In This Article:
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Net Operating Income (NOI) for Q4 2024: Increased slightly over 2023, with a 2.7% increase in same asset NOI.
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Annual Net Operating Income for 2024: Increased 2% over 2023, including a 5% increase in same asset NOI.
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Same Asset NOI for Enclosed Malls: Up 6.8% year-over-year.
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Interest Expense for 2024: Increased 7% to $67.4 million compared to 2023.
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Interest Expense for Q4 2024: Decreased 4% compared to 2023.
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Funds From Operations (FFO) for Q4 2024: Increased 5% to $16.5 million from $15.7 million in 2023.
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Fair Value Losses: $49 million due to increases in CapEx rates in certain markets.
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Capital Spending for 2024: $38.2 million, exceeding the $25 million reserve.
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Occupancy Level at Year-End 2024: 91.2%, up 90 basis points from the previous year.
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Liquidity at Year-End 2024: $81 million, down from $100 million at the end of 2023.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Morguard Real Estate Investment Trust (MGRUF) reported a 2.7% increase in same asset net operating income for the fourth quarter of 2024.
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The trust achieved a 5% increase in same asset net operating income for the year ended December 31, 2024.
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Retail leasing rates increased by approximately 5% from renewals, indicating strong retail performance.
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Office asset class saw a 3% increase in same asset net operating income, driven by increased leasing activity in Alberta.
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Overall occupancy level increased by 90 basis points to 91.2% at the end of 2024, with significant improvements in office tenancy.
Negative Points
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Interest expense increased by 7% for the year, primarily due to mortgage rollovers.
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The trust experienced $49 million in fair value losses due to increases in CapEx rates in certain markets.
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Capital spending exceeded the established reserve, with actual spending at $38.2 million compared to the $25 million reserve.
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A decrease in net operating income of approximately $15 million is expected in 2025 due to lease up and vacancy costs at Penn West Plaza.
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Liquidity decreased to $81 million at the end of 2024, down from $100 million at the end of 2023.
Q & A Highlights
Q: Can you provide details on the impact of PV and Coar Group bankruptcies on Morguard's portfolio? A: John Ginis, Assistant Vice President of Retail Asset Management: The PV Mart is a 40,000 square foot space in Alberta, and Coar Group, including Ricky's and Bootlegger, covers about 80,000 square feet across multiple assets. While these bankruptcies are not material to our top 20 retail tenants, we are actively working to mitigate exposure by potentially assigning leases to new buyers and marketing the spaces to higher and better users.