Flagship Communities Real Estate Investment Trust · TSX:MHC.U
Flagship Communities Real Estate Investment Trust — Q2 2021 Earnings Presentation
16 slides from Flagship Communities Real Estate Investment Trust's earnings presentation, Aug 11, 2021
Slide 1: Q2 2021 Investor Presentation
Q2 2021 Investor Presentation August 11, 2021
Slide 2: Disclaimers
Disclaimers General This presentation contains statements that include forward-looking information (within the meaning of applicable Canadian securi ties laws). Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "
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: Exporting Business Model to New Operating Regions
Exporting Business Model to New Operating Regions Arkansas: Highlights Missouri: Highlights Anderson, Indiana: Evansville, Highlights Indiana: Highlights • 76.6% leased • 502 lots • 92% occupancy rate • 3 acres of expansion land adjacent to • Expected to be • 103 acres • Expected to Pinecrest Pointe
Slide 5: St. Louis, Missouri
St. Louis, Missouri 5
Slide 6: Anderson, Indiana
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Slide 7: Q2 2021 Overview
Q2 2021 Overview Revenues, Net Operating Income, Adjusted Funds from Operations all ABOVE forecasts, mainly due to: • Acquisitions completed to date • Revenue sharing agreements in place • Cost containment initiatives realized Strong Q2 2021 Results Indicative of Solid MHC Industry Fundamentals 7
Slide 8: Benefits of MHCs vs. Multi-Family Apartments
Benefits of MHCs vs. Multi-Family Apartments ✓ Amenable to social distancing ✓ Housing affordability ✓ Pride of home ownership ✓ Ability to build home equity ✓ Detached home with deck, yard, driveway and in-house laundry ✓ Attractive lifestyle & amenities Mutually Beneficial Rental Relationship Betw
Slide 9: Fragmented Industry with Limited New Supply
Fragmented Industry with Limited New Supply MHC Industry Market Share • 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 Source: Manufactured Housing
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 • Adjacent U.S. states where we currently operate, or new states with similar characteristics as e
Slide 11: Q2 2021 Financial Summary
Q2 2021 Financial Summary ($000s except per share amounts) For the three months ended June 30, 2021 Actual Results Forecast Variance Revenue, Total Portfolio 9,835 9,029 806 Revenue, Same Community1 Properties 9,107 9,029 78 Revenue, Acquisitions 728 - 728 Net (loss) Income and comprehensive (loss)
Slide 12: MHC Portfolio as of June 30, 2021
MHC Portfolio as of June 30, 2021 Total MHCs (#) 55 Total Manufactured Housing Lots (#) 8,960 Total Lot Occupancy (%) 80.7 Total Lot Average Monthly Revenue (US$) 359 Operational Metrics within Management’s Expectations 12
Slide 13: MHC Industry has Strong Economic Fundamentals
MHC Industry has Strong Economic Fundamentals Consistent Track Record of Stable Average Annual NOI Growth Occupancy and Growing Rents of 4% over 20+ years Same-Property NOI Growth: Manufactured Housing vs. Other U.S. Real Estate Sectors Manufactured Housing Other U.S. Real Estate Sub-Sector Average
Slide 14: Stable and Consistent Occupancy
Stable and Consistent Occupancy Lot Rent Occupancy Consistent Same Community Stable and Growing Same Lot Rent Growth Community Occupancy 14
Slide 15: Well Positioned for Next Leg of Growth
Well Positioned for Next Leg of Growth • Strong balance sheet • No near-term debt obligations 15
Slide 16: Q2 2021 Investor Presentation
Q2 2021 Investor Presentation August 11, 2021
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