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

Look out below!!

[SargeX]

Earnings just out and quite a mess.

I'm starting to get a tad tired of MRG. We only have a minor position and only bought it to replace some of the cash from the NVU sale. Unfortunately, it was right before Covid and it is the only "loser" stock we have.

I'm certainly running out of patience and now debating whether to sell half and just use the dough for extra short term trading.

https://www.morguard.com/news-knowledge/news-article?newsId=123282

[Northforce13]

Yeah... and how does the value of their properties rise when the cap rate is the same and FFO declined.

[Capharnaum]

I'm not sure why you would qualify the earnings as "quite a mess". Q over Q, 44% of the same property NOI decrease is due to the higher $CAD, the rest is due to a decrease in student related leases plus government measures that prevent evictions or raising rents due to COVID while costs slightly increased. All of this was fairly predictable for a residential REIT, and other than the

[Defiance2050]

I personally dont own but have been considering with free cash purchasing shares.  Good points. Not sure if it follows the student housing but occupancy rate decreased significantly both q/q and y/y. Atleast in the near term in my perspective this was minor negative quarter. MRG hasnt done as much mortgage renewal rates to the extent of CAR as well as purchasing or selling properties. 

[Capharnaum]

Global occupancy (Canada and US) was stable in Q1 2021 vs Q4 2020. Obviously, Q1 2021 vs Q1 2020 (or y/y) decreased as they have properties which are at least partly rented to students (usually), most of which started tailing off in Q2 2020. I think it's too early to repurpose these properties as the students flow should come back and occupation will stay lower until this happens. They do

[ntcse123]

Yeah I believe FFO was 0.28 in Q3, 0.26 in Q4 and now back to 0.28 in 2021 Q1.  It's fine, no real change, still a recovery play.  Their wost holdings in the US is the stuff in Chicago in the theatre district that generally rents to businesses and is probably still affected but will rebound soon enough possibly next quarter.  Other than that its the single property in Alberta

[Defiance2050]

I mistook the overall numbers thought the weighting was closer to 66% Canada rest US. Ontario is down 1.2% occupancy q/q though. I expected Ontario to improve or be flat. Overall you are right it is stable roughly flat. Wasnt specifically referring to student but a general region or building age focus on repurposing. There is a heavy Ontario base with lowering cap rates and an improved USD/ CAD

[Capharnaum]

I really like BSR Reit for different reasons. MRG is more conservative, traditionnal, low payout and trades at a large discount to NAV. BSR Reit is a more agressive REIT that generates a lot of their revenues by "trading" properties. The shares don't trade at much of a discount to NAV though. MRG shares should eventually appreciate even if they keep their conservative approach as

[Defiance2050]

Personally I own BAM, CAR, DRM I dont know the full reasoning maybe with an asset manager discount similar to how BPY was. Asset manager profit with fees and can purchase or sell shares depending on the conditions. Other conservative apartment reits have a closer to NAVPU price. Dont quote me on the numbers (could probably find a report with all the numbers) with all of these being lower yields

[Capharnaum]

I definately think that MRG suffers from the manager discount phenom. Despite that, imo, the gap between where shares trade and NAV is too large and we'll see share appreciation. As to BSR, I like that they have a "developer" mentality. They basically purchase properties in sectors where they see growth which in their opinion will drive higher rent raises. Then when they feel the

[Defiance2050]

MRG performed the same as the rest of apartment reits since earnings. Rest of reits had a similar decrease on Canadian occupancy. I was wrong on my assumption and MRG had a better quarter than I originally thought. The NAVPU discount for the rest of the sector is gone as everything has appreciated. MRG is on my watchlist at a higher convinction than before for when I have cash to invest or