Hello, ladies and gentlemen. Thank you for standing by. Welcome to the Flagship Communities REIT 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 a question during the session, you will need to press star one one on your telephone. I would like to remind everyone that this conference call is being recorded. Today's presenters are Kurt 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 risks 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 SEDAR.
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. 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 continued 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 acquisition 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. 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 is 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. 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.
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 on-site 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-year-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 it 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 $0.365, respectively, a 15.2% and 14.8% increase, respectively, compared to 2024. AFFO adjusted and AFFO adjusted per unit for the quarter were $8.4 million and $0.333, 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 at 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 one one on your telephone, then wait for your name to be announced. To withdraw your question, please press star one one 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. If you could just expand on why you would not be pushing rents to 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's correct. We're not. And we frankly know what the increase is, and it's actually become public for next year, for 2026. We've done, they believe the average increase is 5.7%, and it's about $28 on average across the portfolio. The reason is, again, right now, inflation and other pressures on the resident, it's real, whether it's utilities or food or grocery prices. We just don't want the residents—we're in a really good position because we haven't been over-aggressive for the last five years. Our communities are typically still about $300-$500 cheaper than the housing alternative, which is typically multifamily units. As those people get pressure, we don't want to—we don't want to pile on. Bear in mind, most of our leases are triple-net leases, right?
There are other components that are in there that, whether it be real estate or the utilities that they pay directly. Again, a 5.7 is really a net 5.7. That is the working theory: pigs get fat, hogs get slaughtered, right? We just want to be a big fat pig.
There you go.
Sorry, Nathan. I cut 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? Was there anything in particular of late that is leading to that maybe just not growing at the same pace?
Eddie, you want to jump in here? This is your program.
Yep. Sure. As far as regulating, the only thing that is regulating is the fact that we've now come pretty close to rolling it out across most of the portfolio where we can. We just rolled out about another, call it 1,800-2,000 lots beginning August 1st. Last year, we did it on July 1st. You do see a little bit of decline year over year in the growth velocity there, and it's because of 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. The year-over-year growth rate just looks a little lower there. The only thing that would, again, regulate it would be just do we have lots that we don't have it currently where we have the opportunity to expand.
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. 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. There will still be some opportunity as we move into next year. I do think we are still going to—it is going to continue to be a tailwind for the next, call it, four to eight quarters. As we do these acquisitions, that is something we certainly look at as opportunity to be able to continue to drive growth within the community. To the extent they do not already have those programs in place, it is 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 Callaghan with BMO Capital Markets. Your line is open.
Hey. Good morning, guys. Maybe just to follow up on—good morning. Maybe just follow up on Mark's line of question there just in terms of the revenue side of things. 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 kind of traditionally thought, the way we've thought of it is, when you're thinking we're going to get that 4-5% rent increase next year, a little more than 5.7%, we're going to get that 1-2% occupancy increase as well. We've always kind of said we think we can continue to achieve kind of that high single-digit, low double-digit, same-community NOI growth. And the revenue is going to follow pretty close. Actually, this quarter, 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. Maybe one more from 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, are there other opportunities like the ones you recently announced out there? B, I think Eddie, you alluded to your comments there, but just how much incremental capacity do you see on the balance sheet post-closing of the $79 million?
I'll take the part out there of what's available. We always see properties that come available. Things change in people's lives. Families need to exit. We can continually see that kind of action. We're seeing a little less in the marketplace. We're seeing a little bit less private equity because they really can't get their returns at the interest rates we're at right now. We do see some small players out there that are in the market. The REITs can be probably more effective right now than they might have been in the past. We see a pretty robust acquisitions pipeline. We look at lots of deals. 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. As far as balance sheet capacity, Tom, look, right now, we're still in pretty good shape from a balance sheet perspective. Even after these acquisitions and financings that we just did, we're going to still be right around that 40% debt to gross-to-value range. We still have some capacity on the balance sheet. I think we can do another $50 million-$75 million pretty easily leveraged 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 Cowen. Your line is open.
Thanks. First, just staying with the balance sheet, you've got the $70 million term loan. What are your plans for permanent financing on that in terms of timing, the dollar amount, and the rate you think you'll get?
Yeah. The permanent financing is in progress as we speak. My expectation is that that closes before the end of November. It's going to be agency debt. It'll be a five-year deal. The amount's about the same. It's going to be about $73 million-$74 million in proceeds. Rate is obviously still up in the air because it hasn't been locked yet, but I expect it to be in the 6.25% range would be my expectation.
Okay. That's right around where the terminal is right now where Sulfur 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 property with 36 lots for potential. What is the—how should we think about that for next year? How many lots are you sort of targeting to expand?
Yeah. Good morning, John. At the end of the day, we've consistently said 50-100. I don't see anything more than that. And it's really just as the individual—we've got 300-400 acres that we can expand on within the company that are within our current footprint of the community. So you just look at it, and as you get into the mid-90s, if you've got the ability and you're comfortable, you would expand. Like this particular community, we were in the mid-90s, and we could add 36 lots, and then there's no land left here. But next year, I think 50-100 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 $15,000 a lot is kind of the number to think about?
Yeah. On this particular one, it's about $15,000 a lot. Yeah. 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. 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. Frankly, the previous owner didn't have a lot of amenities there. We modeled about $1.5 million that'll be spent there over, call it, the next 18-24 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 will be closing next week, that's a lower number. It's somewhere in the $300,000-$400,000 range. Really, there's a couple that need playgrounds. Other than that, those were pretty well in better shape.
That's great. 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, that's something that we have been looking at. We're going to see an increase in our maintenance CapEx budget next year, both on the communities themselves and the houses. 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. Really, frankly, it's just kind of inflation, right? The maintaining the roads, that's the big things. We're maintaining roads, water sewer infrastructure. Those costs have increased, and we've seen that. That number will go up. Then, frankly, the work on rental houses, that's kind of the bad side of rental houses when those things turn, the reinvestment in them. We'll be looking to increase the spending on that, call it, by 10% or so next year as well.
We will see a bit of an increase from the maintenance CapEx.
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. The large community that has 744 lots plus the 85-lot expansion has about 50 rental homes right now. We do not think we are going to—it has a big demand, we think, for home sales. While we can do the rental homes there, we do not think that is the driving factor. That is 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. We are not abandoning our temperament on rental homes, which is we are running about 10% of lots on rental homes. We would like that number to be closer to 5% than 10%. That is still the strategy and where we are headed as a company overall.
Sounds good. I'll turn it back. Thanks.
Thank you. Our next question comes from the line of Kyle 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's 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 because when we buy these assets, we do an initial investment that's substantive and very high quality. That actually reduces that. I think the delta lies in the rental homes and how many of those you have.
That's one of the reasons that we'd like to drive that number from 10 to 5. As you go through these economic cycles, 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. That rental home moment will kind of be the tail that wags the dog a little bit there.
Okay. Fair enough.
The only thing I would add to that is the place that we've seen the most inflated OPEX this year has been in property taxes. That's a big factor, right? 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. When you look at are you elevating or helping your NOI margins, it's actually hurting the margins because it's strictly a pass-through.
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. Just on the acquisitions, the three, the Kentucky, Indiana, and Ohio, what are the going-in cap rates? What does the cap rate look like once stabilized?
Yeah. So going in.
Eddie, you want to jump into the model?
Yeah. So going in, if you look at 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 there. Occupancy is about 65.5%. The opportunity for some occupancy growth there is pretty strong. Stabilized, I think we'll probably be looking closer to 7.5% on those long-term. That will take some time for the infill. 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 NOI margins. It'll take us a while to get there.
Yeah, it's nice because on those acquisitions, we assume debt at 2.84% for the next seven years. There is a debt assumption component on those three properties that really kind of helps the model and can give you some 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%.
Yeah. Got it. I was just curious, the bridge note that you're going to term up shortly, do you not get sort of 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? This additional debt is just leverage on other properties that we already own within our total portfolio. The idea is, yes, long-term, we'll have these four unencumbered assets. Once we get those to where we think are three of them, the one in Indiana is already stabilized, right? It's 90% occupied. That one will be ready to put debt on kind of 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. Last question. 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?
Yeah. What we're seeing is, again, we've been doing this a long time. 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 not. They're just kind of frozen in place. I think that's kind of where we're at for the rest of the year is our occupancy is going to be stable and grow a little bit. I think next year, as you kind of get some continued certainty from the government and just in general, I think you'll see a little bit more growth, a little bit more activity right now. We're happy. I mean, last month, I mean, we sold 40 homes. I mean, it was, so we're still selling.
Yeah, I think right now, in general, there's some certain segments of the economy that are just kind of frozen in place.
Okay. That's good.
Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone. Please stand by for our next question. Our next question comes from the line of Matt Kornack 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. Again, part of the working theory is that we like the concept of self-regulation. Again, we've been doing this a long time. When you get over your skis on rent increases, which Nathan and I have done in our past on an annual basis, you will create turnover. Your occupancy is going to suffer if you do that. You're going to create a lot of turnover when you do it. We think like this year, again, 5.7%, $28, that's going to handle us from an inflation perspective and keep us in a healthy place. Again, we're about $300-$500 cheaper right now than the housing alternative. That's because for the last five years, we've left a little bit on the table.
Again, we've been, I think, between 5-8% over the last five years as a range-ish. Again, I think certainly if you go to 10%, you start to, on an annual basis, you really start to see turnover. That's actually not what the underlying asset really wants or it's not what we want either. I think that's kind of the ranges. Again, we give guidance of 4-5% every year, irregardless of economic cycle. Some years, we've been on average $20. This year, it's $28. I think the range on that's like $11-$60 if you look across the portfolio depending on what markets you're in. The average is $28. I think self-regulation is important.
Nope. That's fair. It seems to be working for you guys and you're generating really solid growth. That's great. Just in terms of as you scale the portfolio, we talked a bit about NOI margins, but just given the G&A load, is your expectation that G&A will kind of grow at inflation, but you'll get more revenue because you're expanding the portfolio, or are you going to need to add some G&A as you expand the portfolio?
Eddie, you want to jump in?
Yeah. As far as G&A, we look at corporate office. The corporate office build-out is we could grow pretty extensively within where we stand today from a corporate office standpoint. Where we would have to go is as we could expand further into some of the markets where we do not have as many properties. 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 do not have district managers, I think there will be need at some point as we expand in those markets to bring on district managers. That will obviously have some impact on your NOI a bit. For the most part, I mean, we did lose one position in the corporate office that we will be replacing recently. We have that still.
There may be a one V or two Z headcount add. For the most part, I think 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. Thank you, everyone, for participating. Please feel free to reach out to our investor relations team at ir@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.