/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
WINNIPEG, MB, May 21, 2026 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the three months ended March 31, 2026. This press release should be read in conjunction with the REIT's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("Q1 2026 MD&A") for the three months ended March 31, 2026, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca.
"Q1 has shown stable occupancy with rental increases of 1.9% over the same period last year. We anticipate continued modest increases throughout the remainder of 2026, due to reduced immigration and non-renewal of existing non-resident visa's" commented Mr. William Martens, Chief Executive Officer of the REIT.
Q1 2026 Quarterly Highlights
-- Same Property Revenue increased by 2.22% in the three months ended March
31, 2026 compared to same period 2025
-- $79,261 of positive cash was generated during the three months ended
March 31, 2026
-- Reported Net Asset Value per Unit ("NAV") of $2.47 at March 31, 2026
compared to $2.46 at December 31, 2025
-- Average occupancy rate of 98.37% reported for the three months ended
March 31, 2026 in line with 98.14% in the same period 2025
Operations Summary
Three months ended March 31
Portfolio Operation Information 2026 2025
Number of properties 4 4
Number of suites 516 516
Average occupancy ate 98.37 % 98.14 %
Average rental rate to date $1,760 $1,727
Three months ended March 31
Reconciliation of Same Property NOI(1) to IFRS 2026 2025
Revenue from investment properties $ 2,694,078 $ 2,635,142
Expenses:
Property operating expenses 693,151 694,292
Realty taxes 357,204 317,432
Total property operating expenses 1,050,355 1,011,724
Same Property NOI(1) $ 1,643,723 $ 1,623,418
(1) Same Property Portfolio consists of 4 multi-residential
properties owned by the REIT for comparable periods
in Q1 2026 and Q1 2025 -- See "Notice with respect
to Non-IFRS Measures" below.
Reconciliation of Debt-to-Gross Book At March 31, 2026 At December 31, 2025
Value ratio
Total interest-bearing debt $ 100,015,308 $ 100,358,349
Total assets on balance sheet 150,363,625 150,588,106
Debt-to-Gross Book Value ratio 66.52 % 66.64 %
Reconciliation of Debt Service Three months ended Year ended
Coverage ratio March 31, 2026 December 31, 2025
Net Operating Income for the period
ended $ 1,643,723 $ 6,394,714
Mortgage payments for the period
ended 1,244,130 4,976,521
Debt Service Coverage ratio 1.32 1.28
Weighted average term to maturity on 48.61 months 51.60 months
fixed rate debt
Weighted average interest rate on
fixed debt 3.10 % 3.09 %
Financial Summary
The REIT generated FFO and AFFO per Unit of $0.0267 and $0.0256, respectively, during the three months ended March 31, 2026. FFO and AFFO are defined in "Non-IFRS Measures" in the March 31, 2026 MD&A and below under "Notice with respect to Non-IFRS Measures".
Reconciliation of Net Income and Comprehensive Three months ended March 31
Income
to FFO and AFFO
2026 2025
Revenue from investment properties $ 2,694,078 $ 2,635,142
Property operating expenses (693,151) (694,292)
Realty taxes (357,204) (317,432)
Net Operating Income 1,643,723 1,623,418
NOI Margin 61.01 % 61.61 %
General and administrative (224,114) (224,660)
Interest income 26,066 33,920
Finance costs (968,990) (978,909)
Fair value loss on:
Investment properties (330,233) (38,785)
Unit-based compensation (6,100) (18,454)
Exchangeable Units (98,936) (1,148,795)
Net income (loss) and
comprehensive income (loss) $ 41,416 $ (752,265)
Three months ended March 31
Reconciliation of FFO 2026 2025
Net income (loss) and comprehensive income
(loss) 41,416 (752,265)
Distributions on Exchangeable Units 43,555 40,730
Fair value loss on properties 330,233 38,785
Fair value loss on unit-based compensation 6,100 18,454
Fair value loss on Exchangeable Units 98,936 1,148,795
FFO 520,240 494,499
Weighted average number of Units 19,498,838 19,498,838
FFO/unit $ 0.0267 $ 0.0254
Reconciliation of AFFO
FFO $ 520,240 $ 494,499
Capital expenditures (20,233) (38,785)
AFFO 500,007 455,714
Weighted average number of Units 19,498,838 19,498,838
AFFO/unit $ 0.0256 $ 0.0234
AFFO payout ratio 16.67 % 16.69 %
NAV and NAV per Unit Reconciliation At March 31, 2026 At December 31, 2025
Unitholders' Equity $41,039,607 $41,039,253
Exchangeable Units 7,618,069 7,519,133
NAV 48,657,676 48,558,386
Trust Units 9,605,242 9,605,242
Exchangeable Units 9,893,596 9,893,596
Deferred Units 238,086 214,040
Total Units oustanding 19,736,924 19,712,878
NAV per unit $2.47 $2.46
The overall increase in NAV from $2.46 at December 31, 2025 to $2.47 at March 31, 2026, was primarily due to net operating income less finance costs and general and administrative expenses exceeding distributions.
Outlook
Management is focused on growing the portfolio and Unitholder value through increasing rental rates where the market allows, future acquisition opportunities that will increase the overall size and performance of the REIT, as well as maintaining a manageable debt structure. The current debt structure of the REIT is all at fixed rates with an average remaining mortgage term of over four years. The majority of the REIT's debt is CMHC insured.
Management believes the organic growth in NAV due to paydown of debt over the mortgage terms is a positive outcome of the higher leveraged position as well as lowering the REIT's debt to GBV ratio and thereby increasing the NAV per Unit over time.
Management anticipates that demand for rental housing will remain stable due to the affordability gap in rental vs. home ownership and the potential tariffs with the United States. As interest rates remain at elevated levels and costs of construction remain relatively high, the increased costs of home ownership maintains the affordability gap.
Any increase in the portfolio's operating costs due to inflation may be offset by increases in rental rates, where the market allows, as 56 percent of the portfolio at March 31, 2026 is not under rent control or restrictive financing agreements.
About Marwest Apartment Real Estate Investment Trust
The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide holders of Units with the opportunity to invest in the Canadian multi-family rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada.
Forward-looking Statements
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