TSX:FCR.UN - Post by User
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retiredcfon Oct 18, 2024 8:36am
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Raymond James Initiates Coverage
Raymond James Initiates CoverageRaymond James’ Brad Sturges initiated coverage of First Capital REIT with an “outperform” rating and $20.50 target, touting its “Canadian urban grocery-anchored portfolio that can benefit from shorter WALTs [weighted-average lease terms] to capture its embedded rent mark-to-market growth opportunity.” The average is $19.48. “We believe First Capital is well advanced in achieving or exceeding its 3-year strategic plan through to the end of 2026, which included the following objectives: 1) achieve minimum annual average SP-NOI and FFO/unit growth of 3 per cent year-over-year ; 2) complete $1-billion in non-core, low-yielding income property and development site divestitures (average exit cap rate: 3 per cent); 3) invest $500-million into planned development and redevelopment activities; 4) complete development projects totaling $200-million; 5) execute core grocery-anchored retail asset acquisitions of $100-150-milion; and 6) reduce its debt to adjusted EBITDA ratio into the low 8x range (vs. 9.2 times at June 30),” he said.