Q3 2024 Morguard North American Residential Real Estate Investment Trust Earnings Call Transcript
Key Points
- Morguard North American Residential Real Estate Investment Trust (MNARF) reported an increase in total assets to $4.4 billion, up from $4.1 billion at the end of 2023.
- The REIT has a strong cash position with $103.3 million on hand and an additional $100 million available under its revolving credit facility.
- The REIT announced an increase in annual cash distribution by $0.02 per unit, representing a 2.7% increase.
- Average monthly rent in Canada increased by 6% compared to the previous year, reflecting the quality of the Canadian portfolio.
- The REIT's FFO payout ratio remains conservative at 45.9%, allowing for significant cash retention.
- The REIT reported a net loss of $18.8 million for the third quarter, a significant decrease from a net income of $39.2 million in the previous year.
- Net operating income decreased by 0.7% compared to the previous year, with a notable decrease in the US due to higher vacancy rates.
- Interest expenses increased by $5.5 million due to higher mortgage interest rates and refinancing costs.
- Occupancy rates in the US decreased to 91.7% from 93.7% the previous year, attributed to aggressive rent increases and turnover during the summer leasing season.
- The REIT's debt to gross book value ratio increased slightly to 38.9% from 38.7% at the end of 2023.
(Operator Instructions) Good afternoon, ladies and gentlemen, and welcome to the third quarter conference call. (Operator Instructions) This call is being recorded on Thursday, October 31, 2024.
I would now like to turn the conference over to Paul Miatello. Please go ahead.
Thank you, and good afternoon, everybody, and thank you for joining us for our Q3 results call. With me in the room here, I have Angela Sahi, Senior Vice President, Canadian Operations; Beverley Flynn, Senior Vice President and General Counsel. On the phone, we have John Talano, Senior Vice President, US Operations. I am Paul Miatello, Senior Vice President; and we have Chris Newman, our Chief Financial Officer.
And I'll turn it over to Chris now for some prepared comments.
Great. Thank you, Paul. As is customary, I
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