Education
About Us
Working with TipRanks
Follow Us
Morguard Real Estate ate (TSE:MRT.UN)
TSX:MRT.UN
Top Page
Morguard Real Estate ate
(TSX:MRT.UN)
Select Model
Select Model
Rating:51Neutral
Price Target:
C$6.00
▲(2.56% Upside)
Morguard Real Estate's overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are the most impactful factors. The technical analysis and valuation present a neutral outlook, while the earnings call provides some optimism for future leasing opportunities. The lack of notable corporate events leaves the focus on addressing financial and operational issues.
Morguard Real Estate ate (MRT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$392.22M
Dividend Yield4.22%
Average Volume (3M)9.76K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-2.90%
EPS Growth68.88%
CountryCA
Employees8
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.07
Shares Outstanding65,698,000
10 Day Avg. Volume8,931
30 Day Avg. Volume9,757
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.40
Price to Sales (P/S)1.37
P/FCF Ratio29.32
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-5.98% Downside
Rating ConsensusHold
Number of Analyst Covering1
Morguard Real Estate ate Business Overview & Revenue Model
Company DescriptionThe 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 leasable space.
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:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with some positive aspects such as the large property tax refund, increased occupancy at Penn West Plaza, and successful retail leasing. However, these were countered by significant challenges like the decline in net operating income, fair value losses, and reduced overall occupancy rates. Despite the challenges, there is optimism about future leasing and retail growth.Q3-2025 Updates
Positive Updates
Property Tax Refund
A large one-time net property tax refund of $3.2 million was received for one of the Trust's enclosed shopping malls, which positively impacted financial results.
Occupancy Improvement at Penn West Plaza
Occupancy at Penn West Plaza increased to 81% after transitioning from a single-tenant to a multi-tenant building.
Interest Expense Decline
Interest expense declined by $1 million for the quarter and over $3 million for the nine-month period due to lower short-term variable interest rates.
Retail Leasing Success
Community strip centers are nearly full at 99% occupancy, and there are positive rental growths on lease renewals in the retail sector.
Increased Liquidity
The Trust has increased its liquidity from $72 million in the second quarter to $76 million by the end of the third quarter.
Negative Updates
Net Operating Income Decline
Total net operating income declined from $32.2 million in 2024 to $31.3 million in 2025, including a $4.3 million decrease due to the Penn West Plaza lease reset.
Challenges at Penn West Plaza
Significant inducements of free rent and operating costs impacted Penn West Plaza's results, leading to an estimated downturn of approximately $15 million in net operating income for 2025.
Occupancy Rate Decrease
Overall occupancy level decreased from 91.2% at the end of 2024 to 86.6% at September 30, 2025, primarily due to increased vacancy at Penn West Plaza and the disclaimed Bay lease at Cambridge.
Fair Value Losses
$10 million in fair value losses were recorded due to minor changes across the office asset class.
Company Guidance
During the Morguard Real Estate Investment Trust's third-quarter 2025 earnings call, several key metrics were discussed. Notably, the Trust's total net operating income declined from $32.2 million in 2024 to $31.3 million in 2025, partially due to a $4.3 million decrease tied to the Penn West Plaza lease reset. However, this was slightly offset by a $3.2 million property tax refund. The occupancy rate at Penn West Plaza stands at 81%, following a transition from single to multi-tenant occupancy. Interest expenses have decreased, with a $1 million reduction in the quarter and over $3 million year-to-date, attributed to lower short-term variable interest rates. The Trust's liquidity increased slightly to $76 million by quarter-end. The overall occupancy level rose to 86.6%, spurred by heightened leasing activity in malls and office spaces. Additionally, the Trust renewed $165 million in mortgages, reducing the interest rate from 5.4% to 4.95%. Despite challenges, including the expiration of key leases and tenant failures, the Trust remains optimistic about future leasing opportunities and maintaining strong fundamentals in the retail sector.Morguard Real Estate ate Financial Statement Overview
Summary
Morguard Real Estate faces significant financial challenges, with declining revenues and persistent profitability issues. The high leverage on the balance sheet increases financial risk, while weak cash flow performance limits operational flexibility.Income Statement
The income statement shows a declining revenue trend with a negative revenue growth rate of -2.25% in the TTM period. The company has been struggling with profitability, as indicated by negative net profit margins across all periods, with the TTM net profit margin at -13.31%. While the gross profit margin remains relatively stable, the EBIT and EBITDA margins are low, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.44 in the TTM period, indicating significant leverage. The return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is moderate, showing a balanced asset structure, but the high leverage poses potential risks.50
Neutral
Cash Flow
The cash flow statement indicates a decline in free cash flow growth, with a significant drop of -25.49% in the TTM period. The operating cash flow to net income ratio is low, reflecting challenges in converting income into cash. The free cash flow to net income ratio is moderate, but overall cash flow performance is weak, impacting liquidity.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 249.38M | 259.17M | 255.08M | 242.63M | 241.44M | 253.76M |
| Gross Profit | 116.92M | 128.23M | 125.97M | 121.99M | 122.13M | 123.78M |
| EBITDA | 29.64M | 6.09M | 123.90M | -34.05M | 117.27M | -302.67M |
| Net Income | -33.19M | -58.82M | -74.44M | -138.06M | -47.38M | -410.70M |
Balance Sheet | ||||||
| Total Assets | 2.18B | 2.17B | 2.28B | 2.38B | 2.49B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 6.51M | 7.90M | 7.28M | 9.71M | 11.27M | 8.65M |
| Total Debt | 1.25B | 1.23B | 1.26B | 1.27B | 1.30B | 1.35B |
| Total Liabilities | 1.31B | 1.29B | 1.32B | 1.33B | 1.34B | 1.40B |
| Stockholders Equity | 867.71M | 884.23M | 961.18M | 1.05B | 1.15B | 1.16B |
Cash Flow | ||||||
| Free Cash Flow | 14.82M | 12.12M | 27.28M | 41.55M | 63.14M | 15.10M |
| Operating Cash Flow | 43.19M | 54.46M | 66.32M | 73.97M | 80.19M | 46.92M |
| Investing Cash Flow | -38.58M | -5.28M | -39.04M | -32.42M | -2.95M | -25.02M |
| Financing Cash Flow | -5.30M | -48.55M | -29.71M | -43.11M | -74.62M | -19.04M |
Morguard Real Estate ate Technical Analysis
Neutral
5.85
Price Trends
5.79
Positive
5.73
Positive
5.60
Positive
Market Momentum
0.02
Positive
48.52
Neutral
20.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRT.UN, the sentiment is Neutral. The current price of 5.85 is below the 20-day moving average (MA) of 5.89, above the 50-day MA of 5.79, and above the 200-day MA of 5.60, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
| ― | C$392.46M | 13.94 | 5.27% | 7.51% | -0.28% | 206.65% | |
| ― | C$340.72M | 9.05 | 7.80% | 7.89% | 1.59% | 19.74% | |
| ― | C$221.93M | 9.27 | 7.90% | 8.91% | 3.24% | 3.36% | |
| ― | C$111.85M | 4.73 | 18.62% | 6.37% | -0.21% | ― | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | C$392.22M | -11.58 | -4.91% | 4.22% | -2.90% | 68.88% |
* Real Estate Sector Average
TSE:MRT.UN
Morguard Real Estate ate
5.84
0.37
6.76%
TSE:BTB.UN
BTB REIT
3.89
0.61
18.60%
TSE:FCD.UN
Firm Capital Property
5.95
0.57
10.59%
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
5.44
0.15
2.84%
TSE:PRV.UN
PRO Real Estate Investment
6.02
0.80
15.33%
Morguard Real Estate ate Corporate Events
Morguard Real Estate’s Earnings Call Reveals Mixed Outlook
Aug 2, 2025
Morguard Real Estate’s recent earnings call painted a mixed picture for stakeholders, with some positive trends overshadowed by significant challenges. While the company reported strong occupancy rates in certain areas and a reduction in interest expenses, these were counterbalanced by declines in net operating income, increased vacancies, and fair value losses. The positive leasing activities offer a glimmer of hope for future improvements, yet the current financial metrics suggest a challenging outlook.
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.