Morguard Corporation reported retail occupancy of 90.3 per cent at the end of the third quarter of 2026, up from the previous quarter but below year-ago levels, as higher vacancies and lower operating expense recoveries weighed on the financial performance of its retail portfolio.
The Mississauga-based real estate company reported retail occupancy of 90.3 per cent as of Sept. 30, compared with 89.8 per cent at the end of June and 90.6 per cent in the same period last year. Its retail portfolio comprises approximately 7.49 million square feet of gross leasable area, excluding development space.
Despite the sequential improvement in occupancy, Morguard’s retail adjusted net operating income (NOI) declined to $32.6 million in the three months ended Sept. 30, down from $36.6 million in the third quarter of 2025, a decrease of approximately 10.8 per cent.
For the first nine months of 2026, retail adjusted NOI totalled $94 million, compared with $98.6 million during the corresponding period last year, representing a decline of approximately 4.7 per cent.
Morguard attributed the third-quarter decrease primarily to higher vacancy within its retail portfolio, lower recoveries of operating expenses and a reduction in non-recurring lease cancellation fees compared with 2025.
The company reported total revenue from real estate properties of $258.7 million in the third quarter, an increase of $4 million, or 1.6 per cent, from $254.7 million a year earlier. However, the increase was primarily driven by higher average monthly rents and ancillary income in its multi-suite residential portfolio.
Across its broader real estate operations, Morguard reported adjusted NOI of $137.2 million for the quarter, down 2.6 per cent from $140.9 million in the third quarter of 2025.
Retail occupancy has fluctuated over the past year, reaching 89.7 per cent in December 2025 before improving to 89.9 per cent in March 2026 and 89.8 per cent in June. The latest figure represents a modest quarterly improvement but remains below the occupancy level recorded a year earlier.
Morguard owns a diversified real estate portfolio that includes retail, office, industrial, multi-suite residential and hotel properties. As of Nov. 4, 2026, the company reported total assets owned and under management valued at $24.1 billion, with 154 properties and approximately 16.2 million square feet of commercial leasable space.
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