Morguard (MRC) Q1 2026 earnings summary

Executive summary

• Net income rose to $61.2 million for Q1 2026, up $6.4 million year-over-year, driven by higher non-cash net fair value gains despite lower NOI.

• Total revenue declined by 2.5% to $275.0 million, mainly due to increased vacancy in office and multi-suite residential segments.

• Morningstar DBRS upgraded issuer and debenture ratings to investment grade BBB (low), stable trend.

• Strong liquidity with $488.5 million in cash and credit, and $1.1 billion in unencumbered assets.

• Announced a $1.0 billion investment in a Canadian multi-suite residential portfolio, expected to close in H2 2026.

Financial highlights

• Revenue from real estate properties fell by $8.5 million (3.3%) to $254.5 million year-over-year.

• Normalized FFO decreased 7.8% to $46.1 million ($4.31/share) from $50.0 million ($4.66/share) year-over-year.

• Adjusted NOI dropped by $6.6 million (4.8%) to $130.5 million.

• Comparative NOI declined by $7.2 million (5.3%) to $130.5 million.

• Net income per share increased to $5.48 from $5.42 year-over-year.

Outlook and guidance

• $1.0 billion residential portfolio investment expected to close in H2 2026, with phased management transition underway.

• Second quarter dividend of $0.20 per share declared, payable June 30, 2026.

• CMHC-insured refinancing of four residential properties for up to $252.4 million expected to close in Q2 2026.