PV, Mit & Jeff
Tomorrow, the FCPRET quarterly unit price review window changes the subscription price for new units going in. Any subscription initiated after end of day today will be at the new price. If you have been considering a first subscription or a top up on an existing position, locking in at $13.40 is a today decision.
Short letter today. Straightforward note. If you have been considering FCPRET and have been waiting for the right moment, the last page of this specific chapter closes this evening.
We do not often send letters that read like today's. The urgency this time is real, so we want to make sure you understand exactly what it means and exactly how to act on it if it makes sense for you.
FCPRET's unit price is reviewed quarterly by the trust's trustees. The review reflects the underlying net operating income of the portfolio and the quarterly asset-level changes across the trust's holdings. The reviewed subscription price becomes the price at which any new units are issued going forward. The price change is not announced before the review closes. It is announced the day the new price takes effect.
That is why these letters land the way they do. You have the window to subscribe at the current price until end of the business day before the review takes effect. Today is that day.
A $10,000 subscription at today's $13.40 unit price gets you 746 units of FCPRET. The same $10,000 subscribed at any higher unit price going forward gets you proportionally fewer units. Every unit you hold earns the same monthly cash distribution going forward. More units means more cash flow for the same cheque. That is the entire mechanic.
For existing FCPRET holders, the same math applies to a top up. The unit count you add today at $13.40 is permanently yours. The cash distribution those units generate every month compounds for the full hold.
Anyone who has been reading these letters, nodding at the thesis, and sitting on the sidelines of the FCPRET subscription for one more reason or another. Anyone who has been meaning to top up an existing position after a cash distribution landed, a tax refund arrived, or a bonus cleared. Anyone with RRSP, TFSA, RESP, or LIRA contribution room they have been intending to deploy into Canadian multi-family. Anyone whose financial advisor has been looking for a private alternative to balance equity and bond exposure.
If any of those describe you, today is the day the decision moves to the top of the list.
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible · Also Cash
Targeted: 15% Annualized (7% cash monthly + 8% appreciation)
Audited annually by MNP LLP. Offered through Equivesto Canada Inc., a licensed Exempt Market Dealer.
The reason FCPRET quarterly unit price reviews move is simple. Every quarter the portfolio generates net operating income. That income lifts the value of the underlying buildings. The trustees review that lift against the audited valuation anchor and reflect it in the subscription price for new units going in. The existing holders captured that lift during the quarter they were in. The next cohort of subscribers starts fresh at the new reviewed price.
This is how a quarterly repriced private trust is designed to work. Investors who subscribe inside a given cycle participate in that cycle's reviewed appreciation. The FCPRET investors who subscribed two years ago, three years ago, five years ago did not time the market, and nothing about the structure favoured them over anyone else. They read a letter like this one at the time, understood the thesis, and acted on it. Today's letter is the same opportunity, with the same math, for anyone reading it today.
We would rather over-tell you about the window than have anyone reading these letters wake up Thursday wondering why we did not. That is the whole letter.
Talk soon,
PV, Mit & Jeff
P.S. If you want to subscribe today but will not have time to walk through it with us, the Equivesto portal link in the yellow card at the top of this letter is the cleanest direct path. The platform guides you through the suitability questions and the subscription itself takes about ten minutes. We are here on the phone and on reply all day if any question comes up along the way.
