/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
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.
DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE
PLAN
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.
ABOUT FIRM CAPITAL PROPERTY 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.
FORWARD LOOKING INFORMATION
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.
NON-IFRS MEASURES
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 www.sedar.com.
SOURCE Firm Capital Property Trust