SECOND QUARTER 2009 HIGHLIGHTS:

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($ millions, except 30 June 30 June Percentage

per share amounts) 2009 2008 Change

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Property rental revenue $ 109.7 $ 101.9 7.7%

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Net operating income (NOI) $ 71.6 $ 64.4(2) 11.2%

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Funds from operations (FFO)

excluding dilution loss on

Equity One investment(1) $ 39.1 $ 34.7(2) 12.7%

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FFO per diluted share excluding

dilution loss on Equity One

investment(1) $ 0.42 $ 0.40(2) 5.0%

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Weighted average diluted shares for

FFO (000's) 92,622 87,269 6.1%

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Adjusted funds from operations (AFFO) $ 38.8 $ 35.0(2) 10.9%

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AFFO per diluted share $ 0.38 $ 0.37(2) 2.7%

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Weighted average diluted shares for

AFFO (000's) 101,020 95,899 5.3%

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Enterprise value $ 4,060 $ 4,328

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Debt to aggregate assets 54.8% 53.6%

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Debt to total market capitalization 56.4% 46.8%

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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 $67 million in acquisitions, development activities and

property improvements.

- Completed 219,000 square feet of gross leasable area from

acquisitions, development and redevelopment.

- Acquired two income-producing properties totalling 53,000 square feet

and one property comprising 8.4 acres of land held for future

development.

- 9.3% same property NOI growth; 5.0% same property NOI growth

excluding redevelopment and expansion.

- 13.1% increase on rate per square foot on 343,000 square feet of

renewal leases.

- Occupancy of 96.1% which compares to 96.4% at December 31, 2008.

Vacancy includes 1.0% of space held for redevelopment.

- Gross new leasing totalled 317,000 square feet including development

and redevelopment coming on line; lease closures totalled 120,000

square feet and closures for redevelopment totalled 11,000 square

feet.

- Average lease rate per occupied square foot increased by 3.9% to

$15.37 at June 30, 2009 compared to $14.80 in the prior year second

quarter.

- Completed new leasing on existing space totalling 151,000 square feet

at an average rate of $21.70 per square foot.

SIX MONTHS HIGHLIGHTS:

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($ millions, except 30 June 30 June Percentage

per share amounts) 2009 2008 Change

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Property rental revenue $ 220.1 $ 203.7 8.1%

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Net operating income (NOI) $ 139.9 $127.7(2) 9.6%

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Funds from operations (FFO)

excluding dilution loss on

Equity One investment(1) $ 77.3 $ 69.2(2) 11.7%

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FFO per diluted share excluding

dilution loss on Equity One

investment(1) $ 0.84 $ 0.82(2) 2.4%

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Weighted average diluted shares for

FFO (000's) 91,901 84,316 9.0%

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Adjusted funds from operations (AFFO) $ 75.7 $ 66.6(2) 13.7%

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AFFO per diluted share $ 0.75 $ 0.72(2) 4.2%

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Weighted average diluted shares for

AFFO (000's) 100,606 92,793 8.4%

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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".

- Invested $112 million in acquisitions, development activities and

property improvements.

- 377,000 square feet of gross leasable area coming on line from

development and redevelopment activities and acquisitions.

- Acquired three income-producing properties totalling 80,000 square

feet, one property held for future development and two land parcels

adjacent to existing properties comprising a total of 9.12 acres of

land held for future development.

- 7.3% same property NOI growth; 3.4% excluding redevelopment and

expansion space.

- 11.7% increase on 612,000 square feet of renewal leases.

- Gross new leasing totalled 591,000 square feet including development

and redevelopment coming on line; lease closures totalled 401,000

square feet and closures for redevelopment totalled 97,000 square

feet.

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

24.8% versus all lease closures.

- Completed new leasing on existing space totalling 301,000 square feet

at an average rate of $19.54 per square foot.

"We're pleased with the continuing strong performance of our portfolio and believe it's the result of the quality of our properties and our well executed asset and property management strategies", said Dori J. Segal, President & C.E.O., "We have taken advantage of a number of acquisition opportunities so far this year and we are carefully looking at a few more."

FINANCIAL HIGHLIGHTS

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.

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 second quarter of 2008 of $0.2 million.

Funds from Operations

Funds from operations excluding the dilution loss on Equity One investment totalled $39.1 million or $0.42 per diluted common share for the three months ended June 30, 2009 compared to $34.7 million or $0.40 per diluted common share in the same period for the prior year. FFO excluding the dilution loss on Equity One investment for the six months ended June 30, 2009 totalled $77.3 million or $0.84 per diluted common share, and increased from $69.2 million or $0.82 per diluted common share in the same period in 2008.

The Company's funds from operations including the dilution loss on Equity One investment totalled $38.4 million or $0.41 per diluted common share for the three months ended June 30, 2009. FFO for the six months ended June 30, 2009 totalled $76.7 million or $0.83 per diluted common share.

The increase in FFO for the quarter and year-to-date 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.

Adjusted Funds from Operations

Management views AFFO as an effective measure of cash generated from operations. AFFO for the three months ended June 30, 2009 totalled $38.8 million or $0.38 per diluted common share compared to $35.0 million or $0.37 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 received 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 Three months ended Six months ended

per share amounts) June 30 June 30

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2009 2008 2009 2008

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Net income $ 9,093 $ 10,158(1) $ 18,175 $ 18,540(1)

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Earnings per share

(basic and diluted) $ 0.10 $ 0.12(1) $ 0.20 $ 0.22(1)

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Weighted average

common shares -

diluted (000's) 92,622 87,269 91,901 84,316

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

standards.

Net income for the three and six months ended June 30, 2009 was $9.1 million or $0.10 per share (basic and diluted) and $18.2 million or $0.20 per share (basic and diluted). This compares to $10.2 million or $0.12 per share (basic and diluted) and $18.5 million or $0.22 per share (basic and diluted), respectively, for the three and six months ended June 30, 2008. The decrease in net income is primarily due to increased amortization expense, decreased interest and other income, and decreased income from Equity One offset by an increase in NOI resulting from development projects coming on line and same property NOI growth.

Interest and other income for the six months ended June 30, 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 second quarter of 2009, the Company invested $47 million in active development projects and improvements to existing properties bringing the six month total investment to $85 million. Development of 147,400 square feet was turned over to tenants for fixturing in the second quarter of 2009 and leased at an average rate of $19.77 per square foot. The Company also turned over to tenants for fixturing 18,500 square feet of redeveloped space at an average rate of $33.00 per square foot. Year-to-date, development of 234,600 square feet was brought on line with 228,900 square feet leased at an average rate of $19.55 per square foot. Year-to-date the Company completed 61,400 square feet of redeveloped space at an average rate of $21.27 per square feet.

During the second quarter of 2009, the Company acquired an 11,000 square foot retail property in Montreal, Quebec, a 42,000 square foot retail property in Edmonton, Alberta and a property held for future development on 8.4 acres of land in Toronto, Ontario. Total investment in the retail properties and property held for development amounted to $20.0 million. Through the first six months of 2009, the Company invested $27 million in the acquisition of three income-producing shopping centres comprising 80,400 square feet and one property held for development and two land parcels adjacent to existing properties comprising a total of 9.1 acres of commercial land for future development.

OPERATING HIGHLIGHTS

Net operating income for the three months ended June 30, 2009 totalled $71.6 million, compared to $64.4 million in the second quarter of 2008, an increase of $7.2 million or 11.2%. Same property NOI increased by 9.3%, generating growth in NOI of $5.6 million during the second quarter of 2009, primarily attributed to redevelopment and expansion space coming on-line, increases in lease rates and occupancy, a lease termination payment from a tenant of $1.8 million and prior year operating cost and tax recovery adjustments booked in the quarter.

Excluding the lease termination fee, same property NOI growth for the three months ended June 30, 2009 would have been 6.3%. Same property NOI for the second quarter of 2009, excluding expansion and redevelopment space increased by $2.9 million or 5.0% over the same prior year period.

Net operating income for the six months ended June 30, 2009 totalled $139.9 million, compared to $127.7 million for the same period in 2008, an increase of $12.2 million or 9.6%. Same property NOI increased by 7.3%, generating growth in NOI of $8.8 million, primarily attributed to redevelopment and expansion space coming on- line, increases in lease rates and occupancy, a lease termination payment and prior year operating cost and tax recovery adjustments booked in Q2, 2009.

Excluding the lease termination fee, same property NOI growth for the six month period ended June 30, 2009 would have been 5.8%. Same property NOI for the six months ended June 30, 2009, excluding expansion and redevelopment space increased by $4.0 million or 3.4% over the same prior year period. Excluding expansion and redevelopment and the lease termination fee, same property NOI growth for the six month period ended June 30, 2009 would have been 1.9%.

Year-to-date, acquisitions completed in 2009 and 2008 contributed $2.0 million to NOI, while greenfield development activities contributed a further $5.1 million.

Gross new leasing in the second quarter totalled 317,000 square feet including development and redevelopment coming on line. The Company achieved a 13.1% increase on 343,000 square feet of renewal leases over the expiring lease rates. For the six months ended June 30, 2009, gross new leasing totalled 591,000 square feet. Renewal leasing totalled 612,000 square feet with an 11.7% increase over expiring rates.

The average rate per occupied square foot at June 30, 2009 increased to $15.37. This compares to an average rate of $15.24 per square foot at March 31, 2009.

Portfolio occupancy at June 30, 2009 of 96.1% compares to 96.0% at March 31, 2009 and 95.5% at June 30, 2008.

FINANCING AND CAPITAL MARKET HIGHLIGHTS

For the three months ending June 30, 2009, First Capital Realty closed on the following financings:

- Four secured financing transactions for gross proceeds of $54.8

million at a weighted average interest rate of 6.7% and a weighted

average term to maturity of 10 years.

For the six months ending June 30, 2009, First Capital Realty closed on the following financings:

- Nine secured financing transactions for gross proceeds of

$135.3 million at a weighted average interest rate of 6.3% and a

weighted average term to maturity of 8 years.

- 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, which had a maturity date of

March 2010.

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

Bank of Nova Scotia maturing January 2012.

First Capital Realty issued 2.1 million common shares for net proceeds of $35.9 million in the first two quarters of 2009 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.

- Convertible debentures totalling $6.3 million in principal were

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

approximately 231,000 common shares

SUBSEQUENT EVENT HIGHLIGHTS

Issuance of Shares

On August 5, 2009 the Company completed a bought deal common share issue generating total gross proceeds of $59.0 million from the issuance of 3,450,000 common shares at a price of $17.10 per common share. Each Unit issued consists of one common share of First Capital Realty, and two-thirds of a common share purchase warrant expiring October 2010 at an exercise price equal to $17.53.

Dividend-In-Kind

On August 14, 2009, First Capital Realty completed its previously announced special dividend-in-kind of the Company's interest in Gazit America Inc. (formerly known as First Capital America Holding Corp.) ("Gazit America"). Gazit America is a Canadian company that, indirectly, owns the Company's shares in Equity One (approximately 14.1 million shares), the debt secured by the Equity One shares (approximately US$100 million) and certain other liabilities, including subordinated debt owing to First Capital Realty in the amount of approximately US$36 million. As a result of this special dividend, First Capital Realty no longer has any interest in Gazit America, or the shares in Equity One owned by it.

With the closing of the spin-off, Gary Samuel currently a director with First Capital Realty, will be resigning. Mr. Samuel is joining the Board of Gazit America.

"Gary has been one of the longest serving independent directors on our Board," said Chaim Katzman, Chairman, First Capital Realty, "We thank Gary for his outstanding dedication, experience and competence, as well as his overall contribution to the success of our Company. We wish him all the best in his future endeavours."

Acquisitions

On July 15, 2009 the Company acquired Langford Centre, a 60,000 square foot shopping centre and a 0.5 acre adjacent land parcel located on Goldstream Avenue, in Victoria, BC. The purchase price of $10.3 million, including closing costs, was satisfied in cash and the assumption of $5.6 million of debt at a rate of 4.4% maturing November 2010.