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Morguard Real Estate Investment Trust

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Industry REIT - Diversified
Employees 1001-5000
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FY2025 Annual Report · Morguard Real Estate Investment Trust
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2025
Annual Review
A diversified Canadian 
portfolio for durable returns
MORGUARD REIT

1
MORGUARD REIT  •  2025 ANNUAL REVIEW
High-Quality Canadian 
Real Estate Assets
ABOUT MORGUARD REIT
Morguard Real Estate Investment Trust is a closed-end 
trust listed on the Toronto Stock Exchange (TSX) under 
the symbol MRT.UN. We selectively acquire and actively 
manage high-quality Canadian real estate to deliver consistent 
returns. The Trust had total real estate assets of $2.2 billion 
as at December 31, 2025, comprising a diversified real estate 
portfolio of 45 commercial properties, consisting of 
approximately 8.1 million square feet of gross leasable 
area (GLA) located in six Canadian provinces.
Our properties are strategically diversified across 
three asset classes:
Retail: Our portfolio of regional shopping malls total 3.3 million 
square feet of GLA while our portfolio of community shopping 
centres amounts to 1.1 million square feet of GLA. The 
18 properties are anchored by national grocery chains, established 
retailers, banks and popular restaurant brands, ensuring stability 
and reducing reliance on any single retail category.
Office: Our mix of single- and multi-tenant office buildings 
amount to 3.5 million square feet of GLA in 23 high-quality 
properties located in major urban centres, with a tenant mix 
dominated by federal and provincial governments and major 
financial institutions.
Industrial: A smaller, strategic component of our portfolio, 
at 0.3 million square feet, with four properties designed to 
increase the diversity of our broader holdings.
By leveraging geographic and sectoral diversity, Morguard 
REIT is well positioned to navigate changing economic and 
market conditions, capitalize on market strengths and deliver 
consistent, stable cash flows. Our proactive management and 
strategic approach position the Trust as a leader in Canadian 
real estate. We remain focused on meeting diverse tenant needs, 
investing in the longevity of our assets and creating consistent 
value for unitholders over time.
TOP RETAIL TENANTS
A breakdown of the Trust’s 10 largest retail tenants 
by rental revenue as at December 31, 2025.

Top Retail Tenants
% of total 
retail revenue
# of 
locations
Canadian Chartered Banks
4.7%
15
Canadian Tire Corp.
4.2%
7
Loblaw Companies
3.8%
9
GoodLife Fitness
3.4%
5
Sobeys Inc.
3.0%
3
Cineplex Odeon
2.3%
3
Dollarama
2.3%
10
TJX (Winners and Marshalls) 
1.7%
4
Federated Co-operatives Ltd.
1.6%
2
Walmart 
1.5%
2
PLACE INNOVATION
Saint-Laurent, QC  |  903,000 SF GLA
Reflecting our commitment to innovation and 
high-quality relationships with partners who 
are advancing the industry, Morguard REIT’s 
jointly-owned Place Innovation celebrated numerous 
key developments in 2025, including a 10-year lease 
renewal with Genetec Inc., a software company, and 
the launching of one of three locations for Morguard’s 
$6.5 million Smart Building Living Lab collaboration 
with Nokia and Canada’s Centre of Excellence 
in Next Generation Networks. Place Innovation 
is conveniently located in Technopark Montreal, 
with easy access to major transportation hubs.
ESG Framework    Overview    Message    About

MORGUARD REIT  •  2025 ANNUAL REVIEW
2
Retail
4.4M SF
Office
3.5M SF
Industrial
0.3M SF
8.1M
Square Feet
Retail
61%
Office
36%
Industrial
3%
NOI
by Percent
CANADA
ABOUT MORGUARD REIT
NET OPERATING INCOME
by Asset Class
GROSS LEASABLE AREA
by Asset Class
PROVINCES
6
PROPERTIES
45 
SF OF GLA
8.1M
CANADA BY THE NUMBERS
As at December 31, 2025
ESG Framework    Overview    Message    About
Real Estate Portfolio 
by Geographic Area

MORGUARD REIT  •  2025 ANNUAL REVIEW
3
Like most transition years in the 
commercial real estate sector, 
2025 featured both challenges 
and wins for Morguard REIT. Results 
exceeded expectations, driven 
by strong retail leasing momentum 
and a one-time tax refund. 
Re-tenanting activity across office and retail 
accelerated, with stronger-than-expected 
interest indicating improved market conditions. 
In particular, vacancies in our enclosed regional 
shopping centres seemed likely to be filled by 
exciting new retailers who will add value and 
attract more pedestrian traffic to our holdings.
RESILIENT AND DURABLE PERFORMANCE
The diversity of our portfolio of Canadian 
commercial property allowed us to maintain 
consistent distributions of $0.02 per unit per 
month throughout 2025. Revenues were 
$239 million, a decline of $19.8 million, or 
7.7%, from 2024’s $259 million. Net operating 
income for the year ended December 31, 2025, 
decreased 13% compared to 2024, from 
$128 million to $112 million.
OCCUPANCY AND LEASING
Stronger than anticipated interest in our office 
properties, and reinvestment in our shopping 
centres supports expected occupancy 
gains over the next three years. Our overall 
occupancy rate for the portfolio was 85% 
in 2025. Materially affecting occupancy was 
a lease expiry for the single-tenant occupied 
Penn West Plaza, a 635,000-square-foot 
Class A Calgary office complex, followed by 
higher-than-expected leasing activity as the 
property converted to a multi-tenant asset. 
The Bay’s two disclaimed leases also affected 
occupancy while providing an opportunity 
to revitalize shopping centre assets. 
A DIVERSIFIED PORTFOLIO 
PRIMED FOR GROWTH
Office
Our strategy focusing on well-located, 
high-quality properties in major urban centres 
spurred stronger-than-anticipated interest in 
multi-tenant properties from well-established 
national tenants, reflecting the onset of 
the next cycle. In 2025, return-to-office 
mandates and re-amenitization efforts 
energized our portfolio, foretelling renewed 
leasing activity into 2027 and beyond. Having 
maintained higher-than-industry occupancy 
rates throughout pandemic-related work-from-
home mandates, the REIT’s 80.4% occupancy 
for our office portfolio in 2025 reflected the 
broader Canadian market, as did NOI declines. 
Retail
Retail fundamentals remain strong, with 
5% rental growth on enclosed malls and 
9% on community centres. Leasing activity 
continues, including two No Frills locations 
in Red Deer and Saskatoon. We are also 
advancing redevelopment of the former Sears 
space at St. Laurent Centre. NOI increased 
modestly by $1.4 million, to $68.4 million 
at year end compared to $67 million for 
the same period ended 2024. 
“The re-tenanting process in both the 
office and retail portfolios proceeded 
with more interest than expected, 
suggesting a turning of the soft 
market cycle.”
Angela Sahi
President & CEO
LETTER FROM 
THE PRESIDENT & CEO
Leadership Perspective: 
Strategic Opportunity 
and Reinvestment
ESG Framework    Overview    Message    About

Specifically, we attributed the increase largely to a 2021-2024 
tax refund partially offset by bad debt expenses in the enclosed 
mall portfolio (due to creditor protection proceedings from 
The Bay and other smaller tenants). Occupancy’s decline to 
88% will create circumstances for investment and re-tenanting 
to attract established retailers that will unlock value and 
potential in enclosed malls in 2026 and beyond.
Industrial
Reflecting the way our four industrial assets complement 
Morguard’s diversification strategy, occupancy in the sector 
increased to 97.2%. NOI for our industrial properties in 
2025 was $3.7 million versus $2.9 million for the same 
period ended 2024, an increase of $0.8 million, mainly 
due to increased basic rent and decreased vacancy costs.
PRUDENT BALANCE SHEET MANAGEMENT
Given the softer market in 2025, the Trust prioritized keeping 
debt ratios steady relative to the previous year. Overall 
liquidity for the year ended December 31, 2025, stood 
at $68 million. Unencumbered assets were consistent, 
at $219 million, as was total indebtedness to gross book 
value of total assets, at a steady 57%.
LOOKING AHEAD TOWARD GROWTH
Taking the opportunity to evaluate 2025, it was a year of 
transition and renewal. High construction costs support 
leasing demand in our enclosed centres. Office momentum 
continues, driven by targeted investment in key assets. 
And we continue to seek entitlements as we see 
development potential and embedded value in the 
Trust’s assets across the country.
In 2025, we continued our strategy of real estate leadership 
with a special partnership. Canada’s Centre of Excellence in 
Next Generation Networks (CENGN) and Nokia partnered 
with Morguard as the exclusive real estate partner to 
advance Canadian innovation with the construction 
of Smart Building Living Labs. The facilities, located at 
Place Innovation and St. Laurent Centre, enable domestic 
startups to accelerate their path to market through the 
testing of sensor, robotic and AI products. The initiative 
is just one way that Morguard is leading the way in 
Canada as we develop the future of real estate.
Finally, I want to thank unitholders for their continued 
support of the Trust, as we look forward to a bright future 
for Canada’s office, retail and industrial sectors.
Sincerely,
	
Angela Sahi
President & CEO
4
MORGUARD REIT  •  2025 ANNUAL REVIEW
LETTER FROM 
THE PRESIDENT & CEO
“Stronger than anticipated interest in our 
office properties and reinvestment in 
our shopping centres supports expected 
occupancy gains over the next three years.”
“The diversity of our portfolio of Canadian 
commercial property allowed us to maintain 
consistent distributions of $0.02 per unit 
per month throughout 2025.”
STANDARD LIFE CENTRE
Ottawa, ON  |  371,000 SF GLA  |  17 storeys
Underscoring our ongoing confidence in the Ottawa 
market, Morguard in 2025 began a modernization 
and energy retrofit project at this conveniently located 
downtown office building, set within walking distance of 
Parliament Hill and the Byward Market neighbourhood.
ESG Framework    Overview    Message    About

COMMUNITY SHOPPING CENTRES
1.1 million SF GLA  |  11 properties
Exemplifying a key benefit to our diversified commercial 
real estate strategy, our community shopping centres 
ended the year with net operating income on a same 
asset basis that increased by 2.9%, from $19.7 million in 
2024 to $20.2 million in 2025. With a 95.1% occupancy 
rate at year end, the Trust’s team expects the occupancy 
number to rise to 99% within 2026. 
5
MORGUARD REIT  •  2025 ANNUAL REVIEW
Operations
OVERVIEW
ESG Framework    Overview    Message    About
INDUSTRIAL 
OCCUPANCY
97.2% 
OCCUPANCY FOR ENCLOSED 
REGIONAL CENTRES
OCCUPANCY FOR COMMUNITY 
SHOPPING CENTRES
85.5% 
95.1% 
OFFICE 
OCCUPANCY
80.4% 
‘21
‘22
‘23
‘24
‘25
$400
$300
$200
$100
TOTAL REVENUE
In Millions of Dollars
‘21
‘22
‘23
‘24
‘25
$200
$150
$100
$50
NET OPERATING INCOME
In Millions of Dollars
‘21
‘22
‘23
‘24
‘25
$80
$60
$40
$20
FUNDS FROM OPERATIONS
In Millions of Dollars
LIQUIDITY AND UNENCUMBERED ASSETS
In Millions of Dollars
$219M
Unencumbered Assets 
$60.9M
Unused Credit Facilities  
$7.1M
Cash
St. Laurent Centre
Ottawa, ON
797,000 SF GLA

MORGUARD REIT  •  2025 ANNUAL REVIEW
6
ESG Framework    Overview    Message    About
REDUCING 
FOOTPRINTS
We’re committed 
to improving 
building efficiency, conserving 
resources and integrating 
sustainable design across 
our portfolio. Morguard’s 
long-term targets include a 
50% reduction in greenhouse 
gas (GHG) emissions by 2030 
and achieving net-zero status 
across the portfolio by 2050.
By enhancing building 
efficiency and conserving 
resources, we can make 
a significant difference. 
Our efforts include:
•	 ongoing program of major 
retrofits and conservation 
upgrades, including HVAC 
systems, lighting retrofits and 
energy-efficient windows
•	 tracking progress toward 
achieving energy, water 
and waste reduction targets
•	 embracing sustainable design 
and construction practices
INCREASING 
IMPACTS
Sustainability is 
about people as 
much as our planet. Through 
meaningful engagement 
with employees, tenants, and 
communities, we’re creating 
environments where everyone 
can thrive, with:
•	 deep retrofits that improve 
energy efficiency
•	 smart building technologies
•	 improved data collection
MANAGING 
OPPORTUNITIES 
& RISKS
We’re strengthening 
our business resilience by 
understanding and managing 
our climate-related and ESG 
risks, while actively seeking out 
opportunities to future-proof our 
assets. The approach prioritizes:
•	 robust ESG governance
•	 climate-change 
risk assessments
•	 rigorous health 
and safety standards
•	 enhanced cybersecurity 
protocols
•	 responsible supply 
chain approach
Guided by Morguard Corporation’s sustainability 
framework, our ESG efforts build on more than 
a decade of experience seeking to reduce 
environmental impact and build engaged 
communities. We view ESG as a natural 
extension of responsible management, reflecting 
our commitment to long-term success and 
sustainable growth.
The strategy is guided by our key values of 
diversity, integrity and responsibility. And each 
initiative is tracked to assess impact on returns 
and ensure that each one reflects the overall 
Morguard priority of promoting steady growth 
and stable returns for our investors.
ESG FRAMEWORK
Sustainable 
Decision-Making, 
Lasting Impact
Investing in sustainable operations for future 
generations to reduce footprints, manage risk 
and boost community engagement.
Such priorities help to future-proof our assets against 
climate and ESG-related factors. We’ll continue to 
measure, monitor and report our sustainability efforts, 
setting the stage for enduring value and impact.
111 Dunsmuir Street
Vancouver, BC
217,500 SF GLA

55 City Centre Drive
Suite 1000
Mississauga, ON
L5B 1M3
905-281-3800
Morguard.com