Primaris Real Estate Investment Trust (PMZ-UN) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 results with 5.7% FFO per unit growth, robust rental revenue, and a 2.3% distribution increase, driven by Canadian mall sector recovery and strategic acquisitions.

• Completed over CAD 1.6 billion in strategic mall acquisitions, including Promenades St-Bruno, enhancing portfolio quality and internal growth prospects.

• Significant progress in leasing former HBC and Sears spaces, with nearly 500,000 sq ft leased to single tenants and strong tenant demand.

• Announced a 2.3% distribution increase to $0.88 per unit, marking the fifth consecutive annual increase.

• Net income reached $40.9 million for the quarter, with continued execution of a focused strategy to acquire, own, and manage leading Canadian enclosed shopping centres.

Financial highlights

• FFO per diluted unit up 5.7% year-over-year to $0.443, with FFO payout ratio at 52.6%.

• Same property cash NOI up 0.7% for Q3 and 5.1% year-to-date; 2025 guidance for 4.0%–5.0% growth.

• Portfolio in-place occupancy at 91.7%, committed occupancy at 92.8%, and weighted average net rent per sq ft increased to CAD 29.16.

• Total assets rose to $4.9 billion, with $4.4 billion in unencumbered assets and $617.6 million in liquidity.

• Total sales productivity rose to CAD 800 per sq ft, with sales volume exceeding CAD 3.5 billion.

Outlook and guidance

• 2025 guidance: cash NOI of $352M–$357M, FFO per unit of $1.78–$1.82, same property cash NOI growth of 4%–5%, and occupancy of 85%–87%.

• 2026 guidance: cash NOI of $385M–$395M, same property cash NOI growth of 1%–3%, FFO per unit of $1.83–$1.88, and occupancy of 86%–88%.

• Three-year targets include in-place occupancy of 94%–96%, annual same property cash NOI growth of 3%–4%, and annual FFO per unit growth of 4%–6%.

• No significant CapEx expected for HBC boxes in 2025; HBC-related spend estimated at CAD 125M–150M over several years.

• Annual distribution increased by 2.3% to $0.88 per unit.