Morguard (MRC) Q4 2024 earnings summary

Executive summary

• Ended 2024 with $333.0M in cash/credit and $1.1B in unencumbered assets, reflecting strong liquidity.

• Sold 14 hotels in January 2024, significantly reducing non-consolidated indebtedness to gross book value ratio to 37.7% from 43.2%.

• Launched construction of a 431-suite rental community in Mississauga, Ontario.

• Acquired a 20% interest in Telus Garden office building in Vancouver for $99.4M.

Financial highlights

• Total revenue decreased to $1.13B in 2024 from $1.22B in 2023, mainly due to hotel property sales.

• Revenue from real estate properties rose 3.2% to $1.03B, while hotel property revenue fell 78.2% to $35.2M.

• Net income increased by $181.4M to $239.6M, driven by hotel sales gains and lower net fair value losses.

• Adjusted NOI decreased 4.6% to $566.9M, mainly due to the hotel portfolio disposition.

• Normalized FFO was $220.4M ($20.39/share), down 8.1% year-over-year.

Outlook and guidance

• Announced a $0.20 per share quarterly dividend payable March 31, 2025.

• Entered a commitment for $79.4M CMHC-insured refinancing of a Kitchener property, expected to close Q1 2025.