Flagship Communities REIT to acquire manufactured housing community for USD5.3m
Flagship Communities Real Estate Investment Trust (Flagship) has completed the acquisition of a manufactured housing community in Little Rock, Arkansas for a purchase price of approximately USD5.3 million.
The acquisition is 76.6 per cent leased currently and is expected to be immediately accretive to the REIT's adjusted funds from operations (AFFO) on a per unit basis.
The purchase price of USD5.3 million will be funded with cash on the REIT's balance sheet. The REIT's pro forma debt to gross book value following the Acquisition is expected to be ~47.1 per cent.
"Building on our active pipeline of accretive acquisitions (seven new communities in December 2020 and three in February 2021), the Little Rock acquisition is another great addition to our portfolio and expands the REIT's footprint in our core markets," says Kurt Keeney, President and Chief Executive Officer. "Adhering to our stated acquisition strategy, the Acquisition enables the REIT to expand its presence into the attractive market of Little Rock, AR and is immediately accretive to the REIT's AFFO per unit with additional above market growth over time."
"We are pleased to source and successfully execute another off-market acquisition through our long-standing industry relationships," says Nathan Smith, Chief Investment Officer. "This acquisition provides an entry opportunity into Arkansas while creating management synergies with nearby existing communities in southwestern Kentucky.