FLAGSHIP COMMUNITIES REIT TO ACQUIRE 11th EVANSVILLE MANUFACTURED HOUSING COMMUNITY FOR US$23 MILLION
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TORONTO, Aug. 21, 2023 /CNW/ - Flagship Communities Real Estate Investment Trust ("Flagship" or the "REIT") (TSX: MHC.U) (TSX: MHC.UN) today announced it will acquire a manufactured housing community ("MHC") in Evansville, Indiana (the "Acquisition"), for a purchase price of approximately US$23 million. The Acquisition is expected to close on or about September 19, 2023 subject to customary closing conditions.
"Evansville has become a strategic component of Flagship's MHC portfolio since we began operating there in 2015," said Kurt Keeney, President and Chief Executive Officer. "We are excited to add our 11th community in this market, in what will be a best-in-class offering for Evansville and the surrounding metro area. The well-established community is located near a major metro area and will provide us the opportunity for stable and continuing growth in the Evansville market, while adding incremental occupancy growth at all of our Evansville communities."
The purchase price of US$23 million will be funded with cash on the REIT's balance sheet and additional leverage.
"Continuing our solid performance in the Evansville market, this community aligns perfectly with our acquisition criteria in the manufactured housing industry," added Nathan Smith, Chief Investment Officer. "With a high existing occupancy rate and our experienced management strength, we expect to maximize operational efficiencies and achieve economies of scale."
The Evansville, Indiana community comprises 309 lots of which, approximately 95% are occupied.
The Acquisition will be the 11th Flagship community located in the Evansville area. The community is located 10 minutes from downtown Evansville. Home to Deaconess Midtown Hospital, St. Vincent Healthcare, Berry Global and other manufacturers, Evansville is located in southern Indiana, just across the Ohio River from Henderson and Owensboro, Kentucky. There are ten colleges and universities serving the Evansville area including The University of Evansville, University of Southern Indiana, Ivy Tech Community College and Trinity College of the Bible.
The Acquisition is a targeted and strategic expansion of the REIT's portfolio, increasing the number of manufactured housing communities from 73 to 74 and the number of manufactured housing lots from 13,407 to 13,716. The table below provides a summary of the pending Acquisition as of August 21, 2023.
Acquisition Portfolio | ||
# of Lots | (#) | 309 |
Average Lot Occupancy | ( %) | 95 |
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.
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
Eddie Carlisle, Chief Financial Officer, Flagship Communities Real Estate Investment Trust, Tel: +1 (859) 568-3390
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