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MorGuard FOR IMMEDIATE RELEASE MISSISSAUGA , ON ( February 16 , 2021 ) - Morguard North American Residential REIT ( the " REIT " ) ( TSX : MRG.UN ) today announced its financial results for the year ended December 31 , 2020 , including a brief operational and liquidity update as we continue to focus on our essential service of providing safe homes to our tenants during this COVID - 19 pandemic . Highlights The REIT is reporting performance of : Net operating income ( " NOI " ) of $ 135.5 million for the year ended December 31 , 2020 , an increase of $ 2.6 million , or 2.0 % compared to 2019 . ● ● ● Morguard North American Residential REIT Announces 2020 Results ● ● Same Property Proportionate NOI in Canada increased by $ 1.6 million ( or 3.1 % ) , and in the U.S. increased by US $ 1.0 million ( or 1.8 % ) , compared to 2019 . The REIT is reporting the following corporate and portfolio highlights : As at February 16 , 2021 , the REIT collected 98.7 % of fourth quarter rental revenue and approximately 97.5 % ( 98.0 % in Canada / 97.1 % in the U.S. ) of January 2021 rental revenue which is materially in line with historical collection rates . Basic funds from operations ( " FFO " ) of $ 68.9 million for the year ended December 31 , 2020 , an increase of $ 4.7 million , or 7.4 % over the same period in 2019 . Basic FFO of $ 1.23 per Unit for the year ended December 31 , 2020 , a 0.8 % increase as compared to the $ 1.22 per Unit in 2019 . FFO payout ratio for the year ended December 31 , 2020 of 57.0 % compared to 56.1 % in 2019 . Net income of $ 166.8 million for the year ended December 31 , 2020 , an increase of $ 86.7 million over the same period in 2019. The increase in net income is predominantly due to a higher non - cash fair value gain on real estate properties and a higher fair value gain on Class B LP Units . As at December 31 , 2020 , average monthly rent ( " AMR " ) in Canada increased by 4.7 % compared to December 31 , 2019 , while occupancy was 94.9 % at December 31 , 2020 , compared to 98.8 % at December 31 , 2019. Occupancy in Canada declined due to reduced leasing traffic , lower immigration levels as well as two properties impacted by university closures . As at December 31 , 2020 , AMR in the U.S. , on a Same Property basis , increased by 1.3 % compared to December 31 , 2019 , while occupancy was stable at 93.6 % at December 31 , 2020 , compared to 94.5 % at December 31 , 2019 . As at December 31 , 2020 , indebtedness to gross book value ratio of 42.8 % , lower compared to 44.1 % as at December 31 , 2019 . The REIT substantially completed the redevelopment of its Class A mid - rise residential property , 1643 Josephine , New Orleans , Louisiana , with first occupancies taking place in late - October . MORGUARD.COM 1