Morguard North American Residential REIT Announces 2024 Third Quarter Results and an Increase to Monthly Cash Distribution
MISSISSAUGA, ON, Oct. 29, 2024 /CNW/ - Morguard North American Residential REIT (the "REIT") (TSX:MRG) today announced its financial results for the three and nine months ended September 30, 2024.
Highlights
The REIT is reporting third quarter performance of:
Net operating income ("NOI") of $52.0 million for the three months ended September 30, 2024, a decrease of $0.4 million, or 0.7% compared to 2023.
Same Property Proportionate NOI in Canada increased by $0.8 million (or 5.3%), and in the U.S. decreased by US$0.8 million (or 4.0%), compared to 2023.
Net loss of $18.8 million for the three months ended September 30, 2024, a decrease of $58.0 million compared to 2023, predominantly due to a higher net fair value loss and an increase in deferred income tax.
Basic funds from operations ("FFO") of $0.40 per Unit for the three months ended September 30, 2024, as compared to $0.40 per Unit over the same period in 2023.
Basic FFO of $21.9 million for the three months ended September 30, 2024, a decrease of $0.1 million, or 0.4% over the same period in 2023.
FFO payout ratio for the three months ended September 30, 2024 of 45.9%, compared to 45.5% in 2023.
The REIT is reporting the following corporate and portfolio highlights:
The REIT has also announced it will increase its annual cash distribution by $0.02 per Unit (2.70%). The increase is expected to be effective for the November 2024 distribution, payable in December 2024. This will bring the distributions to $0.76 per Unit on an annualized basis from the current level of $0.74 per Unit.
As at September 30, 2024, average monthly rent ("AMR") in Canada increased by 6.0% compared to September 30, 2023, while occupancy remained strong and stable at 97.8% at September 30, 2024, compared to 98.9% at September 30, 2023.
As at September 30, 2024, AMR in the U.S., increased by 2.0% compared to September 30, 2023, while occupancy was 91.7% at September 30, 2024, compared to 93.7% at September 30, 2023.
As at September 30, 2024, indebtedness to gross book value ratio of 38.9%, compared to 38.7% as at December 31, 2023.
Financial and Operational Highlights
As at
September 30,
December 31,
September 30,
(In thousands of dollars, except as otherwise noted)
2024
2023
2023
Operational Information
Number of properties
43
43
43
Total suites
13,089
13,089
13,089
Occupancy percentage, Canada
97.8 %
98.7 %
98.9 %
Occupancy percentage, U.S.
91.7 %
94.2 %
93.7 %
Average monthly rent - Canada (in actual dollars)
$1,754
$1,674
$1,655
Average monthly rent - U.S. (in actual U.S. dollars)
US$1,911
US$1,875
US$1,874
Summary of Financial Information
Gross book value(1)
$4,375,281
$4,095,931
$4,168,456
Indebtedness(1)
$1,700,442
$1,583,311
$1,613,501
Indebtedness to gross book value ratio(1)
38.9 %
38.7 %
38.7 %
Weighted average mortgage interest rate
3.87 %
3.72 %
3.72 %
Weighted average term to maturity on mortgages payable (years)
5.1
4.9
5.1
(1)
Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS.
Three months ended
Nine months ended
September 30
September 30
(In thousands of dollars, except per Unit amounts)
2024
2023
2024
2023
Summary of Financial Information
Revenue from real estate properties
$85,788
$83,646
$256,300
$246,620
NOI
$52,031
$52,418
$127,267
$125,220
Proportionate NOI(1)
$44,353
$44,179
$135,657
$131,081
Same Property Proportionate NOI(1)
$44,353
$44,179
$132,301
$128,939
NOI margin, IFRS
60.7 %
62.7 %
49.7 %
50.8 %
NOI margin, Proportionate(1)
52.1 %
53.1 %
53.3 %
53.5 %
Net income (loss)
($18,829)
$39,151
$56,518
$160,915
FFO, basic(1)
$21,852
$21,936
$67,071
$67,601
FFO, diluted(1)
$22,692
$22,791
$69,591
$70,362
FFO per Unit, basic(1)
$0.40
$0.40
$1.23
$1.21
FFO per Unit, diluted(1)
$0.40
$0.39
$1.22
$1.19
Distributions per Unit
$0.18501
$0.1800
$0.55503
$0.5400
FFO payout ratio(1)
45.9 %
45.5 %
45.2 %
44.6 %
Weighted average number of Units outstanding (in thousands):
Basic
54,198
55,437
54,635
55,889
Diluted
56,517
57,756
56,954
58,903
(1)
Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS.
Specified Financial MeasuresThe REIT reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). However, this earnings release also uses specified financial measures that are not defined by IFRS, which follow the disclosure requirements established by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Specified financial measures are categorized as non-GAAP financial measures, non-GAAP ratios, and other financial measures. Additional details on specified financial measures including supplementary financial measures, capital management measures and total segment measures are set out in the REIT's Management's Discussion and Analysis for the three and nine months ended September 30, 2024 and available on the REIT's profile on SEDAR+ at www.sedarplus.ca.
The following Non-GAAP financial measures do not have any ...
