Morguard Corporation Announces 2023 Results and Regular Eligible Dividend



MISSISSAUGA, ON, Feb. 22, 2024 /CNW/ – Morguard Corporation (“Morguard” or the “Company”) (TSX:MRC) is pleased to announce its financial results for the year ended December 31, 2023.

Reporting Highlights

Normalized funds from operations(1) (“Normalized FFO”) was $239.7 million, or $21.98 per common share, for the year ended December 31, 2023. This represents an increase of $20.9 million, or 9.5%, compared to
$218.8 million, or $19.75 per common share for the same period in 2022.
Net income decreased by $54.0 million to $58.2 million for the year ended December 31, 2023, compared to
$112.2 million for the same period in 2022.
Total revenue from real estate properties increased by $84.2 million, or 9.2%, to $1.0 billion for the year ended December 31, 2023, compared to $916.5 million for the same period in 2022.
Adjusted NOI(1) increased by $57.7 million, or 10.8%, to $594.4 million for the year ended December 31, 2023, compared to $536.7 million for the same period in 2022.

Operational and Balance Sheet Highlights

The Company acquired two multi-suite residential properties for a purchase price of $223.8 million, including closing costs.
The Company issued $175.0 million of 9.5% Series H senior unsecured debentures due on September 26, 2026.
The Company repaid $175.0 million of 4.402% Series G senior unsecured debentures on maturity.
The Company financed new and existing mortgages for additional net proceeds of $169.3 million at an average interest rate of 6.05% and an average term of 4.4 years.
The Company ended the year in a strong liquidity position with $318.0 million of cash and available credit facilities, and a $1.2 billion pool of unencumbered properties, hotels and other investments.
As at December 31, 2023, the Company’s total assets were $11.6 billion, compared to $11.7 billion at December 31, 2022.
Subsequent to December 31, 2023, the Company sold a portfolio of 14 hotels for gross proceeds of $410.0 million and repaid first mortgage debt totalling $48.7 million, resulting in net proceeds of $361.3 million before closing costs and customary adjustments.


Refer to Specified Financial Measures


Financial Highlights

For the years ended December 31

(in thousands of dollars)



Revenue from real estate properties



Revenue from hotel properties



Management and advisory fees



Interest and other income



Total revenue



Revenue from real estate properties



Revenue from hotel properties



Property operating expenses



Hotel operating expenses



Net operating income (“NOI”)



Net income attributable to common shareholders



Net income per common share – basic and diluted



Funds from operations(1)



FFO per common share – basic and diluted(1)



Normalized funds from operations(1)



Normalized FFO per common share – basic and diluted(1)



(1) Refer to Specified Financial Measures.

Total revenue during the year ended December 31, 2023, increased by $87.3 million to $1.2 billion compared to $1.1 billion in 2022, primarily due to an increase in revenue from real estate properties in the amount of $84.2 million due to higher average monthly rent (“AMR”) within the multi-suite residential segment and an increase of $21.4 million from a change in foreign exchange rates.

Net income for the year ended December 31, 2023 was $58.2 million, compared to $112.2 million in 2022. The decrease in net income of $54.0 million for the year ended December 31, 2023, was primarily due to the following:

An increase in non-cash net fair value loss of $94.4 million, mainly due to an increase in fair value loss on real estate properties, a decrease in fair value gain on the Morguard Residential REIT units, and an increase in fair value loss on other real estate funds investments;
An increase in net operating income of $58.8 million, primarily due to an increase in AMR at multi-suite residential properties. In addition, higher NOI from the hotel portfolio due to an increase in transient and corporate demand compared to 2022;
An increase in interest expense of $35.3 million, mainly due to higher interest on mortgages payable and bank indebtedness, partially offset by lower interest on the Debentures, primarily due to the repayment of the Series C senior unsecured debentures on September 15, 2022. The change in foreign exchange rate increased U.S. mortgage interest by $5.8 million;
An increase in property management and corporate expenses of $9.5 million; and
A recovery of impairment on hotel properties of $11.0 million.

Average Occupancy Levels

During the year, occupancy was strong and consistent across all commercial and residential asset classes, supporting the Company’s business objective of generating stable and increasing cash flow through its diversified portfolio of real estate assets.

The following table provides occupancy by asset class for the following periods:


Square Feet











Multi-suite residential

17,499 (1)

96.2 %

96.2 %

96.8 %

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