Bullboard - Stock Discussion Forum Morguard Corp T.MRC

Alternate Symbol(s): MRCBF

Morguard Corporation is a Canada-based real estate and property management company. The Company’s principal activities include the acquisition, development and ownership of multi-suite residential, commercial and hotel properties. The Company has various retail, office, industrial, hotel and residential holdings owned directly and through its investment in Morguard Real Estate Investment Trust... see more

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Morguard Corp > Q3 results

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Post by pierrelebel on Nov 04, 2021 5:15pm

Q3 results

MISSISSAUGA, ON , Nov. 4, 2021 /CNW/ - Morguard Corporation ("Morguard" or the "Company") (TSX: MRC) today announced its financial results for the three and nine months ended September 30, 2021 .

Morguard is pleased to report its financial and operating results for the three and nine months ended September 30, 2021 , that demonstrate the resilient nature of the Company's portfolio and also reflect the prudent actions taken by management and staff in our continued response to the ongoing COVID-19 pandemic.

Reporting Highlights

Net income increased by $146.4 million to $108.8 million for the three months ended September 30, 2021 , compared to a net loss of $37.6 million for the same period in 2020. The increase was primarily due to an increase in net fair value gain of $189.5 million , partially offset by an increase in deferred income tax expense of $46.5 million and an increase in impairment on hotel properties of $9.6 million .
Normalized FFO was $58.7 million , or $5.29 per common share, for the three months ended September 30, 2021 . This represents an increase of $14.9 million , or 34.1% compared to $43.8 million for the same period in 2020.
Total revenue from real estate properties and hotels increased by $10.8 million , or 4.5% to $249.3 million for the three months ended September 30, 2021 , compared to $238.5 million for the same period in 2020.
Net operating income ("NOI") increased by $5.2 million , or 4.0%, to $135.4 million for the three months ended September 30, 2021 , compared to $130.3 million for the same period in 2020, primarily due to higher NOI from the hotel portfolio due to increased revenue per available room ("RevPar") and many hotels being temporarily closed during 2020. In addition, higher NOI from the retail, office and industrial portfolio was mainly caused by lower bad debt expense. The increase in NOI was partially offset by a decrease in multi-suite residential NOI due to higher vacancies. The change in foreign exchange rate decreased NOI by $2.6 million .

Operational and Balance Sheet Highlights

Rent collections from all commercial asset classes have been strong with an average of approximately 97% collected since the second quarter of 2020.
During the year, occupancy was consistent across all commercial and residential asset classes, supporting the Company's business objective of generating stable and increasing cash flow through its diversified portfolio of real estate assets.
As at September 30, 2021 the Company's total assets were $11.2 billion , compared to $11.1 billion at December 31, 2020 .
During the quarter, the Company sold four hotels, one located in Yellowknife, Northwest Territories and three located in Fort McMurray, Alberta for gross proceeds of $21.5 million .
On September 29, 2021 , the Company sold an unenclosed retail property located in London, Ontario , for gross proceeds of $15.0 million .