Firm Capital Mortgage Investment Corporation · TSX:FC
Firm Capital Mortgage Investment — Firm Capital American Realty Partners — Investor Presentation (December 2018)
33 slides from Firm Capital Mortgage Investment's investor presentation, December 2018
Slide 1: Debt & Equity Investing in U.S. Real Estate
DEBT & EQUITY INVESTING IN U.S. REAL ESTATE INVESTOR PRESENTATION Q3 2018 DISCIPLINED INVESTING ● CAPITAL PRESERVATION
Slide 2: Table of Contents
Table of Contents • Investment Highlights • Business Overview • Investment Strategy • Market Opportunity • Investment Profile • Experienced Team • Shareholder Value Creation • Appendix – Investment Overviews Note: All figures in US$, unless otherwise indicated DISCIPLINED INVESTING ● CAPITAL PRESERV
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 for apartments • Recently Raised Attractive Growth-Oriented Yield • Q
Slide 7: Business Overview
BUSINESS OVERVIEW DISCIPLINED INVESTING ● CAPITAL PRESERVATION 7
Slide 8: Business Overview
Business Overview • Firm Capital American Realty Partners Corp. (“FCA” or 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 Co
Slide 9: 2018 Highlights
2018 Highlights Equity Financing Debt Debt Financings Dispositions & Investments Repayments DEBT REPAYMENT DISPOSITION US$8,373,000 US$8,325,000 Convertible Disposition of 74 Unsecured single-family rental homes Debentures FLORIDA, GEORGIA, PARTIAL REPAYMENT NEW JERSEY DEBT FINANCING DEBT REPAYMENT
Slide 10: 2017 Highlights
2017 Highlights Debt Equity Raises Investments Dispositions Repayments DISCIPLINED INVESTING ● CAPITAL PRESERVATION 10
Slide 11: Investment Strategy
INVESTMENT STRATEGY DISCIPLINED INVESTING ● CAPITAL PRESERVATION 11
Slide 12: Investment Strategy
Investment Strategy The Company’s investment strategy is The Company is positioned to participate in all executed through the following investment levels of the capital stack for investing in U.S. platforms: real estate: • Income Producing Real Estate Investments: • Acquisition of income producing r
Slide 13: Investment Profile
INVESTMENT PROFILE DISCIPLINED INVESTING ● CAPITAL PRESERVATION 13
Slide 14: Investment Profile
Investment Profile NEW YORK Properties Units Loan Value NEW YORK 3 130 $9.5 Properties Units Asset Value 8 129 $38.3 CONNECTICUT Properties Units Asset Value 14 462 $35.4 NEW JERSEY Properties Units Asset Value 7 189 $18.7 MARYLAND Properties Units Asset Value 1 116 $13.7 TEXAS Properties Units Asse
Slide 15: Investment Profile
Investment Profile • The Company’s portfolio of investment properties is comprised of 1,442 residential units across 34 apartment properties in 6 U.S. states and provides a broad platform for further external growth opportunities • In addition, the Company’s mortgage investments include a preferred
Slide 16: Experienced Team
EXPERIENCED TEAM DISCIPLINED INVESTING ● CAPITAL PRESERVATION 16
Slide 17: 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 18: Experienced Team: Board of Directors
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 19: Shareholder Value Creation
SHAREHOLDER VALUE CREATION DISCIPLINED INVESTING ● CAPITAL PRESERVATION 19
Slide 20: Key Highlights
Key Highlights INCREASED EARNINGS STRONG INVESTMENT PORTFOLIO PERFORMANCE • $4.1 million net loss to +$1.7 million net income • Net Rental Income: Increased to $0.6 million • $2.11 net loss per share to $0.28 EPS • Equity Investment Income: nil to $0.7 million • $1 million negative AFFO to +$0.2 mil
Slide 21: Reported NAV & Dividends Per Share
Reported NAV & Dividends Per Share • Since current management took over operations, NAV has increased by an 11% CAGR since Q3/2017 • Further Dividends were also implemented and later increased to $0.059/share commencing in 2019 $0.05625 $0.05625 $0.05625 $0.05625 $0.01875 $8.31 $8.10 $7.95 $8.00 $7.
Slide 22: Quarterly Net Income, FFO & AFFO
Quarterly Net Income, FFO & AFFO • Between Q4/2015 to Q3/2018, FCA's earnings have increased from a $4.1 million net loss to a +$1.7 million net income • FFO & AFFO has increased from a negative $1.0 million to $0.2 million $1.8 $1.4 $1.7 $0.2 $0.3 $0.2 $0.1 $0.1 $0.2 $ $0.2 ($1($1 .2) .0) ($1.0) ($
Slide 23: Quarterly EPS, FFO/Share & AFFO/Share
Quarterly EPS, FFO/Share & AFFO/Share • Earnings per share has increased from a $2.11 net loss per share to $0.28 earnings per share • FFO per share has increased from negative $0.50 per share in Q4/2015 to $0.03 per share in Q3/2018 • AFFO per share has increased from negative $0.53 per share in Q4
Slide 24: Investment Overviews
Appendix INVESTMENT OVERVIEWS DISCIPLINED INVESTING ● CAPITAL PRESERVATION 24
Slide 25: Equity Partnership Investment: New York City
EQUITY PARTNERSHIP INVESTMENT: NEW YORK CITY ⚫ December 2016, Firm Capital acquired a 50% joint venture ownership 8 APARTMENT BUILDINGS - in a portfolio of 8 apartment buildings, comprised of 127 residential 127 RESIDENTIAL UNITS & 2 RETAIL UNITS units and 2 retail units, located within Manhattan’s
Slide 26: Preferred Capital Loan: New York City
PREFERRED CAPITAL LOAN: NEW YORK CITY ⚫ December 2017, Firm Capital issued a $12 million preferred capital loan for an initial 3-year term to a private real estate investment firm based in New York City, to finance the acquisition of a portfolio of 3 apartment buildings comprised of 130 residential
Slide 27: Equity Partnership Investment: Bridgeport, CT
EQUITY PARTNERSHIP INVESTMENT: BRIDGEPORT, CT ⚫ August 2017, Firm Capital acquired a 50% joint venture ownership in a portfolio of 14 apartment buildings comprised of 462 residential units 14 APARTMENT BUILDINGS - 462 UNITS in Bridgeport, CT − The joint venture partner is a private real estate inves
Slide 28: Equity Partnership Investment: Irvington, NJ
EQUITY PARTNERSHIP INVESTMENT: IRVINGTON, NJ ⚫ February 2018, Firm Capital acquired a 50% joint venture ownership 7 APARTMENT BUILDINGS - in a portfolio of 7 apartment buildings comprised of 184 residential 184 RESIDENTIAL UNITS & 5 RETAIL UNITS units and 5 retail units in Irvington, NJ − The joint
Slide 29: Equity Partnership Investment: Houston, TX
EQUITY PARTNERSHIP INVESTMENT: HOUSTON, TX ⚫ February 2018, Firm Capital acquired a 50% joint venture ownership in a community with 12 apartment buildings comprised of 235 units in 12 APARTMENT BUILDINGS - 235 UNITS Houston, TX − The joint venture partner is a private real estate investment firm Acq
Slide 30: Equity Partnership Investment: Brentwood, MD
EQUITY PARTNERSHIP INVESTMENT: BRENTWOOD, MD ⚫ January 2017, Firm Capital acquired a 50% joint venture ownership in a portfolio of 8 apartment buildings comprised of 115 residential units 8 APARTMENT BUILDINGS - 115 UNITS in Brentwood, MD, in close proximity to Washington, DC − The joint venture par
Slide 31: Direct Investments: Florida & Texas
Direct Investments: Florida & Texas Summerfield Apartments, Sunrise, FL • 100% ownership • 7 buildings and 153 units • 46.8% loan-to-value (includes supplemental loan) • Historical stabilized occupancy at +/- 95% South Congress Commons, Austin, TX • 100% ownership • 4 buildings and 68 units • 31.4%
Slide 32: For more information please contact
For more information please contact: Eli Dadouch Vice Chairman, President & CEO E: edadouch@firmcapital.com T: 416.635.0221 Sandy Poklar CFO DISCIPLINED INVESTING ● CAPITAL PRESERVATION E: spoklar@firmcapital.com T: 416.635.0221
Slide 33: 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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