MISSISSAUGA, ON, July 30, 2024 /CNW/ - Morguard North American Residential REIT (the "REIT") (TSX:MRG) today announced its financial results for the three and six months ended June 30, 2024. Highlights The REIT is reporting second quarter performance of: Net operating income ("NOI") of $54.6 million for the three months ended June 30, 2024, an increase of $1.2 million, or 2.2% compared to 2023. The change in foreign exchange rate increased NOI by $0.5 million. Same Property Proportionate NOI in Canada increased by $1.2 million (or 7.5%), and in the U.S. decreased by US$0.4 million (or 1.8%), compared to 2023. Net income of $50.6 million for the three months ended June 30, 2024, a decrease of $36.9 million, or 42.2% compared to 2023, predominantly due to lower net fair value gain, partially offset by a decrease in deferred income tax. Basic funds from operations ("FFO") of $22.7 million for the three months ended June 30, 2024, a decrease of $1.0 million, or 4.3% over the same period in 2023. Basic FFO of $0.41 per Unit for the three months ended June 30, 2024, a 2.4% decrease as compared to $0.42 per Unit in 2023. FFO payout ratio for the three months ended June 30, 2024 of 44.6% compared to 42.5% in 2023. The REIT is reporting the following corporate and portfolio highlights: During the second quarter of 2024, the REIT completed the financing of three Canadian multi-suite residential properties for aggregate proceeds of $209.6 million at a weighted average interest rate of 4.64% and for terms of 10.5 years. The maturing mortgages amounted to $91.4 million, had a weighted average interest rate of 3.36%, resulting in net proceeds of $118.2 million, before financing costs. As at June 30, 2024, average monthly rent ("AMR") in Canada increased by 6.1% compared to June 30, 2023, while occupancy remained strong and stable at 98.0% at June 30, 2024, compared to 98.4% at June 30, 2023. As at June 30, 2024, AMR in the U.S., increased by 2.6% compared to June 30, 2023, while occupancy was 93.3% at June 30, 2024, compared to 95.3% at June 30, 2023. As at June 30, 2024, indebtedness to gross book value ratio of 39.3%, compared to 38.7% as at December 31, 2023. Financial and Operational Highlights As at June 30, December 31, June 30, (In thousands of dollars, except as otherwise noted) 2024 2023 2023 Operational Information Number of properties 43 42 43 Total suites 13,089 13,089 13,089 Occupancy percentage – Canada 98.0 % 98.7 % 98.4 % Occupancy percentage – U.S. 93.3 % 94.2 % 95.3 % Average monthly rent - Canada (in actual dollars) $1,730 $1,674 $1,613 Average monthly rent - U.S. (in actual U.S. dollars)                 US$1,896                 US$1,875 US$1,848 Summary of Financial Information Gross book value(1) $4,377,500 $4,095,931 $4,128,900 Indebtedness(1) $1,720,043 $1,583,311 $1,583,989 Indebtedness to gross book value ratio(1) 39.3 % 38.7 % 38.4 % Weighted average mortgage interest rate 3.87 % 3.72 % 3.65 % Weighted average term to maturity on mortgages payable (years) 5.4 4.9 5.2 (1) Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS.       Three months ended    Six months ended       June 30  June 30 (In thousands of dollars, except per Unit amounts) 2024 2023 2024 2023 Summary of Financial Information Revenue from real estate properties $85,756 $83,326 $170,512 $162,974 NOI $54,649 $53,494 $75,236 $72,802 Proportionate NOI(1) $46,401 $45,238 $91,304 $86,902 Same Property Proportionate NOI(1) $46,401 $45,238 $89,109 $85,793 NOI margin – IFRS 63.7 % 64.2 % 44.1 % 44.7 % NOI margin – Proportionate(1) 54.4 % 54.6 % 53.8 % 53.6 % Net income $50,571 $87,515 $75,347 $121,764 FFO – basic(1) $22,685 $23,711 $45,219 $45,665 FFO – diluted(1) $23,525 $24,549 $46,899 $47,571 FFO per Unit – basic(1) $0.41 $0.42 $0.82 $0.81 FFO per Unit – diluted(1) $0.41 $0.42 $0.82 $0.80 Distributions per Unit $0.18501 $0.1800 $0.37002 $0.3600 FFO payout ratio(1) 44.6 % 42.5 % 44.9 % 44.2 % Weighted average number of Units outstanding (in thousands): Basic 54,745 55,957 54,856 56,118 Diluted 57,064 58,276 57,175 59,485 (1) Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. Specified Financial Measures The REIT reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). However, this earnings release also uses specified financial measures that are not defined by IFRS, which follow the disclosure requirements established by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Specified financial measures are categorized as non-GAAP financial measures, non-GAAP ratios, and other financial measures. Additional details on specified financial measures including supplementary financial measures, capital management measures and total segment measures are set out in the REIT's Management's Discussion and ...