The board of directors of Toronto-based First Capital Realty Inc. have unanimously voted in favour of converting to a real estate investment trust.
Under the proposal, FCR will become First Capital Real Estate Investment Trust, subject to shareholders’ approval and subject to receipt of a fairness opinion from FCR's independent financial advisor.
It is expected that a shareholders’ vote will take place in December 2019 and will require 66 2/3 of the votes to be in favour.
"Today's announcement marks an important milestone in our conversion into a REIT bringing us closer to achieving the benefits of conversion we previously outlined. 2019 continues to be an exceptional year for First Capital and we look forward to providing our quarterly update later this month on our super urban strategy which includes our disposition activities,” said Adam Paul, President and CEO of FCR.
First Capital REIT's annual distribution is expected to remain consistent with FCR's current annual dividend of $0.86 per common share. The REIT intends to make monthly distributions in place of the quarterly dividends currently paid by FCR, initially of $0.0716 per REIT unit per month, or $0.86 per REIT unit on an annualized basis.