Morguard North American Residential REIT (MRG-UN) Q4 2023 earnings summary

Executive summary

• 2023 NOI rose 19.2% to $180.2M and basic FFO increased 11.0% to $91.9M; net income fell 22.7% to $185.3M, mainly on a lower net fair-value gain.

• Portfolio expanded to 43 properties and 13,089 suites; year-end gross book value was $4.10B.

Financial highlights

• Revenue from real estate properties was $331.6M in 2023, versus $278.5M in 2022; NOI was $180.2M, up $29.0M YoY, including an $8.2M favorable FX impact.

• Net income was $185.3M, down $54.3M or 22.7% YoY, predominantly due to a lower net fair-value gain, partly offset by lower deferred income tax.

• Basic FFO increased to $91.9M from $82.8M; basic FFO per Unit rose to $1.65 from $1.47.

Segment performance

• Same Property Proportionate NOI increased in Canada by $7.1M, or 13.0%, and in the U.S. by US$3.0M, or 4.3%, versus 2022.

• Canada year-end occupancy was 98.7%, up from 98.6%; U.S. same-property occupancy was 94.2%, down from 95.3%.