Morguard (MRC) Q3 2024 earnings summary

Executive summary

• Ended Q3 2024 with $585M in cash/credit and $1.2B in unencumbered assets, reflecting strong liquidity.

• Announced annual dividend increase to $0.80/share, effective Q4 2024.

• Launched construction of a 431-suite rental community in Port Credit, completion expected in 2027.

Financial highlights

• Total Q3 2024 revenue was $276.9M, down $35.5M year-over-year, mainly due to hotel asset sales.

• Net income for Q3 2024 was $7.9M, up $17.4M from a net loss of $9.5M in Q3 2023, driven by fair value gains.

• Normalized FFO for Q3 2024 was $53.7M ($4.97/share), down 16.5% year-over-year.

• Adjusted NOI for Q3 2024 was $139.3M, down 8.2% year-over-year, mainly due to hotel portfolio disposition.

• Non-consolidated indebtedness to gross book value ratio improved to 37.6% from 43.2% at year-end 2023.

Outlook and guidance

• Dividend increase to $0.80/share annualized, with Q4 dividend of $0.20/share payable December 31, 2024.

• Expecting to close $109.3M in CMHC-insured refinancing for two residential properties in Q4 2024.