DEBT & EQUITY INVESTING IN U.S. REAL ESTATE INVESTOR PRESENTATION - PowerPoint PPT Presentation

DEBT & EQUITY INVESTING IN U.S. REAL ESTATE INVESTOR PRESENTATION AUGUST 31 , 2019 DISCIPLINED INVESTING ● CAPITAL PRESERVATION A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered to investors with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

Investment Highlights • Unique Status as Canada’s Only Exchange Traded Debt & Equity Investor in U.S. Real Estate • Firm Capital American Realty Partners Corp. (“FCA or the “Company”) provides investors with exposure to debt and equity investments in U.S. real estate in major markets and primarily involving multi-family residential properties • Innovative Capital Partnership Investment Model for U.S. Real Estate • Focus on capital partnership investing in U.S. real estate, enabling the Company to benefit from multiple joint venture partnerships with local industry expert owners/ operators in majormarkets • Balanced Growth & Income Investment Model Well Suited to Rising Rate Environment in U.S. • Full capital stack investment model targets balanced growth and income returns to the Company, including mix of common equity returns (targeted at >20%), preferred equity returns (targeted at >8%), and bridge lending returns (targeted at >12%) • Experienced Manager with a Strong Track Record of Creating Value • The Firm Capital organization has an over 30-year track record of delivering superior investment returns to institutional and retail investors across all parts of the real estate capital structure • Firm Capital manages two other successful publicly traded companies: Firm Capital Mortgage Investment Corporation (TSX: FC) and Firm Capital Property Trust (TSXV: FCD.UN), with a combined 25-year track record • Current Portfolio Provides a Platform for Further External Growth Opportunities • Currently owns or co-owns, 1,6 85 residential units and seven commercial units across 39 apartment properties in 6 U.S. states, which provides a broad platform for further external growth opportunities • Compelling Multi-Family Residential Sector Fundamentals • Tenant demand remains strong as a result of the continued expansion of the U.S. economy and low vacancy is expected to support continued rent growth for apartments • Recently Raised Attractive Growth-OrientedYield • Quarterly cash dividends of US$0.059 per share are paid, equivalent to a cash-on-cash yield of 2.9% based on the Company’s most recent offering price of US$8.10 per unit • Raised from US$0.05625 per share commenced in Q1 2019 (an increase of 5.0%) 2 DISCIPLINED INVESTING ● CAPITAL PRESERVATION

Business Overview • Firm Capital American Realty Partners Corp. (“FCA” or the “Company”), based in Toronto, Ontario, is a Canadian public reporting issuer with U.S. dollar and Canadian dollar denominated shares that trade on the TSX Venture Exchange (“TSXV”) under the symbols FCA.U and FCA, respectively • The predecessor Company, while historically focused on multi-family and single- family residential real estate in the U.S., was transformed in 2016 through a series of restructuring initiatives sponsored by Firm Capital Realty Partners Advisors Inc. (“Firm Capital”) ― Firm Capital assumed control of asset management and corporate governance and embarked on a complete financial restructuring and repositioning of the Company • The Company currently has approximately $36 million of non-capital tax loss carry forwards available to be applied against future taxable operating income • On May 10, 2019, FCA announced that it has engaged legal and tax advisors to explore the possibility of converting the Company into a real estate investment trust or “REIT” structure (a “REIT”) by the end of fiscal 2019 1 (1) Any reorganization of the Company into a REIT will be subject to customary conditions, including the approval of the shareholders of the Company 3 DISCIPLINED INVESTING ● CAPITAL PRESERVATION

Investment Strategy The Company’s investment strategy is The Company is positioned to participate in executed through the following platforms: all levels of the capital stack: • Real Estate Investments: Targeted Capital Stack for Investing • Acquisition of income producing real estate • Focus in major cities across the U.S. Senior Debt First Lien Mortgages • Joint venture partnerships with local industry expert owners/operators who Shorter- SubordinatedDebt Second Lien Mortgages retain property management responsibility Term • Debt Investments: Mezzanine Debt Gap Financing • Real estate debt and equity lending platform Preferred Equity Repaid With • Major cities across the U.S. PreferredEquity Set Terms Longer- • All forms of shorter-term bridge mortgage Term loans and joint venture capital Common Equity InvestmentOwnership 4 DISCIPLINED INVESTING ● CAPITAL PRESERVATION

Properties Properties 1 Properties 1 16 Properties 261 7 Properties Properties 3 Properties Portfolio Summary as June 30 , 2019 1 NEW YORK Units Loan Value NEW YORK 3 130 $ 10 . 5 Units Asset Value 8 $ 63.3 CONNECTICUT Units Asset Value 57 2 $ 52.3 NEW JERSEY Units Asset Value 189 $1 8 . 9 MARYLAND Units Asset Value 116 $ 14.8 TEXAS FLORIDA Units Asset Value 393 $3 6 . 3 Units Asset Value Real Estate Investments 153 $2 7.4 Mortgage Investments (1) Shown at 100% share as at June 3 0 , 2019 (2) FCA share of asset value / total loan; based on common equity ownership 5 DISCIPLINED INVESTING ● CAPITAL PRESERVATION

New Joint Venture Investments Preferred & Common Equity Investments (US$) FCA Investment Preferred Portfolio FCA Equity Asset Value Acq. Date Units Interest Location Ownership Preferred Equity Total Rate Hartford, CT Apr. 2019 $12.2M 109 $ 0.6 M $1. 3 M $ 1 . 9 M 8.0% 50% Bronx, NY Dec. 2018 $25.0M 132 $ 5.1 M $2.0M $ 7 . 1 M 8.0% 50% Houston, TX Feb. 2018 $15.3M 235 $3. 6 M $1. 4 M $4. 9 M 9.0% 50% Irvington, NJ Feb. 2018 $17.8M 189 $2.6M $ 1 . 0 M $3. 6 M 9.0% 50% Bridgeport, CT Aug. 2017 $30.5M 462 $ 2 .8M $ 3 .3M $ 6 .1M 9.0% 30% Brentwood, MD Jan. 2017 $9.8M 116 - $ 1 . 2 M $1. 2 M 8.0% 25% New York, NY Dec . 20 16 $38.0 M 129 $ 5 . 1 M $ 1 .3M $ 6 . 4 M 8 .0% 23 % $1 66 . 2 M 1, 374 $1 9 . 7 M $ 11 . 5 M $ 31 . 2 M 8.5% $ 36 . 8 % Total / Weighted Avg. Preferred Capital Loan Investments (US$) Pref. Portfolio Total Pref. FCA FCA Loan Acq. Date Units Term Interest Location Loan Investment Ownership Rate Manhattan, NY Dec. 2017 $9.5M 130 $2. 2 M 12.0% 20.8% 3 years 6 DISCIPLINED INVESTING ● CAPITAL PRESERVATION

Dispositions and Debt Repayment Overview Asset Sales 1 Debt Reduction GEORGIA NEW JERSEY FULL REPAYMENT FULL REPAYMENT US$11, 7 00,000 US$4,200,000 US$12,200,000 US$8,100,000 2018 & 2019 2018 2018 & 2019 2017 Disposition of 114 Disposition of 82 Convertible Unsecured Senior Secured Note single-family rental homes single-family rental homes Debentures FLORIDA / GEORGIA FLORIDA PARTIAL REPAYMENT FULL REPAYMENT / NEW JERSEY US$12,400,000 US$4,200,000 US$4,900,000 US$2,900,000 2017 2017 2017 2017 Disposition of 196 Convertible Unsecured New Jersey Disposition of 3 apartment single-family rental homes properties with 66 units Debentures Secured Promissory Note Total: $32. 5 million Non-Core Asset Total: $28.1 million Debt Repayments Sales Since Beginning of 2017 Since Start of 2017 7 (1) Gross proceeds DISCIPLINED INVESTING ● CAPITAL PRESERVATION

Investment Profile • The Company’s portfolio of investment properties is comprised of 1,6 85 residential units across 39 apartment properties and seven commercial units in 6 U.S. states and provides a broad platform for further external growth opportunities • In addition, the Company’s mortgage investments are currently comprised of a preferred capital loan secured by New York City apartment properties, providing high current income and enhancing the overall portfolio yield Current Investment Portfolio (US$ in millions) (1) State Properties Asset Value FCA Pref ($) FCA Equity ($) FCA Own. (%) Units Occupancy Florida 1 153 9 7 . 4 % $2 7 . 4 - $1 5 . 8 100.0% Owned Texas 2 158 9 6 . 8 % $19. 8 - $1 3 . 1 100.0% New York 2 11 261 95 . 8 % $63. 3 $ 10 . 2 $ 2 . 6 32.9% Maryland 1 11 8 9 3 . 2 % $1 5 . 0 - $ 1.2 25.0% Co-Owned Connecticut 16 57 1 91.4% $5 2 . 3 $ 3 . 4 $ 3 . 5 36.5% New Jersey 3 7 189 100 % $18.9 $2.6 $1. 1 50.0% Texas 1 235 91.1% $16. 8 $3. 6 $ 0 . 9 50.0% Total Residential Units 39 1,6 85 9 5 . 5 % $21 3 . 4 $ 19.7 $ 38 . 1 Mortgage Investments (US$ in millions) (1) State Properties Units Coupon Investment Term FCA Share of Inv. Preferred Capital Loan New York 3 130 12.0% $ 10 . 6 3 Years $2. 2 (1) All figures are shown at 100% share, except under columns for “FCA Pref ” and “FCA Equity ” ; as at June 3 0 , 2019 (2) Includes two (2) commercial units (3) Includes five (5) commercial units 8 DISCIPLINED INVESTING ● CAPITAL PRESERVATION