FIRST QUARTER 2009 HIGHLIGHTS:

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($ millions, except Percentage

per share amounts) 31 Mar 2009 31 Mar 2008 Change

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Property rental revenue $ 110.3 $ 101.8 8.3%

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Net operating income (NOI) $ 68.3 $ 63.3(2) 7.9%

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Funds from operations (FFO)(1) $ 38.2 $ 34.5(2) 10.7%

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FFO per diluted share(1) $ 0.42 $ 0.42(2) -

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Weighted average diluted shares

for FFO (000's) 91,172 81,363 12.1%

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Adjusted funds from operations

(AFFO) $ 36.9 $ 31.6(2) 16.8%

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AFFO per diluted share $ 0.37 $ 0.35(2) 5.7%

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Weighted average diluted shares

for AFFO (000's) 99,552 89,989 10.6%

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Enterprise value $ 3,900 $ 4,200

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Debt to aggregate assets 54.5% 53.7%

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Debt to total market capitalization 58.1% 48.0%

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(1) See Funds from Operations section of this press release.

(2) Comparative amounts have been restated for a change in accounting

standards. See "Financial Highlights".

OPERATIONS HIGHLIGHTS:

- Invested $45 million in acquisitions, development activities and

property improvements

- Completed 158,000 square feet of gross leasable area from

acquisitions, development and redevelopment

- Acquired two land parcels adjacent to existing properties comprising

0.7 acres of commercial land for future development

- 5.7% same property NOI growth; 2.2% same property NOI growth

excluding redevelopment and expansion

- 9.9% increase on rate per square foot on 269,000 square feet of

renewal leases

- Occupancy of 96% which compares to 96.4% at December 31, 2008.

Vacancy includes 1% of space held for redevelopment

- Gross new leasing totalled 274,000 square feet including development

and redevelopment coming on line; lease closures totalled 281,000

square feet and closures for redevelopment totalled 86,000 square

feet

- Average lease rate per occupied square foot increased by 4.1% to

$15.24 at March 31, 2009 compared to $14.64 in the prior year first

quarter

- Completed new leasing on existing space totalling 150,000 square feet

at an average rate of $17.36 per square foot

- Lease rates on openings and redevelopment coming on line increased by

21.7% versus all lease closures.

"The solid operating performance of our properties positively reflects our continued focus on operations, the defensive nature of our asset class, and our strong urban locations", said Dori J. Segal, President & C.E.O., "Going forward, we continue to prudently evaluate selective acquisitions in our trade areas that are complementary to our portfolio while investing in value-added development and re-development activities."

FINANCIAL HIGHLIGHTS

Comparative amounts have been restated for a change in accounting standards with respect to goodwill and intangible assets. This change resulted in an increase in FFO for the first quarter of 2008 of $0.2 million and nil change in net income.

FFO and AFFO presented herein are key financial measures used by the real estate industry to measure and compare the operating performance of real estate organizations. FFO and AFFO are supplemental non-GAAP financial measures and a complete reconciliation containing adjustments from GAAP net income to FFO and AFFO is included in this press release.

Funds from Operations

Funds from operations totalled $38.2 million or $0.42 per diluted common share for the three months ended March 31, 2009 compared to $34.5 million or $0.42 per diluted share in the same period for the prior year.

The increase in FFO was primarily due to an increase in net operating income resulting from same property NOI growth as well as acquisitions and development coming on line partially offset by increased interest expense and decreased interest and other income.

FFO for the first quarter of 2009 included non-recurring items totalling $0.02 per diluted share consisting primarily of non- recurring FFO from Equity One. The first quarter of 2008 also included non-recurring items totalling $0.02 per diluted share which consisted primarily of net gains on land sales.

Adjusted Funds from Operations

Management views AFFO as an effective measure of cash generated from operations. AFFO for the three months ended March 31, 2009 totalled $36.9 million or $0.37 per diluted common share compared to $31.6 million or $0.35 per diluted common share in the prior year. AFFO is calculated by adjusting FFO for straight-line and market rent adjustments, non-cash compensation expenses, interest payable in shares, non-cash gains or losses on debt, hedges and land sales and actual costs incurred for capital expenditures and leasing costs for maintaining shopping centre infrastructure and current lease revenues. The Company's proportionate share of Equity One FFO is excluded and only the regular cash dividends are included in AFFO. The weighted average diluted shares outstanding for AFFO is adjusted to assume conversion of the outstanding convertible debentures.

Net Income

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($ thousands, except per share amounts) Three months ended Mar. 31

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2009 2008

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Net income $ 9,082 $ 8,382(1)

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Earnings per share (diluted) $ 0.10 $ 0.10(1)

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Weighted average common shares - diluted (000's) 91,172 81,363

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(1) Comparative amounts have been restated for a change in accounting

standards.

Net income for the three months ended March 31, 2009 was $9.1 million or $0.10 per share (basic and diluted) compared to $8.4 million or $0.10 per share (basic and diluted) for the prior year comparable period. The increase in net income is primarily due to an increase in NOI resulting from development projects coming on line, same property NOI growth and increased equity income from Equity One, offset by an increased amortization expense and decreased interest and other income. Interest and other income for the three months ended March 31, 2008 included $1.3 million in gains on the sale of land. In addition, there was an increase in the basic and weighted average diluted shares outstanding compared to the same prior year period.

DEVELOPMENT AND ACQUISITION HIGHLIGHTS

During the first quarter of 2009, the Company acquired a 27,000 square foot retail property in Toronto, Ontario. The Company also acquired two land parcels adjacent to existing properties comprising a total of 0.7 acres of commercial land for future development. Total investment in the retail property and land sites amounted to $7.2 million.

Development of 87,000 square feet was brought on line during the first quarter with 81,000 square feet leased at an average rate of $19.16 per square foot.

The Company also invested $38.0 million during the first quarter in its active development projects and improvements to existing properties.

OPERATING HIGHLIGHTS

Net operating income for the three months ended March 31, 2009 totalled $68.3 million, compared to $63.3 million in the first quarter of 2008, an increase of $5.0 million or 7.9%. Development and redevelopment in the first quarter of 2009 contributed $4.9 million to quarterly net operating income. Acquisitions in the first quarter of 2009, combined with the full impact of acquisitions in the prior year, contributed a further $0.8. Same property net operating income increased 5.7%, generating growth of $3.4 million in the first quarter 2009.

Gross new leasing totalled 274,000 square feet including development and redevelopment coming on line. Lease rates on openings, and redevelopment coming on line increased by 21.7% versus all lease closures. The Company achieved a 9.9% increase on 269,000 square feet of renewal leases over the expiring lease rates.

The average rate per occupied square foot at March 31, 2009 increased to $15.24. This compares to an average rate of $15.17 per square foot at December 31, 2008.

Portfolio occupancy at March 31, 2009 of 96% compares to 96.4% at December 31, 2008 and 95.5% at March 31, 2008. Closures for redevelopment totalled 86,000 square feet for the first quarter of 2009 providing potential for future income growth through leasing and redevelopment activities.

FINANCING AND CAPITAL MARKET HIGHLIGHTS

For the period ending March 31, 2009, First Capital Realty closed on the following financings:

- A three year, $450 million secured revolving credit facility with a

syndicate of ten banks jointly led by RBC Capital Markets, TD

Securities, and BMO Capital Markets. The new facility was used to

replace the Company's existing three year $350 million Senior

Unsecured Revolving Credit Facility.

- A three year, $75 million secured revolving credit facility with the

Bank of Nova Scotia maturing January 2012.

- Five secured financing transactions for gross proceeds of $80.5

million at a weighted average interest rate of 5.9% and a weighted

average term to maturity of 7.05 years.

First Capital Realty issued 2.1 million common shares for net proceeds of $35.8 million in the quarter primarily from the following activities:

- On February 17, 2009 the Company issued 1.4 million common shares to

acquire 1.8 million shares of Allied Properties REIT;

- On March 31, 2009, the Company issued 434,000 common shares at a net

price of $14.66 as payment of the interest due to holders of the

5.50% convertible debentures. It is the current intention of the

Company to continue to satisfy its obligations to pay principal and

interest on these convertible debentures by the issuance of common

shares.

- Convertible debentures totalling $6.3 million in principal were

converted at the option of the holder resulting in the issuance of

approximately 232,000 common shares

SUBSEQUENT EVENT HIGHLIGHTS

Financing Completed

The Company completed one secured financing transaction for gross proceeds of $10.5 million at an interest rate of 6.4% and a term to maturity of 10 years.

Acquisitions

- On April 15th, 2009 the Company acquired an 8.44 acre piece of land

for future development. The land is located on Laird Drive in

Toronto, Ontario. The purchase price of $7.7 million, including

closing costs, was satisfied in cash.

- On May 12, 2009 the Company expects to close the acquisition of an

11,000 square foot building leased to Shoppers Drug Mart located on

St-Denis Street, in Montreal, QC. The purchase price of $3.5 million,

including closing costs, will be satisfied in cash.

Quarterly Dividend

The Company announced that it will pay a second quarter dividend of $0.32 per common share on July 9, 2009 to shareholders of record on June 26, 2009.

Equity One

Subsequent to quarter end, Equity One issued and sold approximately 6.7 million common shares of its common stock in an underwritten public offering at a price of USD$14.30 per share that the Company did not participate in. Concurrently with the public offering, Equity One also issued and sold approximately 2.5 million shares of its common stock to an affiliate of its largest shareholder, Gazit-Globe, Ltd., at the public offering price in a private placement. The public offering and the concurrent private placement generated net proceeds of approximately USD$126.2 million. As a result, the Company's share in Equity One was diluted to 16.4% from 18.4%.

OUTLOOK

Over the past several years First Capital Realty has made significant progress in growing its business and generating accretive growth in funds from operations while enhancing the quality of its portfolio.

The current environment remains extremely competitive, however the competition seems to have shifted to the capital side of the Company's business. Both debt and equity markets are challenging relative to pricing currently being asked by the property vendors. The Company will continue to selectively acquire properties that are well-located and of high quality, where they add strategic value and/ or operating synergies provided they will be accretive to FFO over the long term, and equity and debt capital can be priced and committed to maintain conservative leverage.

Development and redevelopment activities continue to provide the Company with opportunities to grow within its existing portfolio of assets. Once completed, these activities typically generate higher returns on investment.

With respect to acquisitions of both income-producing and development properties, the Company will continue to focus on maintaining the sustainability and growth potential of rental income to ensure that among other things, refinancing risk is minimized. This is particularly important in the current environment of increasing cost and scarcity of capital.

Specifically, Management will focus on the following four areas to achieve its objectives in 2009:

- same property net operating income growth, taking into account

maintaining high occupancy;

- development and redevelopment activities;

- increasing efficiency and productivity of operations; and

- careful capital allocation to decrease dependence on capital markets.