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

Executive Summary

• Firm Capital Apartment Real Estate Investment Trust reported financial results for the three and six months ended June 30, 2025, alongside an update on its ongoing strategic review process initiated in November 2022.
• The Trust reported positive net income and Adjusted Funds From Operations (AFFO) for the current periods, marking a significant turnaround from the losses reported in the same periods of the prior year.
• The strategic review has resulted in the sale of four of six wholly owned assets for gross proceeds of approximately $71.6 million, with net proceeds largely utilized for debt repayment.

Key Details

• Net Income (Excluding Non-Cash Fair Value Adjustments):
  • Three months ended June 30, 2025: ~$0.27 million (compared to $0.17 million in Q1 2025 and a $0.37 million loss in Q2 2024).
  • Six months ended June 30, 2025: ~$0.43 million (compared to a $0.43 million loss in the same period last year).
• AFFO (Adjusted Funds From Operations):
  • Three months ended June 30, 2025: $0.3 million (compared to $0.2 million in Q1 2025 and a $0.35 million loss in Q2 2024).
  • Six months ended June 30, 2025: ~$0.5 million (compared to a $0.4 million loss in the same period last year).
• Strategic Review & Asset Sales:
  • Sold four of six wholly owned assets for gross proceeds of approximately $71.6 million.
  • Net sale proceeds of approximately $28 million were used for debt repayment.
  • Sale of Florida property (May 20, 2024): Trust provided seller financing of $4.0 million, generating a minimum 9% return (escalated to 15%).
  • Sale of Maryland joint venture property (Jan 31, 2024): Sold for $15.9 million; Trust received ~$1.1 million (25% ownership).
  • Hartford, CT joint venture refinancing (Oct 1, 2024): Refinanced existing first mortgage; joint venture repaid $1.7 million preferred investment to the Trust and returned ~$0.1 million common equity.
• Financial Metrics Table (Three Months Ended Jun 30, 2025):
  • Net Income (Loss): $(51,665)
  • Net Income Before Fair Value Adjustments: $265,458
  • FFO: $350,462
  • AFFO: $300,732
• Board Intentions: The Board will assess quarterly whether to distribute excess income, distribute net proceeds from asset sales, reinvest proceeds, distribute as return of capital/special distribution, or repurchase Trust units. No further disclosure will be made until necessary or required by law.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.