Morguard North American Residential REIT (MRG-UN) Q1 2026 earnings summary

Executive summary

• Total assets reached CAD 4.6 billion at March 31, 2026, up from CAD 4.5 billion at year-end 2025, driven by FX gains and property revaluations.

• Net income for Q1 2026 was CAD 38.2 million, nearly flat year-over-year, with a 0.4% decrease mainly due to non-cash charges.

• Net operating income (NOI) for Q1 2026 was CAD 20.8 million, unchanged from Q1 2025.

• Basic FFO per unit was CAD 0.41, down from CAD 0.44 in Q1 2025, a decrease of 7.6%.

• Portfolio consisted of 43 properties with 13,089 suites and 230,000 sq. ft. of commercial area as of March 31, 2026.

Financial highlights

• Revenue from real estate properties was CAD 86.5 million in Q1 2026, down from CAD 90.3 million in Q1 2025.

• Proportionate NOI decreased by 4.2% year-over-year, with declines in both Canada and the U.S., and a $1.4 million negative impact from FX.

• NOI margin (IFRS) improved to 24.1% from 23.1% year-over-year; Proportionate NOI margin remained at 52.4%.

• FFO payout ratio stood at 48%, up from 43.7% year-over-year, supporting strong cash retention.

• Liquidity stood at CAD 218.5 million, including CAD 81.5 million in cash and CAD 137 million in available credit.

Outlook and guidance

• Management expects modest AMR growth and stable occupancy in both Canada and the U.S. as new supply is absorbed.

• Canadian leasing activity is improving, with move-ins exceeding move-outs, suggesting a potential occupancy rebound.

• Closing of the major CAD 1 billion joint acquisition is targeted for the second half of 2026.

• $87 million in additional net mortgage financing expected to close in Q2 2026.

• Agreements for CMHC-insured refinancing of three Canadian properties for up to CAD 163.9 million, with closings expected in Q2 2026.