TSX:MRT.UN

Stock Analysis Report

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 $2.9 billion and approximately 8.5 million square feet of leasable space.


Snowflake Analysis

6 star 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

MRT.UN

-2.5%

CA REITs

-4.8%

CA Market


1 Year Return

-2.2%

MRT.UN

11.9%

CA REITs

0.1%

CA Market

Return vs Industry: MRT.UN underperformed the Canadian REITs industry which returned 11.9% over the past year.

Return vs Market: MRT.UN underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

MRT.UNIndustryMarket
7 Day-3.8%-2.5%-4.8%
30 Day-3.6%1.0%-3.2%
90 Day3.7%4.0%-1.0%
1 Year6.0%-2.2%17.5%11.9%3.3%0.1%
3 Year-0.009%-20.1%43.6%21.6%12.9%2.7%
5 Year-2.1%-31.2%63.1%22.9%29.2%10.3%

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?

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRT.UN (CA$12.18) is trading below our estimate of fair value (CA$23.24)

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 poor value based on its PE Ratio (49.8x) compared to the REITs industry average (10.6x).

PE vs Market: MRT.UN is poor value based on its PE Ratio (49.8x) compared to the Canadian market (15.2x).


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 (0.5x) compared to the CA REITs industry average (1.1x).


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?

-2.0%

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 (1.4%).

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% per year).

High Growth Revenue: MRT.UN's revenue is forecast to decline over the next 3 years (-2% 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?

-12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRT.UN has a large one-off loss of CA$76.1M impacting its December 31 2019 financial results.

Growing Profit Margin: MRT.UN's current net profit margins (5.4%) are lower than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: MRT.UN's earnings have declined by -12.8% per year over the past 5 years.

Accelerating Growth: MRT.UN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRT.UN had negative earnings growth (-79.7%) over the past year, making it difficult to compare to the REITs industry average (6.9%).


Return on Equity

High ROE: MRT.UN's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Morguard Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MRT.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: MRT.UN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: MRT.UN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MRT.UN has a sufficient allowance for bad loans.

Low Risk Liabilities: MRT.UN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MRT.UN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MRT.UN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MRT.UN has an appropriate level of bad loans.


Next Steps

Dividend

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

7.88%

Current Dividend Yield


Dividend Yield vs Market

company7.9%marketbottom25%2.0%markettop25%5.8%industryaverage4.5%forecastin3Years7.9%

Current dividend yield vs market & industry

Notable Dividend: MRT.UN's dividend (7.88%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: MRT.UN's dividend (7.88%) is in the top 25% of dividend payers in the Canadian market (5.81%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.6%), MRT.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRT.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (1.1% payout ratio).


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Kuldip Sahi (72yo)

18.6yrs

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 ($USD75.17K) is below average for companies of similar size in the Canadian market ($USD1.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman18.6yrsCA$100.00k3.62% CA$26.9m
Andrew Tamlin
Chief Financial Officer5.1yrsCA$136.66k0.0025% CA$18.4k
Pamela McLean
Vice President0yrsCA$390.10kno data
Beverley Flynn
Senior VP0yrsno data0.013% CA$95.6k
Angela Sahi
Senior Vice President0yrsno datano data
Paul Miatello
Senior Vice President0yrsno data0.014% CA$101.8k
Arjun Chowdhury
Director of Asset Management0yrsno datano data
John Ginis
Director of Asset Management - Retail9.3yrsno datano data

9.3yrs

Average Tenure

Experienced Management: MRT.UN's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman18.6yrsCA$100.00k3.62% CA$26.9m
Edward Kress
11.6yrsCA$42.00k0.0016% CA$12.3k
Graeme Eadie
1.8yrsCA$56.00k0.016% CA$122.6k
Bart Munn
1.8yrsCA$30.00k0.0049% CA$36.8k
Antony Stephens
22.7yrsCA$40.00k0.093% CA$689.6k
Michael A. Catford
22.5yrsCA$41.00kno data
Timothy Walker
5.8yrsCA$42.50k0.053% CA$392.3k

8.7yrs

Average Tenure

72yo

Average Age

Experienced Board: MRT.UN's board of directors are considered experienced (8.7 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 sold more shares than they have bought 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$744.618m
  • 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 $2.9 billion and approximately 8.5 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 Analysis2020/02/26 23:57
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.