First Capital Real Estate Investment Trust : REIT Announces Closing of Strategic Partnership with Pemberton Group to Develop the Former Christie Cookie Site in Toronto

First Capital REIT Announces Closing of Strategic Partnership with Pemberton Group

to Develop the Former Christie Cookie Site in Toronto

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Toronto, Ontario (September 20, 2021) - First Capital REIT ("First Capital") (TSX: FCR.UN) announced today that it has closed the previously announced transactions expanding its relationship with Pemberton Group ("Pemberton"), through a strategic partnership to develop the 28-acre development site located at 2150 Lake Shore Boulevard West at Park Lawn Road in Toronto (the "Development Site" or "Property").

Pemberton has now become a 50% development partner with First Capital in the Property, which will be transformed over the coming years into a sustainable and inclusive, master-planned,mixed-usetransit-oriented neighbourhood. As formerly disclosed, the new partnership was created in conjunction with First Capital's exercise of an option to purchase its previous partner's 50% interest in the Development Site for approximately $56 million, and the conveyance of a 50% interest in the Property to Pemberton for $156 million.

Completion of the transaction in the third quarter is expected to positively impact Net Asset Value by at least $85 million (approximately $0.38 per unit), resulting in a total impact of at least $175 million including amounts previously recognized in the second quarter of 2021.

About First Capital REIT (TSX: FCR.UN)

First Capital is a leading owner, operator and developer of grocery anchored and mixed‐use properties located in Canada's largestcities. First Capital's focus is on creating thriving urban neighbourhoods to generate value for businesses, residents, communities, and our investors.

Forward Looking Statement Advisory

This press release contains forward-looking statements and information within the meaning of applicable securities law, including statements regarding the closing and anticipated impact of the transactions and future development of the site. The forward-looking statements are not historical facts but rather reflect First Capital's current expectations and are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Such risks and uncertainties include, among others, the failure to develop the site or to develop the site in a manner consistent with the renderings included at the end of this release, and/or failure to achieve the anticipated impact of the transactions and REIT's broader strategy, including but not limited to, the successful development of the site, reduction of leverage and strengthening of the REIT's balance sheet, as well as the matters discussed under "Risks and Uncertainties" in First Capital Realty's Management's Discussion and Analysis for the year ended December 31, 2020 as well as under "Risk Factors" in its current Annual Information Form. Readers, therefore, should not place undue reliance on any such forward-looking statements. First Capital undertakes no obligation to publicly update any such forward looking statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities law. All forward-looking statements in this press release are made as of the date hereof and are qualified by these cautionary statements.

For further information:

Jordan Robins

Executive Vice President & COO

1. [e-mail]

Neil Downey

Executive Vice President, Enterprise Strategies & CFO

1. 530-6634
   [e-mail]

www.fcr.ca

TSX: FCR.UN