Morguard North American Residential Real Estate Inv 6 00 Convertible Unsecured Subordinated Debentures T.MRG.DB.B

2021 Third Quarter Results

[Betteryear2]

MISSISSAUGA, ON, Oct. 26, 2021 /CNW/ - Morguard North American Residential REIT (the "REIT") (TSX: MRG.UN) today announced its financial results for the three and nine months ended September 30, 2021.

Third Quarter Highlights
The REIT is reporting third quarter performance of:

• Net operating income ("NOI") of $37.1 million for the three months ended September 30, 2021, a decrease of $1.7 million (or 4.3%) compared to 2020, and Proportionate NOI $32.6 million for the three months ended September 30, 2021 a decrease of $1.1 million (or 3.2%) compared to 2020. The change in foreign exchange rate decreased NOI and Proportionate NOI by $1.4 million and $1.1 million, respectively.
• Same Property Proportionate NOI in Canada decreased by $0.3 million (or 2.4%), and in the U.S. increased by US$0.1 million (or 0.7%), compared to 2020.
• Basic funds from operations ("FFO") of $16.2 million for the three months ended September 30, 2021 compared to $16.1 million over the same period in 2020.
• Basic FFO of $0.29 per Unit for the three months ended September 30, 2021, compared to $0.29 per Unit over the same period in 2020.
• FFO payout ratio for the three months ended September 30, 2021 of 60.9% compared to 61.1% in 2020.
• Net income of $86.7 million for the three months ended September 30, 2021, compared to $53.5 million over the same period in 2020.

The REIT is reporting the following corporate and portfolio highlights:

• The REIT's redevelopment property, 1643 Josephine Street, New Orleans, Louisiana, reached stabilized occupancy and is currently 90.4% occupied and 98.2% leased. The repositioned asset further improves the overall quality of the portfolio having an average monthly rent ("AMR") of $1,822.
• As at October 26, 2021, the REIT's collection of rental revenue in Canada and in the U.S. continues to be strong, exceeding 99% on average throughout the first three quarters of 2021.
• As at September 30, 2021, AMR in Canada increased by 3.3% compared to September 30, 2020, while occupancy decreased to 92.7% at September 30, 2021, compared to 96.4% at September 30, 2020.
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• As at September 30, 2021, AMR in the U.S. on a Same Property basis increased by 4.1% compared to September 30, 2020, while occupancy maintained optimum levels at 96.4% at September 30, 2021, compared to 93.3% at September 30, 2020.
• As at September 30, 2021, indebtedness to gross book value ratio was 40.2%, compared to 42.8% as at December 31, 2020.