Morguard Real Estate ate (TSE:MRT.UN)
TSX:MRT.UN
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Morguard Real Estate ate
(TSX:MRT.UN)
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Rating:49Neutral
Price Target:
C$6.50
▼(-1.52% Downside)
Action:ReiteratedDate:02/18/26
The score is held down primarily by weak financial performance (ongoing net losses, softer cash generation, and elevated leverage). Earnings-call commentary reinforces near-term pressure from office vacancies and rent resets despite solid retail leasing trends and lower interest costs. Technicals and valuation are mixed and do not provide strong offsetting support.
Positive Factors
Retail rental uplifts on renewals
Consistent renewal uplifts across enclosed and grocery-anchored assets indicate durable pricing power in retail properties. That pricing leverage supports recurring cash flow stability and rental growth potential, underpinning long-term income generation despite office weakness.
Negative Factors
Elevated leverage and recurring losses
Sustained high leverage combined with declining equity and recurring net losses reduces balance-sheet resilience. Elevated debt relative to equity constrains capacity for acquisitions or large redevelopments, increases refinancing risk, and amplifies sensitivity to cash flow shortfalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail rental uplifts on renewals
Consistent renewal uplifts across enclosed and grocery-anchored assets indicate durable pricing power in retail properties. That pricing leverage supports recurring cash flow stability and rental growth potential, underpinning long-term income generation despite office weakness.
Read all positive factors
Morguard Real Estate ate (MRT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$440.72M
Dividend Yield3.85%
Average Volume (3M)9.76K
Price to Earnings (P/E)―
Beta (1Y)0.24
Revenue Growth-5.37%
EPS Growth13.86%
CountryCA
Employees8
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.12
Shares Outstanding66,775,566
10 Day Avg. Volume8,931
30 Day Avg. Volume9,757
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.48
Price to Sales (P/S)1.74
P/FCF Ratio102.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.00Price Target Upside-9.09% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.77
Revenue Forecast (FY)C$251.50M
Morguard Real Estate ate Business Overview & Revenue Model
Company Description
The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 47 retail, office and industrial income producing properties in Canada with a book value of $2.6 billion and approximately 8.3 million square feet of lea...
How the Company Makes Money
Morguard generates revenue primarily through leasing its properties to tenants, which includes retail spaces, office buildings, and industrial facilities. The company earns rental income from long-term leases, which typically provide stable cash f...
Morguard Real Estate ate Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call highlighted solid retail fundamentals (strong renewal uplifts, near-full occupancy in grocery-anchored centers, active redevelopment and contracted renewals) and progress on capital structure (debt reduction and lower mortgage rates). However, results were weighed down by office-sector challenges: a substantial rent reset impact at Penn West Plaza (~$16M), significant fair value losses ($62M for the year), lower overall occupancy versus prior year, and the loss of Bay leases (approx. $1.5M annual rent). Liquidity declined modestly and variable debt exposure increased. Management is cautiously optimistic about retail stability and a gradual office leasing recovery, but material office headwinds and near-term redevelopment costs temper the outlook.Positive Updates
Retail Rental Growth on Renewals
Enclosed malls saw ~5% uplift on renewals in 2025 and open-air/grocery-anchored strip centers saw ~9% uplift; management reports positive rental growth and strong retailer interest.
Negative Updates
Net Operating Income Decline in Q4
Net operating income fell from $33.5 million in Q4 2024 to $29.1 million in Q4 2025, a decline of approximately 13.1%, primarily driven by Penn West Plaza adjustments.
Read all updates
Q4-2025 Updates
Positive
Negative
Retail Rental Growth on Renewals
Enclosed malls saw ~5% uplift on renewals in 2025 and open-air/grocery-anchored strip centers saw ~9% uplift; management reports positive rental growth and strong retailer interest.
Read all positive updates
Company Guidance
Management guided that 2026 should see retail results remain stable while office softness persists but may improve with increased tour activity translating into leasing in late‑2026 and 2027; Q4 NOI fell to $29.1M (from $33.5M in 2024) after a $16M 11‑month Penn West Plaza rent reset (Penn West now 81% occupied) and a one‑time $3.8M property‑tax refund benefit in the year. Liquidity at year‑end was $68M (down from $81M), with $219M of unencumbered assets and active up‑financing discussions for 2026; interest expense declined ~$1M in the quarter and ~ $4M for the year, aided by eight mortgage renewals totaling $166M that cut average rates from 5.4% to 4.95%. The Trust has ~21% variable debt (up from 15%), has reduced total debt by >$100M over four years, increased its operating capital reserve to $35M annually ($8.75M per quarter) and spent $36.8M of operating capital (plus $15.3M leasing capital) in 2025; fair‑value losses were $20M in the quarter and $62M for the year, overall occupancy was 85.1% (down from 91.2% at end‑2024), development spend to date is $6.4M with $25–30M planned at St. Laurent, No Frills openings cost $1.5M (Parkland) and ~$5M (Saskatoon), and the majority of 1.6M sq ft up for renewal is already contracted (every retail tenant >20k sq ft renewed or expected to renew, including Walmart and Canadian Tire >100k sq ft).Morguard Real Estate ate Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 239.34M | 259.17M | 255.08M | 242.63M | 241.44M |
| Gross Profit | 111.60M | 128.23M | 125.97M | 121.99M | 122.13M |
| EBITDA | 44.56M | 6.09M | -13.22M | -34.05M | 117.27M |
| Net Income | -16.56M | -58.82M | -74.44M | -138.06M | -47.38M |
Balance Sheet | |||||
| Total Assets | 2.16B | 2.17B | 2.28B | 2.38B | 2.49B |
| Cash, Cash Equivalents and Short-Term Investments | 7.08M | 7.90M | 7.28M | 9.71M | 11.27M |
| Total Debt | 1.24B | 1.23B | 1.26B | 1.27B | 1.30B |
| Total Liabilities | 1.30B | 1.29B | 1.32B | 1.33B | 1.34B |
| Stockholders Equity | 864.72M | 884.23M | 961.18M | 1.05B | 1.15B |
Cash Flow | |||||
| Free Cash Flow | 4.08M | 12.12M | 27.28M | 41.55M | 63.14M |
| Operating Cash Flow | 40.41M | 54.46M | 66.32M | 73.97M | 80.19M |
| Investing Cash Flow | -36.33M | -5.28M | -39.04M | -32.42M | -2.95M |
| Financing Cash Flow | -4.89M | -48.55M | -29.71M | -43.11M | -74.62M |
Morguard Real Estate ate Technical Analysis
Positive
6.60
Price Trends
6.47
Positive
6.29
Positive
5.97
Positive
Market Momentum
0.04
Positive
54.54
Neutral
83.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRT.UN, the sentiment is Positive. The current price of 6.6 is above the 20-day moving average (MA) of 6.56, above the 50-day MA of 6.47, and above the 200-day MA of 5.97, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 83.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRT.UN.
Morguard Real Estate ate Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$343.37M | 16.24 | 4.52% | 7.37% | 0.92% | 92.93% | |
70 Outperform | C$908.18M | 8.80 | 5.16% | 4.41% | 3.83% | 63.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | C$438.98M | 11.98 | 7.20% | 6.89% | 2.81% | 9677.19% | |
57 Neutral | C$646.21M | -3.53 | 7.26% | 3.87% | -1.21% | ― | |
49 Neutral | C$440.72M | -25.11 | -1.91% | 3.85% | -5.37% | 13.86% |
* Real Estate Sector Average
TSE:MRT.UN
Morguard Real Estate ate
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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.