Canada's Morguard Q3 revenue rises on higher rents and fees

Overview

• Canada real estate firm's Q3 total revenue rose 3.2% yr/yr, driven by higher rents and fees

• Q3 net income more than doubled, mainly on non-cash fair value gains and higher fees

• Q3 adjusted NOI fell 2.6% due to higher vacancy and lower non-recurring income

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• RENT AND HOTEL RATES - Higher average monthly rent and hotel rates drove revenue growth, partly offset by increased vacancy

• MANAGEMENT FEES - Higher asset and property management fees from an expanded residential portfolio increased fee income

• NON-RECURRING INCOME - Lower non-recurring lease cancellation fees and higher retail vacancy weighed on adjusted NOI

Company press release: ID:nCNWhtPdka

Key Details

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$150.00, about 36.6% above its November 3 closing price of C$109.78

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Nov 2 - Canada's First Capital REIT Q3 operating FFO per unit rises on higher net operating income

• Nov 2 - Canada's RioCan Q3 core FFO per unit up 5.1% on retail occupancy strength

• Nov 3 - Canada's Boardwalk REIT Q3 FFO per unit falls; tightens 2026 guidance

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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.)