Firm Capital Apartment REIT Provides Strategic Review Update, Accretive Texas Property Refinancing and Q3/2025 Earnings

Executive Summary

• The Trust disclosed three‑month and nine‑month financial results ending September 30 2025, reporting net income of $0.13 M (three months) and $0.57 M (nine months), a material improvement from the prior year’s loss.
• Completed an accretive refinancing of its Texas property mortgage, swapping a $19.1 M 8.25% fixed‑rate loan for a variable‑rate loan at SOFR + 2.25%, saving ~166 bps and generating approximately $0.3 M AFFO annually.
• Provided an update on the ongoing strategic review, confirming that no further U.S. growth will occur under the current platform and outlining two possible exit strategies for existing assets.

Key Details

• Strategic Review Update
• Board confirmed cessation of US growth; future path: (i) sell/exit all investments and return cash to unitholders, or (ii) sell/exit and explore repurposing the Trust for another property/platform.
• To date: sold four of six wholly owned assets for ~ $71.6 M gross proceeds.

• Net sale proceeds (~ $28 M) used to repay debt.

• Asset Sale Highlights

• Florida property (sale May 20 2024): seller financing $4.0 M at minimum 9% (now 15%).
• Maryland JV property (sold Jan 31 2024 for $15.9 M, 100% of property); net proceeds ~$4.1 M, Trust received ~$1.1 M reflecting its 25% ownership.

• Hartford, CT JV refinance (Oct 1 2024): net proceeds $2.2 M; repaid preferred investment $1.7 M and returned common equity $0.1 M to the Trust.

• NAV

• Reported NAV of $5.84 per Trust Unit (CAD $8.18), inclusive of disposition costs for assets held for sale.

• Accretive Texas Property Refinancing

• Replaced $19.1 M, 8.25% fixed‑rate, interest‑only mortgage (maturing Feb 4 2026) with a variable‑rate, interest‑only loan of the same principal amount maturing Sep 8 2027.
• New rate: SOFR + 2.25% (≈6.59%), delivering ~166 bps interest savings.

• Savings translate to approximately $0.3 M AFFO or $0.04 per unit annually.

• Financial Results – Three Months Ended Sep 30 2025

• Net income (excluding non‑cash fair value adjustments): $0.13 M (vs. $0.27 M in Q2 2025 and $0.14 M in Q3 2024).

• AFFO: $0.26 M (vs. $0.30 M in Q2 2025, $0.16 M in Q3 2024).

• Financial Results – Nine Months Ended Sep 30 2025

• Net income (excluding non‑cash fair value adjustments): $0.57 M (vs. a $0.29 M loss same period prior year).

• AFFO: $0.76 M (vs. a $0.24 M loss same period prior year).

• Key Financial Metrics (USD) | Metric | 3‑Month Sep 30 2025 | 9‑Month Sep 30 2025 | |--------|-------------------|--------------------| | Net Income / (Loss) | $(5,450,296) | $(5,575,838) | | Net Income before Fair Value Adj. | $134,327 | $566,911 | | FFO | $302,121 | $890,653 | | AFFO | $262,279 | $760,438 |

Notable Quotes

• “The strategic review continues to focus on maximizing unitholder value, and the recent refinancing further strengthens our balance sheet while we prepare for an orderly exit of our Texas assets.” – Sandy Poklar, President & CEO

Materiality Assessment: Material – Positive (the release provides substantive earnings improvement, a significant refinancing benefit, and strategic direction that materially affect unitholder value).