Firm Capital Property Trust Announces Closing of $46 Million Co-Ownership Acquisition With First Capital Realty

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Firm Capital Property Trust Announces Closing of $46 Million Co-Ownership Acquisition With First Capital Realty

Canada NewsWire


TORONTO, July 9, 2019 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust"), (TSXV: FCD.UN) is pleased to announce that it has exercised and closed on its previously announced option to acquire a 50% non-managing interest in a grocery-anchored shopping center located in St. Albert, Alberta (the "Edmonton Property") from First Capital Realty Inc. and an affiliate thereof (collectively "First Capital"). The acquisition price for 100% of the Edmonton Property was approximately $46.4 million, excluding transaction costs. The Trust's portion of the acquisition price was approximately $23.2 million.

The Edmonton Property is a 105,358 square foot grocery and pharmacy anchored retail property (at a 100% interest) located in St. Albert, Alberta. The Edmonton Property includes high quality tenants including Safeway, CIBC, Scotiabank, among others. The Edmonton Property is approximately 98% occupied and has a remaining weighted average lease term ("WALT") of approximately 4.6 years. The Trust and First Capital have entered into a co-ownership arrangement such that the Trust and First Capital will each own half of the Edmonton Property. First Capital also property manages the Edmonton Property.

The Edmonton Property was financed through a combination of a new mortgage as well as cash on hand. The new mortgage is approximately $15.5 million (at the Trust's interest) for a 3.3% Weighted Average Interest Rate and a Term to Maturity of approximately 7.0 years.


The Trust has in place a Distribution Reinvestment Plan ("DRIP") and Unit Purchase Plan (the "Plan"). Under the terms of the DRIP, FCPT's unitholders may elect to automatically reinvest all or a portion of their regular monthly distributions in additional Trust Units, without incurring brokerage fees or commissions. Under the terms of the Plan, FCPT'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 own approximately 7% of the issued and outstanding Trust Units of the Trust.


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 own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to standalone 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.


This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties, including statements regarding: the accretion of the Edmonton Property to AFFO; the timing for completion, and the ability to complete, the acquisition; the pro forma composition of FCPT's portfolio upon completion of the acquisition of the acquisition; the entering into of a co-ownership agreement with First Capital; and the timing of and ability to obtain a new mortgage on the Edmonton Property. The forward-looking statements are based on certain key expectations and assumptions made by the Trust. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the Trust believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the Trust nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.


Certain terms used in this press release are not measures defined under International Financial Reporting Standards ("IFRS") as prescribed by the International Accounting Standards Board, do not have standardized meanings prescribed by IFRS and should not be compared to or construed as alternatives to profit/loss, cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. The Trust uses these measures to better assess the Trust's underlying performance and provides these additional measures so that investors may do the same. Details on non-IFRS measures are set out in the Trust's Management's Discussion and Analysis for the year ended December 31, 2018 and the Trust's Annual Information Form for the year ended December 31, 2018, which are both available on the Trust's profile at

SOURCE Firm Capital Property Trust

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