First Capital Real Estate Investment Trust

Good day, everyone, and thank you for joining for today's first Capital Reads Q3 2025 results webcast and conference call. As a reminder, all phone participants have been placed in a listen-only mode to reduce background noise, and later you will have the opportunity to ask questions using the star and one on your telephone keypad to signal us. Also a reminder, today's session is being recorded, and it is my pleasure to turn the floor over to our opening remarks and introductions to Mr. Neil Downey. Please go ahead, sir.

Thank you, Jim, and 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 filings, including our Q3 MD&A, our MD&A for the year ended December 31st, 2024, and our current AIF, 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 law, 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 and to aid in assessing the REIT's performance. These non-IFRS measures are further defined and discussed in our MD&A, which should be read in conjunction with this conference call. And with that, I will now turn the call to Adam.

Okay, thank you very much, Neil. Good afternoon, everyone, and thank you for joining us today for our Q3 conference call. We're very pleased to deliver another strong quarter of operating and financial results. It has been a great start thus far in 2025 for FCR. In the third quarter, same property cash NOI grew by a healthy 6.4%. This excludes lease termination fees and bad debt expense. In round numbers, a little over 2% of the NOI growth was from increased occupancy and new tenants paying cash rent at One Bloor East. All other factors, which are primarily higher rents across the balance of the portfolio, contributed a little over 4% of same property NOI growth. On a year-to-date basis, same property cash NOI, excluding lease termination fees and bad debt expense, has increased by 6%. This is a very healthy growth rate for our business. And as you've heard from Neil on prior calls, it has exceeded the expectation we had at the beginning of the year. The primary driver of this outperformance has been better than expected leasing. With demand continuing to exceed supply for FCR type retail space, we expect our properties will continue to perform well. Following a record high occupancy level of 97.2% in Q2, occupancy remained solid at 97.1% in the third quarter. Our average in-place net rental rate in Q3 stood at just over $24.50 per square foot, which is an all-time high. During Q3, we renewed approximately 550,000 square feet across 146 spaces. Net rental rates in year one of the renewal terms averaged $27.41 per square foot, representing a year one renewal rent increase of over 13%. Approximately three-quarters of our renewed leases in the third quarter included contractual rent escalations throughout the renewal terms. This resulted in a renewal lift of over 18%, when comparing net rents in the last year of the expiring terms to the average net rents during the renewal terms. In addition to renewal leasing, we also completed approximately 150,000 square feet of new leasing at FCR Share across 55 spaces. Leasing continues to be very strong. We own great assets. And our leasing team's deep understanding of the strong fundamentals for our product type, which I discussed in detail last quarter, positions them well to capitalize on countless opportunities for rent growth. We continue to have confidence that these market dynamics provide a very long runway for accelerated and sustained rent growth for our portfolios. We're now just over halfway through our three-year strategic plan that we presented to our investors at the beginning of last year. At its heart, the plan is focused on delivering on three primary investor objectives. Stability and consistent growth in FFO per unit, growth in NAV per unit, and absolutely stable, reliable monthly cash distributions to our investors and growth in those distributions over time. The business continues to perform exceptionally well. We remain on track to achieve the operating FFO per unit growth and death EBITDA metrics that are the core premise of our three-year plan. Through the first 21 months of the plan, our operating FFO per unit CAGR, excluding several positive but non-recurring items, is approximately 5%. We're tracking ahead on OFFO. Our debt to EBITDA has improved to the low nines and is on track to improve further throughout 2026. We're very pleased with our results today. And with that, I will now pass things over to Neil to expand on them.