Mr. Sandy Poklar reports

FIRM CAPITAL APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES UNDERTAKING REGARDING INCENTIVE UNIT OPTION PLAN

Firm Capital Apartment Real Estate Investment Trust's board of trustees has approved and executed a binding undertaking regarding its incentive unit option plan.

In response to constructive feedback from unitholders, provided in connection with the reapproval of the plan being sought at the trust's annual and special meeting scheduled for June 23, 2026, and to ensure strict alignment with investor interests, the undertaking establishes a definitive pricing floor for any option grants. Specifically, the trust has committed that no option will be issued, amended or repriced with an exercise price below the greater of:

1. The market price at the time of the grant or amendment; or
2. $5.58 (U.S.) per trust unit, representing the trust's last reported net asset value per unit as of March 31, 2026.

The trust intends to formally amend the plan to codify this restriction. If regulatory or plan provisions dictate that unitholder approval is required for this amendment, such approval will be sought at the trust's next scheduled annual or special meeting of unitholders following the coming June 23 meeting.

Once formally implemented, this pricing restriction can only be removed, amended or waived by an affirmative vote of the unitholders. Furthermore, the undertaking ensures that these dilution protections remain binding on any successor entity where current trust unitholders retain a continuing equity interest.

A copy of the executed undertaking will be filed and available under the trust's profile on SEDAR+.

We seek Safe Harbor.