MHC.U Flagship Communities Real Estate Investment Trust

/Not for distribution to U.S. newswire services or dissemination in the United States./

TORONTO, Sept. 7, 2023 /CNW/ - Flagship Communities Real Estate Investment Trust ("Flagship" or the "REIT") (TSX: MHC.U) (TSX: MHC.UN) today announced it will acquire a Resort Style Community at Indian Lake in Lakeview, Ohio (the "Acquisition"), for a purchase price of approximately US$3 million. The Acquisition is expected to close on or about October 5, 2023 subject to customary closing conditions. 

"We are pleased to add another resort community to our Ohio portfolio," said Kurt Keeney, President and Chief Executive Officer. "This popular outdoor and boating recreation area is centrally located and enjoys a loyal following of visitors. The close proximity of this resort to one of our other resorts will allow for great economies of scale and management resources."

The purchase price of US$3 million will be funded with cash on the REIT's balance sheet with seller financing of $2M at 3% interest for 6 years.

"The addition of this Ohio Resort enables us to leverage our reputation, marketing and booking programs to the benefit of this new resort community" added Nathan Smith, Chief Investment Officer.

Lakeview, Ohio

The Lakeview, Ohio resort community comprises 62 sites, which can expand by up to five units. The community also includes 62 boat slips, three wave runner docks and a clubhouse. The Resort Park is approximately 95% occupied with no park-owned homes. It is a private and gated community, located approximately one-half hour from Flagship's RV Resort in Wapakoneta, Ohio.

The Acquisition is in a prime location in Lakeview, Ohio. The Resort Park is on the historic Indian Lake in Logan County, western Ohio. It was formerly known as Lewistown Reservoir and is a 5,100 acre lake approximately 20 miles (32 kms) southeast of Lima. As Ohio's second largest inland lake, it is fed by the north and south forks of the Upper Great Miami River, Cherokee Mans Run, Blackhawk Creek, and Van Horn Creek and is known to be a major tourism area in Ohio.

Pro Forma Portfolio

The Acquisition is a targeted and strategic expansion of the REIT's portfolio, increasing the number of communities from 74 to 75 and the number of manufactured housing and RV lots from 13,716 to 13,778. The table below provides a summary of the pending Acquisition as of September 7, 2023.

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 RV Resort Parks and 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 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