Mr. Kurt Keeney reports

FLAGSHIP COMMUNITIES REAL ESTATE INVESTMENT TRUST BOLSTERS PRESENCE IN KENTUCKY WITH ACQUISITION OF 125-LOT MANUFACTURED HOUSING COMMUNITY

Flagship Communities Real Estate Investment Trust has expanded its presence in its home state of Kentucky, with the acquisition of a 125-lot manufactured housing community (MHC) for total consideration of approximately $2.0-million (U.S.).

"This acquisition is another reflection of our ability to execute on our growth strategy that has been a cornerstone of our success for over 30 years," said Kurt Keeney, president and chief executive officer. "We expect the acquisition to generate economies of scale and operational synergies, and it is consistent with our strategy of acquiring established communities with occupancy upside and the opportunity to add value through new amenities."

The MHC community, which is 54 per cent occupied, is located in Frankfort, Ky., where affordable housing is in high demand. Planned improvements include a new clubhouse and office, a basketball court, and a playground. Frankfort serves as the capital and the base for the Commonwealth of Kentucky and is home to major employers including the largest number of public administration jobs in the Commonwealth.

"This acquisition is an exciting opportunity for us to expand in central Kentucky, a key market for us, where we have four nearby properties," said Nathan Smith, chief investment officer. "Purchasing properties near communities where we operate allows us to continue to improve efficiencies by managing nearby properties together. The acquisition is also strategically located near two major Interstates, I-64 and I-75, which provide access to major employers for our residents."

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.