Analyst Michael Markidis of BMO Capital reiterated a Buy rating on First Capital Realty (FCR.UN – Research Report), with a price target of C$20.00.
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Michael Markidis has given his Buy rating due to a combination of factors that highlight First Capital Realty’s strong performance and strategic initiatives. The company has demonstrated robust leasing activity with a high occupancy rate and significant renewal spreads, indicating sustained tenant demand and a promising outlook for rent growth. This positive leasing environment supports the company’s confidence in achieving its SP-NOI growth targets for the fiscal year 2025.
Additionally, First Capital Realty’s strategic partnerships and capital recycling efforts, such as recent deals with Loblaw Companies Limited, further strengthen its portfolio and financial position. Despite reducing its disposition outlook, the company remains on track to achieve its leverage target by the end of 2026, supported by strong operating results and accelerated development completions. The focus on debt reduction, alongside continued FFO growth, underpins the positive outlook, although the execution of the three-year business plan remains crucial to maintaining this trajectory.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$20.00 price target.