MISSISSAUGA, ON, April 30, 2024 /CNW/ - Morguard North American Residential REIT (the "REIT") (TSX:MRG) today announced its financial results for the three months ended March 31, 2024. Highlights The REIT is reporting first quarter performance of: Net operating income ("NOI") of $20.6 million for the three months ended March 31, 2024, an increase of $1.3 million, or 6.6% compared to 2023. Same Property Proportionate NOI in Canada increased by $1.7 million (or 12.0%), and in the U.S. increased by US$0.4 million (or 2.0%), compared to 2023. Net income of $24.8 million for the three months ended March 31, 2023, a decrease of $9.5 million, or 27.7% compared to 2023, predominantly due to a lower net fair value gain, partially offset by a decrease in deferred income tax. Basic funds from operations ("FFO") of $22.5 million for the three months ended March 31, 2024, an increase of $0.6 million, or 2.6% over the same period in 2023. Basic FFO of $0.41 per Unit for the three months ended March 31, 2024, a 5.1% increase as compared to $0.39 per Unit in 2023. FFO payout ratio for the three months ended March 31, 2024 of 45.1% compared to 46.1% in 2023. The REIT is reporting the following corporate and portfolio highlights: As at March 31, 2024, average monthly rent ("AMR") in Canada increased by 5.6% compared to March 31, 2023, while occupancy was 98.4% at March 31, 2024, compared to 98.6% at March 31, 2023. As at March 31, 2024, AMR in the U.S. increased by 3.6% compared to March 31, 2023, while occupancy was 94.0% at March 31, 2024, compared to 95.0% at March 31, 2023. As at March 31, 2024, indebtedness to gross book value ratio decreased to 38.0%, compared to 38.7% as at December 31, 2023. Financial and Operational Highlights As at March 31, December 31, March 31, (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 98.4 % 98.7 % 98.6 % Occupancy percentage – U.S. 94.0 % 94.2 % 95.0 % Average monthly rent - Canada (in actual dollars) $1,703 $1,674 $1,613 Average monthly rent - U.S. (in actual U.S. dollars) US$1,880                 US$1,875 US$1,815 Summary of Financial Information Gross book value(1) $4,212,233 $4,095,931 $4,105,798 Indebtedness(1) $1,598,821 $1,583,311 $1,598,492 Indebtedness to gross book value ratio(1) 38.0 % 38.7 % 38.9 % Weighted average mortgage interest rate 3.72 % 3.72 % 3.52 % Weighted average term to maturity on mortgages payable (years) 4.6 4.9 4.7 (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. For the three months ended March 31 (In thousands of dollars, except per Unit amounts) 2024 2023 Summary of Financial Information Revenue from real estate properties $84,756 $79,648 NOI $20,587 $19,308 Proportionate NOI(1) $44,903 $41,664 Same Property Proportionate NOI(1) $43,798 $41,646 NOI margin - IFRS 24.3 % 24.2 % NOI margin – Proportionate(1) 53.2 % 52.6 % Net income $24,776 $34,249 FFO – basic(1) $22,534 $21,954 FFO – diluted(1) $23,374 $23,022 FFO per Unit – basic(1) $0.41 $0.39 FFO per Unit – diluted(1) $0.41 $0.38 Distributions per Unit $0.18501 $0.1800 FFO payout ratio(1) 45.1 % 46.1 % Weighted average number of Units outstanding (in thousands): Basic 54,966 56,281 Diluted 57,285 60,708 (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 ...