PV, Mit & Jeff
Welcome to the first edition of Investor Q&A. Every Thursday, we're going to answer the questions that matter most to you. This week, we're starting with the four questions we hear most often on investor calls and prospect conversations. These come up almost every single time.
We don't dodge questions. Every investor deserves to understand exactly what they own, how it works, and what the risks are. That's how trust is built.
Going forward, this is your space. Reply to any of our daily notes with your question and we'll answer the best ones here every Thursday. No question is too basic or too detailed. If you're thinking it, someone else is too.
That's the unit price growth since inception. FCPRET launched at $10.00 per unit. Today it sits at $13.00. With the year end audit wrapping up, the next price adjustment is coming soon. Every dollar invested before the increase captures that full appreciation.
No. It's nothing like a stock. When you invest in FCPRET, you're subscribing to units in the trust. Think of units like shares, but the Ontario Securities Commission doesn't allow us to call them shares. Your units are priced based on the Net Asset Value (NAV) of the buildings we own. When we renovate a unit, increase the rent, and improve the Net Operating Income, the building becomes more valuable. That value flows directly into the unit price. It doesn't swing with market sentiment. It moves when the underlying real estate improves. We started at $10.00. We're at $13.00 today. That's 30% appreciation backed by real assets, not hype.
This is one of the most common concerns we hear, and it's fair. Here's how we handle it. First, we're extremely diligent on the front end. Every applicant goes through credit checks, employment verification, and income confirmation. It's almost like a job interview to get into one of our buildings. We don't take the first and last and hope for the best. Second, we're managing 350+ units. If one tenant has an issue, the impact is spread across the entire portfolio. One vacancy on 350 units is a rounding error, not a crisis. Third, Jeff has been doing this since 2012. Students, duplexes, triplexes, and now full apartment buildings. The screening systems and escalation processes are battle tested. That's the difference between professional management and being a landlord with a duplex.
Moving fast. The first tranche of capital is committed from existing and new investors. We're looking at a 250 to 350+ unit purpose built rental tower, potentially 31 stories. We've got meetings lined up with the city to finalize density. This is a skyline changing project, not a small mid rise. On the government side, Ontario's new budget just released incentives for purpose built rental construction, including CMHC financing and GST rebates, which further de-risks our capital stack. With the province admitting housing starts are projected at only 64,800 this year (down from 74,800), the supply gap we're building into is getting wider, not narrower. Targeted returns on Dev Fund 1: 24% to 27% annualized. You can still invest in Development Fund 1 today, with capital to be called for the 2028 construction start. And if you want something more immediate, we have a Development Fund 2 in the works. Reach out to learn more about either
Here's the honest answer: the year end audit is currently in process with MNP, our independent auditor. When it's completed, the unit price will be adjusted upward to reflect the appreciation we generated throughout the year. We're expecting it to wrap up by the end of this month, but audits can take time and we won't rush the process. What we can tell you is this: if you invest today at $13.00 per unit and the price increases after the audit, you capture that full appreciation immediately. If you wait until after the audit, you'll be buying at the new, higher price. This isn't a sales tactic. It's just math. The next closing is April 30th. Book a call to discuss timing
Purpose-Built Rentals · CMHC Financing + GST Rebate Eligible
Government Grants + De-Risked Capital Stack
Targeted Returns: 24% to 27% Annualized
Cash-Flowing Apartment Buildings · Southwestern Ontario
Targeted Total Return: ~15%
Distributions: 7% Annualized, Paid Monthly
"I was skeptical. I'd seen a lot of investment opportunities that didn't hold up to scrutiny. So I spent about a month reviewing the offering documents, the portfolio, the regulatory structure. Everything checked out. The team answered every question without pressure. A year in, the distributions have been consistent and the reporting is exactly what they promised."
This week PV and Jeff break down Ontario's $80K HST rebate, the unit price increase timeline, Development Fund 1 progress, and the real housing demand story happening inside our buildings.
This was our first Q&A, but we want it to be yours. Got a question about the fund, the portfolio, distributions, or the development? Reply to this email. We'll answer the best ones next Thursday. Nothing is off limits.
To your success,
PV, Mit & Jeff
P.S. The next closing is April 30th. If you've been on the fence, the unit price increase from the audit will be finalized before then. Every day you wait is a day closer to buying at a higher price. Book a 15 min call and we'll walk you through the math
