Morguard North American Residential REIT (MRG-UN) Q2 2026 earnings summary

Executive summary

• Total assets increased to CAD 4.8 billion at June 30, 2026, up from CAD 4.5 billion at year-end 2025, driven by FX gains, property revaluations, and new financings.

• Net income for Q2 2026 was CAD 26.1 million, down 13.0% from Q2 2025, mainly due to lower NOI and offsetting non-cash charges.

• IFRS net operating income for Q2 2026 was CAD 54.2 million, a 4.7% decrease year-over-year; proportionate NOI also declined 4.9%.

• FFO for Q2 2026 was CAD 22 million, down 11.1% year-over-year; FFO per unit was CAD 0.42, down from CAD 0.47.

• Liquidity as of June 30, 2026, stood at CAD 304 million, including CAD 204 million in cash and CAD 100 million in available credit.

Financial highlights

• Revenue from real estate properties for Q2 2026 was CAD 87.2 million, down from CAD 88.5 million in Q2 2025.

• Proportionate NOI in Canada decreased by 6.6% due to higher vacancy and lower ancillary revenue, partially offset by higher AMR.

• U.S. NOI decreased by 3.9%, mainly from higher vacancy and increased operating expenses, partly offset by higher AMR and ancillary revenue.

• FFO payout ratio for Q2 2026 was 46.8%, supporting strong cash retention.

• Distributions per Unit increased to CAD 0.19749 in Q2 2026 from CAD 0.18999 in Q2 2025.

Outlook and guidance

• Management expects moderate occupancy and AMR growth through the busier summer leasing season.

• Canadian occupancy is expected to stabilize, with Q2 likely being the low point for the year.

• U.S. operating expenses are expected to normalize after a high Q2 due to seasonal turnover and staffing.

• The CAD 1.0 billion joint investment in a Canadian multi-suite residential portfolio is expected to close in one tranche in H2 2026, subject to due diligence and approvals.