Mr. Rai Sahi reports

MORGUARD CORPORATION ANNOUNCES 2023 THIRD QUARTER RESULTS AND REGULAR ELIGIBLE DIVIDEND

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

Reporting highlights

• Normalized funds from operations (normalized FFO) was $64.4-million, or $5.95 per common share, for the three months ended Sept. 30, 2023. This represents an increase of $1.0-million, or 1.6 per cent, compared with $63.4-million, or $5.71 per common share, for the same period in 2022.
• Net income decreased by $65.2-million to a net loss of $9.4-million for the three months ended Sept. 30, 2023, compared with net income of $55.8-million for the same period in 2022, primarily due to an increase in non-cash fair value loss on real estate properties and an increase in interest expense, partly offset by an increase in fair value gain on Morguard Residential REIT units, a decrease in deferred tax, a recovery of impairment and an increase in net operating income.
• Total revenue from real estate properties increased by $15.8-million, or 6.7 per cent, to $250.6-million for the three months ended Sept. 30, 2023, compared with $234.8-million for the same period in 2022.
• Adjusted NOI increased by $6.2-million, or 4.3 per cent, to $151.7-million for the three months ended Sept. 30, 2023, compared with $145.5-million for the same period in 2022.

Operational and balance sheet highlights

• On Sept. 26, 2023, the company issued $175.0-million of 9.5-per-cent Series H senior unsecured debentures due on Sept. 26, 2026.
• On Sept. 28, 2023, the company fully repaid $175.0-million of 4.402-per-cent Series G senior unsecured debentures on maturity.
• During the third 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 Sept. 30, 2023, and Dec. 31, 2022, the company's total assets were $11.7-billion.
• During the third quarter, the company financed new and existing mortgages for gross proceeds of $122.4-million at an average interest rate of 6.34 per cent and an average term of 5.0 years. The weighted average interest rate of maturing mortgages was 4.00 per cent.
• The company ended the third quarter in a strong liquidity position with $350.5-million of cash and available credit facilities, and a $1.2-billion pool of unencumbered properties, hotels and other investments.

Adjusted net operating income (adjusted NOI)

The attached table provides a reconciliation of adjusted NOI to its closely related financial statement measurement for the periods as displayed in the table.

Funds from operations and normalized FFO

The attached tables provide a reconciliation of FFO and normalized FFO to its closely related financial statement measurement for the periods as displayed in the tables.

Fourth quarter dividend

The board of directors of Morguard announced that the fourth quarterly, eligible dividend of 2023 in the amount of 15 cents per common share will be paid on Dec. 29, 2023, to shareholders of record at the close of business on Dec. 15, 2023.

The company's unaudited condensed financial statements for the three and nine months ended Sept. 30, 2023, along with management's discussion and analysis, will be available on the company's website and will be filed with SEDAR+.

About Morguard Corp.

Morguard is a real estate company, with total assets owned and under management valued at $18.6-billion. As at Nov. 1, 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 65.3-per-cent interest in Morguard Real Estate Investment Trust and a 45.8-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.