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MorGuard FOR IMMEDIATE RELEASE MISSISSAUGA , ON ( April 27 , 2021 ) - Morguard North American Residential REIT ( the “ REIT " ) ( TSX : MRG.UN ) today announced its financial results for the three months ended March 31 , 2021 , 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 . First Quarter Highlights The REIT is reporting first quarter performance of : Net operating income ( “ NOI ” ) of $ 15.2 million for the three months ended March 31 , 2021 , a decrease of $ 2.1 million , or 12.2 % compared to 2020 , and Proportionate NOI ( excluding the impact of realty taxes accounted for under IFRIC 21 ) of $ 31.8 million for the three months ended March 31 , 2021 , a decrease of $ 3.5 million , or 10.0 % compared to 2020 . ● ● ● ● ● Morguard North American Residential REIT Announces 2021 First Quarter Results ● ● Same Property Proportionate NOI in Canada decreased by $ 1.1 million ( or 7.6 % ) , and in the U.S. decreased by US $ 0.8 million ( or 5.2 % ) , compared to 2020 . Basic funds from operations ( " FFO " ) of $ 15.6 million for the three months ended March 31 , 2021 , a decrease of $ 2.5 million , or 13.7 % over the same period in 2020 . Basic FFO of $ 0.28 per Unit for the three months ended March 31 , 2021 , a 12.5 % decrease as compared to the $ 0.32 in 2020. The change in foreign exchange rate had a $ 0.02 per Unit negative impact . The REIT is reporting the following corporate and portfolio highlights : As at April 27 , 2021 , the REIT collected 98.4 % of first quarter rental revenue and approximately 95.4 % ( 95.2 % in Canada / 95.5 % in the U.S. ) of April 2021 rental revenue which is materially in line with historical collection rates . FFO payout ratio for the three months ended March 31 , 2021 of 63.0 % compared to 54.3 % in 2020 . Net income of $ 27.4 million for the three months ended March 31 , 2021 , a decrease of $ 69.8 million over the same period in 2020. The decrease in net income is predominantly due to a lower non - cash fair value gain on Class B LP Units , partially offset by a higher fair value gain on income producing properties . As at March 31 , 2021 , average monthly rent ( " AMR " ) in Canada increased by 4.3 % compared to March 31 , 2020 , while occupancy decreased to 93.6 % at March 31 , 2021 , compared to 98.8 % at March 31 , 2020. Occupancy in Canada declined due to reduced leasing traffic , lower immigration levels as well as two properties impacted by university closures . As at March 31 , 2021 , AMR in U.S. on a Same Property basis , increased by 0.7 % compared to March 31 , 2020 , while occupancy was stable at 95.1 % at March 31 , 2021 , compared to 95.4 % at March 31 , 2020 . As at March 31 , 2021 , indebtedness to gross book value ratio of 42.1 % , lower compared to 42.8 % as at December 31 , 2020 . MORGUARD.COM 1