realty Corporate Events

First Capital REIT Declares May 2025 Cash Distribution

First Capital REIT announced a cash distribution of $0.074167 per REIT unit for May, amounting to $0.89 per unit annually. This distribution, payable on June 16, 2025, reflects the company’s ongoing commitment to providing returns to its unitholders, reinforcing its position in the Canadian real estate market.

The most recent analyst rating on ($TSE:FCR.UN) stock is a Hold with a C$17.50 price target. To see the full list of analyst forecasts on First Capital Realty stock, see the TSE:FCR.UN Stock Forecast page.

First Capital Reports Strong Q1 2025 Results Amid Robust Leasing

First Capital reported strong financial results for the first quarter of 2025, driven by robust leasing activity and strategic capital allocation. The company achieved a total portfolio occupancy of 96.9%, matching its all-time high, and reported a 5.3% growth in Same Property NOI, excluding certain expenses. Despite a decrease in Operating FFO per unit due to a prior year’s assignment fee, First Capital’s fundamentals remain strong, supporting stability and growth in cash flow.

First Capital REIT Declares April 2025 Cash Distribution

First Capital REIT announced a cash distribution of $0.074167 per REIT unit for April, equating to $0.89 annually. This distribution, payable on May 15, 2025, reflects the company’s ongoing commitment to providing returns to its unitholders, reinforcing its stable position in the Canadian real estate market.

First Capital REIT Schedules Q1 2025 Results Conference Call

First Capital REIT announced that it will hold a live conference call on May 7, 2025, to discuss its financial results for the first quarter ending March 31, 2025. The financial statements and management’s discussion and analysis will be available on their website and the Canadian Securities Administrators’ website prior to the call. This announcement highlights the company’s commitment to transparency and engagement with stakeholders, providing insights into its financial performance and strategic direction.

First Capital REIT Elects Trustees, Reinforces Governance

First Capital REIT announced the successful election of all ten nominated trustees during its annual meeting of unitholders, with a significant representation of 81.59% of the trust’s issued and outstanding units. This election reaffirms the company’s governance stability and supports its strategic focus on maintaining a strong presence in prime Canadian neighborhoods, potentially benefiting stakeholders through sustained operational and market positioning strength.

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.