PV, Mit & Jeff
Three days ago we told you the next FCPRET quarterly unit price review was approaching. Today is the day. The reviewed subscription price for new units going into the trust is now $13.74. Any subscription that comes in from this morning forward is subscribed at that price. The full three and a half year price history is below.
If you have been reading these letters for a while, this is the one you were waiting for. If you are new here, this is the one that shows you how a quarterly repriced private trust actually compounds, in real numbers, over real time.
Everything in the price history above is unit price appreciation only. It is one half of the FCPRET return equation. The other half is the 7 percent targeted annual distribution that FCPRET has paid every month since inception, landing in the hands of unitholders as cash or compounded through the distribution reinvestment plan at a 2 percent discount.
That is the full picture. The unit price moves on the table above. The monthly distribution lands beside it. The two together are the targeted 15 percent annualized return the trust has been built around. Any FCPRET letter that focuses on only one half is missing the other half. Today we are showing you both.
Three things, working together.
Operational discipline, day in and day out. This is the one that nobody writes about because it is boring, but it is the one that compounds the most over time. Collections on time. Maintenance tickets closed. Vendor contracts tendered. Property management platform migrations. Yardi reconciliations. The 45 day financial close cycle Mit's team has been pushing toward. These are the hundreds of small decisions that quietly add up over a quarter, over a year, over three and a half years, and show up in the underlying portfolio value when the next review runs.
Tenant turnovers and building level performance. When units turn over naturally and new long term tenants move in at current market rents, the net operating income of the building moves. Operational cost reductions do the same. Expense discipline does the same. Capital improvements that lift NOI do the same. Internal valuations between audits, like the September 2025 and January 2026 steps on the table above, pick up what has actually happened across the portfolio in each window.
The annual audited financial statements, as the verification anchor. Once a year, the trust's financial statements are audited by MNP LLP. The unit price is trued up to those audited values when the statements are released. The audit does not create new value. It verifies the value the operations and the turnovers have already produced. The audit is the independent reference point that confirms what the quarterly reviews have been reflecting all along.
A $10,000 subscription into FCPRET at today's $13.74 unit price gets you 728 units. Those units earn the same monthly distribution as every other unit in the trust going forward. The next quarterly review will apply to the whole trust equally. The subscriber who comes in at $13.74 today participates in whatever appreciation the next cycle delivers from the base of $13.74. The entry point for each cycle resets. The compounding does not.
For existing FCPRET holders, today is a moment to pause and consider. Your original unit basis has not changed. The current market subscription price of your position has. The targeted 15 percent annualized total return continues from here. If today's letter prompts a decision to top up, the current price for new units is $13.74.
$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.
Private real estate trusts are often sold on single moments. One quarterly print. One flashy acquisition. One letter about a market signal. The reason FCPRET works the way it works is that none of those single moments matter very much. What matters is the quiet repeat. Audit the books every year. Reflect what the operations have done between audits. Keep the discipline on collections and maintenance and reporting. Price the trust at what the underlying portfolio is actually worth. Repeat. Compound.
The table above is three and a half years of that quiet repeat. $10.00 to $13.74 on the price. 7 percent targeted annual distribution landing every month alongside it. That is what FCPRET is. That is what it has been. And it is why we send letters like today's one. We would rather over tell you about the mechanics than have anyone reading these ever wonder what they are looking at.
Talk soon,
PV, Mit & Jeff
P.S. If you want the one slide version of this letter for a friend who is still skeptical, screenshot the price table and send it to them. The reason the table reads the way it reads is that every line represents a quarter of real operations that happened in real buildings in real places with real tenants paying real rent. Nothing on that table is a model. Everything on it is history. The next line that gets added will also be history, in its own time.
