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 increases, exchange rate effects, and higher cash balances.

• 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 flat at CAD 1.65, with a payout ratio of 45%.

Financial highlights

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

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

• Debt-to-gross book value ratio rose to 39.7% from 38.7% year-over-year.

• Annual cash distribution increased by 2.7% to CAD 0.76 per unit.

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

Outlook and guidance

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

• Canadian turnover rent uplifts expected to remain strong, in the 20%-23% range for 2025.

• Management continues to evaluate enhanced buybacks and capital deployment options.