Flagship Communities REIT Reports 24% Rental Revenue Growth Amid Operating Cost Challenges

Flagship Communities Real Estate Investment Trust reported strong financial performance for the first quarter of 2025, with a 24% increase in rental revenue and nearly 13% growth in same community revenue and net operating income. Despite these gains, the company faces challenges including rising operating expenses, higher property taxes, insurance costs, and a slow transaction market for manufactured housing communities. Occupancy rates improved to 84.4% but remain below the full potential of 95%, and rent increases were implemented partly to offset rising expenses. Flagship successfully refinanced its near-term debt with favorable terms for the next decade, supporting financial stability. The REIT declared a monthly cash distribution of US$0.0517 per unit, reflecting its commitment to investor returns, though distributions may be subject to U.S. withholding tax for some unitholders. Additionally, all nominated trustees were re-elected at the annual meeting, and the company received the 2025 National Community Operator of the Year Award, underscoring its operational excellence and community impact.