Firm Capital Property Trust · TSX:FCD.UN
Firm Capital Property Trust — Investor Presentation (November 2023)
25 slides from Firm Capital Property Trust's investor presentation, November 2023
Slide 1: Firm Capital Property Trust Investor Presentation – Q3 2023
TSX: FCD.UN Diversified Canadian Real Estate Investments Inception Date: Nov. 2012 Firm Capital Property Trust Investor Presentation – Q3 2023
Slide 2: Content
Content INTRODUCTION 3 APPENDICES: HISTORY 4 ACQUISITION HISTORY 19 FIRM CAPITAL ADVANTAGE 5 BOARD OF TRUSTEES 20 INVESTMENT HIGHLIGHTS 6 MANAGEMENT TEAM 21 BENEFIT TO UNITHOLDERS 7 CONTACT INFORMATION 22 TARGETED ASSET CLASSES 8 DISCLAIMER 23 PORTFOLIO OVERVIEW 9 TENANT SUMMARY 10 DISCIPLINED EQUIT
Slide 3: Introduction
Introduction Firm Capital operates as a boutique real estate and financial services equity investment company deploying capital opportunistically between debt and equity in the real estate private and public markets across Canada and the U.S. Operating in the same industry for over 35 years Firm Cap
Slide 4: History
History Since inception in 1988, Firm Capital has established an exceptional track record demonstrated by past performance and prides itself on its risk management abilities to protect and preserve capital, while acting as a disciplined investor. PROFICIENT SERVICES PROVIDED BY FIRM CAPITAL: Mortgag
Slide 5: Firm Capital Advantage
Firm Capital Advantage Investing Integrity EXPERIENCE MATTERS Experienced team managing debt and real estate throughout a real estate cycle 35+ year track record with management industry experience in excess of 100 years 1 DIRECT INVESTMENTS DISCIPLINED INVESTING Strong alignment of interest through
Slide 6: Investment Highlights
Investment Highlights • 10.46%* distribution yield • Trades at 35%* discount to NAV • +90% Return of Capital expected for 2023 distributions (prior to capital gains on asset sales) Stable & Growing Cash Flows • Increased distributions 9 times over the last 10 years, rising from $0.35/Unit per annum
Slide 7: Benefit to Unitholders
Benefit to Unitholders Liquidity • Daily trading volume in excess of 16,300 units per day • Debt to GBV approximately 53% (52% Q2) • Approximately $19.0MM available on credit facility • Refinanced all 2023 mortgage maturities except for one $2 million mortgage maturing in December 2023 and working d
Slide 8: Targeted Asset Classes
Targeted Asset Classes) The Trust Owns the Following Asset Classes: Multi-Residential & Grocery / Service Retail Industrial Manufactured Home Communities % of NOI 58% 28% 14% Disciplined Investing ● Capital Preservation 8
Slide 9: Portfolio Overview
Portfolio Overview Portfolio by Province Portfolio by Asset Class (by NOI) (by NOI) Portfolio is Diversified Across Geographies, Asset Classes and Tenants Disciplined Investing ● Capital Preservation 9
Slide 10: Tenant Summary
Tenant Summary Largest Tenant Contributes 10.8% of Net Rent and Top 10 Tenants Comprise 31.1% of Net Rent Disciplined Investing ● Capital Preservation 10
Slide 11: Disciplined Equity Strategy
Disciplined Equity Strategy Equity Financings & Unit Issue Price ($ millions, except unit price data) Gross Proceeds Raised Unit Price $7.40 $7.00 $7.10 $6.75 $6.90 $6.40 $6.40 $6.25 $6.25 $6.25 $6.40 $6.00 $45.6 $5.90 $5.60 $5.30 $5.35 $5.40 $5.00 $5.10 $28.8 $4.90 $23.3 $23.0 $20.0 $4.40 $3.90 $11
Slide 12: Annualized Total Return on Investment
Annualized Total Return on Investment Since Inception, a $100 Investment in FCPT Would be Worth $274 Today! Note: Annualized Total Return on Investment includes stock price plus accumulated distributions from inception of November 29, 2012 to October 31, 2023. Disciplined Investing ● Capital Preserv
Slide 13: Portfolio Growth
Portfolio Growth ($ Millions) Disciplined Investing ● Capital Preservation 13
Slide 14: Distribution Growth
Distribution Growth Disciplined Investing ● Capital Preservation 14
Slide 15: Net Asset Value Growth
Net Asset Value Growth ($ per unit) Disciplined Investing ● Capital Preservation 15
Slide 16: Tax Deferral Opportunity
Tax Deferral Opportunity The Trust is highly tax efficient with a Return of Capital component. TAX YEAR 2022 2021 2020 RETURN OF CAPITAL 91% 48% 100% CAPITAL GAINS 9% 52% 0% 100% 100% 100% CAPITAL GAINS @ 50% TAX 4.4% 26% 0% RETURN OF CAPITAL 91% 48% 100% TOTAL TAX EFFICIENCY 96% 74% 100% Discipline
Slide 17: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights ($ millions, except per unit or % amounts) Quarter Ended Quarter Ended Quarter Ended Metric Sept. 30, 2023 Jun. 30, 2023 Sept. 30, 2022 NOI $9.0 $9.1 $9.0 AFFO/Unit $0.114 $0.102 $0.108 NAV/Unit $7.46 $7.62 $7.51 Distributions/Unit $0.130 $0.130 $0.130 Quarterly AFFO pay
Slide 18: 2023 Outlook
2023 Outlook • Property portfolio continues to perform well: o Strong NOI growth in Montreal and Waterloo industrial portfolios and non-rent controlled residential portfolio; o Stable growth in grocery anchored retail portfolio. • Current rental rates are significantly discounted from prevailing mar
Slide 19: 2023 Outlook
2023 Outlook • Moving forward, we will continue to monitor and assess the impacts of the economy that affect our portfolio performance. The current inflationary environment, which has shown some signs of cooling is still expected to remain above the central bank’s target interest rate going into 202
Slide 20: Appendices
APPENDICES 1. Acquisition History 2. Board of Trustees 3. Management Team 4. Contact Information 5. Disclaimer Disciplined Investing ● Capital Preservation 19
Slide 21: Acquisition History
Acquisition History Acquisition Asset Class Acquisition Date GLA (sq. ft.) Based on FCPT % Interest2 FCPT Interest Acquired (%) Acquisition Price (@100%, millions) Bridgewater, NS Retail Nov-2012 46,903 100% $9.1 Brampton, ON Retail Nov-2012 36,137 100% $11.4 Hanover, ON Retail Nov-2012 19,874 100%
Slide 22: Board of Trustees
Board of Trustees Stanley Goldfarb • CEO of Goldfarb Management Services Limited Chairman, Independent Trustee • Chairman & Director of Firm Capital Mortgage Investment Corporation (TSX: FC) • Director of Mortgage Investment Corporation (TSX:FC) • Chairman & Trustee of Firm Capital Apartment REIT (T
Slide 23: Management Team
Management Team • Managing Director - Firm Capital Realty Partners Inc. since October 2008 Robert McKee • President & CEO of Firm Capital Property Trust (TSX: FCD.UN) President & CEO • Former Trustee of True North Apartment REIT (TSX:TN.UN) • Formerly with TD Securities - Real Estate Investment Bank
Slide 24: Contact Information
Contact Information OUR CORE PRINCIPLES TRUST INNOVATION RELATIONSHIPS Our partners, investors and Firm Capital brings an Firm Capital builds strong, long- clients can trust Firm Capital to innovative approach to term relationships with its execute on our commitment. structuring a transaction. partn
Slide 25: Disclaimer
Disclaimer This presentation is for informational purposes only and not intended for solicitation. This presentation may not provide full disclosure of all material facts relating to the investment and or security being offered. If applicable, Investors should read the most recent Financial Reports
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