Morguard (MRC) Q1 2025 earnings summary

Executive summary

• Ended Q1 2025 with $278.0M in cash and available credit, and $1.1B in unencumbered properties and investments.

• Total assets reached $11.9B as of March 31, 2025, up from $11.8B at year-end 2024.

• Acquired remaining 40% of Lincluden Investment Management for $4.0M.

• DBRS confirmed BB (high) rating, trend changed to Positive.

Financial highlights

• Total revenue rose 0.2% to $282.2M for Q1 2025, driven by a $6.1M increase in real estate property revenue.

• Net income dropped to $54.8M from $116.8M year-over-year, mainly due to a prior-year gain on hotel sales.

• Adjusted NOI decreased 0.7% to $137.1M; comparative NOI stable at $136.6M.

• Normalized FFO was $50.0M ($4.66/share), down 5.0% from $52.6M ($4.86/share) year-over-year.

• Q1 dividend of $0.20/share declared, payable June 30, 2025.

Outlook and guidance

• Mississauga residential project (431 suites) incurred $19.3M in Q1 development costs; occupancy expected in H2 2027.

• The Bay's creditor protection affects four locations; $2.5M annual gross rent at risk, liquidation sales ongoing.