Canada's Morguard REIT Q3 net operating income falls 12.6% yr/yr

Overview

• Canada REIT's fiscal Q3 revenue from real estate properties rose 4.7% yr/yr

• Net operating income fell 12.6% yr/yr in fiscal Q3

• Lower net operating income and AFFO reflect absence of prior year one-time tax refund

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• ONE-TIME TAX REFUND - Co said lower net operating income was mainly due to absence of a one-time tax refund received in 2025

• STRIP CENTRE OCCUPANCY - Community strip centres operated at near full occupancy, supporting rental growth on lease renewals

• OFFICE SEGMENT VARIANCE - Higher office NOI driven by Penn West Plaza, partly offset by tenant downsizing at other locations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Morguard Real Estate Investment Trust is C$6.50, about 5.9% below its October 27 closing price of C$6.91

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

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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.)