Flagship Communities Real Estate Investment Trust · TSX:MHC.U
Flagship Communities Real Estate Investment Trust — Q3 2021 Earnings Presentation
18 slides from Flagship Communities Real Estate Investment Trust's earnings presentation, Nov 11, 2021
Slide 1: Q3 2021 Investor Presentation
Q3 2021 Investor Presentation November 11, 2021
Slide 2: Disclaimers
Disclaimers General This presentation 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", "e
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: Expanding Footprint Into New Markets
Expanding Footprint Into New Markets Leveraging strong operating capabilities and demonstrating ability to apply business model into new markets 4
Slide 5: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights 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 Autumn Lake Pointe, Kentucky Whispering Oaks Pointe, Kentucky
Slide 6: Benefits of MHCs vs. Multi-Family Apartments
Benefits of MHCs vs. Multi-Family Apartments ü Amenable to social distancing ü Housing affordability ü Pride of home ownership ü Ability to build home equity ü Detached home with deck, yard, driveway and in-house laundry ü Attractive lifestyle & amenities Mutually Beneficial Rental Relationship Betw
Slide 7: Fragmented Industry Presents Acquisition Opportunities
Fragmented Industry Presents Acquisition Opportunities MHC Industry Market Share ! Industry primarily comprised of local owner-operators operators ! Top 50 investors estimated to control ~17% of manufactured housing lots for rent ! ~5,300 communities within Flagship’s current target markets Source:
Slide 8: 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 Grandin Pointe, Indiana economies of scale • Adjacent U.S. states where we currently operate, or new states with simi
Slide 9: Entered State #6: Missouri
Entered State #6: Missouri Pin Oak Pointe in O’Fallon, Missouri (suburb of St. Louis) 9
Slide 10: Expanded into Central Indiana market
Expanded into Central Indiana market Deerfield Run Pointe, Anderson, Indiana 10
Slide 11: Entered State #7: Illinois
Entered State #7: Illinois Woodland Acres Pointe, Springfield, Illinois 11
Slide 12: RV Resort Communities
RV Resort Communities Glacier Hill Lakes, Ohio Oak Creek Resort, Kentucky 12
Slide 13: Q3 2021 Financial Summary
Q3 2021 Financial Summary ($000s except per share amounts) For the three months ended September 30, 2021 Actual Results Forecast Variance Revenue, Total Portfolio 11,399 9,068 2,331 Revenue, Same Community1 Properties 9,218 9,068 150 Revenue, Acquisitions 2,181 - 2,181 Net Income and comprehensive i
Slide 14: MHC Portfolio as of September 30, 2021
MHC Portfolio as of September 30, 2021 Total MHCs (#) 58 Total Manufactured Housing Lots (#) 9,904 Total Lot Occupancy (%) 81.9 Total Lot Average Monthly Revenue (US$) 365 Operational Metrics within Management’s Expectations 14
Slide 15: 5% Monthly Cash Distribution Increase in Year One
5% Monthly Cash Distribution Increase in Year One 58 Communities across 7 states as at Sept. 30, 2021 15
Slide 16: Stable and Consistent Occupancy
Stable and Consistent Occupancy Lot Rent Occupancy Consistent Same Community Stable and Growing Same Lot Rent Growth Community Occupancy 16
Slide 17: 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 18: Q3 2021 Investor Presentation
Q3 2021 Investor Presentation November 11, 2021
Flagship Communities Real Estate Investment Trust — Q3 2021 Earnings Presentation on 6ix