Morguard North American Residential REIT Announces 2025 Results

Executive Summary

• Morguard North American Residential REIT reported a strong 2025 year‑end performance, with NOI of $189.7 M (+4.6%) and net income of $111.5 M (+12.2%) versus 2024.
• Basic FFO increased to $1.79 per Unit (+8.5%), driven by higher fair‑value gains and improved rental income in the U.S. market.
• The REIT refinanced $245.6 M of mortgages at a weighted‑average rate of 4.92% for an average term of 5.3 years, and secured additional net mortgage financing proceeds of $86.6 M expected to close in Q1–Q2 2026.

Key Details

• Net Operating Income (NOI): $189.7 M for FY‑2025, up $8.3 M (4.6%) YoY.
• Proportionate NOI: $188.6 M, up 4.1% YoY; increase driven by U.S. NOI (+US$3.3 M) and FX effect (+US$3.7 M).
• Net Income: $111.5 M, up $12.1 M (12.2%) YoY, primarily from higher net fair‑value gains.
• Basic Funds From Operations (FFO): $1.79 per Unit, an 8.5% increase over $1.65 in 2024.
• Liquidity: $226.5 M total ($114.5 M cash + $112.0 M revolving credit). Additional $86.6 M mortgage financing expected Q1‑Q2 2026.
• Mortgage Refinancing: Gross proceeds $245.6 M at 4.92% average rate, weighted term 5.3 years; net proceeds $58.9 M after costs. Prior maturing mortgages: $186.7 M at 3.29%.
• Unit Repurchases: 1,398,709 Units bought for $24.3 M at $17.40 per Unit under normal course issuer bid program.
• Rental & Occupancy Trends:
• Canada AMR up 4.5% YoY to $1,851; occupancy down to 93.3% (Sept‑2025: 94.3%).
• U.S. AMR up 1.2% YoY to US$1,930; occupancy down to 91.3% (Sept‑2025: 92.5%).
• Indebtedness Ratio: 39.5% of gross book value (down from 39.7% in 2024).
• Portfolio Overview (as of Dec 31 2025): 43 properties, 13,089 suites; total assets/gross book value $4.54 B.
• Quarterly Highlights (Q4‑2025): NOI $57.9 M (+6.9% YoY); Proportionate NOI $47.6 M (+4.5%). Drivers: U.S. revenue growth, favorable FX, lower realty taxes in Chicago.
• Subsequent Event: Entered CMHC‑insured refinancing agreements for three Canadian multi‑suite properties – up to $163.9 M gross proceeds, weighted term 11.2 years, interest 2.88%; expected close Q1‑Q2 2026.
• Conference Call: Thursday, Feb 12 2026 at 3:00 p.m. ET (ID 98216).

Notable Quotes

(No direct quotes were provided in the release.)