Earnings release
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MORGUARD.COM 1 FOR IMMEDIATE RELEASE Morguard North American Residential REIT Announces 2025 Third Quarter Results and an Increase to Monthly Cash Distribution MISSISSAUGA, ON (October 27, 2025) - Morguard North American Residential REIT (the “REIT”) (TSX: MRG.UN) today announced its financial results for the three and nine months ended September 30, 2025. Highlights The REIT is reporting third quarter performance of: Net operating income (“NOI”) of $54.1 million for the three months ended September 30, 2025, an increase of $2.1 million, or 4.0% compared to 2024. Proportionate NOI for the three months ended September 30, 2025 increased by 2.7% compared to 2024, comprised of an increase in the U.S. of US$0.9 million (or 4.2%), partially offset by a decrease in Canada of $0.3 million (or 1.6%), and the change in foreign exchange rate which increased Proportionate NOI by $0.6 million. Net income of $12.5 million for the three months ended September 30, 2025, an increase of $31.3 million, or 166.2% compared to 2024, predominantly due to a higher net fair value gain and a decrease in deferred income tax expense. Basic funds from operations (“FFO”) of $0.43 per Unit for the three months ended September 30, 2025, a 7.5% increase as compared to $0.40 per Unit in 2024. Basic FFO of $22.3 million for the three months ended September 30, 2025, an increase of $0.4 million, or 2.0% over the same period in 2024. The REIT is reporting the following corporate and portfolio highlights: The REIT has also announced it will increase its annual cash distribution by $0.03 per Unit (3.95%). The increase is expected to be effective for the November 2025 distribution, payable in December 2025. This will bring the distributions to $0.79 per Unit on an annualized basis from the current level of $0.76 per Unit. The REIT completed the refinancing of a U.S. property located in Chicago, Illinois, providing gross mortgage proceeds of $166.1 million (US$120.0 million) at an interest rate of 5.35%. The maturing mortgage had a balance at maturity of $155.8 million (US$112.6 million) at an interest rate of 3.49%, resulting in net proceeds of $10.3 million (US$7.4 million), before financing costs. As at September 30, 2025, average monthly rent (“AMR”) in Canada increased by 4.7% compared to September 30, 2024, while occupancy decreased to 94.3% at September 30, 2025, compared to 97.8% at September 30, 2024. As at September 30, 2025, AMR in the U.S. increased by 1.5% compared to September 30, 2024, while occupancy increased to 92.5% at September 30, 2025, compared to 91.7% at September 30, 2024. As at September 30, 2025, indebtedness to gross book value ratio was 39.5%, compared to 39.7% as at December 31, 2024.
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MORGUARD.COM 2 Financial and Operational Highlights As at September 30, December 31, September 30, (In thousands of dollars, except as otherwise noted) 2025 2024 2024 Operational Information Number of properties 43 43 43 Total suites 13,089 13,089 13,089 Occupancy percentage – Canada 94.3% 97.2% 97.8% Occupancy percentage – U.S. 92.5% 93.8% 91.7% Average monthly rent - Canada (in actual dollars) $1,837 $1,772 $1,754 Average monthly rent - U.S. (in actual U.S. dollars) US$1,939 US$1,907 US$1,911 Summary of Financial Information Gross book value(1) $4,595,681 $4,571,631 $4,375,281 Indebtedness(1) $1,817,530 $1,816,598 $1,700,442 Indebtedness to gross book value ratio(1) 39.5% 39.7% 38.9% Weighted average mortgage interest rate 4.08% 3.88% 3.87% Weighted average term to maturity on mortgages payable 5.1 5.2 5.1 (1) Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS. Three months ended Nine months ended September 30 September 30 (In thousands of dollars, except per Unit amounts) 2025 2024 2025 2024 Summary of Financial Information Revenue from real estate properties $87,664 $85,788 $266,475 $256,300 NOI $54,132 $52,031 $131,852 $127,267 Proportionate NOI(1) $45,548 $44,353 $140,958 $135,657 NOI margin – IFRS 61.7% 60.7% 49.5% 49.7% NOI margin – Proportionate(1) 52.2% 52.1% 53.2% 53.3% Net income (loss) $12,469 ($18,829) $80,850 $56,518 FFO – basic(1) $22,281 $21,852 $70,247 $67,071 FFO – diluted(1) $23,121 $22,692 $72,767 $69,591 FFO per Unit – basic(1) $0.43 $0.40 $1.33 $1.23 FFO per Unit – diluted(1) $0.42 $0.40 $1.32 $1.22 Distributions per Unit $0.18999 $0.18501 $0.56997 $0.55503 FFO payout ratio(1) 44.6% 45.9% 42.8% 45.2% Weighted average number of Units outstanding (in thousands): Basic 52,280 54,198 52,702 54,635 Diluted 54,599 56,517 55,021 56,954 (1) Represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS.
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MORGUARD.COM 3 Specified Financial Measures The REIT reports its financial results in accordance with International Financial Reporting Standards (“IFRS”). However, this earnings release also uses specified financial measures that are not defined by IFRS, which follow the disclosure requirements established by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Specified financial measures are categorized as non-GAAP financial measures, non- GAAP ratios, and other financial measures. Additional details on specified financial measures including supplementary financial measures, capital management measures and total segment measures are set out in the REIT’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2025 and is available on the REIT’s profile on SEDAR+ at www.sedarplus.ca. The following Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The REIT’s management uses these measures to aid in assessing the REIT’s underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP financial measures, which supplement the IFRS measures, provide readers with a more comprehensive understanding of management’s perspective on the REIT’s operating results and performance. A reconciliation of each non-GAAP financial measure referred to in this earnings release is provided below. Proportionate Share NOI (“Proportionate NOI”) Proportionate NOI is an important measure in evaluating the operating performance of the REIT’s real estate properties and are a key input in determining the fair value of the REIT’s properties. Proportionate NOI represents NOI (an IFRS measure) adjusted for the following: i) to exclude the impact of realty taxes accounted for under International Financial Reporting Interpretations Committee (“IFRIC”) Interpretation 21, Levies (“IFRIC 21”). Proportionate NOI records realty taxes for all properties on a pro rata basis over the entire fiscal year; ii) to exclude the non-controlling interest share of NOI for those properties that are consolidated under IFRS (“NCI Share”); and iii) to include equity-accounted investments NOI at the REIT’s ownership interest (“Equity Interest”). The following table provides a reconciliation of Proportionate Share NOI to its closely related financial statement measurement for the following periods: 2025 2024 Non-GAAP Adjustments Non-GAAP Adjustment For the three months ended Proportionate Proportionate September 30 NCI Equity Basis NCI Equity Basis (In thousands of dollars) IFRS Share Interest IFRIC 21 (Non-GAAP) IFRS Share Interest IFRIC 21 (Non-GAAP) Revenue from properties $87,664 ($4,666) $4,262 $— $87,260 $85,788 ($4,585) $3,905 $— $85,108 Property operating expenses 33,532 (1,398) 1,154 8,424 41,712 33,757 (1,755) 1,181 7,572 40,755 NOI $54,132 ($3,268) $3,108 ($8,424) $45,548 $52,031 ($2,830) $2,724 ($7,572) $44,353 NOI Margin 61.7% 52.2% 60.7% 52.1% 2025 2024 Non-GAAP Adjustments Non-GAAP Adjustments For the nine months ended Proportionate Proportionate September 30 NCI Equity Basis NCI Equity Basis (In thousands of dollars) IFRS Share Interest IFRIC 21 (Non-GAAP) IFRS Share Interest IFRIC 21 (Non-GAAP) Revenue from properties $266,475 ($14,179) $12,806 $— $265,102 $256,300 ($13,409) $11,844 $— $254,735 Property operating expenses 134,623 (7,728) 6,687 (9,438) 124,144 129,033 (7,387) 5,892 (8,460) 119,078 NOI $131,852 ($6,451) $6,119 $9,438 $140,958 $127,267 ($6,022) $5,952 $8,460 $135,657 NOI Margin 49.5% 53.2% 49.7% 53.3%
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MORGUARD.COM 4 Funds From Operations FFO (and FFO per Unit) is a non-GAAP financial measure widely used as a real estate industry standard that supplements net income (loss) and evaluates operating performance but is not indicative of funds available to meet the REIT’s cash requirements. FFO can assist with comparisons of the operating performance of the REIT’s real estate between periods and relative to other real estate entities. FFO is computed by the REIT in accordance with the current definition of the Real Property Association of Canada (“REALPAC”) and is defined as net income attributable to Unitholders adjusted for fair value adjustments, distributions on the Class B LP Units, realty taxes accounted for under IFRIC 21, deferred income taxes (on the REIT’s U.S. properties), gains/losses on the sale of real estate properties (including income taxes on the sale of real estate properties) and other non-cash items. The REIT considers FFO to be a useful measure for reviewing its comparative operating and financial performance. FFO per Unit is calculated as FFO divided by the weighted average number of Units outstanding (including Class B LP Units) during the period. The following table provides a reconciliation of FFO to its closely related financial statement measurement for the following periods: Three months ended September 30 Nine months ended September 30 (In thousands of dollars, except per Unit amounts) 2025 2024 2025 2024 Net income (loss) for the period attributable to Unitholders $7,849 ($20,791) $75,089 $53,256 Add/(deduct): Realty taxes accounted for under IFRIC 21 (8,424) (7,572) 9,438 8,460 Fair value loss (gain) on conversion option on the convertible debentures (391) 2,006 (202) 879 Distributions on Class B LP Units recorded as interest expense 3,272 3,186 9,816 9,558 Foreign exchange loss 3 552 7 558 Fair value loss (gain) on real estate properties, net 19,282 (24,905) (53,758) (98,623) Non-controlling interests’ share of fair value gain on real estate properties 2,692 278 3,002 796 Fair value loss (gain) on Class B LP Units (1,895) 65,276 17,223 77,504 Deferred income tax expense (recovery) (107) 3,822 9,632 14,683 FFO - basic $22,281 $21,852 $70,247 $67,071 Interest expense on the convertible debentures 840 840 2,520 2,520 FFO - diluted $23,121 $22,692 $72,767 $69,591 FFO per Unit - basic $0.43 $0.40 $1.33 $1.23 FFO per Unit - diluted $0.42 $0.40 $1.32 $1.22 Weighted average number of Units outstanding (in thousands): Basic 52,280 54,198 52,702 54,635 Diluted 54,599 56,517 55,021 56,954 Indebtedness and Gross Book Value Indebtedness (as defined in the REIT’s Declaration of Trust) is a measure of the amount of debt financing utilized by the REIT. Indebtedness is presented in this earnings release because management considers this non-GAAP financial measure to be an important measure of the REIT’s financial position. Gross book value (as defined in the REIT’s Declaration of Trust) is a measure of the value of the REIT’s assets. Gross book value is presented in this earnings release because management considers this non- GAAP financial measure to be an important measure of the REIT’s asset base and financial position.
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MORGUARD.COM 5 The following table provides a reconciliation of gross book value and indebtedness as defined in the REIT’s Declaration of Trust from their IFRS financial statement presentation: As at September 30, December 31, (In thousands of dollars) 2025 2024 Total Assets / Gross book value $4,595,681 $4,571,631 Mortgage payable $1,722,270 $1,721,080 Add: Deferred financing costs 20,865 20,162 Mark-to-market adjustment 1,175 1,744 1,744,310 1,742,986 Convertible debentures, face value 56,000 56,000 Lease liabilities 17,220 17,612 Indebtedness $1,817,530 $1,816,598 Indebtedness / Gross book value 39.5% 39.7% Non-GAAP Ratios Non-GAAP ratios do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The REIT’s management uses these measures to aid in assessing the REIT’s underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP ratios described below, provide readers with a more comprehensive understanding of management’s perspective on the REIT’s operating results and performance. The following discussion describes the non-GAAP ratios the REIT uses in evaluating its operating results. Proportionate NOI Margin Proportionate NOI margin is calculated as Proportionate NOI divided by revenue (on a Proportionate Basis) and is an important measure in evaluating the operating performance (including the level of operating expenses) of the REIT’s real estate properties. Proportionate NOI margin is presented in this earnings release because management considers this non-GAAP ratio to be an important measure of the REIT’s operating performance and financial position. FFO Payout Ratio FFO payout ratio compares distributions declared (including Class B LP Units) to FFO. Distributions declared (including Class B LP Units) is calculated based on the monthly distribution per Unit multiplied by the weighted average number of Units outstanding (including Class B LP Units) during the period and is an important metric in assessing the sustainability of retained cash flow to fund capital expenditures and distributions. FFO payout ratio is presented in this earnings release because management considers this non-GAAP ratio to be an important measure of the REIT’s operating performance and financial position. Indebtedness to Gross Book Value Ratio Indebtedness to gross book value ratio is a compliance measure in the REIT’s Declaration of Trust and establishes the limit for financial leverage of the REIT. Indebtedness to gross book value ratio is presented in this earnings release because management considers this non-GAAP ratio to be an important measure of the REIT’s financial position. The REIT’s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2025, along with the Management’s Discussion and Analysis will be available on the REIT’s website at www.morguard.com and will be filed with SEDAR+ at www.sedarplus.ca. Conference Call Details Morguard North American Residential Real Estate Investment Trust will hold a conference call on Thursday, October 30, 2025 at 3:00 p.m. (ET) to discuss the financial results for the three and nine months ended September 30, 2025 and 2024. To participate in the conference call, please dial 416-945-7677 or 1-888-699- 1199. Please quote conference ID 71310.
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MORGUARD.COM 6 About Morguard North American Residential REIT The REIT is an unincorporated, open-ended real estate investment trust established under and governed by the laws of the Province of Ontario. The Units of the REIT trade on the Toronto Stock Exchange under the ticker symbol MRG.UN. With a strategic focus on the acquisition of high-quality multi-suite residential properties in Canada and the United States, the REIT maximizes long-term Unit value through active asset and property management. The REIT’s portfolio is comprised of 13,089 residential suites and 239,500 square feet of commercial area (as of October 27, 2025) located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland with an appraised value of approximately $4.3 billion at September 30, 2025. For more information, visit the REIT’s website at www.morguard.com. For further information, please contact: Morguard North American Residential REIT K. Rai Sahi Christopher A. Newman Chief Executive Officer Chief Financial Officer (905) 281-3800 (905) 281-3800