Flagship Communities Real Estate Investment Trust Announces Largest Acquisition in the REIT’s History - Seite 3

Milton, West Virginia (Huntington MSA)

The Milton, West Virginia acquisition comprises 213 lots across approximately 33 acres. It is located 15 miles east of Huntington, West Virginia, within a quiet, well-maintained neighborhood near schools, shopping centers, hospitals, entertainment and more. The community is 66% occupied, including 21 rental homes. This community offers residents many amenities including a new playground, a clubhouse equipped with a full kitchen and billiards. The community is located adjacent to Interstate 64, providing excellent access to major transportation routes. Nearby employers include Mountain Health Network, Marshall University, Cabell County Board of Education, University Physicians & Surgeons, Walmart, Huntington Alloys Corp., Alcon Research LLC and Steel of West Virginia Inc.

Beckley, West Virginia (2 Communities)

The Beckley, West Virginia acquisitions comprise 2 communities. The first community comprises 120 lots across approximately 15 acres and is 87% occupied including 12 rental homes. The second community comprises 57 lots across approximately 14 acres and is 68% occupied including 7 rental homes. Both communities are well-maintained offering residents well-lit, paved streets and are centrally located, with easy access to schools, hospitals, post offices, doctors’ offices, shopping malls, movie theaters, restaurants and outdoor activities. The communities are located adjacent to Interstates 64 and 77, providing excellent access to major transportation routes. Nearby employers include Filter Companies, Lowe’s Home Improvement, McDonald’s, US Army, Enterprise, IBEX Global, AT&T and UPS.

Pro Forma Portfolio

The Acquisitions are a targeted and strategic expansion of the REIT’s portfolio, increasing the number of Flagship’s MHCs to 82 from 75 and the number of manufactured housing lots to 15,033 from 13,780. The table below provides a summary of the pending Acquisitions as of April 17, 2024.

		Acquisitions Portfolio
# of Communities	(#)	7
# of Lots	(#)	1,253
Average Lot Occupancy	(%)	78

Equity Financing

The REIT also announced today that it has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Canaccord Genuity Corp. (together, the “Lead Underwriters”) to sell, on a bought deal basis, 3,910,000 Units at a price of US$15.35 per Unit for gross proceeds of approximately US$60 million (the “Offering”). The REIT has also granted the underwriters an over-allotment option to purchase up to an additional 15% of the Offering on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering. The Offering is expected to close on or about April 24, 2024 and is subject to customary conditions, including the approval of the Toronto Stock Exchange. The Offering is not conditional upon closing of either of the Acquisitions.