Morguard North American Residential Real Estate Investment Trust

Section1: Company Overview and Fundamental Insights:

Morguard North American Residential Real Estate Investment Trust (TSX: MRG.UN) is an open-end real estate investment trust. The REIT invests in multi-suite residential rental properties in Canada and the United States. The REIT operates into two reportable segments, Canada and the United States. The United States contributes to the vast majority of revenue.

Kalkine’s Real Estate Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

The top 10 shareholders together form ~30.81% of the total shareholding. Morguard Corp. and Sahi (Kuldip Rai) hold a maximum stake in the company at ~23.24% and ~2.66%, respectively.

The company reported rising financials in Q1 2026, where it clocked healthy growth under its Gross Margin, which is a key positive. Furthermore, it witnessed elevated Pretax Margin and EBITDA Margin, displaying its healthy operational strength.

Section 2: Business Updates and Financial Highlights

The picture below gives an overview of the company’s recent activity, such as an announcement regarding Strategic Acquisition Progress.

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary

The stock has witnessed a downside of ~6.39% and ~10.08% over the last 1 week and 3 months respectively. Moreover, it is trading below the average 52-week high price of CAD 19.20 and 52-week low price of CAD 16.31, providing an opportunity to accumulate the stock.

Valuation Methodology: EV to Sales Based Relative Valuation (Illustrative):

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 04, 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.