Press Release


September 22, 2015

Toronto, Ontario (September 22, 2015) – First Capital Realty Inc. (TSX:FCR) (the “Company”), Canada’s leading owner, developer and manager of grocery anchored urban properties, announced today an organizational restructuring to streamline and enhance the effectiveness of its operations.

Organizational Effectiveness and Workforce Reduction

A core objective of the restructuring is to maximize the capabilities of First Capital’s solid and proven operating platform. In order to enhance the Company’s organizational effectiveness, we are realigning the executive leadership team (as described in the Leadership Team section below), removing redundancy and over-capacity, streamlining work processes and procedures, and upgrading information systems.

As part of this restructuring, First Capital has terminated 85 employees and created 25 vacant positions, resulting in the net elimination of 60 roles representing 13% of the workforce.

Leadership Team

Part of the restructuring involves realigning the executive leadership team by centralizing accountability according to key expertise and business function rather than geography. The Company has advanced in its lifecycle and the business today includes a focus on larger and more complex urban retail assets including mixed use projects. Accordingly, this realignment is expected to facilitate stronger performance and growth in First Capital’s business.

First Capital Realty’s realigned executive leadership team comprises:

Adam Paul, President and Chief Executive Officer
Kay Brekken, Executive Vice President and Chief Financial Officer Maryanne McDougald, Senior Vice President, Operations
Gregory Menzies, Executive Vice President, Eastern Canada (see note below)
Jodi Shpigel, Senior Vice President, Development (new role)
Roger Chouinard, General Counsel and Corporate Secretary
Sandra Levy, Vice President, Human Resources
TBD, Senior Vice President, Leasing (new role)
TBD, Senior Vice President, Investments (new role)
TBD, Senior Vice President, Construction (new role)

The transition to a centralized structure realigns responsibilities that exist under the executive leadership team today by eliminating the three head of region executive roles and creating four new executive roles. 2 Until the newly created leadership roles are filled and during a reasonable transition time, the existing executive team (all but one of whom are continuing) will continue to oversee the execution of the Company’s business plan in the normal course.

Jodi Shpigel, previously Senior Vice President, Central Canada, has assumed the role of Senior Vice President, Development.

Gregory Menzies, Executive Vice President, Eastern Canada has decided to pursue other interests on a long term basis but will remain with First Capital as a key member of the executive leadership team through January, 2017 and has agreed to fill a variety of roles through the Company’s transition to a centralized structure.

Brian Kozak, Executive Vice President, Western Canada has decided to leave First Capital at the end of the quarter. Adam Paul, President and CEO said, “Under Brian’s leadership over the last ten years, First Capital has accumulated and built a truly exceptional portfolio in Western Canada. On behalf of the Board and all employees, I’d like to congratulate Brian on his success and wish him nothing but the best in his future endeavours.”

Financial Impact

The restructuring costs are estimated to be between $14 million to $16 million and will be recognized over the last two quarters of 2015. This charge includes approximately $6.4 million related to a non-cash write-off of an investment in proprietary information technology systems which the Company intends to replace with superior functionality, lower cost third-party solutions.

As a result of the restructuring and related organizational enhancements, First Capital expects annual savings to be approximately $4.5 million to $5.5 million beginning in 2016.

Adam Paul, President and CEO said, “Our company is in excellent shape. Notwithstanding this, I have stated consistently that we are reviewing all aspects of our business to identify ways for us to further improve our performance. Today’s announcement focuses on our people, which is the area that will have the single biggest impact on how we perform going forward. Our review will continue to focus on other significant parts of our business such as assets and capital.”

Mr. Paul continued, “The organizational restructuring announced today was made following a very thorough, careful and thoughtful process. I would like to express my sincere gratitude and appreciation to all of our former employees for the contributions they have made to First Capital.”


First Capital Realty is Canada’s leading owner, developer and manager of grocery anchored urban properties where people live and shop for everyday life. The Company currently owns interests in 157 properties, totaling approximately 24.3 million square feet of gross leasable area.

Forward Looking Statements

This press release contains forward-looking statements and information within the meaning of applicable securities law. Forward-looking statements can be identified by the expressions “expects”, “believes”, “estimates”, “will” and similar expressions. The forward-looking statements are not historical facts but reflect First Capital Realty’s current expectations regarding future results or events and are based on information currently available to Management. Certain material factors and assumptions were applied in providing these forward-looking statements.

Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that the actual results or developments will be consistent with 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 current expectations, including the matters discussed under “Risks and Uncertainties” in First Capital Realty’s Management’s Discussion and Analysis for the year ended December 31, 2014 and under “Risk Factors” in its current Annual Information Form. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forwardlooking statement speaks only as of the date on which such statement is made. First Capital Realty undertakes no obligation to publicly update any such 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:
Adam Paul
President & CEO
416) 216-2081

Kay Brekken
Executive Vice President & CFO
(416) 216-2051