Flagship Communities seeks $79M (U.S.) in acquisitions

Mr. Kurt Keeney reports FLAGSHIP COMMUNITIES REAL ESTATE INVESTMENT TRUST EXPANDS PRESENCE IN KEY MARKETS Flagship Communities Real Estate Investment Trust is making two strategic acquisitions for total consideration of $79-million (U.S.), expanding its presence in both Indiana and Ohio. The acquisitions are expected to be immediately accretive to the REIT's adjusted funds from operations on a per-unit basis. Flagship completed the acquisition of a manufactured housing community in Seymour, Ind., for total consideration of approximately $45-million (U.S.), which will be financed primarily through new debt financing sources. Additionally, the REIT also waived due diligence on the acquisition of an MHC portfolio in the greater Cincinnati, Ohio, market, composed of three separate MHCs for total consideration of $34-million (U.S.), which is expected to close in November, 2025. This acquisition will be financed through the assumption of $14.3-million (U.S.) of debt at a weighted-average interest rate of 2.84 per cent, as well as additional debt financing sources. The acquisitions are being financed with a new $70-million (U.S.) unsecured term loan. The Seymour MHC is composed of 744 lots, of which 91.2 per cent are occupied, and includes 85 lots for future expansion, representing occupancy upside potential and lot expansion opportunities. The greater Cincinnati MHCs are composed of 496 lots across three MHCs, of which 65.5 per cent is occupied. The acquisitions are consistent with Flagship's strategy of acquiring underperforming MHCs with significant vacancy and adding value through occupancy growth and lot expansion. "These strategic acquisitions expand Flagship's presence in our key markets of Indiana and Ohio, thereby enabling us to generate economies of scale and operational synergies," said Kurt Keeney, president and chief executive officer. "Through the installation of new amenities and the potential to add 85 lots at the Seymour MHC and the occupancy upside potential for the three greater Cincinnati MHCs, we expect these acquisitions to be highly desirable home ownership options that will also add value for unitholders." The Seymour, Ind., MHC is located halfway between Louisville, Kentucky and Indianapolis, Ind., and 88 miles west of Cincinnati, Ohio. The MHC is close to schools and retail centres as well as major employers like Walmart Distribution Center, Schneck Medical Center, Valeo Sylvania LLC, Cummins Industrial, Ruler Foods and Silgan Plastics. The greater Cincinnati, Ohio, MHCs are composed of three separate communities located in Cleves, New Richmond and Morrow, Ohio. Each MHC features on-site amenities and is in close proximity to major employers, interstate highways and retail centres. All of these locations are within a 30-minute drive of Flagship's main office in Fort Mitchell, Ky. "These acquisitions are another example of our ability to secure off-market opportunities through our long-standing industry relationships and operating expertise," said Nathan Smith, chief investment officer. "These acquisitions adhere to our strict criteria of being strategically located in existing markets where we operate, allowing us to streamline operating efficiencies in Indiana and the greater Cincinnati area. These MHCs also have significant growth potential as we look to add amenities, increase occupancy and pursue lot expansion." 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. We seek Safe Harbor.