Mr. Robert McKee reports

FIRM CAPITAL PROPERTY TRUST COMPLETES $38.2 MILLION MORTGAGE REFINANCING OF POINTE-CLAIRE MULTI-RESIDENTIAL PROPERTY AND PROVIDES STABILITY AND COMPELLING VALUE

Firm Capital Property Trust has closed a $38.2-million mortgage refinancing of its 100-per-cent-owned multiresidential property located in Pointe-Claire, Que. The CMHC insured mortgage has a 3.69% fixed interest rate, 40-year amortization and a ten-year term. The previous bridge mortgage had a 7.02% effective interest rate. As a result of the refinancing, the Trust will reduce its annual interest expense by approximately $1.3 million representing a savings of $0.035 per unit.

The Trust has now refinanced all 2023 maturities except for one $2.4 million mortgage.

BALANCE SHEET STABILITY

The Trust is focused on maintaining a strong balance sheet to mitigate risks:

A conservative 52% debt to gross book value with $15.5 million of availability under its revolving credit facilities. The Trust has five unencumbered properties to address further capital requirements if needed. This financial flexibility provides the Trust with significant liquidity to fund its operations and capital programs without needing to raise additional equity; and

Mortgages totaling approximately $60 million refinanced on the Trust's industrial properties in December of 2022 and January of 2023 have seven year terms maturing in 2029 and 2030.

COMPELLING VALUE

The Trust is currently trading at a significant 30% discount to its current $7.65/Unit NAV. In the second quarter of 2022, the board and management team wrote down the NAV from $8.27/Unit to $7.52/Unit, by increasing capitalization rates on its portfolio;

9.9% distribution yield is anticipated to be largely a return of capital for 2023;

Trustees own 9.9% of the Trust's Units and have a direct ownership interest in over 50% of the Trust's properties, which demonstrates a strong alignment of interests; and

The Trust has a portfolio of 75 properties, of which 9 are 100% owned by the Trust with the balance being in partnership with REIT industry leaders and private partnerships with management, Trustees and other partners.

ABOUT FIRM CAPITAL PROPERTY TRUST (TSX:FCD.UN)

Firm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust's plan is to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides liquidity to those selling owners and professional management for those remaining as partners. Firm Capital Realty Partners Inc., through a structure focused on an alignment of interests with the Trust sources, syndicates and property and asset manages investments on behalf of the Trust.

We seek Safe Harbor.