MISSISSAUGA, ON — February 10, 2026 — Leads & Copy — Morguard North American Residential REIT (TSX: MRG.UN) announced its financial results for the year ended December 31, 2025.
The REIT reported net operating income (NOI) of $189.7 million for the year ended December 31, 2025, an increase of $8.3 million, or 4.6% compared to 2024. Proportionate NOI for the year ended December 31, 2025 increased by 4.1% compared to 2024, which included an increase in Canada of $0.4 million (or 0.6%), an increase in the U.S. of US$3.3 million (or 3.9%), and the change in foreign exchange rate increased Proportionate NOI by $3.7 million.
Net income of $111.5 million was reported for the year ended December 31, 2025, an increase of $12.1 million, or 12.2% compared to 2024, predominantly due to a higher net fair value gain. Basic funds from operations (FFO) was $1.79 per Unit for the year ended December 31, 2025, an 8.5% increase as compared to the $1.65 per Unit in 2024. Basic FFO of $94.1 million for the year ended December 31, 2025, an increase of $4.2 million, or 4.7% over the same period in 2024.
As at December 31, 2025, the REIT had liquidity of $226.5 million, comprised of approximately $114.5 million in cash and $112.0 million in available credit under its revolving credit facility with Morguard Corporation. In addition, the REIT has approximately $86.6 million of additional net mortgage financing proceeds expected to close in the first and second quarters of 2026.
During the year, the REIT refinanced maturing mortgages for gross proceeds of $245.6 million at a weighted average interest rate of 4.92% for a weighted average term of 5.3 years. The maturing mortgages had a balance of $186.7 million at a weighted average interest rate of 3.29%, resulting in net proceeds of $58.9 million, before financing costs.
During the year ended December 31, 2025, 1,398,709 Units were repurchased under the REIT’s normal course issuer bid program for cash consideration of $24.3 million at a weighted average price of $17.40 per Unit.
As at December 31, 2025, average monthly rent (AMR) in Canada increased by 4.5% compared to December 31, 2024, while occupancy decreased sequentially to 93.3% at December 31, 2025, compared to 94.3% at September 30, 2025. AMR in the U.S. increased by 1.2% compared to December 31, 2024, while occupancy decreased sequentially to 91.3% at December 31, 2025, compared to 92.5% at September 30, 2025.
As at December 31, 2025, indebtedness to gross book value ratio was 39.5%, compared to 39.7% as at December 31, 2024.
For the three months ended December 31, 2025, NOI from the REIT’s properties increased by $3.7 million (or 6.9%) to $57.9 million, compared to $54.2 million in 2024. The increase in NOI is due to a decrease in Canada of $0.2 million (or 1.0%), an increase in the U.S. of US$1.9 million (or 7.0%), and the change in foreign exchange rate which increased NOI by $2.0 million.
For the three months ended December 31, 2025, Proportionate NOI from the REIT’s properties increased by $2.0 million (or 4.5%) to $47.6 million, compared to $45.6 million in 2024. The increase in Proportionate NOI is due to an increase in the U.S. of US$1.7 million (or 8.2%), a decrease in Canada of $0.2 million (or 1.0%), and the change in foreign exchange rate which increased Proportionate NOI by $0.5 million.
In Canada, lower gross rental revenue (0.7%) resulted from higher vacancy, net of an increase in AMR. Operating expenses were consistent year over year as a decrease in utilities offset higher realty taxes. In the U.S., an increase in revenue of US$0.5 million (or 1.2%) from higher gross rental revenue (1.1%) resulted from an increase in AMR and ancillary revenue, net of higher vacancy, and a decrease in operating expenses of US$1.2 million (or 5.4%).
The decrease in operating expenses is primarily due to lower realty taxes of US$1.5 million (or 24.9%) mainly due to final 2024 Chicago tax bills received which concluded a triennial reassessment cycle.
The REIT entered into agreements for the CMHC-insured refinancing of three Canadian multi-suite residential properties, providing gross proceeds of up to $163.9 million for a weighted average term of 11.2 years. The maturing mortgages amount to $77.3 million and have a weighted average interest rate of 2.88%. The REIT expects to close the refinancings during the first and second quarters of 2026.
Morguard North American Residential Real Estate Investment Trust will hold a conference call on Thursday, February 12, 2026 at 3:00 p.m. (ET) to discuss the financial results for the years ended December 31, 2025 and 2024. To participate in the conference call, please dial 1-416-945-7677 or 1-888-699-1199. Please quote conference ID 98216.
The REIT’s portfolio is comprised of 13,089 residential suites and 239,500 square feet of commercial area (as of February 10, 2026) located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland with an appraised value of approximately $4.3 billion at December 31, 2025.
Source: Morguard North American Residential REIT
