Mr. Robert McKee reports

FIRM CAPITAL PROPERTY TRUST REPORTS Q3/2023 RESULTS

Firm Capital Property Trust has released its financial results for the three and nine months ended Sept. 30, 2023.

Property portfolio highlights

The portfolio consists of 66 commercial properties with a total gross leasable area of 2,558,146 square feet, five multiresidential complexes composed of 599 units and four manufactured home communities composed of 537 units. The portfolio is well diversified and defensive in terms of geographies and property asset types, with 50 per cent of net operating income (42 per cent of asset value) composed of grocery-anchored retail followed by industrial at 28 per cent of NOI (32 per cent of asset value). In addition, the portfolio is well diversified in terms of geographies with 38 per cent of NOI (40 per cent of asset value) composed of assets located in Ontario, followed by Quebec at 37 per cent of NOI (33 per cent of asset value).

Tenant diversification

The portfolio is well diversified by tenant profile with no tenant currently accounting for more than 10.8 per cent of total net rent. Further, the top-10 tenants are composed of large national tenants and account for 31.1 per cent of total net rent.

Third quarter 2023 highlights

Key highlights for the three months ended Sept. 30, 2023, are as follows:

• Net loss was approximately $2.4-million, compared with $5.1-million net income recorded for the same period in 2022;
• $7.46 net asset value per unit;
• Net operating income was approximately $9.0-million, in line with the same period in 2022;
• Same-property NOI increased 2 per cent over Q3 2022 and 5 per cent year to date;
• Adjusted funds from operations were approximately $4.2-million, which is 4 per cent higher than the same period in 2022;
• Commercial occupancy was 95.9 per cent, and multiresidential occupancy was 96.0 per cent while manufactured homes communities was 99.6 per cent;
• The trust closed on a $38.2-million refinancing of its 100-per-cent-owned multiresidential property located in Pointe-Claire, Que.; the CMHC insured mortgage has a 3.69-per-cent fixed interest rate, 40-year amortization and a 10-year term;
• The trust announced its intention to make a normal course issuer bid with respect to its outstanding trust units during the 12-month period commencing July 18, 2023, and ending no later than July 17, 2024;
• Conservative leverage profile with debt/gross book value at 53 per cent;
• The trust declared and approved monthly distributions in the amount of 4.333 cents per trust unit for unitholders of record on Jan. 31, 2024, Feb. 29, 2024, and March 29, 2024, payable on or about Feb. 15, 2024, March 15, 2024, and April 15, 2024, respectively.

For the complete financial statements, management's discussion and analysis, and supplementary information, please visit SEDAR+ or the trust's website.

Distribution reinvestment plan and unit purchase plan

The trust has in place a distribution reinvestment plan and a unit purchase plan. Under the terms of the DRIP, Firm Capital Property's unitholders may elect to automatically reinvest all or a portion of their regular monthly distributions in additional units, without incurring brokerage fees or commissions. Under the terms of the UPP, Firm Capital Property's unitholders may purchase a minimum of $1,000 of units per month and maximum purchases of up to $12,000 per annum. Management and trustees have not participated in the DRIP or UPP to date, and own or control approximately 10 per cent of the issued and outstanding trust units of the trust.

About Firm Capital Property Trust

Firm Capital Property 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 has a plan to own, as well as to co-own, a diversified property portfolio of multiresidential, 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.