First Capital, Inc.

Good afternoon, and thank you for standing by. Welcome to the Q2 2025 conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press star 1 on your telephone keypad. I will now lighten the conference over to Allison. Please proceed with the presentations.

Good afternoon, everyone. In discussing our financial and operating performance and in responding to your questions during today's call, we may make forward-looking statements. These statements are based on our current estimates and assumptions, many of which are beyond our control and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. A summary of these underlying assumptions, risks, and uncertainties is contained in our securities filing, including our Q2 MD&A, our MD&A for the year ended December 31, 2024, and our current AIF, all of which are available on CDAR Plus and our website. These forward-looking statements are made as of today's date, and except as required by securities laws, we undertake no obligation to publicly update or revise any such statements. During today's call, we will also be referencing certain non-IFRS financial measures. These do not have standardized meanings prescribed by IFRS and should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS. Management provides these as a complement to IFRS measures to aid in assessing the REITs performance. These non-IFRS measures are further defined and discussed in our MD&A which should be read in conjunction with this call. I'll now turn the call over to Adam.

Okay. Thank you very much, Alison. Good afternoon, everyone. And thank you for joining us today for our Q2 conference call. We're very pleased to deliver another strong quarter of operating and financial results. It truly has been a great first half of 2025. In the second quarter, same property cash NOI grew by a healthy 6.2%. This excludes lease termination fees and bad debt expense, which happen to have a very small impact. In round numbers, a little over 2% of the NOI growth was from increased occupancy and new tenants starting to pay cash rent at one bluer east. All other factors, which are primarily higher rents across the balance of the portfolio, contributed to about 4% of the same property in a wide group. Last quarter, we matched our all-time high occupancy of 96.9%. This quarter, we set a new FCR occupancy record at 97.2%. Another new record set this quarter was our average in-place net rental rate, which stood at $24.44 per square foot. During Q2, we renewed just over 625,000 square feet across approximately 150 spaces. This included a 150,000 square foot Walmart with a typical fixed flat renewal. We also renewed four grocery stores and seven pharmacies that were completed at market rents. In total, net rental rates in year one of the renewal terms averaged $26.10 per square foot, representing a year one renewal rent increase of 16.2%. Approximately 80% of our renewed leases in the second quarter included contractual rent escalations throughout the renewal terms. This resulted in a renewal lift of approximately 21% when comparing net rent in the last year of these firing terms to the average net rents during the renewal terms. In addition to renewal leasing, we also completed approximately 105,000 square feet of new leasing at FCR share across 42 spaces carrying an average year one rent of just over $30 per square foot. Leasing continues to be very strong, which does not surprise us. We own great assets, and our leasing team understands what's going on from a macro perspective. This environment has been in the making for quite some time. The last number of years have been characterized by high population growth against a very low supply of new gross ranker shopping centers. Said another way, the customer base of FCR tenants has grown, while gross ranker retail square footage per capita has declined. Over that time, land and construction costs have risen, meaning the replacement cost of the space our tenants occupy has increased. This has culminated in the current environment in which many FCR-type retailers are seeking to grow their store networks. With economic rents remaining well in excess of both market rents and in-place rents, new supply in the trade areas where our properties are located will continue to be muted. For these reasons, we see a very long runway for accelerated and sustained rent growth for our portfolio. We're now halfway through our three-year strategic plan that we presented to our investors at the beginning of 2024. At its heart, the plan is focused on delivering our primary investor objectives, These primary objectives are quite simply delivering on a per unit basis, stability and consistent growth in FFO, growth in net asset value, and absolutely stable, reliable monthly cash distributions to our investors and growth in those distributions over time. With a focus on these objectives, The three-year plan that we outlined for investors was designed to deliver on two key metrics. The first is delivering operating FFO per unit growth of at least 3% on average over the three-year timeframe. The second key metric is achieving a net debt to adjusted EBITDA ratio that is in the low eight times range by the end of 2026. I am pleased to say that we are tracking well to deliver on both metrics. Through the first 18 months of the plan, our operating FFO per unit taker, excluding several positive but non-recurring items, is approximately 5%. We're tracking ahead on full FFO. That EBITDA has improved to 9 times, or below 9, adjusting for those same non-recurring items. This is exactly where we expected our debt to EBITDA to be at this time. So, we're very pleased with our results today on our three-year plan, and we look forward to updating you further on our progress as we continue to execute. And with that, I will now pass things over to Neil.