Firm Capital American Realty Partners Trust Announces Accretive Trust Unit Redemption and NCIB Activity to Date

TORONTO, July 24, 2020 (GLOBE NEWSWIRE) -- Firm Capital American Realty Partners Trust (the “Trust”), (TSXV: FCA.UN), (TSXV: FCA.U) is providing the following update regarding an accretive redemption of its Trust Units and activity to date under its Normal Course Issuer Bid (“NCIB”).

Pursuant to its Declaration of Trust, on July 21, 2020, the Trust received from an institutional investor a redemption request to cancel 686,200 Trust Units, representing approximately 8.0% of the Trust Units of the Trust for a redemption price of CAD$5.41 per Trust Unit (approximately US$4.00 per Trust Unit) for total gross proceeds of approximately CAD$3.7 million (US$2.8 million).

In addition, pursuant to the Trust’s previously announced NCIB, the Trust has purchased to date for cancellation 119,100 Trust Units of the Trust for total gross proceeds of approximately US$0.7 million.

Based on the current quarterly distribution per unit in place, the Trust will generate annual cash savings of approximately US$0.2 million. Further, the redemption and NCIB activity is accretive to the Trust’s Net Asset Value or NAV which will increase by approximately 5.4% or $0.49 per Trust Unit to US$9.44 per Trust Unit from US$8.95 per Trust Unit.

In addition, the Trust has purchased for cancellation Convertible Unsecured Debentures under its NCIB having a face amount of CAD$61,000 at a weighted average price of $78.00 per Debenture, or CAD$47,580.

ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS TRUST
Firm Capital American Realty Partners Trust is a U.S. focused real estate investment trust that pursues income producing real estate and mortgage debt investments through the following platforms:

Income Producing Real Estate Investments:

• Core Markets Wholly Owned Investments: The Trust is focused on growing its wholly owned multi-residential property portfolio in large core markets with attention to cities located in Texas, Florida, New Jersey, North and South Carolina, Colorado, Georgia and New York.
• Core and Non-Core Markets: Joint Venture Investments: The Trust will also purchase in both core and non-core markets where it lacks knowledge or experience, partial ownership interests in multi-residential properties with industry leaders as partners. These partners bring both expertise in operations and knowledge, especially in non-core markets. The Trust strives to have a minimum 50% ownership interest and will fund the equity in a combined preferred/common equity investment structure. The preferred equity provides a fixed rate of return for investors in the Trust, resulting in a secured structure ahead of the partners ownership interest, while the common equity provides investors an upside return for investors as the investment meets its targeted objectives.
  
  The Trust currently has ownership interests in a total of 2,073 apartment units diversely located in Florida, Connecticut, Texas, New York, New Jersey, Georgia and Maryland.

Mortgage Debt Investments:
The Trust, using Firm Capital’s 30-year plus experience as a leader in the mortgage lending industry, provides bridge lending of mortgage and preferred capital secured by residential/multi-residential properties.

FORWARD LOOKING INFORMATION

Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Trust holds properties; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Trust to implement its business strategies; competition; currency and interest rate fluctuations and other risks, including those described in the Trust’s public disclosure documents on SEDAR at www.sedar.com.
       
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
       
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Additional information about the Trust is available at www.firmcapital.com or www.sedar.com.