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TORONTO, July 2, 2021 /CNW/ – Flagship Communities Real Estate Investment Trust (the “REIT“) (TSX: MHC.U) announced today it has completed the previously-announced acquisition (the “Acquisition“) of two high-quality manufactured housing communities (“MHCs“) comprising 677 lots located in Indiana and Missouri for a purchase price of approximately US$66.4 million.
The purchase price of the Acquisition represents a capitalization rate of 5.1% on Year 1 net operating income and is expected to be immediately accretive to the REIT’s adjusted funds from operations (“AFFO“) per Unit on a leverage neutral basis.
“These acquisitions continue to demonstrate our ability to apply our proven business model across the United States,” said Kurt Keeney, President and Chief Executive Officer. “Since the completion of our initial public offering, we have significantly expanded the size and scale of our MHC portfolio and will continue to source acquisitions in our current operating footprint as well as adjacent markets.”
About Flagship Communities Real Estate Investment Trust
Flagship Communities Real Estate Investment Trust is a newly created, 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 and Missouri; including a fleet of manufactured homes for lease to residents of such housing communities.
This press release contains statements that include forward-looking information within the meaning of Canadian securities laws, including with respect to the expected impact of the Acquisition on the REIT’s AFFO per Unit. In some cases, forward-looking statements can be identified by terms such as “may”, “will”, “could”, “occur”, “expect”, “anticipate”, “believe”, “intend”, “estimate”, “target”, “project”, “predict”, “forecast”, “continue”, or the negative thereof or other similar expressions concerning matters that are not historical facts.
These forward-looking statements reflect the current expectations of the REIT regarding future events. The REIT has based these forward-looking statements on certain assumptions about future events and trends, including that: occupancy levels at the REIT’s properties stay consistent with recent past experience with very modest growth in the first year for much of the Acquisition; rent collections for the Acquisition are consistent with the trend generally experienced for the REIT’s portfolio; inflation remains relatively low; interest rates remain relatively stable; and tax laws remain unchanged. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect. The REIT cautions that this list of assumptions is not exhaustive.
Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REIT’s internal expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties and may not prove to be accurate and certain objectives and strategic goals may not be achieved. A variety of factors, many of which are beyond the REIT’s control, could cause actual results in future periods to differ materially from current expectations of events or results expressed or implied by such forward-looking statements, such as the risks identified in the REIT’s current annual information form available at www.sedar.com, including under the heading “Risks and Uncertainties” therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made.
SOURCE Flagship Communities Real Estate Investment Trust
View original content: http://www.newswire.ca/en/releases/archive/July2021/02/c1111.html