/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
WINNIPEG, MB, Aug. 13, 2026 /CNW/ -- Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the three and six months ended June 30, 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 ("Q2 2026 MD&A") for the three and six months ended June 30, 2026, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca.
"We are pleased with our performance in the first half of 2026, highlighted by strong occupancy, growing rental rates, positive cash flow generation, and an increase in both our distribution and net asset value per unit. These results reflect the resilience of our properties and the dedication of our team as we continue to execute on our strategy and create long-term value for our unitholders." commented Mr. William Martens, Chief Executive Officer of the REIT.
Q2 2026 Quarterly Highlights
-- On June 15th a distribution increase of 2.1% was announced on Trust
Units. The increase in distributions to Unitholders was effective to
Unitholders on record as of June 30th, 2026. Distributions increased
from $0.0171 to $0.01746 per Trust Unit on an annualized basis.
-- On April 1, 2026 a Normal Course Issuer Bid ("NCIB") commenced, 7,500
units were repurchased and cancelled at an average cost of $0.72 per
Trust Unit in Q2.
-- FFO per Unit increased by 4.81% and 5.21% for the three and six months
ended June 30, 2026 compared to the same period 2025.
-- $267,937 of positive cash was generated during the six months ended June
30, 2026.
-- Reported Net Asset Value per Unit ("NAV per Unit") of $2.47 at June 30,
2026 compared to $2.46 at December 31, 2025.
-- Reported average occupancy rate of 98.03% for the six months ended June
30, 2026 with an average increase in rental rates of 1.04% for the same
period.
-- For the three and six months ended June 30, 2026, Same Property NOI grew
by 2.82% and 2.02%, respectively, compared to the same period 2025.
Operations Summary
Three months ended June 30 Six months ended June 30
Portfolio Operation 2026 2025 2026 2025
Information
Number of properties 4 4 4 4
Number of suites 516 516 516 516
Average occupancy
ate 97.69 % 95.51 % 98.03 % 96.82 %
Average rental rate
to date $1,739 $1,730 $1,746 $1,728
Three months ended June 30 Six months ended June 30
Reconciliation of 2026 2025 2026 2025
Same Property NOI(1)
to IFRS
Revenue from
investment
properties $ 2,680,006 $ 2,579,050 $ 5,374,084 $ 5,214,192
Expenses:
Property operating
expenses 727,055 679,926 1,420,206 1,374,218
Realty taxes 358,060 348,040 715,264 665,472
Total property
operating expenses 1,085,115 1,027,966 2,135,470 2,039,690
Same Property NOI(1) $ 1,594,891 $ 1,551,084 $ 3,238,614 $ 3,174,502
(1) Same Property Portfolio consists of 4 multi-residential
properties owned by the REIT for comparable periods
in as of June 30, 2026 and 2025 -- See "Notice with
respect to Non-IFRS Measures" below.
Reconciliation of At June 30, 2026 At December 31, 2025
Debt-to-Gross Book Value
ratio
Total interest-bearing
debt $ 99,677,468 $ 100,358,349
Total assets on balance
sheet 150,326,216 150,588,106
Debt-to-Gross Book Value
ratio 66.31 % 66.64 %
Reconciliation of Debt Six months ended June30, Year endedDecember 31,
Service Coverage ratio 2026 2025
Net Operating Income for
the period ended $ 3,238,614 $ 6,394,714
Mortgage payments for the
period ended 2,488,261 4,976,521
Debt Service Coverage
ratio 1.30 1.28
Weighted average term to 45.61 months 51.60 months
maturity on 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 $0.0218 and $0.0180, respectively, during the three months ended June 30, 2026. FFO and AFFO are defined in "Non-IFRS Measures" in the June 30, 2026 MD&A and below under "Notice with respect to Non-IFRS Measures".
Reconciliation of Three months ended June 30 Six months ended June 30
Net loss and
Comprehensive
loss to FFO and AFFO
2026 2025 2026 2025
Revenue from
investment
properties $ 2,680,006 $ 2,579,050 $ 5,374,084 $ 5,214,192
Property operating
expenses (727,055) (679,926) (1,420,206) (1,374,218)
Realty taxes (358,060) (348,040) (715,264) (665,472)
Net Operating Income 1,594,891 1,551,084 3,238,614 3,174,502
NOI Margin 59.51 % 60.14 % 60.26 % 60.88 %
General and
administrative (272,998) (238,582) (497,112) (463,242)
Interest income 26,762 31,176 52,828 65,096
Finance costs (969,036) (981,066) (1,938,026) (1,959,975)
Fair value (loss)
gain on:
Investment
properties (193,615) 472,047 (523,848) 433,262
Unit-based
compensation (1,666) (9,998) (7,766) (28,452)
Exchangeable Units (296,808) (835,487) (395,744) (1,984,282)
Net loss and
comprehensive loss $ (112,470) $ (10,826) $ (71,054) $ (763,091)
Three months ended June 30 Six months ended June 30
Reconciliation of 2026 2025 2026 2025
FFO
Net loss and
comprehensive loss $ (112,470) $ (10,826) $ (71,054) $ (763,091)
Distributions on
Exchangeable Units 43,555 40,730 86,147 82,765
Fair value loss
(gain) on
properties 193,615 (472,047) 523,848 (433,262)
Fair value loss on
unit-based
compensation 1,666 9,998 7,766 28,452
Fair value loss on
Exchangeable Units 296,808 835,487 395,744 1,984,282
FFO 423,174 403,342 942,451 899,146
Weighted average
number of Units 19,390,066 19,498,838 19,444,151 19,498,838
FFO/unit $ 0.0218 $ 0.0207 $ 0.0485 $ 0.0461
Reconciliation of
AFFO
FFO $ 423,174 $ 403,342 $ 942,451 $ 899,146
Capital expenditures (73,615) (77,953) (93,848) (116,738)
AFFO 349,559 325,389 848,603 782,408
Weighted average
number of Units 19,390,066 19,498,838 19,444,151 19,498,838
AFFO/unit $ 0.0180 $ 0.0167 $ 0.0436 $ 0.0401
AFFO payout ratio 23.88 % 24.12 % 19.66 % 19.75 %
NAV and NAV per Unit Reconciliation At June 30, 2026 At December 31, 2025
Unitholders' Equity $40,880,431 $41,039,253
Exchangeable Units 7,914,877 7,519,133
NAV 48,795,308 48,558,386
Trust Units 9,597,742 9,605,242
Exchangeable Units 9,893,596 9,893,596
Deferred Units 262,302 214,040
Total Units oustanding 19,753,640 19,712,878
NAV per unit $2.47 $2.46
The overall increase in NAV per Unit from $2.46 at December 31, 2025 to $2.47 at June 30, 2026, was primarily due to net operating income less finance costs and general and administrative expenses exceeding distributions.
Outlook
Management remains focused on enhancing the portfolio and creating long-term Unitholder value through continued rental rate growth where market conditions support increases, pursuing strategic acquisition opportunities that strengthen the size and performance of the REIT, and maintaining a prudent and flexible capital structure. The REIT is well positioned with a stable debt profile, consisting entirely of fixed interest rate mortgages with an average remaining term of more than three years. In addition, the majority of the REIT's debt is CMHC-insured, providing added stability and support to the capital structure.
Management views the REIT's organic net asset value ("NAV") growth as a meaningful benefit of its current capital structure. As mortgage principal is repaid over time, leverage is reduced, contributing to a lower debt-to-GBV ratio and supporting steady growth in NAV per Unit. This deleveraging effect is expected to enhance Unitholder value over the long term.
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