TORONTO, May 04, 2026 (GLOBE NEWSWIRE) -- Flagship Communities Real Estate Investment Trust ("Flagship" or the "REIT") (TSX:MHC, MHC.UN)) today released its first quarter 2026 results. The financial results of the REIT have been prepared in accordance with International Accounting Standard 34 ("IAS 34") as issued by the International Accounting Standards Board ("IASB"). Results are shown in U.S. dollars, unless otherwise noted.
First Quarter 2026 ResultsCompared to First Quarter 2025 Results
Rental revenue and related income was $29.9 million, an increase of 20.6% compared to $24.8 million
Same Community Revenue1 was $26.9 million, up 8.6% compared to $24.8 million
Net income and comprehensive income was $22.1 million compared to $10.5 million
Net Operating Income ("NOI") was $19.3 million, up 17.4% compared to $16.4 million
Same Community NOI1 was $17.3 million, an increase of 5.3%, compared to $16.4 million
NOI Margin1 was 64.5% compared to 66.2%
Same Community NOI Margin1 was 64.2% compared to 66.2%
Funds from operations ("FFO") per unit (diluted)2 was $0.382 compared to $0.332, which was an increase of $0.050 per unit or 15.0%
FFO adjusted per unit (diluted)2 was $0.381 compared to $0.342 which was an increase of $0.039 per unit or 11.4%
Adjusted funds from operations ("AFFO") per unit (diluted)2 was $0.342 compared to $0.301, which was an increase of $0.041 per unit or 13.6%
AFFO adjusted per unit (diluted)2 was $0.341 compared to $0.310 which was an increase of $0.031 per unit or 10.0%
Rent Collections1 were 99.8%, an increase of 0.1% compared to 99.7%
Bolstered its presence in Ohio with the acquisition of a 96-lot manufactured housing community ("MHC") with land expansion potential
As at March 31, 2026
NAV1 and NAV per Unit1 were $822.9 million and $32.39, respectively, compared to $804.8 million and $31.93 as at December 31, 2025, respectively
Debt to Gross Book Value1 was 39.0% compared to 39.2% as at December 31, 2025
Total portfolio Occupancy1 was 84.1%, compared to 82.9% as at December 31, 2025
Same Community1 Occupancy1 was 84.8%, an increase of 1.4% when compared to Same Community Occupancy as at December 31, 2025, which was 83.4%
Subsequent to Quarter-End
Increased revolving Line of Credit to a total capacity to $33.0 million, extending the term to three years and improving pricing
Published its sixth annual Environmental, Social and Governance ("ESG") report, which highlighted continued progress across affordable housing, environmental stewardship, community investment and corporate governance
Awarded the 2026 Manufactured Home Community Operator of the Year award by the national Manufactured Housing Institute ("MHI"), marking its second consecutive win and fifth national Community Operator of the Year recognition from MHI.
1See "Other Real Estate Industry Metrics"2See "Non-IFRS Financial Measures"
"We've started 2026 with positive momentum, delivering solid growth across our portfolio while continuing to execute on our disciplined growth strategy," said Kurt Keeney, President and CEO. "During the quarter, we expanded our presence in the key market of Ohio through a strategic acquisition, while our recognition by MHI as Community Operator of the Year reinforces our focus on operating high-quality communities."
Financial Summary
($000s except per share amounts)
For the threemonths endedMar. 31, 2026
For the threemonths endedMar. 31, 2025
Variance
Rental revenue and related income
29,874
24,781
20.6
%
Same Community Revenue1
26,922
24,781
8.6
%
Acquisitions Revenue1
2,952
-
n/a
Net income and comprehensive income
22,120
10,459
111.5
%
NOI, total portfolio
19,259
16,403
17.4
%
Same Community NOI1
17,271
16,403
5.3
%
Acquisitions NOI1
1,988
-
n/a
NOI Margin1, total portfolio
64.5
%
66.2
%
(1.7
)%
Same Community NOI Margin1
64.2
%
66.2
%
(2.0
)%
Acquisitions NOI Margin1
67.3
%
-
n/a
FFO2
9,641
8,352
15.4
%
FFO per unit2
0.382
0.332
15.0
%
FFO adjusted2
9,613
8,580
12.0
%
FFO adjusted per unit2
0.381
0.342
11.4
%
AFFO2
8,641
7,572
14.1
%
AFFO per unit2
0.342
0.301
13.6
%
AFFO Payout Ratio2
47.3
%
51.2
%
(7.6
)%
AFFO adjusted2
8,613
7,800
10.4
%
AFFO adjusted per unit2
0.341
0.310
10.0
%
AFFO adjusted Payout Ratio2
47.4
%
49.6
%
(4.4
)%
Weighted average units (basic)
19,402,056
19,402,056
-
Weighted average units (Diluted)
25,246,331
25,121,258
125,073
See "Other Real Estate Industry Metrics"
See "Non-IFRS Financial Measures"
Financial Overview
Rental revenue and related income in the first quarter of 2026 was $29.9 million, an increase of 20.6% compared to the same period last year. This increase was driven by Acquisitions as well as lot rent increases across the REIT's portfolio.
Same Community Revenue for the first quarter 2026 was $26.9 million, up 8.6% from the same period last year. The increase in Same Community Revenue was a result of increasing monthly lot rent and ancillary revenues year over year combined with an increase to Same Community Occupancy.
Net income and comprehensive income for the three months ended March 31, 2026 was approximately $11.7 million more than the same period last year, as a result of the fair value adjustments on investment properties and Class B Units being $10.0 million more than in the same period in 2025.
NOI and NOI Margin for the first quarter of 2026 were $19.3 million and 64.5%, respectively, compared to $16.4 million and 66.2% during the first quarter of 2025.
Same Community NOI Margin for the first quarter 2026 was 64.2%, a (decrease) of (2.0)% compared to the same period last year.
While NOI saw an increase from amenity fees, NOI Margins were negatively impacted due to these corresponding services having a lower margin than what has historically been achieved by the REIT. Seasonal weather impacts also can increase costs and decrease margins.
Same Community Occupancy was 84.8% as at March 31, 2026, an increase of 1.4% when compared to Same Community Occupancy as at December 31, 2025, which was 83.4%.
FFO for the first quarter of 2026 was $9.6 million, a 15.4% increase from the first quarter of 2025. FFO per unit (diluted) for the three months ended March 31, 2026 was $0.382, resulting in an increase of 15.0%.
FFO adjusted was $9.6 million for the first quarter of 2026, a 12.0% increase compared to the same period last year. FFO adjusted per unit for the first quarter of 2026 was $0.381, an 11.4% increase compared to the same period in 2025.
AFFO for the first quarter of 2026 was $8.6 million, a 14.1% increase from the first quarter of 2025. AFFO per unit for the three months ended March 31, 2026 was $0.342, a 13.6% increase compared to the same period in 2025.
AFFO adjusted was $8.6 million for the first quarter of 2026, a 10.4% increase compared to the same period last year. AFFO adjusted per unit for the first quarter of 2026 was $0.341, a 10.0% increase compared to the same period in 2025.
Rent Collections for the first quarter of 2026 were 99.8%, an increase of 0.1% from the same period in 2025.
As at March 31, 2026 the REIT's Weighted Average Mortgage Interest Rate (see "Other Real Estate Industry Metrics" for more information) was 4.54%. The REIT's Weighted Average Mortgage Term (see "Other Real Estate Industry Metrics" for more information) to maturity was 8.0 years. Flagship has no substantial debt maturities until 2030.
Flagship's Liquidity (see "Other Real Estate Industry Metrics" for more information) as at March 31, 2026 was approximately $13.2 million consisting of cash, cash equivalents, and available capacity on lines of credit.
Subsequent to quarter-end, Flagship increased its revolving Line of Credit to a total capacity of $33.0 million, extending the term to three years, and eliminating the 0.50% spread.
Operations Overview
During the first quarter of 2026, Flagship acquired an MHC in Cleves, Ohio (the "Acquisition"). The 96-lot MHC also offers future land expansion potential that could support an additional 12 lots, while further expanding Flagship's presence in the key market of Ohio. The Acquisition follows Flagship's recent purchase of three communities in the Greater Cincinnati area, including one in Cleves.
Flagship also recently published its sixth ESG Report (the "Report"). The Report highlights Flagship's progress across affordable housing, environmental stewardship, community investment and corporate governance. The 2025 ESG Report outlines Flagship's continued investment in practical initiatives designed to support a more affordable, sustainable and community-focused living experience for residents across its manufactured housing communities. To access the ...
