Firm Capital Property Trust Enhances Investor Engagement with DRIP Update
Firm Capital Property Trust Introduces DRIP Enhancements
Firm Capital Property Trust (TSX: FCD.UN), widely recognized as a leader in creating long-term value for its unitholders, is excited to announce noteworthy changes to its Distribution Reinvestment Plan (DRIP). These adjustments include implementing a discount on Trust Units issued from treasury, signaling an ongoing commitment to enhance investor engagement and value.
Changes in the Distribution Reinvestment Plan
The current structure of the Trust’s DRIP has outlined that Trust Units from treasury could only be offered at a floor price of $8.00, without any discount. However, beginning with the distribution for the month of July, there will be a significant reduction in the floor price to $7.40 per unit. This change aims to make participation in the DRIP more attractive for investors.
In addition to the updated floor price, when the Average Market Price of Trust Units goes beyond $7.40 per unit, the Trust will issue its Units at the Average Market Price minus a 3% discount. This new pricing structure aims to foster greater participation in the plan and boost the trust's attractiveness to current and prospective unitholders.
Distributions and Returns for Unitholders
Currently, the Trust is delivering a monthly distribution of approximately $0.04333 per Trust Unit, which translates to an annual yield around 8.6%. With a significant portion (about 65%) of the distributions anticipated to be classified as Return of Capital, the effective pre-tax yield could reach an impressive 11.9%. This strategy reflects the Trust's continued commitment to maximizing value for its investors.
Firm Capital Property Trust has a policy that ensures cash distributions are paid on or around the 15th of each month, directly to the unitholders who are on record as of the last business day of the previous month. Such timely distributions are essential for fostering trust and satisfaction among investors.
Trust's Mission and Strategic Focus
The overarching goal of Firm Capital Property Trust is creating sustainable long-term value through sound investment practices. The Trust emphasizes capital preservation while engaging in disciplined investment strategies aimed at ensuring steady distributable income. This approach includes not only standalone acquisitions but partnerships forming joint ventures with financially solid entities.
By strategically acquiring a diversified portfolio comprising multi-residential, flex industrial, and net-lease convenience retail properties, the Trust aims to establish a robust presence in these sectors, offering stable income streams and growth opportunities. Furthermore, it continuously seeks opportunities to provide liquidity to existing property owners while offering professional management services to sustain operational efficiency.
Engagement with Investors
For any inquiries or detailed discussions about the Trust and its initiatives, interested parties can connect with the team via several established contacts. The leadership team, including Robert McKee (President), Sandy Poklar (CFO), and Victoria Moayedi (Director of Investor Relations), each offer valuable insights into the Trust's operations and future strategies.
Both Robert and Sandy can be reached through the main phone number at (416) 635-0221. For investor relations specifically, Victoria Moayedi’s expertise will assist in any inquiries regarding investments and partnership opportunities.
Frequently Asked Questions
What is the new floor price for Trust Units under the DRIP?
The new floor price for Trust Units under the DRIP has been reduced to $7.40 per unit.
How does the discount work for Trust Units?
When the Average Market Price exceeds $7.40, Trust Units will be offered at that price minus a 3% discount.
What is the current annual distribution yield for the Trust?
The current annual distribution yield is approximately 8.6% based on the monthly distribution rate.
How often does the Trust pay cash distributions?
The Trust pays cash distributions on or around the 15th of each month to unitholders.
Who can I contact for more information about the Trust?
For more information, you can contact Robert McKee, Sandy Poklar, or Victoria Moayedi at (416) 635-0221.
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