Month-to-month Dividend Inventory In Focus: Morguard Actual Property Funding Belief

Revealed on February eleventh, 2026 by Bob Ciura

Month-to-month dividend shares have immediate enchantment for a lot of revenue traders. Shares that pay their dividends every month provide extra frequent payouts than conventional quarterly or semi-annual dividend payers.

For that reason, we created a full record of over 100 month-to-month dividend shares.

You’ll be able to obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter like dividend yields and payout ratios) by clicking on the hyperlink beneath:

 

Morguard Actual Property Funding Belief (MGRUF) is a month-to-month dividend inventory with a excessive yield. This probably makes the inventory extra engaging for revenue traders on the lookout for extra frequent dividend payouts.

This text will analyze Morguard Actual Property Funding Belief in larger element.

Enterprise Overview

Morguard REIT owns a diversified Canadian business actual property portfolio comprising 45 properties with 8 million sq. toes of gross leasable space, weighted primarily towards retail (~55%), and adopted by workplace (~ 40%) and a smaller industrial (~ 5%) part.

The retail portfolio is cut up between enclosed purchasing facilities and grocery- and service-anchored neighborhood strip facilities, whereas the workplace portfolio mixes single- and dual-tenant buildings (many leased to authorities or massive institutional customers) with multi-tenant city workplace properties.

Property are situated throughout six Canadian provinces, with the biggest publicity in Ontario and Western Canada, and the portfolio consists of each wholly owned properties and a restricted variety of three way partnership pursuits.

Morguard REIT generated $180 million in income final yr.

On October twenty ninth, 2025, Morguard REIT posted its Q3 outcomes for the quarter ended September thirtieth, 2025. Income from actual property properties was $41.5 million, down 9% yr over yr, reflecting weaker workplace efficiency following the expiry and reset of an above-market lease at Penn West Plaza.

Development was partially offset by steady leads to neighborhood strip retail and industrial belongings. Web working revenue fell by 3% yr over yr to $22.5 million, as continued strain within the workplace portfolio outweighed stronger enclosed mall efficiency backed by decrease emptiness prices and a property tax refund.

FFO was $10.8 million, with FFO per unit at $0.14, flat yr over yr. For FY2025, we anticipate FFO/share of $0.45.

Development Prospects

Morguard REIT’s FFO per share was comparatively resilient from 2015 by way of 2019. The closure of main division retailer anchors in enclosed malls diminished near-term money circulation whereas house was repositioned, and this impact was compounded by gradual strain on workplace fundamentals and better working and financing prices.

In consequence, FFO settled right into a decrease however steady vary in 2018–2019, following normalization after earlier progress slightly than a single-year shock.

The sharp step-down in 2020 and solely partial restoration in 2021 have been pushed primarily by the pandemic’s influence on retail and workplace money flows.

Lease aid, elevated credit score losses, and particular large-tenant lease resets diminished working revenue in 2020, resulting in the biggest year-over-year decline within the sequence.

In 2021, FFO improved a bit as collections stabilized and leasing exercise resumed, however outcomes remained nicely beneath pre-pandemic ranges on account of lingering tenant restructurings and slower restoration in workplace utilization.

From 2022 by way of 2024, the continued decline in FFO per share displays structural and macro headwinds. Particularly, increased rates of interest elevated financing prices, whereas workplace emptiness restricted NOI progress.

Retail efficiency improved and industrial belongings contributed incremental stability. However these positives have been inadequate to offset curiosity expense and the absence of prior one-time revenue objects.

Shifting ahead, we anticipate no progress in FFO per share, as increased curiosity prices and weak workplace fundamentals proceed to offset modest working enhancements throughout the portfolio.

We additionally anticipate no progress within the dividend because the REIT ought to prioritize deleveraging.

Dividend & Valuation Evaluation

Morguard REIT’s P/FFO has hovered within the excessive single digits following 2021’s dividend reduce. Investor confidence has gone up these days, with the inventory now buying and selling at 9.9x this yr’s anticipated FFO.

Nevertheless, contemplating our weak progress forecast and lack of dividend progress we imagine {that a} compression again to about 8x FFO appears affordable.

MGRUF inventory trades for a P/FFO ratio of 11.0, which is above our honest worth estimate of 8. The inventory seems to be overvalued.

A declining P/FFO a number of may scale back annual returns by 6.1% per yr over the subsequent 5 years. With no future progress anticipated, solely dividends will present returns as the present dividend yields 3.7%.

Placing all of it collectively, complete returns are estimated at -1.8% per yr.

Remaining Ideas

Morguard REIT is a steady however extremely leveraged REIT with reliable retail money circulation, pressured workplace publicity, and restricted near-term upside in FFO.

Shifting ahead, we really feel the inventory might need a tough time producing optimistic returns because of the lack of significant progress prospects and the opportunity of valuation headwinds.

For that reason and because of the lack of dividend progress, we price the inventory a promote.

Further Studying

Don’t miss the assets beneath for extra month-to-month dividend inventory investing analysis.

And see the assets beneath for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.