Flagship Communities acquires 96-lot asset in Ohio

Mr. Eddie Carlisle reports FLAGSHIP COMMUNITIES REAL ESTATE INVESTMENT TRUST BOLSTERS PRESENCE IN KEY MARKET OF OHIO Flagship Communities Real Estate Investment Trust has acquired, from Empower Park LLC, a 96-lot manufactured housing community (MHC) located in Cleves, Ohio. The 96-lot MHC also offers future land expansion potential that could support an additional 12 lots. This add-on acquisition further expands Flagship's presence in Ohio and follows the REIT's recent purchase of three communities in the greater Cincinnati area, including one in Cleves. Since 2022, Empower has completed significant improvements to the MHC, including infrastructure upgrades such as new street paving and solar lighting as well as new amenities, including a large clubhouse, playground, ball field and basketball court. "This acquisition reflects the disciplined growth strategy that has defined Flagship for more than 30 years -- buying established communities with occupancy and growth potential," said Kurt Keeney, president and chief executive officer. "Given the recent improvements via renovations and the addition of new amenities, this MHC provides an attractive and affordable home-ownership option for working families in the Ohio market." Located in Cleves, Ohio, the acquisition comprises 96 lots and is 96 per cent occupied, presenting occupancy upside potential, which is consistent with the REIT's strategy of acquiring high-quality communities with vacancy. "We are very fortunate to acquire a third high-quality MHC in Cleves, Ohio, having acquired another new Cleves MHC at the end of last year," said Nathan Smith, chief investment officer. "In addition to strengthening our presence in the Cincinnati, Ohio market, we expect this acquisition will continue to allow us the opportunity to improve operating efficiencies and generate economies of scale." The acquisition is located near Interstate 275 in southwestern Ohio, close to the Ohio-Indiana border and Interstate 74, near recreational parks, golfing areas and several wooded walking trails. It is also in close proximity to Cincinnati with grocery stores, retail services, a community centre and social services located nearby. The approximately $6-million purchase price reflects a 5-per-cent discount to the acquisition's appraised value and was financed through a combination of cash on hand and the issuance of Class B units by Flagship Operating LLC, a subsidiary of the REIT, at a price of $19.54, representing the 10-day volume-weighted average price (VWAP). The terms of the acquisition are pursuant to the right of first offer agreement dated Oct. 7, 2020, between Flagship Operating and Empower. About Flagship Communities Real Estate Investment Trust Flagship Communities is a leading operator of affordable residential MHCs primarily serving working families seeking affordable home ownership. The REIT owns and operates exceptional residential living experiences and investment opportunities in family-oriented communities in Kentucky, Indiana, Ohio, Tennessee, Arkansas, Missouri, West Virginia and Illinois.