TORONTO, Nov. 19, 2025 (GLOBE NEWSWIRE) -- Firm Capital Apartment Real Estate Investment Trust (the "Trust"), (TSXV:FCA), (TSXV:FCA) is pleased to provide a Strategic Review update, accretive Texas property refinancing and financial results for the three and nine months ended September 30, 2025:
STRATEGIC REVIEW UPDATE Since November 15, 2022, the Trust has been under a strategic review process to identify, evaluate and pursue a range of strategic alternatives with the goal of maximizing unitholder value (the "Strategic Review"). By way of update, the Board of Trustees of the REIT have confirmed that no further growth will occur in the US under the current platform. As such, the Board will pursue the following strategy: (i) sell and exit all current investments, and return cash to Unitholders, and/or (ii) sell and exit all current investments and explore the sale or re-utilization of the Trust for another property and/or platform.
To date the Trust has accomplished the following:
Sold four of six wholly owned assets for gross proceeds of approximately $71.6 million;
Net sale proceeds of approximately $28 million were used for debt repayment;
As part of the transaction to sell the Trust's only property located in Florida (May 20, 2024) the Trust agreed to provide seller financing of $4.0 million that generates a minimum 9% return and has since escalated to 15%;
Completed the sale (January 31, 2024) of one of its joint venture properties located in Maryland for $15.9 million (100% of the property). Net sale proceeds were approximately $4.1 million, of which the Trust received approximately $1.1 million given its 25% ownership in the property; and
Hartford, Connecticut joint venture refinanced existing first mortgage in excess of the original principal balance, resulting in net proceeds of $2.2 million available to the joint venture (October 1, 2024). The joint venture repaid the preferred investment owing to the Trust of $1.7 million and made a partial return of common equity of approximately $0.1 million to the Trust.
It is the Trust's current intention not to disclose developments with respect to the Strategic Review unless and until it is determined that disclosure is necessary or appropriate, or as required under applicable securities laws.
NET ASSET VALUE ("NAV") $5.84 PER TRUST UNIT (CAD $8.18): Including disposition costs of assets held for sale, the Trust reported NAV of $5.84 per Trust Unit (CAD $8.18).
ACCRETIVE TEXAS PROPERTY REFINANCING
The Trust recently refinanced its $19.1 million, 8.25% fixed rate, interest only first mortgage maturing on February 4, 2026 with a new variable, interest only, $19.1 million first mortgage with a Canadian Chartered Bank maturing on September 8, 2027. The interest rate on the new first mortgage is based on the One Month US Secured Overnight Financing Rate ("SOFR") plus 2.25%. This equates to an interest rate of 6.59% for a 166 basis point interest rate savings. The savings on the new mortgage equates to AFFO of approximately $0.3 million or $0.04 per unit annually. This property, along with the Trust's other Texas property, is currently being held for sale.
EARNINGS
Excluding non-cash fair value adjustments, net income for the three months ended September 30, 2025 was approximately $0.13 million, in comparison to the $0.27 million reported for the three months ended June 30, 2025 and $0.14 million reported for the three months ended September 30, 2024. For the nine months ended September 30, 2025 and excluding non-cash fair value adjustments, net income was approximately $0.57 million, in comparison to the $0.29 million loss reported for the same period last year; and
AFFO for the three months ended September 30, 2025 was $0.26 million, in comparison to the $0.3 million reported for the three months ended June 30, 2025 and the $0.16 million reported for the three months ended ...
