Primaris Real Estate Investment Trust (PMZ-UN) Q2 2026 earnings summary

Executive summary

• Achieved sector-leading FFO per unit growth, expanding from the 19th to the 9th largest REIT index member since 2021, with a $5.2B national portfolio focused on Canadian enclosed shopping centres and strong leasing momentum, including 91.1% committed occupancy and 84% of former HBC space leased or in advanced negotiations.

• Identified approximately CAD 52 million of incremental annual cash NOI from leasing activity expected to commence over the next three years, representing over 13% NOI growth versus 2026 guidance midpoint.

• Portfolio concentrated in high-growth Canadian markets, targeting assets with strong population growth and trade area fundamentals.

• Maintains a disciplined capital allocation approach, including unit repurchases, land monetization, and debt repayment.

• Total rental revenue reached $174.1 million for Q2 2026, with robust tenant demand driving performance.

Financial highlights

• FFO per unit was CAD 0.451, up 1.3% year-over-year; excluding one-time costs, FFO per unit rose 5.4%.

• Same property cash NOI increased 0.5% year-over-year, or 1.1% excluding prior year property tax recoveries.

• Portfolio sales volume reached CAD 3.5 billion, with sales per square foot at CAD 825 for the 12 months ending May 2026.

• FFO payout ratio at 48.8% in Q2 2026, within the 45–50% target range.

• Weighted average net rent per occupied square foot increased to CAD 32.84 from $28.88 year-over-year.

Outlook and guidance

• 2026 guidance reaffirmed: in-place occupancy 86–88%, same property NOI growth 1–3%, FFO per unit $1.85–$1.90.

• Three-year targets include in-place occupancy of 94–96%, annual same property NOI growth of 3–4%, and annual FFO per unit growth of 4–6%.

• General and administrative expenses expected at $44–46M; redevelopment capital expenditures $60–64M.

• Anticipate elevated same property NOI growth for at least 10 quarters, with a consistent ramp as new leases commence.

• Management cautions on risks and uncertainties that could materially impact results.