Primaris REIT Announces Strong Q3/25
Executive Summary
- Primaris reported Q3 2025 total rental revenue of $159.2 M and net income of $40.9 M, with FFO per unit up 5.7% to $0.443.
- The Trust announced a $250 M senior unsecured green debenture issuance (Series I, 3.845% fixed, maturing 2030) and completed the acquisition of Promenades St‑Bruno for $482.1 M (cash + trust units).
- Board approved an increase in the annual distribution rate to $0.88 per unit (2.3% uplift), effective for the December 2025 distribution.
Key Details
- Financial Highlights (Q3 2025):
- Rental revenue: $159.2 M (net of $2.0 M HBC impact)
- Same‑store sales productivity: $794 / sq ft
- Cash NOI growth: +0.7% (adjusted +1.7% w/ accrual, +2.1% excl. HBC)
- FFO per diluted unit: $0.443 (up 5.7%)
- Net income: $40.9 M; NAV per unit: $21.58
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Liquidity: $617.6 M; Unencumbered assets: $4.38 B
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2026 Guidance:
- Cash NOI: $385‑$395 M
- Same‑properties cash NOI growth: 1.0%‑3.0%
- Occupancy target: 86%‑88%
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FFO per unit (fully diluted): $1.83‑$1.88
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2025 Guidance Update:
- Cash NOI: $352‑$357 M; Same‑properties cash NOI growth unchanged at 4.0%‑5.0%
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Occupancy target: 85%‑87% (adjusted for HBC lease disclaims)
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Acquisition – Promenades St‑Bruno (Montreal, QC):
- Total consideration: $482.1 M (cash $320 M; 10,000,000 Trust Units @ $14.75 each; 7,476,636 Trust Units @ $21.40 each; 3,971,963 Exchangeable Preferred LP Units)
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Equity portion funded via bought‑deal offering of 11,448,559 Trust Units (including over‑allotment).
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Financing – Green Debentures:
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$250 M aggregate principal, Series I senior unsecured, fixed 3.845% annual rate, maturity Oct 9 2030.
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Distribution Increase:
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Board approved raise from $0.86 to $0.88 per unit (2.3% increase), effective for the distribution declared Dec 31 2025 and payable Jan 16 2026.
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Leasing Activity:
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190 leasing deals covering 0.5 M sq ft signed in Q3; weighted‑average spread on renewals: 5.3% (5.6% commercial, 4.0% large format).
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Asset Transactions:
- Disposed of three strip plazas (Medicine Hat) and one open‑air plaza (Calgary).
- Purchased for cancellation 353,500 Trust Units under NCIB at $15.18 per unit (~29.7% discount to NAV).
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Additional NCIB purchase: 12,500 Units @ $0.2 M total (average $14.28, ~33.8% discount).
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Sustainability & GRESB:
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Launched 2026‑2028 Sustainability Plan; third annual GRESB submission earned 3 green stars (+4 points to 84) and Sector Leader status in 2025 benchmark.
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Capital Structure (as of Sep 30 2025):
- Total assets: $4.923 B; total debt: $2.049 B; average net debt/adjusted EBITDA: 5.9× (target 4‑6×).
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Interest coverage: 3.0×; unsecured debt: $1.8 B; secured debt: 12.1% of total debt.
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Conference Call: Thursday, Oct 30 2025 at 10:00 a.m. ET (dial‑in details provided).
Notable Quotes
- “Our shopping centre portfolio continues to perform well with strong rental revenue growth and robust leasing momentum,” – Patrick Sullivan, President & COO.
- “Primaris’ high‑quality acquisitions now exceed $3.3 B since 2021, driving significant NOI growth potential,” – Alex Avery, CEO.
- “The fifth annual distribution increase reflects our differentiated financial model and strong operating metrics,” – Rags Davloor, CFO.