Earnings
Morguard Corporation Announces 2025 Results and Regular Eligible Dividend
MRC · Price
Executive Summary
- Morguard reported FY 2025 financial results, showing modest revenue growth to $1.12 bn and a slight increase in Normalized FFO to $220.5 M ($20.61 per share).
- Net income fell to $178.9 M from $239.6 M YoY, driven by lower NOI, reduced hotel‑sale gains and higher fair‑value losses.
- The Board declared a first‑quarter 2026 eligible dividend of $0.20 per common share payable March 31, 2026.
Key Details
- Liquidity & Balance Sheet – Cash & credit facilities: $483.0 M; total assets $11.8 bn; unencumbered property pool $1.1 bn.
- Disposition – Sale of Ottawa office leasehold (328,500 sf) for $148.2 M ($451/sf), closing Aug 31 2026.
- Financing – Issued $250.0 M 5.00% senior unsecured debentures due Oct 14 2028.
- Development Expenditure – $97.2 M spent, mainly on a 431‑suite residential project in Mississauga.
- Mortgage Refinancing – Net proceeds $50.8 M; average rate 4.77%; term 5.7 years.
- Acquisition – Completed purchase of remaining 40% of Lincluden Investment Management Ltd for $4.0 M; rebranded to Morguard Lincluden Global Investments.
Financial Highlights (FY 2025 vs FY 2024)
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue – Real estate properties | $1,033.0 M | $1,032.8 M |
| Revenue – Hotel properties | $31.4 M | $35.2 M |
| Total revenue | $1,123.6 M | $1,127.1 M |
| NOI (Net Operating Income) | $561.6 M | $566.9 M |
| Net income | $178.9 M | $239.6 M |
| Normalized FFO | $220.5 M ($20.61/sh) | $220.4 M ($20.39/sh) |
| Funds from Operations (FFO) | $221.6 M | $206.7 M |
- Occupancy (Dec 2025) – Multi‑suite residential 94.2%; Retail 89.7%; Office 82.6% (down from 89.4% YoY, impacted by Obsidian Energy lease expiry).
Adjusted NOI & Normalized FFO
- Adjusted NOI FY 2025: $561.6 M (NOI $561.6 M + IFRIC‑21 adjustments).
- Normalized FFO FY 2025: $220.5 M ($20.61 per share).
Dividend
- First‑quarter 2026 eligible dividend: $0.20 per common share; payable March 31 2026 to shareholders of record March 16 2026.
Subsequent Event – CMHC Refinancing
- Entered into CMHC‑insured refinancing for four Canadian multi‑suite residential properties, up to $252.4 M gross proceeds, weighted average term 10.8 years; existing mortgages $118.7 M at 2.92% interest; expected close Q1–Q2 2026.
Notable Quotes
- “Our strong liquidity position and disciplined capital allocation continue to support sustainable growth across our diversified portfolio,” – Angela Sahi, Chief Executive Officer.
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