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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.
|
Acquisition
Portfolio
|
# of Lots
|
(#)
|
660
|
Average Lot
Occupancy
|
( %)
|
67
|
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