Primaris Real Estate Investment Trust (PMZ-UN) Q1 2025 earnings summary

Executive summary

• Achieved strong same property NOI growth and substantial FFO per unit growth, supported by disciplined capital allocation, strategic acquisitions, and portfolio transformation.

• Tenant sales per square foot reached an all-time high of CAD 768, with aggregate CRU sales growing from CAD 800 million to CAD 3 billion since 2021.

• Portfolio expanded with the acquisition of 100% of Oshawa Centre and 50% of Southgate Centre for CAD 585 million, and the sale of non-core assets including St. Albert Centre.

• Committed occupancy stands at 94.2%, with in-place occupancy at 93.2%, reflecting strong leasing activity and growth potential.

• Maintained sector-leading low debt/EBITDA, strong balance sheet, and significant liquidity.

Financial highlights

• FFO per diluted unit was CAD 0.439, up 13.3% year-over-year; FFO payout ratio improved to 52.8%.

• Same property cash NOI grew 9.4% year-over-year, with shopping center cash NOI up 10.2%.

• Total rental revenue up 26% year-over-year to CAD 150.2 million; net income for Q1 2025 was CAD 31.1 million.

• Net debt to adjusted EBITDA at 5.7x, within the 4–6x target range.

• Repurchased 11.83 million units at a 34.2% discount to NAV, exceeding 2024 repurchases.

Outlook and guidance

• 2025 guidance reaffirmed: same property cash NOI growth of 3–4% and FFO per unit diluted of CAD 1.70–1.75.

• Guidance includes impact of HBC lease disclaimers, recent acquisitions, and CAD 300 million of dispositions.

• Anticipates a 6–7% decrease in occupancy due to HBC lease departures, with plans for re-tenanting and redevelopment.

• No significant CapEx for HBC boxes expected in 2025; occupancy guidance to drop ~7% if all HBC leases disclaimed.

• 3-year targets: in-place occupancy 96%, annual FFO per unit growth 4–6%, annual distribution growth 2–4%.