MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES 2025 ANNUAL RESULTS

Executive Summary

• Marwest Apartment Real Estate Investment Trust reported its full-year financial results for the period ended December 31, 2025, highlighting a modest revenue increase and stable occupancy rates.
• The REIT reported a Net Asset Value (NAV) per unit of $2.46, an increase from $2.37 in the prior year, driven by market conditions and net operating income exceeding distributions.
• Management anticipates modest rental growth in 2026 for its Manitoba portfolio, contrasting with rental rate decreases in other major Canadian cities, while noting potential impacts from proposed amendments to the Residential Tenancies Act.

Key Details

• Financial Performance (Year Ended Dec 31, 2025):
  • Revenue from investment properties: $10,583,537 (up 2.29% from $10,346,107 in 2024).
  • Same Property Net Operating Income (NOI): $6,394,714 (down from $6,875,434 in 2024).
  • Funds From Operations (FFO): $1,891,165 ($0.0970 per unit), down from $2,386,386 ($0.1224 per unit) in 2024.
  • Adjusted Funds From Operations (AFFO): $1,671,784 ($0.0857 per unit), down from $1,992,865 ($0.1022 per unit) in 2024.
  • Net Income: $867,724 (down from $12,155,392 in 2024, largely due to lower fair value gains on investment properties).
• Portfolio Operations:
  • Portfolio consists of 4 properties with 516 suites.
  • Average Occupancy Rate: 97.64% for the year (99.30% for Q4 2025).
  • Average Rental Rate: $1,741 (up from $1,677 in 2024).
• Balance Sheet & Debt Metrics:
  • Total Interest-Bearing Debt: $100,358,349.
  • Total Assets: $150,588,107.
  • Debt-to-Gross Book Value Ratio: 66.64%.
  • Debt Service Coverage Ratio: 1.28.
  • Weighted Average Term to Maturity on Fixed Rate Debt: 51.60 months.
  • Weighted Average Interest Rate on Fixed Debt: 3.09%.
• Distributions:
  • Distributions to Unitholders increased by approximately 9.62% on record at June 30, 2025.
  • AFFO Payout Ratio: 19.22% for the year ended Dec 31, 2025.
• Outlook & Regulatory Environment:
  • Management anticipates Winnipeg vacancy to increase to 3.9% in 2026.
  • Anticipated 4.42% increase in 2-bedroom rental rates in 2026.
  • Manitoba Government proposed amendments to the Residential Tenancies Act may impact the Kenwood property in 2026 if passed; currently, no units are under legislated rent control, and units renting over $2,000/month would be exempt under proposed changes.
  • All properties except Kenwood remain exempt from provincial rent control due to age (under 20 years).

Notable Quotes

• "The REIT had a modest increase in revenue over the prior year of 2.29%. With the portfolio located in Manitoba, we anticipate modest rental growth in 2026, unlike other major cities in Canada which are experiencing decreases in rental rates to start off 2026." — Mr. William Martens, Chief Executive Officer and Trustee