Morguard (MRC) Q4 2025 earnings summary

Executive summary

• Ended 2025 with strong liquidity: $483.0 million in cash and credit, $1.1 billion in unencumbered assets.

• Completed $250.0 million debenture issuance and refinanced mortgages for $50.8 million at 4.77% average rate.

• Acquired remaining 40% of Lincluden Investment Management for $4.0 million and rebranded as Morguard Lincluden Global Investments.

• Announced sale of Ottawa office leasehold for $148.2 million, closing August 2026.

Financial highlights

• Total revenue for 2025 was $1.12 billion, down $3.5 million year-over-year, mainly due to lower hotel revenue after a major hotel portfolio sale.

• Net income fell to $178.9 million from $239.6 million in 2024, mainly due to a prior-year gain on hotel sales and lower NOI.

• NOI decreased by $5.3 million to $561.6 million, primarily from higher office and residential vacancy.

• Normalized FFO was $220.5 million ($20.61/share), nearly flat year-over-year.

• FFO increased to $221.6 million ($20.71/share) from $206.7 million ($19.12/share) in 2024.

Outlook and guidance

• Announced first quarterly eligible dividend for 2026 of $0.20 per share, payable March 31, 2026.

• Entered agreements for CMHC-insured refinancing of four residential properties for up to $252.4 million, closing in early 2026.