| Morguard North American Residential REIT and Morguard Corporation Complete Acquisition of Prominent U.S. Multi-Suite Residential Property | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#14ddfd02-772e-4184-813f-3edbb2e94651;L0|#014ddfd02-772e-4184-813f-3edbb2e94651|Morguard Corporation;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#a9eac8ae-d456-40d5-af28-dc36ae543995;L0|#0a9eac8ae-d456-40d5-af28-dc36ae543995|Morguard North American Residential REIT;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-18T04:00:00Z | <font color="#000000" face="Times New Roman" size="3">
</font><p>Morguard North American
Residential Real Estate Investment Trust (the "REIT") (TSX:MRG.UN)
and Morguard Corporation (the "Company") (TSX:MRC) announced today
the acquisition of The Fenestra at Rockville Town Square ("The Fenestra"),
a 492-suite apartment community in Rockville, MD. The acquisition was completed
for a purchase price of $163.1 million (US$129 million). The entities will own
the property on a 50/50 joint venture basis.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>"The Fenestra's
condo-quality amenities, recent construction and prominent location in the hub
of a growing community make the property an excellent addition to our
portfolio," said K. Rai Sahi, Chief Executive Officer of Morguard.
"This acquisition supports our long-term strategy of investing in
high-quality North American multi-suite residential assets that improve the
quality of the cash flow while maximizing long-term investment returns for
investors."</p><font color="#000000" face="Times New Roman" size="3">
</font><p>The Fenestra comprises three
six-storey buildings in Rockville, MD, an urban growth market located within
commuting distance of Washington, DC. Development of The Fenestra was completed
in 2008, which will help mitigate capital expenditure risk.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>The property is prominently
located on Rockville Town Square, the social and cultural hub of Rockville.
Residents of The Fenestra can walk to numerous restaurants, nightclubs and
boutique shopping stores, or easily commute to Washington via the nearby
Washington Metro.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>Concurrent with the
acquisition, financing of $89.7 million (US$70.95 million), with a fixed term
of 10 years and an interest rate of 3.55%, was completed. </p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong>About Morguard North
American Residential REIT</strong><br>
The REIT is an
unincorporated, open-ended real estate investment trust which owns, through a
limited partnership, interests in a portfolio of 16 Canadian residential apartment
communities, located in Alberta and Ontario, and 30 U.S. low-rise and mid-rise,
garden-style apartment communities located in Colorado, Texas, Louisiana,
Illinois, Georgia, Florida, North Carolina, Virginia and Maryland consisting of
approximately 13,000 residential suites. </p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong>About Morguard Corporation</strong><br>
Morguard Corporation is
a major North American real estate company. It has extensive retail,
office, industrial, multi–suite residential, and hotel holdings owned directly,
or through its investment in Morguard REIT (TSX: MRT.UN), Morguard North
American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH).
Morguard also provides real estate management services to institutional and
other investors. Morguard's owned and managed portfolio of assets is valued at
$21.9 billion.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>For more information, please
visit <a href="/" target="_blank">www.morguard.com</a>
or follow us on <a href="https://ca.linkedin.com/company/morguard" target="_blank">LinkedIn</a>.</p><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C5897&Transmission_Id=201708181147CANADANWCANADAPR_C5897&DateId=20170818" border="0" alt="" style="border-width:0px;margin:5px;width:1px;" /></p><font color="#000000" face="Times New Roman" size="3">
</font><p>For further information: K. Rai
Sahi, Chairman and Chief Executive Officer, 905-281-3800; Robert D. Wright,
Chief Financial Officer of the REIT, 905-281-3800, Paul Miatello, Chief
Financial Officer of the Company, 905-281-3800 or email <a href="mailto:corporatemarketing@morguard.com">corporatemarketing@morguard.com</a></p><font color="#000000" face="Times New Roman" size="3">
</font> | https://www.morguard.com/news-knowledge/posts/mrg-mrc-complete-fenestra-acquisition | | |
| Morguard Acquires Argus Corporate Centre, Premier Class A Office Property in Oakville, ON | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#14ddfd02-772e-4184-813f-3edbb2e94651;L0|#014ddfd02-772e-4184-813f-3edbb2e94651|Morguard Corporation;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-18T04:00:00Z | <font color="#000000" face="Times New Roman" size="3">
</font><p>Morguard Corporation
("Morguard") (TSX: MRC), a fully integrated North American real
estate company, announced today that the company has purchased the Argus
Corporate Centre, a five-storey Class A suburban office building located at 586
Argus Road in Oakville, ON. The acquisition was completed for a purchase price
of $18.5 million, excluding taxes and transaction costs.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>"An excellent location and
a solid existing tenant base make the Argus Corporate Centre a valuable
acquisition for Morguard," said K. Rai Sahi, Chairman and Chief Executive
Officer of Morguard. "This acquisition supports our long-term strategy of
investing in diversified, high-quality assets in North America that will
provide a steady cash flow and a solid return on investment."</p><font color="#000000" face="Times New Roman" size="3">
</font><p>The property is conveniently
located within 200 meters of the Oakville GO and VIA Rail transit hub and
offers easy access to the QEW/403, 410, 407 and 401 highways. With high visual
exposure to the QEW, the property also provides excellent signage and promotional
opportunities for tenants. </p><font color="#000000" face="Times New Roman" size="3">
</font><p>The Argus Corporate Centre is
located in the heart of Midtown Oakville, a designated urban growth centre
under the development plan of the Province of Ontario. The City of Oakville is
targeting residential and commercial intensification as well as significant
transit and infrastructure investment in the neighbourhood immediately
surrounding the property. Under the plan, the Argus Corporate Centre will be
re-zoned to have the highest commercial density within the development area.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>"Investment from the City
of Oakville and the Province of Ontario in the infrastructure and transit
surrounding the property makes the Argus Corporate Centre a key strategic
acquisition," said Sahi. "The property's central location within the
Midtown Oakville development zone provides excellent long-term growth and
development potential for Morguard." </p><font color="#000000" face="Times New Roman" size="3">
</font><p>The 74,600 square foot building
is currently 100% occupied by seven tenants in diverse industries including
video game development, independent medical services, software development and
legal services. The proposed residential intensification and infrastructure
improvements planned as part of the Midtown Oakville development, as well as
the proximity to Sheridan College, will continue to make the property highly
attractive to tenants.</p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong>About </strong><strong>Morguard </strong><br>
Morguard Corporation is
a major North American real estate company. It has extensive retail,
office, industrial, multi–suite residential, and hotel holdings owned directly,
or through its investment in Morguard REIT (TSX: MRT.UN), Morguard North
American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH).
Morguard also provides real estate management services to institutional and
other investors. Morguard's owned and managed portfolio of assets is valued at
$21.9 billion.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>For more information, please
visit <a href="/" target="_blank">www.morguard.com</a>
or follow us on <a href="https://ca.linkedin.com/company/morguard" target="_blank">LinkedIn</a>.</p><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C3880&Transmission_Id=201708181308CANADANWCANADAPR_C3880&DateId=20170818" border="0" alt="" style="border-width:0px;margin:5px;width:1px;" /></p><font color="#000000" face="Times New Roman" size="3">
</font><p>For further information: K. Rai
Sahi, Chairman and Chief Executive Officer, 905-281-3800; Paul Miatello, Chief
Financial Officer, 905-281-3800 or email <a href="mailto:corporatemarketing@morguard.com">corporatemarketing@morguard.com</a></p><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><p style="margin:0in 0in 0pt;"><span><font color="#000000" face="Times New Roman" size="3"><img src="http://emailalerts.dvcotechnology.com/wf/open?upn=5urIpOjhy1IYSWc-2BhTBnw-2BwHWoUdWO8PMcP0l4Q1rOc1WtEcLnzVXT8eOMWF63HEcgoi4C5ss6EAmeboIFlUmUUl-2BTzPL7dxJRjH4l-2Bsl6fQ4RJsFsbWzQ4Gtx8JjjTeeGrTam30jFeKC3HocUQHeaeJu5L3zHOhLx5nPByqLK61XYL54oDxHy07ArG-2BGh78D01MA-2BG1AqgYEF9etywoTnBig-2B19JMkKMux-2FsK9rR1Q03GKcE3IMjOPPfaKM9sf26yKlrZQkYq5L3Kqg1-2BBhUg-3D-3D" border="0" alt="" style="border-width:0in;margin:5px;padding:0in;width:1px;" /></font></span></p><font color="#000000" face="Times New Roman" size="3">
</font> | https://www.morguard.com/news-knowledge/posts/morguard-acquires-arguscorporatecentre | | |
| Morguard North American Residential REIT Declares August 2017 Distribution of $0.05333 per Unit | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#a9eac8ae-d456-40d5-af28-dc36ae543995;L0|#0a9eac8ae-d456-40d5-af28-dc36ae543995|Morguard North American Residential REIT;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-15T04:00:00Z | <font color="#000000" face="Times New Roman" size="3">
</font><p>Morguard North American
Residential Real Estate Investment Trust (the "REIT") (TSX: MRG.UN)
today announced that it has declared a distribution of $0.05333 per unit for
the month of August 2017. The distribution will be payable on September
15, 2017 to unitholders of record as at August 31, 2017.</p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong>About Morguard North
American Residential REIT</strong></p><font color="#000000" face="Times New Roman" size="3">
</font><p>The REIT is an unincorporated, open-ended
real estate investment trust which owns, through a limited partnership,
interests in a portfolio of 16 Canadian residential apartment communities,
located in Alberta and Ontario, and 29 U.S. low-rise and mid-rise, garden-style
apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia,
Florida, North Carolina and Virginia consisting of nearly 13,000 residential
suites.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>For more information, please
visit Morguard.com.</p><font color="#000000" face="Times New Roman" size="3">
</font><p><font color="#000000" face="Times New Roman" size="3">
</font><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C1157&Transmission_Id=201708151000CANADANWCANADAPR_C1157&DateId=20170815" alt="" style="border-width:0px;margin:5px;width:1px;" /></p><font color="#000000" face="Times New Roman" size="3">
</font><p>For further information:
Morguard North American Residential REIT, K. Rai Sahi, Chief Executive Officer,
T 905-281-3800; Robert D. Wright, Chief Financial Officer, T 905-281-3800</p><font color="#000000" face="Times New Roman" size="3">
</font> | https://www.morguard.com/news-knowledge/posts/morguard-narreit-aug2017-distribution | | |
| Morguard Real Estate Investment Trust Declares August 2017 Distribution of 8 Cents per Unit | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#ca7174ac-6e4b-4ce1-b570-12f3c9be8efe;L0|#0ca7174ac-6e4b-4ce1-b570-12f3c9be8efe|Morguard REIT;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-15T04:00:00Z | <font color="#000000" face="Times New Roman" size="3">
</font><p>Morguard Real Estate Investment
Trust (the "Trust") (TSX: MRT.UN) today announced that it has
declared a distribution of 8 cents per unit for the month of August 2017.
The distribution will be payable on September 15, 2017 to unitholders of record
as at August 31, 2017.</p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong>About Morguard Real Estate
Investment Trust</strong></p><font color="#000000" face="Times New Roman" size="3"><strong>
</strong></font><p>The Trust is a closed-end real
estate investment trust, which owns a diversified portfolio of 49 high quality
retail, office and industrial income producing properties in Canada consisting
of approximately 8.7 million square feet of leaseable space.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>For more information, please
visit <a href="/" target="_blank">Morguard.com</a>.</p><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C4872&Transmission_Id=201708151100CANADANWCANADAPR_C4872&DateId=20170815" border="0" alt="" style="border-width:0px;margin:5px;width:1px;" /></p><font color="#000000" face="Times New Roman" size="3">
</font><p>For further information:
Morguard Real Estate Investment Trust: K. Rai Sahi, President and Chief
Executive Officer, T 905-281-4800; Pamela McLean, Vice President and Chief
Financial Officer, T 905-281-4800</p><font color="#000000" face="Times New Roman" size="3">
</font> | https://www.morguard.com/news-knowledge/posts/morguard-reit-aug2017-distribution | | |
| Morguard Corporation Announces 2017 Second Quarter Results and Regular Eligible Dividend | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#14ddfd02-772e-4184-813f-3edbb2e94651;L0|#014ddfd02-772e-4184-813f-3edbb2e94651|Morguard Corporation;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-09T04:00:00Z | <p>Morguard Corporation ("Morguard" or the "Company") (TSX:MRC) today announced its financial results for the three and six months ended June 30, 2017.</p><p><strong>Second Quarter Reporting Highlights:</strong></p><ul style="list-style-type:disc;"><li>Total revenue increased by $48.0 million to $275.7 million for the three months ended June 30, 2017, compared to $227.7 million for the same period in 2016.</li><li>Net operating income ("NOI") increased by $17.0 million, or 14.5%, to $134.7 million for the three months ended June 30, 2017, compared to $117.7 million for the same period in 2016, primarily due to the consolidation of Temple commencing on January 1, 2017.</li><li>Funds from operations ("FFO") decreased by $5.6 million to $53.4 million, or $4.49 per share, for the three months ended June 30, 2017, compared to $59.0 million, or $4.94 per share, for the same period in 2016, representing a 9.4% decrease. </li><li>Normalized FFO increased by $7.5 million to $52.3 million for the three months ended June 30, 2017, compared to $44.8 million for the same period in 2016, representing a 16.8% increase.</li><li>Shareholders' equity per common share (excluding non-controlling interest) increased to $251.04 compared to $239.98 as at December 31, 2016.</li><li>On April 6, 2017, the Company acquired an office property located in Oakville, Ontario for a purchase price of $7.1 million, including closing costs.</li><li>On May 15, 2017, the Company acquired a newly-constructed property comprising 60 rental townhomes located in Toronto, Ontario, for a purchase price of $16.7 million, including closing costs. </li><li>Redeemed the remaining $33.1 million Temple Series D convertible debentures on maturity at June 30, 2017.</li></ul><p><strong>Financial Highlights</strong></p><table width="100%" class="ms-rteTable-0" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;height:34px;"></td><td class="ms-rteTableOddCol-0" style="width:36px;height:34px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;height:34px;"><strong>Three months ended</strong><br><strong> June 30</strong></td><td class="ms-rteTableOddCol-0" style="width:16.66%;height:34px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;height:34px;"><strong>Six months ended </strong><br><strong>June 30</strong></td><td class="ms-rteTableOddCol-0" style="width:16.66%;height:34px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;"><strong>(in thousands of dollars, except per common share)</strong></td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>2017</strong></td><td class="ms-rteTableOddCol-0">2016</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>2017</strong></td><td class="ms-rteTableOddCol-0">2016</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Revenue from real estate</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$194,422</strong></td><td class="ms-rteTableOddCol-0">$191,847</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$390,940</strong></td><td class="ms-rteTableOddCol-0">$387,661</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Revenue from hotel properties</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>62,142</strong></td><td class="ms-rteTableOddCol-0">17,400</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>114,397</strong></td><td class="ms-rteTableOddCol-0">31,224</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Management and advisory fees</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>15,368</strong></td><td class="ms-rteTableOddCol-0">14,390</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>34,332</strong></td><td class="ms-rteTableOddCol-0">34,584</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Interest and other income</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>2,570</strong></td><td class="ms-rteTableOddCol-0">2,258</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>4,530</strong></td><td class="ms-rteTableOddCol-0">3,269</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Sales of product and land</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>1,198</strong></td><td class="ms-rteTableOddCol-0">1,784</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>2,440</strong></td><td class="ms-rteTableOddCol-0">3,059</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;"><strong>Total revenues</strong></td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$275,700</strong></td><td class="ms-rteTableOddCol-0">$227,679</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$546,639</strong></td><td class="ms-rteTableOddCol-0">$459,797</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;height:34px;"></td><td class="ms-rteTableOddCol-0" style="width:36px;height:34px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;height:34px;"></td><td class="ms-rteTableOddCol-0" style="height:34px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;height:34px;"></td><td class="ms-rteTableOddCol-0" style="height:34px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Revenue from real estate properties</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$194,422</strong></td><td class="ms-rteTableOddCol-0">$191,847</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$390,940</strong></td><td class="ms-rteTableOddCol-0">$387,661</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Revenue from hotel properties</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>62,142</strong></td><td class="ms-rteTableOddCol-0">17,400</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>114,397</strong></td><td class="ms-rteTableOddCol-0">31,224</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Property operating expenses</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>(78,208)</strong></td><td class="ms-rteTableOddCol-0">(78,490)</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>(183,978)</strong></td><td class="ms-rteTableOddCol-0">(183,410)</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Hotel operating expenses</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>(43,619)</strong></td><td class="ms-rteTableOddCol-0">(13,082)</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>(85,529)</strong></td><td class="ms-rteTableOddCol-0">(24,997)</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;"><strong>Net operating income</strong></td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$134,737</strong></td><td class="ms-rteTableOddCol-0">$117,675</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$235,830</strong></td><td class="ms-rteTableOddCol-0">$210,478</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;"></td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"></td><td class="ms-rteTableOddCol-0"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Funds from operations</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$53,427</strong></td><td class="ms-rteTableOddCol-0">$58,992</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$101,028</strong></td><td class="ms-rteTableOddCol-0">$106,670</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">FFO per common share – basic and diluted</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$4.49</strong></td><td class="ms-rteTableOddCol-0">$4.94</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$8.48</strong></td><td class="ms-rteTableOddCol-0">$8.92</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;"></td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"></td><td class="ms-rteTableOddCol-0"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Normalized funds from operations</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$52,261</strong></td><td class="ms-rteTableOddCol-0">$44,751</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$99,016</strong></td><td class="ms-rteTableOddCol-0">$91,923</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Normalized FFO per common share – basic and diluted</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$4.39</strong></td><td class="ms-rteTableOddCol-0">$3.75</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$8.31</strong></td><td class="ms-rteTableOddCol-0">$7.69</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;"></td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"></td><td class="ms-rteTableOddCol-0"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Net income attributable to common shareholders</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$151,526</strong></td><td class="ms-rteTableOddCol-0">$81,754</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$167,268</strong></td><td class="ms-rteTableOddCol-0">$74,648</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:416px;">Net income per common share – basic and diluted</td><td class="ms-rteTableOddCol-0" style="width:36px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$12.72</strong></td><td class="ms-rteTableOddCol-0">$6.85</td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$14.04</strong></td><td class="ms-rteTableOddCol-0">$6.25</td></tr></tbody></table><p> </p><p><strong>Net Income</strong></p><p>Net income for the three months ended June 30, 2017, was $179.6 million compared to net income of $93.2 million in 2016. The increase in net income of $86.4 million for the three months ended June 30, 2017, was primarily due to the following:</p><ul style="list-style-type:disc;"><li>An increase in net operating income of $17.0 million, primarily due to the consolidation of Temple; </li><li>An increase in management and advisory fees of $1.0 million; </li><li>An increase in interest expense of $8.5 million, primarily due to the consolidation of Temple; </li><li>A decrease in property management and corporate expense of $0.6 million; </li><li>An increase in amortization of hotel properties of $5.0 million, primarily due to the consolidation of Temple; </li><li>An increase in net fair value gain of $167.8 million, primarily due to a decrease in capitalization rates for Canadian multi-suite residential properties; </li><li>A decrease in equity income from investments of $55.3 million, primarily due to a fair value gain recognized at the Marquee at Block 37 during 2016; </li><li>A decrease in other income of $22.1 million, primarily due to settlement proceeds received from Target Corporation during 2016; and </li><li>An increase in income taxes (current and deferred) of $9.5 million.</li></ul><p><strong>Net Operating Income </strong></p><p>NOI increased by $17.0 million, or 14.5%, during the three months ended June 30, 2017, to $134.7 million, compared to $117.7 million generated in 2016, and is further analyzed by asset type below.</p><table width="100%" class="ms-rteTable-0" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;height:33px;"></td><td class="ms-rteTableOddCol-0" style="width:1px;height:33px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;height:33px;"><strong>Three months ended</strong><br><strong> June 30</strong></td><td class="ms-rteTableOddCol-0" style="width:16.66%;height:33px;"></td><td class="ms-rteTableEvenCol-0" style="width:16.66%;height:33px;"><strong>Six months ended </strong><br><strong>June 30</strong></td><td class="ms-rteTableOddCol-0" style="width:16.66%;height:33px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;"><strong>(in thousands of dollars)</strong></td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>2017</strong></td><td class="ms-rteTableOddCol-0">2016</td><td class="ms-rteTableEvenCol-0"><strong>2017</strong></td><td class="ms-rteTableOddCol-0">2016</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">Multi-suite residential</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$46,505</strong></td><td class="ms-rteTableOddCol-0">$41,624</td><td class="ms-rteTableEvenCol-0"><strong>$90,615</strong></td><td class="ms-rteTableOddCol-0">$83,042</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">Retail</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>32,110</strong></td><td class="ms-rteTableOddCol-0">34,844</td><td class="ms-rteTableEvenCol-0"><strong>64,721</strong></td><td class="ms-rteTableOddCol-0">70,009</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">Office</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>29,751</strong></td><td class="ms-rteTableOddCol-0">29,284</td><td class="ms-rteTableEvenCol-0"><strong>61,638</strong></td><td class="ms-rteTableOddCol-0">60,519</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">Industrial</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>1,619</strong></td><td class="ms-rteTableOddCol-0">1,760</td><td class="ms-rteTableEvenCol-0"><strong>3,223</strong></td><td class="ms-rteTableOddCol-0">3,527</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">Hotels</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>18,523</strong></td><td class="ms-rteTableOddCol-0">4,318</td><td class="ms-rteTableEvenCol-0"><strong>28,868</strong></td><td class="ms-rteTableOddCol-0">6,227</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;"><strong>Adjusted NOI</strong></td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>128,508</strong></td><td class="ms-rteTableOddCol-0">111,830</td><td class="ms-rteTableEvenCol-0"><strong>249,065</strong></td><td class="ms-rteTableOddCol-0">223,324</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">IFRIC 21 adjustment – multi-suite residential</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>4,986</strong></td><td class="ms-rteTableOddCol-0">4,644</td><td class="ms-rteTableEvenCol-0"><strong>(10,646)</strong></td><td class="ms-rteTableOddCol-0">(10,270)</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;">IFRIC 21 adjustment – retail</td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>1,243</strong></td><td class="ms-rteTableOddCol-0">1,201</td><td class="ms-rteTableEvenCol-0"><strong>(2,589)</strong></td><td class="ms-rteTableOddCol-0">(2,576)</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:201px;"><strong>NOI</strong></td><td class="ms-rteTableOddCol-0" style="width:1px;"></td><td class="ms-rteTableEvenCol-0" style="width:19%;"><strong>$134,737</strong></td><td class="ms-rteTableOddCol-0">$117,675</td><td class="ms-rteTableEvenCol-0"><strong>$235,830</strong></td><td class="ms-rteTableOddCol-0">$210,478</td></tr></tbody></table><p> </p><p>Adjusted NOI for the three months ended June 30, 2017, increased by $16.7 million to $128.5 million compared to $111.8 million in 2016 primarily due to the following:</p><ul style="list-style-type:disc;"><li>An increase in the Canadian residential portfolio of $1.6 million primarily from rental rate growth and improved occupancy; </li><li>Additional NOI of $1.4 million generated from The Heathview, a 587 suite luxury residential property located in Toronto, Ontario. During 2016, The Heathview was under initial lease up; </li><li>An increase in the U.S. residential portfolio of US$0.6 million primarily from rental rate growth and improved occupancy; </li><li>A decrease of $2.7 million in Canadian and U.S. retail properties due to lower base rent and recoveries, higher vacancy at two U.S. properties; and temporary vacancy at a property located in Toronto, Ontario; </li><li>An increase in the office portfolio of $0.5 million is primarily due to improved occupancy at a property located in Ottawa, Ontario, partially offset by a decrease of $0.3 million due to the sale of a property during the second quarter of 2016; </li><li>A decrease in the industrial portfolio by $0.1 million is due to increased vacancy at two industrial properties; </li><li>An increase in the hotel portfolio by $14.2 million is mainly due to the consolidation of Temple and stronger average room rates, improved occupancy and reduced costs by the remainder of the portfolio; and </li><li>An increase of $1.3 million due to the change in the U.S. dollar foreign exchange rate.</li></ul><p><strong>Funds From Operations</strong></p><p>For the three months ended June 30, 2017, the Company recorded FFO of $53.4 million ($4.49 per common share), compared to $59.0 million ($4.94 per common share) in 2016. The decrease in FFO of $5.6 million is mainly due to the following: </p><ul style="list-style-type:disc;"><li>Higher Adjusted NOI of $16.7 million, primarily due to the consolidation of Temple; </li><li>Higher management and advisory fees of $1.0 million; </li><li>An increase in equity-accounted FFO of $2.1 million; </li><li>An increase in interest expense of $8.5 million, primarily due to the consolidation of Temple; </li><li>Lower property management and corporate expense of $0.6 million; </li><li>A decrease in current taxes of $1.6 million; </li><li>Lower non-controlling interest's share of FFO of $4.5 million; </li><li>A decrease in non-controlling interest share of Morguard Residential REIT of $1.6 million; and </li><li>A decrease as a result of Target settlement proceeds of $22.5 million recognized in 2016.</li></ul><p>The change in foreign exchange rates had a positive impact on FFO of $0.4 million ($0.04 per common share).</p><p>Normalized FFO for the three months ended June 30, 2017, was $52.3 million, or $4.39 per common share, versus $44.8 million, or $3.75 per common share, for the same period in 2016, which represents an increase of $7.5 million or 16.8%. Normalized FFO is computed as FFO adjusted for the impact of non-recurring items net of tax. </p><p><strong>Financing Activity</strong></p><ul style="list-style-type:disc;"><li>On June 1, 2017, the Company completed the refinancing of a multi-suite residential property located in Atlanta, Georgia, in the amount of $29.1 million (US$21.5 million) at an interest rate of 3.84% for a term of 10 years. </li><li>On June 1, 2017, the Company completed the refinancing of a multi-suite residential property located in Aurora, Colorado, in the amount of $28.8 million (US$21.4 million) at an interest rate of 3.84% for a term of 10 years. </li><li>On June 27, 2017, the Company completed the financing of two hotel properties in the amount of $15.6 million. The loan bears interest at either prime plus 2.50% or bankers' acceptance plus 3.50% for a term of 2 years. </li><li>On June 28, 2017, the company completed the refinancing of a retail property located in Ottawa, Ontario, for $15.0 million at an interest rate of 2.73% for a term of 5 years. </li><li>On June 30, 2017, the Company completed the refinancing of a multi-suite residential property located in Bradenton, Florida, in the amount of $23.4 million (US$18.0 million) at an interest rate of 3.83% for a term of 10 years.</li></ul><p><strong>Subsequent Events</strong></p><p>On July 6, 2017, the Company acquired a property comprising 104 suites and 32,000 square feet of commercial area located in Falls Church, Virginia, for a purchase price of $55.7 million (US$43.0 million), excluding closing costs. The property is subject to a long-term land lease, with a fixed price land purchase option available in 12.25 years. The acquisition was partially financed by a new mortgage of $30.6 million (US$23.7 million) at an interest rate of 4.05% for a term of 12.25 years.</p><p>On July 10, 2017, the Company acquired a property comprising 515 suites and 18,000 square feet of commercial area located in Chicago, Illinois, for a purchase price of $286.8 million (US$222.5 million), excluding closing costs. The acquisition was partially financed by a new mortgage of $157.9 million (US$122.5 million) at an interest rate of 3.49% for a term of eight years.</p><p>On July 12, 2017, the Company sold four U.S properties located in Mobile, Alabama, comprising 1,329 suites, for gross proceeds of $89.7 million (US$70.1 million).</p><p>On August 3, 2017, the Company acquired an office property consisting of 203,500 square feet located in Markham, Ontario, for a purchase price of $66.5 million excluding closing costs.</p><p>The Company entered into a binding agreement to acquire a residential property comprising 492 suites located in Rockville, Maryland, for a purchase price of US$129.0 million, excluding closing costs. The acquisition is expected to close during the third quarter of 2017.</p><p>The Company entered into a binding agreement to acquire an office property consisting of 74,500 square feet located in Oakville, Ontario, for a purchase price of $18.5 million excluding closing costs. The acquisition is expected to close during the third quarter of 2017.</p><p><strong>Third Quarter Dividend</strong></p><p>The Board of Directors of Morguard Corporation announced that the third quarterly, eligible dividend of 2017 in the amount of $0.15 per common share will be paid on September 29, 2017, to shareholders of record at the close of business on September 15, 2017.</p><p>The Company's unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017, along with Management's Discussion and Analysis will be available on the Company's website at <a href="/"><span style="text-decoration:underline;">www.morguard.com</span></a> and will be filed with SEDAR at <a href="http://www.sedar.com/"><span style="text-decoration:underline;">www.sedar.com</span></a>.</p><p><strong>Non-IFRS Measures</strong></p><p>The Company's consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). The following measures, NOI, Adjusted NOI, Comparative NOI, FFO and Normalized FFO (collectively, the "non-IFRS measures") as well as other measures discussed elsewhere in this press release, do not have a standardized meaning prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers in similar or different industries. The Company uses these measures to better assess the Company's underlying performance and financial position and provides these additional measures so that investors may do the same. Details on non-IFRS measures are set out in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2017 and available on the Company's profile on SEDAR at <a href="http://www.sedar.com/"><span style="text-decoration:underline;">www.sedar.com</span></a>.</p><p><strong>About Morguard Corporation</strong></p><p>Morguard Corporation is a real estate company, with total assets owned and under management valued at $21.9 billion. Morguard owns a diversified portfolio of 206 multi-suite residential, retail, office, industrial and hotel properties comprised of 16,888 residential suites, approximately 16.1 million square feet of commercial leasable space and 5,647 hotel rooms. Morguard also currently owns a 53.7% interest in Morguard Real Estate Investment Trust ("Morguard REIT" or "MRT"), a 47.0% effective interest in Morguard North American Residential Real Estate Investment Trust ("Morguard Residential REIT" or "MRG") and a 55.9% effective interest in Temple Hotels Inc. ("Temple"). Morguard also provides advisory and management services to institutional and other investors. For more information, visit the Company's website at <a href="/"><span style="text-decoration:underline;">www.morguard.com</span></a>.</p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C7742&Transmission_Id=201708091645CANADANWCANADAPR_C7742&DateId=20170809" alt="" style="margin:5px;width:1px;" /><p>For further information: Morguard Corporation: K. Rai Sahi, Chief Executive Officer, T 905-281-3800; Paul Miatello, Chief Financial Officer, T 905-281-3800</p> | https://www.morguard.com/news-knowledge/posts/morguard-2017q2-results-dividend | | |
| Morguard Acquires Premier Class A Office Property in Markham, ON | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#14ddfd02-772e-4184-813f-3edbb2e94651;L0|#014ddfd02-772e-4184-813f-3edbb2e94651|Morguard Corporation;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment;GP0|#a6815bd6-f1e0-4f78-9e2c-df61d2a2dc5a;L0|#0a6815bd6-f1e0-4f78-9e2c-df61d2a2dc5a|Office Leasing | 2017-08-03T04:00:00Z | <font color="#000000" face="Times New Roman" size="3">
</font><p>Morguard Corporation
("Morguard") (TSX: MRC) announced today that the real estate company
has purchased 123 Commerce Valley Drive East, an 8-storey Class A suburban
office building in Markham, ON. The acquisition was completed for a purchase
price of $66.5 million, excluding taxes and transaction costs, and encompasses
203,500 square feet on 10.6 acres of land.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>"The property on Commerce
Valley Drive is a premium acquisition for Morguard, combining an excellent
location, a solid existing tenant base and significant opportunity for additional
future development," said K. Rai Sahi, Chairman and Chief Executive
Officer of Morguard. "As one of the most prestigious office buildings in
Markham, this high quality asset will provide a steady cash flow and a solid
return on investment."</p><font color="#000000" face="Times New Roman" size="3">
</font><p>Prominently located between
Leslie Street and Highway 404, just north of Highway 407, the property is
easily accessible by both 400 series highways as well as local transit. The
building is highly visible from the Highway 407/404 interchange, providing
exceptional signage opportunity for anchor tenants.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>The acquisition provides
Morguard with a significant development opportunity for future growth. In-place
zoning, surplus density and abundant existing parking give Morguard the
potential for an additional 270,000 square feet of office space on the
property.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>Completed in 2000, the building
offers tenants modern office interiors with floorplates averaging 27,000 square
feet. 123 Commerce Valley Drive maintains an extensive tenant list from a wide
range of industries, including industrial products, financial services, medical
and software development. This diverse tenant mix results in stable income
performance. The shortage of large contiguous Class A space in Markham will
also provide extra leasing momentum for new commercial development.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>"This premier acquisition
supports Morguard's long-term strategy of investing in diversified,
high-quality assets in North America," said Sahi.</p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong>About Morguard </strong><br>
Morguard Corporation is
a major North American real estate company. It has extensive retail,
office, industrial, multi–suite residential, and hotel holdings owned directly,
or through its investment in Morguard REIT (TSX: MRT.UN), Morguard North
American Residential REIT (TSX: MRG.UN) and Temple Hotels Inc. (TSX:TPH).
Morguard also provides real estate management services to institutional and
other investors. Morguard's owned and managed portfolio of assets is valued at
$21.9 billion.</p><font color="#000000" face="Times New Roman" size="3">
</font><p>For more information, please
visit <a href="/" target="_blank">www.morguard.com</a>
or follow us on <a href="https://ca.linkedin.com/company/morguard" target="_blank">LinkedIn</a>.</p><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C4511&Transmission_Id=201708031512CANADANWCANADAPR_C4511&DateId=20170803" border="0" alt="" style="border-width:0px;margin:5px;width:1px;" /></p><font color="#000000" face="Times New Roman" size="3">
</font><p>For further information: K. Rai
Sahi, Chairman and Chief Executive Officer, 905-281-3800; Paul Miatello, Chief
Financial Officer, 905-281-3800</p><p></p><font color="#000000" face="Times New Roman" size="3">
</font> | https://www.morguard.com/news-knowledge/posts/morguard-acquires-123commercevalleydreast | | |
| Keith Reading, Director of Research, Interviewed on Bloomberg TV Canada | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#20dad1a7-28ca-489f-aa32-2cb829f1eb9b;L0|#020dad1a7-28ca-489f-aa32-2cb829f1eb9b|Real Estate;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-02T04:00:00Z | <p>Keith Reading, Director of Research at Morguard, joins Bloomberg TV Canada’s Mark Bunting to discuss health of the commercial real estate space as Canada’s residential real estate market cools down. </p><p>Watch the video <a href="http://bloombergtv.ca/2017-08-01/news/morguard-health-of-canadian-commercial-real-estate-holds-up/">here</a>.</p> | https://www.morguard.com/news-knowledge/posts/reading-bloombergtv | | |
| Morguard Real Estate Investment Trust Announces 2017 Second Quarter Results | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#ca7174ac-6e4b-4ce1-b570-12f3c9be8efe;L0|#0ca7174ac-6e4b-4ce1-b570-12f3c9be8efe|Morguard REIT;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-02T04:00:00Z | <p>Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its financial results for the three and six months ended June 30, 2017. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS"). </p><p>During the quarter ended June 30, 2017, the Trust completed three development projects, bringing 137,000 square feet of leasable area onstream.</p><p>All three of these projects are now generating revenue.</p><p>At Parkland Mall in Red Deer, Alberta, the project to introduce Goodlife Fitness into the mall completed and brought 87,500 square feet of leasable area back onstream, including 52,000 square feet of new area. As at June 30, 2017, this project was 86.3% occupied.</p><p>At Shoppers Mall in Brandon, Manitoba, the Trust's $7.1 million project to remerchandise the former Safeway space completed and brought 37,500 square feet of leasable area back onstream. As at June 30, 2017, this area was 64.0% occupied with an additional 22.9% committed.</p><p>At The Centre in Saskatoon, Saskatchewan, a portion (12,000 square feet) of the former Target Canada Corporation space is now 100.0% occupied.</p><p>The Trust's fully diluted FFO for the three months ended June 30, 2017, was $26.0 million ($0.38 per unit) versus $38.2 million ($0.57 per unit) for the same three months ended June 30, 2016. This represents a decrease of $12.2 million ($0.19 per unit). Included in the fully diluted FFO for the three months ended June 30, 2016, was the income reported from the Target Corporation settlement of $11.2 million ($0.17 per unit). Adjusting for this one-time activity, the decrease quarter-over-quarter was $1.0 million ($0.02 per unit).</p><p>The new convertible debenture issue in December 2016, impacted the number of diluted units outstanding quarter-over-quarter. The impact of the higher number of diluted units outstanding was to decrease FFO per unit by $0.01. The issue of these convertible debentures also has a negative impact on interest expense, as the Trust received an additional $25.0 million in proceeds. Interest expense related to convertible debentures for the three months ended June 30, 2017, was $2.4 million versus $2.1 million for the same period ended June 30, 2016.</p><p>While the convertible debenture issue negatively impacted interest expense, as a whole, interest expense decreased during the three months ended June 30, 2017, versus the same period ended June 30, 2016, by $0.3 million. This was largely the result of scheduled mortgage amortizations ($0.4 million) and increased capitalized interest ($0.2 million). Overall, interest expense impacted fully diluted FFO by $0.01 per unit.</p><p>Net operating income for the three months ended June 30, 2017, was $39.1 million, versus $40.5 million for the three months ended June 30, 2016. This is a decrease of $1.5 million. While the completion of the Trust's three development projects increased net operating income $0.3 million, net operating income was negatively impacted by the performance of the retail portfolio ($1.6 million). Overall occupancy in the retail portfolio has decreased 3.0% since June 30, 2016. This increased vacancy, combined with rental abatements and base rent, at a number of the Trust's enclosed regional centres, resulted in unfavourable net operating income.</p><p><strong>Net Operating Income, Funds from Operations</strong><br><strong> </strong>This press release and accompanying financial information make reference to net operating income and funds from operations on a total and per unit basis. Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains/(losses). The Trust presents FFO in accordance with the Real Property Association of Canada white paper on funds from operations and adjusted funds from operations for IFRS issued February 2017. FFO is a non-GAAP measure that is widely accepted as a supplemental measure of financial performance for real estate entities. In accordance with such white paper, the Trust defines FFO as net income adjusted for fair value changes on real estate properties and gains/(losses) on the sale of real estate properties.</p><p><strong>Financial Statements and Management's Discussion and Analysis</strong></p><p>The Trust's Q2 2017 Condensed Consolidated Financial Statements and Management's Discussion and Analysis along with its 2016 Annual Report are available on the Trust's website at <a href="/"><span style="text-decoration:underline;">www.morguard.com</span></a> and have been filed with SEDAR at <a href="http://www.sedar.com/"><span style="text-decoration:underline;">www.sedar.com</span></a> </p><p><strong>Conference Call Details:</strong></p><table class="ms-rteTable-0" cellspacing="0" style="width:100%;"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:13%;">Date: </td><td class="ms-rteTableOddCol-0" style="width:50%;">Thursday, August 3, 2017 at 4:00 p.m. (ET)</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:13%;">Conference Call#: </td><td class="ms-rteTableOddCol-0">647-427-7450 or 1-888-231-8191 </td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:13%;">Conference ID#: </td><td class="ms-rteTableOddCol-0">47334681</td></tr></tbody></table><p> </p><p><strong>About Morguard Real Estate Investment Trust</strong></p><p>The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 49 retail, office and industrial income producing properties in Canada with a book value of $3.0 billion and approximately 8.8 million square feet of leasable space.</p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C4393&Transmission_Id=201708021650CANADANWCANADAPR_C4393&DateId=20170802" alt="" style="margin:5px;width:1px;" /><p>For further information: Morguard Real Estate Investment Trust: K. Rai Sahi, President and Chief Executive Officer, T 905-281-4800; Pamela McLean, Chief Financial Officer, T 905-281-4800</p><p></p> | https://www.morguard.com/news-knowledge/posts/morguard-reit-2017q2-results | | |
| Canadian Commercial Investment Property Market Continues to Attract Healthy Demand as Global Economy Heats Up | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#14ddfd02-772e-4184-813f-3edbb2e94651;L0|#014ddfd02-772e-4184-813f-3edbb2e94651|Morguard Corporation;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-01T04:00:00Z | <font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">Despite the strengthening
economy driving a rise in interest rates and less accommodative monetary
policy, investors in Canadian commercial real estate can expect more of the
same strong performance, according to a new report issued by Morguard
Corporation ("Morguard") (TSX: MRC).</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">"After a second
consecutive quarter of stronger than expected economic output, projected growth
for 2017 has now surpassed 2016 levels, with signs pointing to an early winding
down of global monetary stimulus," said Keith Reading, Director of
Research at Morguard. "Despite a perceived eagerness to raise interest
rates, particularly in the United States, low inflation pressure should
continue to act as a buffer against rapid monetary policy change in the near
term."</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">In Canada, early estimates
indicate that commercial real estate investment remained brisk during the
second quarter despite the spectre of rising interest rates. The office sector
is expected to lead the way with $2.0 billion in closing volume, with the
retail and industrial asset classes registering more than $1.0 billion each. </font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">"Demand for Canadian
commercial real estate continues to outpace supply as Canada remains an
attractive, stable option for investment," said Reading. "While we
anticipate that interest rates will continue to rise, the change will occur
gradually and at levels that remain palatable for investors. There will be
little variation in the strength of the Canadian property market in the near
term."</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">The leasing sector also
exhibited progress in the second quarter. Nationwide office vacancy rates
remained low, powered by record-low vacancy in the Toronto downtown submarket
and declining rates in Vancouver and Montreal. Robust office occupancy rates
were tempered slightly by Calgary and Edmonton, who are still battling extended
oil sector weakness. Similar trends were identified in the industrial sector,
with low national vacancy rates despite higher vacancies in the two Alberta
population centres.</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">In the Canadian housing market,
recent policy changes began to produce the desired cooling effect. Total sales
and average pricing both dipped during the quarter but there are indications
that the respite might not last long.</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">"Historically hot markets
like British Columbia, Toronto and Montreal are already showing signs of
reheating despite recent cooldown efforts," said Reading. "Long-term,
however, the cumulative effect of increasing interest rates should act as a
buffer against future housing market imbalance."</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">The Second Quarter Update of
the 2017 Economic Outlook and Market Fundamentals Research Report, released
today by Morguard Corporation, provides a detailed analysis of the 2017 real
estate investment trends to watch in Canada. The full report is available at </font><a href="/" target="_blank"><span style="text-decoration:underline;"><font color="#0000ff" size="3">www.morguard.com</font></span></a><font color="#000000" size="3">.</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">About Morguard Corporation</font></span></strong></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">Morguard Corporation is a major
North American real estate and property management company. It has extensive
retail, office, industrial, hotel and residential holdings owned directly and
through its investment in Morguard Real Estate Investment Trust, Morguard North
American Residential REIT and Temple Hotels Inc. Morguard also provides real
estate management services to institutional and other investors. Morguard's
owned and managed portfolio of assets is valued at $21.9 billion.</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">For more information, please
visit </font><a href="/" target="_blank"><span style="text-decoration:underline;"><font color="#0000ff" size="3">www.morguard.com</font></span></a><font color="#000000" size="3">
or follow us on </font><a href="https://ca.linkedin.com/company/morguard" target="_blank"><span style="text-decoration:underline;"><font color="#0000ff" size="3">LinkedIn</font></span></a><font color="#000000" size="3">.</font></span></p><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3"></font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><strong><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">Forward Looking Statement
Disclaimer</font></span></strong></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">Statements contained herein
that are not based on historical or current fact, including without limitation
statements containing the words "anticipates," "believes,"
"may," "continue," "estimate,"
"expects" and "will" and words of similar expression,
constitute "forward-looking statements." Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, events or developments to be materially
different from any future results, events or developments expressed or implied
by such forward-looking statements. Such factors include, among others, the
following: general economic and business conditions, both nationally and
regionally; changes in business strategy; financing risk; existing governmental
regulations and changes in, or the failure to comply with, governmental regulations;
liability and other claims asserted; and other factors. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. The Publisher does not assume the obligation to
update or revise any forward-looking statements.</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><font color="#000000" face="Times New Roman" size="3">
</font><p style="margin:0in 0in 0pt;"><span style=""><font color="#000000" face="Times New Roman" size="3"><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C6651&Transmission_Id=201708010846CANADANWCANADAPR_C6651&DateId=20170801" border="0" alt="" style="border-width:0px;margin:5px;width:1px;" /></font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3">For further information:
Morguard Corporation, K. Rai Sahi, Chief Executive Officer, T 905-281-3800;
Keith Reading, Director of Research, T 905-281-3800</font></span></p><font color="#000000" face="Times New Roman" size="3">
</font><p><span style="font-family:"arial",sans-serif;"><font color="#000000" size="3"> </font></span></p><font color="#000000" face="Times New Roman" size="3">
</font> | https://www.morguard.com/news-knowledge/posts/economic-outlook-q22017-update | | |
| Morguard North American Residential REIT Announces 2017 Second Quarter Results | GP0|#f6ee19df-6c3a-4081-bd74-668207df6964;L0|#0f6ee19df-6c3a-4081-bd74-668207df6964|Morguard;GTSet|#bbd2a0ca-f457-44e3-b106-3c8139b9e1fa | GP0|#a9eac8ae-d456-40d5-af28-dc36ae543995;L0|#0a9eac8ae-d456-40d5-af28-dc36ae543995|Morguard North American Residential REIT;GTSet|#08f799fb-3b4e-446d-9e79-1b6ddfdd40a2;GP0|#50f77e71-a149-46fd-90c2-9f738ea9df00;L0|#050f77e71-a149-46fd-90c2-9f738ea9df00|Real Estate Investment | 2017-08-01T04:00:00Z | <p>Morguard North American Residential REIT (the "REIT") (TSX: MRG.UN) today announced its financial results for the three and six months ended June 30, 2017.</p><p><strong>Second Quarter Highlights</strong></p><p>On May 15, 2017, the REIT acquired a newly-constructed property comprising 60 rental townhomes located in Toronto, Ontario, for a purchase price of $16.7 million, including closing costs.</p><p>The REIT is reporting performance of:</p><ul style="list-style-type:disc;"><li>Adjusted net operating income ("Adjusted NOI") of $31.0 million for the three months ended June 30, 2017, an increase of $2.8 million, or 10.1% compared to 2016. </li><li>Basic funds from operations ("FFO") of $16.3 million for the three months ended June 30, 2017, an increase of $2.4 million, or 17.4% over the same period in 2016. </li><li>Basic FFO of $0.32 per Unit for the three months ended June 30, 2017, a 6.7% increase as compared to the $0.30 per Unit for the second quarter of 2016. </li><li>FFO payout ratio for the three months ended June 30, 2017 of 49.9%. </li><li>During second quarter, the REIT completed $81.3 million (US$60.9 million) of refinancing secured by three residential properties located in Colorado, Georgia and Florida, at a weighted average interest rate of 3.84% and a weighted average term of 10 years. The refinancing resulted in $26.6 million (US$20.0 million) of additional mortgage proceeds on the maturing loans which had a weighted average interest rate of 4.46%. The REIT has now completed financing arrangements on all mortgages scheduled to mature during 2017.</li></ul><p><strong>Financial and Operational Highlights</strong></p><p><strong></strong></p><table class="ms-rteTable-0" cellspacing="0" style="width:93%;height:1532px;"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;text-align:right;"><strong>As at</strong></td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>June 30, 2017</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">December 31, 2016</td><td class="ms-rteTableOddCol-0" style="width:24%;">June 30, 2016</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"><strong>(In thousands of dollars, except as noted otherwise)</strong></td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong></strong><br></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"><br></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"><strong>Operational Information</strong></td><td class="ms-rteTableOddCol-0" style="width:16%;"></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;height:3px;">Number of properties</td><td class="ms-rteTableOddCol-0" style="width:16%;height:3px;"><strong>47</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;height:3px;">46</td><td class="ms-rteTableOddCol-0" style="width:24%;height:3px;">46</td><td class="ms-rteTableEvenCol-0" style="width:114px;height:3px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Total suites</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>13,532</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">13,472</td><td class="ms-rteTableOddCol-0" style="width:24%;">13,472</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Occupancy percentage</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>95.7%</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">95.2%</td><td class="ms-rteTableOddCol-0" style="width:24%;">95.6%</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Average monthly rent - Canada (in actual dollars)</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$1,308</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$1,296</td><td class="ms-rteTableOddCol-0" style="width:24%;">$1,279</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Average monthly rent - U.S. (in actual U.S. dollars)</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>US$1,052</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">US$1,038</td><td class="ms-rteTableOddCol-0" style="width:24%;">US$1,020</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"><strong>Summary of Financial Information</strong></td><td class="ms-rteTableOddCol-0" style="width:16%;"></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Gross book value</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$2,354,943</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$2,285,727</td><td class="ms-rteTableOddCol-0" style="width:24%;">$2,151,617</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Indebtedness</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$1,172,213</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$1,237,613</td><td class="ms-rteTableOddCol-0" style="width:24%;">$1,196,995</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Indebtedness to gross book value ratio</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>50%</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">54%</td><td class="ms-rteTableOddCol-0" style="width:24%;">56%</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"><p>Weighted average mortgage interest rate</p><p> </p></td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>3.5%</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">3.6%</td><td class="ms-rteTableOddCol-0" style="width:24%;">3.7%</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Weighted average term to maturity on mortgages payable (years)</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>6.1</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">5.7</td><td class="ms-rteTableOddCol-0" style="width:24%;">5.3</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Exchange rates - Canadian dollar to United States dollar</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$0.77</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$0.74</td><td class="ms-rteTableOddCol-0" style="width:24%;">$0.77</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Exchange rates - United States dollar to Canadian dollar</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$1.30</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$1.34</td><td class="ms-rteTableOddCol-0" style="width:24%;">$1.29</td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"></td><td class="ms-rteTableOddCol-0" style="width:16%;"></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"></td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>Three months ended</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>Six months ended</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"></td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong> June 30</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong> June 30</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"><strong>(In thousands of dollars, except per Unit amounts)</strong></td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>2017</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">2016</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>2017</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">2016</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;"><strong>Summary of Financial Information</strong></td><td class="ms-rteTableOddCol-0" style="width:16%;"></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Interest coverage ratio</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>2.38</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">2.00</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>2.32</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">1.99</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Indebtedness coverage ratio</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>1.64</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">1.36</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>1.58</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">1.36</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Revenue from income producing properties</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$57,201</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$53,586</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$112,822</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$107,940</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">NOI</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$35,165</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$31,988</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$52,082</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$48,260</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Adjusted NOI</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$31,021</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$28,185</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$60,447</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$56,667</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Same Property Adjusted NOI</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$31,039</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$28,185</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$58,775</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$55,545</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Net operating margin</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>54%</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">53%</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>54%</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">52%</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">FFO - basic</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$16,305</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$13,891</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$31,582</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$27,910</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">FFO - diluted</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$17,001</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$14,587</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$32,966</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$29,300</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">FFO per Unit - basic</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$0.32</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$0.30</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$0.62</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$0.60</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">FFO per Unit - diluted</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$0.31</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$0.29</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$0.60</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$0.58</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Distributions per Unit</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$0.16</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$0.15</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$0.32</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$0.30</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">FFO payout ratio</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>49.9%</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">50.2%</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>51.4%</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">50.0%</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Weighted average number of Units outstanding (in thousands):</td><td class="ms-rteTableOddCol-0" style="width:16%;"></td><td class="ms-rteTableEvenCol-0" style="width:21%;"></td><td class="ms-rteTableOddCol-0" style="width:24%;"></td><td class="ms-rteTableEvenCol-0" style="width:114px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Basic</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>50,894</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">46,498</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>50,698</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">46,513</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Diluted</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>54,765</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">50,369</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>54,569</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">50,384</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Average exchange rates - Canadian dollar to United States dollar</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$0.74</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$0.78</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$0.75</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$0.75</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:47%;">Average exchange rates - United States dollar to Canadian dollar</td><td class="ms-rteTableOddCol-0" style="width:16%;"><strong>$1.34</strong></td><td class="ms-rteTableEvenCol-0" style="width:21%;">$1.29</td><td class="ms-rteTableOddCol-0" style="width:24%;"><strong>$1.33</strong></td><td class="ms-rteTableEvenCol-0" style="width:114px;">$1.33</td></tr></tbody></table><p> </p><p><strong>Net Operating Income</strong></p><table class="ms-rteTable-0" cellspacing="0" style="width:92%;"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"></td><td class="ms-rteTableOddCol-0" style="width:16.66%;"><strong>Three months ended</strong></td><td class="ms-rteTableEvenCol-0" style="width:16.66%;"></td><td class="ms-rteTableOddCol-0" style="width:16.66%;"><strong>Six months ended</strong></td><td class="ms-rteTableEvenCol-0" style="width:16.66%;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"></td><td class="ms-rteTableOddCol-0"><strong> June 30</strong></td><td class="ms-rteTableEvenCol-0"></td><td class="ms-rteTableOddCol-0"><strong> June 30</strong></td><td class="ms-rteTableEvenCol-0"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"><strong>(In thousands of dollars)</strong></td><td class="ms-rteTableOddCol-0"><strong>2017</strong></td><td class="ms-rteTableEvenCol-0">2016</td><td class="ms-rteTableOddCol-0"><strong>2017</strong></td><td class="ms-rteTableEvenCol-0">2016</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"><strong>Revenue from income producing properties</strong></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Same Property</td><td class="ms-rteTableOddCol-0"><strong>$57,201</strong></td><td class="ms-rteTableEvenCol-0">$53,586</td><td class="ms-rteTableOddCol-0"><strong>$109,736</strong></td><td class="ms-rteTableEvenCol-0">$105,565</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Acquisitions</td><td class="ms-rteTableOddCol-0"><strong>—</strong></td><td class="ms-rteTableEvenCol-0">—</td><td class="ms-rteTableOddCol-0"><strong>3,086</strong></td><td class="ms-rteTableEvenCol-0">2,375</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Total revenue from income producing properties</td><td class="ms-rteTableOddCol-0"><strong>57,201</strong></td><td class="ms-rteTableEvenCol-0">53,586</td><td class="ms-rteTableOddCol-0"><strong>112,822</strong></td><td class="ms-rteTableEvenCol-0">107,940</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"><strong>Property operating expenses</strong></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Same Property</td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Operating costs</td><td class="ms-rteTableOddCol-0"><strong>14,891</strong></td><td class="ms-rteTableEvenCol-0">14,748</td><td class="ms-rteTableOddCol-0"><strong>28,563</strong></td><td class="ms-rteTableEvenCol-0">28,532</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Realty taxes</td><td class="ms-rteTableOddCol-0"><strong>2,674</strong></td><td class="ms-rteTableEvenCol-0">2,477</td><td class="ms-rteTableOddCol-0"><strong>21,389</strong></td><td class="ms-rteTableEvenCol-0">20,554</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Utilities</td><td class="ms-rteTableOddCol-0"><strong>4,453</strong></td><td class="ms-rteTableEvenCol-0">4,373</td><td class="ms-rteTableOddCol-0"><strong>9,374</strong></td><td class="ms-rteTableEvenCol-0">9,341</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Same Property</td><td class="ms-rteTableOddCol-0"><strong>22,018</strong></td><td class="ms-rteTableEvenCol-0">21,598</td><td class="ms-rteTableOddCol-0"><strong>59,326</strong></td><td class="ms-rteTableEvenCol-0">58,427</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Acquisitions</td><td class="ms-rteTableOddCol-0"><strong>18</strong></td><td class="ms-rteTableEvenCol-0">—</td><td class="ms-rteTableOddCol-0"><strong>1,414</strong></td><td class="ms-rteTableEvenCol-0">1,253</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Total property operating expenses</td><td class="ms-rteTableOddCol-0"><strong>22,036</strong></td><td class="ms-rteTableEvenCol-0">21,598</td><td class="ms-rteTableOddCol-0"><strong>60,740</strong></td><td class="ms-rteTableEvenCol-0">59,680</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"><strong>NOI</strong></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td><td class="ms-rteTableOddCol-0"></td><td class="ms-rteTableEvenCol-0"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Same Property</td><td class="ms-rteTableOddCol-0"><strong>35,183</strong></td><td class="ms-rteTableEvenCol-0">31,988</td><td class="ms-rteTableOddCol-0"><strong>50,410</strong></td><td class="ms-rteTableEvenCol-0">47,138</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Acquisitions</td><td class="ms-rteTableOddCol-0"><strong>(18)</strong></td><td class="ms-rteTableEvenCol-0">—</td><td class="ms-rteTableOddCol-0"><strong>1,672</strong></td><td class="ms-rteTableEvenCol-0">1,122</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"><strong>Total NOI</strong></td><td class="ms-rteTableOddCol-0"><strong>35,165</strong></td><td class="ms-rteTableEvenCol-0">31,988</td><td class="ms-rteTableOddCol-0"><strong>52,082</strong></td><td class="ms-rteTableEvenCol-0">48,260</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;">Realty taxes accounted for under IFRIC 21</td><td class="ms-rteTableOddCol-0"><strong>(4,144)</strong></td><td class="ms-rteTableEvenCol-0">(3,803)</td><td class="ms-rteTableOddCol-0"><strong>8,365</strong></td><td class="ms-rteTableEvenCol-0">8,407</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:251px;"><strong>Adjusted NOI</strong></td><td class="ms-rteTableOddCol-0"><strong>$31,021</strong></td><td class="ms-rteTableEvenCol-0">$28,185</td><td class="ms-rteTableOddCol-0"><strong>$60,447</strong></td><td class="ms-rteTableEvenCol-0">$56,667</td></tr></tbody></table><p> </p><p>For the three months ended June 30, 2017, consolidated Adjusted NOI increased by $2.8 million (or 10.1%) to $31.0 million, compared to $28.2 million in 2016. The increase was due to higher Adjusted NOI in Canada and the U.S. of $1.1 million (or 9.7%) and US$0.7 million (or 5.7%), respectively, and the change in the U.S. foreign exchange rate, which increased Adjusted NOI by $1.0 million. The increase in Adjusted NOI (in local currency) was attributable to higher rental revenue and improved occupancy in Canada and the U.S. as well as lower overall operating expenses, as a decrease in operating expenses in Canada was offset by a slight increase in the U.S.</p><p>For the six months ended June 30, 2017, consolidated Adjusted NOI increased by $3.8 million (or 6.7%) to $60.5 million, compared to $56.7 million in 2016. The increase was due to higher Adjusted NOI in Canada and the U.S. of $1.7 million (or 8.0%) and US$1.5 million (or 5.5%), respectively, partially offset by the change in the U.S. foreign exchange rate, which increased Adjusted NOI by $0.6 million. The increase in Adjusted NOI was attributable to the full period impact of the 160 Chapel acquisition completed during the three months ended March 31, 2016 and an increase in Same Property NOI in Canada and the U.S. The increase in Same Property NOI was mainly driven by higher rental revenue and improved occupancy, partially offset by higher realty taxes.</p><p><strong>Funds from Operations</strong></p><table class="ms-rteTable-0" cellspacing="0" style="width:100%;"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;"></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>Three months ended</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;"></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>Six months ended</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;"></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong> June 30</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;"></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong> June 30</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;"></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;"><strong>(In thousands of dollars, except per Unit amounts)</strong></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>2017</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">2016</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>2017</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">2016</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;height:54px;"><strong>Net income (loss) for the period attributable to unitholders</strong></td><td class="ms-rteTableOddCol-0" style="width:62px;height:54px;"><strong>$59,351</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;height:54px;">$5,262</td><td class="ms-rteTableOddCol-0" style="width:62px;height:54px;"><strong>$61,379</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;height:54px;">($19,183)</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Add/(deduct):</td><td class="ms-rteTableOddCol-0" style="width:62px;"></td><td class="ms-rteTableEvenCol-0" style="width:62px;"></td><td class="ms-rteTableOddCol-0" style="width:62px;"></td><td class="ms-rteTableEvenCol-0" style="width:57px;"></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Realty taxes accounted for under IFRIC 21</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>(3,935)</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">(3,635)</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>7,957</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">8,039</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Fair value loss on conversion option on the Debentures</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>511</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">104</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>1,390</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">228</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Distributions on Class B LP Units recorded as interest expense</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>2,756</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">2,584</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>5,512</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">5,167</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Foreign exchange loss</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>599</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">104</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>789</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">1,350</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Fair value gain on income producing properties, net</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>(61,778)</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">(8,773)</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>(85,129)</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">(14,962)</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Non-controlling interests' share of fair value gain on income producing properties</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>1,590</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">179</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>2,285</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">490</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Fair value loss on Class B LP Units</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>9,472</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">10,850</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>29,796</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">31,863</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Deferred income tax provision</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>7,739</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">7,216</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>7,603</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">14,918</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;"><strong>FFO – basic</strong></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$16,305</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">$13,891</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$31,582</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">$27,910</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">Interest expense on the Debentures</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>696</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">696</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>1,384</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">1,390</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;"><strong>FFO – diluted</strong></td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$17,001</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">$14,587</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$32,966</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">$29,300</td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">FFO per Unit – basic</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$0.32</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">$0.30</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$0.62</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">$0.60</td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0" style="width:202px;">FFO per Unit – diluted </td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$0.31</strong></td><td class="ms-rteTableEvenCol-0" style="width:62px;">$0.29</td><td class="ms-rteTableOddCol-0" style="width:62px;"><strong>$0.60</strong></td><td class="ms-rteTableEvenCol-0" style="width:57px;">$0.58</td></tr></tbody></table><p> </p><p>Basic FFO for the three months ended June 30, 2017, increased by $2.4 million, or 17.4%, to $16.3 million ($0.32 per Unit), compared to $13.9 million ($0.30 per Unit) in 2016. The increase is mainly due to higher Adjusted NOI of $2.8 million and a decrease in interest expense of $0.1 million (excluding distributions on Class B LP Units and fair value adjustments), partially offset by an increase in trust expenses of $0.5 million. The change in foreign exchange rates had a positive impact on FFO of $0.4 million.</p><p>Basic FFO for the six months ended June 30, 2017, increased by $3.7 million, or 13.2%, to $31.6 million ($0.62 per Unit), compared to $27.9 million ($0.60 per Unit) in 2016. The increase is mainly due to higher Adjusted NOI of $3.8 million and a decrease in interest expense of $0.4 million (excluding distributions on Class B LP Units and fair value adjustments), partially offset by an increase in trust expenses of $0.6 million. The change in foreign exchange rates had a positive impact on FFO of $0.1 million.</p><p>Excluding the impact of the offering, basic FFO per unit amounted to $0.33 and $0.65 per Unit for the three and six months ended June 30, 2017, respectively. The impact includes the dilution from additional Units of the January 9, 2017 offering offset by interest savings on the repayment of mortgages on February 1, 2017.</p><p><strong>Subsequent Events</strong></p><p>On July 6, 2017, the REIT acquired a property comprising 104 suites and 32,000 square feet of commercial area located in Falls Church, Virginia, for a purchase price of $55.7 million (US$43.0 million), excluding closing costs. The property is subject to a long-term land lease, with a fixed price land purchase option available in 12.25 years. The acquisition was partially financed by a new mortgage of $30.6 million (US$23.7 million) at an interest rate of 4.05% for a term of 12.25 years.</p><p>On July 10, 2017, the REIT acquired a property comprising 515 suites and 18,000 square feet of commercial area located in Chicago, Illinois, for a purchase price of $286.8 million (US$222.5 million), excluding closing costs. The acquisition was partially financed by a new mortgage of $157.9 million (US$122.5 million) at an interest rate of 3.49% for a term of eight years.</p><p>The REIT entered into a binding agreement to acquire a property comprising 492 suites located in Rockville, Maryland, for a purchase price of US$129.0 million, excluding closing costs. The acquisition is expected to close during the third quarter of 2017.</p><p>On July 12, 2017, the REIT sold four U.S properties located in Mobile, Alabama, comprising 1,329 suites, for gross proceeds of $89.7 million (US$70.1 million).</p><p>The REIT's unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017, along with the Management's Discussion and Analysis will be available on the REIT's website at <a href="/"><span style="text-decoration:underline;">www.morguard.com</span></a> and will be filed with SEDAR at <a href="http://www.sedar.com/"><span style="text-decoration:underline;">www.sedar.com</span></a>.</p><p><strong>Non-IFRS Measures</strong></p><p>The REIT's consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). The following measures, NOI, Adjusted NOI, Same Property NOI, FFO, indebtedness, gross book value, indebtedness to gross book value ratio, interest coverage ratio and indebtedness coverage ratio (collectively, the "non-IFRS measures") as well as other measures discussed elsewhere in this press release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. The REIT uses these measures to better assess the REIT's underlying performance and financial position and provides these additional measures so that investors may do the same. Details on non-IFRS measures are set out in the REIT's Management's Discussion and Analysis for the three and six months ended June 30, 2017 and available on the REIT's profile on SEDAR at <a href="http://www.sedar.com/"><span style="text-decoration:underline;">www.sedar.com</span></a>.</p><p><strong>Conference Call Details</strong></p><p>Morguard North American Residential Real Estate Investment Trust will hold a conference call on <strong>Thursday, August 3, 2017 </strong>at <strong>3:00 p.m. (ET)</strong> to discuss the financial results for the quarter ended June 30, 2017 and 2016. To participate in the conference call, please dial <strong>647-427-7450 or 1-888-231-8191. </strong>Please quote <strong>conference ID # 47320330</strong>.</p><p><strong>About Morguard North American Residential REIT</strong></p><p>The REIT is an unincorporated, open-ended real estate investment trust established under and governed by the laws of the Province of Ontario. The Units of the REIT trade on the Toronto Stock Exchange under the ticker symbol MRG.UN. With a strategic focus on the acquisition of high-quality multi-suite residential properties in Canada and the United States, the REIT maximizes long-term Unit value through active asset and property management. Its portfolio consists of 12,822 residential suites (as of August 1, 2017) located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina and Virginia with an appraised value of approximately $2.3 billion at June 30, 2017. For more information, visit the REIT's website at <a href="/"><span style="text-decoration:underline;">www.morguard.com</span></a>.</p><p>SOURCE Morguard North American Residential Real Estate Investment Trust</p><img src="https://rt.newswire.ca/rt.gif?NewsItemId=C3057&Transmission_Id=201708011650CANADANWCANADAPR_C3057&DateId=20170801" alt="" style="margin:5px;width:1px;" /><p>For further information: Morguard North American Residential REIT: K. Rai Sahi, Chief Executive Officer, (905) 281-3800; Robert Wright, Chief Financial Officer, (905) 281-3800</p> | https://www.morguard.com/news-knowledge/posts/morguard-narreit-2017q2-results | | |
