Primaris Real Estate Investment Trust (PMZ-UN) Q1 2025 earnings summary

Executive summary

• Achieved strong same property NOI growth and substantial FFO per unit growth, driven by disciplined capital allocation, strategic acquisitions, and portfolio transformation.

• Tenant sales per square foot reached an all-time high of CAD 768, with aggregate CRU sales growing from CAD 800 million to CAD 3 billion since 2021.

• Completed CAD 585 million acquisition of Oshawa Centre and a 50% interest in Southgate Centre, plus Sherwood Park Mall for CAD 107 million, while disposing of non-core assets.

• Committed occupancy was 94.2%, with in-place occupancy at 93.2%, and portfolio expanded by 1.64 million sq. ft. GLA.

• Maintained sector-leading low debt/EBITDA and FFO payout ratios, with a strong balance sheet and significant liquidity.

Financial highlights

• FFO per diluted unit was CAD 0.439, up 13.3% from CAD 0.388 year-over-year; FFO payout ratio improved to 52.8%.

• Same property cash NOI grew 9.4% year-over-year, with shopping center cash NOI up 10.2%.

• Total rental revenue up 26% year-over-year to CAD 150.2 million; net income for Q1 2025 was CAD 31.1 million.

• Recovery ratios improved to 78.1%, up 3.3% from Q1 last year.

• NAV per unit at quarter end was CAD 21.40, representing a significant discount to the current unit price.

Outlook and guidance

• Reaffirmed 2025 guidance: same property cash NOI growth of 3–4% and FFO per unit diluted of CAD 1.70–1.75.

• Guidance includes impact of HBC lease disclaimers, recent acquisitions, and CAD 300 million of dispositions.

• No significant CapEx expected for HBC boxes in 2025 due to timing of the CCAA process.

• 3-year targets: in-place occupancy 96%, annual FFO per unit growth 4–6%, annual distribution growth 2–4%.

• No changes to guidance for G&A expenses, capital expenditures, or contractual rent steps.