Flagship Communities Real Estate Investment Trust

Hello, ladies and gentlemen. Thank you for standing by. Welcome to the Flagship Communities REIT Fourth Quarter 2024 Earnings Call. At this time, all participants are in listen-only mode. Following the presentation, we will hold a brief question and answer session for analysts and institutional investors. I would like to remind everyone that this conference call is being recorded. Today's presentation are Curt Keeney, Flagship's President and Chief Executive Officer, Nathan Smith, Chief Investment Officer, and Eddie Carlisle, Chief Financial Officer. Please note that comments made on today's call may contain forward-looking information, and this information by its nature is subject to risk and certainties. Actual results may differ materially from the views expressed today. For further information on these risks and certainties, please consult the company's relevant filings on CDAR. These documents are also available on Flagship's website at FlagshipCommunities.com. Flagship has also prepared a corresponding PowerPoint presentation, which it encourages you to follow along with during this call. And now I'll pass the call over to Kurt Keeney. Kurt?

Thank you, operator. Good morning, everyone. Thank you for joining us today. 2024 was a record year for Flagship. This year, the REIT achieved many significant milestones. In April, we completed the largest acquisition in our history with the addition of seven MHCs to our portfolio. We've strengthened our existing footprint in Tennessee, by entering two locations in Nashville, one of the fastest growing markets in the U.S., and entered a new market, West Virginia, with five distinct locations. The integration of these assets is underway, and home expansion plans are in progress. We've also made significant progress preserving our conservative debt structure and strengthening our balance sheet. Earlier this year, we refinanced our near-term debt at a lower fixed interest rate, resetting our interest rates for another 10 years. The cash proceeds were used to pay off existing debt, leaving us with no substantial debt maturities until 2030. And in early 2025, we completed two financings at an average weighted interest rate of 5.91 to repay the $45 million outstanding on the bridge loan from the acquisition, which was 6.82% at the time of payoff. The ability to refinance our debt at better terms helps us solidify our balance sheet as we look to continue to grow and reach. We also made tremendous inroads in our lot expansion strategy in 2024. We added 112 lots to our portfolio earlier this year with the ability to add an additional 638 lots over the approximately 300 acres over the next few years. In addition to these incredible achievements, Flagship also generated strong financial results in 2024, which speaks to the consistency of our business and the solid fundamentals of the manufactured housing industry. We saw notable increases in rental revenue, NOI, FFO, and AFFO, all of which have grown steadily over the last three years. We also continue to see double-digit growth in certain same community metrics for both the fourth quarter and the full year of 2024. These include same community revenue, which grew 15.5% over Q4 of 2023, and 13.3% over the previous year. and same community NOI, which grew 17.7% over Q4 of 2023 and over 14.5% over the previous year. Same community NOI margin also grew 1.3% over Q4 of 2023 and 0.8% over the full year. Our strong 2024 results enabled us to announce a 5% increase to our monthly cash distribution for the fourth consecutive year, which we implemented earlier than our prior year. We have raised distributions every year since our IPO in 2020. I will now turn it over to Nathan to provide more detail on our operating regions and growth strategy. Nathan.

Thanks, Kurt. Good morning, everyone. As Kurt mentioned, we were pleased with our performance this past year. Every year, we look for ways to optimize our existing portfolio and to add external opportunities that adhere to our strict criteria. And in 2024, we succeeded in both areas. In our short time as a publicly traded REIT, we have demonstrated a track record of steady and consistent financial and operational performance, which has led to our overall growth. We have grown our existing portfolio in a few key areas. The first is through maintaining stable occupancy rates. Our total portfolio occupancy and the same community occupancy were similarly compared to our last year. Our ability to maintain steady occupancy coupled with our strong rent collections enable us to generate predictable results for our existing business. This predictability coupled with our 6% average monthly rent increase that we implemented across the portfolio earlier this year has set us up nicely for another strong 2025. The second is through auxiliary revenue and cost containment initiatives. Through our bulk purchasing, we provide certain amenities that allow our residents to save money while providing us with a means for additional revenue. We've also been successfully implementing some metering technology and water recapture programs across our MHCs that allows us to detect water leaks in real time. These measures have resulted in a 25 to 35% reduction in water consumption, which benefits our communities and the environments where we operate. The third is through our lot expansion strategy. Lot expansion enables us to add more housing opportunities within our certain existing communities for a modest capital investment. And the final area is our commitment to ensure our customers take pride in their homes and enjoy living in our communities. We continue to add desirable amenities such as pickleball courts, municipal grade playgrounds, shuffle ball courts, and basketball courts for our residents each year. They actively look forward to our holiday and seasonal programming initiatives as well. Acquisitions have also been a key part of our growth and success our ability to quickly make deals as they become available speaks to the experience of our team and our strong reputation in the marketplace we take a disciplined approach to our acquisitions while focusing on delivering measured growth for our unit holders our approach entails the following first we look for opportunities that will be accretive to our affo per unit secondly We seek opportunities that will enable us to streamline our operations and generate economies of scale. And finally, we target acquisitions within our existing markets and adjacent US states with related regulatory frameworks and characteristics. Our acquisitions in Tennessee and West Virginia this year are great examples of our growth strategy in action. We already have operations in Tennessee and West Virginia is adjacent U.S. state to our existing platform in the Midwest. I'll now turn it over to Eddie, our CFO, to talk about our financial performance for the quarter. Eddie? Thanks, Nathan.