Firm Capital American Realty Partners Trust Announces Accretive Trust Unit Redemption and NCIB Activity to Date
July 24 2020 - 5:01PM
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 TRUSTFirm 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.
For further information, please contact: |
|
|
Eli DadouchPresident & Chief Executive Officer(416)
635-0221 |
Sandy PoklarChief Financial Officer(416) 635-0221 |
|
For Investor Relations information, please
contact: |
|
Victoria MoayediDirector, Investor Relations(416)
635-0221 |
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