Flagship Communities Real Estate Investment Trust · TSX:MHC.U
Flagship Communities Real Estate Investment Trust — Q4 2023 Earnings Presentation
15 slides from Flagship Communities Real Estate Investment Trust's earnings presentation, Mar 15, 2024
Slide 1: Q4 2023 Investor Presentation
Q4 2023 Investor Presentation March 15, 2024
Slide 2: Disclaimers
Disclaimers General This presentation contains statements that include forward-looking information (within the meaning of applicable Canadian When relying on forward‐looking statements to make decisions, the REIT cautions readers not to place undue reliance on securities laws). Forward-looking state
Slide 3: Presenting management team
Kurt Keeney President & Chief Executive Officer Nathan Smith Chief Investment Officer Eddie Carlisle Chief Financial Officer
Slide 4: Q4 2023 Highlights
Q4 2023 Highlights REVENUE FUNDS FROM OPERATIONS1 $18.8 M $6.2 M $4.9 M $15.7 M 19.5% 27.9% Q4 2022 Q4 2023 Q4 2022 Q4 2023 NET OPERATING INCOME ADJUSTED FUNDS FROM OPERATIONS1 $5.5 M $12.4 M $4.1 M $10.4 M 20.0% 32.5% Q4 2022 Q4 2023 Q4 2022 Q4 2023 1See “Non-IFRS Financial Measures and Real Estate
Slide 5: Increases in Same Community Metrics
Increases in Same Community Metrics SAME COMMUNITY REVENUE1 SAME COMMUNITY SAME COMMUNITY NET OPERATING INCOME1 NET OPERATING INCOME 11.8% MARGIN1 15.6% 2.2% $15.7M $14.0M 68.2% 10.7M 66.0% $9.2M Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 1See “Non-IFRS Financial Measures and Real Estate Indust
Slide 6: Conservative Low-Cost Debt Profile
Conservative Low-Cost Debt Profile Pro Forma as at December 31, 20231 Principal payments Year % of Total Principal due during period 2024 $281 0.1% 2025 $274 0.1% 2026 $288 0.1% 2027 $613 0.2% 2028 $2,012 0.5% Thereafter $373,300 99.0% TOTAL $376,768 No Substantial Debt Maturities Until 2030 1In $00
Slide 7: MHCs: Cost-Effective Pathway to Home Ownership
MHCs: Cost-Effective Pathway to Home Ownership ▪ Housing affordability ▪ Pride of home ownership ▪ Ability to build home equity A MANUFACTURED HOME BEING DELIVERED TO A FLAGSHIP LOT ▪ Detached homes with deck, yard, driveway and in-house laundry ▪ Attractive lifestyle & amenities NEWLY INSTALLED PIC
Slide 8: Stable and Consistent Occupancy
Stable and Consistent Occupancy Lot Rent Occupancy Consistent Same Stable and Growing Same Community Lot Rent Growth Community Occupancy 8
Slide 9: Optimizing Organic Opportunities
Optimizing Organic Opportunities Significant Opportunities to Increase Growth of Organic Portfolio: ▪ Higher Occupancy Rates ▪ Cost Containment Initiatives ▪ Customer Satisfaction EVANSVILLE, INDIANA 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 LAKEVIEW, OHIO RESORT STYLE COMMUNITY and generate economies of scale ▪ Adjacent U.S. states where we currently operate, or new stat
Slide 11: 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 12: Q4 2023 Financial Summary
Q4 2023 Financial Summary ($000s except per share amounts) For the three For the three For the year-ended For the year-ended months ended months ended Variance Variance Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 Rental revenue and related income 18,761 15,700 3,061 71,052 58,798 12,254
Slide 13: MHC Portfolio
MHC Portfolio As of Dec. 31, 2023 As of Dec. 31, 2022 Total communities (#) 75 69 Total lots (#) 13,780 12,601 Weighted Average Lot Rent1 (US$) 414 388 Total Portfolio Occupancy (%) 83.6 83.1 Same Community Occupancy (%) 84.8 83.6 Debt to Gross Book Value1 (%) 40.3 42.9 Weighted Average Mortgage (%)
Slide 14: Flagship Communities REIT
Flagship Communities REIT The Only Pure Play MHC Investment in Canadian Capital Markets Page14 14
Slide 15: Q4 2023 Investor Presentation
Q4 2023 Investor Presentation March 15, 2024
Flagship Communities Real Estate Investment Trust — Q4 2023 Earnings Presentation on 6ix