Morguard (MRC) Q2 2026 earnings summary

Executive summary

• Issued $250 million in Series J debentures at 4.307% due 2029 and redeemed $175 million in Series H debentures at 9.5%.

• Net income for Q2 2026 rose 61.6% year-over-year to $88.6 million, driven by higher non-cash net fair value gains.

• Total revenue for Q2 2026 decreased 1.0% to $277.7 million, mainly due to higher vacancy in office and multi-suite residential segments.

• Continued due diligence on a $1 billion investment in a Canadian multi-suite residential portfolio, expected to close in H2 2026.

• Strong liquidity position with $681 million in cash and available credit, and $1.1 billion in unencumbered assets.

Financial highlights

• Q2 2026 revenue from real estate properties fell 1.4% year-over-year to $253.1 million.

• Net income attributable to common shareholders was $84.7 million, up from $54.0 million in Q2 2025.

• Normalized FFO for Q2 2026 was $53.5 million ($5.01/share), down 4.4% year-over-year.

• Adjusted NOI for Q2 2026 decreased 2.3% to $138.1 million.

• Shareholders’ equity per common share rose to $431.59 from $410.70 at year-end 2025.

Outlook and guidance

• The $1 billion residential portfolio transaction is expected to close in H2 2026, pending due diligence and approvals.

• A binding commitment to sell an Ottawa office property for $148.2 million is scheduled to close August 31, 2026.

• Entered agreement for CMHC-insured refinancing of a residential property for up to $88.5 million, closing in Q3 2026.