A leading unincorporated, open-ended real estate investment trust operating under Ontario law has released its financial results for the quarter ending March 31, 2017.
The first three months of the year saw Morguard North American Residential REIT garner an adjusted net operating income of $29.4 million, representing a 3.3 per cent year-over-year increase.
“The increase was due to a higher Adjusted NOI in Canada and the U.S. of $0.6 million (or 6.2%) and US$0.7 million (or 5.4%), respectively, partially offset by the change in the U.S. foreign exchange rate, which decreased Adjusted NOI by $0.4 million,” Morguard said in its report.
“The increase in Adjusted NOI was attributable to an acquisition completed during the three months ended March 31, 2016 and an increase in Same Property NOI in Canada and the U.S. mainly driven by higher rental revenue, partially offset by an increase in overall operating expenses.”
Basic funds from operations (FFO) also rose by 9.0 per cent over the same time frame, up to $15.3 million. Meanwhile, the REIT’s FFO ratio payout in Q1 2017 stood at 52.9 per cent.
“The increase is mainly due to an increase in Adjusted NOI of $0.9 million, an increase in other income of $0.2 million and a decrease in interest expense of $0.3 million (excluding distributions on Class B LP Units and fair value loss on conversion option on the Debentures), partially offset by an increase in trust expenses of $0.1 million. The change in foreign exchange rates had a negative impact on FFO of $0.4 million,” Morguard stated.
“Excluding the impact of the offering, basic FFO per unit amounted to $0.32 per Unit for the three months ended March 31, 2017.”
The full report can be accessed here