Earnings
Morguard Real Estate Investment Trust Announces 2025 Annual Results
MRT · Price
Executive Summary
- Morguard Real Estate Investment Trust reported FY 2025 results, showing a net loss of $16.6 M (‑$0.25 per unit) versus a $58.8 M loss in 2024.
- Funds from operations declined 21% YoY to $46.5 M; adjusted funds from operations fell 67% YoY to $11.4 M.
- Net operating income decreased 13% YoY to $111.8 M, driven primarily by the loss of the Obsidian Energy lease and lower office rent revenues.
Key Details
- Revenue: FY 2025 revenue from real estate properties was $239.3 M, down 7.7% from $259.2 M in 2024.
- Net Operating Income (NOI): $111.8 M for FY 2025 vs. $128.5 M in 2024 (‑13%).
- Fair Value Losses: $61.6 M loss recorded in FY 2025 versus $114.4 M in 2024 (‑46.2%).
- Net Loss: $16.6 M for FY 2025 vs. $58.8 M loss in 2024; per‑unit net loss of $0.25 (basic & diluted).
- Funds from Operations (FFO): $46.5 M (‑21% YoY); basic FFO $13.1 M, diluted FFO $15.2 M.
- Adjusted Funds from Operations (AFFO): $11.4 M (‑67% YoY); basic AFFO $4.2 M, diluted AFFO $6.3 M.
Segment Performance
| Segment | FY 2025 NOI | FY 2024 NOI | % Change |
|---|---|---|---|
| Enclosed regional centres | $46.8 M | $44.9 M | +4.2% |
| Community strip centres | $21.5 M | $22.0 M | –2.4% |
| Single/Dual‑tenant office | $28.9 M | $31.5 M | –8.2% |
| Multi‑tenant office | $8.0 M | $8.6 M | –7.9% |
| Penn West Plaza (office) | $2.8 M | $18.4 M | –84.7% |
| Industrial | $3.7 M | $2.9 M | +28.9% |
Revenue Drivers
- Retail: Slight increase (+$1.4 M) due to a $3.8 M Ontario tax refund and $0.5 M rent uplift; partially offset by vacancy, bad‑debt, and lease cancellation impacts.
- Office: Decline of $18.9 M driven mainly by loss of Obsidian Energy lease ($15.6 M) and related vacancy costs.
- Industrial: Increase of $0.8 M from higher basic rent and lower vacancy costs.
Expenses & Other Items
- Property operating expenses rose 4.4% YoY to $75.9 M, reflecting higher bad‑debt expense (Comark, The Bay) and increased utilities/maintenance.
- Interest expense decreased 5.8% to $63.5 M due to lower rates on variable and renewed fixed‑rate debt.
Non‑GAAP Measures
- FFO calculated per REALPAC definition; adjusted for fair value changes and property sales.
- AFFO further adjusts FFO for straight‑line rent and productive capacity maintenance expenditures (PCME).
Notable Quotes
(No direct CEO/President quotes were included in the release.)
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Apr 29, 2026 · 16:15