Morguard North American Residential REIT Announces 2016 Results

MISSISSAUGA, ON, Feb. 14, 2017

Highlights

The REIT is reporting performance of:

• Net operating income ("NOI") of $115.3 million for the year ended December 31, 2016, an increase of $11.1 million, or 10.7% compared to 2015.
  
  
• Basic funds from operations ("FFO") of $57.6 million for the year ended December 31, 2016, an increase of $6.5 million, or 12.7% compared to 2015.
  
  
• Basic FFO of $1.24 per Unit for the year ended December 31, 2016, a 12.7% increase as compared to the $1.10 per Unit for 2015.
  
  
• Basic adjusted funds from operations ("AFFO") of $0.99 per Unit for the year ended December 31, 2016, a 16.5% increase as compared to the $0.85 per Unit generated over the same period in 2015.
  
  
• FFO and AFFO payout ratios for the year ended December 31, 2016 of 49.0% and 61.3%, respectively.

On February 1, 2016, the REIT acquired a 370 suite residential property located in Ottawa, Ontario, for $67.0 million (the "160 Chapel Acquisition").  The acquisition was funded by cash on hand and a mortgage of $38.6 million at an interest rate of 2.88% for a term of 10 years.

On November 1, 2016, the Board of Trustees announced an increase in the REIT's annual cash distribution by $0.04 per Unit (6.7%).  The increase was effective for the November 2016 distribution and was paid on December 15, 2016 to unitholders of record as at November 30, 2016. The REIT's annual distributions increased to $0.64 per Unit from the previous level of $0.60 per Unit.

During the year, the REIT completed the refinancing on 13 multi-suite residential properties in the amount of $239.4 million at a weighted average interest rate of 3.27% and a weighted average term of 9.4 years that resulted in $94.5 million of upfinancing mortgage proceeds. These financings further strengthened the balance sheet by increasing the weighted average term to maturity to 5.7 years from 5.1 years while lowering the weighted average interest rate to 3.62% from 3.82% when compared to December 31, 2015.

On January 9, 2017, the REIT completed an offering for 4,370,000 Units sold for a price of $13.75 per Unit for aggregate gross proceeds of $60,088 (the "Offering").  The net proceeds of the Offering will be used to fund acquisitions, repay debt and for general trust purposes.