Mr. Robert McKee reports

FIRM CAPITAL PROPERTY TRUST ANNOUNCES ACQUISITION OF A 50 PER CENT INTEREST IN TWO MANUFACTURED HOME COMMUNITIES FOR $5.7-MILLION

Firm Capital Property Trust (FCPT) has acquired a 50-per-cent interest in a 56-site manufactured housing community called SunPark Parkhill Estates for $3.1-million, and has acquired a 50-per-cent interest in a 58-site manufactured housing community called SunPark Skyview Estates for $2.6-million. The acquisition price for 100 per cent of the properties is approximately $5.7-million, excluding transaction costs. The trust's portion of the acquisition price is approximately $2.85-million.

Parkhill, located in Peterborough, Ont., is situated on 15.9 acres of land and is currently 100 per cent occupied. Parkhill is conveniently located within a 15-minute drive to downtown Peterborough and is alongside Highway 7 and Highway 28. Parkhill was developed in 1968 and is an owner-managed community owned by the current ownership group since 1980. Parkhill features private water and sewers, paved roads, street lighting, and above-ground electrical infrastructure provided by Hydro One. Parkhill was acquired at a 6.8-per-cent capitalization rate.

Skyview, located in Trenton, Ont., is located on 5.3 acres of land and is currently 100 per cent occupied. Skyview is conveniently located close to schools, shopping, downtown restaurants and entertainment with easy access to Highway 401. Skyview is an original owner-managed community owned by the current ownership group and developed in 1980. Skyview features city water and sewer, paved roads, street lighting, and above-ground electrical infrastructure provided by Hydro One. Skyview was acquired at a 6.2-per-cent capitalization rate.

The properties will initially be financed through existing cash resources of the trust. Seven-year debt financing for approximately 65 per cent of the purchase price is expected to be closed during the first quarter of 2023. Based on the current interest rate environment the all in rate would be approximately 4.75 per cent.

The trust will participate through its existing joint venture arrangement with SunPark Communities, LP, such that the trust will own 50 per cent of the property and SunPark the remaining 50 per cent. SunPark is partially affiliated with members of the board and senior management of the trust. This co-investment is consistent with the trust's objective of being aligned with strong real estate industry partners and represents its third and fourth acquisition with the partnership.

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 co-own a diversified property portfolio of multiresidential, flex industrial and net lease convenience retail. 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.