Morguard Real Estate Investment Trust (MRT-UN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 4.7% YoY to $60.4M, while NOI fell 12.6% to $27.3M; the comparison was affected by a one-time 2025 property tax refund.

• Q3 net income increased to $14.0M from $4.7M as fair-value results shifted to a $3.1M gain from a $10.3M loss.

Financial highlights

• Nine-month revenue rose 1.5% to $179.1M, while NOI declined 3.2% to $80.0M; net income was $22.0M versus a net loss of $8.7M in 2025.

• Q3 FFO was $11.2M, down 25.4%, and AFFO was $2.3M, down 62.7%; nine-month FFO fell 5.4% to $31.6M and AFFO fell 23.2% to $5.5M.

• A one-time $3.2M Ontario property tax refund received in 2025, mostly related to vacant space and covering 2021–2024, affected the comparison; nine-month 2026 property tax expense rose 16.8% to $36.8M.

• Nine-month operating cash flow was $25.4M versus $22.3M; investing cash use was $24.7M and period-end cash was $8.9M.

Segment performance

• Q3 retail NOI declined 20.6% to $16.1M; enclosed regional centre NOI fell 28.5%, while community strip centre NOI grew 0.9%. Nine-month retail NOI fell 6.8% to $46.5M.

• Community strip centres delivered 2.5% same-store growth YTD, with near-full occupancy and rental growth on renewals; nine-month community strip NOI rose 2.5%.

• Office NOI rose 3.5% in Q3 and 2.7% for nine months to $30.8M; Penn West Plaza growth was partly offset by major-tenant downsizing at 111 Dunsmuir and Standard Life Centre.

• Nine-month industrial NOI declined 2.7% to $2.7M; $0.3M of higher vacancy costs was partly offset by $0.2M of higher basic rent.

• Nine-month same-asset NOI grew 0.6% to $78.7M; multi-tenant office rose 32.3%, while single-/dual-tenant office fell 8.5%.