FCD.UN Firm Capital Property Trust

Firm Capital Property Trust (“FCPT” or the “Trust”), (TSX: FCD.UN) is pleased to report its financial results for the three and nine months ended September 30, 2022.

PROPERTY PORTFOLIO HIGHLIGHTS The portfolio consists of 66 commercial properties with a total gross leasable area (“GLA”) of 2,572,736 square feet, five multi-residential complexes comprised of 599 units and two Manufactured Home Communities comprised of 423 units. The portfolio is well diversified and defensive in terms of geographies and property asset types, with 55% of NOI (37% of asset value) comprised of grocery anchored retail followed by industrial at 28% of NOI (31% of asset value). In addition, the portfolio is well diversified in terms of geographies with 40% of NOI (41% of asset value) comprised of assets located in Ontario, followed by Quebec at 37% of NOI (33% of asset value).

TENANT DIVERSIFICATION The portfolio is well diversified by tenant profile with no tenant currently accounting for more than 14.1% of total net rent. Further, the top 10 tenants are comprised of large national tenants and account for 34.8% of total net rent.

NORMAL COURSE ISSUER BID GENERATES 8.3% RETURN ON INVESTMENT On July 14, 2022, the Trust announced that the Toronto Stock Exchange ("TSX") accepted a notice for Normal Course Issuer Bid (“NCIB”) with respect to its outstanding Trust Units. For the three months ended September 30, 2022, the Trust repurchased 147,200 units for net proceeds of approximately $0.9 million. The Trust Units were purchased under the NCIB at a Weighted Average Price of $6.23/Trust Unit for an implied distribution buy-back yield of 8.3%.

$12.5 MILLION IN MORTGAGE REFINANCING ACTIVITY On July 5, 2022, The Trust closed on the refinancing of a first mortgage with a Canadian Chartered Bank on a multi-tenant residential property located in Ottawa, Ontario for $5 million. Terms of the mortgage are at a fixed interest rate of 4.75% and a 30 year amortization with a 2 year term.

On August 8, 2022, the Trust closed on the refinancing of a first mortgage with a Canadian Chartered Bank on a manufactured homes community located in Calgary, Alberta for $7.5 million. Terms of the mortgage are fixed at 4.42%, 7 year term, 30 year amortization and with a maturity date of July 9, 2029.

REVOLVING OPERATING FACILITY EXTENSION On October 12, 2022, The Trust extended the $19 million Revolving Operating Facility with the Bank until October 31, 2024. All other terms of the Revolving Operating Facility remained substantially unchanged.

Q3/2022 HIGHLIGHTS Key highlights for the three months ended September 30, 2022 are as follows:

• Net income (ex. fair value adjustments) was approximately $4.4 million, a 5.8% increase over Q3/2021;
• $7.51 Net Asset Value (“NAV”) per Unit;
• Net Operating Income (“NOI”) was approximately $8.9 million, 12% increase over Q3/2021;
• Same Store NOI increased 1% over Q3/2021 and 5% over 3Q/2021;
• Adjusted Funds From Operations (“AFFO”) was approximately $4.0 million, inline over Q2/2022;
• Commercial occupancy was 95.1%, Multi-Residential occupancy was 92.7% while Manufactured Homes Communities was 99.5%;
• Conservative leverage profile with Debt / Gross Book Value (“GBV”) at 51%; and
• The Trust declared and approved monthly distributions in the amount of $0.04333 per Trust Unit for Unitholders of record on January 31, 2023, February 28, 2023, and March 31, 2023, payable on or about February 15, 2023, March 15, 2023, and April 17, 2023, respectively.

See chart below for additional information:

	Three Months						Nine Months
	Sep 30, 2022		Sep 30, 2021		Change		Sep 30, 2022		Sep 30, 2021		Change
Rental Revenue	$	13,278,554	$	11,861,170	12%		$	39,773,730	$	34,476,108	15%
NOI - IFRS Basis		8,985,669		8,055,672	12%			26,291,889		22,317,145	18%
NOI - Cash Basis		8,936,862		8,012,051	12%			25,910,970		22,117,166	17%
Same-asset NOI		7,856,367		7,769,865	1%			22,017,795		21,015,029	5%
Net Income		5,132,990		9,826,281	(48%)			(9,847,918)		51,821,589	(119%)
FFO		5,227,250		5,162,097	1%			14,937,358		11,632,698	28%
AFFO		4,049,626		4,331,519	(7%)			12,117,463		11,355,522	7%
Total Assets							$	631,403,138	$	558,741,635	13%
Total Mortgages								306,310,058		237,331,275	29%
Bank Indebtedness								18,325,621		13,179,119	39%
Unitholders' Equity								294,428,855		293,725,736	0%
Units Outstanding (000s)								37,402		34,011	10%
FFO Per Unit	$	0.139	$	0.152	(8%)		$	0.419	$	0.370	13%
AFFO Per Unit	$	0.108	$	0.128	(16%)		$	0.340	$	0.362	(6%)
Distributions Per Unit	$	0.130	$	0.128	2%		$	0.383	$	0.383	(0%)
FFO Payout Ratio		93%		84%	936 bps			91%		103%	(1,170) bps
AFFO Payout Ratio		121%		100%	2,050 bps			113%		106%	655 bps
Wtd. Avg. Interest Rate -
Mort. Debt								3.5%		3.3%	20 bps
Debt to GBV								51%		45%	661 bps
GLA - Commercial, SF								2,572,736		2,241,013	15%
Units - Multi-Res								599		464	29%
Units - MHCs								423		423	0%
Occupancy - Commercial								95.1%		95.6%	(55) bps
Occupancy - Multi-Res								92.7%		93.7%	(104) bps
Occupancy MHCs								99.5%		99.4%	13 bps
Rent PSF - Retail							$	18.54	$	17.79	4%
Rent PSF - Industrial							$	7.37	$	6.96	6%
Rent per month - Multi-Res							$	1,310	$	1,057	23%
Rent per month - MHCs							$	599	$	510	18%

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

DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE PLAN The Trust has in place a Distribution Reinvestment Plan (“DRIP”) and Unit Purchase Plan (the “UPP”). 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 Units, without incurring brokerage fees or commissions. Under the terms of the UPP, 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 have not participated in the DRIP or UPP to date and own approximately 8% of the issued and outstanding trust units of the Trust.

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 own as well as 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.

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. 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 of the Firm Capital Property Trust 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.

Certain financial information presented in this press release reflect certain non- International Financial Reporting Standards (“IFRS”) financial measures, which include NOI, Same Store NOI, FFO and AFFO. These measures are commonly used by real estate investment entities as useful metrics for measuring performance and cash flows, however, they do not have standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other real estate investment entities. These terms are defined in the Trust’s Management Discussion and Analysis (“MD&A”) for the year ended December 31, 2021 and period ended September 30, 2022, as filed on www.sedar.com.

For further information, please contact:
Robert McKee		Sandy Poklar
President & Chief Executive Officer		Chief Financial Officer
(416) 635-0221		(416) 635-0221
For Investor Relations information, please contact:
Victoria Moayedi
Director, Investor Relations
(416) 635-0221