Firm Capital Apartment REIT Provides Strategic Review Update and Q1/2025 Results

Firm Capital Apartment Real Estate Investment Trust (“the “Trust”), (TSXV: FCA.U), (TSXV: FCA.UN) is pleased to report its financial results for the three months ended March 31, 2025 and provide a Strategic Review update:

STRATEGIC REVIEW UPDATE In summary, the Strategic Review has yielded the following results. For further details, please refer to the Trust’s Management Discussion & Analysis (“MD&A”) as filed on the Trust’s website (www.firmcapital.com) and/or SEDAR+ (www.sedarplus.ca) under the Trust’s search profile:

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;As part of the transaction to sell the Trust’s only property located in Florida (May 20, 2024) the Trust agreed to provide seller financing of $4.0 million that generates a minimum 9% return;Completed the sale (January 31, 2024) of one of its joint venture properties located in Maryland for $15.9 million (100% of the property). Net sale proceeds were approximately $4.1 million, of which the Trust received approximately $1.1 million given its 25% ownership in the property; andHartford, Connecticut joint venture refinanced existing first mortgage in excess of the original principal balance, resulting in net proceeds of $2.2 million available to the joint venture (October 1, 2024). The joint venture repaid the preferred investment owing to the Trust of $1.7 million and made a partial return of common equity of approximately $0.1 million to the Trust.

The board continues to work to dispose of its remaining Wholly Owned Assets and evaluate uses for the Trust. Senior management has had multiple discussions with a number of third parties as to the best path forward for the entity. Senior management and the board will report back to unitholders in due course.

The Board will continue to assess matters on a quarterly basis and determine if the Trust should: (i) distribute excess income; (ii) distribute net proceeds from asset sales, after debt repayment; (iii) reinvest net proceeds into other investments; (iv) distribute proceeds as a return of capital or special distribution; and/or (v) use excess proceeds to repurchase Trust units in the marketplace. It is the Trust’s current intention not to disclose developments with respect to the Strategic Review unless and until it is determined that disclosure is necessary or appropriate, or as required under applicable securities laws

NET ASSET VALUE (“NAV”) $6.56 PER TRUST UNIT (CAD $9.04): Including disposition costs of assets held for sale, the Trust reported NAV of $6.6 per Trust Unit (CAD $9.04).

EARNINGS

Excluding non-cash fair value adjustments, net income for the three months ended March 31, 2025 was approximately $0.16 million, in comparison to the $0.14 million reported for the three months ended December 31, 2024 and $0.06 million loss reported for the three months ended March 31, 2024; and  AFFO for the three months ended March 31, 2025 was $0.2 million, in comparison to the $0.16 million reported for the three months ended December 31, 2024 and the negative $0.04 million reported for the three months ended March 31, 2024.

Three Months Ended

Mar 31, 2025

Dec 31, 2024

Mar 31, 2024Net Income (Loss)

$

(73,877

)

$

(126,074

)

$

(1,298,849

)Net Income (Loss) Before Fair Value Adjustments

$

167,126

$

140,008

$

(57,937

)FFO

$

238,070

$

202,009

$

(813,630

)AFFO

$

197,426

$

156,015

$

(42,166

)

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Trust holds properties; volatility of real estate prices; inability to access sufficient capital from internal and external sources, the completion of the Strategic Review; and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Trust to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Additional risk factors that may impact the Trust or cause actual results and performance to differ from the forward looking statements contained herein are set forth in the Trust's Annual Information form under the heading Risk Factors (a copy of which can be obtained under the Trust's profile on www.sedar.com). Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Trust undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Certain financial information presented in this press release reflect certain non-International Financial Reporting Standards (“IFRS”) financial measures, which include, but not limited to NOI, FFO and AFFO. These measures are commonly used by real estate investment companies as useful metrics for measuring performance, however, they do not have standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other real estate investment companies. These terms are defined in the Trust’s Management Discussion and Analysis for the three and twelve months ended December 31, 2024, filed on www.sedar.com. Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information, please contact: Sandy Poklar Mordechai RothPresident & Chief Executive Officer  Chief Financial Officer(416) 635-0221  (416) 635-0221  For Investor Relations information, please contact: Victoria Moayedi Director, Investor Relations (416) 635-0221