Morguard Real Estate Investment Trust (MRT-UN) Q2 2026 earnings summary

Executive summary

• Revenue from real estate properties for Q2 2026 was $58.6 million, up 0.6% year-over-year; six-month revenue was $118.7 million, flat compared to 2025.

• Net operating income (NOI) for Q2 2026 increased 5.5% to $27.1 million; six-month NOI rose 2.5% to $52.7 million, driven by lower bad debt and vacancy costs.

• Net income for Q2 2026 was $2.0 million, reversing a loss of $1.7 million in Q2 2025; six-month net income was $8.0 million, compared to a loss of $13.4 million in 2025, mainly due to lower fair value losses.

• Funds from operations (FFO) for Q2 2026 rose 17.3% to $10.9 million; adjusted funds from operations (AFFO) surged to $2.6 million from $0.2 million.

• Distributions per unit remained stable at $0.06 for the quarter and $0.12 for the six months.

Financial highlights

• NOI growth was driven by lower vacancy and bad debt expenses, with property operating expenses and taxes declining year-over-year.

• Fair value losses on real estate properties decreased significantly to $12.4 million for the six months, down from $31.6 million in 2025.

• Interest expense for the six months declined 2.0% to $31.4 million due to lower rates on variable and renewed fixed debt.

• Cash provided by operating activities for the six months was $6.5 million, up from a cash use of $0.5 million in 2025.

• Total assets as of June 30, 2026, were $2.18 billion; total equity was $870.6 million.

Outlook and guidance

• Retail results expected to remain stable for the remainder of 2026, with positive fundamentals and ongoing development projects, including multi-phase remerchandising at St. Laurent Centre and a major residential redevelopment at Burquitlam Plaza.

• Office occupancy is anticipated to rise as leasing activity continues and short-term vacancies are addressed.

• Normalized productive capacity maintenance expenditures (PCME) set at $8.75 million per quarter for 2026.