Flagship Communities Real Estate Investment Trust Expands Presence in Key Markets

ACQUIRES FOUR COMMUNITIES IN INDIANA AND OHIO FOR TOTAL CONSIDERATION OF US$79 MILLION

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

TORONTO, Nov. 03, 2025 (GLOBE NEWSWIRE) — Flagship Communities Real Estate Investment Trust (TSX:MHC.U) (TSX:MHC.UN) (“Flagship” or the “REIT”) today announced two strategic acquisitions for total consideration of US$79 million, expanding its presence in both Indiana and Ohio (the “Acquisitions”). The Acquisitions are expected to be immediately accretive to the REIT’s adjusted funds from operations (“AFFO”) on a per Unit basis.   

Flagship completed the acquisition of a manufactured housing community (“MHC”) in Seymour, Indiana, for total consideration of approximately US$45 million, which will be funded primarily through new debt financing sources. Additionally, the REIT also waived due diligence on the acquisition of an MHC portfolio in the Greater Cincinnati, Ohio market, comprised of three separate MHCs for total consideration of US$34 million, which is expected to close in November 2025. This acquisition will be funded through the assumption of US$14.3 million of debt at a weighted average interest rate of 2.84% as well as additional debt financing sources. The Acquisitions are being funded with a new US$70 million unsecured term loan.

The Seymour MHC is comprised of 744 lots of which 91.2% are occupied and includes 85 lots for future expansion, representing occupancy upside potential and lot expansion opportunities. The Greater Cincinnati MHCs are comprised of 496 lots across three MHCs, of which 65.5% are occupied. The Acquisitions are consistent with Flagship’s strategy of acquiring under-performing MHCs with significant vacancy and adding value through occupancy growth and lot expansion.

“These strategic Acquisitions expand Flagship’s presence in our key markets of Indiana and Ohio, thereby enabling us to generate economies of scale and operational synergies,” said Kurt Keeney, President and Chief Executive Officer. “Through the installation of new amenities and the potential to add 85 lots at the Seymour MHC and the occupancy upside potential for the three Greater Cincinnati MHCs, we expect these Acquisitions to be highly desirable home-ownership options that will also add value for unitholders.”

The Seymour, Indiana MHC is located halfway between Louisville, Kentucky and Indianapolis, Indiana and 88 miles west of Cincinnati, Ohio. The MHC is close to schools and retail centers as well as major employers like Walmart Distribution Center, Schneck Medical Center, Valeo Sylvania LLC, Cummins Industrial, Ruler Foods and Silgan Plastics.

The Greater Cincinnati, Ohio MHCs are comprised of three separate communities located in Cleves, New Richmond and Morrow, Ohio. Each MHC features on-site amenities and is in close proximity to major employers, interstate highways and retail centers. All of these locations are within a 30-minute drive of Flagship’s Main office in Ft. Mitchell, Kentucky.

“These Acquisitions are another example of our ability to secure off-market opportunities through our long-standing industry relationships and operating expertise,” said Nathan Smith, Chief Investment Officer. “These Acquisitions adhere to our strict criteria of being strategically located in existing markets where we operate, allowing us to streamline operating efficiencies in Indiana and the Greater Cincinnati area. These MHCs also have significant growth potential as we look to add amenities, increase occupancy and pursue lot-expansion.”

About Flagship Communities Real Estate Investment Trust

Flagship Communities Real Estate Investment Trust is a leading operator of affordable residential MHCs primarily serving working families seeking affordable home ownership. The REIT owns and operates exceptional residential living experiences and investment opportunities in family-oriented communities in Kentucky, Indiana, Ohio, Tennessee, Arkansas, Missouri, West Virginia, and Illinois. To learn more about Flagship, visit www.flagshipcommunities.com.

Forward-Looking Statements

This news 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 concerning: the pending acquisition of an MHC portfolio in the Greater Cincinnati, Ohio, including the expected timing thereof and sources of funding therefor; the expected performance of the Acquisitions; the potential for future expansion;

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 news 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. Material factors and assumptions used by management of the REIT to develop the forward-looking information in this news release include, but are not limited to, the REIT’s current expectations about: vacancy and rental growth rates in MHCs and the continued receipt of rental payments in line with historical collections; demographic trends in areas where the MHCs are located; the applicability of any government regulation concerning MHCs and other residential accommodations; the availability of debt financing and future interest rates, as there is no guarantee that the future Federal Reserve will continue to hold or decrease interest rates; increasing expenditures and fees, in connection with the ownership of MHCs, driven by inflation or tariffs; tax laws; and general economic conditions.

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 or referenced under the heading “Risks and Uncertainties” in the REIT’s most recent annual and subsequent interim Management’s Discussion & Analysis or otherwise disclosed 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. Further, certain forward-looking statements included in this news release may be considered as “financial outlook” for purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than to understand management’s current expectations and plans relating to the future, as disclosed in this news release. Forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

An explanation (which is incorporated by reference herein) of the composition of AFFO can be found under the heading “Non-IFRS Financial Measures” in the REIT’s most recent Management’s Discussion & Analysis (which can be accessed under the REIT’s SEDAR+ profile at www.sedarplus.com).

For further information, please contact:

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