Morguard North American Residential REIT (MRG-UN) Q3 2025 earnings summary

Executive summary

• Total assets at $4.6 billion as of September 30, 2025, unchanged from year-end 2024 due to offsetting fair value and FX changes.

• Net income for Q3 2025 was $12.5 million, a 166.2% increase year-over-year, mainly due to higher net fair value gains and lower deferred income tax expense.

• Annual cash distribution increased by 3.95% to $0.79 per unit, effective November 2025.

• Basic FFO per unit for Q3 2025 was $0.43, up 7.5% from $0.40 in Q3 2024.

• Active under NCIB, repurchasing 1.3 million units at $17.40 average price.

Financial highlights

• IFRS net operating income (NOI) for Q3 2025 was $54.1 million, up 4% year-over-year, with proportionate NOI rising 2.7% driven by U.S. growth and favorable FX, partially offset by a decline in Canada.

• Revenue from real estate properties for Q3 2025 was $87.7 million, up from $85.8 million in Q3 2024.

• NOI margin (IFRS) for Q3 2025 was 61.7%; proportionate NOI margin was 52.2%.

• FFO for Q3 2025 was $22.3 million (basic), up 2% year-over-year.

• FFO payout ratio at 44.6% for Q3 2025, supporting strong cash retention.

Outlook and guidance

• Management expects market conditions to remain strong and stable as housing demand outpaces supply.

• CapEx for 2026 expected to be similar to 2025, with a near 50/50 split between U.S. and Canada; garage projects to continue into 2027.

• The increased distribution is expected to be sustainable, supported by improved operating performance and refinancing activities.

• Focus remains on flexibility in capital allocation, with no immediate acquisition plans but ongoing evaluation of opportunities.