Morguard North American Residential REIT Announces 2025 Second Quarter Results
MISSISSAUGA, ON, July 29, 2025 /CNW/ - Morguard North American Residential REIT (the "REIT") (TSX:MRG) today announced its financial results for the three and six months ended June 30, 2025.
Highlights
The REIT is reporting second quarter performance of:
Net operating income ("NOI") of $56.9 million for the three months ended June 30, 2025, an increase of $2.2 million, or 4.1% compared to 2024.
Proportionate NOI for the three months ended June 30, 2025 increased by 4.2% compared to 2024, comprised of an increase in Canada of $0.4 million (or 2.5%), an increase in the U.S. of US$0.9 million (or 4.0%), and the change in foreign exchange rate increased Proportionate NOI by $0.7 million.
Net income of $30.1 million for the three months ended June 30, 2025, a decrease of $20.5 million, or 40.6% compared to 2024, predominantly due to a lower net fair value gain.
Basic funds from operations ("FFO") of $0.47 per Unit for the three months ended June 30, 2025, a 14.6% increase as compared to $0.41 per Unit in 2024.
Basic FFO of $24.8 million for the three months ended June 30, 2025, an increase of $2.1 million, or 9.2% over the same period in 2024.
The REIT is reporting the following corporate and portfolio highlights:
As at June 30, 2025, average monthly rent ("AMR") in Canada increased by 5.3% compared to June 30, 2024, while occupancy decreased to 95.2% at June 30, 2025, compared to 98.0% at June 30, 2024.
As at June 30, 2025, AMR in the U.S., increased by 0.1% compared to June 30, 2024, while occupancy increased to 94.8% at June 30, 2025, compared to 93.3% at June 30, 2024.
As at June 30, 2025, indebtedness to gross book value ratio was 39.5%, compared to 39.7% as at December 31, 2024.
Financial and Operational Highlights
As at
June 30,
December 31,
June 30,
(In thousands of dollars, except as otherwise noted)
2025
2024
2024
Operational Information
Number of properties
43
43
43
Total suites
13,089
13,089
13,089
Occupancy percentage, Canada
95.2 %
97.2 %
98.0 %
Occupancy percentage, U.S.
94.8 %
93.8 %
93.3 %
Average monthly rent - Canada (in actual dollars)
$1,821
$1,772
$1,730
Average monthly rent - U.S. (in actual U.S. dollars)
US$1,898
US$1,907
US$1,896
Summary of Financial Information
Gross book value(1)
$4,536,576
$4,571,631
$4,377,500
Indebtedness(1)
$1,793,811
$1,816,598
$1,720,043
Indebtedness to gross book value ratio(1)
39.5 %
39.7 %
39.3 %
Weighted average mortgage interest rate
3.90 %
3.88 %
3.87 %
Weighted average term to maturity on mortgages payable (years)
5.1
5.2
5.4
(1)
Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS.
Three months ended
Six months ended
June 30
June 30
(In thousands of dollars, except per Unit amounts)
2025
2024
2025
2024
Summary of Financial Information
Revenue from real estate properties
$88,537
$85,756
$178,811
$170,512
NOI
$56,897
$54,649
$77,720
$75,236
Proportionate NOI(1)
$48,354
$46,401
$95,410
$91,304
NOI margin, IFRS
64.3 %
63.7 %
43.5 %
44.1 %
NOI margin, Proportionate(1)
54.9 %
54.4 %
53.6 %
53.8 %
Net income
$30,059
$50,571
$68,381
$75,347
FFO, basic(1)
$24,765
$22,685
$47,966
$45,219
FFO, diluted(1)
$25,605
$23,525
$49,646
$46,899
FFO per Unit, basic(1)
$0.47
$0.41
$0.91
$0.82
FFO per Unit, diluted(1)
$0.47
$0.41
$0.90
$0.82
Distributions per Unit
$0.18999
$0.18501
$0.37998
$0.37002
FFO payout ratio(1)
40.3 %
44.6 %
41.9 %
44.9 %
Weighted average number of Units outstanding (in thousands):
Basic
52,515
54,745
52,916
54,856
Diluted
