Primaris Real Estate Investment Trust (PMZ-UN) Q1 2026 earnings summary

Executive summary

• Owns and manages a $5.2B national portfolio of leading enclosed shopping centres in growing Canadian markets, with a focus on scale, disciplined capital allocation, and retailer affordability.

• Strong leasing momentum and robust tenant demand are driving confidence in future business direction, despite near-term headwinds from anchor tenant departures and equity compensation settlements.

• Committed occupancy at 89.9% as of Q1 2026, with significant leasing progress and strong tenant renewal rates.

• Leadership team strengthened with a new Chief Investment Officer to oversee investment and capital allocation, focusing on acquisitions, dispositions, and portfolio optimization.

• Strategic acquisitions in major markets have expanded the portfolio, targeting high-growth trade areas and assets with redevelopment potential.

Financial highlights

• FFO per unit was CAD 0.425, down 3.2% year-over-year, but up 1.6% excluding prior year property tax recoveries.

• Same-property cash NOI declined 2.1% year-over-year, mainly due to CAD 2.5 million in prior year property tax recoveries and CAD 2.4 million lower rental revenue from HBC; excluding tax recoveries, same-property shopping center cash NOI grew 1.7%.

• AFFO per unit increased 2.3% year-over-year to $0.354.

• FFO payout ratio was 51.8%, within or slightly above the target range of 45%-50%, expected to normalize.

• Total assets were $5.3 billion, with $4.8 billion in unencumbered assets and $626.8 million in liquidity.

Outlook and guidance

• 2026 guidance reaffirmed: occupancy expected at 86%-88%, Same Properties Cash NOI growth of 1.0%-3.0%, and FFO per unit of $1.85-$1.90.

• Redevelopment capital expenditures expected at $60–64 million, with $35 million attributable to vacant HBC anchor spaces.

• Guidance assumes no major acquisitions or dispositions, but both are expected in the current year.

• Anticipated annualized net rents from redeveloped HBC premises to exceed CAD 17 million over the next two years, with yields of 8%-10%.

• Management cautions that actual results may vary materially due to risks and uncertainties.