Earnings release
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MORGUARD.COM 1 FOR IMMEDIATE RELEASE Morguard North American Residential REIT Announces 2026 Third Quarter Results and an Increase to Monthly Cash Distribution MISSISSAUGA, ON (October 27, 2026) - Morguard North American Residential REIT (the “REIT”) (TSX: MRG.UN) today announced its financial results for the three and nine months ended September 30, 2026. HIGHLIGHTS The REIT is reporting the following corporate and portfolio highlights: The REIT has advanced its previously announced joint acquisition with Morguard Corporation of a Canadian multi-suite residential portfolio, with the REIT's share representing a gross purchase price of approximately $478 million across 60 properties. The REIT completed the refinancing of two U.S. pr operties located in Florida providing gross mortgage proceeds of $64.9 million (US$45.6 million) at an inte rest rate of 6.33% and a term of 10 years. The maturing mortgage had a balance at maturity of $47.5 million (US$33.4 million) at an interest rate of 3.53%, resulting in net proceeds of $17.4 million (US$12.2 million), before financing costs. As at September 30, 2026, the REIT has liquidity of $272 million, comprised of approximately $172 million in cash and $100 million in available credit under its revolving credit facility with Morguard Corporation. The REIT has also announced it will increase its an nual cash distribution by $0.02 per Unit (2.53%). The increase is expected to be effective for the November 2026 distribution, payable in December 2026. This will bring the distributions to $0.81 per Unit on an annualized basis from the current level of $0.79 per Unit. As at September 30, 2026, average monthly rent (“AMR”) in Canada increased by 2.2% compared to September 30, 2025, while occupancy was 93.8% at September 30, 2026, compared to 94.3% at September 30, 2025. As at September 30, 2026, AMR in the U.S. increa sed by 0.7% compared to September 30, 2025, while occupancy decreased to 91.4% at September 30, 2026, compared to 92.5% at September 30, 2025. As at September 30, 2026, indebtedness to gross book value ratio was 40.1%, compared to 39.5% as at December 31, 2025. The REIT is reporting third quarter performance of: Net operating income (“NOI”) of $53.7 million fo r the three months ended September 30, 2026, a decrease of $0.4 million, or 0.7% compared to 2025. Proportionate NOI for the three months ended Sept ember 30, 2026 decreased by 1.7% compared to 2025, comprised of a decrease in Canada of $0.4 million (or 2.5% ), a decrease in the U.S. of US$0.6 million (or 2.8%), and the change in foreign exchange rate increased Proportionate NOI by $0.2 million. Net income of $31.1 million for the three months ended September 30, 2026, an increase of $18.6 million compared to 2025, predominantly due to a higher net non-cash fair value gain, partly offset by an increase in deferred income tax expense.
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MORGUARD.COM 2 Basic funds from operations (“FFO”) of $0.38 per Unit for the three months ended September 30, 2026, an 11.6% decrease as compared to $0.43 per Unit in 2025. Basic FFO of $19.7 million for the three months ende d September 30, 2026, a decrease of $2.6 million, or 11.8% over the same period in 2025. TRANSACTION UPDATE On February 25, 2026, Morguard Corporation and the REIT announced its joint investment in a Canadian multi- suite residential real estate portfolio currently owne d by TD Asset Management Inc. (“TDAM”). Management completed its due diligence review and the related pur chaser conditions have been waived, including the determination of the allocation of individual property ownership interests to the REIT. The REIT’s allocation of the transaction represents an approximate 22 percent undivided interest in a portfolio of 60 properties at a gross purchase price of approximately $478.1 million, before clos ing costs, and is expected to close in one tranche, subject to receiving CMHC and lender approval. The following table details the regional distribution and ownership interest of the properties: City/Region Number of Properties Ownership Interest Total Suites Ownership Suites Calgary 3 20% 568 113 Edmonton 4 20% 838 168 Alberta 7 20% 1,406 281 Windsor 9 20% 478 96 London 9 20% 792 158 Kitchener 5 20% 764 153 Waterloo 4 20% 781 156 Hamilton 5 20% 689 138 Mississauga 1 20% 108 21 Toronto 7 20% 929 186 Ottawa 2 20% 229 46 Ontario 42 20% 4,770 954 Montréal 6 20% 996 199 Québec 6 20% 996 199 Halifax 5 50% 402 201 Nova Scotia 5 50% 402 201 Total 60 22% 7,574 1,635 The transaction will be financed through a combination of cash on hand, assumed mortgages, approximately $111 million in vendor financing, and the remainder through short-term borrowings. The assumed mortgages are CMHC-insured and have an approximate loan-to-value of 40%. As at September 30, 2026, the REIT paid a $10 million non-refundable deposit in connection with the transaction and is included in prepaid expenses.
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MORGUARD.COM 3 FINANCIAL AND OPERATIONAL HIGHLIGHTS As at September 30, December 31, September 30, (In thousands of dollars, except as otherwise noted) 2026 2025 2025 Operational Information Number of properties 43 43 43 Total suites 13,089 13,089 13,089 Occupancy percentage – Canada 93.8% 93.3% 94.3% Occupancy percentage – U.S. 91.4% 91.3% 92.5% Average monthly rent – Canada (in actual dollars) $1,878 $1,851 $1,837 Average monthly rent – U.S. (in actual U.S. dollars) US$1,953 US$1,930 US$1,939 Summary of Financial Information Gross book value(1) $4,756,095 $4,535,903 $4,595,681 Indebtedness(1) $1,908,392 $1,793,894 $1,817,530 Indebtedness to gross book value ratio(1) 40.1% 39.5% 39.5% Weighted average mortgage interest rate 4.28% 4.07% 4.08% Weighted average term to maturity on mortgages payable (years) 5.3 4.8 5.1 (1) Represents a non-GAAP financial measure/ratio that does not hav e any standardized meaning prescribed by IFRS and is not nec essarily 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 Se ptember 30 (In thousands of dollars, except per Unit amounts) 2026 2025 2026 2025 Summary of Financial Information Revenue from real estate properties $88,887 $87,664 $262,567 $266,475 NOI $53,731 $54,132 $128,794 $131,852 Proportionate NOI(1) $44,775 $45,548 $135,836 $140,958 NOI margin – IFRS 60.4% 61.7% 49.1% 49.5% NOI margin – Proportionate(1) 50.6% 52.2% 52.0% 53.2% Net income $31,084 $12,469 $95,407 $80,850 FFO – basic(1) $19,653 $22,281 $63,108 $70,247 FFO – diluted(1) $20,493 $23,121 $65,628 $72,767 FFO per Unit – basic(1) $0.38 $0.43 $1.21 $1.33 FFO per Unit – diluted(1) $0.38 $0.42 $1.20 $1.32 Distributions per Unit $0.19749 $0.18999 $0.59247 $0.56997 FFO payout ratio(1) 52.4% 44.6% 49.0% 42.8% Weighted average number of Units outstanding (in thousands): Basic 52,170 52,280 52,166 52,702 Diluted 54,489 54,599 54,485 55,021 (1) Represents a non-GAAP financial measure/ratio that does not ha ve 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 4 SPECIFIED FINANCIAL MEASURES The REIT reports its financial results in accordance with IFRS Accounting 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 ar e categorized as non-GAAP financial m easures, 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 Septem ber 30, 2026 and 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 reporti ng 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. T he 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 t he 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 Proportionat e Share NOI to its closely related financial statement measurement for the following periods: 2026 2025 Non-GAAP Adjustments Non-GAAP Adjustments 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 $88,887 ($4,961) $4,524 $— $88,450 $87,664 ($4,666) $4,262 $— $87,260 Property operating expenses 35,156 (1,561) 1,172 8,908 43,675 33,532 (1,398) 1,154 8,424 41,712 Total NOI $53,731 ($3,400) $3,352 ($8,908) $44,775 $54,132 ($3,268) $3, 108 ($8,424) $45,548 NOI Margin 60.4% 50.6% 61.7% 52.2% 2026 2025 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 $262,567 ($14,231) $13,123 $— $261,459 $266,475 ($14,179) $12,806 $— $265,102 Property operating expenses 133,773 (7,394) 6,641 (7,397) 125,623 134,623 (7,728) 6,687 (9,438) 124,144 Total NOI $128,794 ($6,837) $6,482 $7,397 $135,836 $131,852 ($6,451) $6, 119 $9,438 $140,958 NOI Margin 49.1% 52.0% 49.5% 53.2%
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MORGUARD.COM 5 FUNDS FROM OPERATIONS FFO (and FFO per Unit) is a non-GAAP financial measure wi dely used as a real estate industry sta ndard that supplements net income 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 Associat ion of Canada (“REALPAC”) and is defined as net income attributable to Unitholders adjusted for fair value adjustment s, 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 review ing its comparative operating and financial performance. FFO per Unit is calculated as FFO divided by the weight ed 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) 2026 2025 2026 2025 Net income for the period attributable to Unitholders $24,448 $7,849 $84,978 $75,089 Add/(deduct): Realty taxes accounted for under IFRIC 21 (8,908) (8,424) 7,397 9,438 Fair value gain on conversion option on the convertible debentures (185) (391) (700) (202) Distributions on Class B LP Units recorded as interest expense 3,401 3,272 10,203 9,816 Foreign exchange loss — 3 2 7 Fair value loss (gain) on real estate properties, net 30,814 19,282 (12,379) (53,758) Non-controlling interests’ share of fair value gain on real estate properties 4,785 2,692 8,173 3,002 Fair value loss (gain) on Class B LP Units (37,202) (1,895) (46,158) 17,223 Deferred income tax expense (recovery) 2,500 (107) 11,592 9,632 FFO - basic $19,653 $22,281 $63,108 $70,247 Interest expense on the convertible debentures 840 840 2,520 2,520 FFO - diluted $20,493 $23,121 $65,628 $72,767 FFO per Unit - basic $0.38 $0.43 $1.21 $1.33 FFO per Unit - diluted $0.38 $0.42 $1.20 $1.32 Weighted average number of Units outstanding (in thousands): Basic 52,170 52,280 52,166 52,702 Diluted 54,489 54,599 54,485 55,021 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 6 The following table provides a reconciliation of gros s 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) 2026 2025 Total Assets / Gross book value $4,756,095 $4,535,903 Mortgage payable $1,810,237 $1,700,117 Add: Deferred financing costs 23,794 19,831 Mark-to-market adjustment 554 1,007 1,834,585 1,720,955 Convertible debentures, face value 56,000 56,000 Lease liabilities 17,807 16,939 Indebtedness $1,908,392 $1,793,894 Indebtedness / Gross book value 40.1% 39.5% 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 su bstitutes 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 measur es 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 marg in 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 (inclu ding Class B LP Units) to FFO. Distributions declared (including Class B LP Units) is calculated based on the m onthly 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 rele ase because management co nsiders 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 t he 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 financia l statements for the three and nine months ended September 30, 2026, 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.
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MORGUARD.COM 7 CONFERENCE CALL DETAILS Morguard North American Residential Real Estate Investment Trust will hold a conference call on Thursday, October 29, 2026 at 3:00 p.m. (ET) to discuss the financial results for the three and nine months ended September 30, 2026 and 2025. To participate in the conference call, please dial 1-416-945-7677 or 1-888-699- 1199. Please quote conference ID 75868. ABOUT MORGUARD NORTH AMERICAN RESIDENTIAL REIT The REIT is an unincorporated, open-ended real estate in vestment 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 acquisiti on 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 230,000 square feet of commercial area (as of October 27, 2026) located in Alberta, Ontario, Colorado, Texas, Louisiana, I llinois, Georgia, Florida, North Carolina, Virginia and Maryland with an appraised value of approximately $4.4 billion at September 30, 2026. For more information, visit the REIT’s website at www.morguard.com. For further information, please contact: Morguard North American Residential REIT Angela Sahi Christopher A. Newman Chief Executive Officer Chief Financial Officer (905) 281-3800 (905) 281-3800