Primaris Real Estate Investment Trust (PMZ-UN) Q3 2024 earnings summary

Executive summary

• Achieved a beat-and-raise quarter with strong Q3 2024 results, robust leasing, and a positive multi-quarter outlook.

• Completed major acquisitions, including Les Galeries de la Capitale for $325 million, and expanded public float and liquidity through a $74.7 million offering.

• Well-capitalized with a conservative financial profile, positioned as the only Canadian REIT focused on enclosed shopping centres and targeting consolidation opportunities.

• Hosted successful Investor Day and board outreach, strengthening stakeholder engagement.

• Portfolio includes high-quality regional malls in high-growth markets, with significant NOI growth potential.

Financial highlights

• FFO per diluted unit (excluding bond issuance impact) was $0.443, up 5.2% year-over-year; FFO per unit guidance for 2024 raised to $1.66–$1.68.

• Same Properties Cash NOI grew 4.6% year-over-year, driven by higher occupancy, rental growth, and cost recovery.

• Committed occupancy reached 94.8% as of Q3 2024, with strong leasing momentum and 1.8% average spread on renewals.

• Net Asset Value per unit was $21.82, with units trading at a significant discount to NAV.

• $3.3 billion in unencumbered assets and $701.6 million in liquidity at quarter end.

Outlook and guidance

• 2024 FFO per unit guidance raised to $1.66–$1.68; Same Properties Cash NOI growth guidance maintained at 3.0%–4.0%.

• 2024 occupancy expected to increase by 0.8% to 1.0% over prior year.

• No near-term refinancing risk, with capacity for over $1.5 billion in acquisitions.

• Three-year targets include in-place occupancy of 96% and annual FFO per unit growth of 4–6%.

• Guidance excludes future acquisitions or dispositions; 2025 guidance to be provided later.