$FCR-UN.TO

Choice Properties REIT Upgraded to Outperform at RBC

Choice Properties REIT (CHP-UN.TO) was upgraded to Outperform from Sector Perform at RBC Capital Markets on Wednesday.Analyst Pammi Bir raised his price target on shares of the Canadian real estate company to $17.50 from $17."We see the proposed $5 Billion portfolio acquisition from First Capital REIT (FCR-UN.TO) as a strategically compelling transaction that should ultimately enhance CHP's growth profile & quality," Bir said in a note to clients."Short-term earnings dilution and higher leverage may give some investors pause," the analyst said. "Yet, from our vantage point, CHP's recent underperformance provides patient investors an attractive entry to a name with strong leadership, a proven ability to execute, and superior cash flow durability."(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

CIBC Lowers George Weston's Price Target By $10

CIBC Capital Markets maintained its outperformer rating on the shares of George Weston (WN.TO), but at the same time reduced its price target to C$117.00 from $127.00 in a note dated May 12, after the company reported its first quarter results.George Weston's Q1 results came with "few surprises" given the known results of both Loblaw Companies (L.TO) and Choice Properties Real Estate Investment Trust (CHP-UN.TO), said CIBC."Its capital allocation priorities remain unchanged, with the recent announcement of Choice acquiring First Capital alongside Kingsett not expected to alter buyback activity," said CIBC. "The implied Holdco discount sits at 14.8% today," added CIBC in the note dated May 12.CIBC continues to forecast Weston repurchasing near $1B of shares in F2026 and F2027, in line with activity in prior years. It also expects "healthy" cash flow generation to continue, driven by Loblaw dividends, Choice distributions and participation in Loblaw's NCIB."Our target Holdco discount stays at 9%, and with our updated Loblaw price target of $69 and the CIBC REIT team's price target of $16.50/unit for Choice Properties, our price target for WN moves to $117 (was $127)," added CIBC. "George Weston remains Outperformer rated."Though not specifically related to the potential First Capital transaction, CIBC highlights that its REIT team upgraded CHP to Outperformer rated effective April 30, primarily on account of current valuation levels.Price: $93.33, Change: $-3.34, Percent Change: -3.46%

First Capital REIT Q1 Profit, FFO Rise On Record Occupancy, Lease Spreads

First Capital Real Estate Investment Trust (FCR-UN.TO) after the close Tuesday reported a 9.2% year-over-year jump in first quarter net profit driven by record occupancy and strong lease renewal spreads.In three months, ended on March 31, the REIT reported a net income attributable to unitholders of $92.2 million, or $0.43 per unit, compared to $84.4 million, or $0.39, in the prior year periodThe company reported an operating FFO (funds from operations) per unit of $0.35, representing a yearly growth of 7.6%. Besides, total portfolio occupancy stood at 97.2%, representing an increase of 30 basis points year-over-year."We are pleased to report another strong quarter of operating and financial results, highlighted by record occupancy, solid same-property NOI growth and robust lease renewal spreads which contributed to strong FFO per unit growth," said chief executive Adam Paul.."I am extremely grateful for and proud of the FCR team. Together, we have built a consistent track record of strong results through the disciplined execution of a well-defined strategy". Paul continued, "This foundation positioned FCR for success and culminated in last month's announced agreement to be acquired at a record unit price."The REIT's units closed up $0.12 to $23.48 on the Toronto Stock Exchange.

Earnings Flash (FCR-UN.TO) First Capital REIT Posts Q1 Operating FFO $0.35 per Share

TSX Down 20 Points at Midday With Most Sectors Higher

The Toronto Stock Exchange is down 20 points at midday, with most sectors in the green.Telecoms and info tech the best performers, up 1.5% and 1.3%, respectively.In Canada, the focus was on the release of existing home sales data for March."Clearly, the market continues to struggle amid several headwinds, including soft job markets, economic uncertainty, falling population growth, and strained affordability," TD Economics said after a "soft" performance in Canadian home sales for March, following four straight monthly declines. TD added: "With these challenges in place, 2026 is shaping up to be another modest year for Canadian housing. Loose supply/demand balances should keep downwardly pressuring prices in B.C. and Ontario. Elsewhere, price growth should be firmer, but likely cool as the year progresses."New listings were also flat during the month. With new listings and sales both barely moving, the sales-to-new listings ratio stayed at 47.8% in March. "This is well below the long-term average and signals modest price growth moving forward", TD said.Average home prices were also flat in March, while the MLS home price index, a more 'like for like' measure, declined 0.4% m/m, and was down 4.7% on a year-on-year basis. Prices for detached units were down 0.3% m/m, while condo prices fell 0.9% m/m.The Canadian Real Estate Association (CREA) on Thursday cut its home sales growth forecasts for this year amid a "tepid" start to the year for the economy and higher odds of a Bank of Canada rate hike later this year to tame inflation resulting from the oil price spike. Some 474,972 residential properties are forecast to be sold in 2026, a 1% increase over 2025, CREA wrote. This is below the 5.1% increase forecast that it released in January. The national average home price is forecast to rise 1.5% on an annual basis to $688,955 this year, less than the 2.8% growth CREA saw in January. In 2027, national home sales are forecast to climb a further 2.1% to 485,071 units. This could be revised above the 500,000 mark should higher interest rates prove unnecessary to fight inflation, added CREA.In company news, First Capital REIT (FCR-UN.TO) is to be acquired by Choice Properties REIT (CHP-UN.TO) and and KingSett in a cash and units deal valued at $9.4 billion. The transaction also involves George Weston (WN.TO).

First Capital REIT to be Acquired by Choice Properties and Kingsett In $9.4B Deal; George Weston Involved

First Capital REIT (FCR-UN.TO) said Thursday it had entered into an agreement that will see it acquired by KingSett Capital and Choice Properties REIT (CHP-UN.TO) in a unit and cash transaction valued at $9.4 billion, including the assumption of certain debt. The deal also involves George Weston Limited (WN.TO).Under the terms of the arrangement agreement, First Capital unitholders will receive $19.24 in cash and 0.3186 units of Choice Properties per unit, amounting to $24.40 per First Capital unit. The transaction price represents a premium of 17% to First Capital's 20-day volume-weighted average price through April 15, and a premium of 8% to First Capital's Net Asset Value of $22.57 per unit. Additionally, the transaction price represents a premium of 12% and 21% to First Capital's closing unit price and 90-day volume-weighted average price through April 15, 2026, respectively.The transaction will see Choice Properties acquire $5.0 billion of retail assets from First Capital. KingSett will acquire approximately $4.4 billion of First Capital assets and all of First Capital's issued and outstanding units.The Choice Properties Acquisition Portfolio is expected to generate full-year net operating income (NOI) of $235 million in 2027, with an annual growth rate of 3.5% in the near-term.Choice Properties will finance its acquisition of the portfolio through a combination of debt and equity. This includes issuing 68.6 million Choice units to First Capital unitholders valued at $1.1 billion, and a $0.6 billion equity investment from George Weston for 38 million units, the assumption of First Capital's $2.3 billion of outstanding unsecured debentures, and the assumption of $0.4 billion of in-place mortgages. The remaining consideration is expected to be financed via the issue of new unsecured debentures by Choice Properties.KingSett has secured, on a firm, committed basis, all financing required to complete the transaction.First Capital units closed up $0.14, to $21.84, on Wednesday, on the Toronto Stock Exchange. Choice Properties REIT closed up $0.04, to $16.19.George Weston shares closed up $0.80, to $97.03.

First Capital REIT Enters Into Agreement to Be Acquired by KingSett Capital and Choice Properties REIT in $9.4B Deal