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Morguard Real Estate ate
(TSX:MRT.UN)
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Rating:59Neutral
Price Target:
C$7.50
▲(6.99% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by moderately improving financial performance (better revenue and free cash flow) but constrained by thin profitability and leverage risk. Earnings call commentary supports the outlook with solid same-asset/NOI growth and improving occupancy, while valuation is a notable drag due to the extremely high P/E despite a moderate dividend yield. Technically, the stock shows longer-term support above key moving averages but some near-term weakness versus the 20-day average.
Positive Factors
Same-asset and NOI growth
Broad-based same-asset and NOI growth indicates improving property operations and tenant economics. If sustained, stronger operating income can support cash generation and help offset ongoing financing and redevelopment requirements.
Negative Factors
High leverage and refinancing sensitivity
The substantial debt burden leaves the REIT sensitive to refinancing costs, asset performance and property values. Leverage can restrict financial flexibility and make operating setbacks more consequential for distributions and investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Same-asset and NOI growth
Broad-based same-asset and NOI growth indicates improving property operations and tenant economics. If sustained, stronger operating income can support cash generation and help offset ongoing financing and redevelopment requirements.
Read all positive factors
Morguard Real Estate ate (MRT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$473.38M
Dividend Yield3.42%
Average Volume (3M)21.80K
Price to Earnings (P/E)98.9
Beta (1Y)0.27
Revenue Growth-4.01%
EPS GrowthN/A
CountryCA
Employees7
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.07
Shares Outstanding67,433,200
10 Day Avg. Volume5,278
30 Day Avg. Volume21,804
Financial Highlights & Ratios
PEG Ratio0.35
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$6.67Price Target Upside-4.90% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.66
Revenue Forecast (FY)C$250.50M
Morguard Real Estate ate Business Overview & Revenue Model
Company Description
Morguard Real Estate Investment Trust operates as a closed-end investment vehicle, holding a diverse portfolio of 47 income-generating properties. These assets, spread across Canada, include retail, office, and industrial sectors, and collectively...
How the Company Makes Money
Morguard REIT primarily makes money by earning rental income from tenants leasing space in its properties. Revenue is generated through (1) base rent under lease agreements, and (2) recoveries and ancillary tenant-related income where applicable, ...
Morguard Real Estate ate Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The quarter presented multiple clear positives: solid same-asset growth (7.5%), NOI growth (Q2 NOI +5.5%), improving occupancy (overall 85.2%, +40 bps Q1), strong retail performance and active accretive re‑tenanting and development plans. Headwinds are present but mostly tactical or short-term, including two large office vacancies, some industrial softness, slightly lower year-end liquidity versus 2025, and modestly higher mortgage renewal rates and variable debt exposure. On balance, the favorable operating and leasing trends, pipeline of accretive redevelopments, and available balance sheet optionality outweigh the transitory challenges.Positive Updates
Strong Same-Asset Growth
Combined same-asset growth of 7.5% for the second quarter 2026, driven by rebounds in office and continued strength in retail.
Negative Updates
Large Office Vacancies
Two sizeable office vacancies (84,000 sq ft returned across two occasions) in Ottawa and Vancouver impacted office results; management expects these vacancies to be short-term but they weighed on results.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Same-Asset Growth
Combined same-asset growth of 7.5% for the second quarter 2026, driven by rebounds in office and continued strength in retail.
Read all positive updates
Company Guidance
The call guided that performance should remain stable-to-improving for the rest of 2026, with Q2 combined same-asset growth of 7.5%, Q2 NOI of $27.1M (up 5.5% from $25.7M in 2025) and YTD NOI up 2.5%; Penn West Plaza NOI grew $1.2M and sits at ~80% occupancy, community strips delivered same-store growth of 5.9% in Q2 (2.4% YTD) at ~100% occupancy, and enclosed malls posted +2.5% in Q2 (+3.0% YTD). Liquidity and financing guidance included $61M of liquidity (flat Q1, down from $68M at FY2025), $219M of unencumbered assets, $103M of mortgages renewed year-to-date, interest expense down $240K in Q2, ~22% of debt variable (vs. 21% year-end), and expectations for additional up‑financing in 2026–27; operating capital reserve remains $35M for 2026 (=$17.5M six‑month pro rata), with only $11.4M cash spent this quarter but the full reserve expected to be deployed by year‑end. The REIT expects occupancy to rise from 85.2% at Q2 (up 40 bps from Q1: retail +60 bps, office +100 bps), views two recent 84,000 sq ft office returns as short term, reports limited renewal risk (only one >10,000 sq ft renewal at risk through 2026 and only a couple small tenants in 2027), and plans development spend of ~$25–30M (current spend ~$6M), including a 12,600 sq ft Unigold opening early 2027, no‑frills deals costing $1.6M and ~$5M, and ~$1.5M to retenant other space.Morguard Real Estate ate Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 239.37M | 239.34M | 259.17M | 255.08M | 242.63M | 241.44M |
| Gross Profit | 112.95M | 111.60M | 128.23M | 125.97M | 121.99M | 122.13M |
| EBITDA | 65.98M | 44.56M | 6.09M | -13.22M | -34.05M | 117.27M |
| Net Income | 4.83M | -16.56M | -58.82M | -74.44M | -138.06M | -47.38M |
Balance Sheet | ||||||
| Total Assets | 2.18B | 2.16B | 2.17B | 2.28B | 2.38B | 2.49B |
| Cash, Cash Equivalents and Short-Term Investments | 8.25M | 7.08M | 7.90M | 7.28M | 9.71M | 11.27M |
| Total Debt | 1.25B | 1.24B | 1.23B | 1.26B | 1.27B | 1.30B |
| Total Liabilities | 1.31B | 1.30B | 1.29B | 1.32B | 1.33B | 1.34B |
| Stockholders Equity | 870.65M | 864.72M | 884.23M | 961.18M | 1.05B | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | 29.68M | 4.08M | 12.12M | 27.28M | 41.55M | 63.14M |
| Operating Cash Flow | 44.95M | 40.41M | 54.46M | 66.32M | 73.97M | 80.19M |
| Investing Cash Flow | -34.77M | -36.33M | -5.28M | -39.04M | -32.42M | -2.95M |
| Financing Cash Flow | -8.43M | -4.89M | -48.55M | -29.71M | -43.11M | -74.62M |
Morguard Real Estate ate Technical Analysis
Positive
7.01
Price Trends
7.00
Positive
6.79
Positive
6.54
Positive
Market Momentum
<0.01
Positive
51.63
Neutral
46.67
Neutral
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 7.01 is below the 20-day moving average (MA) of 7.03, above the 50-day MA of 7.00, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$550.70M | 11.30 | 7.48% | 6.86% | 7.52% | 39.85% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | C$473.38M | 98.87 | 0.56% | 3.42% | -4.01% | ― | |
59 Neutral | C$796.79M | 8.30 | 4.74% | 5.14% | -0.84% | 2.95% | |
55 Neutral | C$321.10M | 12.44 | 5.20% | 8.24% | -0.81% | -32.86% |
* Real Estate Sector Average
TSE:MRT.UN
Morguard Real Estate ate
7.02
1.45
26.10%
TSE:BTB.UN
BTB REIT
3.63
0.16
4.52%
TSE:MRG.UN
Morguard NA REIT UN
15.27
-2.47
-13.93%
TSE:PRV.UN
PRO Real Estate Investment
6.56
1.10
20.21%
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.