FLAGSHIP COMMUNITIES REIT TO ACQUIRE THREE MANUFACTURED HOUSING COMMUNITIES FOR US$21 MILLION

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TORONTO, May 3, 2023 /CNW/ - Flagship Communities Real Estate Investment Trust ("Flagship" or the "REIT") (TSX: MHC.U) (TSX: MHC.UN) today announced that it will acquire three communities in Indiana, Arkansas and Tennessee (the "Acquisitions"), for a purchase price of approximately US$21 million. The Acquisitions have an average occupancy rate of 67% and are expected to close on or about May 4, 2023 subject to customary closing conditions. 

"These acquisitions align with our strategy to increase our presence in our core states to enhance efficiencies and achieve economies of scale," said Kurt Keeney, President and Chief Executive Officer. "These properties are located in highly desirable, high growth areas and are expected to generate above-market growth."

The purchase price of US$21 million will be funded with cash on the REIT's balance sheet, including from sales of the REIT's at-the-market equity program.

"We continue to see prominent deal flow in the Manufactured Housing Community space that adheres to our strict acquisition criteria," added Nathan Smith, Chief Investment Officer. "All three of these properties allow for an increased market presence in key states in the US Midwest and with an average occupancy rate of 67%, we have the opportunity to grow and make improvements to the performance of these communities over time and increase long-term unitholder value."

Overview of the Acquisitions

Clarksville, Indiana

The Clarksville, Indiana community comprises 334 lots of which, 47% are occupied.

While located in Indiana, the acquisition is considered part of the Louisville, Kentucky Metro area with its proximity to the bridge across the Ohio River.

The booming Louisville, Kentucky economy is within an easy commute for residents of Clarksville. Louisville's major employers include UPS, Jefferson County Schools, Norton Healthcare, Ford Motor Company (two plants), Humana and GE Home Appliances and Churchill Downs.

Clarksville is home to several public and private K-12 school districts. The acquisition is located near Indiana Gateway Digital Academy, Indiana Southeast University, Spaulding University, and the University of Louisville.

Conway, Arkansas

The Conway, Arkansas community comprises 200 lots of which 82% are occupied.

Located in Conway just north of Little Rock, Arkansas and near Lake Conway, the acquisition consists of picnic areas, a playground, pavilions, and duck ponds as well as a community center. Conway is a suburban location that includes plenty of shopping, churches, schools, and a downtown area.

Located less than 30 minutes from Little Rock, the state capitol of Arkansas, Conway's major employers include Amazon, Deloitte, Target, Verizon and the U.S. Air Force. Local employers include Baptist Health Medical Center-Conway, University of Central Arkansas, and many private businesses.

Conway has several public and private schools and is close to the University of Central Arkansas, Arkansas Coding Academy, Hendrix College, Stayer University and Philander Smith College.

Jackson, Tennessee

The Jackson, Tennessee community comprises 126 lots of which 97% are occupied.

Southwest of Nashville and 70 miles east of Memphis, the Jackson acquisition is located within the county seat of Madison County, Tennessee. Jackson is a regional center for trade in West Tennessee. Located near Highway 412, the community is also near Lake Graham boating and recreation area. Community amenities include a basketball court, playground, and clubhouse.

Jackson includes shopping and medical facilities, entertainment, and schools along with major employers that include West Tennessee Healthcare, Delta Faucet Company, The Kellogg Company, City of Jackson, Jackson-Madison School System, Union University, Madison County and Stanley Black & Decker.

Jackson has numerous public and private schools, and is also home to Jackson State Community College, West Tennessee Business College, Lane College and Union University.

Pro Forma Portfolio

The Acquisitions are a targeted and strategic expansion of the REIT's portfolio, increasing the number of manufactured housing communities from 70 to 73 and the number of manufactured housing lots from 12,721 to 13,381. The table below provides a summary of the pending Acquisition as of April 24, 2023.

About Flagship Communities Real Estate Investment Trust

Flagship Communities Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been formed to own and operate a portfolio of income-producing manufactured housing communities located in Kentucky, Indiana, Ohio, Tennessee, Arkansas, Illinois, and Missouri, including a fleet of manufactured homes for lease to residents of such housing communities.

Forward-Looking Statements

This press release contains statements that include forward-looking information (within the meaning of applicable Canadian securities laws). Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "can", "could", "would", "must", "estimate", "target", "objective", and other similar expressions, or negative versions thereof, and include statements herein under the heading "Outlook" and otherwise concerning: macro characteristics and trends in the United States real estate and housing industry, as well as the MHC industry specifically.

These statements are based on the REIT's expectations, estimates, forecasts, and projections, as well as assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies that could cause actual results to differ materially from those that are disclosed in such forward-looking statements. While considered reasonable by management of the REIT as at the date of this press release, any of these expectations, estimates, forecasts, projections, or assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those expectations, estimates, forecasts, projections, or assumptions could be incorrect. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risks and Uncertainties" herein, as well as risk factors discussed in the Annual Information Form. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Flagship Communities Real Estate Investment Trust