Firm Capital Mortgage Investment Corporation · TSX:FC
Firm Capital Mortgage Investment — Firm Capital Property Trust — Investor Presentation (August 2024)
26 slides from Firm Capital Mortgage Investment's investor presentation, August 2024
Slide 1: Firm Capital Property Trust Investor Presentation – Q2 2024
TSX: FCD.UN Diversified Canadian Real Estate Investments Inception Date: November 2012 Firm Capital Property Trust Investor Presentation – Q2 2024
Slide 2: Content
Content INTRODUCTION 3 STEADY RENT INCREASES 19 HISTORY 4 2024 OUTLOOK 20 FIRM CAPITAL ADVANTAGE 5 APPENDICES: 21 INVESTMENT HIGHLIGHTS 6 ACQUISITION HISTORY 22 BENEFIT TO UNITHOLDERS 7 BOARD OF TRUSTEES 23 MORTGAGE RE-FINANCING & CONTRACTUAL OBLIGATIONS 8 MANAGEMENT TEAM 24 TARGETED ASSET CLASSES 9
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 • 9.42%* distribution yield • +90% Return of Capital expected for 2024 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 to $0.52/Unit per annum (a 49% inc
Slide 7: Benefit to Unitholders
Benefit to Unitholders Liquidity • Daily trading volume in excess of 29,000 units per day • Debt to GBV approximately 52% (52% Q1) • Approximately $19.0MM available on credit facility Strong Balance Sheet • The Trust has 2 unencumbered properties to address further capital requirements if needed. Th
Slide 8: Mortgage Re-Financing Update & Contractual Obligations
Mortgage Re-Financing Update & Contractual Obligations • At the beginning of 2024, the Trust had $92.1 million or 33% of its total mortgages, maturing in 2024. • On March 8, 2024, the Trust refinanced 7 retail properties that are part of the joint arrangement within the Crombie Retail Portfolio for
Slide 9: Targeted Asset Classes
Targeted Asset Classes) The Trust Owns the Following Asset Classes: Multi-Residential & Grocery / Service Retail Industrial Manufactured Home Communities % of NOI 56% 28% 16% Disciplined Investing ● Capital Preservation 9
Slide 10: Portfolio Overview
Portfolio Overview Portfolio by Province Portfolio by Asset Class (by NOI) (by NOI) Portfolio is Diversified Across Geographies, Asset Classes and Tenants Disciplined Investing ● Capital Preservation 10
Slide 11: Tenant Summary
Tenant Summary Top Ten Tenants = 30.6% of Net Rent Largest Tenant Contributes 11% of Net Rent and Top 10 Tenants Comprise 30.6% of Net Rent Disciplined Investing ● Capital Preservation 11
Slide 12: Disciplined Equity Strategy
Disciplined Equity Strategy Equity Financings & Unit Issue Price ($ 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 13: Annualized Total Return on Investment
Annualized Total Return on Investment Since Inception, a $100 Investment in FCPT Would be Worth $328 Today! Note: Annualized Total Return on Investment includes stock price plus accumulated distributions from inception of November 29, 2012 to July 31, 2024. Disciplined Investing ● Capital Preservati
Slide 14: Portfolio Growth
Portfolio Growth ($ Millions) Disciplined Investing ● Capital Preservation 14
Slide 15: Distribution Growth
Distribution Growth Disciplined Investing ● Capital Preservation 15
Slide 16: Net Asset Value Growth
Net Asset Value Growth ($ per unit) Disciplined Investing ● Capital Preservation 16
Slide 17: Tax Deferral Opportunity
Tax Deferral Opportunity The Trust is highly tax efficient with a Return of Capital component. TAX YEAR 2023 2022 2021 2020 RETURN OF CAPITAL 88% 91% 48% 100% CAPITAL GAINS 11% 9% 52% 0% 100% 100% 100% 100% CAPITAL GAINS @ 50% TAX 6.0% 4.4% 26% 0% RETURN OF CAPITAL 88% 91% 48% 100% TOTAL TAX EFFICIE
Slide 18: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights ($ millions, except per unit or % amounts) Quarter Ended Quarter Ended Quarter Ended Metric Jun. 30, 2024 Mar. 31, 2024 Jun. 30, 2023 NOI $9.7 $9.3 $9.1 AFFO/Unit $0.124 $0.120 $0.102 NAV/Unit $7.71 $7.62 $7.62 Distributions/Unit $0.130 $0.130 $0.130 Quarterly AFFO payou
Slide 19: Steady Rent Increases
Steady Rent Increases Six Months Ended Six Months Ended Jun. 30, 2024 Jun. 30, 2023 Investment Portfolio Rent Rent Change Retail(1) $19.10 $18.45 +4% Industrial(1) $8.50 $8.07 +5% Multi-Residential(2) $1,453 $1,331 +9% Manufactured Home Communities(2) $633 $587 +8% (1) Rent per square foot. (2) Rent
Slide 20: 2024 Outlook
2024 Outlook • Inflationary environment is easing; Bank of Canada rates cuts will reduce finance cost with at least a further 50 bps of easing expected for the balance of 2024. • Rental rate growth continues to mitigate higher finance costs on mortgage maturities. • Net Asset Value should continue t
Slide 21: Appendices
APPENDICES 1. Acquisition History 2. Board of Trustees 3. Management Team 4. Contact Information 5. Disclaimer Disciplined Investing ● Capital Preservation 21
Slide 22: 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 23: 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 24: 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 25: 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 26: 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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