Primaris REIT Announces Q1 2026 Results; Reaffirms Guidance

Company Website: https://www.primarisreit.com TORONTO -- (Business Wire) Primaris Real Estate Investment Trust (“Primaris” or “the Trust”) (TSX: PMZ.UN) announced today financial and operating results for the first quarter ended March 31, 2026. Financial and Operating Results Highlights $177.0 million total rental revenue; $734 per square foot total same stores sales productivity; -2.1% change in Same Properties Cash Net Operating Income** ("Cash NOI") growth (or +1.7% excluding the $2.5 million prior year property tax recoveries recorded in 2025); 89.9% committed occupancy, 86.4% in-place occupancy (including vacancy from disclaimed HBC locations of 1.0 million square feet), and 82.4% long-term in-place occupancy; 78.5% combined recovery ratio; +5.5% weighted average spread on renewing net rents across 372,000 square feet; 154 CRU lease deals across 288,000 square feet at average net rents of $53.60; -3.2% change in Funds from Operations** ("FFO") per average diluted unit to $0.425; (or +1.6% excluding the $2.5 million prior year property tax recoveries recorded in 2025); 51.8% FFO Payout Ratio**; $41.9 million in net income; $5.3 billion total assets; 6.0x Average Net Debt** to Adjusted EBITDA**; $626.8 million in liquidity*; $4.8 billion in unencumbered assets; and $21.50 Net Asset Value** ("NAV") per unit outstanding. Business Update Highlights Julian Schonfeldt joined as Chief Investment Officer, strengthening the management team and enhancing focus across the organization; 70% of former HBC space is in advanced negotiations, with 35% committed or conditionally leased; Morningstar DBRS confirmed Primaris' credit rating of BBB (High) with Stable Trend; and Purchased for cancellation 195,300 Trust Units under the Trust's normal course issuer bid ("NCIB") program for proceeds of $3.3 million at an average price per unit of approximately $17.10, representing a discount to NAV** per unit of approximately 20.5%. ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the management's discussion and analysis for the three months ended March 31, 2026 and 2025 (the "MD&A"). * Denotes a supplementary financial measure. See "Use of Operating Metrics". See also Section 1, "Basis of Presentation" - "Use of Operating Metrics" of the MD&A. “The quarter reflected strong leasing and operational execution across the portfolio,” said Patrick Sullivan, President and Chief Operating Officer. “Leasing velocity accelerated, with a high volume of lease deals completed at higher rents, while solid CRU occupancy across the portfolio continued to be supported by sustained tenant demand and strong retail fundamentals. At former HBC locations, the team is making continued progress and moving closer to solidifying leasing deals across a number of sites. The leasing activity underway will support structurally higher internal growth over time." “Our first quarter results reinforce the durability of Primaris’ cash flows and the strength of our financial position,” said Alex Avery, Chief Executive Officer. “The portfolio continues to generate solid operating performance, supported by robust leasing activity, and resilient occupancy. With strong liquidity, very low leverage, and a low payout ratio, we are well positioned to fund internal growth, enhance portfolio quality, and create long‑term value for our unitholders." Rags Davloor, Chief Financial Officer added, "Our low leverage, low payout ratio model is a critical pillar to our strategy. We have significant liquidity with the full availability on our unsecured credit facility with no debt maturing in 2026. The recent credit rating confirmation of BBB high with a stable trend underscores the continued resiliency of our financial profile. Combined with our disciplined approach to capital allocation, these factors provide us with the flexibility to support reinvestment into our platform, future acquisitions, and NCIB activity.” 2026 Financial Outlook Disciplined capital allocation is a key pillar to Primaris' strategy. To this end, Primaris established certain targets for managing the Trust's financial condition and maintaining a conservative capital structure (see Section 3, "Business Overview and Strategy" of the MD&A). Guidance: In addition to its established targets, Primaris has provided guidance for the full year of 2026. The most recent previously published guidance for the full year of 2026 is reproduced below and has been updated to reflect management's current expectations based on the most recent information available to management.   2026 Guidance     (unaudited) Previously Published Updated Additional Notes MD&A Section Reference Occupancy 86% to 88% No change in guidance   Section 8.1, "Occupancy" Contractual rent steps in rental revenue $5.0 to $5.5 million No change in guidance   Section 9.1, "Components of Net Income (Loss)" Straight-line rent adjustment in rental revenue $8.5 to $9.5 million No change in guidance   Section 9.1, "Components of Net Income (Loss)" Same Properties1 Cash NOI** growth 1.0% to 3.0% No change in guidance Same Property Cash NOI** growth excludes approximately $6 million of prior year impacts included in Cash NOI** in the 2025 fiscal year Section 9.1, "Components of Net Income (Loss)" Cash NOI** $390 to $400 million No change in guidance Includes revenue of $1.1 million from the expected recovery of property taxes from prior years Section 9.1, "Components of Net Income (Loss)" General and administrative expenses $40 to $42 million $42 to $44 million Impact of the actual unit-based compensation expense in the first quarter Section 9.1, "Components of Net Income (Loss)" Operating capital expenditures Recoverable Capital $28 to $30 million Leasing Capital $25 to $30 million No change in guidance   Section 8.7, "Operating Capital Expenditures" Redevelopment capital expenditures $60 to $64 million No change in guidance Approximately $35 million attributable to vacant HBC anchor spaces Section 7.4, "Redevelopment and Development" FFO** per unit2 fully diluted $1.85 to $1.90 No change in guidance Guidance includes no disposition activity and no material acquisition activity Section 9.2, "FFO** and AFFO**" ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Properties owned throughout the entire 24 months ended December 31, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties" for the purpose of the 2026 guidance. 2 Units outstanding and weighted average units outstanding assume the exchange of exchangeable preferred units in subsidiary limited partnerships of the Trust that are exchangeable into Trust Units ("Exchangeable Preferred LP Units into Trust Units"). See Section 10.6, "Unit Equity and Distributions" of the MD&A. In the press release dated September 24, 2024, Primaris released targets for the period ending December 31, 2027. These targets are not guidance, but are an outlook based on the execution of Primaris' strategic pillars. (unaudited) 3 Year Targets Progress to Date Additional Notes MD&A Section Reference In-place Occupancy New Target: 94% to 96% (updated July 30, 2025) Prior Target: 96%   Target reduced to reflect impact of HBC and acquisition activity which increased HBC exposure.   In-place occupancy was 92.4% at December 31, 2023 In-place occupancy was 94.5% at December 31, 2024 In-place occupancy was 87.2% at December 31, 2025 In-place occupancy was 86.4% at March 31, 2026 Section 8.1, "Occupancy" Annual Same Properties Cash NOI** growth 3% to 4%   Growth for the year ended December 31, 2023 was 5.4% Growth for the year ended December 31, 2024 was 4.5% Growth for the year ended December 31, 2025 was 5.6% Section 9.1, "Components of Net Income (Loss)" Acquisitions > $1 billion   Achieved $1,891 million October 1, 2024 - Les Galeries de la Capitale January 31, 2025 - Oshawa Centre and Southgate Centre June 17, 2025 - Lime Ridge Mall and Professional Centre October 10, 2025 - Promenades St-Bruno Section 7.3, "Transactions" Dispositions > $500 million $432 million December 13, 2024 - Edinburgh Market Place February 21, 2025 - excess land February 28, 2025 - Sherwood Park Mall and Professional Centre March 31, 2025 - St. Albert Centre May 30, 2025 - Lansdowne Industrial July 21, 2025 - Carry Drive, Dunmore Plaza and Park Plaza July 23, 2025 - Northpointe Town Centre December 19, 2025 - Northland and Northland Professional Centre Section 7.3, "Transactions" Annual FFO** per unit1 growth (fully diluted) 4% to 6%   Growth for the year ended December 31, 2023 was 0.5% Growth for the year ended December 31, 2024 was 6.5% Growth for the year ended December 31, 2025 was 9.2% Section 9.2, "FFO** and AFFO**" Annual Distribution Growth 2% to 4%   In November 2022 announced a 2.5% increase In November 2023 announced a 2.4% increase In November 2024 announced a 2.4% increase In November 2025 announced a 2.3% increase Section 10.6, "Unit Equity and Distributions" ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Per weighted average units outstanding calculated on a diluted basis, assuming the exchange of Exchangeable Preferred LP Units into Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. Readers are cautioned that there could be a significant risk that actual results for the year ending December 31, 2026 and the Trust's actual performance against the targets for the period ending December 31, 2027 as set forth above will vary from the financial outlook statements provided in this press release and that such variations may be material. See Section 2, "Forward-Looking Statements and Financial Outlook" of the MD&A for a description of the material factors, assumptions, risks and uncertainties that could impact the financial outlook statements. Select Financial and Operational Metrics As at or for the three months ended March 31, (in '000s of Canadian dollars unless otherwise indicated) (unaudited)   2026     2025   Change             Number of investment properties   32       36       (4 ) Gross leasable area ("GLA") (in millions of square feet) (at Primaris' share)   15.1       14.2       0.9   Long-term in-place occupancy   82.4 %     89.2 %     (6.8 )% In-place occupancy   86.4 %     93.2 %     (6.8 )% Committed occupancy   89.9 %     94.2 %     (4.3 )% Weighted average net rent per occupied square foot* $ 32.04     $ 26.61     $ 5.43   Weighted average lease term (in years)   4.0       4.0       —   Same stores sales productivity*,1 $ 801     $ 788     $ 13   Same stores sales productivity growth3   1.6 %     12.4 %     n/a   Total assets $ 5,287,430     $ 4,596,120     $ 691,310   Total liabilities $ 2,742,819     $ 2,400,472     $ 342,347   Total current liabilities $ 786,925     $ 522,361     $ 264,564   Total rental revenue $ 177,041     $ 150,214     $ 26,827   Cash flow from (used in) operating activities $ 20,129     $ 21,587     $ (1,458 ) Distributions per Trust Unit $ 0.220     $ 0.215     $ 0.005   Cash Net Operating Income** ("Cash NOI") $ 92,630     $ 80,423     $ 12,207   Same Properties2 Cash NOI** growth3   (2.1 )%     9.4 %     n/a   Combined recovery ratio   78.5 %     78.1 %     0.4 % Net income (loss) $ 41,918     $ 31,147     $ 10,771   Net income (loss) per unit4 $ 0.305     $ 0.257     $ 0.048   Funds from Operations** ("FFO") per unit4- average diluted $ 0.425     $ 0.439     $ (0.014 ) FFO** per unit growth3   (3.2 )%     13.3 %     n/a   FFO Payout Ratio**   51.8 %     49.0 %     2.8 % Adjusted Funds from Operations** ("AFFO") per unit4 - average diluted $ 0.354     $ 0.346     $ 0.008   AFFO** per unit growth3   2.3 %     22.7 %     n/a   AFFO Payout Ratio**   62.1 %     62.1 %     — % Weighted average units outstanding4 - diluted (in thousands)   139,126       119,965       19,161   ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. * Supplementary financial measure. See "Use of Operating Metrics". See also Section 1, "Basis of Presentation" - "Use of Operating Metrics" of the MD&A. 1 For the rolling twelve-months ended February 28, 2026 and 2025, respectively. 2 Properties owned throughout the entire 15 months ended March 31, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties". 3 Prior period growth rates not restated for current period property categories. 4 Per unit calculations, outstanding units and weighted average diluted units outstanding assume the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. Select Financial and Operational Metrics (continued) As at or for the three months ended March 31, (in '000s of Canadian dollars unless otherwise indicated) (unaudited)   2026     2025   Change             Net Asset Value** ("NAV") per unit outstanding1 $ 21.50     $ 21.40     $ 0.10   Average Net Debt** to Adjusted EBITDA**3 6.0x   5.7x   0.3x Interest Coverage**2,3 3.1x   3.0x   0.1x Liquidity * $ 626,806     $ 648,462     $ (21,656 ) Unencumbered assets $ 4,791,489     $ 4,026,170     $ 765,319   Unencumbered assets to unsecured debt 2.4x   2.5x   (0.1)x Secured debt as a percent of Total Debt**   11.2 %     13.4 %     (2.2 )% Total Debt** to Total Assets**2   41.5 %     40.7 %     0.8 % Fixed rate debt as a percent of Total Debt**   100.0 %     96.2 %     3.8 % Weighted average term to debt maturity - Total Debt** (in years)   3.8       4.2       (0.4 ) Weighted average interest rate of Total Debt**   5.07 %     5.20 %     (0.13 )% ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. * Supplementary financial measure. See "Use of Operating Metrics". See also Section 1, "Basis of Presentation" - "Use of Operating Metrics" of the MD&A. 1 Units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. 2 Calculated on the basis described in the trust indenture and supplemental indentures that govern the Trust's senior unsecured debentures (collectively, the "Trust Indentures"). See Section 10.4, "Capital Structure" of the MD&A. 3 For the rolling four-quarters ended March 31, 2026 and 2025. Operating Results For the three months ended March 31, 2026   2025   Change (in '000s of Canadian dollars except per unit amounts) (unaudited) Contribution   per unit1   Contribution   per unit1   Contribution   per unit1                         NOI** from:                       Same Properties2 $ 66,845     $ 0.480     $ 69,411     $ 0.579     $ (2,566 )   $ (0.021 ) Acquisitions   28,501       0.205       6,671       0.056       21,830       0.182   Dispositions   —       —       6,053       0.050       (6,053 )     (0.050 ) Property management fees, interest and other income   1,298       0.009       2,325       0.019       (1,027 )     (0.009 ) Net interest and other financing charges (excluding distributions on Exchangeable Preferred LP Units)   (29,300 )     (0.210 )     (25,455 )     (0.212 )     (3,845 )     (0.032 ) General and administrative expenses (net of internal costs for leasing activity)   (8,090 )     (0.058 )     (6,084 )     (0.051 )     (2,006 )     (0.017 ) Amortization   (145 )     (0.001 )     (220 )     (0.002 )     75       0.001   Impact from variance of units outstanding   —       —       —       —       —       (0.068 ) FFO** and FFO** per unit - average diluted1 $ 59,109     $ 0.425     $ 52,701     $ 0.439     $ 6,408     $ (0.014 ) FFO** per unit growth       (3.2 )%                 ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Per weighted average diluted unit. Weighted average units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. Per unit calculations separate the impact of change in contribution from the change in the weighted average diluted units outstanding. 2 Properties owned throughout the entire 15 months ended March 31, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties". FFO** for the three months ended March 31, 2026 was $0.014 per unit 3.2% lower than the same period of the prior year. Same Properties NOI** declined by $0.021 per unit and general and administrative expenses increased $0.017 per unit. In addition, net interest and other financing charges were higher by $0.032 per unit, and the net change in the weighted average units diluted outstanding accounted for a decrease of $0.068 per unit. The negative impacts from interest and change in average number of units, totaling $0.100 per unit, were primarily driven by the 2025 capital recycling activities. The 2025 disposition activity decreased NOI** by $0.050 per unit and the 2025 acquisition activity increased NOI** by $0.182 per unit, for a net impact from capital recycling activities of $0.032 per unit. FFO** for the three months ended March 31, 2025 included revenue of $2.5 million from prior years tax recoveries (nil in 2026) and $2.4 million from the now disclaimed HBC leases. Excluding only the 2025 revenue from the recovery of prior years' property taxes, FFO** per unit would have been $0.007, or 1.6%, higher than the same period of the prior year. This growth value reflects the impact of the leasing activity over the lost revenue from the disclaimed HBC leases. While impacts from prior years occur regularly, management believes the amount considered in the analysis above represents a prior year impact in excess of historic norms. The FFO Payout Ratio** for the three months ended March 31, 2026 of 51.8% was over the targeted range due to seasonality of earnings however, management anticipates the ratio will realign with target levels over the fiscal year. Same Properties Cash NOI** was $1.4 million, or 2.1%, lower than the same period of the prior year. Same Properties shopping centres' Cash NOI** decreased $1.5 million, or 2.4%, over the same period of the prior year. The decrease in the Same Properties shopping centres' Cash NOI** was primarily driven by $2.5 million recovery of property taxes from prior years recorded in 2025 (nil in 2026) and $1.1 million decrease in Cash NOI** due to the disclaimed HBC leases. Excluding only the 2025 revenue from the recovery of prior years' property taxes, Same Properties shopping centres' Cash NOI** growth would have been an increase of 1.7%. This growth value reflects the impact of the leasing activity over the lost revenue from the disclaimed HBC leases. While impacts from prior years occur regularly, management believes the amount considered in the analysis above represents a prior year impact in excess of historical norms. Redevelopment projects contributed $0.2 million of incremental rent to the portfolio for the three months ended March 31, 2026 (see Section 7.4, "Redevelopment and Development" of the MD&A). The table below illustrates the composition of AFFO** and the drivers of the change for the three months ended March 31, 2026 as compared to the same period in 2025. For the three months ended March 31,   (in '000s of Canadian dollars except per unit amounts) (unaudited) 2026   2025   Change Contribution   per unit1   Contribution   per unit1   Contribution   per unit1                         FFO** $ 59,109     $ 0.425     $ 52,701     $ 0.439     $ 6,408     $ 0.053   Internal expenses for leases   (2,694 )     (0.019 )     (2,448 )     (0.020 )     (246 )     (0.002 ) Straight-line rent   (1,671 )     (0.012 )     (1,368 )     (0.011 )     (303 )     (0.003 ) Recoverable and non-recoverable costs   (1,380 )     (0.010 )     (1,350 )     (0.012 )     (30 )     —   Tenant allowances and leasing costs   (4,098 )     (0.030 )     (6,017 )     (0.050 )     1,919       0.016   Impact from variance of units outstanding   —       —       —       —       —       (0.056 ) AFFO** and AFFO** per unit - average diluted1 $ 49,266     $ 0.354     $ 41,518     $ 0.346     $ 7,748     $ 0.008   AFFO** per unit growth       2.3 %                 ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Per weighted average diluted unit. Weighted average units outstanding assume the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. Occupancy and Leasing Results Primaris’ leasing activities are focused on driving value by actively managing the tenant and merchandising mix at its investment properties. In-place occupancy for the portfolio decreased 6.8% from March 31, 2025 to 86.4% at March 31, 2026. In-place occupancy for Same Properties decreased 4.6% from March 31, 2025 to 89.4% at March 31, 2026. The disclaimed HBC leases negatively impacted occupancy for Same Properties by approximately 4.2% compared to March 31, 2025. Average in-place occupancy is calculated by averaging the occupied square feet and total GLA for each month in the measurement period. For the three months ended March 31, 2026, the average in-place occupancy rate was 86.1%, a decrease of 7.2% compared to March 31, 2025, due to the impact of the Acquisitions and the disclaimed HBC leases. As at 2026 Count In-place Occupancy     March 31, 2026 December 31, 2025 March 31, 2025           Shopping centres1 23 89.0 % 90.2 % 93.8 % Other properties2 4 96.8 % 96.8 % 97.3 % Same Properties in-place occupancy3 27 89.4 % 90.6 % 94.0 % Acquisitions4 5 76.1 % 76.2 % 88.5 % In-place occupancy excluding dispositions 32 86.4 % 87.2 % 93.3 % Dispositions5   —   —   91.9 % In-place occupancy   86.4 % 87.2 % 93.2 % Average in-place occupancy         Three months ended   86.1 % 88.9 % 93.3 % 1 Shopping centres classified as Same Properties include 22 enclosed malls and 1 open air centre, Highstreet Shopping Centre in Abbotsford, BC. 2 Other properties classified as Same Properties include 2 plazas and 2 office buildings. 3 Properties owned throughout the entire 15 months ended March 31, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties". 4 Acquisitions includes 4 enclosed malls and 1 professional centre (see Section 7.3, "Transactions" of the MD&A). 5 Dispositions represents the sale of properties in 2025 and 2024 (see Section 7.3, "Transactions" of the MD&A). In the quarter, Primaris completed 193 leasing deals totaling 565 thousand square feet. The majority of the leasing deals were for CRU tenants comprising 154 deals over 288 thousand square feet at average net rents of $53.60. The weighted average spread on renewing net rents* (for the 114 leases renewed in the quarter) was 5.5% (7.9% for commercial retail unit renewals and 1.4% for large format renewals). HBC Exposure Primaris has full control of all 1.3 million square feet of former HBC GLA and has accelerated negotiations with retailers. The Trust’s leasing strategy is twofold: firstly, execute long term leases with single tenant and multi-tenant configurations, (“Re-leasing Plans”) where appropriate; and secondly, repurpose and subdivide space (“Redevelopment Plans”), to accommodate multiple large format tenants, and/or high-value CRU. While design, permitting, and planning activities are underway, Primaris is executing short-term leases with reputable tenants to restore rental income until Re-leasing Plans and Redevelopment Plans are executed. With strong demand from retailers for space and improved visibility into Primaris' Redevelopment Plans, management now anticipates the retention and redevelopment of a greater portion of the former HBC space than previously contemplated. Management anticipates retaining approximately 90% of the former HBC space. Approximately 35% of this space is under committed or conditional leasing and the remainder is in advanced negotiations with retailers. The capital investment to redevelop this space is expected to be in the range of $175 million to $225 million. Management's current estimates and assumptions are subject to change. The following table illustrates Primaris’ anticipated Re-leasing and Redevelopment Plans for the eleven former HBC locations. (in ‘000s square feet, unless otherwise indicated) (unaudited) Property GLA (thousands of square feet) HBC GLA (thousands of square feet) Strategy Cataraqui Town Centre (50% owned) Kingston, ON 286.3 56.5 Re-leasing Les Galeries de la Capitale Québec, QC 988.4 163.0 Re-leasing Medicine Hat Mall Medicine Hat, AB 467.8 93.2 Re-leasing Place d’Orleans Shopping Centre (50% owned) Orleans, ON 350.0 57.8 Re-leasing Sunridge Mall Calgary, AB 803.6 161.3 Re-leasing Disclaimed on June 16, 2025   2,896.1 531.8   Promenades St-Bruno Montreal, QC 1,098.3 130.7 Re-leasing Conestoga Mall Waterloo, ON 665.8 130.6 Redevelopment Lime Ridge Mall Hamilton, ON 810.8 125.3 Re-leasing Orchard Park Shopping Centre Kelowna, BC 651.1 127.3 Redevelopment Oshawa Centre Oshawa, ON 1,076.3 122.6 Re-leasing Southgate Centre (50% owned) Edmonton, AB 422.9 118.3 Re-leasing Disclaimed November 27, 2025   4,725.2 754.8   11 locations   7,621.3 1,286.6   Robust Liquidity and Differentiated Financial Model The following table summarizes key metrics relating to Primaris' unencumbered assets and unsecured debt. ($ thousands) (unaudited) As at Target Ratio March 31, 2026   December 31, 2025   Change               Unencumbered assets - number     26     26     — Unencumbered assets - value   $ 4,791,489   $ 4,754,095   $ 37,394 Unencumbered asset value as a percentage of the investment properties' value     91.9%     91.8%     0.1% Secured debt to Total Debt** <40%   11.2%     11.3%     (0.1)% Unsecured Debt   $ 1,950,000   $ 1,950,000   $ — Unencumbered assets to unsecured debt   2.4x   2.4x     — Unencumbered assets in excess of unsecured debt   $ 2,841,489   $ 2,804,095   $ 37,394 Percent of Cash NOI** generated by unencumbered assets     91.2%     89.7%     1.5% ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. Liquidity* at quarter end was $626.8 million, or 29% of Total Debt**. Primaris' NAV** per unit outstanding at quarter end was $21.50. Subsequent Events On April 9, 2026, Primaris announced the acquisition of a non-managing 25% interest in two open-air retail centres which are located immediately adjacent to Primaris’ enclosed shopping centre, Les Galeries de la Capitale in Quebec City, Quebec, for consideration of $15.6 million, before acquisition costs. Purchased for cancellation an additional 110,000 Units under the ASPP pursuant to the NCIB, for total consideration of $2.0 million as of April 29, 2026, for total NCIB repurchases since inception of the Trust of 15,372,409 Units at an average price of $14.38, or a discount to NAV** per unit of approximately 33.1%. Conference Call and Webcast:   Date: Thursday April 30, 2026, at 11:30 a.m. (ET) Dial: 1-833-461-5787 Passcode: 900547134 Link: Please go to the Investor Relations section on Primaris’ website or click here. Annual General Meeting   Date: Thursday April 30, 2026, at 10:00 am (ET) Virtual: To attend virtually please go to the Investor Relations section on Primaris' website or click here. In-Person: Blake, Cassels, & Graydon LLP, 199 Bay Street, 40th Floor, Suite 4000, Toronto, Canada, M5L 1A9. The Annual General Meeting will be accessible for replay until April 30, 2027 on the Investor Relations section of the Primaris website. About Primaris Real Estate Investment Trust Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.1 million square feet, valued at approximately $5.2 billion at Primaris’ share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape. Forward-Looking Statements and Financial Outlook Certain statements included in this news release constitute ‘‘forward-looking information’’ or “forward-looking statements” within the meaning of applicable securities laws. The words “will”, “expects”, “plans”, "estimates", “intends” and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements made or implied in this news release include but are not limited to statements regarding: Primaris' growth opportunities, including its ability to drive performance from it existing properties, expected future distributions, future acquisition and disposition activity and the re-leasing and redevelopment plans for former HBC locations. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on estimates and assumptions that are inherently subject to risks and uncertainties. Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, actual results, performance or achievements of Primaris may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in the Trust's Annual Information Form for the year ended December 31, 2025 (the "AIF") and in the Trust's management's discussion and analysis for the three months and year ended December 31, 2025 (the "Annual MD&A"), each of which are available on SEDAR+, and in Primaris’ other materials filed with the Canadian securities regulatory authorities from time to time. Given these risks, undue reliance should not be placed on these forward-looking statements. Certain forward-looking information included in this news release may also be considered “financial outlook” for purposes of applicable securities law, including statements under the heading "2026 Financial Outlook". Financial outlook about the Trust’s prospective results of operations including, without limitation, anticipated FFO** per unit fully diluted, anticipated Cash NOI** and Same Properties Cash NOI** growth, impact on rental revenue of contractual rent-steps, anticipated general and administrative expenses, management's expectations regarding future FFO Payout Ratios**, anticipated operating capital expenditures, anticipated redevelopment capital expenditures, anticipated straight-line rent adjustment to revenue, anticipated occupancy, and the Trust's targets for the period ending December 2027 for a number of key metrics, including in-place occupancy, annual Same Properties Cash NOI** growth, acquisition and disposition activity, annual FFO** per unit growth (fully diluted) and annual distribution growth, is subject to the same material assumptions, risk factors, limitations and qualifications as set forth in the Annual MD&A, as updated by the MD&A, and the Trust's AIF. The Trust and management believe that such financial outlook has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, this information is subjective and subject to numerous risks. Financial outlook contained in this news release was provided for the purpose of providing further information about the Trust’s prospective financial performance and readers are cautioned that it should not be used for other purposes. Readers are also urged to examine the Trust’s materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of Primaris to differ materially from the forward-looking statements and financial outlook contained in this news release. All forward-looking statements and financial outlook in this news release are qualified by these cautionary statements. These forward-looking statements and financial outlook are made as of April 29, 2026 ,and Primaris, except as required by applicable securities laws, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances. Non-GAAP Measures Information in this news release is a select summary of results. This news release should be read in conjunction with the MD&A and the Trust's unaudited interim condensed consolidated financial statements and the accompanying notes for the three months ended March 31, 2026 and 2025 (the “Financial Statements”). The Financial Statements are prepared in accordance with IFRS accounting standards as issued by the IASB, however, in this news release, Primaris also uses a number of measures which do not have a standardized meaning prescribed under generally accepted accounting principles (“GAAP”) in accordance with IFRS. These non-GAAP measures, which are denoted in this news release by the suffix “**”, include non-GAAP financial measures and non-GAAP ratios, each as defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). None of these non-GAAP measures should be construed as an alternative to financial measures calculated in accordance with IFRS. Furthermore, these non-GAAP measures may not be comparable to similar measures presented by other real estate entities. A definition of each non-GAAP measure used herein and an explanation of the reasons why management believes the measure to be useful to investors can be found in the section entitled “Non-GAAP Measures” in the MD&A, which section is incorporated by reference into this news release, and a reconciliation to the most directly comparable financial measure in the Financial Statements, in each case, can be found below. The MD&A is available on the Trust’s profile on SEDAR+ at www.sedarplus.ca. Use of Operating Metrics Primaris uses certain operating metrics to monitor and measure the operational performance of its portfolio. Operating metrics in this news release include, among others, weighted average net rent per occupied square foot, weighted average spread on renewing rents, liquidity, same stores sales productivity and same stores sales productivity growth. These operating metrics, which may constitute supplementary financial measures as defined in NI 52-112, are not derived from directly comparable measures contained in the Financial Statements but may be used by management and disclosed on a periodic basis to depict the historical or future expected operating performance of the Trust's portfolio. For an explanation of the composition of weighted average net rent per occupied square foot, see Section 8.2, "Weighted Average Net Rent" of the MD&A. For an explanation of weighted average spread on renewing rents, see Section 8.3, "Leasing Activity" of the MD&A. For an explanation of liquidity, see Section 10.2, "Liquidity and Unencumbered Assets" of the MD&A. For an explanation of the composition of same store sales productivity, see Section 8.4, "Tenant Sales" of the MD&A. These supplementary financial measures are denoted in this news release by the suffix “*”. Primaris also uses certain non-financial operating metrics to describe its portfolio and portfolio operation performance. Non-financial operating metrics in this news release include, among others, number of investment properties, store count, GLA, in-place occupancy, committed occupancy, long-term in-place occupancy, and weighted average lease term. For the relationship of in-place occupancy to committed occupancy and to long-term in-place occupancy, see Section 8.1, "Occupancy" of the MD&A. For greater certainty, the portfolio operating metrics in the MD&A include only the Trust's proportionate ownership of the 8 properties held in co-ownerships (see Section 7.2, "Co-ownership Arrangements" of the MD&A). Reconciliations of Non-GAAP Measures The following table reconciles NOI** and Cash NOI** to rental revenue and property operating costs as presented in the Financial Statements. ($ thousands) (unaudited)       For the three months ended March 31,   2026     2025         Revenue $ 177,041     $ 150,214   Operating costs   (81,695 )     (68,079 ) Net Operating Income**   95,346       82,135   Exclude:       Straight-line rent adjustment   (1,671 )     (1,368 ) Lease surrender revenue   (1,045 )     (344 ) Cash Net Operating Income** $ 92,630     $ 80,423   Cash NOI** margin   53.1 %     54.2 % ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. The following tables are a further analysis of Cash NOI** above. ($ thousands) (unaudited)           For the three months ended March 31, Count     2026     2025             Cash Net Operating Income** from:           Shopping centres 23   $ 63,615     $ 65,157   Other properties 4     2,330       2,176   Same Properties Cash NOI**1 27     65,945       67,333   Same Properties Growth       (2.1 )%     Same Properties Cash NOI** Margin       52.2 %     53.8 % Acquisitions 5     26,685       6,506   Dispositions       —       6,584   Cash Net Operating Income** 32   $ 92,630     $ 80,423   ($ thousands) (unaudited)       For the three months ended March 31,   2026     2025         Same Properties NOI** $ 66,845     $ 69,411   Exclude:       Straight-line rent   (53 )     (1,734 ) Lease surrender revenue   (847 )     (344 ) Same Properties1 Cash NOI**   65,945       67,333   Same Properties Growth   (2.1 )%     Cash NOI** from:       Acquisitions   26,685       6,506   Disposition   —       6,584   Cash NOI** $ 92,630     $ 80,423   ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Properties owned throughout the entire 15 months ended March 31, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties". The following table illustrates the reconciliation of net income, as determined in accordance with GAAP, to FFO**. ($ thousands except per unit amounts) (unaudited)       For the three months ended March 31,   2026     2025         Net income (loss) $ 41,918     $ 31,147   Reverse:       Distribution on Exchangeable Preferred LP Units   6,591       5,679   Amortization of real estate assets   71       69   Adjustments to fair value of derivative instruments1   —       61   Adjustments to fair value of unit-based compensation   524       (686 ) Adjustments to fair value of Exchangeable Preferred LP Units   22,658       (8,510 ) Adjustments to fair value of income producing properties   (15,347 )     22,493   Internal costs for leasing activity2   2,694       2,448   Funds from Operations** $ 59,109     $ 52,701   FFO** per unit3 - average basic $ 0.429     $ 0.444   FFO** per unit3 - average diluted $ 0.425     $ 0.439   FFO Payout Ratio** - Target 45% - 50%   51.8 %     49.0 % Total distributions declared per unit $ 0.220     $ 0.215   Weighted average units outstanding3 - basic (in thousands)   137,664       118,704   Weighted average units outstanding3 - diluted (in thousands)   139,126       119,965   Number of units outstanding3 - end of period (in thousands)   137,545       121,366   ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 The definition of FFO*, as provided by REALPAC, allows for the changes in fair value of financial instruments which are economically effective hedges to be excluded from the calculation of FFO*. 2 Costs relating to full-time leasing and legal staff, included in general and administrative expenses, that can be reasonably and directly attributed to signed leases, and would otherwise be capitalized if incurred from external sources. 3 Per unit calculations, units outstanding and weighted average units outstanding assume the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. The following table illustrates the reconciliation of FFO** to AFFO**. ($ thousands except per unit amounts) (unaudited)       For the three months ended March 31,   2026     2025         Funds from Operations** $ 59,109     $ 52,701   Reverse:       Internal costs for leasing activity   (2,694 )     (2,448 ) Straight-line rent adjustment   (1,671 )     (1,368 ) Deduct:       Recoverable and non-recoverable costs   (1,380 )     (1,350 ) Tenant allowances and external leasing costs   (4,098 )     (6,017 ) Adjusted Funds from Operations** $ 49,266     $ 41,518   AFFO** per unit1 - average basic $ 0.358     $ 0.350   AFFO** per unit1 - average diluted $ 0.354     $ 0.346   AFFO Payout Ratio**   62.1 %     62.1 % Total distributions declared per unit $ 0.220     $ 0.215   Weighted average units outstanding1 - basic (in thousands)   137,664       118,704   Weighted average units outstanding1 - diluted (in thousands)   139,126       119,965   Number of units outstanding1 - end of period (in thousands)   137,545       121,366   ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Per unit calculations, units outstanding and weighted average units outstanding assume the exchange of Exchangeable Preferred LP Units to Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. The following table illustrates the calculation of NAV** per unit outstanding and Total Debt** to Total Assets**. ($ thousands) (unaudited) As at March 31, 2026   December 31, 2025   Change             Investment properties $ 4,955,503     $ 5,008,515     $ (53,012 ) Investment properties classified as held for sale   256,307       172,813       83,494   Cash and cash equivalents   58,814       67,786       (8,972 ) Other Assets   16,806       34,287       (17,481 ) Total assets $ 5,287,430     $ 5,283,401     $ 4,029   Mortgages payable $ 246,090     $ 247,310     $ (1,220 ) Senior unsecured debentures   1,950,000       1,950,000       —   Total Debt** $ 2,196,090     $ 2,197,310     $ (1,220 ) Deferred financing costs and debt discounts (net of accumulated amortization) excluded from Total Debt**   (8,851 )     (9,714 )     863   Exchangeable Preferred LP Units   410,575       387,917       22,658   Other liabilities   145,005       174,985       (29,980 ) Total liabilities $ 2,742,819     $ 2,750,498     $ (7,679 ) Unitholders' equity $ 2,544,611     $ 2,532,903     $ 11,708   Add: Exchangeable Preferred LP Units   410,575       387,917       22,658   Add: Obligation for purchase of Trust Units under automatic share purchase plan1   2,072       1,126       946   Net Asset Value** $ 2,957,258     $ 2,921,946     $ 35,312   NAV** per unit outstanding $ 21.50     $ 21.21     $ 0.29   Number of units outstanding2- end of period (in thousands)   137,545       137,740       (195 ) Total Debt** to Total Assets**3   41.5 %     41.6 %     (0.1 )% ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Liability recorded for the obligation to purchase Trust Units during the blackout period after March 31, 2026 under the automatic share purchase plan, but respective Trust Units were not yet cancelled. 2 Number of units outstanding assumes the exchange of Exchangeable Preferred LP Units to Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A. 3 This ratio is a non-GAAP ratio calculated on the basis described in the Trust Indentures. The following table illustrates the calculation of Average Net Debt** to Adjusted EBITDA**, Interest Coverage** and Debt Service Coverage** ratios. ($ thousands) (unaudited)   For the rolling 4-quarters ended March 31,   2026     2025   Change             Adjusted EBITDA** $ 343,203   $ 273,718   $ 69,485 Average Net Debt** $ 2,054,257   $ 1,560,239   $ 494,018 Average Net Debt** to Adjusted EBITDA** Target 4.0x - 6.0x 6.0x   5.7x   0.3x Interest expense1 $ 109,044   $ 91,021   $ 18,023 Interest Coverage**2 3.1x   3.0x   0.1x Principal repayments $ 4,761   $ 5,185   $ (424) Interest expense1 $ 109,044   $ 91,021   $ 18,023 Debt Service Coverage** 3.0x   2.8x   0.2x ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Interest expense includes interest on senior unsecured debentures, mortgages, and unsecured credit facilities. See Section 9.1, "Components of Net Income (Loss)" of the MD&A. 2 Calculated on the basis described in the Trust Indentures. The following table illustrates the reconciliation of net income (loss) to Adjusted EBITDA**. ($ thousands) (unaudited)       For the three months ended March 31,   2026     2025         Net income (loss) $ 41,918     $ 31,147   Interest income1   (360 )     (1,670 ) Net interest and other financing charges   35,891       31,134   Amortization of other assets   216       289   Adjustments to fair value of derivative instruments   —       61   Adjustments to fair value of unit-based compensation   524       (686 ) Adjustments to fair value of Exchangeable Preferred LP Units   22,658       (8,510 ) Adjustments to fair value of investment properties   (15,347 )     22,493   Adjusted EBITDA** $ 85,500     $ 74,258   ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Interest income earned on cash balances. The following tables illustrate Adjusted EBITDA** for the rolling four-quarters ended March 31, 2026 and 2025. ($ thousands) (unaudited)   Rolling 4-quarters                 For the periods   March 31, 2026   Q1 2026   Q4 2025   Q3 2025   Q2 2025 Adjusted EBITDA**   $ 343,203   85,500   98,268   82,013   77,422 ($ thousands) (unaudited)   Rolling 4-quarters                 For the periods   March 31, 2025   Q1 2025   Q4 2024   Q3 2024   Q2 2024 Adjusted EBITDA**   $ 273,718   74,258   71,761   64,909   62,790 ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. The following tables illustrate Average Net Debt** for the periods ended March 31, 2026 and 2025 based on the average of the Net Debt** at the beginning of the period and each quarter end during the period included in the calculation of Adjusted EBITDA**. ($ thousands) (unaudited)   As at   March 31, 2026   December 31, 2025   September 30, 2025   June 30, 2025   March 31, 2025 Total Debt**   $ 2,196,090     $ 2,197,310     $ 2,048,508     $ 2,081,182     $ 1,871,851   less: Cash and cash equivalents     (16,806 )     (34,287 )     (7,556 )     (5,546 )     (59,462 ) Net Debt**   $ 2,179,284     $ 2,163,023     $ 2,040,952     $ 2,075,636     $ 1,812,389   Average Net Debt**   $ 2,054,257                   ($ thousands) (unaudited)   As at   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024 Total Debt**   $ 1,871,851     $ 1,720,143     $ 1,741,434     $ 1,528,609     $ 1,530,074   less: Cash and cash equivalents and term deposit     (59,462 )     (114,774 )     (261,595 )     (80,756 )     (74,328 ) Net Debt**   $ 1,812,389     $ 1,605,369     $ 1,479,839     $ 1,447,853     $ 1,455,746   Average Net Debt**   $ 1,560,239                   ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. The following tables illustrate interest expense, for the calculation of the Interest Coverage** and Debt Service Coverage** ratios for the rolling four-quarters ended March 31, 2026 and 2025. ($ thousands) (unaudited)   Rolling 4-quarters                 For the periods   March 31, 2026   Q1 2026   Q4 2025   Q3 2025   Q2 2025 Interest expense1   $ 109,044   28,179   28,967   26,967   24,931 ($ thousands) (unaudited)   Rolling 4-quarters                 For the periods   March 31, 2025   Q1 2025   Q4 2024   Q3 2024   Q2 2024 Interest expense1   $ 91,021   25,277   23,436   22,104   20,204 ** Denotes a non-GAAP measure. See "Non-GAAP Measures". See also Section 1, "Basis of Presentation" – "Use of Non-GAAP Measures” and Section 12, "Non-GAAP Measures" of the MD&A. 1 Interest expense includes interest on senior unsecured debentures, mortgages, and unsecured credit facilities. See Section 9.1, "Components of Net Income (Loss)" of the MD&A. The following tables illustrate principal repayments, for the calculation of the Debt Service Coverage** ratio, for the rolling four quarters ended March 31, 2026 and 2025. ($ thousands) (unaudited)   Rolling 4-quarters                 For the periods   March 31, 2026   Q1 2026   Q4 2025   Q3 2025   Q2 2025 Principal repayments   $ 4,761   1,220   1,198   1,177   1,166 ($ thousands) (unaudited)   Rolling 4-quarters                 For the periods   March 31, 2025   Q1 2025   Q4 2024   Q3 2024   Q2 2024 Principal repayments   $ 5,185   1,172   1,149   1,399   1,465 For more information: TSX: PMZ.UN www.primarisreit.com www.sedarplus.ca   View source version on businesswire.com: https://www.businesswire.com/news/home/20260429482473/en/ Contacts: Alex Avery Chief Executive Officer 416-642-7837 [email protected] Rags Davloor Chief Financial Officer 416-645-3716 [email protected] Claire Mahaney VP, Investor Relations & Sustainability 647-949-3093 [email protected] Timothy Pire Chair of the Board [email protected] Source: Primaris Real Estate Investment Trust