Canada's Morguard Q1 revenue falls 2.5% on higher vacancy

Morguard

05/05/2026 21:57

Overview

Canada real estate firm's Q1 revenue fell 2.5% yr/yr on higher office and residential vacancy

Normalized FFO for Q1 declined 7.8% yr/yr to C$46.1 mln

Net income rose, aided by higher non-cash net fair value gains

Outlook

Company expects to close C$148.2 mln Ottawa office property sale on Aug. 31, 2026

Company expects to close refinancing of four Canadian residential properties for up to C$252.4 mln in Q2 2026

Result Drivers

HIGHER VACANCY - Increased vacancy in office and multi-suite residential segments reduced revenue and NOI

HOTEL PERFORMANCE - Hotel segment revenue rose on higher occupancy and average daily rates

NON-CASH FAIR VALUE GAINS - Net income increased mainly due to higher non-cash net fair value gains

Company press release: ID:nCNWsZQdMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net income attributable to common shareholders
C$58.47 mln
Q1 Normalized Funds from Operations
C$46.10 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the real estate rental, development & operations peer group is "buy."

Wall Street's median 12-month price target for Morguard Corp is C$145.00, about 20.7% above its May 4 closing price of C$120.15

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)