Morguard Real Estate Investment Trust (MRT-UN) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 5.1% YoY to $255.1M and NOI rose 3.1% to $126.0M; reported net loss narrowed to $74.4M from $86.1M.

• Q4 revenue grew 10.4% YoY to $65.9M, while NOI was nearly flat at $33.4M; quarterly net loss was $27.8M versus $95.4M.

Financial highlights

• FY fair value losses were $131.8M, compared with $149.0M in 2022; Q4 losses were $42.9M versus $113.0M.

• FY interest expense increased to $62.8M from $53.5M; Q4 expense rose 21.8% YoY to $17.2M.

Segment performance

• FY enclosed regional centre NOI rose 10.6% to $43.6M; a $2.8M one-time prior-year property tax refund recorded in 2023 contributed to the increase.

• Community strip centre NOI increased 2.5% to $23.2M; single-/dual-tenant office NOI increased 3.8% to $49.1M.

• Multi-tenant office NOI declined 23.2% to $8.1M, primarily due to higher vacancy; industrial NOI fell 15.5% to $1.9M due to temporary vacancy at one single-tenant property.