Morguard (MRC) Q2 2024 earnings summary

Executive summary

• Ended Q2 2024 with $632.5M in cash and available credit, and $1.1B in unencumbered assets.

• Sold a Calgary retail property for $37.1M and repaid $17M mortgage.

• Hotel Portfolio Disposition in January 2024 significantly impacted hotel segment results and leverage.

• Total assets at June 30, 2024 were $11.5B, slightly down from $11.6B at year-end 2023.

Financial highlights

• Q2 2024 total revenue was $278.5M, down $27.5M year-over-year, mainly due to hotel asset sales.

• Net income for Q2 2024 was $55.4M, down $40.4M from Q2 2023, mainly due to lower fair value gains.

• Normalized FFO for Q2 2024 was $51.3M ($4.74/share), down 17.5% year-over-year.

• Adjusted NOI for Q2 2024 was $142.4M, down 5.8% year-over-year, mainly from hotel asset sales.

• Q2 2024 FFO was $47.4M ($4.38/share), compared to $55.4M ($5.05/share) in Q2 2023.

Outlook and guidance

• Strong liquidity and reduced leverage position the company for future opportunities.

• Focus remains on stable cash flow generation from a diversified real estate portfolio.