Real Estate Equity

"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." — Paul Samuelson

Our Properties
Foremost.RE: The Foremost Real Estate Equity Fund

Foremost.RE is an open-ended equity fund that invests opportunistically across real estate asset classes and geographies. Its primary focus is acquiring income-producing properties in good locations with strong value-add potential and future redevelopment upside.

Key Characteristics

$5.5M NAV
$11.5M Total Asset Value
1 Building
31 Units
50–65% Target LTV
5–7% Annual Distribution
10–12% Target Annualized Returns
0.75% Management Fee

Investment Strategy

The fund has a very long-term investment horizon, allowing it to mitigate sort and medium-term risks.

Holding assets for longer periods allows the fund to capture natural price appreciation, defer taxes, and realize the value from raising properties to their highest and best use.

Foremost.RE leverage will be constrained to 65%, with a target of 50%, to provide downside risk protection and maintain survivability through variable market conditions.

Fees are focused on aligning manager and investor interests, while encouraging long-term thinking.

Much lower fees = more compounding.

The carried interest is paid in units instead of cash. These units vest over 5 years. Management remains tightly aligned with investors.

Acquisition Date:
2022-03-31
Property Type:
31-unit apartment building
View Details

REAL ESTATE EQUITY FAQ’S
FOREMOST IN ANSWERS

Distributions of 5%-7% are paid quarterly based on the most recently calculated Net Asset Value. Distributions will primarily consist of return on capital, which can make them more tax efficient.

Buying real estate with a long-term mindset helps mitigate short and medium-term risks. We will only purchase buildings with solid long-term fundamentals that we want to hold through periods of uncertainty. This approach allows the fund to capture natural price appreciate, avoid costly transaction costs associated with real estate, and realized the value from raising properties to their highest and best use.

The leverage of the fund will be constrained to 65%, with a target of 50%, to provide downside risk protection and maintain survivability through variable market conditions. Individual properties may have leverage greater than 65%, however overall fund leverage will be moderated through increased liquidity.

The Management Team will earn a Founders’ Interest equal to 7.5% of the value created, which compares favourably to the typical 20-30% interest over a 5-8% preferred return. This interest is paid in equity in the fund and is locked up for 5 years to ensure a tight alignment with investors.

Management fees of 0.75% are charged on the current Net Asset Value of the Fund, compared to fees of 1-2% for typical funds. In addition, these fees are only charged on funds deployed, not committed, representing a further savings for investors.

The fund offers annual liquidity, subject to certain conditions.

Do you qualify for Foremost's investments?

Would you be considered to be an Accredited Investor (as defined under the Canadian Securities Administrators National Instrument 45-106):

an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities exceeding $1,000,000; (or)
an individual who, either alone or with a spouse, has total net assets of at least $5,000,000; (or)
an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or an individual whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year.

YesNo

To read a detailed list of all possible exemption definitions, please visit the Ontario Securities Commission (OSC) website.

Excellent!

The next step is to be in contact with us to confirm if you are an accredited investor, please contact:

Thank You for Your Interest!

We've included only the most commonly relied upon Accredited Investor or Eligible exemptions; therefore, we encourage you to get in touch with us to review other ways you can qualify to invest with Foremost.

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Real Estate Equity

Our Properties
Foremost.RE: The Foremost Real Estate Equity Fund

Key Characteristics

Investment Strategy

Real Estate Portfolio

2022-03-31

31-unit apartment building

PROPERTY LOCATIONS

REAL ESTATE EQUITY FAQ’S
FOREMOST IN ANSWERS

Check Your Eligibility Now!

Do you qualify for Foremost's investments?

Excellent!

Thank You for Your Interest!

Still Have Questions?

Investor Inquiries

EVAN COOPERMAN

RICKY DOGON

Real Estate Equity

Our PropertiesForemost.RE: The Foremost Real Estate Equity Fund

Key Characteristics

Investment Strategy

Real Estate Portfolio

2022-03-31

31-unit apartment building

PROPERTY LOCATIONS

REAL ESTATE EQUITY FAQ’SFOREMOST IN ANSWERS

Check Your Eligibility Now!

Do you qualify for Foremost's investments?

Excellent!

Thank You for Your Interest!

Still Have Questions?

Investor Inquiries

EVAN COOPERMAN

RICKY DOGON

Our Properties
Foremost.RE: The Foremost Real Estate Equity Fund

REAL ESTATE EQUITY FAQ’S
FOREMOST IN ANSWERS