Page 1

MorGuard FOR IMMEDIATE RELEASE MISSISSAUGA , ON ( July 27 , 2021 ) - Morguard North American Residential REIT ( the “ REIT " ) ( TSX : MRG.UN ) today announced its financial results for the three and six months ended June 30 , 2021 . Second Quarter Highlights The REIT is reporting second quarter performance of : Net operating income ( “ NOI " ) of $ 37.4 million for the three months ended June 30 , 2021 , a decrease of $ 3.9 million , or 9.4 % compared to 2020 , and Proportionate NOI of $ 32.4 million for the three months ended June 30 , 2021 , a decrease of $ 4.0 million , or 10.9 % compared to 2020. The change in foreign exchange rate decreased NOI and Proportionate NOI by $ 3.0 million and $ 2.6 million , respectively . ● ● Morguard North American Residential REIT Announces 2021 Second Quarter Results ● ● Same Property Proportionate NOI in Canada decreased by $ 1.2 million ( or 8.7 % ) , and in the U.S. decreased by US $ 0.1 million ( or 0.9 % ) , compared to 2020 . Basic funds from operations ( " FFO " ) of $ 16.1 million for the three months ended June 30 , 2021 compared to $ 19.3 million over the same period in 2020 . Basic FFO $ 0.29 per Unit for the three months ended June 30 , 2021 as compared to the $ 0.34 per Unit over the same period in 2020. The change in foreign exchange and non - recurring income received in 2020 had a $ 0.045 per Unit negative impact on FFO . The REIT is reporting the following corporate and portfolio highlights : As at July 27 , 2021 , the REIT collected 98.7 % of second quarter rental revenue and approximately 95.6 % ( 95.6 % in Canada / 95.6 % in the U.S. ) of July rental revenue which is materially in line with historical collection rates . FFO payout ratio for the three months ended June 30 , 2021 of 61.0 % compared to 50.9 % in 2020 . Net income of $ 20.3 million for the three months ended June 30 , 2021 compared to a net income of $ 19.3 million over the same period in 2020 . As at June 30 , 2021 , average monthly rent ( " AMR " ) in Canada increased by 4.5 % compared to June 30 , 2020 , while occupancy decreased to 91.8 % at June 30 , 2021 , compared to 97.5 % at June 30 , 2020 . As at June 30 , 2021 , AMR in the U.S. on a Same Property basis increased by 0.8 % compared to June 30 , 2020 , while occupancy reached optimum levels at 96.8 % at June 30 , 2021 , compared to 93.6 % at June 30 , 2020 . As at June 30 , 2021 , indebtedness to gross book value ratio was 41.4 % , compared to 42.8 % as at December 31 , 2020 . MORGUARD.COM 1