Primaris Real Estate Investment Trust (PMZ-UN) investor relations material

Executive summary

• Owns and manages a $5.2B national portfolio of leading enclosed shopping centres in growing Canadian markets, focusing 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 HBC and Toys R Us closures, equity compensation settlements, and 2025 dispositions.

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

• The departure of HBC, which occupied 7% of the portfolio at low rents, marks a peak quarter for occupancy and revenue drag but unlocks significant redevelopment and leasing opportunities.

• Maintains a differentiated financial model with low leverage, a conservative payout ratio, and a mandate for growth.

Financial highlights

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

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

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

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

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

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.

• Guidance assumes no major acquisitions or dispositions and includes $35M in redevelopment capital for vacant HBC anchor spaces.

• Cash rent commencement from redeveloped HBC locations will begin as early as Q1 2027, with yields of 8%-10% and over CAD 17 million in annualized net rents anticipated.

• Redevelopment capital expenditures expected at $60–64 million.

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