Primaris Real Estate Investment Trust

Primaris reported FFO per unit of 45.1 cents per diluted unit, up 1.3% year over year. Excluding approximately 1.9 million in terminated transaction costs and 0.4 million of lower prior-year property tax recoveries, FFO per unit was up 5.4%. Same-property cash NOI increased 0.5% year over year; excluding a 0.4 million prior-year tax recovery benefit, it would have been up 1.1%. Management reiterated its 2026 guidance and said same-property NOI growth should jump next quarter, accelerate further in Q4, and again in Q1 2027, then remain elevated for the following 10 quarters. They also said approximately 52 million of incremental annual cash NOI has been identified from leasing activity expected to commence over the next three years, representing more than 13% NOI growth versus the midpoint of 2026 guidance. On the balance sheet, liquidity was 655 million, average net debt to adjusted EBITDA was 6.0x, and there are no debt maturities until 2027; 250 million of unsecured debentures mature in March 2027 at 4.82%.

Alex Avery framed the quarter as evidence that the post-spinout transformation is now showing up in results, saying the portfolio is only in the “early innings” of recovery. He emphasized the 52 million of incremental cash NOI visibility, the move to 86.6% in-place occupancy versus a 96% stabilized target, and the company’s growing market recognition as a larger, more liquid REIT. His tone was upbeat and confident, with repeated references to a strong embedded growth runway, portfolio quality improvement, and long-term value creation.

Raghunath Davloor focused on the quality of the quarter’s earnings growth and the balance sheet. He cited FFO per unit of 45.1 cents, 1.9 million of terminated transaction costs, 0.4 million of lower prior-year tax recoveries, and 1 million of lost rent from disclaimed HBC leases, and said the company still delivered 5.4% growth excluding those items. He also said average net debt to adjusted EBITDA was 6.0x, liquidity was 655 million, and the company has no maturities until 2027, with a 250 million debenture coming due in March 2027 at 4.82% versus about 4.25% for a new five-year issue today.

Analysts pressed on acquisition activity, the effect of the stock trading above IFRS value, and whether land and residual density monetization could happen soon. Management said year-end positioning and their cost of capital may be increasing seller interest, but nothing is advanced yet; they remain hopeful of at least one acquisition this year, potentially one to three malls. On structuring, management said the higher share price gives them “more tools in the toolbox,” including both structured acquisitions and cash, but they continue to prioritize accretion and are not treating IFRS NAV as the main goalpost. On operations, they explained that same-property growth and recovery ratios will step up as HBC-related losses roll off and more leases commence, with CRU leasing driving near-term momentum and Bay/HBC openings contributing more in 2027-2028.