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

Executive Summary

• Morguard Corporation and Morguard North American Residential REIT will jointly invest $1.0 billion for a ~20% undivided interest in a $5.0 billion Canadian multi‑suite residential portfolio owned by TD Asset Management (TDAM).
• The transaction transfers property and asset management responsibilities to Morguard, expanding its third‑party managed residential platform to approximately $24.0 billion in assets and adding 33,300 suites across Canada and the United States.
• 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 both Morguard and Morguard 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 comprising >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 will shift from TDAM to Morguard upon closing.
• Strategic Impact: Increases Morguard’s owned & managed assets to ~ $24.0 billion; residential platform now includes 162 properties and 33,300 suites across Canada and the U.S.
• Financial Structure: Funding via a mix of vendor financing, assumed mortgages, cash on hand, and short‑term borrowings.
• Closing Timeline: Single‑tranche closing anticipated in Q3 2026, subject to approvals and due diligence.
• Accretion: Expected to be immediately accretive to both Morguard Corporation and Morguard Residential REIT.
• Operational Plan: Structured transition beginning Q2 2026 focusing on continuity, employee integration, and resident experience; day‑to‑day operations to continue without disruption.
• Performance Context: Morguard’s owned Canadian portfolio has delivered an average same‑property NOI growth of ~7.4% over the past four years.

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, TDAM