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

Portfolio and strategy

• Portfolio value rose from CAD 2.3B before the spin-out to CAD 5.6B pro forma Q2 2026; CAD 4.4B of acquisitions and dispositions completed in five years, with 70% of the portfolio new since 2021.

• Retail sales increased from CAD 1.7B to CAD 3.8B, up 121%; sales per square foot rose from CAD 589 to CAD 829, up 41%, while average mall CRU sales grew from CAD 74M to CAD 151M.

• Enclosed-mall portfolio spans 15.6M sq. ft. in growing Canadian markets; a vertically integrated national platform supports operating scale and retailer affordability.

• Top-10 minimum-rent share declined from 26.2% to 21.9% as tenant mix shifted toward value, grocery, pharmacy and other necessity retailers.

• Acquisition focus remains on malls that improve portfolio quality and internal growth, with no volume target and significant opportunities anticipated through 2026–28.

Leasing and mall operations

• June 2026 occupancy was 86.6%, or 93% excluding former HBC space, with 96% committed excluding HBC; the 2027–2029 target is 96% average in-place occupancy.

• By June 26, 2026, 84% of former HBC space, or 881,400 sq. ft., was leased or in advanced negotiations; anticipated annual rent of CAD 14.9M compares with CAD 3.7M previously, with most NOI contribution expected in 2028–29.

• Leasing strategy is to fill space first, then optimize rents and merchandising; tenant optimization is expected to grow in importance after 96% committed occupancy, beginning in H2 2027 and continuing through 2028.

• Contractual rent escalations have shifted from 2% to 3%; percentage rent is now 3%–4% of revenue versus 1.5%–2% historically, with some expected to convert to base rent at lease resets.

• Recovery targets by 2028 are 100% for taxes and 115% for CAM and recoverable capital; each 1% increase in CAM and tax recovery is estimated to add ~$2.5M.

Capital allocation and balance sheet

• Capital decisions weigh return, risk, per-unit accretion, strategic fit and balance-sheet impact; priorities include per-unit growth, portfolio quality and disciplined leverage and distributions.

• Three-year outlook targets more than CAD 500M of dispositions and more than CAD 300M of capital expenditures; land monetization is expected to realize CAD 275M–CAD 375M, with a further CAD 200M of potential non-core property and retail-pad dispositions identified.

• Target average net debt to adjusted EBITDA is 5.0x–6.0x; policy emphasizes unsecured debt, unencumbered assets, laddered maturities, investment-grade credit and liquidity.

• FFO payout ratio declined from 52% in 2023 to 50% in 2024 and 47% in 2025, within the 45%–50% target; narrowed credit spreads and refinancing are expected to provide an interest-rate tailwind.

• Redevelopments target yields above 10%, typically with leases in hand; spending favors tactical, lower-risk projects over large master plans.