Primaris REIT Provides Leasing and Status Update on Former Anchor Space

Executive Summary

• Primaris now controls the full 1.3 M sq.ft. of former Hudson’s Bay Company (HBC) space and 0.5 M sq.ft. of former Sears space, accelerating re‑leasing and redevelopment plans.
• Approximately 516,000 sq.ft. of former HBC area has already been leased to single‑tenant users with minimal capital outlay; Walmart confirmed for 139,000 sq.ft. at the former Sears space in Lime Ridge Mall.
• Capital expenditures are projected at $125–$150 M for HBC sites and $20–$30 M for Sears sites over the next three years, with expected yields of 7%‑12%; released land (70.8 acres) could be valued between $150 M and $250 M+.

Key Details

• Control Acquired: Full ownership of all former HBC GLA (1.3 M sq.ft.) and former Sears GLA (0.5 M sq.ft.).
• Leasing Progress:
• 516,000 sq.ft. of former HBC space leased to single‑tenant users with minimal capex.
• Walmart secured 139,000 sq.ft. at former Sears space in Lime Ridge Mall.
• Demolition & Redevelopment:
• 303,000 sq.ft. of former Sears GLA slated for demolition at Les Galeries de la Capitale and Oshawa Centre to enable out‑parcel development.
• Capital Expenditure Estimates:
• HBC sites: $125 M–$150 M over three years (≈7%‑12% yield).
• Sears sites: $20 M–$30 M for demolitions and redevelopment.
• Land Value Release: 70.8 acres freed from “no‑build” and parking restrictions, valued at $150 M–$250 M+ (not yet reflected in IFRS fair values).
• Residential Master‑Planning: 6,300 residential units planned on excess lands at Les Galeries de la Capitale, Orchard Park, Place d’Orleans, and Sunridge Mall.
• Guidance Impact: No change to 2025 or 2026 guidance despite the extensive redevelopment program.
• Financial Metrics (pro forma as of Dec 9 2025):
• Weighted average net rent increased from $30.29/ft² to $31.42/ft².
• CRU tenants’ average rent: $49.13/ft²; large‑format tenants: $17.16/ft².
• Tenant Mix Evolution: HBC’s contribution fell to 1.4% of minimum rent (down from 9.5% in 2010); top five tenants now contribute 16.5% of minimum rent.
• Timeline Highlights:
• Q1‑Q2 2026: Expected possession/opening of short‑term leases at Les Galeries de la Capitale, Sunridge Mall, and other sites.
• Q4 2025–Q1 2027: Walmart lease commencement at Lime Ridge Mall.

Notable Quotes

• “The departure of Canada’s final department store is an enormous opportunity… we expect to enter into agreements in the coming months.” – Patrick Sullivan, President & COO
• “Perhaps even more impactful is the 70.8 acres of land no longer subject to ‘no‑builds’… valued at between $150 M and $250 M or more.” – Alex Avery, CEO