Mr. Kurt Keeney reports

FLAGSHIP COMMUNITIES REAL ESTATE INVESTMENT TRUST EXPANDS PRESENCE IN OHIO

Flagship Communities Real Estate Investment Trust has expanded its presence in northern Ohio with a strategic acquisition of a manufactured housing community (MHC) for total consideration of approximately $1.5-million (U.S.). The acquisition is expected to be immediately accretive to the REIT's adjusted funds from operations (AFFO) on a per-unit basis.

The acquisition is located in Marblehead, Ohio, a resort area along Lake Erie, and comprises 28 lots that are 100 per cent occupied. The property includes a private beach area and a fishing pier along with a number of boat dock slips, and is in close proximity to another Flagship-owned MHC.

"This acquisition helps expand Flagship's presence in our northern Ohio market, thereby enabling us to generate economies of scale and operational synergies," said Kurt Keeney, president and chief executive officer. "The Marblehead property will be a great addition to our resort MHC communities."

"This acquisition fits our 'bolt-on strategy,' by purchasing properties near communities where we already operate in northern Ohio," said Nathan Smith, chief investment officer. "It allows us to continue to improve operational efficiencies by managing nearby properties together. The Marblehead property is located near Lake Erie in a desirable, high-demand area popular for second homes and resort-style living."

About Flagship Communities Real Estate Investment Trust

Flagship Communities is a leading operator of affordable residential MHCs primarily serving working families seeking affordable home ownership. The REIT owns and operates exceptional residential living experiences and investment opportunities in family-oriented communities in Kentucky, Indiana, Ohio, Tennessee, Arkansas, Missouri, West Virginia and Illinois.

We seek Safe Harbor.