Published on April 23rd, 2026 by Nathan Parsh
Firm Capital Property Trust (FRMUF) has three appealing investment characteristics:
#1: It is a REIT so it has a favorable tax structure and pays out the majority of its earnings as dividends.Related: List of publicly traded REITs
#2: It is a high-yield stock based on its 8.1% dividend yield.Related: List of 5%+ yielding stocks
#3: It pays dividends monthly instead of quarterly.Related: List of monthly dividend stocks
You can download our full Excel spreadsheet of all 119 monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:
Firm Capital Property Trust’s trifecta of favorable tax status as a REIT, a high dividend yield, and a monthly dividend make it appealing to individual investors.
But there’s more to the company than just these factors. Keep reading this article to learn more about Firm Capital Property Trust.
Business Overview
Firm Capital Property Trust is focused on creating long-term shareholder value through capital preservation and disciplined investing.
In partnership with management and industry leaders, the REIT co-owns a diversified property portfolio that includes multi-residential, industrial, net-lease convenience retail, and core service provider professional space.
Firm Capital Property Trust has a history of 38 years, with presence in the real estate markets of Canada and the U.S. As its management directly invests in some assets of the REIT, its interests are aligned with those of the shareholders.
Source: Investor Presentation
On March 10th, 2026, Firm Capital reported fourth-quarter and full-year results for the period ending December 31st, 2025. Rental revenue was $11.5 million, largely due to stable occupancy rates across its retail, industrial, multi-residential, and manufactured home communities, all of which continued to operate at high utilization levels.
Net operating income (NOI) was $7.37 million, reflecting steady operating performance despite inflationary cost pressures. Funds from Operations (FFO) were approximately $3.70 million, or about $0.100 per unit. Firm Capital is expected to produce FFO of $0.50 per share in 2026.
The investment portfolio fell 6.5% to $610.9 at year’s end. New investment funding totaled $278 million in 2025, compared to $329 million in 2024, and repayments were $320.7 million for the period, compared to $265.3 million in the prior year. The investment portfolio held 242 investments, down from 286 in 2024.
Growth Prospects
Firm Capital Property Trust aims to grow via strategic accretive acquisitions. It partners with strong industry leaders who retain property management and execute partial acquisitions.
Firm Capital Property Trust boasts a defensive business model thanks to its tenants’ high credit profiles. However, investors should be aware that this is a slow-growth REIT.
Since its inception in 1988, Firm Capital Property Trust has grown its net asset value per unit by only 62%. In other words, the REIT has grown its average net asset value per unit by a low single-digit rate since inception.
It is important to note that the lackluster performance record has resulted partly from strengthening the USD vs. CAD. As the Canadian dollar has depreciated by about 18% over the last decade, it is evident that Firm Capital Property Trust has faced a strong currency headwind in its results over the last decade.
Moreover, central banks had raised interest rates aggressively over the past few years to cool the economy and restore inflation to their target range. While we do not expect further increases, higher interest rates have caused Firm Capital Property Trust’s interest expense to grow 50% over the past few years.
As inflation seems to have finally moderated, central banks will likely reduce interest rates in the upcoming years.
Given Firm Capital Property Trust’s solid business model, lackluster performance record, and currency risk, we expect the REIT to grow its FFO per unit by about 0.0% per year on average over the next five years.
Dividend & Valuation Analysis
Firm Capital Property Trust currently offers an above-average dividend yield of 8.1%. It is an interesting candidate for income-oriented investors. Still, the latter should be aware that the dividend may fluctuate significantly over time due to the exchange rate fluctuation between the Canadian dollar and the USD.
Source: Investor Presentation
The good news is that the payout ratio has come down from its typical range of 90% to 100%+ recently. The REIT’s projected payout ratio for 2026 is just 76% and would be close to 2025’s payout ratio of 75%. This indicates that the dividend’s margin of safety is rising. We believe that chances of a dividend cut have been reduced more now than in the past.
As a result, investors should not expect meaningful dividend growth going forward. It is also important to note that the dividend has been frozen over the last four years. Overall, the dividend may be cut during an unforeseen downturn, such as a deep recession.
About the valuation, Firm Capital Property Trust has generally traded for 10 to 14 times its FFO per unit. Given the REIT’s high debt load, we assume a fair price-to-FFO ratio of 10.0 for the stock.
The current FFO multiple is slightly lower than our assumed fair price-to-FFO ratio at 9.4. If the stock trades at its fair valuation level in five years, it will enjoy a 1.2% annualized return from an expanding multiple.
Considering the 0.0% annual FFO-per-unit growth, the 8.1% dividend, and a 1.2% annualized compression of valuation level, Firm Capital Property Trust could offer an 8.0% average annual total return over the next five years.
This is not an unattractive expected return, though we recommend waiting for a better entry point to enhance the margin of safety and expected return.
Moreover, the stock is suitable only for investors who are comfortable with the risk that comes from the trust’s high payout ratio and material debt load.
Final Thoughts
Firm Capital Property Trust has a solid business model thanks to its competent management and the alignment of interests between its management and its shareholders. Management invests in the REIT’s properties, which is a significant advantage for the shareholders.
Despite its high payout ratio, the stock offers an exceptionally high dividend yield of 8.1%, making it an attractive candidate for income-oriented investors’ portfolios.
On the other hand, investors should be aware of the risks related to the trust’s high payout ratio and leveraged balance sheet. If inflation surges again, then high interest rates will greatly burden the REIT through high interest expenses.
Additional Reading
Don’t miss the resources below for more monthly dividend stock investing research.
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
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