/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, May 16, 2022
/CNW/ - Firm Capital Property Trust ("FCPT" or the
"Trust"), (TSX: FCD.UN) is pleased to announce that it has
entered into an agreement with a syndicate of underwriters led by
Canaccord Genuity and TD Securities, as joint bookrunners, to issue
to the public 2,820,000 trust units (the "Trust Units") of
FCPT at a price of $7.10 per Trust
Unit (the "Issue Price") for gross proceeds of approximately
$20 million (the "Offering").
The Trust has also granted the underwriters an over-allotment
option to purchase up to an additional 423,000 Trust Units at the
Issue Price exercisable, in whole or in part, at any time and from
time to time until 30 days following the closing of the Offering,
to cover over-allotments (if any). If the over-allotment option is
exercised in full, the gross proceeds of the Offering will be
approximately $23 million.
The Trust Units will be issued pursuant to a prospectus
supplement that will be filed with the securities regulatory
authorities in all provinces of Canada under the Trust's base shelf prospectus
dated January 10, 2022 and may also
be offered by way of private placement into the United States pursuant to Rule 144A under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"). The net proceeds of the Offering will be used
to repay indebtedness and for working capital and general trust
purposes.
Since the beginning of 2021, the Trust has completed
$210.6 million in acquisitions
(including closing costs and joint arrangement interests),
comprised of three industrial acquisitions totaling 460,820 square
feet, one retail property totaling 11,256 square feet, 395
multi-residential apartment units and 423 manufactured housing
pads. The Trust's pro rata portion of the acquisitions were
$147.3 million (including closing
costs).
The Trust intends to make monthly cash distributions to
Unitholders of record on the last business day of each month.
The current indicated monthly cash distribution is $0.0433 (annualized $0.52) per Unit. The Trust has increased
its distribution nine times in nine years, representing a
cumulative increase of 48.6% since the Trust's inception in
2012.
The Offering is scheduled to close on or about May 25, 2022, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the TSX.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The
securities being offered have not been, and will not be, registered
under the U.S. Securities Act, or any state securities laws, and
may not be offered or sold in the United
States unless an exemption from registration is
available.
ABOUT FIRM CAPITAL PROPERTY TRUST (TSX:
FCD.UN)
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 co-own a diversified property
portfolio of multi-residential, flex industrial, net lease
convenience retail, and core service provider professional space.
In addition to stand alone 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.
For the complete financial statements, Management's Discussion
& Analysis and supplementary information, please visit
www.sedar.com or the Trust's website at www.firmcapital.com
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. 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. These risks
include, but are not limited to, risks associated with the ability
to satisfy regulatory, stock exchange and commercial closing
conditions of the Offering, the uncertainty associated with
accessing capital markets and the risks related to FCPT's business,
including those identified in FCPT's annual information form for
the year ended December 31, 2021
under the heading "Risks and Uncertainties" (a copy of which may be
obtained at www.sedar.com). 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 Trust 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 Trust Units have not been, and will not be
registered under the U.S. Securities Act, 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.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) 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.
SOURCE Firm Capital Property Trust