Morguard Corporation Announces 2025 Second Quarter Results and Regular Eligible Dividend

Executive Summary

• Morguard Corporation reported its financial results for the three and six months ended June 30, 2025, highlighting a strong liquidity position with $307.0 million in cash and credit facilities, and total assets remaining consistent at $11.8 billion.
• For the second quarter, Normalized Funds From Operations (FFO) increased 9.3% to $56.0 million ($5.24 per share), while Net Income decreased slightly by $0.5 million to $54.9 million due to increased tax provisions.
• The company announced a regular eligible dividend of $0.20 per common share for the third quarter of 2025, payable on September 29, 2025.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Total Revenue: $280.4 million (up $1.9 million or 0.7% from $278.5 million in 2024).
  • Revenue from Real Estate Properties: $256.6 million (up $1.7 million or 0.7%).
  • Normalized FFO: $56.0 million ($5.24 per share), up from $51.2 million ($4.74 per share) in 2024.
  • FFO: $56.5 million ($5.28 per share), up from $47.4 million ($4.38 per share) in 2024.
  • Net Income: $54.9 million, down from $55.4 million in 2024.
  • Adjusted NOI: $141.3 million, down 0.7% from $142.3 million in 2024.
  • Comparative NOI: $138.7 million, down 1.5% from $140.8 million in 2024.
• Financial Performance (Six Months Ended June 30, 2025):
  • Total Revenue: $562.6 million (up $2.4 million or 0.4% from $560.2 million in 2024).
  • Net Income: $109.6 million, down significantly from $172.2 million in 2024.
  • Normalized FFO: $106.0 million ($9.90 per share), up from $103.8 million ($9.60 per share) in 2024.
  • FFO: $103.8 million ($9.69 per share), up from $79.3 million ($7.33 per share) in 2024.
• Operational Metrics & Occupancy:
  • Multi-suite Residential Occupancy: 94.9% (June 2025), down from 96.0% (March 2025) and 95.3% (June 2024).
  • Retail Occupancy: 90.0% (June 2025), down from 92.2% (March 2025) and 93.6% (June 2024).
  • Office Occupancy: 84.9% (June 2025), down from 86.9% (March 2025) and 88.3% (June 2024).
  • Penn West Plaza Occupancy: Dropped to 79.4% in June 2025 from 100.0% in June 2024 following the expiration of Obsidian Energy's lease on February 1, 2025.
• Development Activity:
  • Incurred $23.2 million in development expenditures during Q2 2025, primarily for a residential project in Mississauga, Ontario, comprising 431 suites.
  • Occupancies for the Mississauga project are anticipated to commence in the second half of 2027.
• Subsequent Events (Refinancing):
  • Completed CMHC-insured refinancing of a Toronto multi-suite residential property: Gross proceeds of $154.0 million at 4.05% interest for 10 years (maturing mortgages were $116.5 million at 2.99%).
  • Completed refinancing of a Chicago multi-suite residential property: Gross proceeds of $163.7 million (US$120.0 million) at 5.35% interest for 3 years (maturing mortgage was $153.6 million at 3.49%).
  • Completed refinancing of a Vancouver office property (20% ownership): Gross proceeds of $37.0 million at 4.68% interest for 5 years (maturing mortgage was $34.7 million at 3.40%).
• Dividend Declaration:
  • Third-quarter eligible dividend of $0.20 per common share.
  • Record date: September 15, 2025.
  • Payment date: September 29, 2025.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.