First Capital Realty announces possible dividend-in-kind transaction

    TORONTO, June 8 /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
that management has been considering, over the past while, First Capital
Realty's long term strategy for its indirect investment in Equity One.
Although the Board of Directors has not approved any particular transaction
relating to First Capital Realty's indirect interest in Equity One, management
expects to shortly seek approval of the Board of Directors to distribute its
interest in the Company's Canadian holding company that, indirectly, owns the
shares in Equity One (approximately 14.1 million shares, and including the
debt secured by such shares and including certain inter-company indebtedness
related thereto) by way of a special dividend-in-kind or other distribution to
First Capital Realty's shareholders.
    Based only on the market value of the Equity One shares on the New York
Stock Exchange on March 31, 2009, the amount of indebtedness secured by the
Company's Equity One shares on that date (and the amount of inter-company
indebtedness related thereto), the Canadian-US dollar exchange rate on that
same date and the estimated value of certain other assets and liabilities
(including tax liabilities) as at that date, management believes that such a
dividend-in-kind would have had a calculated value of approximately $0.30 to
$0.40 per First Capital Realty common share had the dividend-in-kind been made
on March 31, 2009. Given the changes in the markets since March 31, 2009, the
calculation will necessarily fluctuate subsequent to that date.
    If the Board of Directors approves any such transaction, First Capital
Realty will make timely public announcement of that fact and the holding
company will file a prospectus in each of the provinces of Canada to qualify
the distribution of the dividend-in-kind shares. Application will also be made
to list such shares on a Canadian stock exchange. There can be no assurance
that any such transaction will ultimately be approved, or if approved, that it
will be completed as any transaction of this kind would be subject to
regulatory approval, third party consents and market conditions. There can
also be no assurance as to the actual value of any dividend-in-kind

    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 174 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 indirectly owns 14.1 million shares of Equity One (approximately
16.4%), 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 contains forward-looking statements and information
within the meaning of applicable securities legislation. 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. 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 any proposal for a dividend-in-kind (or similar or other)
transaction involving the Company's indirect interest in Equity One will be
made, or if made, will be approved by the Company's Board of Directors.
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 June 8, 2009.

For further information:

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

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