TORONTO, May 10, 2019 /CNW/ - Firm Capital American Realty
Partners Corp. (the "Company"), (TSXV: FCA.U), (TSXV: FCA)
is pleased to announce that it has engaged legal and tax advisors
to explore the possibility of converting the Company into a real
estate investment trust or "REIT" structure (a "REIT") by the end
of fiscal 2019.
The Company believes a conversion into a REIT would enhance
long-term shareholder value by: (i) expanding the Company's
investor base and investment profile with both retail and
institutional investors as a REIT structure represents the
preferred Canadian structure to own income producing real estate;
(ii) enhancing comparability with the Company's peers; (iii)
providing a more efficient vehicle to deliver the benefits of real
estate debt and equity investing from the Company's business to
investors; and (iv) enhancing shareholder value by maximizing cash
distributions to investors in the most tax efficient way possible.
A REIT structure would not result in a change in the Company's
current strategy, portfolio or operations.
Any reorganization of the Company into a REIT will be subject to
customary conditions, including the approval of the shareholders of
the Company. The Company will make a further announcement when the
detailed terms of a reorganization are approved by the Board of
Directors.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. is a U.S. focused real
estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture partnership
with local industry expert partners who retain property management
responsibilities; and
- Mortgage Debt Investments: Real estate debt and
equity lending platform in major cities across the United States, focused on providing all
forms of bridge mortgage loans and joint venture capital.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
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 in this news release include, but are not limited to,
statements with respect to the Company's intention
to explore a reorganization of its current structure into
a REIT structure. There is no assurance that the Company will
proceed with this reorganization within the timeframe set forth
above or at all. 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 Company holds properties; volatility of real
estate prices; inability to complete the Company's single family
property disposition program, debt repayments or debt restructuring
in a timely manner; 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 Company to implement its business
strategies; competition; currency and interest rate fluctuations
and other risks, including those described in the Company'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 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 Company is available
at www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Corp.