Firm Capital Apartment REIT Provides Strategic Review Update, Q4/2024 and 2024 Results

Core Viewpoint - Firm Capital Apartment Real Estate Investment Trust is undergoing a strategic review to dispose of its remaining wholly owned assets and evaluate future uses for the Trust [1][2] Financial Performance - For the three months ended December 31, 2024, the Trust reported a net loss of $126,074 compared to a net income of $807,897 for the previous quarter and a net loss of $469,539 for the same period in 2023 [4] - The net income before fair value adjustments for the same period was $140,008, showing a slight decrease from $142,916 in the previous quarter and a loss of $339,306 in the same period last year [4] - Funds from Operations (FFO) for the three months ended December 31, 2024, was $202,009, down from $252,334 in the previous quarter and a loss of $869,210 in the same period last year [4] - Adjusted Funds from Operations (AFFO) for the three months ended December 31, 2024, was $156,015, consistent with the previous quarter and an improvement from a loss of $317,857 in the same period last year [4] Strategic Review Progress - The Trust has successfully disposed of four of its six wholly owned assets for gross proceeds of approximately $71.6 million, with net sale proceeds of about $28 million used for debt repayment [5] - The Trust has repaid $60.7 million in debt, including $13.7 million in convertible debentures and $5.1 million in a bridge loan [5] - The Trust has two remaining wholly owned assets in Houston, Texas, which are actively being marketed [7] Joint Venture and Investment Updates - The Trust completed the sale of a joint venture property in Maryland for $15.9 million, resulting in net proceeds of approximately $4.1 million, of which the Trust received about $1.1 million due to its 25% ownership [7] - A joint venture investment in Hartford, Connecticut, refinanced its mortgage, generating net proceeds of $2.2 million, which allowed for a repayment of $1.7 million owed to the Trust [8] - The Trust holds three preferred capital investments with a gross principal balance of approximately $9.5 million, earning interest rates of 10%, 12%, and 9% across different portfolios [8] Net Asset Value - The Trust reported a Net Asset Value (NAV) of $6.57 per Trust Unit (CAD $9.36), which includes disposition costs of assets held for sale [2]