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 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‑management responsibilities to Morguard, expanding its third‑party managed residential assets to ≈162 properties and 33,300 suites, increasing total owned/managed assets to ≈$24.0 billion.
• 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 its Residential REIT.

Key Details

• Investment Size: $1.0 billion for a 20% undivided interest in a portfolio of 106 properties valued at ~$5.0 billion.
• Portfolio Composition: >15,500 suites; geographic split – 36% GTA/Hamilton, 19% Southwest Ontario, 13% Ottawa, 12% Alberta, 12% Quebec, 8% Nova Scotia. Includes newly delivered and in‑progress rental developments.
• Management Transfer: Property and asset management responsibilities shift from TD Asset Management to Morguard effective Q2 2026, with a structured transition plan for operations, employee integration, and resident experience continuity.
• Financing Structure: Combination of vendor financing, assumed mortgages, cash on hand, and short‑term borrowings; exact proportions not disclosed.
• Accretion & Growth Impact: Expected to be immediately accretive to both Morguard Corporation and Morguard Residential REIT; expands Morguard’s third‑party managed residential portfolio and adds exposure in Montreal, Calgary, Edmonton, and Halifax.
• Overall Portfolio Scale Post‑Transaction: Owned and managed assets rise to approximately $24.0 billion; residential platform now 162 properties with 33,300 suites across Canada and the United States.
• Historical 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… supporting both stability and future growth.” – Andrew Croll, Managing Director, Head of Global Real Estate Investments, TD Asset Management