Primaris Real Estate Investment Trust (PMZ-UN) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in same property NOI and FFO per unit, with FFO per unit up 14.5% in Q4 and 6.5% for the year, and committed occupancy reaching 95.6%.

• Recent acquisitions include 100% of Oshawa Centre, 50% of Southgate Centre, and Les Galeries de la Capitale, totaling over $910 million in the last four months, expanding portfolio quality and growth potential.

• Portfolio's annual same-store sales productivity increased, with Q4 pro forma figures rising from $684 to $749 per sq ft and same store sales productivity at $705 per sq ft.

• Maintains a conservative capital structure, investment grade rating, and disciplined capital allocation, including regular unit buybacks and annual distribution increases.

• Balance sheet remains strong with $589.8 million liquidity and no unfunded debt maturing until 2027.

Financial highlights

• FFO per unit for Q4 was $0.460, up from $0.402 year-over-year; annual FFO per diluted unit was $1.69, up 6.5% over 2023.

• Same property cash NOI grew 9.1% for Q4 and 4.5% for the year, driven by higher occupancy, rents, and recoveries.

• Portfolio in-place occupancy was 94.5%, up 2.1% year-over-year; committed occupancy reached 95.6%.

• Leasing spreads were 5.3% for Q4 and 4.8% for the year; 137 new transactions completed in Q4, totaling 0.6 million sq ft.

• Net Asset Value per unit at year-end was $21.55, with unit buybacks at a 35.5% discount to NAV.

Outlook and guidance

• 2025 guidance: same-property cash NOI growth of 3.0%-4.0% and FFO per unit diluted of $1.70-$1.75, reflecting recent acquisitions and $300 million of expected dispositions.

• Occupancy is expected to increase by 0.8%-1.0% in 2025; contractual rent steps to add $3.4–$3.8 million to revenue.

• Operating capital expenditures forecasted at $48–$50 million; redevelopment capital at $18–$20 million.

• Three-year targets include over $1 billion in acquisitions, over $500 million in dispositions, and 4.0%-6.0% annual FFO per unit growth.

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