FLAGSHIP COMMUNITIES REIT TO STRENGTHEN PORTOLIO WITH ACQUISITIONS IN KEY MARKETS

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TORONTO , Sept. 6, 2022 /CNW/ – Flagship Communities Real Estate Investment Trust (“Flagship” or the “REIT”) (TSX: MHC.U) (TSX: MHC.UN) announced today it has agreed to acquire two manufactured housing communities (“MHCs”) in key markets with the acquisition of properties in Louisville, Kentucky and Bloomington, Illinois (the “Acquisitions”) for an aggregate purchase price of approximately US$32.3 million. The Acquisitions are subject to customary closing conditions and are expected to close on or about October 5, 2022. 

“These acquisitions are located in two regions where we are continuing to expand our presence,” said Kurt Keeney, President and Chief Executive Officer.  “Growing our portfolio in key markets allows us to leverage operational efficiencies and economies of scale. The properties are located in highly desirable areas which are expected to generate above-market growth over time.”

The purchase price of US$32.3 million will be funded with cash on the REIT’s balance sheet and proceeds from a property specific mortgage on one of the properties.

“The acquisitions reflect the strong fundamentals of the MHC market, particularly in a time of increased housing costs and rising apartment rental rates,” said Nathan Smith, Chief Investment Officer. “We have been operating in Louisville for over 20 years and this is our third acquisition in the Springfield, Illinois region. With both communities at a nearly 80% occupancy rate at the outset, we have the opportunity to grow and make improvements to the performance of these communities.”

Overview of the Acquisitions

Bloomington, Illinois

Located just north of Springfield, the Bloomington, Illinois community is just minutes from the downtown area, and various shopping destinations, with easy access to Veteran’s Parkway and Interstates 74 and 55.

The City of Bloomington is located in the heart of Central Illinois, approximately 125 miles southwest of Chicago, 155 miles northeast of St. Louis, and 64 miles northeast of Springfield, the State Capital. Bloomington is the County Seat of McLean County, the largest county in Illinois (approximately 762,240 acres). Bloomington is located in one of the most productive agricultural areas of the United States and boasts an economy that is diverse and well-balanced.

Louisville, Kentucky

Flagship has been operating in Louisville, Kentucky for over 20 years. Louisville is home to UPS WorldPort and a center for advanced manufacturing and logistics, the world’s largest concentration of health and aging innovation companies, as well as among only a dozen U.S. cities that have five major performing arts groups.

Louisville is the regional economic hub and cultural and artistic heart of 24 surrounding counties in Kentucky and Southern Indiana. It’s also a strategic location for thousands of companies, including Clariant Corporation, Ford Motor Company, GE, Yum Brands!, Humana, Brown-Forman, and Texas Roadhouse.

Pro Forma Portfolio

The Acquisitions are a targeted and strategic expansion of the REIT’s portfolio, increasing the number of MHCs from 66 to 68 and the number of manufactured housing lots from 11,913 to 12,497. The table below provides a summary of the pending Acquisitions as of September 6, 2022:

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 Canadian securities laws. These forward-looking statements reflect the current expectations of the REIT regarding future events, including statements concerning the Acquisitions, including the timing for closing thereof, the expected funding of the Acquisitions, and the anticipated performance of the MHCs to be acquired pursuant to the Acquisitions. 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. Material factors and assumptions used by management of the REIT to develop the forward-looking information include, but are not limited to, the conditions to closing of the Acquisition being met or waived in a timely manner and the Acquisitions closing on the basis as originally negotiated. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

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 annual information form and management’s discussion and analysis (“MD&A”) for the year ended December 31, 2021 or the REIT’s most recent subsequently filed interim MD&A, in each case available under the REIT’s profile at www.sedar.com, including under the heading “Risk Factors” or “Risk 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.

For further information, please contact:

Eddie Carlisle, Chief Financial Officer
Flagship Communities Real Estate Investment Trust
Tel: +1 (859) 568-3390

SOURCE Flagship Communities Real Estate Investment Trust

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