Morguard Q2 normalized FFO falls as vacancy weighs on revenue

Morguard

05/08/2026 21:30

Overview
Canada real estate firm's Q2 revenue from properties fell 1.4% on higher office and residential vacancy
Q2 net income rose 61.6% yr/yr, driven by higher non-cash net fair value gains
Normalized FFO for Q2 declined 4.4% yr/yr

Outlook
Company did not provide specific financial guidance or outlook commentary for future periods

Result Drivers
HIGHER VACANCY - Co said increased vacancy in office and multi-suite residential segments reduced Q2 revenue and NOI
FAIR VALUE GAINS - Net income rose mainly due to higher non-cash net fair value gains on investments and properties
HOTEL SEGMENT - Hotel revenue grew on higher average daily rates, though occupancy declined

Company press release: ID:nCNWcHDBNa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
C$88.6 mln
 
Q2 Normalized Funds from Operations
 
C$53.5 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 27.2% above its August 4 closing price of C$114.00
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 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.)