Flagship Communities Real Estate Investment Trust

Hello, ladies and gentlemen. Thank you for standing by. Welcome to the flagship community third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. Following the presentation, we will hold a brief question and answer session for analysts and institutional investors. To ask the question during the session, you will need to press star 11 on your telephone. I would like to remind everyone that this conference call is being recorded. Today's presenters 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 uncertainties. Actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, please consult the company's relevant filings on CEDAW. The 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, you may begin.

Good morning, everyone. Thank you for joining us today. Our strong performance that we have seen throughout 2025 continued into the third quarter. We continue to generate double digit increases in revenue and NOI, as well as same community revenue and same community NOI. We also saw growth in FFO and AFFO metrics this quarter relative to last year. In addition to our strong financial performance, we completed a strategic acquisition that expanded our footprint in Kentucky. We also recently announced the acquisitions of four communities that enable us to grow our presence in Indiana and Ohio. These acquisitions are expected to be immediately accretive to our AFFO. They also provide us with an opportunity to acquire underperforming MHCs with high vacancy and added value through occupancy growth and lot expansion. Lot expansion has been a key focus area and is expected to be a significant avenue for growth going forward. We have identified a number of communities in our portfolio that can accommodate lot expansion. This allows us to add more housing opportunities within certain existing communities for a modest capital investment. We added 112 lots to our portfolio in 2024. Customers have since started moving into these homes on these lots. and we are beginning to generate revenue from new residents. And we recently began a 36-lot expansion program in one of our Kentucky communities that was 95% occupied. We expect these to cost roughly $15,000 per lot to put them into service and residents to move in within the next 24 months. As many of you know, this is a special year for our business. Not only is this the 30th anniversary for Nathan and me in the MHC industry, It's our fifth anniversary as a publicly traded REIT. Since our IPO, we have delivered one of the strongest distribution growth records among Canadian REITs, all while reducing leverage and maintaining a disciplined AFFO payout ratio. We are the only pure play manufactured housing investment in the Canadian capital markets, and our REIT offers investors an opportunity to participate in a niche and stable market with significant growth And we believe that potential is being proven in the marketplace. Since going public, we have seen unit price appreciation and a strong total return profile outpacing many of our peers. For over 20 years, the MHC industry has grown approximately 4% per year, outperforming all other real estate sectors. Our solid financial performance speaks to the strength of the business model throughout all economic cycles. With that, I will now turn it over to Nathan for his remarks.

Nathan? Thanks, Kurt. As community owners and operators, our goal is to improve our existing communities, making them more attractive to both current and new residents. We take a hands-on approach by always striving to make our communities better through community safety initiatives and new amenities. Over the last year, we have added pickleball courts, municipal-grade playgrounds, clubhouses, and more to our communities. We also provide extensive holiday and seasonal events such as our back to school programs, that our residents look forward to and enjoy as a community. We also look to replace older homes with new homes via our home sales strategy, and we have been very successful in that regard. We have done a great job on our existing portfolio, but at the same time, we look to pursue external opportunities that adhere to our strict and disciplined criteria. We take a disciplined approach to acquisitions while focusing on delivering measured growth for our unit holders. Our approach includes the following. First, we look for opportunities that will be accretive to our AFFO per unit. Second, 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 U.S. states with related regulatory framework and characteristics. Our recent acquisitions are great examples of our growth strategy in action. In the third quarter, we acquired a 504-lot MHC that is located in both Lexington and Georgetown, Kentucky, and is nearly 72% occupied. Since 2022, significant improvements have been made to this MHC, including the removal of approximately 50 older homes and the installation of new amenities, including two municipal playgrounds, four new basketball courts, a new dog park, and a new community center. And recently, we made two strategic acquisitions, expanding our presence in Indiana and in Ohio. We acquired a new community in Seymour, Indiana, which includes 744 lots of which over 90% are occupied. The property also includes 85 lots for future expansion. We also waived due diligence on the acquisition of a portfolio in the greater Cincinnati area that includes three separate MHCs. There are nearly 500 lots across the three MHCs of which 65.5% are occupied. Each community features an onsite amenities and is in close proximity to major employers, interstate highways, and retail centers. And they are all within 30 minutes drive of our corporate headquarters in Northern Kentucky. These acquisitions also showcase our ability to leverage our 30 years plus experience of building industry relations to source off-market opportunities. In this case, we have a 25-year relationship with the family. I'll now turn over to Eddie, our CFO, to talk about our financial performance for the quarter. Eddie?

Thanks, Nathan. Good morning, everyone. Revenue for the third quarter was $26.1 million, up 12.3% over the same period last year, primarily due to acquisitions, as well as lot rate increases and occupancy increases across the portfolio. Same community revenue of $23.3 million for the third quarter grew by approximately 10% over the comparable period last year. This increase was driven by higher monthly lot rents as well as growth in same community occupancy and increased utility reimbursements and ancillary revenue agreements. NOI and NOI margin were $17 million and 65% respectively compared to $15.1 million and 65% during the second quarter of 2024. Same community, NOI margin for the third quarter was 64.7%, which increased by 0.2% compared to last year. While NOI saw an increase from ancillary services, NOI margins were affected due to these ancillary services having lower margins than what we have historically achieved. FFO adjusted and FFO adjusted per unit for the quarter were $9.2 million and 36.5 cents respectively, a 15.2% and 14.8% increase respectively compared to 2024. AFFO adjusted and AFO adjusted per unit for the quarter were $8.4 million and 33.3 cents respectively, a 19.3% and 18.9% increase respectively compared to 2024. Same community occupancy was 85.1%, an increase from 84.8% over the same period last year. Adjusted for the impact of our lot expansion program, total portfolio occupancy and same community occupancy would have been 85.7%. We expect to have these lots occupied and to add additional lots to meet demand in the normal course of business. We continually work with residents to make sure monthly rents are collected in a timely fashion. Our rent collections are always steady in the high 90% range, and this continued in the third quarter. Rent collections this quarter were 98.8% compared to 98.7% last year, continuing to demonstrate the strength and predictability of the MHC sector. As at September 30, our total lot occupancy was 84.3%. and our average monthly lot rent was $483. Both of these metrics were within our expectations. Our weighted average mortgage and note interest rate was 4.31%, and our weighted average mortgage and note term to maturity was 9.1 years. As Nathan mentioned during his remarks, the acquisitions we recently completed were funded on attractive terms, reaffirming our commitment to preserving a conservative debt profile. Our Kentucky acquisition was funded with cash on hand with approximately $17 million in assumed debt that had an average interest rate of 3.5%. The four MHCs we acquired earlier this month are being funded with a new $70 million unsecured term loan. We remained well positioned for future growth opportunities with additional leverageability on our balance sheet. We had total liquidity of approximately $14.8 million. The REIT currently has 20 unencumbered investment properties with a total fair value of $78.8 million a quarter end. With that, I'll now turn it back to Kurt for some final remarks.

Kurt?

Thanks, Eddie. As we reflect on this past year, our fifth as a publicly traded REIT, we take great pride in how far we've come and all that we've achieved. I've talked earlier about this being the 30th anniversary for Nathan and me in the MHC business. We got into this business in 1995. We started with one community and 152 lots, which we essentially built from scratch. Our goal at the time was to provide sustainable and affordable housing that benefited families and the environment. Fast forward to today, and that is still our goal. We are in the early stages of our lot expansion program and continue to look at opportunities within our portfolio to put new homes or to replace older homes and install amenities to create enhanced value. We expect these initiatives to increase resident satisfaction and unit holder value. We also expect it to maintain our high level of performance and growth going forward. Housing prices, high monthly rental rates for multifamily competitors, and high mortgage rates have continued to increase. And this dynamic has the potential to lead more people towards manufactured housing because our communities remain affordable. We remain committed to delivering steady, sustainable value for our unit holders through growth, integration, and operational excellence. We thank our unit holders for their ongoing support and look forward to continuing to add long-term value going forward. Thank you for your time today, and I will now open up the line for questions.

Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 11 on your telephone, then wait for your name to be announced. To withdraw your question, please first start one more again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mark Rothschild with Canaccord. Your line is open.

Thanks, and good morning, everyone. Good morning, Mark. Hey, it seems like fundamentals remain pretty strong across all of your markets, so if you could just expand on why you wouldn't be pushing rent at the same levels as 2025 and 2024 going forward, or at least in 2026. I would assume that you probably could push them even harder if you wanted.

We could. We could. Your observation is correct. We're not. And we frankly know what the increase is, and it's actually become public for next year, for 2026. They believe the average increase is 5.7%, and it's about $28 on average across the portfolio. And the reason is, again, right now, inflation and other pressures on the resident, you know, it's real. whether it's utilities or food or grocery prices, and we just don't want the residents. We're in a really good position because we haven't been overaggressive for the last five years. So our communities are typically still about $300 to $500 cheaper than the housing alternative, which is typically multifamily units. So as those people get pressure, we don't want to pile on And bear in mind, most of our leases are triple net leases, right? So there's other components that are in there that, you know, whether it be real estate or the utilities that they pay directly. So, again, a 5.7 is really a net 5.7. But that's the working theory is, you know, pigs get fat, hogs get slaughtered, right? And we just want to be a big fat pig. But, you know, there you go. Sorry, Nathan, I took your line.

Maybe just one more following up on that point as far as what your residents can handle. Cable revenue, do you expect that to continue to grow? Is that moderating at all? And was there anything in particular of late that's leading to that maybe just not growing at the same pace?

Eddie, you want to jump in here? This is your program.

Yeah, sure. So as far as regulating, the only thing is regulating is the fact that we've now come pretty close to rolling it out across most of the portfolio where we can. So we just rolled out about another, call it 1,800 to 2,000 lots beginning August 1st. Last year we did it in July 1st. So you do see a little bit of decline year over year in the growth velocity there, and it's because Two things. Last year we added more lots than we were able to do this year. Last year was about 2,600 lots. This year it's closer to 2,000. So just the year-over-year growth rate looks a little lower there. So the only thing that, again, would regulate it would be just do we have lots that we don't have it currently where we have the opportunity to expand it. The nice part is the seven acquisitions that we did in 2025, the five in West Virginia and two in Tennessee, None of those have bulk cable currently. And then the acquisition that we closed on in Indiana and the three that we waived diligence on in Cincinnati, none of those have it as well. So there'll still be some opportunity as we move into next year. So I do think it's going to continue to be a tailwind for the next four to eight quarters. And then as we do these acquisitions, You know, that's something we certainly look at is opportunity to be able to, you know, continue to drive growth within the community. And to the extent they don't already have those programs in place, it's something we look to do.

Okay, great. I'll turn it back. Thanks so much.

Thank you. Our next question comes from the line of Tom Callahan with BMO Capital Markets. Your line is open.

Hey, good morning, guys. Maybe just to follow up on our morning. maybe just follow up on Mark's line of question there, just in terms of the revenue side of things. But, you know, when you combine that with your views on same community expenses into 2026, how do you see kind of the same property NOI growth playing out next year?

Eddie, you want to jump in on that? I just want to make sure that we... Yeah, so, I mean, the guidance that we've

That is that we've kind of traditionally and thought the way we thought of it is when you're thinking we're going to get that four to five percent rate increase next year, a little more than 5.7. We're going to get that one to two percent occupancy increase as well. You know, we've always kind of said we think we can continue to achieve kind of high single digit, low double digit, same community NOI growth. And the revenue is going to follow pretty close. Actually, this quarter that the NOI growth and the same community revenue growth were both 10.2%. Again, I think that will moderate a bit over time as we do get the cable program more kind of rolled out across the portfolio. But there's no reason that we won't continue to be able to drive, in my mind, high single digits in that same community NOI growth.

Okay, that's great. And maybe, you know, one more for me, just switching gears on capital allocation. Obviously, the acquisition pace here has picked up over the last few months since Q2. Can you just talk about, I guess, A, you know, are there other opportunities like the ones you recently announced out there? And B, I think Eddie, you alluded to your comments there, but just how much, you know, incremental capacity do you see on the balance sheet post-closing of the $79 million space?

Well, I'll take the part out there of what's available. You know, we always see properties that come available. You know, things change in people's lives. Families need to exit. So we continually see that kind of action. You know, we're seeing a little less, you know, in the marketplace. We're seeing a little bit less private equity because they really can't get their returns. If they at the interest rates we're at right now, we still we do see some small players out there that are in the market. And the REITs can be probably more effective right now than they might have been in the past. So we see a pretty robust acquisitions pipeline and we look at lots of deals. But, you know, we're going to stay within our eight states that we're in right now and look to do bolt on acquisitions in those.

Yeah, and as far as balance sheet capacity, Tom, you know, look, right now we're still in pretty good shape from a balance sheet perspective. So even after these acquisitions and financing that we just did, we're going to still be right around that 40% debt to gross to value range. So we still have some capacity on the balance sheet. I think we can do another $50 to $75 million pretty easily, you know, leverage on the balance sheet. and stay where we're still comfortable from an overall leverage standpoint.

Awesome. That's great, guys. Thank you very much.

Thank you. Our next question comes from the line of Jonathan Kelcher with TD Cohen. Your line is open.

Thanks. First, just staying with the balance sheet, we've got the $70 million term loan. What are your plans for permanent financing on that loan? terms of timing, the dollar amount and the rates you think you'll get?

Yeah. So the, the permanent financing is in progress as we speak. My expectation is that that closes before the, the end of November. Um, it is, uh, it's going to be agency that it'll be, um, it's going to be a five-year deal. Um, and the, the, the amount's about the same. We're, we're, it's going to be about 70, 73, $74 million in proceeds. And rate is obviously still up in the air because it hasn't been locked yet, but I expect it to be in the 625 range would be my expectation.

Okay. And that's right around where the terminal is right now, where SOFR is, right? Yes, sir. Yes, sir. That's correct. Okay. And then secondly, you guys talked about lot expansion opportunities, and you did note the one

one property with 36 lots for potential like what what is the like how should we think about that for next year how many lots would you are you sort of targeting to expand yeah morning john uh at the end of the day you know we've we've consistently said you know 50 to 100 uh i don't see anything more than that and it's really just as the individual you know we we've got you know three or four hundred acres that we can expand on within the company that are, that are, that are within our current footprint of the community. So you just look at it. And as you get into the mid nineties, if you've got the ability and you're comfortable, you would expand like this particular community. You know, we were in the mid nineties and we could add 36 lots and then there's no land left here. But next year, I think 50 to a hundred is probably the right range. But again, it's a nice tailwind. You keep doing that for every three or four years. It's like buying an acquisition.

Yep. No, for sure. And 15K a lot is kind of the number to think about.

Yeah. On this particular one, it's about $15,000 a lot. Yeah.

But the sewer mains were all in. The grading was all done. Just got to put some driveways in and some secondary electric. Okay. Thanks. I'll turn it back.

Thank you. Our next question comes from the line of Brad Sturges with Raymond James. Your line is open.

Good morning, guys. Just on the acquisitions either closed or announced, the potential CapEx spend as you roll out the value-add programs across those new communities?

Eddie, you want to jump into the modeling here? Yeah, sure. So at the acquisition that we actually have already closed in Seymour, Indiana, that one's going to be a little more capital intensive. It's a very, very large community. It'll be our second largest community. And frankly, the previous owner didn't have a lot of amenities there. So we modeled about a million and a half dollars that'll be spent there over, call it the next 18 to 24 months. with playgrounds, basketball courts, clubhouses, a number of things like that, just to bring our amenity package to it and really enhance the value of that community there. On the three that we'll be closing next week, that's a lower number. It's somewhere in the $300,000 to $400,000 range. Really, that's just – there's a couple that need playgrounds. But other than that, those were pretty well – you know, in better shape.

That's great. And just thinking about maybe the CapEx budget for next year, you're probably working through that process now, but how would you think the overall CapEx budget would look compared to 2025 when thinking about next year?

Yeah, so actually, you know, that's something that we have been looking at, and we're going to see an increase in our maintenance capex budget next year, both on the communities themselves and the houses. So, you know, right now we use $75 a lot kind of as that reserve for maintenance capex. We'll see that increase next year, probably to around $90 a lot. And really, frankly, it's just kind of inflation, right? So the maintaining the roads, you know, that's the big things. We're maintaining roads, water sewer infrastructure, and those costs have increased and we've seen that. So That number will go up. And then, frankly, the work on rental houses, you know, that's kind of the bad side of rental houses when those things turn, the reinvestment in them. So we'll be looking to increase the spending on that, call it by, you know, 10% or so next year as well. So we will see a bit of an increase from the maintenance cap ex.

And just last question on the rental homes. In terms of the new acquisitions, would you be looking at using rental homes to drive occupancy initially, or do you think it's going to be more based on home sales right now for the occupancy growth?

Good question. So the large community that's got 744 lots plus the 85-lot expansion, it has about 50 rental homes right now, and it's And we don't think we're going to – it's got a big demand, we think, for home sales. So while we can do the rental homes there, we don't think that's the driving factor. And that's really powerful given the size of the community. The other three, the bulk of the vacancies in one location, we may use some rental homes there to get the occupancy at that location to the right spot and get the curb appeal right. But, again, we're not abandoning our temperament on rental homes, which is, you know, we're running about 10% of lots on rental homes. We'd like that number to be closer to 5 than 10. And that's still the strategy and where we're headed as a company overall.

Sounds good. I'll turn it back.

Thanks. Thank you. Our next question comes from the line of Cal Stanley with Desjardins. Your line is open.

Thanks. Morning, guys. Morning. You gave a great breakdown on kind of your outlook next year for revenue growth and where same property NOI could be. I'm just wondering with OPEX still pretty sticky and elevated, Is there some room for that number to come down in the year or two ahead that maybe gives us a bit more of a tailwind even on same property NOI growth?

I'm not sure is the answer to your question, if I'm just continuing to be straight with you. The inflation, I don't know if it's going to come down or not. Again, it's more expensive. The big moment there is if we can grow the occupancy, which I believe we can, without being heavy-handed on rental homes, which I think we can, the rental homes are the one that's the most dynamic. The streets and everything, the inflation is there. It's oil-driven and all that. The good news is that as a portfolio, our amenity package has really gotten better and better and better since we've been public when we buy these assets. We do an initial investment that's substantive and very high quality. And so that actually reduces that. So I think the delta lies in the rental homes and how many of those you have. So that's one of the reasons that we'd like to drive that number from 10 to 5. But, you know, as you go through these economic cycles, you know, we're in the Midwest. It's very stable. We're not seeing some of the other macro kind of economic moments that other people are seeing. But that rental home moment will kind of be the tail that wags the dog a little bit there.

Okay.

And the only thing I would add to that is, you know, the place that we've seen the most inflated OPEX this year has been in property taxes. And that's a big factor, right? So to the extent we have a similar year next year with property tax reassessments, that really can drive it quite a bit. Now, again, we're able to pass that through, but when you look at are you elevating or helping your NOI margins, it's actually hurting the margins because it's just strictly a passer.

Right. Okay. No, fair enough. So I think assuming kind of similar levels and maybe there's some upside, but for conservatism, similar levels make sense. Okay. Thank you.

Thank you. Our next question comes from the line of Jimmy Shan with RBC Capital Markets. Your line is open.

Thanks. So just on the acquisitions, the three, the Kentucky, Indiana, and Ohio, where are they going in cap rates and what does the cap rate look like once stabilized?

Yeah, so going in, if you look at the the blended cap rate between the four properties. It's about 6.2%, the going-in cap rate. In the community in Indiana, the opportunity there obviously will be kind of some infill and some growth opportunity. In the three that are in Cincinnati, there's a good opportunity for infill. Their occupancy is about 65.5%. And so the opportunity for some occupancy growth there is pretty strong. So stabilized, I think we'll probably be looking closer to 7.5% on those long-term. But that will take some time for the interior. We are very transparent that growth through occupancy, through home sales, is generally a little – more muted than if you just go throw a bunch of rental homes in but it's more quality occupancy better in a lot of margins so it'll take us a while to get there um but uh yeah you know it's nice because because of on those acquisitions you know we assume debt at uh 2.84 for the next seven years so there is a debt assumption uh component uh of those on those three properties that you know really kind of helps the the model and can give you some uh patience as you work on the infill

Does that 6.2 also include the one closing the quarter in Kentucky?

No. I'm sorry. The one in Kentucky was right around 5.5 cap rate there, but that one also had some assumed debt, about a little over half at 3.5%.

Got it. And then I was just curious, the bridge note that you're going to turn up shortly, do you not get to better LTV or terms if they're leased up?

Not really, because we aren't actually putting additional debt on the properties that we're acquiring, right? So this additional debt is just leverage on other properties that we already own within our total portfolio. The idea is yes, long-term. uh we'll have four these four unencumbered assets once we get those to where we think are three of them not uh the one in indiana is already stabilized right it's 90 occupied uh so that one will be ready to uh put that on kind of whenever whenever the need comes the other three yes we'll work on occupancy getting that so we can get more premium debt down the road okay and then last question um i think we've heard some general softness

in leasing in the apartment business, but maybe less so in the Midwest. I was just curious, since some of your tenants come from the apartment sector, are you seeing that come through at all within your portfolio?

What we're seeing is, again, we've been doing this a long time. So when you go through cycles of uncertainty, which is kind of where we're at macroeconomically, in our markets, our customers are kind of frozen in place. They're not really leaving. They're just kind of frozen in place. So I think that's kind of where we're at for the rest of the year. Our occupancy is going to be stable and grow a little bit. And then I think next year, as you kind of get some continued certainty from the government and just in general, I think I think you'll see a little bit more growth, a little bit more activity right now. But we're happy. I mean, last month, I mean, we sold 40 homes. I mean, it was, you know, it was, so we're still selling. But, yeah, I think right now, in general, there's some certain segments of the economy that are just kind of frozen in place. Okay.

Next question. Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 11 on your telephone. Please stand by for our next question. Our next question comes from the line of Matt Cornack with National Bank. Your line is open.

Good morning, guys. Maybe just going back to Jimmy's question, I think Mark asked something along the lines earlier in the call. Can you quantify kind of what you could have pushed versus what you pushed through over the last number of years in terms of rent increases and maybe how that translates into what you view as a mark to market in the portfolio if you were to be aggressive, understanding that you probably won't be.

Sure, sure. Well, you know, again, part of the working theory is that we like the concept of self-regulation. uh and again we we've we've been doing this a long time and when you get over your skis uh on rent increases which nathan and i have done in our past on an annual basis um you will you will create turnover so your occupancy is going to suffer if you do that and you're going to create a lot of turnover uh when you do it so we think like this year again 5.7 percent 28 dollars You know, that's going to handle us from an inflation perspective and keep us in a healthy place. But again, we're about $300 to $500 cheaper right now than the housing alternative. And that's because for the last five years, we've left a little bit on the table. So again, we've been, I think, between five and eight over the last five years, like as a range-ish range. But again, I think certainly if you go to 10%, you start to, on an annual basis, you really start to see turnover. And that's actually not what the underlying asset really wants or not what we want either. So I think that's kind of the ranges. So again, we give guidance of 4% to 5% every year, irregardless of economic cycles. And so some years, you know, we've been on average $20. This year it's $28. You know, I think the range on that is like $11 to $60 if you look across the portfolio depending on what markets you're in. So the average is $28. I think self-regulation is important. No, that's fair.

It seems to be working for you as you're generating really solid growth. So that's great. Just in terms of as you scale the portfolio, we talked a bit about NY margins, but just given the GNA load, is your expectation that GNA will kind of grow at inflation, but you'll, you'll get more revenue because you're expanding the portfolio or, or are you going to need to add some GNA as you expand the portfolio?

Hey, you want to jump in?

Yeah.

So, so, uh, you know, we, uh, As far as G&A, if you look at corporate office, the corporate office build out is we could grow pretty extensively within where we stand today from the corporate office standpoint. Where we would have to go is as we could expand further into some of the markets where we don't have as many properties. So as we may expand further into Arkansas or Missouri or Illinois, some of those places where right now we have one or two properties and we don't have district managers, I think there will be need at some point as we expand in those markets to bring on district managers. Um, so that will obviously have some impact on, on your NOI, uh, a bit. Um, but, but for the most part, I mean, we did lose one, you know, position in, uh, the, uh, the corporate office that we'll be replacing, um, recently. So, you know, we have that still, uh, and, and, you know, there may be, you know, one V or Tuesday headcount ad, but for the most part, I think we're, uh, We've kind of built out the G&A headcount to this point where we need to be.

Okay, perfect. That's helpful, and congrats on continued strong quarters. Thank you.

Thank you. Ladies and gentlemen, I am showing no further questions in the queue. I would now like to turn the call back over to Kurt for closing remarks.

Thank you, operator, and thank you, everyone, for participating. Please feel free to reach out to our investor relations team at ir at flagshipcommunities.com if you have any further questions. Have a great day and thanks again.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.