First Capital Realty announces continued solid Q1 financial results



    TORONTO, May 11 /CNW/ - First Capital Realty Inc. ("First Capital
Realty") (TSX:FCR) Canada's leading owner, developer and operator of
supermarket and drugstore-anchored neighbourhood and community shopping
centres, located predominantly in growing metropolitan areas, announced today
solid financial results for the first quarter ended March 31, 2009.

    
    FIRST QUARTER 2009 HIGHLIGHTS:

    -------------------------------------------------------------------------
    ($ millions, except                                           Percentage
     per share amounts)                31 Mar 2009  31 Mar 2008     Change
    -------------------------------------------------------------------------
    Property rental revenue            $     110.3  $     101.8        8.3%
    -------------------------------------------------------------------------
    Net operating income (NOI)         $      68.3  $      63.3(2)     7.9%
    -------------------------------------------------------------------------
    Funds from operations (FFO)(1)     $      38.2  $      34.5(2)    10.7%
    -------------------------------------------------------------------------
    FFO per diluted share(1)           $      0.42  $      0.42(2)       -
    -------------------------------------------------------------------------
    Weighted average diluted shares
     for FFO (000's)                        91,172       81,363       12.1%
    -------------------------------------------------------------------------
    Adjusted funds from operations
     (AFFO)                            $      36.9  $      31.6(2)    16.8%
    -------------------------------------------------------------------------
    AFFO per diluted share             $      0.37  $      0.35(2)     5.7%
    -------------------------------------------------------------------------
    Weighted average diluted shares
     for AFFO (000's)                       99,552       89,989       10.6%
    -------------------------------------------------------------------------
    Enterprise value                   $     3,900  $     4,200
    -------------------------------------------------------------------------
    Debt to aggregate assets                 54.5%        53.7%
    -------------------------------------------------------------------------
    Debt to total market capitalization      58.1%        48.0%
    -------------------------------------------------------------------------
    (1) See Funds from Operations section of this press release.
    (2) Comparative amounts have been restated for a change in accounting
        standards. See "Financial Highlights".

    OPERATIONS HIGHLIGHTS:

    -   Invested $45 million in acquisitions, development activities and
        property improvements
    -   Completed 158,000 square feet of gross leasable area from
        acquisitions, development and redevelopment
    -   Acquired two land parcels adjacent to existing properties comprising
        0.7 acres of commercial land for future development
    -   5.7% same property NOI growth; 2.2% same property NOI growth
        excluding redevelopment and expansion
    -   9.9% increase on rate per square foot on 269,000 square feet of
        renewal leases
    -   Occupancy of 96% which compares to 96.4% at December 31, 2008.
        Vacancy includes 1% of space held for redevelopment
    -   Gross new leasing totalled 274,000 square feet including development
        and redevelopment coming on line; lease closures totalled 281,000
        square feet and closures for redevelopment totalled 86,000 square
        feet
    -   Average lease rate per occupied square foot increased by 4.1% to
        $15.24 at March 31, 2009 compared to $14.64 in the prior year first
        quarter
    -   Completed new leasing on existing space totalling 150,000 square feet
        at an average rate of $17.36 per square foot
    -   Lease rates on openings and redevelopment coming on line increased by
        21.7% versus all lease closures.
    

    "The solid operating performance of our properties positively reflects
our continued focus on operations, the defensive nature of our asset class,
and our strong urban locations", said Dori J. Segal, President & C.E.O.,
"Going forward, we continue to prudently evaluate selective acquisitions in
our trade areas that are complementary to our portfolio while investing in
value-added development and re-development activities."

    FINANCIAL HIGHLIGHTS

    Comparative amounts have been restated for a change in accounting
standards with respect to goodwill and intangible assets. This change resulted
in an increase in FFO for the first quarter of 2008 of $0.2 million and nil
change in net income.
    FFO and AFFO presented herein are key financial measures used by the real
estate industry to measure and compare the operating performance of real
estate organizations. FFO and AFFO are supplemental non-GAAP financial
measures and a complete reconciliation containing adjustments from GAAP net
income to FFO and AFFO is included in this press release.

    Funds from Operations

    Funds from operations totalled $38.2 million or $0.42 per diluted common
share for the three months ended March 31, 2009 compared to $34.5 million or
$0.42 per diluted share in the same period for the prior year.
    The increase in FFO was primarily due to an increase in net operating
income resulting from same property NOI growth as well as acquisitions and
development coming on line partially offset by increased interest expense and
decreased interest and other income.
    FFO for the first quarter of 2009 included non-recurring items totalling
$0.02 per diluted share consisting primarily of non-recurring FFO from Equity
One. The first quarter of 2008 also included non-recurring items totalling
$0.02 per diluted share which consisted primarily of net gains on land sales.

    Adjusted Funds from Operations

    Management views AFFO as an effective measure of cash generated from
operations. AFFO for the three months ended March 31, 2009 totalled $36.9
million or $0.37 per diluted common share compared to $31.6 million or $0.35
per diluted common share in the prior year. AFFO is calculated by adjusting
FFO for straight-line and market rent adjustments, non-cash compensation
expenses, interest payable in shares, non-cash gains or losses on debt, hedges
and land sales and actual costs incurred for capital expenditures and leasing
costs for maintaining shopping centre infrastructure and current lease
revenues. The Company's proportionate share of Equity One FFO is excluded and
only the regular cash dividends are included in AFFO. The weighted average
diluted shares outstanding for AFFO is adjusted to assume conversion of the
outstanding convertible debentures.

    
    Net Income

    -------------------------------------------------------------------------
    ($ thousands, except per share amounts)       Three months ended Mar. 31
    -------------------------------------------------------------------------
                                                         2009         2008
    -------------------------------------------------------------------------
    Net income                                        $ 9,082      $ 8,382(1)
    -------------------------------------------------------------------------
    Earnings per share (diluted)                      $  0.10      $  0.10(1)
    -------------------------------------------------------------------------
    Weighted average common shares - diluted (000's)   91,172       81,363
    -------------------------------------------------------------------------
    (1) Comparative amounts have been restated for a change in accounting
        standards.
    

    Net income for the three months ended March 31, 2009 was $9.1 million or
$0.10 per share (basic and diluted) compared to $8.4 million or $0.10 per
share (basic and diluted) for the prior year comparable period. The increase
in net income is primarily due to an increase in NOI resulting from
development projects coming on line, same property NOI growth and increased
equity income from Equity One, offset by an increased amortization expense and
decreased interest and other income. Interest and other income for the three
months ended March 31, 2008 included $1.3 million in gains on the sale of
land. In addition, there was an increase in the basic and weighted average
diluted shares outstanding compared to the same prior year period.

    DEVELOPMENT AND ACQUISITION HIGHLIGHTS

    During the first quarter of 2009, the Company acquired a 27,000 square
foot retail property in Toronto, Ontario. The Company also acquired two land
parcels adjacent to existing properties comprising a total of 0.7 acres of
commercial land for future development. Total investment in the retail
property and land sites amounted to $7.2 million.
    Development of 87,000 square feet was brought on line during the first
quarter with 81,000 square feet leased at an average rate of $19.16 per square
foot.
    The Company also invested $38.0 million during the first quarter in its
active development projects and improvements to existing properties.

    OPERATING HIGHLIGHTS

    Net operating income for the three months ended March 31, 2009 totalled
$68.3 million, compared to $63.3 million in the first quarter of 2008, an
increase of $5.0 million or 7.9%. Development and redevelopment in the first
quarter of 2009 contributed $4.9 million to quarterly net operating income.
Acquisitions in the first quarter of 2009, combined with the full impact of
acquisitions in the prior year, contributed a further $0.8. Same property net
operating income increased 5.7%, generating growth of $3.4 million in the
first quarter 2009.
    Gross new leasing totalled 274,000 square feet including development and
redevelopment coming on line. Lease rates on openings, and redevelopment
coming on line increased by 21.7% versus all lease closures. The Company
achieved a 9.9% increase on 269,000 square feet of renewal leases over the
expiring lease rates.
    The average rate per occupied square foot at March 31, 2009 increased to
$15.24. This compares to an average rate of $15.17 per square foot at December
31, 2008.
    Portfolio occupancy at March 31, 2009 of 96% compares to 96.4% at
December 31, 2008 and 95.5% at March 31, 2008. Closures for redevelopment
totalled 86,000 square feet for the first quarter of 2009 providing potential
for future income growth through leasing and redevelopment activities.

    FINANCING AND CAPITAL MARKET HIGHLIGHTS

    
    For the period ending March 31, 2009, First Capital Realty closed on the
following financings:

    -   A three year, $450 million secured revolving credit facility with a
        syndicate of ten banks jointly led by RBC Capital Markets, TD
        Securities, and BMO Capital Markets. The new facility was used to
        replace the Company's existing three year $350 million Senior
        Unsecured Revolving Credit Facility.

    -   A three year, $75 million secured revolving credit facility with the
        Bank of Nova Scotia maturing January 2012.

    -   Five secured financing transactions for gross proceeds of $80.5
        million at a weighted average interest rate of 5.9% and a weighted
        average term to maturity of 7.05 years.

    First Capital Realty issued 2.1 million common shares for net proceeds of
$35.8 million in the quarter primarily from the following activities:

    -   On February 17, 2009 the Company issued 1.4 million common shares to
        acquire 1.8 million shares of Allied Properties REIT;

    -   On March 31, 2009, the Company issued 434,000 common shares at a net
        price of $14.66 as payment of the interest due to holders of the
        5.50% convertible debentures. It is the current intention of the
        Company to continue to satisfy its obligations to pay principal and
        interest on these convertible debentures by the issuance of common
        shares.

    -   Convertible debentures totalling $6.3 million in principal were
        converted at the option of the holder resulting in the issuance of
        approximately 232,000 common shares

    SUBSEQUENT EVENT HIGHLIGHTS

    Financing Completed

    The Company completed one secured financing transaction for gross proceeds
of $10.5 million at an interest rate of 6.4% and a term to maturity of 10
years.

    Acquisitions

    -   On April 15th, 2009 the Company acquired an 8.44 acre piece of land
        for future development. The land is located on Laird Drive in
        Toronto, Ontario. The purchase price of $7.7 million, including
        closing costs, was satisfied in cash.

    -   On May 12, 2009 the Company expects to close the acquisition of an
        11,000 square foot building leased to Shoppers Drug Mart located on
        St-Denis Street, in Montreal, QC. The purchase price of $3.5 million,
        including closing costs, will be satisfied in cash.
    

    Quarterly Dividend

    The Company announced that it will pay a second quarter dividend of $0.32
per common share on July 9, 2009 to shareholders of record on June 26, 2009.

    Equity One

    Subsequent to quarter end, Equity One issued and sold approximately 6.7
million common shares of its common stock in an underwritten public offering
at a price of USD$14.30 per share that the Company did not participate in.
Concurrently with the public offering, Equity One also issued and sold
approximately 2.5 million shares of its common stock to an affiliate of its
largest shareholder, Gazit-Globe, Ltd., at the public offering price in a
private placement. The public offering and the concurrent private placement
generated net proceeds of approximately USD$126.2 million. As a result, the
Company's share in Equity One was diluted to 16.4% from 18.4%.

    OUTLOOK

    Over the past several years First Capital Realty has made significant
progress in growing its business and generating accretive growth in funds from
operations while enhancing the quality of its portfolio.
    The current environment remains extremely competitive, however the
competition seems to have shifted to the capital side of the Company's
business. Both debt and equity markets are challenging relative to pricing
currently being asked by the property vendors. The Company will continue to
selectively acquire properties that are well-located and of high quality,
where they add strategic value and/or operating synergies provided they will
be accretive to FFO over the long term, and equity and debt capital can be
priced and committed to maintain conservative leverage.
    Development and redevelopment activities continue to provide the Company
with opportunities to grow within its existing portfolio of assets. Once
completed, these activities typically generate higher returns on investment.
    With respect to acquisitions of both income-producing and development
properties, the Company will continue to focus on maintaining the
sustainability and growth potential of rental income to ensure that among
other things, refinancing risk is minimized. This is particularly important in
the current environment of increasing cost and scarcity of capital.
    Specifically, Management will focus on the following four areas to
achieve its objectives in 2009:

    
    -   same property net operating income growth, taking into account
        maintaining high occupancy;
    -   development and redevelopment activities;
    -   increasing efficiency and productivity of operations; and
    -   careful capital allocation to decrease dependence on capital markets.
    

    Overall, Management is confident that the quality of the Company's
balance sheet, the defensive nature of its assets and operations will continue
to serve it well in the current environment.

    
    2009 GUIDANCE

    -------------------------------------------------------------------------
    (per share amounts, except for
    projected FFO and shares outstanding)                     Low       High
    -------------------------------------------------------------------------
                     FFO Guidance
    -------------------------------------------------------------------------
    Projected diluted net income                            $0.41      $0.43
    Adjustments
      Projected FFO from Equity One                          0.22       0.24
      Projected equity income from Equity One               (0.14)     (0.16)
      Projected amortization and future income taxes         1.14       1.19
    -------------------------------------------------------------------------
    Projected FFO per share                                 $1.63      $1.70
    -------------------------------------------------------------------------
    Projected FFO                                         $150.2M    $156.8M
    -------------------------------------------------------------------------
    Projected weighted average shares outstanding for
     per share FFO calculations                                  92.4M
    -------------------------------------------------------------------------
                     AFFO Guidance
    -------------------------------------------------------------------------
    Projected FFO                                         $150.2M    $156.8M
    -------------------------------------------------------------------------
    Projected weighted average shares outstanding for
     per share AFFO calculations (including conversion
     of convertible debentures)                                 100.8M
    -------------------------------------------------------------------------
    Projected FFO (using weighted average
     AFFO shares outstanding)                               $1.49      $1.56
      Projected dividend income - return of capital portion  0.03       0.03
      Projected dividends from Equity One net of FFO
       from Equity One                                       0.01      (0.01)
      Projected revenue sustaining capital expenditures     (0.12)     (0.10)
      Projected non cash items, net                          0.08       0.09
    -------------------------------------------------------------------------
    Projected AFFO                                          $1.49      $1.57
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Projections involve numerous assumptions such as rental income (including
assumptions on timing of lease-up, development coming on line and levels of
percentage rent), interest rates, tenant defaults, the U.S. - Canadian foreign
currency exchange rate, corporate expenses, level and timing of acquisitions
of income-producing properties, the Company's share price, number of shares
outstanding and numerous other factors. Not all factors which affect our range
of projected funds from operations and adjusted funds from operations are
determinable at this time and actual results may vary from the projected
results in a material respect, and may be above or below the range presented
in a material respect.

    
    Guidance is based on specific assumptions including:

    -   Same property NOI growth of 1.5 - 2.25% (excluding redevelopment and
        expansion);
    -   Development, redevelopment and expansion coming on-line of 600,000 -
        700,000 square feet with approximate gross book value of $175 to
        $200 million;
    -   Income-producing property acquisitions totalling $27 million;
    -   Equity One FFO is based on publicly available information and
        guidance adjusted to Canadian GAAP;
    -   Current dividend income from securities held is based on publicly
        available information;
    -   Current interest rate environment in Canada and the United States;
    -   Current US-Canadian foreign exchange rate;
    -   Current income tax rates;
    

    The ranges presented represent Management's estimate of results based
upon these assumptions as of the date of this press release. The purpose of
the Company's guidance is to provide readers with Management's view as to the
expected financial performance of the Company for 2009, using factors that are
commonly accepted and viewed as meaningful indicators of financial performance
in the real estate industry.
    Readers should refer to the section below titled "Forward Looking
Statements" for important information relating to our guidance, including risk
factors.

    MANAGEMENT CONFERENCE CALL AND WEBCAST

    Management will hold a conference call on Tuesday, May 12, 2009 at 1:00
p.m. EST. First quarter financial results will be released prior to the call
and made available on First Capital Realty's website in the Investor
Relations, Conference Calls section. The Supplemental Package link will be on
our Home Page at www.firstcapitalrealty.ca or click on Investor Relations,
Downloads. To access the conference call webcast and slide presentation, go to
First Capital Realty's website at www.firstcapitalrealty.ca and click on the
link for the webcast at the top of our Home Page. The webcast will be archived
on our Home Page for 30 days and can be accessed, thereafter, in our
Conference Calls section of our website.
    You may participate in the live conference toll free at 866-299-6657 or
at 416-641-6135. To ensure your participation, please call five minutes prior
to the scheduled start of the call. The call will be archived through May 19,
2009 and can be accessed by dialing toll free 800-408-3053 or 416-695-5800
with access code 4005608.
    Management's presentation will be followed by a question and answer
period. To ask a question, press '1' followed by '4' on a touch-tone phone.
The conference call coordinator is immediately notified of all requests in the
order in which they are made, and will introduce each questioner. To cancel
your request, press the pound key 'No.'. If you hang up, you can reconnect by
dialing 866-299-6657 or 416-641-6135. For assistance at any point during the
call, press '(*)0'.

    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 metropolitan areas. The Company
currently owns interests in 173 properties, including four under development,
totalling approximately 20.2 million square feet of gross leasable area and 7
land sites in the planning stage for future retail development. In addition,
the Company owns 14.1 million shares of Equity One (approximately 18.4%), one
of the largest shopping centre REITS in the southern U.S., that trades on the
New York Stock Exchange under the ticker symbol EQY. Including its investment
in Equity One, the Company has interests in 363 properties totalling
approximately 40.7 million square feet of gross leasable area.

    Forward Looking Statements

    This press release and in particular the "Outlook" section, contains
forward-looking statements and information within the meaning of applicable
securities legislation. Forward-looking statements can generally be identified
by the expressions "anticipate", "believe", "plan", "estimate", "expect",
"intend", "outlook", "objective", "may", "will", "should", "plan", "continue"
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. All forward-looking statements in this press
release are qualified by these cautionary statements.
    Management believes that the expectations reflected in forward-looking
statements are based upon reasonable assumptions; however, Management can give
no assurance that actual results 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 matters discussed under
"Risks and Uncertainties" in the Company's MD&A for the year ended December
31st, 2008.
    Factors that could cause actual results or events to differ materially
from those expressed, implied or projected by forward-looking statements in
addition to those described in the "Risk and Uncertainties" section include,
but are not limited to, general economic conditions, the availability of new
competitive supply of retail properties which may become available either
through construction or sublease, First Capital Realty's ability to maintain
occupancy and to lease or re-lease space at current or anticipated rents,
tenant bankruptcies, the relative illiquidity of real-property, unexpected
costs or liabilities related to acquisitions, construction, environmental
matters, legal matters, reliance on key personnel, financial difficulties and
defaults, changes in interest rates and credit spreads, changes in the
U.S.-Canadian foreign currency exchange rate, changes in operating costs,
First Capital Realty's ability to obtain insurance coverage at a reasonable
cost and the availability of financing. The assumptions underlying the
Company's forward-looking statements contained in the "Outlook" section of
this press release include that consumer demand will remain stable,
demographic trends will continue and there will continue to be barriers to
entry in the markets in which the Company operates. The assumptions used in
developing the Company's guidance are set out in the "Outlook" section of this
press release.
    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 security laws.
    These forward-looking statements are made as of May 12, 2009.

    NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES

    Funds from Operations and Adjusted Funds from Operations

    In Management's view, funds from operations ("FFO") and adjusted funds
from operations ("AFFO") are commonly accepted and meaningful indicators of
financial performance in the real estate industry. First Capital Realty
believes that financial analysts, investors and shareholders are better served
when the clear presentation of comparable period operating results generated
from FFO and AFFO disclosures supplement Canadian generally accepted
accounting principles ("GAAP") disclosure. These measures are the primary
methods used in analyzing real estate organizations in Canada. The Company's
method of calculating FFO and AFFO may be different from methods used by other
corporations or REITs (real estate investment trusts) and accordingly, may not
be comparable to such other corporations or REITs. FFO and AFFO are presented
to assist investors in analyzing the Company's performance. FFO and AFFO: (i)
do not represent cash flow from operating activities as defined by GAAP, (ii)
are not indicative of cash available to fund all liquidity requirements,
including payment of dividends and capital for growth and (iii) are not to be
considered as alternatives to GAAP net income for the purpose of evaluating
operating performance.

    Funds from Operations - RealPac Recommendations

    First Capital Realty calculates FFO in accordance with the
recommendations of the Real Property Association of Canada ("RealPac"). The
definition is meant to standardize the calculation and disclosure of FFO
across real estate entities in Canada, modelled on the definition adopted by
the National Association of Real Estate Investment Trusts ("NAREIT") in the
United States. FFO as defined by RealPac differs in two respects from the
definition adopted by NAREIT. Under the RealPac definition, future income
taxes are excluded from FFO, whereas under the NAREIT definition, they are
included. In addition, impairment losses on depreciable assets are excluded
from the RealPac FFO definition, whereas the NAREIT definition includes them.
As a result, when calculating FFO, the Company adjusts the FFO reported by
Equity One to comply with the RealPac definition, when appropriate.
    FFO is considered a meaningful additional measure of operating
performance, as it excludes amortization of real estate assets. Amortization
expense assumes that the value of real estate assets diminishes predictably
over time, which is clearly not a valid assumption. FFO also adjusts for
certain items included in GAAP net income that may not be the most appropriate
determinants of the long-term operating performance of the Company including
gains and losses on depreciable real estate assets.

    Net Operating Income

    Net operating income ("NOI") is defined as property rental revenue less
property operating costs. In Management's opinion, net operating income is
useful in analyzing the operating performance of the Company's shopping centre
portfolio. Net operating income is not a measure defined by GAAP and there is
no standard definition of net operating income. As a result, net operating
income may not be comparable with similar measures presented by other
entities. Net operating income is not to be construed as an alternative to net
income or cash flow from operating activities determined in accordance with
GAAP.


    
    FIRST CAPITAL REALTY INC.

    CONSOLIDATED BALANCE SHEETS

    -------------------------------------------------------------------------
    (unaudited)                                        March 31  December 31
    (thousands of dollars)                                 2009       2008(1)
    -------------------------------------------------------------------------
                                                                   (restated)
    ASSETS
    Real Estate Investments
    Shopping centres                                $ 3,040,191  $ 3,040,257
    Land and shopping centres under development         304,965      281,959
    Deferred leasing costs                               16,240       16,146
    Intangible assets                                    27,037       29,312
    -------------------------------------------------------------------------
                                                      3,388,433    3,367,674
    Investment in Equity One, Inc.                      237,780      227,259
    Loans, mortgages and other real estate assets        53,622       32,480
    -------------------------------------------------------------------------
                                                      3,679,835    3,627,413
    Other assets                                         30,655       27,448
    Amounts receivable                                   50,705       45,501
    Cash and cash equivalents                             8,080        7,263
    Future income tax assets                             12,032       11,977
    -------------------------------------------------------------------------
                                                    $ 3,781,307  $ 3,719,602
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Mortgages, loans and credit facilities          $ 1,657,535  $ 1,573,530
    Accounts payable and other liabilities              127,837      166,507
    Intangible liabilities                               16,481       17,264
    Senior unsecured debentures                         593,514      593,288
    Convertible debentures                              212,698      218,247
    Future income tax liabilities                        58,501       55,620
    -------------------------------------------------------------------------
                                                      2,666,566    2,624,456
    SHAREHOLDERS' EQUITY                              1,114,741    1,095,146
    -------------------------------------------------------------------------
                                                    $ 3,781,307  $ 3,719,602
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Prior year comparative figures have been restated for a change in
        accounting standards.


    FIRST CAPITAL REALTY INC.

    CONSOLIDATED STATEMENTS OF EARNINGS

    -------------------------------------------------------------------------
                                               Three months ended March 31
    -------------------------------------------------------------------------
    (unaudited)
    (thousands of dollars, except per share amounts)       2009       2008(1)
    -------------------------------------------------------------------------
                                                                   (restated)
    REVENUE
    Property rental revenue                         $   110,343  $   101,762
    Interest and other income                               752        1,663
    -------------------------------------------------------------------------
                                                        111,095      103,425
    -------------------------------------------------------------------------
    EXPENSES
    Property operating costs                             42,043       38,463
    Interest expense                                     30,279       29,615
    Amortization
      Shopping centres                                   20,550       18,113
      Deferred leasing costs                                929          849
      Intangible assets                                   2,107        2,213
      Deferred financing fees                               328          204
      Other assets                                          396          273
    Corporate expenses                                    5,449        5,875
    -------------------------------------------------------------------------
                                                        102,081       95,605
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Equity income from Equity One, Inc.                   4,030        3,810
    -------------------------------------------------------------------------
    Income before income taxes                           13,044       11,630
    -------------------------------------------------------------------------
    Income taxes
      Current                                             1,015          642
      Future                                              2,947        2,606
    -------------------------------------------------------------------------
                                                          3,962        3,248
    -------------------------------------------------------------------------
    Net income                                      $     9,082  $     8,382
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per common share, basic and diluted    $      0.10  $      0.10
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Prior year comparative figures have been restated for a change in
        accounting standards.


    FIRST CAPITAL REALTY INC.

    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

    -------------------------------------------------------------------------
                                               Three months ended March 31
    -------------------------------------------------------------------------
    (unaudited)
    (thousands of dollars)                                 2009       2008(1)
    -------------------------------------------------------------------------
                                                                   (restated)

    NET INCOME                                      $     9,082  $     8,382
    -------------------------------------------------------------------------

    OTHER COMPREHENSIVE INCOME (LOSS)

    Unrealized foreign currency gain on translating
     self-sustaining foreign operations
      Gains arising during the period                     1,658        1,594

    Other comprehensive gains (losses) of Equity
     One, Inc.
      Gains (losses) arising during the period            3,365       (1,274)

    Unrealized gains (losses) on cash flow hedges
     of interest rates
      Unrealized gains (losses) arising during
       the period                                           421       (1,875)

    Change in cumulative unrealized losses on
     available-for-sale marketable securities
      Unrealized losses arising during the period        (2,309)        (103)
      Reclassification adjustments for losses
       included in net income                                 -           52
    -------------------------------------------------------------------------
                                                         (2,309)         (51)
    -------------------------------------------------------------------------
    Other comprehensive income (loss) before
     income taxes                                         3,135       (1,606)
    Future income tax recovery                              233          676
    -------------------------------------------------------------------------
    Other comprehensive income (loss)                     3,368         (930)
    -------------------------------------------------------------------------

    COMPREHENSIVE INCOME                            $    12,450  $     7,452
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Prior year comparative figures have been restated for a change in
        accounting standards.



    FIRST CAPITAL REALTY INC.

    CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS

    -------------------------------------------------------------------------
                                               Three months ended March 31
    -------------------------------------------------------------------------
    (thousands of dollars, except per share amounts)       2009       2008(1)
    -------------------------------------------------------------------------
                                                                   (restated)

    Net income for the period                       $     9,082  $     8,382

    Add (deduct):
      Amortization of shopping centres, deferred
       costs and intangible assets                       23,586       21,175
      Gain on disposition of income-producing
       shopping centres                                    (211)           -
      Equity income from Equity One                      (4,030)      (3,810)
      Funds from operations from Equity One               6,869        6,182
      Future income taxes                                 2,947        2,606
    -------------------------------------------------------------------------
    Funds from operations ("FFO")                   $    38,243  $    34,535
    -------------------------------------------------------------------------
    FFO per diluted share                           $      0.42  $      0.42
    -------------------------------------------------------------------------
    Weighted average diluted shares - FFO            91,172,216   81,363,323
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF ADJUSTED FUNDS FROM OPERATIONS

    -------------------------------------------------------------------------
                                                Three months ended March 31
    -------------------------------------------------------------------------
    (thousands of dollars, except per share amounts)       2009       2008(1)
    -------------------------------------------------------------------------

    FFO                                             $    38,243  $    34,535
      Add / (deduct):
      Rental revenue recorded on a straight-line
       basis and market rent adjustments                 (1,690)      (1,886)
      Non-cash compensation expense                         872          965
      Interest expense payable in shares                  3,458        3,480
      Change in cumulative unrealized gain on
       marketable securities                             (1,269)          (9)
      Dividend income - return of capital portion           636            -
      Non-cash loss on extinguishment of debt               738            -
      Funds from operations from Equity One              (6,869)      (6,182)
      Dividends from Equity One (regular)                 5,328        4,306
      Gain on disposition of land                          (118)      (1,275)
      Revenue sustaining capital expenditures
       and leasing costs                                 (2,427)      (2,333)
    -------------------------------------------------------------------------
    Adjusted funds from operations ("AFFO")         $    36,902  $    31,601
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    AFFO per diluted share                          $      0.37  $      0.35
    -------------------------------------------------------------------------
    Weighted average diluted shares for AFFO(2)      99,552,226   89,989,640
    -------------------------------------------------------------------------
    (1) Prior year comparative figures have been restated for a change in
        accounting standards.
    (2) Includes the weighted average outstanding shares that would result
        from the conversion of the convertible debentures


    FIRST CAPITAL REALTY INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS

    -------------------------------------------------------------------------
                                                Three months ended March 31
    -------------------------------------------------------------------------
    (unaudited)
    (thousands of dollars)                                 2009       2008(1)
    -------------------------------------------------------------------------
    CASH FLOW PROVIDED BY (USED IN):
    OPERATING ACTIVITIES
    Net income                                      $     9,082  $     8,382
    Items not affecting cash
      Amortization                                       24,310       21,652
      Amortization of above- and below-market leases       (713)        (544)
      Rent revenue recognized on a straight-line basis     (977)      (1,342)
      Gain on disposition of income-producing property     (211)           -
      Gains on disposition of land                         (118)      (1,275)
      Realized losses on sale of marketable securities      697           52
      Change in cumulative unrealized losses (gains)
       on marketable securities                          (1,269)          (9)
      Loss on settlement of debt                            738            -
      Non-cash compensation expense                         872          965
      Interest paid in excess of effective interest
       on assumed mortgages                                (320)        (465)
      Effective interest rate in excess of coupon
       rate on senior unsecured and convertible
       debentures                                           218          207
      Convertible debenture interest paid in common
       shares                                             6,360        6,483
      Other non-cash interest expense                       652          656
      Equity income from Equity One, Inc.                (4,030)      (3,810)
      Future income taxes                                 2,947        2,606
    Deferred leasing costs                               (1,025)        (958)
    Dividends received from Equity One, Inc.              5,328        4,306
    Net change in non-cash operating items              (23,307)     (15,527)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash provided by operating activities                19,234       21,379
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Acquisition of shopping centres                      (5,685)      (6,648)
    Acquisition of land for development                  (1,399)     (11,017)
    Proceeds from disposition of land held for
     development                                             70            -
    Expenditures on shopping centres                     (6,183)      (4,191)
    Expenditures on land and shopping centres under
     development                                        (30,833)     (26,513)
    Changes in accounts payable and accrued liabilities
     related to expenditures on land and shopping
     centres under development                          (18,559)       2,371
    Increase in loans and mortgages receivable             (693)        (219)
    Investment in marketable securities                  (2,687)        (172)
    Return of capital from investment in marketable
     securities                                             636            -
    Proceeds from disposition of marketable securities    3,295            -
    -------------------------------------------------------------------------
    Cash used in investing activities                   (62,038)     (46,389)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Mortgage financings, loans and credit facilities
      Borrowings, net of financing costs                267,843       87,390
      Principal instalment payments                     (10,078)      (9,361)
      Other repayments on maturity                     (186,186)    (118,361)
    Issuance of common shares, net of issue costs           (60)     104,662
    Payment of dividends                                (29,103)      (5,849)
    -------------------------------------------------------------------------
    Cash provided by financing activities                42,416       58,481
    -------------------------------------------------------------------------
    Effect of currency rate movement on cash balances     1,205          (26)
    -------------------------------------------------------------------------
    Increase in cash and cash equivalents                   817       33,445
    Cash and cash equivalents, beginning of the period    7,263       10,451
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of the period    $     8,080  $    43,896
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    SUPPLEMENTARY INFORMATION
    Cash income taxes paid                          $       458  $       313
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash interest paid                              $    30,587  $    30,395
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Prior year comparative figures have been restated for a change in
        accounting standards.
    





For further information:

For further information: Dori J. Segal, President & C.E.O., or Karen H.
Weaver, C.F.O., First Capital Realty Inc., 85 Hanna Avenue, Suite 400,
Toronto, Ontario, Canada, M6K 3S3, Tel: (416) 504-4114, Fax: (416) 941-1655,
www.firstcapitalrealty.ca


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890