Flagship Communities Real Estate Investment Trust Announces Fourth Quarter and Full Year 2025 Results

Executive Summary

• Flagship Communities REIT reported Q4 2025 and FY 2025 results showing revenue growth of 15.6% (Q4) and 17.3% (FY) versus prior year, with net income up 81.1% YoY in the quarter and 11.7% for the full year.
• The REIT completed two strategic acquisitions—an MHC in Seymour, Indiana ($45 M) funded by a new $70 M term loan, and a three‑property portfolio in Greater Cincinnati, Ohio ($34 M) financed through debt assumption of $14.3 M—totaling US$79 million of purchase price.
• NAV increased to $804.8 M (up 20% YoY) with NAV per unit rising to $31.93; occupancy remained stable around 83%, and liquidity stood at approximately $19.7 M.

Key Details

• Revenue & Income
• Q4 2025 rental revenue: $27.5 M (+15.6% YoY).
• FY 2025 rental revenue: $103.4 M (+17.3% YoY).
• Net income Q4 2025: $45.5 M vs. $25.2 M prior year (+81.1%).

• Net income FY 2025: $115.7 M vs. $103.5 M (+11.7%).

• Operating Metrics

• NOI Q4 2025: $18.4 M (+15.3% YoY); FY 2025 NOI: $68.4 M (+17.1%).
• NOI margin remained near prior‑year levels (67.0% vs. 67.1% Q4).
• FFO per unit Q4 2025: $0.365 (−4.9% YoY); FY 2025 FFO per unit: $1.446 (+12.1%).

• AFFO per unit Q4 2025: $0.330 (−12.0% YoY); FY 2025 AFFO per unit: $1.317 (+12.9%).

• Acquisitions

• Seymour, Indiana MHC – purchase price ≈ US$45 M; funded primarily by a new unsecured term loan of US$70 M.

• Greater Cincinnati, Ohio portfolio – three MHCs for US$34 M; financed via assumption of US$14.3 M debt at 2.84% weighted‑average interest plus additional debt sources.

• Portfolio Overview (as of Dec 31 2025)

• Total communities: 87 (up from 82).
• Total lots: 16,920 (↑1,783).
• Weighted average lot rent: US$483 (↑US$35 YoY).

• Occupancy – total portfolio 82.9% (down 0.6 pts); Same‑Community occupancy 83.9% (down 0.2 pts).

• Balance Sheet & Liquidity

• NAV: $804.8 M vs. $670.8 M prior year; NAV per unit $31.93 vs. $26.71.
• Debt to Gross Book Value: 39.2% (up from 38.1%).
• Weighted‑average mortgage interest rate: 4.54%; term to maturity 8.2 years.

• Cash & equivalents + credit line capacity: ≈ $19.7 M.

• Outlook

• Management reaffirmed a positive outlook for the manufactured housing sector, citing continued supply constraints and strong demand fundamentals.
• No material debt maturities until 2030; expects to fund future growth through internal cash flow and opportunistic financing.

Notable Quotes

“Throughout the year, we delivered the strong, consistent performance that has defined our business since going public… We remain confident in the outlook for manufactured housing…” – Kurt Keeney, President & CEO.