Primaris REIT Announces Strong Q4 and Full Year 2025 Results

Executive Summary

• Primaris reported Q4 2025 and full‑year 2025 results with net income of $60.8 M, total rental revenue of $188.3 M, and FFO per diluted unit of $0.513 (up 11.6% YoY).
• The Trust raised its 2026 FFO guidance to $1.85‑$1.90 per unit (previously $1.83‑$1.88) and increased the distribution rate to $0.88 per unit (up 2.3%).
• Significant capital actions: issued $250 M of 5‑year green debentures at 3.845% fixed, bought $162 M of Trust Units on a bought‑deal basis, and repurchased 515 k units for $8.0 M at $15.49 per unit (≈27% discount to NAV).

Key Details

• Financial Highlights – Q4 2025
• Rental revenue: $188.3 M (net of $1.0 M HBC impact)
• Same‑properties Cash NOI growth: +6.8% (or +2.6% excluding prior‑year adjustments)
• Occupancy: 90.6% committed, 87.2% in‑place (incl. HBC vacancy)
• Weighted‑average net rent: $31.78 / sf (up 11.3% on renewals)
• FFO per diluted unit: $0.513 (↑ 11.6%)
• Net income: $60.8 M

• Liquidity: $644.3 M; unencumbered assets: $4.75 B

• Annual Highlights – FY 2025

• Same‑properties Cash NOI growth: +5.6% YoY
• FFO per diluted unit: $1.846 (↑ 9.2%)

• FFO payout ratio: 46.7%

• Guidance – FY 2026

• Updated FFO per diluted unit: $1.85‑$1.90 (previously $1.83‑$1.88)
• Distribution rate: $0.88 per unit (up 2.3%) effective Dec 31 2025
• Occupancy target: 86%–88% (unchanged)
• Contractual rent steps: $5.0‑$5.5 M (up from $3.5‑$4.0 M)

• Straight‑line rent adjustment: $8.5‑$9.5 M

• Acquisitions & Dispositions

• Acquired Promenades St‑Bruno (Montreal, QC).

• Disposed of Northland and Northland Professional Centre (Calgary, AB) for ~$154 M.

• Financing Activity

• Issued $250 M aggregate principal amount of 5‑year senior unsecured green debentures, fixed rate 3.845%, weighted‑average term 6.2 years, reducing overall debt cost to 5.07%.
• Bought‑deal issuance of 11,448,599 Trust Units for net proceeds of $162 M.

• Repurchased 515,000 Trust Units under the NCIB at an average price of $15.49/unit, a ≈27% discount to NAV.

• Capital Structure

• Total assets: $5.28 B; total liabilities: $2.75 B.
• Net debt/Adjusted EBITDA: 5.8× (unchanged).

• Interest coverage: 3.1×.

• Liquidity & Balance Sheet

• Cash & equivalents: $644.3 M (≈29% of total debt).

• Unencumbered assets to unsecured debt ratio: 2.4×.

• Operational Metrics

• Number of properties: 32 (down from 37 YoY).
• GLA (share): 15.2 M sf (up from 13.3 M sf).

• In‑place occupancy: 87.2% (down from 94.5% in 2024, impacted by HBC closures).

• Conference Call

• Date/Time: Thursday Feb 12 2026, 10:00 a.m. ET; replay available until Feb 19 2026.

Notable Quotes

• “Primaris significantly augmented its portfolio in 2025 recycling capital with $1.6 B of leading enclosed shopping centre acquisitions…,” – Patrick Sullivan, President & COO
• “In 2026, Primaris will continue to leverage the competitive advantages of its mall management platform… delivering best‑in‑class operating and financial results,” – Alex Avery, CEO
• “Our differentiated financial model… provides meaningful financial flexibility, allowing us to pursue strategic transactions while maintaining one of the strongest balance sheets in the industry,” – Rags Davloor, CFO