Good afternoon, ladies and gentlemen, and welcome to the Morguard North American Residential Real Estate Investment Trust fourth quarter results conference call. At this time, all lines are in listen only mode. Following the presentations, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on Friday, February 14th, 2020. I would like to turn the conference over to Mr. Paul Miatello. Please go ahead, sir.
Thank you very much, welcome everybody, and thank you for joining us for the REIT's fourth quarter 2019 results conference call. I'll just do a quick roll call of who's with us today. We have Rai Sahi, Chief Executive Officer, Chris Newman, Chief Financial Officer, Angela Sahi, Senior Vice President in charge of Canadian operations. John Talano is on the phone, Senior Vice President in charge of U.S. operations, and Beverley Flynn, Senior Vice President. I am Paul Miatello, Senior Vice President of the REIT. As is usual, I will turn the call over to Chris Newman, Chief Financial Officer, who will give us an overview of results of the REIT for the fourth quarter and for the year ended December 31, 2019, then we'll open up the floor for questions. Over to Chris.
Thank you, Paul. In terms of our financial position, the REIT completed 2019 with total assets amounting to CAD 3 billion, unchanged compared to the end of 2018. During the first half of 2019, the REIT sold the five Louisiana properties, comprising 843 suites for net proceeds of CAD 27.3 million. The disposition of the five Louisiana properties, which had an average age of 40 years, follows the sale of the REIT's Alabama properties in July 2017 and is consistent with management strategies to dispose of non-core assets and to focus on opportunities to acquire properties located in urban centers and major suburban markets in Canada and the U.S. During the third quarter of 2019, the REIT also completed an offering of 5.2 million units sold for a price of CAD 19.75 per unit for net proceeds of CAD 99.6 million.
On December 9, 2019, the REIT acquired a 50% interest in The Marquee at Block 37, a property located in Chicago, for a net investment of CAD 68.8 million. The property is a 38-story apartment building located in the heart of downtown Chicago and features 690 suites and extensive best-in-class amenities. The REIT completed 2019 with CAD 17.7 million of cash on hand and CAD 20 million advanced to Morguard Corporation under its CAD 100 million revolving credit facility. The REIT completed 2019 with CAD 1.3 billion of long-term debt obligations. On October 1st, 2019, the REIT completed the refinancing of three Texas properties, resulting in additional mortgage proceeds of CAD 7.7 million. The new loans have terms of 10 years and a weighted average interest rate of 3.24%.
The maturing loans had a weighted average interest rate of 3.21%. As at December 31st, 2019, the REIT's overall weighted average term to maturity was 5.6 years, a decrease from 5.8 years at December 31st, 2018, and the REIT's weighted average interest rate also decreased to 3.48% from 3.49% during the year. The REIT continues to make progress on reducing its overall leverage. The REIT's debt to gross book value ratio improved to 44.1% at December 31st, 2019, from 47.9% at December 31st, 2018. Effective for the November 2019 distribution, the REIT increased its annual cash distribution by CAD 0.02 per unit, an increase of nearly 3%.
MRG had an IFRS net asset value of just under CAD 26 per unit as at December 31st, 2019, compared to the current market price of just over CAD 20 per unit, still reflecting a compelling entry point for investors. Turning to the statement of income. Net income of CAD 80.1 million for the year ended December 31st, 2019, compared to CAD 174.7 million over the same period in 2018. The decrease in net income was primarily due to the following non-cash items. A lower fair value gain on real estate properties, which was partially offset by a lower fair value loss on Class B LP units and a decrease in deferred income taxes.
Net operating income of CAD 132.9 million for the year ended December 31st, 2019, an increase of CAD 1.2 million or 0.9% compared to 2018. On a same-property basis, same-property proportionate NOI in Canada increased by CAD 1.4 million or 2.8%, and in the U.S., increased by $1.7 million U.S. dollars or 3.1% compared to 2018. Interest expense decreased by CAD 0.3 million for the year ended December 31st, 2019, compared to 2018, which was primarily due to the disposal of the five Louisiana properties during the first half of 2019. The REIT's 2019 performance has translated into basic FFO of CAD 64.2 million, an increase of CAD 3.1 million or 5% compared to 2018.
On a per unit basis, FFO was CAD 1.22 per unit for the year ended December 31st, 2019, an increase of CAD 0.02 or 1.7% compared to CAD 1.20 per unit in 2018. The increase in FFO per unit was primarily impacted by the following. The change in foreign exchange rate had a CAD 0.02 per unit positive impact. The disposal of the five Louisiana properties had a CAD 0.035 per unit negative impact. The dilution from additional units of the unit offering offset by approximately four months of interest income earned on proceeds advanced on the Morguard facility, including the partial use of proceeds to acquire the Marquee at Block 37, had a CAD 0.02 per unit negative impact.
The REIT's FFO payout ratio was 56.1% for the year ended December 31st, 2019, a very conservative level, which allows for significant cash retention. Operationally, the REIT had a successful year, with average monthly rents in Canada increasing to CAD 1,432, reflecting the quality of our Canadian portfolio, which translates into an overall 4.3% increase in rent levels compared to 2018. During the year, the Canadian portfolio turned over 15% of total suites in Canada and achieved 17.7% AMR growth on suite turnover. While in the U.S., same property AMR increased by 3.7%, having an average monthly rent of $1,345 U.S. dollars at the end of 2019, compared to $1,297 U.S. dollars at the end of 2018.
The REIT continues to report strong occupancy, with Canada finishing 2019 at 98.8%, compared to 99.1% a year earlier. Same property occupancy in the U.S. of 94.6% continues to be stable at December 31st, 2019, compared to 95% at the end of 2018. During the year, the REIT's total CapEx amounted to CAD 30.6 million that included common area projects and revenue-enhancing in-suite improvements and energy initiative projects. In addition, the REIT incurred CAD 7 million towards the REIT's development property in New Orleans. Management expects the project to be complete in the first half of 2020. Now I'll turn it back over to the moderator, who will open up the lines for questions.
Thank you. Ladies and gentlemen, if you do have a question at this time, please press star followed by one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. If you should wish to withdraw your question, simply press star followed by the number two. We do ask, if you're using a speakerphone, to please lift your handset before pressing any keys. Please go ahead and press star one now if you have a question. Once again, ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touch-tone phone.
Okay. We don't have a question.
At this time, we have no questions registered, so please proceed.
Okay. Thank you everybody for your attendance today. I think all the year-end disclosures must have been sufficient and adequate if there aren't any questions. Thank you for your attendance today, and we'll speak to you again at the Q1 conference call. Thank you.
Thank you, sir. Ladies and gentlemen, this does indeed conclude the conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines. Have yourselves a good weekend.