TSX:MRG.UN

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Morguard North American Residential Real Estate Investment Trust

Executive Summary

The REIT is an unincorporated, open-ended real estate investment trust established under and governed by the laws of the Province of Ontario.


Snowflake Analysis

Undervalued with acceptable track record.

Share Price & News

How has Morguard North American Residential Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRG.UN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

MRG.UN

2.2%

CA REITs

1.0%

CA Market


1 Year Return

-19.6%

MRG.UN

-18.8%

CA REITs

-2.7%

CA Market

Return vs Industry: MRG.UN matched the Canadian REITs industry which returned -19.7% over the past year.

Return vs Market: MRG.UN underperformed the Canadian Market which returned -3% over the past year.


Shareholder returns

MRG.UNIndustryMarket
7 Day1.3%2.2%1.0%
30 Day10.4%3.2%6.4%
90 Day22.7%12.0%15.5%
1 Year-16.2%-19.6%-14.3%-18.8%0.6%-2.7%
3 Year18.5%4.6%9.4%-7.3%12.4%1.7%
5 Year91.3%53.2%28.7%-3.1%36.3%15.5%

Price Volatility Vs. Market

How volatile is Morguard North American Residential Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Morguard North American Residential Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

35.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRG.UN (CA$15.81) is trading below our estimate of fair value (CA$24.38)

Significantly Below Fair Value: MRG.UN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MRG.UN is good value based on its PE Ratio (4.1x) compared to the CA REITs industry average (7.7x).

PE vs Market: MRG.UN is good value based on its PE Ratio (4.1x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRG.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRG.UN is good value based on its PB Ratio (0.5x) compared to the CA REITs industry average (0.7x).


Next Steps

Future Growth

How is Morguard North American Residential Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

4.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MRG.UN's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MRG.UN's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRG.UN's revenue (4% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: MRG.UN's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MRG.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Morguard North American Residential Real Estate Investment Trust performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRG.UN has a large one-off gain of CA$27.3M impacting its June 30 2020 financial results.

Growing Profit Margin: MRG.UN's current net profit margins (59.3%) are higher than last year (48.4%).


Past Earnings Growth Analysis

Earnings Trend: MRG.UN's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: MRG.UN's earnings growth over the past year (24.1%) is below its 5-year average (27.8% per year).

Earnings vs Industry: MRG.UN earnings growth over the past year (24.1%) exceeded the REITs industry 24%.


Return on Equity

High ROE: MRG.UN's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Morguard North American Residential Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: MRG.UN's short term assets (CA$61.5M) do not cover its short term liabilities (CA$80.5M).

Long Term Liabilities: MRG.UN's short term assets (CA$61.5M) do not cover its long term liabilities (CA$1.7B).


Debt to Equity History and Analysis

Debt Level: MRG.UN's debt to equity ratio (117.9%) is considered high.

Reducing Debt: MRG.UN's debt to equity ratio has reduced from 201.7% to 117.9% over the past 5 years.

Debt Coverage: MRG.UN's debt is not well covered by operating cash flow (4.1%).

Interest Coverage: MRG.UN's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Morguard North American Residential Real Estate Investment Trust current dividend yield, its reliability and sustainability?

4.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRG.UN's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Canadian market (1.76%).

High Dividend: MRG.UN's dividend (4.43%) is low compared to the top 25% of dividend payers in the Canadian market (5.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MRG.UN has been paying a dividend for less than 10 years.

Growing Dividend: MRG.UN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.4%), MRG.UN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRG.UN's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Kuldip Sahi (73 yo)

8.58yrs

Tenure

CA$597,923

Compensation

Mr. Kuldip Rai Sahi, FCPA, FCGA, has been the President and Chief Executive Officer of Morguard Real Estate Investment Trust and Trustee since November 10, 1998 and Chairman, President and Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Kuldip's total compensation ($USD449.51K) is below average for companies of similar size in the Canadian market ($USD1.60M).

Compensation vs Earnings: Kuldip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman & CEO8.58yrsCA$597.92k1.77%
CA$ 15.9m
Christopher Newman
Chief Financial Officer1.75yrsCA$107.46kno data
Beverley Flynn
Senior VP15.83yrsno data0.077%
CA$ 692.0k
Paul Miatello
Senior Vice President2.58yrsno data0.12%
CA$ 1.1m
Angela Sahi
Senior Vice President2.58yrsno data0.026%
CA$ 230.7k
John Talano
Vice President of Operations - USno datano datano data

2.6yrs

Average Tenure

Experienced Management: MRG.UN's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman & CEO8.58yrsCA$597.92k1.77%
CA$ 15.9m
Dino Chiesa
Independent Trustee8.33yrsCA$39.00k0.026%
CA$ 233.0k
Frank Munsters
Independent Trustee8.42yrsCA$43.50k0.026%
CA$ 230.7k
Mel Leiderman
Independent Trustee8.33yrsCA$52.00k0.013%
CA$ 115.3k
Bruce Robertson
Independent Trustee8.42yrsCA$104.17k1.01%
CA$ 9.1m
Avtar Bains
Independent Lead Trustee8.33yrsCA$41.00k0.038%
CA$ 346.0k
William Wallace
Independent Trustee8.33yrsCA$39.00k0.026%
CA$ 230.7k

8.3yrs

Average Tenure

69.5yo

Average Age

Experienced Board: MRG.UN's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Top Shareholders

Company Information

Morguard North American Residential Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morguard North American Residential Real Estate Investment Trust
  • Ticker: MRG.UN
  • Exchange: TSX
  • Founded:
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$899.609m
  • Market Cap: CA$616.629m
  • Shares outstanding: 56.23m
  • Website: https://www.morguard.com

Location

  • Morguard North American Residential Real Estate Investment Trust
  • 55 City Centre Drive
  • Suite 1000
  • Mississauga
  • Ontario
  • L5B 1M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRG.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADApr 2012
MNAR.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDApr 2012

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 23:45
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.