Primaris Real Estate Investment Trust (PMZ-UN) Q4 2025 earnings summary

Executive summary

• Achieved CAD 1.6 billion in acquisitions and CAD 400 million in non-core dispositions in 2025, transforming nearly 65% of the portfolio and enhancing internal growth potential.

• Achieved strong Q4 and full-year 2025 results, with significant growth in FFO per unit and Cash NOI, and raised 2026 FFO per unit guidance.

• Increased annual distribution by 2.3% to $0.88 per unit, marking the fifth consecutive annual increase, and maintained a conservative capital structure with robust liquidity.

• Repurchased 5.2 million units in 2025 at a 29% discount to NAV, delivering a 43% immediate return on investment.

• Completed significant acquisitions, including Promenades St-Bruno, and disposed of Northland assets for $154 million.

Financial highlights

• FFO per unit for Q4 was CAD 0.513, up 11.6% year-over-year; full-year FFO per unit was CAD 1.846, up 9.2%.

• Same-property cash NOI for Q4 increased 6.8%; full-year same-property NOI up 5.6%.

• FFO payout ratio for 2025 was 46.7%, at the low end of the 45%-50% target range; Q4 payout ratio was 42.3%.

• Net Asset Value per unit at year-end was $21.21, representing a significant discount to current unit price.

• Liquidity at CAD 644.3 million; 90% of assets unencumbered; secured debt as a percent of total debt decreased to 11.3%.

Outlook and guidance

• 2026 guidance: cash NOI expected at CAD 390–400 million; FFO per unit diluted at CAD 1.85–1.90.

• Same-property cash NOI growth projected at 1%–3% for 2026, with stronger growth expected in 2027–2028 as anchor vacancies are re-leased.

• Occupancy guidance at 86%–88% for 2026.

• Redevelopment spending in 2026 forecasted at CAD 60–64 million, with CAD 35 million for HBC anchor re-leasing.

• Three-year targets include in-place occupancy of 94%–96%, annual FFO per unit growth of 4%–6%, and annual distribution growth of 2%–4%.