Morguard North American Residential REIT (MRG-UN) Q4 2025 earnings summary

Executive summary

• Net income for 2025 was CAD 111.5 million, up 12.2% from 2024, mainly due to lower fair value loss on Class B LP units and higher net fair value gains.

• IFRS net operating income rose 4.6% to CAD 189.7 million, with proportionate NOI up 4.1% year-over-year, driven by growth in both Canada and the U.S. and favorable FX rates.

• FFO increased 4.7% to CAD 94.1 million, or CAD 1.79 per unit, with a conservative FFO payout ratio of 42.7%.

• Total assets at year-end 2025 were CAD 4.5 billion, down from CAD 4.6 billion, mainly due to FX changes, partially offset by property fair value gains.

Financial highlights

• Revenue from real estate properties for 2025 was CAD 354.6 million, up from CAD 344.2 million in 2024.

• NOI margin (IFRS) improved to 53.5% in 2025 from 52.7% in 2024.

• Refinanced CAD 245.6 million in mortgages at a 4.92% average rate, netting CAD 58.9 million before costs.

• Cash on hand at year-end was approximately CAD 115 million; total liquidity was CAD 226.5 million including available credit.

• Repurchased 1.4 million units at an average price of CAD 17.40 under NCIB, totaling CAD 24.3 million.

Outlook and guidance

• Management expects modest AMR growth and stable occupancy across the portfolio.

• Canadian market expected to improve as new supply is absorbed and immigration recovers.

• U.S. market outlook is optimistic, with opportunities emerging in overbuilt Sun Belt markets.

• $86.6 million in additional net mortgage financing proceeds expected to close in the first half of 2026.

• Agreements for CMHC-insured refinancing of three Canadian properties for up to $163.9 million, with closings anticipated in early 2026.