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

Executive summary

• Q3 2025 delivered strong results with 5.7% FFO per unit growth, a 2.3% distribution increase, and robust leasing momentum, supported by the Canadian mall sector's recovery and strategic acquisitions exceeding $3.3 billion since 2021.

• Portfolio quality was enhanced through targeted acquisitions in high-growth markets, including four top-tier malls and Promenades St-Bruno, and disciplined capital allocation with significant unit repurchases.

• HBC lease disclaimers and proactive management of vacancies accelerated leasing discussions and created both short-term risk and long-term redevelopment opportunities.

• Annual distribution increased for the fifth consecutive year, likely qualifying for the Dividend Aristocrats Index.

• Net income reached $40.9 million for the quarter, with total rental revenue of $159.2 million.

Financial highlights

• FFO per diluted unit rose 5.7% year-over-year to $0.443, with a payout ratio of 52.6%.

• Same property cash NOI increased 0.7% for the quarter and 5.1% year-to-date; 2026 guidance anticipates 1.0%–3.0% growth.

• Weighted average net rent per square foot increased to $29.16, driven by acquisitions and higher rents.

• Portfolio occupancy was 91.7% at quarter end, with committed occupancy at 92.8%.

• Tenant sales productivity reached $800 per square foot, with total sales volume exceeding $3.5 billion.

Outlook and guidance

• 2025 guidance: cash NOI of $352–$357 million, FFO per unit of $1.78–$1.82, and occupancy of 85%–87%.

• 2026 guidance: cash NOI of $385–$395 million, same property 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% and annual FFO per unit growth of 4%–6%.

• 2026 expected as a transitional year, with acceleration in occupancy and recoveries anticipated in 2027–2028.

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