Mr. K. Rai Sahi reports

MORGUARD CORPORATION ANNOUNCES 2023 SECOND QUARTER RESULTS AND REGULAR ELIGIBLE DIVIDEND

Morguard Corp. has released its financial results for the three and six months ended June 30, 2023.

Reporting highlights:

• Normalized funds from operations (FFO) (1) were $62.2-million, or $5.67 per common share, for the three months ended June 30, 2023. This represents an increase of $9.8-million, or 18.7 per cent, compared with $52.4-million, or $4.72 per common share, for the same period in 2022.
• Net income decreased by $152.2-million to $95.9-million for the three months ended June 30, 2023, compared with $248.1-million for the same period in 2022, primarily due to a decrease in non-cash fair value gain on real estate properties and on Morguard Residential REIT units, partly offset by a decrease in deferred tax expense and an increase in net operating income.
• Total revenue from real estate properties increased by $22.5-million, or 10.1 per cent, to $246.5-million for the three months ended June 30, 2023, compared with $224.0-million for the same period in 2022.
• Adjusted net operating income (NOI) (1) increased by $21.2-million, or 16.3 per cent, to $151.2-million for the three months ended June 30, 2023, compared with $130.0-million for the same period in 2022.

Operational and balance sheet highlights:

• During the second quarter, 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.
• As at June 30, 2023, the company's total assets were $11.8-billion, compared with $11.7-billion at Dec. 31, 2022.
• During the second quarter, the company financed new and existing mortgages for additional net proceeds of $64.7-million at an average interest rate of 4.69 per cent and an average term of 9.4 years.
• The company ended the second quarter in a strong liquidity position with $287-million of cash and available credit facilities, and a $1.3-billion pool of unencumbered properties, hotels and other investments.

(1) Refer to specified financial measures.

Specified financial measures

The company 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, for non-GAAP (generally accepted accounting principles) financial measures. 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 company's management's discussion and analysis (MD&A) for the three and six months ended June 30, 2023, and available on the company's profile on SEDAR.

The non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and are not necessarily comparable with similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The company's management uses these measures to aid in assessing the company's underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP financial measures described below, which supplement the IFRS measures, provide readers with a more comprehensive understanding of management's perspective on the company's operating results and performance.

A reconciliation of each non-GAAP financial measure referred to in this earnings release is provided above.

About Morguard Corp.

Morguard is a real estate company, with total assets owned and under management valued at $18.6-billion. As at Aug. 2, 2023, Morguard owns a diversified portfolio of 178 multisuite residential, retail, office, industrial and hotel properties, comprising 17,566 residential suites, approximately 17.1 million square feet of commercial leasable space and 2,907 hotel rooms. Morguard also currently owns a 65.0-per-cent interest in Morguard Real Estate Investment Trust and a 45.3-per-cent effective interest in Morguard North American Residential Real Estate Investment Trust. Morguard also provides advisory and management services to institutional and other investors.

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