04:30 PM EDT, 04/30/2024 (MT Newswires) -- Morguard North American Residential REIT (MRG-UN.TO) after trade on Tuesday reported net income of C$24.8 million for the three months ended March 31, a drop of C$9.5 million, or 27.7% compared to 2023, predominantly due to a lower net fair value gain, partially offset by a decrease in deferred income tax.

Among other highlights, it reported net operating income of C$20.6 million for the first quarter, an increase of C$1.3 million, or 6.6% compared to 2023. Same Property Proportionate NOI in Canada increased by C$1.7 million, or 12%, and in the U.S. increased by US$0.4 million (or 2%), compared to 2023.

The company also cited basic funds from operations of C$22.5 million, an increase of C$0.6 million, or 2.6% over the same period in 2023; and basic FFO of C$0.41 per unit, a 5.1% increase as compared to C$0.39 per Unit in 2023; as well as an FFO payout ratio for of 45.1% compared to 46.1% in 2023.

The REIT saw its units drop C$0.24 to C$15.20 on the Toronto Stock Exchange.