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Morguard Real Estate Investment Trust

Market Cap

CA$390.6m

Last Updated

2021/09/18 22:02 UTC

Data Sources

Company Financials +

Executive Summary

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 47 retail, office and industrial income producing properties in Canada with a book value of $2.6 billion and approximately 8.3 million square feet of leasable space. More Details


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MRT.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MRT.UN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

MRT.UN

0.5%

CA REITs

-0.6%

CA Market


1 Year Return

27.7%

MRT.UN

33.8%

CA REITs

28.9%

CA Market

Return vs Industry: MRT.UN underperformed the Canadian REITs industry which returned 33.8% over the past year.

Return vs Market: MRT.UN underperformed the Canadian Market which returned 29% over the past year.


Shareholder returns

MRT.UNIndustryMarket
7 Day0.5%0.5%-0.6%
30 Day1.5%1.9%2.0%
90 Day-15.2%4.8%2.2%
1 Year36.1%27.7%40.3%33.8%32.8%28.9%
3 Year-37.0%-50.7%31.6%12.7%32.4%19.9%
5 Year-44.5%-62.1%52.4%15.6%52.2%29.7%

Long-Term Price Volatility Vs. Market

How volatile is Morguard 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 Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRT.UN (CA$6.09) is trading below our estimate of fair value (CA$7.74)

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


Price To Earnings Ratio

PE vs Industry: MRT.UN is unprofitable, so we can't compare its PE Ratio to the Canadian REITs industry average.

PE vs Market: MRT.UN is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRT.UN is good value based on its PB Ratio (0.3x) compared to the CA REITs industry average (1.1x).


Future Growth

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

-2.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MRT.UN's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if MRT.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: MRT.UN's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: MRT.UN's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

-68.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRT.UN is currently unprofitable.

Growing Profit Margin: MRT.UN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRT.UN is unprofitable, and losses have increased over the past 5 years at a rate of 68.9% per year.

Accelerating Growth: Unable to compare MRT.UN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRT.UN is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (5.5%).


Return on Equity

High ROE: MRT.UN has a negative Return on Equity (-13.68%), as it is currently unprofitable.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: MRT.UN's short term assets (CA$35.7M) do not cover its short term liabilities (CA$385.1M).

Long Term Liabilities: MRT.UN's short term assets (CA$35.7M) do not cover its long term liabilities (CA$995.7M).


Debt to Equity History and Analysis

Debt Level: MRT.UN's debt to equity ratio (115%) is considered high.

Reducing Debt: MRT.UN's debt to equity ratio has increased from 81% to 115% over the past 5 years.

Debt Coverage: MRT.UN's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: MRT.UN's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRT.UN's dividend (3.94%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: MRT.UN's dividend (3.94%) is low compared to the top 25% of dividend payers in the Canadian market (4.51%).


Stability and Growth of Payments

Stable Dividend: MRT.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: MRT.UN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1144.7%), MRT.UN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRT.UN's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Kuldip Sahi (74 yo)

20.17yrs

Tenure

CA$100,000

Compensation

Mr. Kuldip Rai Sahi, FCPA, FCGA, has been the Chief Executive Officer of Morguard Real Estate Investment Trust since July 31, 2001 and has been its President since October 21, 2005 and has been its Trustee...


CEO Compensation Analysis

Compensation vs Market: Kuldip's total compensation ($USD78.44K) is below average for companies of similar size in the Canadian market ($USD873.80K).

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


Leadership Team

Experienced Management: MRT.UN's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: MRT.UN's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MRT.UN insiders have only sold shares 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 2.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Morguard Real Estate Investment Trust
  • Ticker: MRT.UN
  • Exchange: TSX
  • Founded: 1997
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: CA$390.648m
  • Shares outstanding: 64.15m
  • Website: https://www.morguard.com

Number of Employees


Location

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

Listings


Biography

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 47 retail, office and industrial income producing properties in Canada with a book value of $2.6 billion and ap...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.