Monthly Dividend Stock In Focus: First Capital Real Estate Investment Trust

Published on February 6th, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

First Capital Real Estate Investment Trust (FCXXF) is a monthly dividend stock with a high yield. This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze First Capital Real Estate Investment Trust in greater detail.

Business Overview

First Capital Real Estate Investment Trust owns and operates a portfolio of 176 open-air, grocery-anchored shopping centers comprising about 22 million square feet of gross leasable area, located across 136 urban neighborhoods in Canada’s largest metropolitan markets.

Over 90% of rental revenue is generated from necessity-based retail tenants, including grocery stores, pharmacies, banks, medical services, and value-oriented retailers, with limited exposure to discretionary or enclosed-mall retail.

The portfolio is concentrated in major urban regions, led by the Greater Toronto Area, with additional scale in Montreal, Vancouver, Calgary, Edmonton, and Ottawa, providing strong demographic support and high barriers to entry.

The REIT also controls a significant mixed-use intensification pipeline of roughly 23 million square feet, embedded within existing properties. The REIT generated $496 million in rental revenue last year.

On November 5th, 2025, First Capital REIT reported its Q3 results. Revenue was $130.3 million, up 4% year over year, driven by higher base rent, improved occupancy, and continued rental rate growth across its urban, grocery-anchored portfolio.

Net operating income increased by roughly 5% year over year to $82.6 million, supported by same-property NOI growth of over 7%, due to strong leasing spreads, occupancy up 40 bps to 97.1%, and favorable operating cost recoveries.

FFO per share was $0.23, down two cents from last year.

Growth Prospects

First Capital REIT has managed to gradually grow its FFO per share over the past decade, despite the constant pressure from the depreciation of CAD against USD over this period.

From 2015 through 2017, First Capital’s FFO per share rose steadily as improving fundamentals across its urban, grocery-anchored portfolio translated into higher same-property NOI.

Per-share growth was also backed by portfolio recycling into higher-quality assets, but the pace of improvement moderated toward 2017 as incremental gains normalized.

From 2022 through 2023, higher interest rates and increased financing costs constrained per-share growth even as operating performance was solid.

In 2024, stronger underlying retail NOI, embedded rent growth, and prudent capital allocation exceeded rate headwinds, allowing FFO per share to recover.

Moving forward, we expect FFO per share growth of 2%, supported by embedded rent growth and continued leasing strength across the REIT’s urban, grocery-anchored portfolio.

Dividend & Valuation Analysis

First Capital REIT features a high-quality, necessity-based retail portfolio concentrated in dense urban neighborhoods with strong demographics and high barriers to entry, supporting stable occupancy and rent collections through the cycle.

The predominance of grocery, pharmacy, and service-oriented tenants provides inherent recession resilience, as demonstrated by relatively modest cash flow disruption during past downturns compared with discretionary retail peers.

Its competitive advantages stem from ownership of irreplaceable sites, local operating scale in major markets, and a sizable embedded intensification pipeline that allows for organic growth without reliance on external acquisitions.

With a P/E of 15.9, FCXXF trades above our fair value estimate of 14. A declining P/E could reduce annual returns by 2.5% per year over the next five years.

Including 2% expected business growth and the 4.5% dividend yield, total returns could reach 4.0% per year.

Final Thoughts

First Capital is a high-quality, urban-focused retail REIT with resilient cash flows and a strong long-term growth platform, but near-term returns remain tied to disciplined execution and the interest-rate environment.

Still, we forecast a total annualized return potential of 4% through 2030, to be driven by the starting dividend yield and our growth estimates, offset by the possibility of a modest valuation headwind. Shares earn a hold rating.

Additional Reading

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.