First Capital Realty provides update on recent property transactions and financing activity
TORONTO, July 3, 2012 /CNW/ - First Capital Realty Inc. (TSX: FCR) ("First Capital Realty" or the "Company"), Canada's leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres located predominantly in growing urban markets, announced today that year-to-date, it has acquired or committed to acquire $301 million of properties, and sold, or entered into binding agreements (subject to customary closing conditions) to sell, properties generating $279 million of proceeds, net of selling costs. The Company also announced that it has extended the maturity of, and reduced pricing on, its $500 million senior unsecured revolving credit facility.
Recent Property Acquisition Activities
First Capital Realty's acquisition activities since March 31, 2012 (Link to aerials) bring the Company's total investments in acquisitions, development activities and property improvements for the year to approximately $430 million, including the recent acquisitions described below.
On April 20, 2012, First Capital Realty acquired an 18,000 square foot building on Yorkville Avenue for future redevelopment adjacent to the Company's Hazelton Lanes shopping centre in Toronto, Ontario for $15.8 million including closing costs.
On May 31, 2012, the Company completed its previously announced purchase of The Plaza at New Westminster Station in the Greater Vancouver Area of British Columbia. The Plaza is part of a major mixed use development located at the corner of 8th Street and Columbia Street in downtown New Westminster, BC. The property is comprised of a 194,000 square foot shopping centre and 422-stall parking garage, and is integrated with the New Westminster SkyTrain light rapid transit (LRT) station and a bus terminal.
On June 13, 2012, First Capital Realty acquired a 6,500 square foot, free-standing Boston Pizza restaurant located on 1.1 acres integrated with the Company's Carrefour St-David shopping centre in Québec City, Québec, for $1.9 million including closing costs.
On June 15, 2012, the Company acquired a 254-room operating Travelodge hotel situated on 2.6 acres on Macleod Trail in Calgary, Alberta, in the middle of the Company's Macleod Trail assembly, for $11 million including closing costs. The acquisition brings the assembly to a total of 23.8 acres.
On June 21, 2012, First Capital Realty entered into a binding agreement to acquire 815-17th Avenue SW, a 50,000 square foot mixed-use retail and office property with 146 underground parking spaces on 0.6 acres of land in the heart of Uptown 17th Avenue SW, Calgary's premier urban retail district. The property is adjacent to, and will form part of, the Company's Mount Royal Village assembly, which will be in excess of 250,000 square feet on 3.5 acres of land when completed. The acquisition is subject to customary closing conditions and is expected to be completed in the third quarter.
On June 22, 2012, the Company acquired Place des Quatre-Bourgeois, a 242,500 square foot shopping centre well located in Québec City, Québec and situated on 16.5 acres of land. The centre's major tenants are IGA, Winners, Jean Coutu, Laurentian Bank, Dollarama and Nautilus Plus. The total purchase price of approximately $32.4 million including closing costs was satisfied by a combination of cash and the assumption of $16.6 million of fixed rate debt at 3.43% due August 2016. The property has potential for redevelopment.
On June 28, 2012, First Capital Realty completed the acquisition of 3080 Yonge Street, a 225,000 square foot mixed-use building with a 190-stall underground parking garage, located on the northwest corner of Yonge Street and Lawrence Avenue in midtown Toronto, Ontario, directly adjacent to the Lawrence subway and bus station and situated on 1.7 acres of land. The total purchase price of approximately $52.1 million including closing costs was satisfied by a combination of cash and the assumption of $27.7 million of fixed rate debt at 5.57% due June 1, 2017. The Company sees potential to enhance the retail offering in the building.
"We continue to strengthen our position and increase our investments in supply-constrained urban markets", said Dori Segal, President and Chief Executive Officer. "We remain committed to our strategy and are on track to complete our various development, redevelopment and expansion projects planned for the next 12 months."
On June 29, 2012, First Capital Realty reduced pricing on, and extended the maturity of, its $500 million senior unsecured revolving credit facility with its syndicate of lenders comprised of Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Montreal, Bank of America, National Bank of Canada and Alberta Treasury Branches. The facility will mature on June 30, 2014.
On June 27, 2012, DBRS confirmed the rating of First Capital Realty at BBB and changed the trend to Positive. DBRS reported that the trend change is supported by its expectation that the Company will continue to grow its portfolio of supermarket and drugstore anchored shopping centres in high barrier-to-entry major urban markets across Canada, and will remain committed to reducing the level of secured debt within its capital structure, while improving its key credit metrics to levels that are more in line with the BBB (high) rating category. This follows the Moody's Investors Service announcement on December 8, 2011 that it had affirmed the Baa3 senior unsecured debenture rating for First Capital Realty and revised the rating outlook to positive, from stable.
Since March 31, 2012, First Capital Realty has also completed or secured commitments for $52.3 million of mortgage financing. Of this total, $44.5 million consists of new 10-year mortgages with a weighted average interest rate of 3.69%, and the balance consists of an increase to an existing mortgage.
First Capital Realty also completed the following previously announced financing activities:
On April 4, 2012, the Company issued $175 million principal amount of
Series N senior unsecured debentures with a coupon interest rate of
4.50%, maturing on March 1, 2021.
On May 22, 2012, First Capital Realty issued $52.5 million aggregate
principal amount of 4.75% cashless convertible unsecured subordinated
debentures due July 31, 2019. These debentures are convertible at the
option of the holder into common shares of the Company at a conversion
price of $26.75 per common share until July 31, 2017, and $27.75 per
common share thereafter.
On June 1, 2012, the Company issued $100 million principal amount of
Series O senior unsecured debentures with a coupon interest rate of
4.43%, maturing January 31, 2022.
- On June 21, 2012, the Company repaid on maturity the $100 million principal amount outstanding of its 5.08% Series A senior unsecured debentures.
"We are pleased with the progress that the Company continues to make in extending the maturity profile of its debt and maintaining a strong liquidity position," said Karen Weaver, Executive Vice President and Chief Financial Officer. "We are committed to our long-term financing strategy and are working hard to increase our credit profile."
ABOUT FIRST CAPITAL REALTY (TSX: FCR)
First Capital Realty is Canada's leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres, located predominantly in growing urban markets. The Company currently owns interests in 165 properties, including eight under greenfield development, totalling approximately 23.3 million square feet of gross leasable area and three sites in the planning stage for future retail development.
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Forward Looking Statements
This press release contains forward-looking statements and information within the meaning of applicable securities law. Forward-looking statements can be identified by the expressions "expects", "believes", "estimates", "will" and similar expressions. The forward-looking statements are not historical facts but reflect the Company's current expectations regarding future results or events and are based on information currently available to Management. Certain material factors and assumptions were applied in providing these forward-looking statements.
Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that the actual results or developments will be consistent with these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the risks described in First Capital Realty's management discussion and analysis for the twelve month period ended December 31, 2011 and for the three-month period ended March 31, 2012 and the matters discussed under "Risk Factors" in the Company's current Annual Information Form. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. First Capital Realty undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities law.
All forward-looking statements in this press release are made as of the date hereof and are qualified by these cautionary statements.For further information:
regarding First Capital Realty:
Dori J. Segal, President & CEO, or
Karen H. Weaver, EVP & CFO
First Capital Realty Inc.
85 Hanna Avenue, Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114