Mr. Rai Sahi reports

MORGUARD NORTH AMERICAN RESIDENTIAL REIT ANNOUNCES 2023 RESULTS

Morguard North American Residential REIT today released its financial results for the year ended Dec. 31, 2023.

Highlights

The REIT is reporting performance of:

• Net operating income (NOI) of $180.2-million for the year ended Dec. 31, 2023, an increase of $29.0-million, or 19.2 per cent, compared with 2022. The change in foreign exchange rate increased NOI by $8.2-million.
• Same property proportionate NOI in Canada increased by $7.1-million (or 13.0 per cent), and in the United States increased by $3.0-million (U.S.) (or 4.3 per cent), compared with 2022.
• Net income of $185.3-million for the year ended Dec. 31, 2023, a decrease of $54.3-million, or 22.7 per cent, compared with 2022, predominantly due to a lower net fair value gain, partially offset by a decrease in deferred income tax.
• Basic funds from operations (FFO) of $91.9-million for the year ended Dec. 31, 2023, an increase of $9.1-million, or 11.0 per cent, over the same period in 2022.
• Basic FFO of $1.65 per unit for the year ended Dec. 31, 2023, a 12.2-per-cent increase, as compared with the $1.47 per unit in 2022.

The REIT is reporting the following corporate and portfolio highlights:

• During the first quarter of 2023, the REIT acquired from Morguard Corp. the remaining 50-per-cent interest in Fenestra at Rockville Town Square, comprising 492 residential suites, for a purchase price of $96.9-million ($71.5-million (U.S.)), including closing costs, and assumed mortgages payable of $46.0-million ($34.0-million (U.S.)).
• During the first quarter of 2023, the REIT acquired Xavier, a multisuite residential property comprising 240 suites located in Chicago, Ill., for a purchase price of $113.8-million ($83.8-million (U.S.)), including closing costs.
• During the year ended Dec. 31, 2023, the REIT completed the refinancing of four United States properties and one Canadian property providing gross mortgage proceeds of $187.3-million at a weighted average interest rate of 4.86 per cent for a weighted average term of 9.6 years. The maturing mortgages associated with the refinanced properties had a balance at maturity of $106.4-million at a weighted average interest rate of 3.36 per cent, resulting in net proceeds of $80.9-million, before financing costs.
• During the first quarter of 2023, the REIT issued $56.0-million of 6.0 per cent convertible unsecured subordinated debentures, and fully repaid $85.5-million of 4.5 per cent convertible unsecured subordinated debentures.
• As at Dec. 31, 2023, average monthly rent (AMR) in Canada increased by 5.4 per cent compared with Dec. 31, 2022, while occupancy increased to 98.7 per cent at Dec. 31, 2023, compared with 98.6 per cent at Dec. 31, 2022.
• As at Dec. 31, 2023, AMR in the U.S., on a same property basis, increased by 4.2 per cent compared with Dec. 31, 2022, while occupancy was 94.2 per cent at Dec. 31, 2023, compared with 95.3 per cent at Dec. 31, 2022.
• As at Dec. 31, 2023, indebtedness to gross book value ratio increased to 38.7 per cent, compared with 38.0 per cent as at Dec. 31, 2022.

The REIT's audited consolidated financial statements for the year ended Dec. 31, 2023, along with the 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 Residential Real Estate Investment Trust will hold a conference call on Thursday, Feb. 15, 2024, at 3 p.m. ET to discuss the financial results for the years ended Dec. 31, 2023, and 2022. To participate in the conference call, please dial 416-764-8688 or 1-888-390-0546. Please quote conference ID 83079046.

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 comprised 13,089 residential suites and 239,500 square feet of commercial area (as of Feb. 13, 2024) 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 Dec. 31, 2023.