Firm Capital Apartment REIT Provides Strategic Review Update, Q2/2025 and YTD Results

Strategic Review Update - The Trust has been undergoing a strategic review process since November 15, 2022, aimed at maximizing unitholder value [1] - The Board will assess matters quarterly to determine potential distributions of excess income, net proceeds from asset sales, or reinvestment strategies [2] Earnings Summary - For the three months ended June 30, 2025, the Trust reported a net loss of approximately $51.7 million, compared to a loss of $73.9 million for the previous quarter and a loss of $2.8 million for the same period in 2024 [4] - The net income before fair value adjustments for the same period was approximately $265.5 million, an increase from $167.1 million in the previous quarter [4] - Funds from Operations (FFO) for the three months ended June 30, 2025, were $350.5 million, up from $238.1 million in the previous quarter [4] - Adjusted Funds from Operations (AFFO) for the three months ended June 30, 2025, were $300.7 million, compared to $197.4 million in the previous quarter [4] Asset Sales and Financial Transactions - The Trust sold 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 provided seller financing of $4.0 million for a property sale in Florida, generating a minimum return of 9% that has escalated to 15% [5] - A joint venture property in Maryland was sold for $15.9 million, with the Trust receiving approximately $1.1 million from the net sale proceeds [5] - A joint venture in Hartford, Connecticut, refinanced its existing mortgage, resulting in net proceeds of $2.2 million, of which $1.7 million was repaid to the Trust [5] Financial Performance Comparison - Excluding non-cash fair value adjustments, net income for the three months ended June 30, 2025, was approximately $0.27 million, compared to $0.17 million in the previous quarter and a loss of $0.37 million in the same period last year [6] - For the six months ended June 30, 2025, net income was approximately $0.43 million, compared to a loss of $0.43 million for the same period last year [6] - AFFO for the six months ended June 30, 2025, was approximately $0.5 million, compared to a loss of $0.4 million for the same period last year [6]