FCPT sells 50% interest in Montreal building for $27.9 million

Firm Capital Property Trust has announced the sale of its 50% interest in a large industrial building in Montreal for approximately $27.9 million. The property, which spans 159,470 square feet, has been a part of the Trust’s Montreal Industrial Portfolio Joint Venture since 2018. The sale is expected to close in the second quarter of 2025. After deducting closing costs, the Trust will receive about $13.8 million from this transaction. The Trust originally purchased the property for $11 million at full ownership and it was valued at around $12.5 million on its balance sheet. Following the bankruptcy of the previous tenant last year, the Trust's property manager was working to re-lease the building. This sale helps reduce the Trust's exposure to large tenants. The Trust plans to use the proceeds from the sale to pay down debt and invest in smaller industrial units, grocery-anchored retail, and multi-residential properties that are less affected by U.S. tariffs. The Trust is expected to see a significant gain from this sale. The projected capital gains for 2025 will be about $0.18 per Trust Unit, which is higher than the $0.08 per Trust Unit reported in 2024. Firm Capital Property Trust aims to create long-term value and build a diversified portfolio through strategic investments.