Toronto, Ontario (December 21, 2011) – First Capital Realty Inc. (“First Capital Realty” or the “Company”) (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, today announced that it has increased its syndicated senior unsecured revolving credit facility by $75 million to $500 million. The Company also announced that it has completed, or secured commitments for, mortgage financing totaling $118.4 million, and has completed $67 million of additional property transactions.
Today, First Capital Realty increased its senior unsecured revolving credit facility from $425 million to $500 million with a 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.
First Capital Realty has also completed or secured commitments for $118.4 million of mortgage financing. Of this total, $95.6 million consists of new 10-year mortgages with a weighted average interest rate of 3.95%. The balance, totaling $22.8 million, consists of increases to existing mortgages and has a weighted average interest rate of 3.48%.
On November 25, 2011, the Company temporarily reduced the conversion price on the entire $126.6 million principal amount then outstanding of its 5.50% convertible unsecured subordinated debentures, class CDN and class US (TSX: FCR.DB.A and FCR.DB.B) (the “5.50% Debentures”) from $16.425 to $16.30 for a period ending at 5:00 p.m. (Toronto time) on December 30, 2011. To date, approximately $13.5 million in principal amount of 5.50% Debentures have been converted into approximately 828,400 common shares of the Company pursuant to this temporary reduction in conversion price.
On December 1, 2011, the Company repaid the entire $99.9 million principal amount outstanding of its 5.49% Series C senior unsecured debentures.
On December 8, 2011, Moody’s Investors Service announced that it has affirmed the Baa3 senior unsecured debenture rating for First Capital Realty and revised the rating outlook to positive, from stable. According to Moody’s, the revision to a positive outlook reflects Moody’s expectation that First Capital Realty will continue to steadily grow its shopping center franchise throughout Canada’s major markets while improving its financial profile with key metrics such as secured debt, unencumbered assets and fixed charge coverage moving solidly into the mid-Baa range.
On December 15, 2011, First Capital Realty announced that it closed its public offering of $50 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures due March 31, 2018. These debentures are convertible at the option of the holder into common shares of the Company at a conversion price of $23.25 per common share.
“We are very pleased to continue to prudently fund our investment activities using various sources of financing,” said Karen H. Weaver, Executive Vice President and Chief Financial Officer of First Capital Realty. “The additional funds, together with our existing revolving credit facilities, provide us with the financial flexibility to continue to pursue our business strategy and to fund accretive property investments. Notwithstanding our increased activity in the mortgage market in recent weeks, the Company remains committed to unsecured financing and has unencumbered assets of approximately $2.5 billion.”
Recent Property Transactions
On December 12, 2011, First Capital Realty acquired Mount Royal Village in Calgary, Alberta, a 118,000 square foot mixed-use office and retail shopping centre anchored by London Drugs and located in the heart of Uptown 17th Avenue SW, Calgary’s premier urban retail district. The purchase price of approximately $35.1 million (including closing costs) was satisfied in cash.
First Capital Realty also acquired the following additional space adjacent to two existing shopping centres, adding a total of 48,000 square feet on 2.1 acres of land. On November 2, 2011, First Capital Realty acquired a 4,000 square foot mixed-use building adjacent to the Company’s Shops at King Liberty at a total cost of $1 million. On December 15, 2011, the Company acquired McKenzie Professional Centre in Victoria, British Columbia, a 44,000 square foot mixed-use centre adjacent to Tuscany Village, a Thrifty Foods anchored shopping centre which First Capital Realty acquired in 2010. The purchase price of approximately $12.8 million (including closing costs) was satisfied in cash.
The Company has also acquired 0.98 acres of land for future development adjacent to an existing shopping centre at a total cost of $1 million.
Through its Main and Main Developments joint venture, First Capital Realty has acquired interests in development land parcels comprising 0.54 acres in Toronto, Ontario for future development. Total expenditures on these additional interests amount to approximately $6.6 million.
These activities bring First Capital Realty’s total investments in acquisitions, development activities and property improvements for the year to over $600 million.
On November 30, 2011, First Capital Realty completed the sale of Terminal Park in Nanaimo, British Columbia, a 30,000 square foot retail shopping centre anchored by BC Liquor and Bank of Montreal, for approximately $10.2 million.
Dispositions of select properties provide First Capital Realty with the opportunity to redeploy capital to uses which are most aligned with the Company’s core strategies. First Capital Realty’s gross proceeds from property dispositions for the year total $55 million.
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 169 properties, including ten under development, totalling approximately 23.2 million square feet of gross leasable area and three sites in the planning stage for future retail development.
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”, “anticipates” 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 matters discussed under “Risks and Uncertainties” in First Capital Realty’s Management’s Discussion and Analysis for the twelve-month period ended December 31, 2010 and the three- and nine-month periods ended September 30, 2011 and under “Risk Factors” in its 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.
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For further information:
Dori J. Segal, President & CEO, or
Karen H. Weaver, Executive Vice President & CFO
First Capital Realty Inc.
85 Hanna Avenue, Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114