Analyst Mark Rothschild from Canaccord Genuity maintained a Buy rating on First Capital Realty and increased the price target to C$21.00 from C$20.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight First Capital Realty’s strong financial and operational performance. The company reported impressive cash flow growth, driven by a significant increase in same-property net operating income (NOI) and record occupancy levels. This improvement is attributed to robust demand for high-quality retail spaces and strategic moves to reduce exposure to development land, which typically has higher vacancy rates.
Another factor influencing the Buy rating is the company’s successful efforts in strengthening its balance sheet by reducing net debt through non-core asset sales. Additionally, First Capital Realty’s leasing spreads have shown a strong upward trend, indicating continued demand for its retail spaces. The company’s valuation also plays a role, as its units trade at a discount compared to its net asset value (NAV) estimate, suggesting potential for price appreciation. Overall, these elements contribute to a positive outlook for First Capital Realty, justifying the Buy recommendation.
According to TipRanks, Rothschild is a 5-star analyst with an average return of 9.2% and a 67.71% success rate. Rothschild covers the Real Estate sector, focusing on stocks such as First Capital Realty, InterRent REIT Un, and RioCan Real Estate Investment.
In another report released on July 16, TR | OpenAI – 4o also upgraded the stock to a Buy with a C$20.50 price target.