Morguard Announces Strategic Relationship with TD Asset Management on Multi-Suite Residential Real Estate Portfolio

Executive Summary

• Morguard and its residential REIT will invest $1.0 billion for a ~20% undivided interest in a $5.0 billion Canadian multi‑suite residential portfolio owned by TD Asset Management.
• The transaction transfers property and asset management responsibilities to Morguard, expanding its third‑party managed residential assets to approximately $24.0 billion and adding 33,300 suites across Canada and the U.S.
• Closing is expected in a single tranche in Q3 2026, financed through vendor financing, assumed mortgages, cash on hand and short‑term borrowings; the deal is projected to be immediately accretive to Morguard and its residential REIT.

Key Details

• Investment Amount: $1.0 billion for a ~20% undivided interest in a portfolio valued at ~$5.0 billion.
• Portfolio Size: 106 properties, >15,500 suites; geographic breakdown – 36% GTA/Hamilton, 19% Southwest Ontario, 13% Ottawa, 12% Alberta, 12% Quebec, 8% Nova Scotia.
• Management Transfer: Property and asset management responsibilities shift to Morguard, creating a significant institutional management mandate.
• Strategic Rationale: Enhances Morguard’s residential services, aligns with its owner‑operator model, and provides exposure for redeploying capital into value‑add and development projects.
• Accretion: Expected to be immediately accretive to both Morguard Corporation and Morguard Residential REIT.
• Closing Timeline: Single tranche closing in Q3 2026, subject to approvals and due diligence.
• Financing Structure: Combination of vendor financing, assumed mortgages, cash on hand, and short‑term borrowings for the balance.
• Operational Impact: Transition plan begins Q2 2026 focusing on continuity, employee integration, and resident experience; day‑to‑day operations to continue without disruption.
• Portfolio Expansion: Post‑transaction owned and managed assets rise to ~ $24.0 billion; residential platform grows to 162 properties and 33,300 suites across Canada and the United States.

Notable Quotes

“This transaction represents significant growth in Morguard's residential services… we are advancing our owner‑operator model, demonstrating our alignment with partners and strength in execution.” – Angela Sahi, President & CEO, Morguard

“The multi‑unit residential sector is a strategic allocation within our diversified open‑ended real estate fund… Morguard brings operational expertise and a long track record in this asset class.” – Andrew Croll, Managing Director, Head of Global Real Estate Investments, TD Asset Management