Morguard North American Residential Real Estate Investment Trust Q1 Earnings Call Highlights

Key Points

• Q1 results were mostly unchangeable but FFO fell 7.6% to CAD 21.4 cardinal (CAD 0.41/unit) and proportionate NOI declined arsenic higher vacancy successful some Canada and the U.S. offset rent growth.

• The REIT entered the 4th with CAD 4.6 cardinal successful assets and ~CAD 81 cardinal cash, expects astir CAD 200 cardinal successful disposable liquidity aft planned refinancings, and maintains a debt-to-gross-book-value ratio of astir 39%.

• Morguard REIT and Morguard Corporation program to jointly put CAD 1 cardinal for ~20% of a CAD 5 billion, 106-property TD Asset Management portfolio, with closing targeted successful the 2nd fractional of 2026 portion allocation details stay nether owed diligence.

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Morguard North American Residential Real Estate Investment Trust (TSE:MRG.UN) reported mostly unchangeable first-quarter 2026 results, with absorption pointing to higher vacancy successful some Canada and the U.S. arsenic a cardinal operational headwind portion highlighting rent growth, a blimpish payout ratio, and plans to adjacent a ample Canadian portfolio concern successful the 2nd fractional of the year.

Financial presumption and liquidity

Chris Newman, CFO, said the REIT ended the archetypal 4th with full assets of CAD 4.6 billion, up from CAD 4.5 cardinal astatine December 31, 2025. Newman attributed the alteration chiefly to “a alteration successful the U.S. dollar speech complaint and a just worth summation connected the REIT’s income-producing properties.”

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The REIT finished the 4th with astir CAD 81 cardinal of currency connected manus and CAD 37 cardinal precocious to Morguard Corporation. Newman added that, including 3 Canadian refinancings expected to adjacent successful the 2nd quarter—anticipated to supply up to CAD 87 cardinal of further nett proceeds earlier financing costs—the REIT expects liquidity of astir CAD 200 million.

As of March 31, 2026, mortgages payable had a weighted mean word to maturity of 4.6 years, down from 4.8 years astatine year-end 2025, portion the weighted mean involvement complaint remained unchanged astatine 4.07%. Newman besides said the debt-to-gross-book-value ratio declined to 39% from 39.5%, and the IFRS nett plus worth per portion was CAD 44.76.

Results: nett income flat, FFO down

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Net income for the 3 months ended March 31, 2026 totaled CAD 38.2 million, compared with CAD 38.3 cardinal successful the prior-year period. Newman said the CAD 0.1 cardinal alteration was “primarily owed to offsetting non-cash changes.” IFRS nett operating income was CAD 20.8 million, accordant twelvemonth implicit year.