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:54Neutral
Price Target:
C$6.50
▼(-1.52% Downside)
Action:Reiterated
Date:05/04/26
The score is driven primarily by mixed financial performance: dependable and improving free cash flow offsets negative revenue momentum, volatile profitability, and meaningful leverage. The earnings call reinforces a balanced outlook—stable retail trends and redevelopment progress are countered by office softness, lower occupancy, and upcoming refinancing risk. Technicals and valuation are neutral, offering neither strong confirmation nor a clear discount.
Positive Factors
Retail leasing strength
Very high occupancy in grocery-anchored strip centers and strong retailer demand provide a stable, defensive income base. Grocery-anchored assets have durable foot traffic and lease resilience, supporting predictable NOI, lower turnover, and enduring cash flow over coming quarters.
Negative Factors
Revenue decline and profit volatility
Sustained revenue contraction and volatile net income weaken the stability of distributable cash and limit reinvestment capacity. Persistent top-line declines suggest structural tenant or leasing challenges that could constrain long‑term earnings recovery and capital return consistency.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail leasing strength
Very high occupancy in grocery-anchored strip centers and strong retailer demand provide a stable, defensive income base. Grocery-anchored assets have durable foot traffic and lease resilience, supporting predictable NOI, lower turnover, and enduring cash flow over coming quarters.
Read all positive factors
Morguard Real Estate ate (MRT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$435.14M
Dividend Yield3.85%
Average Volume (3M)9.76K
Price to Earnings (P/E)18.2
Beta (1Y)0.21
Revenue Growth-6.31%
EPS GrowthN/A
CountryCA
Employees8
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.01
Shares Outstanding66,944,070
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$6.25Price Target Upside-5.30% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.78
Revenue Forecast (FY)C$251.61M
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 REIT primarily makes money by earning rental and related property income from tenants across its portfolio. Its main revenue streams typically include (1) base rent under lease contracts (often multi-year, especially for commercial tenant...
Morguard Real Estate ate Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational strengths in retail (same-store growth, positive leasing spreads, active redevelopment at St. Laurent, new grocery and tenant wins) and financing improvements (lowered mortgage rates on renewals, sizeable unencumbered asset pool) against near-term challenges in office (two sizable returned office spaces in Ottawa and Vancouver), the lingering impact of two failed Bay stores, a year-over-year occupancy decline (~2.9 percentage points), and a material $159M convertible debenture maturing later this year that will be refinanced at a higher rate. Management is optimistic about retail fundamentals and expects to work through office vacancies, but the headwinds mean the positives and negatives are relatively balanced.Positive Updates
Net Operating Income Largely Stable
Q1 2026 net operating income of $25.6 million versus $25.7 million in Q1 2025 (down ~0.4%), described as in line with expectations and consistent with prior year.
Negative Updates
Office NOI Softness from Two Large Vacancies
Decline in office net operating income primarily due to two significant returns of space (totaling ~84,000 sq ft) in Ottawa and Vancouver; management expects these vacancies to be short to medium term but expects some continued office softness in 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Operating Income Largely Stable
Q1 2026 net operating income of $25.6 million versus $25.7 million in Q1 2025 (down ~0.4%), described as in line with expectations and consistent with prior year.
Read all positive updates
Company Guidance
Morguard guided that Q1 results were in line with expectations (NOI $25.6M vs $25.7M in 2025) and that retail fundamentals should remain stable while some office softness will continue in 2026 as the two recent office vacancies in Ottawa and Vancouver are expected to be backfilled within one to two years; key metrics include overall occupancy of 84.8% at March 31, 2026 (down from 87.7% a year ago), community strip same-store growth of 2.2%, Penn West Plaza occupancy ~80% with expected incremental NOI of ~$2M in 2026 (realized in the last three quarters), $61M of liquidity, $218M of unencumbered assets, a $159M convertible debenture maturing year-end (plan to re-issue a similar amount), two mortgages refinanced for $27M lowering average rates from 5.4% to 4.7%, a $400k decline in Q1 interest expense, 22% of debt variable, an operating capital reserve of $35M ($8.75M/quarter) with actual Q1 capex of $3.4M, ~1.0M sq ft up for renewal later in 2026 (including two retail leases of 10–15k sq ft and one 35k sq ft industrial likely not renewing), and development programs currently at $6.2M with total St. Laurent spend expected to be $25–30M (Sephora/H&M open), plus recent grocery and re-tenanting investments of ~$1.5M and ~$5M (No Frills) and an estimated $1.5M to retenant the Peavey Mart box (income accretive starting 2027).Morguard Real Estate ate Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 239.04M | 239.34M | 259.17M | 255.08M | 242.63M | 241.44M |
| Gross Profit | 111.58M | 111.60M | 128.23M | 125.97M | 121.99M | 122.13M |
| EBITDA | 61.90M | 44.56M | 6.09M | -13.22M | -34.05M | 117.27M |
| Net Income | 1.14M | -16.56M | -58.82M | -74.44M | -138.06M | -47.38M |
Balance Sheet | ||||||
| Total Assets | 2.17B | 2.16B | 2.17B | 2.28B | 2.38B | 2.49B |
| Cash, Cash Equivalents and Short-Term Investments | 8.40M | 7.08M | 7.90M | 7.28M | 9.71M | 11.27M |
| Total Debt | 1.24B | 1.24B | 1.23B | 1.26B | 1.27B | 1.30B |
| Total Liabilities | 1.30B | 1.30B | 1.29B | 1.32B | 1.33B | 1.34B |
| Stockholders Equity | 869.46M | 864.72M | 884.23M | 961.18M | 1.05B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 19.04M | 4.08M | 12.12M | 27.28M | 41.55M | 63.14M |
| Operating Cash Flow | 43.41M | 40.41M | 54.46M | 66.32M | 73.97M | 80.19M |
| Investing Cash Flow | -36.68M | -36.33M | -5.28M | -39.04M | -32.42M | -2.95M |
| Financing Cash Flow | -5.76M | -4.89M | -48.55M | -29.71M | -43.11M | -74.62M |
Morguard Real Estate ate Technical Analysis
Negative
6.60
Price Trends
6.55
Negative
6.47
Positive
6.11
Positive
Market Momentum
-0.01
Positive
46.59
Neutral
83.62
Negative
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 6.6 is above the 20-day moving average (MA) of 6.53, above the 50-day MA of 6.55, and above the 200-day MA of 6.11, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 83.62 is Negative, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$461.91M | 4.69 | 8.56% | 6.89% | 6.06% | 45.53% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$863.90M | 5.86 | 5.11% | 4.41% | 0.32% | -7.66% | |
59 Neutral | C$328.36M | 10.11 | 4.68% | 7.37% | -3.12% | -41.32% | |
54 Neutral | C$435.14M | 18.25 | -1.91% | 3.85% | -6.31% | ― | |
52 Neutral | C$639.25M | -2.70 | -39.64% | 3.87% | -0.32% | -340.85% |
* Real Estate Sector Average
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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.