Mr. K. Rai Sahi reports

MORGUARD NORTH AMERICAN RESIDENTIAL REIT ANNOUNCES 2023 THIRD QUARTER RESULTS AND AN INCREASE TO MONTHLY CASH DISTRIBUTION

Morguard North American Residential REIT has released its financial results for the three and nine months ended Sept. 30, 2023.

Highlights

The real estate investment trust is reporting third quarter performance of:

• Net operating income of $52.4-million for the three months ended Sept. 30, 2023, an increase of $7.5-million, or 16.8 per cent, compared with 2022; the change in foreign exchange rate increased NOI by $2.1-million;
• Same-property proportionate NOI in Canada increased by $1.7-million (or 12.1 per cent), and in the United States increased by $100,000 (or 0.3 per cent), compared with 2022;
• Net income of $39.2-million for the three months ended Sept. 30, 2023, a decrease of $42.0-million, or 51.8 per cent, compared with 2022, predominantly due to net fair value loss partially offset by a decrease in deferred income tax;
• Basic funds from operations of $21.9-million for the three months ended Sept. 30, 2023, an increase of $800,000, or 3.8 per cent, over the same period in 2022;
• Basic FFO of 40 cents per unit for the three months ended Sept. 30, 2023, a 5.3-per-cent increase as compared with 38 cents per unit in 2022;
• FFO payout ratio for the three months ended Sept. 30, 2023, of 45.5 per cent compared with 46.6 per cent in 2022.

The REIT is reporting the following corporate and portfolio highlights:

• The REIT has also announced it will increase its annual cash distribution by two cents per unit (2.78 per cent). The increase is expected to be effective for the November, 2023, distribution, payable in December, 2023. This will bring the distributions to 74 cents per unit on an annualized basis from the current level of 72 cents per unit.
• As at Sept. 30, 2023, average monthly rent in the U.S., on a same-property basis, increased by 6.0 per cent compared with Sept. 30, 2022, while occupancy was 93.7 per cent at Sept. 30, 2023, compared with 95.9 per cent at Sept. 30, 2022.
• As at Sept. 30, 2023, AMR in Canada increased by 5.2 per cent compared with Sept. 30, 2022, while occupancy improved to 98.9 per cent at Sept. 30, 2023, compared with 98.3 per cent at Sept. 30, 2022.
• As at Sept. 30, 2023, indebtedness to gross book value ratio of 38.7 per cent, compared with 38.0 per cent as at Dec. 31, 2022.
• As at Sept. 30, 2023, the REIT's total assets were valued at $4.2-billion compared with $3.9-billion as at Dec. 31, 2022.

Distribution increase

The board of trustees has also announced it will increase the REIT's annual cash distribution by two cents per unit (2.78 per cent). The increase is expected to be effective for the November, 2023, distribution, payable in December, 2023. This will bring the distributions to 74 cents per unit on an annualized basis from the current level of 72 cents per unit.

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

Conference call details

Morguard North American will hold a conference call on Thursday, Oct. 26, 2023, at 3 p.m. ET, to discuss the financial results for the three and nine months ended Sept. 30, 2023, and 2022. To participate in the conference call, please dial 416-764-8688 or 1-888-390-0546. Please quote conference ID 93105273.

About Morguard North American Residential REIT

The REIT is an unincorporated, open-ended real estate investment trust established under and governed by the laws of the Province of Ontario. The units of the REIT trade on the Toronto Stock Exchange under the ticker symbol MRG.UN. With a strategic focus on the acquisition of high-quality multisuite residential properties in Canada and the United States, the REIT maximizes long-term unit value through active asset and property management. The REIT's portfolio is composed of 13,089 residential suites and 229,500 square feet of commercial area (as of Oct. 24, 2023) located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland with an appraised value of approximately $4.0-billion at Sept. 30, 2023.