First Capital REIT

2. Interest Rate Risk: REITs often use debt to finance their operations, which makes them vulnerable to changes in interest rates. An increase in interest rates can lead to higher borrowing costs, thereby reducing the company's profitability.

3. Tenant Default Risk: First Capital REIT's revenue is heavily reliant on rental income from its tenants. If any of its key tenants face financial difficulties or go bankrupt, the company's financial performance could be negatively impacted.

4. Geographical Risk: The majority of First Capital REIT's properties are located in Canada, making it vulnerable to any economic or political changes specific to the country. Changes in local real estate markets, new regulations, or natural disasters can have a significant impact on the company's operations.

5. Property Market Risk: REITs are highly dependent on the performance of the real estate market. A decline in property values can lead to a decrease in the company's assets' value and potentially, its share price.

6. Competition: First Capital REIT operates in a highly competitive market, which can affect its ability to attract and retain tenants. Competitors are continuously developing new properties, offering attractive rental rates, and providing better amenities to lure tenants away from the company.

7. Capital Market Risk: The company's financial performance and growth plans are facilitated by its ability to raise capital through equity and debt financing. Any disruptions in the capital markets, such as a credit crunch, can limit the company's access to capital and hinder its growth prospects.

8. Regulatory Changes: As a REIT, First Capital REIT is subject to various regulations, including tax laws and compliance with securities laws. Changes in these laws and regulations can increase costs, limit growth opportunities, and negatively affect the company's financial performance.

9. Capital Structure Risk: The company's debt-to-equity ratio and the cost of debt can impact its profitability and cash flow. Higher levels of debt can increase interest expenses and reduce cash available for distribution to shareholders.

10. Interest in Related Party Transactions: First Capital REIT has several related party transactions, where the company transacts with entities that are under common control or influence. These transactions may raise concerns about conflict of interest and may negatively impact the company's financial performance and reputation if not managed properly.