MISSISSAUGA, ON — February 11, 2026 — Leads & Copy — Morguard Real Estate Investment Trust (TSX: MRT.UN) announced its 2025 fourth quarter and annual results today.
Revenue from real estate properties totaled $63,003,000 for the three months ended December 31, 2025, compared to $67,437,000 for the same period in 2024. For the year ended December 31, 2025, revenue was $239,339,000, down from $259,174,000 in 2024.
Net operating income (NOI) for the three months ended December 31, 2025, was $29,197,000, compared to $33,476,000 for the same period in 2024. Annual NOI for 2025 was $111,821,000, versus $128,461,000 in 2024.
The Trust reported fair value losses on real estate properties of $19,642,000 for the quarter and $61,556,000 for the year, compared to losses of $48,851,000 and $114,448,000 for the same periods in the previous year.
Net loss for the quarter was $7,862,000, compared to a net loss of $35,393,000 in 2024. The annual net loss was $16,561,000, compared to $58,823,000 in the prior year.
Funds from operations (FFO) for the quarter were $13,109,000, compared to $16,530,000 in 2024. Annual FFO totaled $46,520,000, down from $58,974,000 in the previous year. Adjusted funds from operations (AFFO) were $4,220,000 for the quarter and $11,444,000 for the year, compared to $10,478,000 and $34,670,000 in 2024, respectively.
Retail properties NOI increased to $68.4 million for the year ended December 31, 2025, from $67.0 million in 2024. This increase was primarily due to a $3.8 million tax refund received at one of the Trust’s Ontario properties, related to vacant space, and a $0.5 million increase in basic rent. These increases were partially offset by decreased income of $1.1 million from the sale of Heritage Towne Centre in the second quarter of 2024, higher vacancy costs of $0.8 million, higher bad debt expense of $0.6 million (including Comark Holdings Inc. and The Hudson’s Bay Company), and decreased percentage rents of $0.3 million.
Office properties NOI decreased to $39.7 million for the year ended December 31, 2025, from $58.6 million in 2024. This decrease was mainly due to lower revenue of $15.6 million stemming from the expiry of the Obsidian Energy lease on February 1, 2025, and the reset of above-market rents at Penn West Plaza, comprising $11.0 million in basic rent, $4.1 million in vacancy costs, and $0.5 million in recoveries from tenants. The remaining $3.3 million decrease in NOI for the office portfolio was mainly the result of increased vacancy costs of $2.6 million and $1.0 million in lease cancellation fees received in 2024.
Industrial properties NOI increased to $3.7 million for the year ended December 31, 2025, from $2.9 million in 2024. This increase was primarily due to increased basic rent of $0.4 million and decreased vacancy costs of $0.4 million.
Property operating expenses for the year ended December 31, 2025, increased 4.4% to $75.9 million from $72.7 million for the same period in 2024. This increase is primarily due to bad debt expense for Comark and The Bay, increased utilities expense in the office portfolio, and increased maintenance and other operating expenses in the enclosed mall portfolio.
The Trust is a closed-end real estate investment trust with a diversified portfolio of 45 retail, office, and industrial income-producing properties in Canada, with a book value of $2.2 billion and approximately 8.1 million square feet of leasable space.
The Trust’s Q4 2025 Consolidated Financial Statements and Management’s Discussion and Analysis are available on the Trust’s website and have been filed with SEDAR+.
Conference call details:
- Date: Thursday, February 12, 2026
- Time: 4:00 p.m. (ET)
- Conference Call #: 1-416-945-7677 or 1-888-699-1199
- Conference ID #: 48451
Source: Morguard Real Estate Investment Trust
