2020 ANNUAL REPORT
2020 ANNUAL REPORT
TRUE VALUE
TRUE VALUE
APPRECIATED
APPRECIATED
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The selected annual financial information in the 2020 Annual Report highlights certain key
metrics for the Trust. As a result, this report should be read in conjunction with the Trust’s
Consolidated Financial Statements for the year ended December 31, 2020, related Management’s
Discussion and Analysis (“MD&A”) and the Annual Information Form (“AIF”). These documents
are available on the Trust’s website at www.morguard.com. All continuous disclosure documents
required by securities regulators are also filed on the System for Electronic Document Analysis
and Retrieval (“SEDAR”) and can be accessed electronically at www.sedar.com.
N O N - I F R S M E A S U R E S
The Trust reports its financial results in accordance with IFRS. However, the MD&A also uses
certain financial measures that are not defined by IFRS. These measures do not have any
standard 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 supplemental in nature, and not as substitutes for related financial information
prepared in accordance with IFRS. The Trust’s management uses these measures to aid in
assessing the Trust’s underlying core performance and provides these additional measures so
that investors may do the same. Management believes that the non-IFRS measures described
further in the MD&A (and include NOI, FFO and AFFO), which supplement the IFRS measures,
provide readers with a more comprehensive understanding of management’s perspective on
the Trust’s operating results and performance.
2 0 2 0 A N N U A L R E P O R T
THE ART
OF APPRECIATION
Canadian commercial real estate has always been a dependable
asset class for investors, generating steady returns over the long run.
Morguard REIT has built a high-quality diversified Canadian portfolio,
appreciated by many. Comprising 47 commercial properties in urban
centres in six provinces, our portfolio accounts for 8.3 million square
feet of gross leasable area. Our success lies in our approach. We focus
on key markets, providing us with stability to withstand a multitude
of economic conditions. And Morguard’s network of experienced
real estate professionals offers us the skills and knowledge required
to identify opportunities, reinvest, re-envision, revitalize and develop
our holdings in thriving communities. By monitoring and responding
strategically to the marketplace, we ensure value for our unitholders
over the long term. It’s a strategy our investors appreciate.
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LETTER FROM THE CHAIRMAN,
PRESIDENT AND CEO
Dear Fellow Unitholders,
In 2020, the pandemic had a significant impact on the global
economy and changed the way we work and shop. Public areas
such as commercial spaces were forced to close due to government
mandates that were designed to protect both tenants and customers
from contracting the coronavirus. There is no denying that this was
a challenging time for the Trust.
But the Trust has never been about short-term gains or losses or
fleeting conditions. Instead, it has been about prudently building
a portfolio of assets that has the potential to yield stable returns
over the long term. And experience has shown us that our strategy
is the right one.
When the coronavirus outbreak hit, we mobilized quickly. Our first
priority was to take the necessary steps to ensure that our tenants,
our employees and our visitors were safe. To help reduce the spread
of COVID-19, we eliminated amenities that were deemed to be risky and intensified cleaning
in high-touch areas of our properties. We deferred maintenance orders for non-emergency
repairs and added additional hand sanitizers on premises for our tenants and their patrons.
Our executive and operations teams used the latest technology to keep lines of communications
open internally, as well as with our tenants and partners. They were active on social media
providing up-to-the-minute reports. They diligently strived to ensure our occupancy levels remained
strong, working with tenants to review their situations and consider rent payment solutions
when necessary.
Thanks to the efforts of our dedicated teams, overall occupancy declined by only 1.4% to 92.1%.
Occupancy in our community strip centres and industrial properties stayed strong at 98.3% and
93.3%, respectively. Our enclosed shopping centres saw a decline to 93.1% due to government
closures and our office towers to 88.7% due to hard-hit oil and gas producing Alberta. These two
segments will need a bit more time to recover.
However, I remain optimistic because
I believe that our diversification across –
and within – asset classes will help
us withstand the challenging conditions
caused by the pandemic. So will the
fact that we have properties located
in six provinces across Canada. This
diversification has always given us
the resiliency we need to withstand
economic downturns.
G R O S S L E A S A B L E A R E A
B Y A S S E T C L A S S
In Millions of Square Feet
1
3
2
1 3.39 SF Office
2 4.65 SF Retail
3 0.29 SF Industrial
8.33 SF Total
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2 0 2 0 A N N U A L R E P O R T
N O I
In Millions of Dollars
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$
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2
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1
$
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$
8
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3
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$
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F F O
In Millions of Dollars
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1
1
$
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5
9
$
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6
6
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Through all this, there was some good news.
The Trust has a liquidity of $141.9 million and
an unencumbered asset pool of $321.9 million,
putting it in an excellent position to weather the
financial storm that erupted in 2020.
The Trust’s financial results for 2020 demonstrate
the impact the pandemic had on our bottom line.
Our revenues decreased to $253.8 million and our
unitholder distributions were reduced to $0.02 per
unit in February 2021. Our net operating income
(NOI) dipped to $123.8 million from $150 million
a year ago and our funds from operations (FFO)
were also down, closing the year at $66.9 million.
This is truly our chance to seize the day, because
it puts the Trust in the situation to capitalize on
available opportunities. Over the years, we have
managed to build a portfolio of assets that we can
use to create value and growth through rezoning –
and by adding density.
The Trust’s management, supported by
Morguard’s management services team, will
continue to focus on creating value within its
portfolio and delivering stable returns to its
unitholders. We will do this by uncovering further
opportunities and responding to the ever-changing
economic conditions that exist in today’s world.
I would like to extend thanks to our valued
unitholders, employees and partners.
We appreciate the confidence you have placed
in us to achieve the long-term growth potential
of Morguard REIT.
Sincerely,
K. Rai Sahi
Chairman, President and Chief Executive Officer
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APPRECIATING
PROPERTIES
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APPRECIATING
PROPERTIES
M ost savvy investment analysts agree that quality real estate
appreciates over time, particularly properties that are
redeveloped or revitalized for the communities in which they
are located.
It is why there is so much value investing in Morguard REIT.
Established over 20 years ago, it has a strong portfolio of 47 top-tier
retail, office and industrial properties throughout Canada that is
currently valued at $2.5 billion.
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MORGUARD REIT2020 ANNUAL REPORT
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Morguard REIT’s diverse asset base allows it to achieve stable cash flow
consistently over time, by safeguarding it against short-term regional market
fluctuations. We have also enjoyed solid performance over the last two
decades, by responding to the desires of both our tenants and potential
occupants – enhancing, upgrading and developing our properties to meet
their needs.
Our deep roster of assets provides us with true opportunities for
success. We hold single and multi-tenant office properties in major
urban centres, neighbourhood and community shopping centres and
industrial properties that are all central to the communities in which
they reside. Each has the quality, location and amenities required
to have an impact on the way people live and work and to ensure
steady returns over the long term.
2 0 2 0 A N N U A L R E P O R T
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Working alongside the network of real estate professionals within Morguard
management services team, we have the financial acumen, strength and
drive to actively identify commercial real estate opportunities and diversify
our tenant base.
A commitment to enhancing our portfolio through prudent capital
management combined with a focus on developing our existing properties
in growth markets throughout Canada that offer real potential. This is why
our unitholders have grown to appreciate that we strive to deliver the most
consistent returns possible, year after year.
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APPRECIATING
APPRECIATING
OUR LEGACY
OUR LEGACY
Our measured, conservative approach has earned us the respect of
Our measured, conservative approach has earned us the respect of
investors. Our diversified portfolio is made up of high-quality properties
investors. Our diversified portfolio is made up of high-quality properties
that are located in important, prospering Canadian communities. And it is
that are located in important, prospering Canadian communities. And it is
diversified both in terms of asset class and location. Historically, the Trust
diversified both in terms of asset class and location. Historically, the Trust
has identified opportunities for creating value within its existing holdings
has identified opportunities for creating value within its existing holdings
through redevelopment. And our shareholders appreciate that we have
through redevelopment. And our shareholders appreciate that we have
managed to generate stable returns over the years by re-envisioning our
managed to generate stable returns over the years by re-envisioning our
assets in response to the communities that surround them.
assets in response to the communities that surround them.
$2.9B
$2.9B
REAL ESTATE ASSETS
REAL ESTATE ASSETS
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$1.2B
$1.2B
REAL ESTATE ASSETS
REAL ESTATE ASSETS
T H E P O W E R O F
T H E P O W E R O F
A S T R O N G P O R T F O L I O
A S T R O N G P O R T F O L I O
“ To maximize
“ To maximize
performance we
performance we
invested a total of
invested a total of
$17.4M in several
$17.4M in several
key locations.”
key locations.”
E N D U R I N G
E N D U R I N G
“ We have always
“ We have always
believed in taking
believed in taking
the long view.
the long view.
Diversify. Invest.
Diversify. Invest.
Strengthen.”
Strengthen.”
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MORGUARD REIT2020 ANNUAL REPORT
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We also have existing centres that have the space to add additional
entertainment or service retail or to be transformed into distribution
or warehousing facilities that are becoming increasingly important
as online shopping grows in popularity.
The space in our office buildings is not being used to full capacity due to
COVID-19 work-from-home legislation. However, this will change as the
pandemic subsides and we create value by responding to the needs of
the larger business community – creating spaces that work for them and
performing renovations and building upgrades that will attract new tenants.
2 0 2 0 A N N U A L R E P O R T
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As always, we will focus on the long term and opportunities that exist to
strengthen our diversified portfolio of retail, office and industrial real estate.
We will meet the needs of our tenants and reinvest in our properties to help
ensure our ongoing marketability.
Appreciating where you are and what you need to do to be exactly where you
want to be. This is how you build a high-quality, diverse real estate portfolio
that delivers consistent value over time. And how we have effectively managed
to earn the appreciation of our unitholders, year after year.
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2020 FINANCIAL AND
OPERATING HIGHLIGHTS
The pandemic outbreak triggered a challenging period for all, including Morguard REIT. But we were
able to demonstrate the strength and resilience that exists in our portfolio due to our diversification.
We continued to collect rents and maintained relatively good occupancy given the circumstances
of 2020.
We at Morguard REIT mobilized a crisis management team that was committed to maintaining
a safe environment for our tenants, employees and visitors. And we implemented measures to help
reduce the spread of COVID-19. Our business strategy has positioned us effectively for the long run.
Having a long-term focus, means that we can follow the most prudent path, rather than implement
short-term measures that may not be in our best interests in the future. Our diversified portfolio
spreads our risk across asset types and regions, minimizing the impact unexpected events may
have on our revenue. And our ongoing efforts to strengthen and maintain our relationships with our
tenants, means that we are there for them when times are tough, building goodwill that will serve
to maintain their ongoing patronage when conditions improve. Equally important, we are able to
maintain a steady income stream during economic downturns thanks to our long-term leases and
varied expiration dates.
The Trust has provided stable dividends for
10 years. However, in April 2020, it was announced
that distributions would be reduced to $0.04 per
unit from $0.08 per unit effective as of May 2020,
due to the economic situation. A further reduction
was announced in February 2021 to $0.02 per unit.
This retained cashflow will provide the REIT with
enhanced flexibility, putting it in an excellent position
to meet the needs of the continuing development
program and other capital priorities. This will
ultimately serve to improve the value and quality of
the portfolio, and result in an enhanced future FFO.
D I S T R I B U T I O N S – P ER U N I T
In Dollars
6
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$
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R E A L E S TAT E P O R T F O L I O R E S U LT S
The Trust is a closed-ended real estate trust that owns a diversified portfolio of 20 retail assets,
23 office assets and four industrial properties located in the following six Canadian provinces: B.C.,
Alberta, Saskatchewan, Manitoba, Ontario and Quebec. Our portfolio of 47 properties has a book
value of $2.5 billion with approximately 8.3 million square feet of leasable space.
14
N O I BY A S S E T C L A S S
1 48% Office
2 50% Retail
3
2% Industrial
1
2
3
N O I BY P ROV I N C E
17% British Columbia
29% Alberta
6% Saskatchewan
9% Manitoba
34% Ontario
5% Quebec
Our portfolio is diversified across both
asset classes and regions, providing
us with resiliency against fluctuating
market conditions.
Our office assets consist of single
and multi-tenant properties in major
urban centres. Our retail assets are
dominant regional enclosed shopping
centres as well as neighbourhood and
community shopping centres.
And our industrial properties include
warehousing facilities.
Our net operating income for the year
decreased by 17.5% due to closures
as a result of the pandemic as well
as new structured arrangements.
O P ER AT I O N S M A N AG EM EN T
When the pandemic outbreak
occurred, the Trust implemented
measures to help reduce the spread of the virus. We intensified our cleaning efforts, added hand
sanitizer, posted health and safety practices and eliminated amenities deemed to be risky.
We partnered with our tenants to determine what support they required and how we could assist
them. We made use of the government assistance that was available and launched new marketing
programs called “New Days, New Ways” that helped ensure that employees and tenants felt safe
in their offices and retail outlets.
Collections were down in all asset classes – especially enclosed retail – due to the pandemic.
However, we worked with tenants to review their situation and consider rent deferrals as necessary.
We were supportive of small business retail tenants, some of whom, were open for business.
We were fortunate because our strong government presence in our office tenancy mitigated the
risk of non-payment for this asset class.
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MORGUARD REIT2020 ANNUAL REPORT
2 0 2 0 F I N A N C I A L A N D O P E R AT I N G H I G H L I G H T S
Our occupancy levels dipped slightly versus a year ago for the retail and office classes due to the
pandemic, but our industrial occupancy increased slightly, as warehousing became even more vital.
RENTA L RE V ENUE A ND OCCUPA NCY
D E C E M B E R 3 1, 2 0 2 0
A S S E T C L A S S
Office
Industrial
Retail – Community Strip
Retail – Enclosed
D E V EL O P M EN T
R E N TA L R E V E N U E
O C C U PA N C Y
43%
1%
15%
41%
88.7%
93.3%
98.3%
93.1%
We are re-envisioning some of our assets, redefining spaces, bringing in new tenants and
responding to the needs of the communities in which they are located. At Pine Centre Mall in Prince
George, B.C., the first phase of the redevelopment of the former Sears premises is complete. The
new wing consists of approximately 76,000 square feet of redeveloped GLA. In addition, the former
Lowe’s premises has been re-tenanted with a new 38,850 square foot grocery store with expected
completion in 2022. Capital improvements are being undertaken at The Centre in Saskatoon and
Heritage Place in Ottawa.
C A P I TA L M A N AG EM EN T
The Trust is in an excellent liquidity position to
successfully ride through the pandemic and to
maintain its continuing development priorities
that will improve the value and quality of its
portfolio. The Trust had liquidity of $141.9 million
as well as an unencumbered asset pool of
$321.9 million in order to raise necessary capital,
if applicable. It can also reduce exposure through
refinancing, with the current average mortgage
rate sitting at 3.8%.
L I Q U I D I T Y A N D U N EN C U M B ER ED A S S E T S
In Millions of Dollars
1 $141.9 Liquidity
2 $321.9 Unencumbered Assets
1
2
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F I N A N C I A L R E S U LT S
Due to the pandemic, 2020 was a challenging year for Morguard REIT. Revenue from its real estate
properties decreased by 7% to $253.8 million. This, due primarily to increased vacancy, failed tenants,
restructured arrangements, reduced recoveries of operating costs and rent relief provided to tenants.
Property operating expenses decreased due to lower repair and maintenance expenses as work
was deferred to minimize the risk of spreading the virus.
Collections decreased as some tenants were unable to fulfil their rent obligations. However, some
rent payment solutions were implemented that will involve an exchange of rights or an additional
lease term that will benefit the Trust in the long run.
F I N A N C I A L H I G H L I G H T S
I N T H O U S A N D S O F D O L L A R S , E X C E P T P E R U N I T A M O U N T S
AS AT DECEMBER 31
2016
2017
2018
2019
2020
Revenue from real estate properties
$280,726
$278,754
$276,473
$273,074
$253,764
Net operating income
$160,500
$157,025
$152,078
$149,961
$123,778
Fair value losses on real estate properties $(51,643)
$(31,225)
$(18,602)
$(73,850)
$(419,766)
Net (loss)/income
$57,207
$67,306
$73,015
$14,840
$(357,419)
Funds from operations
$113,500
$100,766
$94,992
$90,894
$66,924
Adjusted funds from operations
$87,091
$74,983
$69,394
$66,063
$51,564
Net (loss)/income – basic
Net (loss)/income – diluted
Funds from operations – basic
Funds from operations – diluted
$0.94
$0.93
$1.87
$1.81
Adjusted funds from operations – basic
$1.43
Adjusted funds from operations – diluted
$1.41
$1.11
$1.05
$1.66
$1.57
$1.24
$1.20
Cash Distributions per unit
$0.96
$0.96
$1.20
$1.12
$1.56
$1.48
$1.14
$1.12
$0.96
$0.24
$0.24
$1.50
$1.43
$1.09
$1.07
$0.96
($5.75)
($5.75)
$1.08
$1.06
$0.83
$0.83
$0.64
Payout ratio – Adjusted funds from operations 67.1%
77.4%
84.2%
88.1%
77.1%
Weighted average number of units
as at year-end (in thousands) – Basic
60,750
60,622
60,705
60,711
62,108
17
MORGUARD REIT2020 ANNUAL REPORT
2 0 2 0 F I N A N C I A L A N D O P E R AT I N G H I G H L I G H T S
BALANCE SHEETS
I N T H O U S A N D S O F C A N A D I A N D O L L A R S
A S AT D E C E M B E R 3 1
A S S E T S
Non-current assets
Real estate properties
Right-of-use asset
Equity-accounted investment
Current assets
Amounts receivable
Prepaid expenses and other
Cash
2 0 2 0
2 0 19
$2,499,955
242
20,496
2,520,693
27,756
637
8,647
37,040
$2,892,103
324
23,705
2,916,132
14,314
1,112
5,783
21,209
Total assets
$2,557,733
$2,937,341
L I A B I L I T I E S A N D U N I T H O L D E R S ’ E Q U I T Y
Non-current liabilities
Mortgages payable
Convertible debentures
Lease liabilities
Accounts payable and accrued liabilities
Current liabilities
Mortgages payable
Convertible debentures
Lease liabilities
Accounts payable and accrued liabilities
Morguard loan payable
Bank indebtedness
Total liabilities
Unitholders’ equity
$918,256
—
10,862
5,230
934,348
204,464
172,805
131
40,910
18,000
29,417
465,727
1,400,075
1,157,658
$2,557,733
$902,708
170,753
10,993
4,550
1,089,004
165,640
—
123
47,448
32,500
65,158
310,869
1,399,873
1,537,468
$2,937,341
18
STATEMENTS OF (LOSS)/INCOME AND COMPREHENSIVE (LOSS)/INCOME
I N T H O U S A N D S O F C A N A D I A N D O L L A R S , E X C E P T P E R U N I T A M O U N T S
F O R T H E Y E A R E N D E D D E C E M B E R 3 1
Revenue from real estate properties
Property operating costs
Property operating expenses
Property taxes
Property management fees
Interest expense
General and administrative
Amortization expense
Other income
Fair value losses on real estate properties
Net (loss)/income from equity-accounted investment
2 0 2 0
$253,764
(74,171)
(47,822)
(7,993)
123,778
(56,376)
(3,587)
(82)
—
(419,766)
(1,386)
2 0 19
$273,074
(66,800)
(47,266)
(9,047)
149,961
(58,006)
(4,271)
(83)
45
(73,850)
1,044
Net (loss)/income and comprehensive (loss)/income
($357,419)
$14,840
N E T ( L O S S ) / I N C O M E P E R U N I T
Basic
Diluted
($5.75)
($5.75)
$0.24
$0.24
19
MORGUARD REIT2020 ANNUAL REPORT
2 0 2 0 F I N A N C I A L A N D O P E R AT I N G H I G H L I G H T S
STATEMENT OF UNITHOLDERS’ EQUITY
I N T H O U S A N D S O F C A N A D I A N D O L L A R S , E X C E P T N U M B E R O F U N I T S
NUMBER OF
UNITS
ISSUE OF
UNITS
RETAINED
EARNINGS
EQUITY
COMPONENT
OF
CONVERTIBLE
DEBENTURES
CONTRIBUTED
SURPLUS
TOTAL
UNITHOLDERS’
EQUITY
Unitholders’ equity, January 1, 2019
60,694,053
$612,183
$961,773
$4,594
$1,864
$1,580,414
Net income
Distributions to unitholders
Issue of units – DRIP1
—
—
41,486
—
—
497
14,840
(57,786)
(497)
—
—
—
—
—
—
14,840
(57,786)
—
Unitholders’ equity, December 31, 2019
60,735,539
612,680
918,330
4,594
1,864
1,537,468
Repurchase of units
Net loss
Distributions to unitholders
Issue of units – DRIP1
(197,300)
(1,944)
—
—
—
—
3,586,976
18,174
991
(357,419)
(21,438)
(18,174)
—
—
—
—
—
—
—
—
(953)
(357,419)
(21,438)
—
Unitholders’ equity, December 31, 2020
64,125,215
$628,910
$522,290
$4,594
$1,864
$1,157,658
1. Distribution Reinvestment Plan (“DRIP”).
20
STATEMENTS OF CASH FLOWS
I N T H O U S A N D S O F C A N A D I A N D O L L A R S
F O R T H E Y E A R E N D E D D E C E M B E R 3 1
O P E R AT I N G A C T I V I T I E S
Net (loss)/income
Add items not affecting cash
Distributions from equity-accounted investment, net
Additions to tenant incentives and leasing commissions
Net change in non-cash operating assets and liabilities
Cash provided by operating activities
F I N A N C I N G A C T I V I T I E S
Proceeds from new mortgages
Financing costs on new mortgages
Repayment of mortgages
Repayments on maturity
Principal instalment repayments
Payment of lease liabilities, net
Repayment of bank indebtedness, net
Decrease in Morguard loan receivable
(Repayment of)/proceeds from Morguard loan payable, net
Distributions to unitholders
Units repurchased for cancellation
Cash used in financing activities
I N V E S T I N G A C T I V I T I E S
Capital expenditures on real estate properties
Expenditures on properties under development
Proceeds from sale of real estate properties, net
Cash used in investing activities
Net change in cash
Cash, beginning of period
Cash, end of period
2 0 2 0
2 0 19
($357,419)
$14,840
424,830
1,823
(3,490)
(18,825)
46,919
205,665
(783)
(113,818)
(37,348)
(123)
(35,741)
—
(14,500)
(21,438)
(953)
(19,039)
(9,650)
(22,166)
6,800
(25,016)
2,864
5,783
$8,647
76,324
2,085
(3,955)
64
89,358
140,892
(667)
(145,892)
(34,237)
(116)
(2,502)
10,000
32,500
(57,786)
—
(57,808)
(18,515)
(33,818)
15,914
(36,419)
(4,869)
10,652
$5,783
21
MORGUARD REIT2020 ANNUAL REPORT
2020 REAL ESTATE PORTFOLIO
Morguard REIT is a diversified portfolio of office, retail and industrial properties located in six provinces across Canada.
We are committed to identifying opportunities that further enhance our commercial real estate portfolio and diversifying
our tenant base.
RETAIL PROPERTIES
PROPERTY
CITY
PROV.
OWNERSHIP
INTEREST
(%)
TOTAL
AREA
(SF)
OWNERSHIP
AREA
(SF)
OCCU-
PANCY
(%)
TOP TENANTS
Burquitlam Plaza
Coquitlam
BC
100
68,000
68,000
Pine Centre Mall•2
Prince George
BC
100
446,500
446,500
95
99
Bosley’s Pet Food Plus, CIBC, Dollarama,
Shoppers Drug Mart
B.C. Liquor, Dollarama, Shoppers Drug Mart,
Sport Chek, Winners
Shelbourne Plaza
Victoria
Airdrie Co-op Centre
Airdrie
Airdrie RONA Centre
Heritage Towne Centre
Airdrie
Calgary
BC
AB
AB
AB
100
57,000
57,000
100
A&W, Fairway Market, Liquor Distribution Branch,
Scotiabank, TD Canada Trust
100
70,000
70,000
100
100
100
44,000
131,000
44,000
131,000
100
100
Co-Op Grocery Store, Co-Op Liquor Store,
Orangetheory Fitness, TD Canada Trust
Lubexx, Peavey Mart, Tim Hortons
Ashley Furniture, Dollarama, Perfect Home,
Urban Barn
Prairie Mall•3
Parkland Mall•3
The Centre•3
Shoppers Mall•2
Grande Prairie
AB
50
263,000
131,500
Red Deer
AB
100
444,500
444,500
Saskatoon
SK
100
497,000
497,000
Brandon
MB
100
361,000
361,000
Charleswood Centre
Winnipeg
MB
100
123,000
123,000
94
89
95
92
97
Ardene, Dollarama, Marshalls, Shoppers Drug Mart,
Urban Planet
Ardene, Dollarama, GoodLife Fitness, Sketchers,
Staples, The Keg Steakhouse, Walmart, Winners
Ardene, Best Buy, Cineplex, Saskatoon Co-op
Food Store, Shoppers Drug Mart, Sport Chek
Ardene, Capitol Theatre, GoodLife Fitness,
Shoppers Drug Mart, Sobeys Extra, Sport Chek
Boston Pizza, Dollarama, Liquor Mart, Safeway,
Shoppers Drug Mart
Southdale Centre
Winnipeg
MB
100
175,500
175,500
94
Bank of Montreal, Dollarama, Pharma Plus,
Walmart
Aurora Centre
Aurora
ON
100
304,000
304,000
Cambridge Centre•1
Cambridge
ON
100
650,000
650,000
99
90
Market Square
Kanata
Wonderland Corners
London
ON
ON
100
68,000
68,000
100
100
46,500
46,500
100
Kingsbury Centre
Mississauga
ON
100
70,000
70,000
100
Hampton Park Plaza
Ottawa
St. Laurent•2
Ottawa
Woodbridge Square
Vaughan
ON
ON
ON
100
102,000
102,000
100
797,500
797,500
96
95
50
112,000
56,000
100
Canadian Tire, Cineplex Odeon, GoodLife Fitness,
Petsmart, Sobeys
Cambridge Ice Centre, Galaxy, Hudson’s Bay, Indigo,
Mark’s Work Warehouse, Marshalls, Sport Chek
Anytime Fitness, Farm Boy, LCBO, TD Canada Trust,
Taco Bell
Congee Chan, Swiss Chalet, Sugar Marmalade,
The Alley Bubble Tea, YMCA of Western Ontario
Buduchnist Credit Union, Cordi Bakery, Longo’s,
Pump On Rathburn, Shoppers Drug Mart
East Side Mario’s, Food Basics, Ontario Breast
Screening Program, Pharma Plus, Scotiabank
GoodLife Fitness, Hudson’s Bay, Intact Financial,
Shoppers Drug Mart, Sport Chek, Willis College
Cucina Bella, Moose & Firkin, Nations Fresh Foods,
Scotiabank, Wellmedica
Total Retail
4,830,500
4,643,000
C E R T I F I C AT I O N S
•1 BOMA Platinum •2 BOMA Gold •3 BOMA Certified
22
OFFICE PROPERTIES
PROPERTY
CITY
PROV.
OWNERSHIP
INTEREST
(%)
TOTAL
AREA
(SF)
OWNERSHIP
AREA
(SF)
OCCU-
PANCY
(%)
TOP TENANTS
111 Dunsmuir•3 •6
Chancery Place•3
Seymour Place
207 and 215 9th Avenue SW•5 •6
505 3rd Street SW•6
7315 8th Street NE
Centre 810
Citadel West
National Bank Building
Deerport Centre•4
Duncan Building•4
Petroleum Plaza•2 •4
Scotia Place•2 *•3
301 Laurier Avenue
525 Coventry
Green Valley Office Park•4
Heritage Place•4
St. Laurent Business Centre•4
Standard Life •4
Time Square•4
200 Yorkland•4
77 Bloor Street West•1 •3 •5 •7
Place Innovation•3 •4
Total Office
C E R T I F I C AT I O N S
Vancouver
BC
100
222,000
222,000
92
Vancouver
BC
100
142,500
142,500
100
Fatburger, Ricky’s All Day Grill,
Stantec Consulting Ltd, Wood Canada Limited
Boston Pizza, Min of Citizen’s Serv,
Studeo 55 Fitness Inc, Victoria’s Health Inc
Victoria
Calgary
Calgary
Calgary
Calgary
Calgary
Calgary
Calgary
Calgary
Edmonton
BC
AB
AB
AB
AB
AB
AB
AB
AB
AB
100
100
235,500
636,500
235,500
636,500
50
142,000
71,000
100
100
100
100
100
100
50
19,500
77,500
78,500
49,000
81,000
43,500
19,500
77,500
78,500
49,000
81,000
43,500
304,000
152,000
Ottawa
Ottawa
Ottawa
Ottawa
Ottawa
Ottawa
Ottawa
Toronto
Toronto
ON
ON
ON
ON
ON
ON
ON
ON
ON
Saint-Laurent
QC
50
100
100
123,000
123,000
50
217,000
108,500
100
50
100
88,500
378,000
111,000
88,500
189,000
111,000
100
150,500
150,500
50
50
396,000
198,000
896,000
448,000
5,025,000
3,393,500
100
Ministry of Citizens’ Service
98
78
—
90
Downtown Dental, Obsidian Energy Ltd,
Sukiyaki House Restaurant
Bank of China, Canadian Energy Pipeline Association,
Morguard Investments Ltd, Strike Group LP
Canadian Cattle Identification Agency,
CIMA Canada Inc, Skyplan Services Limited
100
CH2M Hill Canada Limited
43
100
100
98
Arcardis Canada Inc., Plexina Inc, Topcon Positioning
Systems Inc, Pentagon Freight Services Canada
RCMP
National Bank of Canada
Alberta Infrastructure, M. Shewchuk &
S. Withanachchi Prof Corp, Vision Travel
APEGA, Bank of Nova Scotia, Duncan and Craig,
Grant Thornton
73
82
50
98
65
83
97
95
The Ottawa Hospital, The Ottawa Fertility Centre,
AD Dynamics, Canadian Physiotherapy Association
Public Services and Procurement Canada,
The Dominion of Canada General Insurance, Winners
Positive Venture Group, CBI Limited Partnership
Public Services and Procurement Canada
Public Services and Procurement Canada, BBB
Urban Developments Ottawa, Embassy of Kuwait
AG Simpson Automotive Inc, Ferring Inc,
Investors Group, Versa Systems Ltd, Vertex Data LP
Avana Capital Corporation, Harry Rosen, Realstar
Management, The Toronto Dominion Bank, Sephora
Bombardier Inc, AJW Technique, Accedian
Networks Inc, Amdocs, Ciena Canada Inc
Edmonton
AB
20
565,000
113,000
55
26,000
42,500
13,000
42,500
19
Moores The Suit People
100
Assent Compliance Inc
•1 LEED Gold •2 LEED Silver •3 BOMA Gold •4 BOMA Silver •5 Wired Gold •6 Energy Star Certified •7 RHF Accessibility – BOMA Toronto * Pending
INDUSTRIAL PROPERTIES
PROPERTY
1875 Leslie
CITY
PROV.
OWNERSHIP
INTEREST
(%)
TOTAL
AREA
(SF)
OWNERSHIP
AREA
(SF)
OCCU-
PANCY
(%)
TOP TENANTS
Toronto
ON
100
52,000
52,000
82
Body and Soul Fitness Corp, Goose and Firkin,
2041-2151 McCowan
Toronto
279 Yorkland
285 Yorkland
Total Industrial
Total
Toronto
Toronto
ON
ON
ON
100
197,000
197,000
95
Movie Poster Warehouse, Poolmaster Canada
Every Green International Inc, Louise Kool & Galt,
Paragon Industrial Photographic, TuxMat
100
100
18,000
25,000
18,000
25,000
100
100
Arz Fine Foods Express Ltd
The Mitchell Partnership Inc
292,000
292,000
10,147,500
8,328,500
23
MORGUARD REIT2020 ANNUAL REPORT
CORPORATE
INFORMATION
TRUSTEES
OFFICERS
K. Rai Sahi
Chairman, President and
Chief Executive Officer
Andrew Tamlin
Chief Financial Officer
Beverley G. Flynn
Senior Vice President,
General Counsel
and Secretary
Paul Miatello
Senior Vice President
Angela Sahi
Senior Vice President
Michael A.J. Catford 1, 2, 3
Real Estate Consultant
Bart S. Munn 1, 2
Corporate Director
Timothy J. Murphy
Partner, McMillan LLP
K. Rai Sahi
Chairman and
Chief Executive Officer
Morguard Corporation
Antony K. Stephens 1, 3
Corporate Director
Donald W. Turple
Real Estate Consultant
Timothy J. Walker 1, 2, 3
Corporate Director
1 Independent Trustee
2 Audit Committee
3 Human Resources and
Governance Committee
INVESTOR
INFORMATION
Head Office
Morguard REIT
55 City Centre Drive
Suite 1000
Mississauga, ON
L5B 1M3
T 905-281-4800 or
1-800-928-6255
info@morguard.com
Transfer Agent
Computershare Trust
Company 1-800-564-6253
www.computershare.com
Investor Relations
Visit our website at
www.morguard.com or
view our filings on SEDAR
at www.sedar.com.
Listing
Toronto Stock Exchange
For additional information, contact:
Andrew Tamlin
Chief Financial Officer
Beverley G. Flynn
Senior Vice President,
General Counsel and Secretary
T 905-281-4800
info@morguard.com
Symbol
MRT.UN
MRT.DB
Eligibility
RRSP
RRIF
DPSP
RPP
TFSA
Auditors
Ernst & Young LLP
Principal Bankers
Bank of Montreal,
Toronto-Dominion Bank
24
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MORGUARD REIT (TSX:MRT.UN)
Morguard Real Estate Investment Trust is a closed-end trust listed on the Toronto Stock
Exchange (TSX) under the symbol MRT.UN. The Trust had total real estate assets of
$2.5 billion as at December 31, 2020.
The mandate of the Trust is to accumulate a Canadian portfolio of high-quality real estate
assets – then actively manage the portfolio to generate steady, dependable returns for
unitholders, through a stable and increasing cash flow. This offers the potential for
long-term capital appreciation.
The Trust owns a diversified real estate portfolio of 47 commercial properties consisting
of 8.3 million square feet of gross leasable area located in six provinces. The real estate
portfolio primarily includes well-located, high-quality office properties in major urban
centres, large enclosed full-scale regional shopping malls that are dominant in their
respective markets, neighbourhood and community shopping centres and a small group
of industrial properties.
MORGUARD REAL ESTATE
INVESTMENT TRUST
55 City Centre Drive
Suite 1000
Mississauga, ON
L5B 1M3
905-281-4800
MORGUARD.COM
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