Morguard North American Residential REIT (MRG-UN) Q4 2024 earnings summary

Executive summary

• Total assets reached CAD 4.6 billion at year-end 2024, up from CAD 4.1 billion in 2023, driven by fair value gains, exchange rate effects, and increased cash holdings.

• Net income for 2024 was CAD 99.4 million, down 46.4% from 2023, mainly due to non-cash fair value losses and lower property revaluation gains.

• IFRS net operating income (NOI) rose 0.7% year-over-year to CAD 181.4 million, aided by a CAD 0.4 million positive FX impact.

• FFO per unit remained stable at CAD 1.65, with a payout ratio of 45%.

Financial highlights

• Revenue from real estate properties for 2024 was CAD 344.2 million, up from CAD 331.6 million in 2023.

• Refinanced five Canadian properties, securing CAD 319 million in mortgages at a 4.34% average rate and 9.7-year term.

• Mortgages payable weighted average term increased to 5.2 years, with the average interest rate rising to 3.88%.

• CapEx for 2024 totaled CAD 59.4 million, covering suite improvements and building projects.

• FFO payout ratio increased to 45.0% from 43.8% year-over-year.

Outlook and guidance

• U.S. AMR growth for 2025 expected in the 3%-5% range, returning to pre-pandemic norms.

• Canadian turnover rent uplift projected at 20%-23% for 2025.

• Management remains active in screening acquisition opportunities in both Canada and the U.S., with no strong geographic preference.