Investor Presentation April 3, 2019 Firm Capital Property Trust REAL ESTATE EQUITY PARTNERS A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered to investors with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. DISCIPLINED INVESTING ● CAPITAL PRESERVATION
Overview • Firm Capital Property Trust (“FCPT” or the “Trust”) is a publicly (TSXV) listed REIT focused on a diversified real estate portfolio in Canada • Ticker Symbol: FCD.UN • FCPT focuses on stable distributions derived from succession and co-ownership acquisitions with strong industry partners • Partial acquisitions with industry leaders who retain property and asset management; • Co-ownerships with existing owner groups through partial acquisitions; and • Stand alone acquisitions • FCPT focuses on acquiring the following diversified asset classes: • Multi Residential • Industrial & Flex Industrial • Net Lease Convenience and Stand Alone Retail • Core Service Provider Professional / Healthcare Office • Over the past 25 years, Firm Capital has developed a significant track record of investing capital for both institutional and retail investors focused on real estate debt and equity 2 DISCIPLINED INVESTING • CAPITAL PRESERVATION
Targeted Asset Classes FCPT targets and owns the following diversified asset classes: Net Lease and Core Service Provider Industrial & Flex Standalone Multi-Residential Professional & Industrial Convenience Retail Healthcare Office % of NOI 1,2 77% 19% 3% 1% 1. Post close of the Dartmouth Acquisition and the January 2019 Acquisition 3 2. After giving effect for the Acquisition Portfolio DISCIPLINED INVESTING • CAPITAL PRESERVATION
Overview of FCPT Key Metrics Unit Price Performance $8.00 0.20 • Volume Price Ticker Symbol: FCD.UN • Current Trading Price: $6.57 $7.00 0.15 • Volume (millions) Unit Price (C$) Current Yield: 7.3% $6.00 0.10 • Market Capitalization: PF ~$156 million 1 • $5.00 0.05 Property Portfolio: PF ~$398 million 1 • Debt to GBV: PF ~58.8% 1 $4.00 - Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Investment Highlights Benefits to Unitholders • • NAV Growth Liquidity • • Distribution Increases Strong Balance Sheet • • Experienced Management Team Strong Tenant Quality • • Strong Alignment of Interests Compensation Based on Performance • Responsible Leverage • Track Record of Accretive Acquisitions 1. Includes the Dartmouth Acquisition, January 2019 Acquisition, March 2019 Private Placement, Acquisition Portfolio and the Offering 4 Note: As of April 2 nd , 2019 Source: Capital IQ DISCIPLINED INVESTING • CAPITAL PRESERVATION
Investment Highlights • Over the past 25 years, the Firm Capital Organization has developed a significant track record of investing capital for investors focused on real estate debt and equity Experienced Management Team • Management possesses a valuable set of skills and relationships that can be leveraged to the benefit of the Trust • Approximately 7.0% of Trust Units currently held by insiders • Senior management of the Trust and its trustees own, in partnership with the Trust, approximately Alignment of 21.6% of the real estate in which the Trust has a co-ownership interest Interests • Insiders of the Trust and First Capital are each investing $5 million in the Concurrent Private Placement • Upon closing of the Acquisitions, the Trust’s portfolio will be comprised of 75 income -producing Enhanced Scale properties with 2,228,381 square feet of GLA and 204 residential units (at the Trust’s share) located Through Accretive across Canada Acquisitions • The Acquisitions are expected to be immediately accretive to the Trust’s AFFO per Trust Unit • Since inception, net asset value per Trust Unit has increased from $4.84 per unit in 2012 to $7.10 per Trust Unit in the fourth quarter of 2018 (a 47% increase) • Fundamental The Trust has increased distributions six times over the last six years, rising from $0.35 per Trust Unit per annum to $0.48 per Trust Unit per annum Growth • A $100.00 investment in Trust Units in November 2012, assuming reinvested distributions, would be worth $208.25 as of March 29, 2019 • 7.5% distribution yield is attractive relative to comparable REITs/REOCs 1 Compelling • 2018 distribution qualified as 100% return of capital Investment Metrics • The Offering Price will represent a significant discount to the Trust’s net asset value 5 1. At the Offering Price; see comparable company analysis on page 33 DISCIPLINED INVESTING • CAPITAL PRESERVATION
Growth Strategy Internal • Tenant retention and tenant growth • Rental income growth • Montreal Industrial Portfolio NOI growth of ~33% from August 2013 to December 31, 2018 (since acquisition) • Development of excess density External • Partnering with industry leaders • Joint venture acquisition program and acquisitions of partial interests • Accretive stable income producing properties 6 DISCIPLINED INVESTING • CAPITAL PRESERVATION
Current Portfolio Overview 1 Portfolio Name Type Acq. Date GLA FCPT % Interest Acq. Purchase Price (@100%) Sq. Ft. (@ Trust Share) Bridgewater Retail Nov 29, 2012 46,707 100% $9,140,000 Brampton Retail Nov 29, 2012 36,167 100% $11,400,000 Hanover Retail Nov 29, 2012 19,874 100% $3,975,000 Pembroke Retail Nov 29, 2012 11,247 100% $1,700,000 Moncton Retail Nov 1, 2016 16,372 100% $4,700,000 Guelph Retail Nov 30, 2017 115,744 100% $26,025,000 Centre Ice Retail Jun 25, 2014 131,793 70% $32,175,000 Whitby Mall Retail / Office Jun 9, 2016 155,761 40% $35,750,000 Thickson Place Retail Sep 29, 2016 41,923 40% $39,500,000 Crombie Retail Feb 6, 2019 148,188 50% $83,200,000 Barrie Office Mar 19, 2013 39,495 100% $6,700,000 Montreal Industrial Aug 1, 2013 515,129 50% $48,200,000 Ferrier Industrial Oct 15, 2018 79,582 50% $11,000,000 Waterloo Industrial Jul 27, 2015 359,099 70% $43,250,000 Ottawa Multi-Residential Nov 11, 2014 135 units 50% $11,200,000 Portland Multi-Residential Jan 7, 2019 69 units 100% $10,700,000 Total / Wtd. Avg. 1,717,081 Sq. Ft. / 204 Units $378,615,000 7 1. Portfolio as at March 1, 2019 DISCIPLINED INVESTING • CAPITAL PRESERVATION
Alignment of Interests • FCPT has a true alignment of interest with its joint venture operating partners and senior management and Trustees • In addition to 7% of trust units being held by insiders, senior management and the Trustees also own in partnership with FCPT approximately 21.6% of the real estate in which it is in partnership • Equates to $65.1 million of the real estate at the time of purchase Joint Venture Name Acq. Price @ FCPT First Capital Crombie REIT FCPT Senior 100% (mm) Ownership Ownership Ownership Management and Trustee Ownership 50% 1 Montreal Industrial $59.2 50% - - 30% 1 Centre Ice $32.2 70% - - Morisset Properties $11.2 50% - - 50% Waterloo Industrial $43.3 70% - - 30% Whitby Mall / Thickson Place $72.3 40% 50% - 10% Crombie Joint Venture $83.2 50% - 50% - Total / Wtd. Avg. $301.3 52.6% 12.0% 13.8% 21.6% 8 1. Includes certain third party investors for up to 20% of senior management and Trustee’s ownership DISCIPLINED INVESTING • CAPITAL PRESERVATION
Crombie REIT Joint Venture Case Study $83 Million Retail Joint Venture Arrangement Seven Retail Properties Transaction Overview $41,600,000 (FCPT portion of the purchase price) Closed 1 st Quarter 2019 Firm Capital Property Trust entered into a 50% joint venture with Crombie REIT in seven retail properties anchored by Sobeys owned grocery stores and one anchored with Shoppers Drug Mart located in Alberta, Nova Scotia, Saskatchewan, Ontario and Quebec for $83.2 million ($41.6 million on a pro-rata basis) Joint Venture Partners 9 DISCIPLINED INVESTING • CAPITAL PRESERVATION
Disciplined Equity Strategy Equity Financings & Unit Price (C$ millions, except unit price data) Gross Proceeds Raised Unit Price $6.40 $6.25 $6.25 $6.25 $20.0 $6.00 $5.60 $5.35 $5.30 $11.0 $5.10 $5.00 $9.1 $9.0 $8.7 $7.3 $7.1 $6.4 $3.2 $3.0 Nov-12 Aug-13 Jan-14 Mar-15 Sep-15 Jul-16 Dec-17 Feb-18 May-18 Mar-19 Equity Issued At Successively Higher Prices 10 DISCIPLINED INVESTING • CAPITAL PRESERVATION
Total Return On Investment Since Inception, a $100 Investment in FCPT Would be Worth $208.25 Today! 1 $208.25 $100.00 2013 2014 2015 2016 2017 2018 2019 1. Date range from December 3, 2012 to March 29, 2019; assumes shares purchased at the offer price of $5.00 from the private placement closed on November 29, 2012 11 Source: Bloomberg DISCIPLINED INVESTING • CAPITAL PRESERVATION
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