Flagship Communities Real Estate Investment Trust · TSX:MHC.U
Flagship Communities Real Estate Investment Trust — Q3 2022 Earnings Presentation
16 slides from Flagship Communities Real Estate Investment Trust's earnings presentation, Nov 15, 2022
Slide 1: Q3 2022 Investor Presentation
Q3 2022 Investor Presentation November 15, 2022
Slide 2: Disclaimers
Disclaimers General This presentation contains statements that include forward-looking information (within the meaning of applicable When relying on forward‐looking statements to make decisions, the REIT cautions readers not to place undue Canadian securities laws). Forward-looking statements are id
Slide 3: Presenters: Kurt Keeney, Nathan Smith, Eddie Carlisle
Kurt Keeney President & Chief Executive Officer Nathan Smith Chief Investment Officer Eddie Carlisle Chief Financial Officer
Slide 4: Positive Outlook for MHC Industry
Positive Outlook for MHC Industry Same-Property NOI Growth: Manufactured Housing vs. Other U.S. Real Estate Sectors Manufactured Housing Other U.S. Real Estate Sub-Sector Average 8% Manufactured Housing NOI growth remained positive 6% throughout the 2007 - 2009 housing crisis and recession 4% 2% 0%
Slide 5: Proven Operator
Proven Operator MHC Industry Market Share Source: Manufactured Housing Institute ▪ Industry primarily comprised of local owner-operators ▪ Top 50 investors estimated to control ~17% of manufactured housing lots for rent ▪ ~5,300 communities within Flagship’s current target markets New Supply Constra
Slide 6: Stable and Consistent Occupancy
Stable and Consistent Occupancy Lot Rent Occupancy Consistent Same Stable and Growing Same Community Lot Rent Growth Community Occupancy 6
Slide 7: Conservative Low-Cost Debt Profile
Conservative Low-Cost, Debt Profile Obtain Secured Debt, Primarily on Fixed Rate Basis Allows Flagship to: 1) Maintain staggered maturities to lessen risk exposure 2) Ride out economic cycles WEST CARROLLTON, OHIO WILLIAMSTOWN, KENTUCKY 7
Slide 8: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights REVENUE NET OPERATING INCOME1 AFFO1 32.0% 29.7% 23.1% 15 11.4 9.8 4.6 7.6 3.8 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Added 10 Communities and 2,596 lots since September 30, 2021 1See “Other Real Estate Industry Metrics” for more information. 8
Slide 9: Acquisitions
Acquisitions Acquired two MHCs in key markets of Kentucky and Illinois: ▪ Continued to grow within core markets ▪ Bloomington community strategically located in central Illinois ▪ Over 25 years of operating experience in Louisville, Kentucky BLOOMINGTON, ILLINOIS LOUISVILLE, KENTUCKY 9
Slide 10: Disciplined Acquisition Criteria
Disciplined Acquisition Criteria All Flagship REIT acquisitions adhere to strict and disciplined criteria: ▪ Accretive to AFFO per unit ▪ Leverage management synergies and generate economies of scale EVANSVILLE, INDIANA ▪ Adjacent U.S. states where we currently operate, or new states with similar ch
Slide 11: Optimizing Organic Opportunities
Optimizing Organic Opportunities Significant Opportunities to Increase Growth of Organic Portfolio: ▪ Same Community Occupancy1 increased to 82.2% during Q3 2022 ▪ Same Community Net Operating Income1 increased 9.7% during Q3 2022 SPRINGFIELD, ILLINOIS 1See “Other Real Estate Industry Metrics” for m
Slide 12: Q3 2022 Financial Summary
Q3 2022 Financial Summary ($000s except per share amounts) For the three For the three For the nine months For the nine months ended months ended Variance ended Sept. 30, months ended Variance Sept. 30, 2022 Sept. 30, 2021 2022 Sept. 30, 2021 Rental revenue and related income 15,042 11,399 3,643 43,
Slide 13: MHC Portfolio
MHC Portfolio As of Sept. 30, 2022 As of Sept. 30, 2021 Total MHCs (#) 68 58 Total Manufactured Housing Lots (#) 12,500 9,904 Total Lot Average Monthly Revenue (US$) 385 365 Total Lot Occupancy (%) 83.1 81.9 Weighted Average Mortgage Term to Maturity: 11.7 years Weighted Average Mortgage Interest Ra
Slide 14: Benefits of MHCs
Benefits of MHCs ▪ Amenable to social distancing ▪ Housing affordability ▪ Pride of home ownership ▪ Ability to build home equity ▪ Detached homes with deck, yard, driveway and in-house laundry ▪ Attractive lifestyle & amenities Mutually Beneficial Rental Relationship Between Community Residents and
Slide 15: Flagship Communities REIT
Flagship Communities REIT The Only Pure Play MHC Investment in Canadian Capital Markets Page15 15
Slide 16: Q3 2022 Investor Presentation
Q3 2022 Investor Presentation November 15, 2022
Flagship Communities Real Estate Investment Trust — Q3 2022 Earnings Presentation on 6ix