Investor Relations
Morguard REIT (MRT.UN)
Morguard Real Estate Investment Trust is a closed-end trust listed on the Toronto Stock Exchange (TSX) under the symbol MRT.UN. The Trust had total real estate assets of $2.4 billion as at December 31, 2022.
The mandate of the Trust is to accumulate a Canadian portfolio of high-quality real estate assets – then actively manage the portfolio to generate steady, dependable returns for Unitholders, through a stable and increasing cash flow. This offers the potential for long-term capital appreciation.
The Trust owns a diversified real estate portfolio of 46 commercial properties consisting of approximately 8.2 million square feet of gross leasable area located in six provinces. The real estate portfolio primarily includes well-located, high-quality office properties in major urban centers, large enclosed full-scale regional shopping malls that are dominant in their respective markets, neighbourhood, and community shopping centers and a small group of industrial properties.
Investor Highlights
News
Dear Fellow Unitholders,
In 2021, COVID-19 continued to be part of our daily conversation. Travel bans, closures of essential businesses, quarantine periods and social distancing impacted our economy and disrupted the way we lived; but as the year progressed, we began to see the light at the end of the tunnel. Our 2021 Morguard REIT annual report demonstrates that the real estate sector is bouncing back.
There was accelerated economic growth in Canada during the second half of the year driving national employment higher. And the various real estate classes showed positive signs. Overall occupancy rates in the office sector have remained steady over the last year and are approximately the same as they were pre-COVID. Demand in the industrial property sector exceeded supply, with multiple bid scenarios common, along with higher rents. And retail sector market fundamentals stabilized, with leasing activity picking up and sales revenues increasing.
There are many indications that the Trust is successfully recovering. People are coming back to our offices and shoppers are coming back to our malls with reopenings taking place across our country.
The Trust’s Net Asset Value stabilized in 2021, underlying the economic improvement that was taking place across the country. Fair value losses on real estate properties were $61 million versus $420 million in 2020. Same Asset Net Operating Income from our community strip centres rose by over 2% while enclosed centres in the West were generating sales that were almost back to pre-pandemic norms. Same Asset Net Operating Income for industrial properties increased a healthy 12.5%, with the figure for our office buildings stable except in Alberta where other economic factors are in play. And rent collections in all these sectors are essentially back to normal.
During the second year of the pandemic, we continued to respond quickly and effectively to protect the health and safety of our tenants, employees and visitors to our buildings. We used government-supplied tools such as the Canada Emergency Rent Subsidy (CERS) to support the financial health of our tenants during this challenging time.
Our FFO increased a solid 3% in 2021, principally from a recovery in retail and industrial assets. We are looking forward to growing our FFO and NOI over the next 12 months as our enclosed malls reopen and we begin to re-envision and enhance their merchandising mix and bring in more service retail. The Trust’s strip centres will also continue to have positive impact on our bottom line thanks to their high occupancy and stable growth.
Our diversity by asset class, geography and quality has truly worked in our favour, as has our commitment to creating long-term value for our portfolio. Over the last two years, the Trust has undertaken over $28 million in predevelopment and development activities, spreading the budget across 15 assets.
We have created pathways that better link some of our office buildings to transit and to the city core in both Ottawa and Calgary. We have remerchandised some of our retail centres to meet the needs of their surrounding communities by reconfiguring large vacancies left by stores like Target and Sears. And, we have started repositioning some of our finest commercial office assets such as Rice Howard Place (formerly Scotia Place) in Edmonton, Alberta and Place Innovation in Saint-Laurent, Quebec, to increase rental rates and occupancy. In addition, I am pleased to report that there are significant opportunities for intensification on some of our existing assets, including Burquitlam Place in Coquitlam, B.C.
Financially, we are primed for success moving forward. Our real estate portfolio of 27 office and industrial properties and 19 retail assets in six Canadian provinces is worth $2.5 billion. Funds From Operations (FFO) per unit this year was $1.07 per share versus $1.08 a year ago.
We are in a healthy liquidity position and are capable of financing future endeavours. Our liquidity is $184.8 million versus $141.9 million a year ago and we have an unencumbered pool of $314.6 million. We completed a $150 million public offering of convertible debentures which successfully transacted at $159 million. We sold a community strip centre in London, Ontario. And in addition to our monthly $0.02 unit/distribution, Morguard REIT declared a special distribution of $0.115 per unit in response to the capital gains from the community strip centre sale.
Looking forward, I see the solid long-term potential of the Trust. We are poised to create value for our portfolio by reimagining our current assets and by seizing any new opportunities that may become available in the future.
Thank you to our unitholders, employees and partners. I truly appreciate your confidence in Morguard REIT, and I look forward to having you with us in the years ahead.
Morguard Real Estate Investment Trust is a closed-end trust listed on the Toronto Stock Exchange (TSX) under the symbol MRT.UN. The Trust owns a diversified real estate portfolio of 46 commercial properties located in six provinces across Canada. The real estate portfolio primarily includes well-located, high-quality office properties in major urban centres, dominant regional enclosed shopping centres, neighbourhood, and community shopping centres and a small group of industrial properties.
| $2.4B Real Estate Properties |
27 Office and Industrial Properties |
19 Retail Properties |
| 46 Total Properties |
8.2M Gross Leasable Area (SF) |
91%* Portfolio Occupancy |
* Excludes components of properties not available for occupancy due to redevelopment and remerchandising
Morguard REIT Portfolio Summary as at December 31, 2022
Q4
- General Information
- Annual Report
- Annual Information Form
- Management Info Circular
- Tax Information
- Distribution Reinvestment
- Distribution History
- Analyst Coverage
- Morguard REIT Annual Meeting Video
| Head Office | Morguard Real Estate Investment Trust 55 City Centre Drive, Suite 1000 Mississauga, ON, L5B 1M3 T 905-281-4800 E info@morguard.com |
| Listing | Toronto Stock Exchange |
| Symbol | MRT.UN, MRT.DB |
| Eligibility | RRSP, RRIF, DPSP, RESP, RPP, TFSA |
| Auditors | Ernst & Young LLP |
| Principal Bankers | Bank of Montreal Toronto Dominion Bank |
| Year | Distribution | Return of Capital |
Capital Gain
|
Other Income
|
Download |
|---|---|---|---|---|---|
| 2022 | $0.24 | 9.5% | 7.2% | 83.3% | 2022 Detail |
| 2021 | $0.375 | 10.80% | 27.40% | 61.80% | 2021 Detail |
| 2020 | $0.64 | 25.00% | 3.10% | 71.90% | 2020 Detail |
| 2019 | $0.96 | 41.50% | - | 58.50% | 2019 Detail |
| 2018 | $0.96 | 74.80% | - | 25.20% | 2018 Detail |
| 2017 | $0.96 | 75.70% | - | 24.30% | 2017 Detail |
| 2016 | $0.96 | 15.50% | 11.20% | 73.30% | 2016 Detail |
| 2015 | $0.96 | 27.30% | 4.20% | 68.50% | 2015 Detail |
| 2014 | $0.96 | 26.20% | 10.80% | 63.00% | 2014 Detail |
| 2013 | $0.96 | 48.27% | 3.63% | 48.10% | 2013 Detail |
| 2012 | $0.95 | 45.10% | - | 54.90% | 2012 Detail |
| 2011 | $0.90 | 32.20% | - | 67.80% | 2011 Detail |
| 2010 | $0.90 | 39.54% | - | 60.46% | 2010 Detail |
| 2009 | $0.90 | 27.20% | 5.20% | 67.60% | 2009 Detail |
To view the historical Tax Information, click here.
Distribution Reinvestment Plan Highlights:
You may participate in the Plan if you currently are a Unitholder of record of Morguard REIT units or if you own Morguard REIT units through your broker (by having your broker participate on your behalf).
You may purchase additional units by reinvesting all or a portion of the cash distributions paid on your units, at the average market price of 100% of the simple average of the closing price for units of Morguard REIT on The Toronto Stock Exchange for the twenty (20) trading days immediately preceding a Distribution Date.
You may purchase Morguard REIT units without paying any service fees, brokerage trading fees or other charges. (Note: If you participate in the Plan through your broker, you should consult with your broker; your broker may charge you a service fee.)
Plan participation is voluntary, and participation in the Plan may be terminated at any time. Carefully read the complete Distribution Reinvestment Plan Information to Unitholders here before deciding to participate.
To Participate:
Unitholders may register online by visiting the Computershare Investor Centre website at
www.computershare.com or by contacting Computershare at 1-800-564-6253 (Canada and U.S.) or 514-982-7555 (International).
Unitholders who own units through a broker should consult their broker regarding participation in the Plan.
| Distribution Per Unit |
Distribution Record Date | Distribution Payment Date | Amount |
|---|---|---|---|
| $0.02 | 28 Feb 2023 | 15 Mar 2023 | $1,254,327.60 |
| $0.02 | 31 Jan 2023 | 15 Feb 2023 | $1,254,503.50 |
To view the Distribution History archive, click here.
| Company | Contact | Phone | |
|---|---|---|---|
|
Bank of Montreal
|
Jenny Ma, CFA
|
416-359-4955 | |
| RBC Capital Markets | Pammi Bir, CPA, CA, CFA | 416-842-7805 | pammi.bir@rbccm.com |
| Scotiabank GBM | Himanshu Gupta, CPA, CA, CFA | 416-863-7218 | himanshu.gupta@scotiabank.com |
| Toronto Dominion Bank | Jonathan Kelcher, CFA | 416-307-9931 | jonathan.kelcher@tdsecurities.com |
- Declaration of the Trust
- Statement of Corporate Governance
- Trustee Mandate
- Committee Charters
- Board of Trustees and Committee Composition
- Disclosure Policy
- Whistleblower Program
- Policy Statement Election of Trustees
Morguard REIT's Declaration of Trust governs our operations and includes such topics as investment guidelines and operating policies, financing restrictions, units and distributions, and the responsibilities and obligations of the Trustees.
Morguard REIT is committed to the highest standards of corporate governance and the Board of Trustees believes that sound governance practices are essential to the wellbeing of the trust and its Unitholders. The Board and committees review and update these practices regularly, execute our annual strategic plan, identify risks and opportunities and ensure that we meet our fiduciary duties.
The primary responsibility of the Board of Trustees is to foster the long-term success of the Trust consistent with the Board's responsibility of the Unitholders to maximize value. The Board facilitates its exercising of independent supervision of the Trust's management through frequent meetings, both with and without members of the Trust's management (including management that are also Trustees) being in attendance.
Morguard REIT has three Board committees: Audit; Compensation & Governance; Investment.
Audit Committee
The Audit Committee assists the Board of Trustees in fulfilling its oversight responsibilities for financial matters, insurance, enterprise risk management and environmental management programs. The Audit Committee reviews the financial statements, the adequacy of the system of internal control, the financial reporting process and management of financial risks, the nature and scope of the audit process as proposed by the auditors and the Trust's disclosure controls and procedures.
Human Resources & Governance Committee
The purpose of the Human Resources and Governance Committee is to provide a focus on governance that will enhance the Trust's performance and to assist the Board in fulfilling their obligations relating to human resources and compensation, and to establish a plan of continuity and development for the Trust.
The Human Resources and Governance Committee is responsible for developing the Trust's approach to matters of governance, reviewing the mandates of the Trustees and its committees and administering the Trust's long term incentive plans. It also reviews and makes recommendations to the Trustees relating to the appointment of Trustees and the compensation of the Trustees, officers and employees of the Trust. The Human Resources and Governance Committee will report to the Trustees, at least annually, on these matters and other reports in accordance with the compensation disclosure rules prescribed by applicable legislation.
Each of the Human Resources and Governance Committee members has direct experience relevant to their responsibilities in overseeing the executive compensation program. With collective professional experience in areas including accounting, business, human resources, compensation, finance, strategy and risk management, the Committee members have the requisite knowledge and expertise to make informed decisions on compensation matters.
Investment Committee
The duties of the Investment Committee are to review all proposals regarding investments, dispositions and borrowings of the Trust and to make recommendations in connection therewith to the Trustees. The Investment Committee is entitled to authorize proposed transactions and approve acquisitions, dispositions or borrowings on behalf of the Trust where the acquisition, disposition or borrowing, as the case may be, would not be in or for an amount which exceeds $25.0 million. The committee also generally assumes responsibility for establishing and reviewing investment guidelines and for overseeing the environmental management program of the Trust.
| K. Rai Sahi Chairman and Chief Executive Officer Morguard Corporation |
Donald W. Turple1, 2 Corporate Director |
Bart S. Munn1, 2 Corporate Director |
| Timothy J. Walker2, 3 Corporate Director |
Timothy J. Murphy1, 3 Partner, McMillan LLP |
Antony K. Stephens1,3 Corporate Director |
1 Independent Trustee
2 Audit Committee
3 Human Resources and Governance Committee
Please click for bios of the Trustees.
Please click for the Terms of Reference of the Chair of the Board of Trustees.
Morguard REIT is committed to a policy of full, true and plain public disclosure of all material information in a timely manner, in order to keep Unitholders and all members of the investing public equally informed about the REIT's operations.
The Code of Business Conduct of Morguard REIT requires directors, trustees, officers and employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. As employees and representatives of Morguard REIT, we must practice honesty and integrity in fulfilling our obligations and comply with laws and regulations and report violations or suspected violations in accordance with Morguard REIT’s Whistleblower Policy. This policy ensures that no director, trustee, officer, or employee who, in good faith, reports a violation of the Code shall suffer harassment, retaliation, or adverse employment consequence.
Confidential complaints can be made to:
Beverley G. Flynn
Senior Vice President, General Counsel & Secretary
55 City Centre Drive, Suite 1000, Mississauga ON L5B 1M3
E bflynn@morguard.com
Or, to the Audit Committee Chair, Morguard Corporation
55 City Centre Drive, Suite 1000, Mississauga ON L5B 1M3
The board of trustees of Morguard Real Estate Investment Trust believes that each of its members should have the confidence and support of the Trust’s unitholders. To this end, the members of the Board have unanimously adopted this statement of policy which applies to all current and future Trustees of the REIT.
Chief Financial Officer
Morguard REIT
55 City Centre Drive, Suite 1000
Mississauga, ON L5B 1M3
T 905-281-4800
E atamlin@morguard.com
Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, Ontario, M5J 2Y1
T 416-263-9200
F 416-981-9800
Shareholders Services
T 1-800-564-6253
K. Rai Sahi
President and Chief Executive Officer
Morguard Real Estate Investment Trust
E rsahi@morguard.com
K. Rai Sahi is President and Chief Executive Officer of the Trust and Chairman and Chief Executive Officer of Morguard Corporation. Mr. Sahi, FCPA, FCGA, has over 30 years of business experience in public and private corporations, including extensive experience in investing, financial reporting, standards and policy covering a broad range of industries including insurance, commercial banking, manufacturing, transportation and automotive as well as real estate. Mr. Sahi has received many distinctions, including the Certified General Accountants Association of Canada Fellowship Award (2009), Voice Achievement Award (Fellowship in the Indo-Canadian Community over critical enterprises, 2009) and Turnaround Entrepreneur of the Year (1994). In addition, Mr. Sahi is a ranked member of numerous prestigious business listings, including ‘‘The Top 25 Most Influential Figures in Canadian Golf’’ (The National Post) and one of ‘‘The Most Influential People in Golf’’ (Golf Inc.).
Andrew Tamlin
Chief Financial Officer
Morguard Real Estate Investment Trust
E atamlin@morguard.com
Mr. Tamlin joins the Trust having worked in progressively senior financial positions at ClubLink Corporation, and subsequently TWC Enterprises Limited (TSX: TWC) for nearly 20 years. He was appointed CFO in 2015, including overseeing the finance and reporting functions of the company. A graduate of Wilfrid Laurier University in Business Administration and Management, Mr. Tamlin also holds a Chartered Professional Accountant (CPA, CA) designation. Mr. Tamlin will continue in his current role of CFO at TWC Enterprises Limited.
Beverley G. Flynn
Senior Vice President, General Counsel and Secretary
Morguard Real Estate Investment Trust
E bflynn@morguard.com
Beverley G. Flynn is Senior Vice President, General Counsel and Secretary of Morguard. She joined Morguard in July 2003 and has taken on roles of increasing responsibility and scope throughout her tenure. Ms. Flynn has over 15 years of experience in business and legal matters relating to public markets, real estate, finance, operations, risk, sustainability and corporate and securities law. Prior to joining Morguard, Ms. Flynn was an associate with McMillan LLP. Ms. Flynn is member of the Law Society of Upper Canada and a graduate of Osgoode Hall Law School and Memorial University of Newfoundland. Ms. Flynn is also a recipient of the Osgoode Hall Law School Alumni Gold Key Award, the Global Counsel Award (General Commercial) from the International Law Office and the Association of Corporate Counsel and was named to the GC Power List: Canada Teams by The Legal 500.
Paul Miatello
Senior Vice President
Morguard Real Estate Investment Trust
E pmiatello@morguard.com
Paul Miatello is Senior Vice President at the Trust and Chief Financial Officer of Morguard Corporation. Prior to being appointed CFO in 2007, he held the offices of Vice President Finance and Vice President, Morguard Residential Inc. Paul joined Revenue Properties Company Limited (RPCL), a Morguard subsidiary, in 2000 and was appointed Vice President, Finance and CFO of RPCL in 2003. Paul has over 15 years experience working with public and private real estate companies. Paul is a Chartered Professional Accountant (CPA, CA).
Angela Sahi
Executive Vice President, Residential, Office and Industrial
E asahi@morguard.com
Ms. Sahi is Executive Vice President, Residential, Office and Industrial at Morguard. She began working for Morguard in 1995, while still under the name Acktion Corporation. Ms. Sahi holds a variety of roles and responsibilities at Morguard, including board member of Morguard Corporation and TWC Enterprises Limited. Ms. Sahi has oversight of the management and operation of Morguard’s Canadian multi-suite residential portfolio as well as the office and industrial portfolios. She also manages the research and valuations groups. Prior to working with Morguard, Ms. Sahi’s experience includes consulting with both Ernst & Young LLP’s Real Estate Advisory Group and Business Risk Services Group in New York City. She also worked in Ernst & Young LLP’s Audit and Tax groups in Toronto. Ms. Sahi has a Bachelor of Arts (Honors) and Gold Medal from the University of Western Ontario. She also completed a post-graduate degree in accounting from Wilfrid Laurier University and holds a Certified Public Accountant designation.
77 Bloor Street West – Toronto, ON
Modernizing a Landmark Office Tower
Woodbridge Square – Vaughan, ON
Community Shopping Centre Repositioning
