Major shareholder of First Capital Realty presents value of First Capital Realty's properties under International Financial Reporting Standards



    TORONTO, March 26 /CNW/ - The major shareholder of First Capital Realty
Inc. ("First Capital Realty") (TSX:FCR), Gazit-Globe Inc. ("Gazit"), released
its financial results for the year ended December 31, 2006, including the
aggregate value of First Capital Realty's shopping centre portfolio and land
and shopping centres under development applying International Financial
Reporting Standards ("IFRS"). First Capital Realty today released the IFRS
values related to First Capital Realty's portfolio that have been incorporated
within the values that were released by Gazit.
    The most significant difference between IFRS and Canadian generally
accepted accounting principles ("Canadian GAAP") for this purpose is that
income-producing shopping centres ("Shopping Centres") are presented at fair
market value under IFRS as opposed to cost less accumulated amortization under
Canadian GAAP. In addition, the values of deferred costs, straight line rents
receivable and intangible assets and liabilities related to Shopping Centres
are not presented separately under IFRS as their values are incorporated
within the values for Shopping Centres. Land and shopping centres under
development ("Development Properties") are presented at cost under both IFRS
and Canadian GAAP. In addition, First Capital Realty's future income tax
liability increases as a result of the change in value of the Shopping Centres
under IFRS. This information is set out in the table below:

    

    $ millions                                       As at December 31, 2006
    -------------------------------------------------------------------------
    IFRS value of Shopping Centres and Development
     Properties                                              $ 3,413
    Canadian GAAP value of Shopping Centres and
     Development Properties (Note 1)                           2,705
    -------------------------------------------------------------------------
    Difference between IFRS value and Canadian
     GAAP value                                                  708
    Increase in future income taxes as a result of
     the difference in value                                    (123)
    -------------------------------------------------------------------------
    Difference in value, net of taxes                        $   585
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Note 1 - Includes the net book value of Shopping Centres, Development
    Properties, deferred costs, straight line rents receivable and intangible
    assets and liabilities.
    

    Of the total fair value of Shopping Centres, approximately 91% was
determined through independent appraisals which were completed by a nationally
recognized appraisal firm. The Shopping Centres were appraised on an
individual basis, with no portfolio effect considered. The remainder of the
values of the Shopping Centres, which consist primarily of recently completed
development projects and acquisitions, were based upon the costs of these
Shopping Centres to First Capital Realty. The total IFRS values of Shopping
Centres as at December 31, 2006, 2005 and 2004 were $3.26 billion,
$2.42 billion and $1.79 billion, respectively. The independent appraisals were
prepared so as to comply with the fair value model described in the IAS 40 -
Investment Property and the International Valuation Standard. The primary
method of appraisal was an income approach, since purchasers typically focus
on expected income. For each property, the appraisers conducted and placed
reliance upon a) a direct capitalization method, which is the appraisers'
estimate of the relationship between value and stabilized income, normally in
the first year and b) a discounted cash flow method, which is the appraisers'
estimate of the present value of future cash flows over a specified horizon,
including the potential proceeds from a deemed disposition. The determination
of these values required management and the appraisers to make estimates and
assumptions that affect the values presented, and actual values in a sales
transaction may differ from the values shown above. Based on these valuation
methods, the aggregate weighted average stabilized capitalization rate on the
Shopping Centres as at December 31, 2006 was 6.81%.

    ABOUT FIRST CAPITAL REALTY (TSX:FCR)
    First Capital Realty is Canada's leading owner, developer and operator of
supermarket anchored neighbourhood and community shopping centres, located
predominantly in growing metropolitan areas. The Company currently owns
interests in 159 properties, including 6 under development, with approximately
18.8 million square feet of gross leasable area. In addition, the Company owns
13.9 million shares of Equity One (approximately 19.1%), 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 332 properties totalling approximately
36.8 million square feet of gross leasable area.





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 Ave., Suite 400, Toronto,
Ontario, Canada, M6K 3S3, Tel: (416) 504-4114, Fax: (416) 941-1655,
www.firstcapitalrealty.ca


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