Morguard North American Residential Real Estate Investment Trust Reports Q2 Earnings Decline
Morguard North American Residential Real Estate Investment Trust (MRG.UN) reported a decline in second-quarter net income and funds from operations, driven by higher vacancy rates, operating costs, and interest expenses. Net income fell to C$26.1 million compared to C$30 million the previous year, while FFO dropped 11.1% to C$22 million or C$0.42 per unit. Occupancy in both Canada (91.4%) and the U.S. (92.8%) remained under pressure due to increased competition from new rental properties and lower immigration levels. The REIT has taken steps to improve liquidity, completing significant refinancing activities totaling C$162.8 million in Canadian CMHC-insured debt and US$29.2 million in the U.S., leaving it with approximately C$204 million in cash at quarter-end. Management is also advancing due diligence on a potential $1 billion residential portfolio acquisition expected to close by late 2026. Despite challenges, leasing activity has improved ahead of summer, and management remains optimistic about future occupancy trends.