Firm Capital Mortgage Investment Corporation · TSX:FC
Firm Capital Mortgage Investment — Firm Capital American Realty Partners — Investor Presentation (October 2017)
28 slides from Firm Capital Mortgage Investment's investor presentation, Oct 4, 2017
Slide 1: Debt & Equity Investing in U.S. Real Estate
Debt & Equity Investing in U.S. Real Estate Investor Presentation October 4, 2017 DISCIPLINED INVESTING ● CAPITAL PRESERVATION
Slide 2: Agenda
Agenda • Investment Highlights • Business Overview • Investment Strategy • Market Opportunity • Real Estate Investment Profile • Experienced Team • Financial Profile DISCIPLINED INVESTING ● CAPITAL PRESERVATION 2
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS DISCIPLINED INVESTING ● CAPITAL PRESERVATION 3
Slide 4: Investment Highlights
Investment Highlights • Unique Status as Canada’s Only Exchange Traded Debt & Equity Investor in U.S. Real Estate • The Company provides investors with exposure to debt and equity investments in U.S. real estate in major markets and primarily involving multi-family residential properties • Innovativ
Slide 5: Investment Highlights
Investment Highlights • Experienced Manager with a Strong Track Record of Creating Value • The Firm Capital organization has a 30-year track record of delivering superior investment returns to institutional and retail investors across all parts of the real estate capital structure • Firm Capital man
Slide 6: Investment Highlights
Investment Highlights • Compelling Multi-Family Residential Sector Fundamentals • Tenant demand remains strong as a result of the continued expansion of the U.S. economy and low vacancy is expected to support continued rent growth in multi-family residential • Attractive Growth-Oriented Yield • Annu
Slide 7: Business Overview
BUSINESS OVERVIEW DISCIPLINED INVESTING ● CAPITAL PRESERVATION 7
Slide 8: Business Overview
Business Overview • The Company, based in Toronto, Ontario, is a Canadian public reporting issuer with U.S. dollar and Canadian dollar denominated shares that trade on the TSXV under the symbols FCA.U and FCA, respectively • The predecessor Company, while historically focused on multi-family and sin
Slide 9: Investment Strategy
INVESTMENT STRATEGY DISCIPLINED INVESTING ● CAPITAL PRESERVATION 9
Slide 10: Investment Strategy
Investment Strategy The Company’s investment strategy is executed The Company is positioned to participate in all through the following investment platforms: levels of the capital stack for investing in U.S. real estate: • Income Producing Real Estate Investments: • Acquisition of income producing r
Slide 11: Investment Strategy
Investment Strategy III Note: For Connecticut, Maryland, and New York, which represent co-ownership investments, # of units are shown at 100% share DISCIPLINED INVESTING ● CAPITAL PRESERVATION 11
Slide 12: Market Opportunity
MARKET OPPORTUNITY DISCIPLINED INVESTING ● CAPITAL PRESERVATION 12
Slide 13: Market Opportunity
Market Opportunity • Strong US. Economic Outlook • U.S. economy carries strong momentum throughout 2017 • Employment growth remains strong in a tight labour market • Wealth effect provides new fuel for consumer confidence and consumption III IV Source: Marcus & Millichap; ** Forecast; ❖ Through Octo
Slide 14: Market Opportunity
Market Opportunity • Strong U.S. Multi-Family Residential Sector Outlook • Tenant demand remains strong as a result of the continued expansion of the U.S. economy • Low vacancy supports continued rent growth Source: Marcus & Millichap; * Forecast; ** Through 3Q DISCIPLINED INVESTING ● CAPITAL PRESER
Slide 15: Market Opportunity
Market Opportunity • Strong U.S. Multi-Family Residential Sector Outlook (continued) • Favourable demographics create a structural lift to the rental market • Strong household growth is in balance with home construction II I I VI II Source: Marcus & Millichap; * Forecast DISCIPLINED INVESTING ● CAPI
Slide 16: Market Opportunity
Market Opportunity • Attractive Environment for Transaction Sourcing & Execution • The U.S. multi-family residential market is highly liquid, fragmented, and majority privately owned with over $158.4 billion of transaction volume in 2016 II Source: Marcus & Millichap; * Trailing 12 months through 3Q
Slide 17: Market Opportunity
Market Opportunity • Attractive Environment for Transaction Sourcing & Execution (continued) • The U.S. mortgage origination market for multi-family residential is highly liquid, with government agencies serving as the primary source of originations ($105 billion in 2016), due to their efficient exe
Slide 18: Real Estate Investment Profile
REAL ESTATE INVESTMENT PROFILE DISCIPLINED INVESTING ● CAPITAL PRESERVATION 18
Slide 19: Real Estate Investment Profile
Real Estate Investment Profile • The Company’s current portfolio of investment properties, comprised of 1,015 multi-family residential units across 46 apartment buildings in 5 U.S. states, provides a platform for further external growth opportunities Investment Properties at June 30, 2017 (US$ in mi
Slide 20: Experienced Team
EXPERIENCED TEAM DISCIPLINED INVESTING ● CAPITAL PRESERVATION 20
Slide 21: Experienced Team
Experienced Team • The Company benefits from a management team and a Board of Directors that provide: • An exceptional network of real estate and finance contacts across the U.S.; • Significant public market governance experience, including with Firm Capital’s other publicly traded companies; • Exte
Slide 22: Experienced Team
Experienced Team Board of Directors Geoffrey Bledin • Serves on Board Directors of Firm Capital Mortgage Investment Corporation and Board of Trustees of Firm Chairman Capital Property Trust (Independent) • Past President and CEO of The Equitable Trust Company from 1990 to 2007 • Former Partner with
Slide 23: Financial Profile
FINANCIAL PROFILE DISCIPLINED INVESTING ● CAPITAL PRESERVATION 23
Slide 24: Net Asset Value Summary
Net Asset Value Summary (US$ in millions, except per share amounts) Reported at June Dispositions Debt Repayment Acquisition Pro Forma at 30, 2017 (1)(2) (3) (4) June 30, 2017 Assets Investment $46.0 ($4.1) - - $41.9 Properties Properties Held $18.2 ($1.1) - - $17.1 for Sale Equity $7.2 - - $5.1 $12
Slide 25: Debt Maturity Summary
Debt Maturity Summary Debt Maturities at June 30, 2017 (US$ in millions) (1) $30.0 $24.5 $25.0 $23.5 $20.0 $15.0 $12.5 $10.0 $7.8 $5.0 $4.0 $7.9 $6.9 $0.0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 & Beyond Unsecured Convertible Debentures Mortgages on Owned Investment Properties Mortgag
Slide 26: Yield Summary
Yield Summary OWNED INVESTMENT PROPERTIES Realized Investment Yields (1) Realized Value Appreciation (2) 16.0% 60.0% 56.0% 14.1% 14.0% 50.0% 12.0% 42.8% 11.0% 10.4% 40.0% 10.0% 8.6% 31.4% 8.0% 7.5% 30.0% 6.9% 6.0% 20.0% 4.0% 10.0% 2.0% 0.0% 0.0% Sunrise, FL Austin, TX #1 Austin, TX #2 Sunrise, FL Au
Slide 27: Yield Summary
Yield Summary CO-OWNED INVESTMENT PROPERTIES Targeted Leveraged Investment Returns (1) Targeted Return on Investment (1) 40.0% 250.0% 221.7% 35.0% 33.9% 200.0% 184.4% 30.0% 28.9% 27.8% 25.0% 22.3% 150.0% 20.0% 18.2% 15.7% 100.0% 15.0% 72.6% 10.0% 9.0% 8.0% 8.0% 50.0% 5.0% 0.0% 0.0% New York, NY Bren
Slide 28: Disclaimer
Disclaimer This presentation contains forward-looking information and statements (collectively, “Forward-Looking Statements”) within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this presentation, and other statements concerning Firm
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