Morguard (MRC) Q2 2025 earnings summary

Executive summary

• Ended Q2 2025 with strong liquidity of $307.0 million and $1.1 billion in unencumbered properties and investments.

• Total assets stood at $11.8 billion as of June 30, 2025, unchanged from December 31, 2024.

• Invested $23.2 million in development, mainly for a 431-suite residential project in Mississauga, set for occupancy in H2 2027.

Financial highlights

• Total revenue for Q2 2025 rose by $1.9 million to $280.4 million year-over-year, driven by higher real estate property revenue.

• Net income for Q2 2025 was $54.9 million, down $0.5 million from Q2 2024, mainly due to higher tax expense.

• Normalized FFO for Q2 2025 increased 9.3% to $56.0 million ($5.24/share) compared to Q2 2024.

• Adjusted NOI for Q2 2025 decreased by $1.0 million to $141.3 million year-over-year.

• Net income for the six months ended June 30, 2025, was $109.6 million, down $62.6 million from 2024, mainly due to a prior year gain on hotel sales.

Outlook and guidance

• The Mississauga residential project is expected to begin occupancy in the second half of 2027.

• Continued focus on stable and increasing cash flow through a diversified real estate portfolio.