Forward-looking Statements and Non-IFRS Financial Measures

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2 Forward-looking Statements and Non-IFRS Financial Measures This material may contain forward-looking statements, including those identified by the expressions anticipate, believe, plan, estimate, expect, intend and similar expressions to the extent they relate to First Capital Realty Inc. ( Company ) or its management. The forward-looking statements are not historical facts but reflect the Company s current beliefs and are based on information currently available to management. Certain material factors and assumptions were applied in providing these forward-looking statements, many of which are beyond our control. Management believes that the forward-looking statements are based upon reasonable assumptions; however, management can give no assurance that actual results will be consistent with those expressed or implied in these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied in these forward-looking statements. Additional information about the risks and uncertainties that could cause actual results to differ materially, and the material factors or assumptions that were applied in providing these forward-looking statements, are contained in our various securities filings, including our quarter end results press release dated May 8, 2018, our Management s Discussion and Analysis for the year ended December 31, 2017 ( MD&A ) and our current Annual Information Form, all of which are available on SEDAR at and on our website at You should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. These forward-looking statements are made as of May 8, Except as required by securities law, First Capital Realty Inc. undertakes no obligation to publicly update or revise any such statements whether to reflect new information, the occurrence of future events or circumstances, or otherwise. This material references certain non-ifrs financial measures, including but not limited to FFO, FFO per share, NOI, and NAV. These non-ifrs measures are further defined and discussed in the Company s MD&A, which should be read in conjunction with this material. Since these non-ifrs measures do not have standardized meanings prescribed by IFRS, they may not be comparable to similar measures reported by other issuers. The Company uses and presents the above non-ifrs measures as management believes they are commonly accepted and meaningful financial measures of operating performance. Reconciliations of certain non-ifrs measures to their nearest IFRS measures are included in the Company s MD&A. These non-ifrs measures should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS as measures of First Capital Realty s operating performance. All figures in this presentation are as of March 31, 2018 unless otherwise noted. 2

3 Corporate Snapshot (TSX: FCR) One of Canada s largest owners, developers and managers of grocery anchored, retail-focused urban properties where people live and shop for everyday life Large urban market focus across Canada 161 properties 25.3 million sq. ft. (23.6 million sq. ft. at FCR share) of gross leasable area Total enterprise value: $9.4 Billion Equity Market Capitalization: $5.0 Billion As at March 31,

4 Key Investment Highlights Best in Class Portfolio: High quality major market, Canadian retail portfolio Defensive asset class with high barriers to entry Strategic and diversified tenant mix Industry leading same property income growth 4

5 Key Investment Highlights Growth Proven Development Capability: Focused on long-term value creation Internal capability with strong track record of development and repositioning Development pipeline ~ 21.7M square feet of incremental density Over $1 billion of development planned for delivery over the next several years 5

6 Key Investment Highlights Strong and Flexible Financial Position: Strong balance sheet (43.6% levered at March 31, 2018) $7.3 billion of unencumbered assets Well-staggered debt maturities Investment grade ratings by DBRS and Moody s 6

7 Track Record of Long Term Outperformance Total Returns vs. Indices as at April 30, % 9.0% First Capital Realty S&P/TSX Capped REIT S&P/TSX 9.3% 8.4% 8.0% 7.8% 7.0% 6.0% 5.9% 5.5% 5.2% 5.0% 4.0% 4.0% 4.2% 3.0% 3.1% 2.0% 1.0% 0.0% 1 Year 5 Year CAGR 10 Year CAGR 7

8 Strong Growth in NAV Per Share 19.8% Since Jan 1, 2016 $21.85 $19.53 $18.25 YE 2015 YE 2016 YE

9 Strong Growth in FFO Per Share 17.2% Since Jan 1, 2016 $1.16 $1.11 $0.99 YE 2015 YE 2016 YE

10 Best In Class Portfolio

11 Urban Markets with High Barriers to Entry Western Canada Central Canada Eastern Canada Vancouver 11% Edmonton Calgary 10% 9% 12% Quebec City 2% 15% Greater Toronto Area 34% 7% Montreal Ottawa PROPERTIES GLA AMR% PROPERTIES GLA AMR% PROPERTIES GLA AMR% M 33% M 42% M 25% 11

12 Leading Portfolio Demographics FCR Portfolio Demographic Metrics: Q * 215,000 $107,000 US$108,000 $98, , ,700 Q US US Peers ** Peers ** Cdn Cdn Peers *** Peers *** Q US Peers ** US Peers ** Cdn Peers *** 5 Km Population 5 Km Household Income As of March 31, 2018 * Source: Sitewise, Environics Analytics (2017 estimates) ** US Peers include: Federal Realty, Kimco Realty and Regency Centers Source: Company Reports *** Canadian Peers include: Riocan, Smart Reit, CREIT (Retail only), Choice Properties, CT Reit, Crombie Source: Company Reports, Sitewise, Environics Analytics 12

13 Premier Portfolio Highest Rents in Sector FCR rents are Superior 32% higher Rent than Growth peer Potential group average $19.84 $17.93 $15.29 $13.51 $ % 5.4% 5.0% 4.6% 4.2% 3.8% Peer 3.4% Group 3.0% 2.6% Average 2.2% $ % 1.4% 1.0% 0.6% 0.2% -0.2% -0.6% -1.0% Q Base Rent * Crombie is excluded because average rent PSF is not disclosed. 13

14 Industry Leading Performance 8.0% Total Same Property NOI Growth 7.0% 6.0% 5 year average 2.8% 10 year average 3.3% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q

15 Industry Leading Performance 16.0% Lease Renewal Rate Increases 14.0% 12.0% 5 year average 8.5% 10 year average 10.1% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Q Represents increase on total portfolio basis. Includes renewal options, and contractual fixed rate renewals. 15

16 Strategic and Diversified Tenant Mix # of Stores % of Rent Grocery Stores % Pharmacies % Liquor Stores % Banks & Credit Unions % Restaurants & Cafes % Medical, Professional & Personal Services 1, % Fitness Facilities % Daycare & Learning Centres % E-Commerce Proof ~ 33% Other Necessity-Based Retailers % Other Tenants % 16

17 Top 20 Tenants Contribute 45% of annualized minimum rent (AMR) Rank # Tenant AMR Investment Grade Rank # Tenant AMR Investment Grade %* % % % % % % %** % % % % % % % % % % % % As of March 31, 2018 * Includes Shoppers Drug Mart **Includes Tim Hortons, Burger King and Popeyes 17

18 Sample of Retailers Expanding in FCR Portfolio or in Canada 18

19 Perception vs. Reality Retail Apocalypse, Record Store Closings 5,321 store closures so far this year Deep Dive: The US Retail Revolution Solution, Fung Global Retail & Technology, July 2017 Debunking the Retail Apocalypse: More Openings than Closings 4,080 net store openings Debunking the Retail Apocalypse, IHL, August

20 Perception vs. Reality 2017 New Stores: Planned Openings vs. Closings in the US (14,248 openings vs. 10,168 closures) Segment Net Store Growth FCR Core Category Supermarkets 674 Drug Stores 345 Superstores / WH Clubs 82 X Department Stores -400 X Specialty Hardgoods 153 X Specialty Softgoods -3,133 X Mass Merchandisers 1,905 Convenience Stores 1,700 Bar / Restaurants 728 Fast Food 2,026 Total 4,080 Source: IHL Group, Company Reports 20

21 Perception vs. Reality One can begin to imagine a world without brick and mortar supermarkets Will Online Shopping Kill the Retail Store?, Blog on Workforce Software, April 2017 Grocery Gateway celebrates 20 year anniversary Grocery Gateway Only ~1% of grocery sales occur online in Canada 21

22 Recent Expansions Announced by FCR Type Tenants F45 Training, a fitness concept born a few years ago in Australia, is taking Canada by storm with an incredibly ambitious goal to eventually hit 800 locations in the country. Retail Insider, March 15, 2018 Farm Boy is opening its 26th store in Hamilton in the coming weeks and it plans to open another 12 to 15 stores in southwestern Ontario and the GTA in the next three years. Retail Insider, March 12, 2018 Dollarama Inc. is going to get even bigger than management had envisioned, with a new plan to operate as many as 1,700 locations across the country, up from an earlier growth ceiling of 1,400. Financial Post, March 30, 2017 It opened its first Canadian store in the spring in Vancouver and expects to have about 18 in operation in B.C., Ontario and Alberta by 2018, including locations at Oshawa Centre, Hillcrest Mall and Upper Canada Mall. It s aiming for 100 stores in Canada by the end of next year and 500 in three years.. The Star, December 29,

23 Recent Acquisition (IPP) Yonge and Bloor, Toronto, ON Demographics 3KM AVG Population (2017 Estimates) 298,400 Household Income (2017 Estimates) $128,500 Subject Site: 1 Bloor Street East 23

24 One Bloor East, Toronto, ON Nordstrom Rack Grand Opening May 3, 2018 Property Statistics Retail GLA Commercial Parking Purchase Price 85,000 sq. ft. 52 Stalls $189M Anchors 24

25 Recent Acquisition (IPP) Griffintown, Montreal, QC Demographics 3KM AVG Population (2017 Estimates) 139,100 Household Income (2017 Estimates) $77,500 25

26 Recent Acquisition (IPP) Griffintown, Montreal, QC 260,000 square feet ~ $114 million investment Key tenants: ( ) 26

27 Recent Acquisition Major Redevelopment Property Former Christie Cookie Site, Toronto, ON Demographics 3KM AVG Population (2017 Estimates) 75,900 Household Income (2017 Estimates) $115,200 50% Partner (non-managing) 28 acres 27

28 Recent Acquisition Major Redevelopment Property Former Christie Cookie Site, Toronto, ON Surrounding Approved High Density Residential Sites Additional Population Growth 15 ~20,000 28

29 Portfolio Improvement through Asset Sales Dispositions 2012 Q Sale Price $1.1 billion* NOI Sold $59 million * Includes $123 million of land dispositions 29

30 Development, Re-development and Intensification (Core Competency)

31 Investment in Development and Redevelopment $50.5M during Q Yorkville Village Assets Toronto, ON 3080 Yonge Street Toronto, ON Mount Royal Village Assets Calgary, AB King High Line Toronto, ON Edmonton Brewery District Edmonton, AB Future Pipeline: 21.7M square feet = 2.8M square feet Retail M square feet Residential 31

32 Yorkville Village, Toronto, ON Property Statistics 3KM AVG Population 300,000 Household Income (average) $175,000 Planned GLA upon completion (Yorkville Village) 315,000 One Bloor GLA 85,000 Total Bloor/Yorkville 400,000 32

33 Yorkville Village, Toronto, ON Avenue Road Façade Before Current 33

34 Yorkville Village, Toronto, ON Avenue Road New Yorkville Entrance Interior Mall Events Program at Yorkville 34

35 Yorkville Village, Toronto, ON Re-Developing Street Front Retail 101 Yorkville - Pending Redevelopment 35

36 Mount Royal Village, Calgary, AB Demographics 3KM AVG Population (2017 Estimates) 123,200 Household Income (2017 Estimates) $136,200 Total Acreage 4.1 GLA 380,000 36

37 Mount Royal Village, Calgary, AB Redevelopment Phase recently completed Before 37

38 Mount Royal Village, Calgary, AB Redevelopment Phase recently completed Current 38

39 Mount Royal West, Calgary, AB Phase Under Development Current 39

40 Mount Royal West, Calgary, AB Phase Under Development Future 40

41 Liberty Village Assets, Toronto, ON Urban Retail and Residential Development Demographics 3KM AVG Population (2017 Estimates) 212,600 Household Income (2017 Estimates) $101,500 Total Acreage Total GLA ,000 41

42 King High Line Phase, Liberty Village, Toronto, ON Current Property Statistics Acreage 2.8 Residential Retail Total GLA Anchor Tenants 320,000 sq. ft. 150,000 sq. ft. 470,000 sq. ft. 42

43 King High Line Phase, Liberty Village, Toronto, ON Phase Under Development Future 43

44 Edmonton Brewery District, Edmonton, AB Demographics 3KM AVG Population (2017 Estimates) 89,600 Household Income (2017 Estimates) $83,500 Total Acreage 11.8 Planned GLA upon completion 310,000 Anchor Tenants 44

45 Edmonton Brewery District, Edmonton, AB 45

46 3080 Yonge St., Toronto, ON Re-development Commenced Before 46

47 3080 Yonge St., Toronto, ON Future Demographics 3KM AVG Population (2017 Estimates) 149,700 Household Income (2017 Estimates) $203,500 Total Acreage 2.0 Planned GLA upon completion 250,000 47

48 Property Management and Leasing (Core Competency)

49 Merchandising with Strategic Tenant Mix 49

50 Maple Grove Village, Oakville, ON Façade Renovation Program Before 50

51 Proactive Real Estate Management Rooftop Patios Quick Park 51

52 Sustainability Initiatives 19% decrease in Greenhouse Gas (GHG) emissions from , despite 11% growth in GLA properties certified 66% of portfolio in GLA Emissions (tc0 2 e) GLA (ft 2 ) 117 projects certified 3.4 Million Sq. Ft. Electric Car Charging Stations 120 Installed GHG Emissions (tc02e) Reporting GLA (ft2) Listed on Corporate Knights Future 40 Responsible Corporate Leaders in Canada 5 years in a row ( ) 52

53 Community Building FCR Public Arts Program 26 Public Art Installations across our portfolio Public Art Competitions in partnership with: 53

54 Canada s Most Gender Diverse Company* * As per Canada s First Gender Diversity ETF (TSX:HERS) Launched in

55 Financial Strength and Flexibility

56 Capital Structure Enterprise Value $9.4 Billion 13% Mortgages and Secured Facilities: $1.2 Billion Unsecured Debentures and Unsecured Facilities: $3.2 Billion 34% 53% Equity Capitalization: $5.0 Billion (244.8 Million shares) Significant Shareholder Gazit Globe (32.5% as at March 31, 2018) As of March 31,

57 Financial Strength and Flexibility As at Q Unsecured credit facility $800M $800M $800M $800M 74% of total assets Unencumbered assets ($ billions) $7.3 $7.4 $6.6 $5.8 Unencumbered assets to unsecured debt 2.3x 2.4x 2.4x 2.3x Secured debt as % of total assets 12.0% 12.7% 12.7% 13.1% Net debt to total assets (1) 43.6% 43.9% 44.9% 47.0% Net debt to EBITDA (1) (2) 9.7x 9.9x 9.6x 9.5x EBITDA interest coverage (2) 2.5x 2.5x 2.5x 2.5x (1) Net debt includes convertible debentures (2) EBITDA is calculated on a rolling four quarter basis 57

58 Well-Staggered Term Debt Maturities as at March 31, 2018 Millions $600 Weighted Average Interest Rate 4.3% Term to Maturity 5.4 years 100% of Term Debt is Fixed Rate Senior Unsecured Debentures Mortgages Weighted Average Effective Interest % 7.0% 6.0% $ % $ % $ % $ % $ % $ % % Due * 5.3% 7.3% 6.9% 7.1% 17.1%** 8.6% 10.3% 10.2% 13.7% 10.8% 2.7% *Percentage due does not include scheduled principal amortization for mortgages **Series O ($200M) and Series P ($250M) debentures mature on January 31, 2022 and December 5, 2022, respectively 58

59 Historical Performance Improving Conservative FFO Payout Ratio $300 84% $250 $200 82% 82% 82% $215 $220 $236 $261 78% $284 82% 80% 78% 76% $150 74% 72% 74% $100 72% $50 $73 70% 68% $ Q % FFO (excl $1.03 $1.04 $1.05 $1.10 $1.16 $0.30 OGLE)/share Dividends/share $0.84 $0.85 $0.86 $0.86 $0.86 $0.215 Annual Retained Operating Cash* FFO (excl. OGLE) FFO (excl. OGLE) Payout Ratio $25M $28M $25M $32M $34M ($2.3M) *Year : Adjusted Cash Flow from Operating Activities (excludes change in non-cash operating items and cashflows on residential development inventory) less Dividends, Sustaining Capex, and recoverable expenditures Year 2016, 2017 and Q1 2018: Adjusted Cash Flow from Operations (ACFO) less Dividends 59

60 Outlook Best in Class Portfolio: High quality major market, Canadian retail portfolio Defensive asset class with high barriers to entry Industry leading same property income growth Growth Proven Development Capability: Internal capability with strong track record for development and re-positioning Development pipeline ~ 21.7M square feet of incremental density Over $1 billion of development planned for delivery over the next several years Strong and Flexible Financial Position: Strong balance sheet (43.6% levered at March 31, 2018) $7.3 billion of unencumbered assets Well-staggered debt maturities Track Record of Outperformance vs. Indices 60

61 Outlook Net Asset Value Growth: Active asset management Development, re-development and intensification FFO Growth: Same property NOI growth New investments (acquisitions, development and re-development) Operating efficiencies 61

62 CONTACT INFO First Capital Realty Inc. Shops at King Liberty 85 Hanna Ave, Suite 400 Toronto, Ontario Tel Fax TSX: FCR ADAM PAUL PRESIDENT & CEO KAY BREKKEN EXECUTIVE VICE PRESIDENT & CFO 62