Morguard North American Residential REIT Announces 2025 Second Quarter Results

Executive Summary

• Morguard North American Residential REIT reported its financial results for the three and six months ended June 30, 2025, highlighting a 4.1% increase in Net Operating Income (NOI) and a 14.6% increase in Basic Funds From Operations (FFO) per Unit for the quarter.
• Net income decreased significantly by 40.6% year-over-year to $30.1 million, primarily driven by a lower net fair value gain on real estate properties.
• The REIT announced a subsequent event involving the refinancing of a multi-suite residential property in Chicago, Illinois, for $163.7 million at a higher interest rate of 5.35% compared to the maturing mortgage.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Net Operating Income (NOI): $56.9 million (up 4.1% from $54.6 million in 2024).
  • Proportionate NOI: Increased by 4.2% year-over-year, driven by increases in Canada ($0.4M) and the U.S. ($0.9M), plus $0.7M from foreign exchange.
  • Net Income: $30.1 million (down 40.6% from $50.6 million in 2024).
  • Basic FFO: $24.8 million (up 9.2% from $22.7 million in 2024).
  • Basic FFO per Unit: $0.47 (up 14.6% from $0.41 in 2024).
  • Diluted FFO per Unit: $0.47.
  • Distributions per Unit: $0.18999.
  • FFO Payout Ratio: 40.3%.
• Financial Performance (Six Months Ended June 30, 2025):
  • NOI: $77.7 million (up from $75.2 million in 2024).
  • Proportionate NOI: $95.4 million (up from $91.3 million in 2024).
  • Net Income: $68.4 million (down from $75.3 million in 2024).
  • Basic FFO: $48.0 million (up from $45.2 million in 2024).
  • Basic FFO per Unit: $0.91 (up from $0.82 in 2024).
• Operational Metrics (As of June 30, 2025):
  • Portfolio Size: 43 properties, 13,089 total suites.
  • Canada Occupancy: 95.2% (down from 98.0% in June 2024).
  • U.S. Occupancy: 94.8% (up from 93.3% in June 2024).
  • Canada Average Monthly Rent (AMR): $1,821 (up 5.3% from $1,730 in June 2024).
  • U.S. Average Monthly Rent (AMR): US$1,898 (up 0.1% from US$1,896 in June 2024).
• Balance Sheet & Leverage:
  • Gross Book Value: $4,536.6 million.
  • Indebtedness: $1,793.8 million.
  • Indebtedness to Gross Book Value Ratio: 39.5% (down from 39.7% at Dec 31, 2024).
  • Weighted Average Mortgage Interest Rate: 3.90%.
  • Weighted Average Term to Maturity: 5.1 years.
• Subsequent Event:
  • Binding agreement to refinance a multi-suite residential property in Chicago, Illinois.
  • New Mortgage Amount: $163.7 million (US$120.0 million).
  • New Interest Rate: 5.35%.
  • Term: 3 years.
  • Maturing Mortgage Amount: $153.6 million (US$112.6 million) with an interest rate of 3.49%.
  • Expected Closing: Third quarter of 2025.

Notable Quotes

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