Morguard Investment Corp (MRC)

  • Last Updated:
  • Dec 20th, 2018 3:42 pm
Deal Addict
Nov 9, 2013
4709 posts
Edmonton, AB

Morguard Investment Corp (MRC)

I've been thinking about ways to diversify into Real Estate in my non reg account and I came across MRC - it's a company that owns and operates commercial / residential / industrial real estate mostly in Canada (Ontario) but some in the US as well.

The chairman - K. Sahi - seems to know what he's doing and seems to be an excellent capital allocator. In the last 3 years NOI has grown at about 5% annualized with FFO / Share growing at about 8% annualized. Share count is decreasing with time. The stock is near a 52 week low, although in the last 3 years the share price has appreciated by about 7%. Dividend isn't growing, yield remains fairly low. I suspect it's about fairly valued.

Basically my approach would be buy and hold and use it as a way to diversify into Real Estate. Given the low yield and div tax credit it would be fairly tax efficient as I'd really only pay tax on cap gains if I ever sold, which is why I'm considering it for my non reg account.

Do any shareholders (or, anyone else for that matter) have any feed back / thoughts?
Keep calm and go long