Morguard North American Residential REIT (MRG-UN) Q3 2026 earnings summary

Executive summary

• Q3 net income rose $18.6M YoY to $31.1M, primarily on a higher non-cash fair value gain, partly offset by higher deferred income taxes.

• Revenue was $88.9M vs. $87.7M YoY; IFRS NOI was $53.7M vs. $54.1M, while basic FFO fell 11.8% to $19.7M, or $0.38 per Unit.

• Total assets were $4.8B at quarter-end, vs. $4.5B at Dec. 31, 2025; liquidity was $272M.

Financial highlights

• Q3 proportionate NOI declined 1.7% YoY; Canada fell $0.4M (2.5%) and U.S. NOI declined US$0.6M (2.8%), with FX adding $0.2M.

• 9M revenue was $262.6M vs. $266.5M, and NOI was $128.8M vs. $135.8M; 9M net income rose to $95.4M from $80.9M.

• Interest expense rose $1.8M YoY, primarily due to higher mortgage principal and rates following refinancing.

• Q3 IFRS NOI margin was 60.4% vs. 61.7%; proportionate NOI margin was 50.6% vs. 52.2%.

Outlook and guidance

• Canadian occupancy was expected to remain near Q3 levels into the slower winter leasing season; leasing had started to slow, though leases were still being completed.

• U.S. occupancy was expected to remain stable; winter and holidays weigh more on Chicago and D.C., while Sun Belt leasing was expected to remain relatively strong.

• Canadian market conditions were expected to improve as new supply is absorbed and incentive-driven competition moderates.

• Joint portfolio acquisition expected to close in one tranche, subject to CMHC and lender approval.