Morguard NA REIT UN (TSE:MRG.UN)
TSX:MRG.UN
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Morguard NA REIT UN
(TSX:MRG.UN)
Select Model
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Rating:70Outperform
Price Target:
C$18.00
▲(8.83% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid financial performance tempered by weaker cash flow follow-through versus reported earnings. Technicals add support due to a clear uptrend and positive momentum indicators, while valuation contributes positively given the low P/E and healthy dividend yield.
Positive Factors
Stable recurring rental revenue
The REIT's core business is recurring rental income from multi-suite residential properties, producing predictable, tenancy-driven cash inflows. That structural revenue base supports long-term cash planning, lease-roll management and steady operational cash generation for maintenance and financing needs.
Negative Factors
Weak cash conversion
Operating cash flow covering only ~33% of reported net income and a ~9% decline in free cash flow in 2025 point to a material gap between accounting profits and cash generation. That weak conversion raises reliance on timing, non-cash items or external financing and pressures durable cash available for reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable recurring rental revenue
The REIT's core business is recurring rental income from multi-suite residential properties, producing predictable, tenancy-driven cash inflows. That structural revenue base supports long-term cash planning, lease-roll management and steady operational cash generation for maintenance and financing needs.
Read all positive factors
Morguard NA REIT UN (MRG.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$862.73M
Dividend Yield4.41%
Average Volume (3M)19.78K
Price to Earnings (P/E)8.8
Beta (1Y)0.78
Revenue Growth3.83%
EPS Growth63.32%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.56
Shares Outstanding34,937,283
10 Day Avg. Volume17,597
30 Day Avg. Volume19,776
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.45
Price to Sales (P/S)2.55
P/FCF Ratio10.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.00Price Target Upside26.96% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.47
Revenue Forecast (FY)C$361.84M
Morguard NA REIT UN Business Overview & Revenue Model
Company Description
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 strategi...
How the Company Makes Money
The REIT primarily makes money by generating rental income from its residential properties. Tenants pay monthly rent, which forms the core recurring revenue stream and is supported by ancillary rental-related income where applicable (null). The RE...
Morguard NA REIT UN Earnings Call Summary
Earnings Call Date:Oct 29, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong asset growth and rent increases in Canada offset by significant net loss and decreased occupancy in the U.S. Interest expense rise and operational challenges contributed to a cautious outlook.Positive Updates
Increase in Total Assets
Total assets increased to $4.4 billion in Q3 2024, up from $4.1 billion at the end of 2023, due to a fair value increase on real estate properties and foreign exchange rate fluctuations.
Negative Updates
Significant Net Loss
Net loss of $18.8 million for Q3 2024 compared to net income of $39.2 million in 2023, primarily due to noncash items such as a $99.7 million increase in fair value loss on Class B LP units.
Read all updates
Q3-2024 Updates
Positive
Negative
Increase in Total Assets
Total assets increased to $4.4 billion in Q3 2024, up from $4.1 billion at the end of 2023, due to a fair value increase on real estate properties and foreign exchange rate fluctuations.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for MRG.UN.TO, several key financial metrics and guidance were provided. The REIT's total assets increased to $4.4 billion, up from $4.1 billion at the end of 2023, due to factors including a fair value increase in real estate properties. They reported $103.3 million in cash and a $1.7 billion long-term debt. Mortgage payables have a weighted average term of 5.1 years and an interest rate of 3.87%. The debt-to-gross book value ratio slightly increased to 38.9%. The REIT repurchased about 1.1 million units under the NCIB at an average price of $16.94, with an IFRS net asset value per unit at $41.30. The annual cash distribution was increased by 2.7% to $0.76 per unit. Despite a net loss of $18.8 million, mostly due to non-cash items, the REIT saw a net operating income of $52 million, a slight decrease from the previous year. In Canada, the average monthly rent rose by 6% to $1,754, while in the U.S., it increased by 2% to USD 1,911. Canadian occupancy was at 97.8%, and U.S. occupancy at 91.7%. The REIT also completed $31.8 million in capital expenditures. Looking ahead, the REIT plans to continue with its share buyback strategy and is exploring acquisition opportunities, particularly where cap rates are favorable.Morguard NA REIT UN Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 354.65M | 344.19M | 331.62M | 278.49M | 245.57M |
| Gross Profit | 166.49M | 186.38M | 180.24M | 131.86M | 115.10M |
| EBITDA | 197.05M | 179.27M | 254.03M | 149.68M | 68.22M |
| Net Income | 102.97M | 101.86M | 176.34M | 219.28M | 242.09M |
Balance Sheet | |||||
| Total Assets | 4.54B | 4.57B | 4.10B | 3.93B | 3.47B |
| Cash, Cash Equivalents and Short-Term Investments | 114.63M | 51.26M | 17.82M | 14.64M | 26.56M |
| Total Debt | 1.77B | 1.79B | 1.56B | 1.48B | 1.38B |
| Total Liabilities | 2.43B | 2.46B | 2.14B | 2.08B | 1.91B |
| Stockholders Equity | 1.99B | 2.00B | 1.85B | 1.75B | 1.48B |
Cash Flow | |||||
| Free Cash Flow | 87.76M | 97.50M | 88.97M | 75.17M | 63.70M |
| Operating Cash Flow | 87.76M | 97.50M | 88.97M | 75.17M | 63.70M |
| Investing Cash Flow | -71.30M | -59.40M | -209.01M | -11.06M | -31.30M |
| Financing Cash Flow | 49.14M | -6.74M | 120.84M | -78.88M | -33.05M |
Morguard NA REIT UN Technical Analysis
Negative
16.54
Price Trends
18.02
Negative
17.55
Negative
17.70
Negative
Market Momentum
-0.46
Positive
28.18
Positive
25.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRG.UN, the sentiment is Negative. The current price of 16.54 is below the 20-day moving average (MA) of 17.44, below the 50-day MA of 18.02, and below the 200-day MA of 17.70, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 28.18 is Positive, neither overbought nor oversold. The STOCH value of 25.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRG.UN.
Morguard NA REIT UN Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$862.73M | 8.80 | 5.16% | 4.41% | 3.83% | 63.32% | |
66 Neutral | C$3.29B | 16.05 | 3.97% | 2.46% | 6.52% | -54.45% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | C$1.95B | 69.28 | 0.93% | 4.42% | 6.19% | 79.98% | |
60 Neutral | C$1.86B | 27.54 | 0.81% | 3.01% | 1.55% | -401.05% | |
60 Neutral | C$644.01M | -3.53 | 7.26% | 3.87% | -1.21% | ― | |
46 Neutral | C$602.27M | -6.29 | -3.64% | 4.57% | -6.91% | 82.31% |
* Real Estate Sector Average
TSE:MRG.UN
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.