TSX:MRT.UN

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Morguard Real Estate Investment Trust

Executive Summary

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 48 retail, office and industrial income producing properties in Canada with a book value of $2.8 billion and approximately 8.4 million square feet of leasable space.


Snowflake Analysis

Average dividend payer and fair value.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.9%

MRT.UN

-0.4%

CA REITs

1.4%

CA Market


1 Year Return

-57.8%

MRT.UN

-21.4%

CA REITs

-11.3%

CA Market

Return vs Industry: MRT.UN underperformed the Canadian REITs industry which returned -21.4% over the past year.

Return vs Market: MRT.UN underperformed the Canadian Market which returned -11.3% over the past year.


Shareholder returns

MRT.UNIndustryMarket
7 Day-5.9%-0.4%1.4%
30 Day-1.9%0.5%4.2%
90 Day-57.7%-27.7%-9.4%
1 Year-53.6%-57.8%-17.2%-21.4%-8.3%-11.3%
3 Year-56.4%-65.9%-0.2%-15.5%0.04%-9.2%
5 Year-54.9%-69.0%21.8%-8.4%16.7%-0.01%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRT.UN (CA$5.08) is trading below our estimate of fair value (CA$14.56)

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 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 (0.2x) compared to the CA REITs industry average (0.7x).


Next Steps

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?

-1.3%

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 (1.7%).

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 (-1.3% per year).

High Growth Revenue: MRT.UN's revenue is forecast to decline over the next 3 years (-1.3% 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


Next Steps

Past Performance

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

-22.0%

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 -22% 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 (24.2%).


Return on Equity

High ROE: MRT.UN has a negative Return on Equity (-7.37%), as it is currently unprofitable.


Next Steps

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$30.9M) do not cover its short term liabilities (CA$400.1M).

Long Term Liabilities: MRT.UN's short term assets (CA$30.9M) do not cover its long term liabilities (CA$1.0B).


Debt to Equity History and Analysis

Debt Level: MRT.UN's debt to equity ratio (94.3%) is considered high.

Reducing Debt: MRT.UN's debt to equity ratio has increased from 82.9% to 94.3% over the past 5 years.

Debt Coverage: MRT.UN's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: MRT.UN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

9.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRT.UN's dividend (9.45%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: MRT.UN's dividend (9.45%) is in the top 25% of dividend payers in the Canadian market (6.46%)


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 reasonable payout ratio (65.8%), MRT.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Kuldip Sahi (72yo)

18.92yrs

Tenure

CA$100,000

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 ($USD73.39K) is below average for companies of similar size in the Canadian market ($USD730.29K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman18.92yrsCA$100.00k3.62% CA$11.2m
Andrew Tamlin
Chief Financial Officer1.58yrsCA$196.35k0.0025% CA$7.6k
Beverley Flynn
Senior VPno datano data0.013% CA$39.6k
Angela Sahi
Senior Vice Presidentno datano datano data
Paul Miatello
Senior Vice Presidentno datano data0.014% CA$42.2k
Arjun Chowdhury
Director of Asset Managementno datano datano data
John Ginis
Director of Asset Management - Retail9.58yrsno datano data

9.6yrs

Average Tenure

Experienced Management: MRT.UN's management team is seasoned and experienced (9.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman18.92yrsCA$100.00k3.62% CA$11.2m
Bart Munn
Independent Trustee2.08yrsCA$50.00k0.016% CA$50.8k
Donald Turple
Independent Director0.083yrno datano data
Michael A. Catford
Independent Trustee22.83yrsCA$43.00kno data
Timothy Walker
Independent Trustee6.08yrsCA$46.50k0.053% CA$162.5k
Timothy Murphy
Independent Director0.083yrno datano data

2.1yrs

Average Tenure

66yo

Average Age

Experienced Board: MRT.UN's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MRT.UN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$308.554m
  • Shares outstanding: 60.74m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRT.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADOct 1998
MGRU.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDOct 1998

Biography

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 48 retail, office and industrial income producing properties in Canada with a book value of $2.8 billion and approximately 8.4 million square feet of leasable space. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 03:27
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
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.