Flagship Communities Real Estate Investment Trust Bolsters Presence in Key Market of Ohio

Executive Summary

• Flagship Communities REIT announced the acquisition of a 96‑lot manufactured housing community in Cleves, Ohio for approximately $6.0 million.
• The purchase was funded with cash on hand and the issuance of Class B units at $19.54 per unit (10‑day VWAP).
• The newly acquired community is 96% occupied, offers potential expansion for an additional 12 lots, and enhances Flagship’s presence in the Greater Cincinnati market.

Key Details

• Acquisition Target: 96‑lot manufactured housing community (“MHC”) located in Cleves, Ohio; includes future land expansion potential for up to 12 additional lots.
• Purchase Price: Approximately $6.0 million, representing a 5% discount to the appraised value.
• Funding Structure: Combination of cash on hand and issuance of Class B units by Flagship Operating, LLC at $19.54 per unit (based on the 10‑day VWAP).
• Occupancy: Current occupancy is 96%, providing upside potential for further lease-up.
• Strategic Rationale: Expands Flagship’s footprint in Ohio, adds a third MHC in Cleves, and creates economies of scale and operating efficiencies.
• Previous Improvements (by seller Empower): New street paving, solar lighting, clubhouse, playground, ball field, basketball court.
• Location Advantages: Near Interstate 275/74, close to recreational amenities, retail services, and the Cincinnati metropolitan area.
• Agreement Basis: Acquisition made under a right‑of‑first‑offer agreement dated October 7 2020 between Flagship Operating, LLC and Empower Park, LLC.

Notable Quotes

“This Acquisition reflects the disciplined growth strategy that has defined Flagship for more than 30 years – buying established communities with occupancy and growth potential,” — Kurt Keeney, President & CEO.

“We are very fortunate to acquire a third high‑quality MHC in Cleves, Ohio… we expect this Acquisition will continue to allow us the opportunity to improve operating efficiencies and generate economies of scale.” — Nathan Smith, Chief Investment Officer.