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Morguard Real Estate ate (TSE:MRT.UN)
TSX:MRT.UN
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Morguard Real Estate ate
(TSX:MRT.UN)
Rating:52Neutral
Price Target:
C$5.50
▼(-1.96%Downside)
Morguard Real Estate ate (MRT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$365.42M
Dividend Yield4.4%
Average Volume (3M)6.56K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-2.90%
EPS Growth68.88%
CountryCA
Employees8
SectorReal Estate
Sector Strength60
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.03
Shares Outstanding65,137,955
10 Day Avg. Volume9,506
30 Day Avg. Volume6,563
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.50Price Target Upside-1.96% Downside
Rating ConsensusHold
Number of Analyst Covering1
Morguard Real Estate ate Business Overview & Revenue Model
Company DescriptionMorguard Real Estate Investment Trust (MRT.UN) is a Canada-based real estate investment trust focused on owning, managing, and developing retail, office, and industrial properties across Canada. The company's portfolio includes a diverse range of properties strategically located in prime markets, catering to various tenants and industries. Morguard REIT is committed to providing high-quality spaces that meet the needs of its tenants while delivering stable and sustainable returns to its investors.
How the Company Makes MoneyMorguard Real Estate Investment Trust generates revenue primarily through leasing its properties to tenants in the retail, office, and industrial sectors. The company earns rental income, which forms the bulk of its revenue, through long-term lease agreements with tenants. Additionally, MRT.UN enhances its revenue by managing property-related services and maintenance, which may include property management fees. The trust may also realize gains from the strategic sale of properties and reinvest in its portfolio to optimize its asset base. The company's earnings are further supported by its focus on maintaining high occupancy rates and effective cost management strategies.
Morguard Real Estate ate Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -1.75%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some positive trends such as strong occupancy in strip centers and reduced interest expenses, but these were overshadowed by significant challenges including a decline in net operating income, increased vacancies, and fair value losses. The positive aspects in leasing activities suggest potential future improvements, but current financial metrics present a challenging outlook.Q2-2025 Updates
Positive Updates
Strong Occupancy at Penn West Plaza
Despite the expiration of the Obsidian head lease and market challenges, Penn West Plaza achieved an 80% occupancy rate immediately after transitioning to a multi-tenant building.
Interest Expense Reduction
The Trust's interest expense declined almost $1.3 million for the quarter and over $2 million for the 6-month period due to lower variable interest rates.
High Occupancy in Strip Centers
Community strip centers, largely grocery-anchored, are essentially full at 99% occupancy.
Positive Leasing Activity
Positive rental growth on lease renewals in the retail segment, with ongoing conversations involving well-known national brands.
Negative Updates
Decline in Net Operating Income
Total net operating income for the second quarter declined from $31.8 million in 2024 to $25.7 million in 2025, mainly due to the Penn West Plaza lease reset.
Increased Vacancy and Occupancy Decline
Overall occupancy level decreased from 91.2% at December 31, 2024, to 85.9% at June 30, 2025, due to increased vacancy at Penn West Plaza and the disclaimed Bay lease at Cambridge.
Bay Lease Disclaimer Impact
The Bay filed for creditor protection, affecting two locations with a total of 290,000 square feet, leading to a loss of $1.5 million in annualized gross rent.
Fair Value Losses
The Trust reported $11 million in fair value losses due primarily to changes across all asset classes.
Company Guidance
During the Morguard North American Residential REIT 2025 Second Quarter Results Conference Call, the company reported a decline in total net operating income from $31.8 million in 2024 to $25.7 million in 2025, largely due to a $4.7 million impact from the Penn West Plaza lease reset and a $431,000 decline in lease cancellation fees. The occupancy level at Penn West Plaza, following the transition from a single to a multi-tenant building, stood at 80%. The overall occupancy level decreased to 85.9% from 91.2% at the end of 2024, influenced by increased vacancies at Penn West Plaza and the disclaimed Bay lease at Cambridge. The Trust's interest expense declined by $1.3 million for the quarter due to lower short-term variable interest rates, with a total interest expense reduction of over $2 million for the six-month period. Liquidity was reported at $72 million, down from $81 million at the end of 2024. The Trust renewed or extended mortgages totaling $80 million, reducing the interest rate from an average of 6.4% to 5%. Additionally, real estate properties accounted for $11 million in fair value losses due to minor changes across asset classes.Morguard Real Estate ate Financial Statement Overview
Summary
Morguard Real Estate exhibits a stable revenue base and operational efficiency, yet struggles with profitability and high leverage. The negative net income and persistent debt levels are concerning, although the company's ability to generate free cash flow offers a silver lining. Strategic financial restructuring and improved profitability are essential for enhancing financial health and reducing leverage risk.Income Statement
The income statement reveals a challenging financial trajectory. Despite maintaining a steady revenue stream, the company is experiencing negative net income, indicating profitability issues. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 48.24% and an EBIT margin of 47.20%, which are strong relative to revenues, but the net profit margin is negative due to significant net losses. Revenue growth is modest, with a slight decline from the previous annual report, suggesting growth stagnation. The consistency in gross profit margin suggests stable operational efficiency, but persistent net losses highlight underlying financial challenges.60
Neutral
Balance Sheet
The balance sheet displays a stable but leveraged financial position. The debt-to-equity ratio stands at 1.43, indicating a significant reliance on debt financing, which poses a risk if not managed effectively. The equity ratio of 40.03% suggests a moderate proportion of assets financed by equity, providing some buffer against liabilities. However, the return on equity remains negative due to ongoing net losses, reflecting the need for strategic financial adjustments to enhance profitability.55
Neutral
Cash Flow
The cash flow statement presents a mixed picture. The free cash flow has grown significantly in the TTM period, indicating improved operational cash management. The operating cash flow to net income ratio is negative, reflecting the company's ongoing challenges in translating operational activities into net profit. However, the positive free cash flow to net income ratio indicates that the company manages to generate cash despite reported losses, providing some resilience.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 259.17M | 255.08M | 242.63M | 241.44M | 253.76M |
| Gross Profit | 128.23M | 125.97M | 121.99M | 122.13M | 123.78M |
| EBITDA | 6.09M | 123.90M | -34.05M | 117.27M | -302.67M |
| Net Income | -58.82M | -74.44M | -138.06M | -47.38M | -410.70M |
Balance Sheet | |||||
| Total Assets | 2.17B | 2.28B | 2.38B | 2.49B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 7.90M | 7.28M | 9.71M | 11.27M | 8.65M |
| Total Debt | 1.23B | 1.26B | 1.27B | 1.30B | 1.35B |
| Total Liabilities | 1.29B | 1.32B | 1.33B | 1.34B | 1.40B |
| Stockholders Equity | 884.23M | 961.18M | 1.05B | 1.15B | 1.16B |
Cash Flow | |||||
| Free Cash Flow | 12.12M | 27.28M | 41.55M | 63.14M | 15.10M |
| Operating Cash Flow | 54.46M | 66.32M | 73.97M | 80.19M | 46.92M |
| Investing Cash Flow | -5.28M | -39.04M | -32.42M | -2.95M | -25.02M |
| Financing Cash Flow | -48.55M | -29.71M | -43.11M | -74.62M | -19.04M |
Morguard Real Estate ate Technical Analysis
Negative
5.61
Price Trends
5.75
Negative
5.64
Negative
5.52
Positive
Market Momentum
-0.02
Positive
39.30
Neutral
39.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRT.UN, the sentiment is Negative. The current price of 5.61 is below the 20-day moving average (MA) of 5.70, below the 50-day MA of 5.75, and above the 200-day MA of 5.52, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 39.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRT.UN.
Morguard Real Estate ate Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$320.41M | 8.22 | 8.03% | 8.50% | 3.34% | 10.20% | |
78 Outperform | C$113.29M | 7.06 | 11.99% | 6.28% | -0.90% | 9.33% | |
78 Outperform | C$224.14M | 7.89 | 9.43% | 8.82% | 5.06% | 43.11% | |
73 Outperform | C$370.29M | 13.00 | 5.68% | 7.81% | -1.07% | 684.07% | |
62 Neutral | AU$2.95B | 8.45 | 2.58% | 5.09% | 18.21% | 47.14% | |
52 Neutral | C$365.42M | ― | -3.72% | 4.40% | -2.90% | 68.88% |
* Real Estate Sector Average
Performance Comparison
TSE:MRT.UN
Morguard Real Estate ate
5.61
0.50
9.78%
TSE:BTB.UN
BTB REIT
3.64
0.76
26.39%
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
5.50
0.43
8.48%
TSE:FCD.UN
Firm Capital Property
6.07
1.17
23.88%
TSE:PRV.UN
PRO Real Estate Investment
5.76
1.18
25.76%
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.