Primaris Real Estate Investment Trust (PMZ-UN) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong operational and financial performance, with robust same property NOI and FFO per unit growth, supported by major acquisitions, capital recycling, and a focused strategy on leading Canadian shopping centres.

• Strategic acquisitions, including Lime Ridge Mall for $416 million, have transformed the portfolio, now representing a significant portion of portfolio value and supporting consolidation in key markets.

• Leasing momentum remained robust, with a 6.7% average spread on renewing rents and strong new leasing activity, while committed occupancy was 90.5%.

• Capital recycling and non-core asset dispositions exceeded $300 million, funding acquisitions and unit repurchases at a significant discount to NAV.

• ESG initiatives advanced, including the publication of a Green Finance Framework and issuance of $200 million in green debentures.

Financial highlights

• Same property cash NOI grew 5.5% year-over-year for Q2 2025; FFO per unit (fully diluted) increased 5.5% to $0.445; AFFO per unit up 24.6% to $0.690.

• Weighted average net rent per square foot rose to $28.88, and tenant sales productivity reached $784 per square foot, both at all-time highs.

• Net Asset Value per unit at $21.43, with total assets of $5.0 billion.

• Portfolio in-place occupancy at 88.8%, impacted by HBC lease disclaimers and recent acquisitions; target occupancy updated to 94%–96% by 2027.

• FFO payout ratio at 52.6%, with a target range of 45–50%.

Outlook and guidance

• 2025 guidance for cash NOI raised to $340–$345 million and FFO per unit to $1.74–$1.79, reflecting acquisitions, leasing strength, and HBC lease transitions.

• Same property cash NOI growth expected at 3%–4% for 2025; annual FFO per unit growth targeted at 4%–6% through 2027.

• No significant CapEx for HBC boxes anticipated in 2025; redevelopment capital expenditures guidance maintained at $48–$50 million.

• General and administrative expenses expected at $36–$38 million for 2025.

• Management notes risk of material variation in actual results due to market and operational uncertainties.