Morguard Corporation Announces 2025 Second Quarter Results and Regular Eligible Dividend
MISSISSAUGA, ON, Aug. 6, 2025 /CNW/ - Morguard Corporation ("Morguard" or the "Company") (TSX:MRC) is pleased to announce its financial results for the three and six months ended June 30, 2025.
Operational and Balance Sheet Highlights
The Company ended the second quarter in a strong liquidity position with $307.0 million, comprised of cash, available credit facilities and additional net mortgage financing received subsequent to June 30, 2025, and has a $1.1 billion pool of unencumbered properties and other investments.
As at June 30, 2025, the Company's total assets were $11.8 billion, consistent compared to $11.8 billion at December 31, 2024.
During the second quarter, the Company incurred $23.2 million of development expenditures, predominantly at the Company's residential project comprising 431 suites located in Mississauga, Ontario. The project is anticipated to commence occupancies in the second half of 2027.
Reporting Highlights
Total revenue from real estate properties increased by $1.7 million, or 0.7%, to $256.6 million for the three months ended June 30, 2025, compared to $254.9 million for the same period in 2024.
Normalized funds from operations(1) ("Normalized FFO") was $56.0 million, or $5.24 per common share, for the three months ended June 30, 2025. This represents an increase of $4.8 million, or 9.3%, compared to $51.2 million, or $4.74 per common share for the same period in 2024.
Comparative NOI(1) decreased by $2.1 million or 1.5% to $138.7 million for the three months ended June 30, 2025, compared to $140.8 million for the same period in 2024.
Adjusted NOI(1) decreased by $1.0 million, or 0.7%, to $141.3 million for the three months ended June 30, 2025, compared to $142.3 million for the same period in 2024.
Net income decreased by $0.5 million to $54.9 million for the three months ended June 30, 2025, compared to $55.4 million for the same period in 2024, primarily due to increase in provision for taxes, partially offset by a decrease in non-cash net fair value loss.
1) Refer to Specified Financial Measures
Financial Highlights
Three months ended
June 30
Six months ended
June 30
(in thousands of dollars)
2025
2024
2025
2024
Revenue from real estate properties
$256,589
$254,858
$519,638
$511,947
Revenue from hotel properties
9,142
8,826
14,516
19,263
Management and advisory fees
10,417
10,522
19,908
20,179
Interest and other income
4,271
4,325
8,556
8,808
Total revenue
$280,419
$278,531
$562,618
$560,197
Revenue from real estate properties
$256,589
$254,858
$519,638
$511,947
Revenue from hotel properties
9,142
8,826
14,516
19,263
Property operating expenses
(102,951)
(99,841)
(276,602)
(262,985)
Hotel operating expenses
(5,800)
(5,964)
(10,498)
(15,598)
Net operating income ("NOI")
$156,980
$157,879
$247,054
$252,627
Net income attributable to common shareholders
$54,001
$53,858
$112,136
$184,304
Net income per common share, basic and diluted
$5.05
$4.98
$10.47
$17.04
Funds from operations(1)
$56,519
$47,381
$103,761
$79,324
FFO per common share – basic and diluted(1)
$5.28
$4.38
$9.69
$7.33
Normalized funds from operations(1)
$56,039
$51,270
$106,003
$103,846
Normalized FFO per common share – basic and diluted(1)
$5.24
$4.74
$9.90
$9.60
(1) Refer to Specified Financial Measures.
Total revenue during the three months ended June 30, 2025, increased by $1.9 million to $280.4 million compared to $278.5 million in 2024, mainly due to an increase in revenue from real estate properties in the amount of $1.7 million, primarily due to higher average monthly rent ("AMR"), net of an increase in vacancy within the multi-suite residential segment and an increase in vacancy at Penn West Plaza, resulting from the expiry of Obsidian Energy's lease ("Obsidian Lease Expiry"). In addition, revenue increased from the change in foreign exchange rate and from the net impact of acquisition and disposition of properties.
Net income for the three months ended June 30, 2025 was $54.9 million, compared to $55.4 million in 2024. The decrease in net income of $0.5 million for the three months ended June 30, 2025, was primarily due to the following:
A decrease in NOI of $0.9 million, mainly due to a decrease in gross rent and an increase in vacancy costs at Penn West Plaza due to Obsidian Lease Expiry, and higher vacancy at multi-suite residential properties, partially offset by an increase in AMR at multi-suite residential properties, the change in foreign exchange rate and from the net impact of acquisition and disposition of properties;
A decrease in amortization of hotel properties and other of $1.5 million;
A decrease in non-cash net fair value loss of $7.2 million, mainly due to an increase in fair value gain on real estate properties and marketable securities, partially offset by an increase in fair value loss on Morguard Residential REIT units; and
An increase in income tax expense (current and deferred) of $7.1 million, mainly due to a higher fair value gain recorded on the Company's Canadian and U.S. properties.
Total revenue during the six months ended June 30, 2025, increased by $2.4 million to $562.6 million compared to $560.2 million in 2024, mainly due to an increase in revenue from real estate properties in the amount of $7.7 million, primarily due to higher AMR, net of an increase in vacancy within the multi-suite residential segment and an increase in vacancy at Penn West Plaza. In addition, revenue increased from the change in foreign exchange rate and decreased from the net impact of acquisition and disposition of properties, which includes a decrease in revenue from the sale of 14 hotels on January 18, 2024 (the "Hotel Portfolio Disposition") in the amount of $4.7 million.
Net income for the six months ended June 30, 2025 was $109.6 million, compared to $172.2 million in 2024. ...
