Primaris Real Estate Investment Trust (PMZ.UN) AI Stock Analysis

• Market Cap: C$1.59B
• Dividend Yield: 5.75%
• Average Volume (3M): 184.29K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.74
• Revenue Growth: 23.01%
• EPS Growth: -50.29%
• Country: CA
• Employees: 314
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Retail
• EPS (TTM): 0.40
• Shares Outstanding: 107,307,880
• 10 Day Avg. Volume: 149,768
• 30 Day Avg. Volume: 184,286
• PEG Ratio: -0.74
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 10.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.17
• Price Target Upside: 22.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: C$16.50 ▲(11.19% Upside)

Primaris Real Estate Investment Trust shows a stable financial performance with strong revenue growth and operational efficiency. The earnings call provided a positive outlook with strategic acquisitions and improved financial metrics, although challenges like occupancy declines and increased interest costs need attention. The technical analysis indicates a neutral trend, and while the valuation suggests the stock might be overvalued, the attractive dividend yield provides a compensating factor.

Positive Factors

Analyst Ratings

Analysts have given a buy rating for Primaris Real Estate Investment Trust stock.

Financial Performance

Achieving financial targets should lead to healthy cash flow growth, with management guiding to same-property NOI growth driven by improvement in occupancy and greater rental rates.

Strategic Acquisitions

The acquisition of Les Galeries de la Capitale is consistent with management’s strategy to acquire higher quality malls that are dominant in their trade area and achieve above average sales.

Negative Factors

Financial Guidance

The Q4/24 preview indicates that 2025 guidance is a focal point, suggesting optimism for the company's future performance.

Primaris Real Estate Investment Trust Business Overview & Revenue Model

Company Description

Primaris Real Estate Investment Trust (PMZ.UN) is a real estate investment trust based in Canada that specializes in owning, managing, and developing retail properties. The company primarily focuses on shopping centers and commercial retail spaces across various regions, aiming to attract a diverse range of tenants from national and international retailers. Primaris is committed to enhancing the value of its properties through strategic leasing, property management, and development initiatives.

How the Company Makes Money

Primaris Real Estate Investment Trust generates revenue primarily through leasing its retail and commercial spaces to a variety of tenants, which include retail stores, restaurants, and service providers. The company's primary revenue stream is rental income, which is derived from long-term lease agreements with tenants. These leases typically include base rent and may also involve additional charges such as percentage rents based on the tenant's sales performance, as well as recoveries for property expenses such as maintenance, utilities, and taxes. Additionally, Primaris may engage in property development and redevelopment projects to increase the value and attractiveness of its portfolio, potentially leading to higher rental income and occupancy rates. The company's financial performance is influenced by factors such as occupancy rates, rental rates, tenant mix, and regional economic conditions. Primaris also benefits from partnerships with other real estate developers and investors to enhance its portfolio and achieve growth objectives.

Primaris Real Estate Investment Trust Financial Statement Overview

Summary

Primaris Real Estate Investment Trust demonstrates solid financial health with strong revenue growth and efficient cash flow management. The balance sheet is well-capitalized, though rising debt levels warrant attention. While profitability has faced some pressure in TTM, the company's strong cash flow generation provides a buffer against potential financial challenges. Overall, the financial statements reflect a stable yet cautious outlook.

Income Statement

The company's revenue has shown a consistent growth trend with a 32% increase from 2023 to 2024 and an 8% rise from 2024 to TTM (Trailing-Twelve-Months). Gross profit margins are strong, consistently above 50%, indicating efficient cost management. However, net profit margin has declined in TTM, reflecting potential challenges in maintaining profitability. EBIT and EBITDA margins are healthy but slightly decreasing, suggesting a need to control operating expenses.

Balance Sheet

The company's balance sheet reflects a stable equity base with a debt-to-equity ratio of 0.85 in TTM, indicating moderate leverage. The equity ratio is consistently above 45%, demonstrating a strong capital structure. However, the increasing debt levels pose a risk if revenue growth slows. Return on equity has decreased in TTM, implying reduced profitability for shareholders.

Cash Flow

Operating cash flow remains robust, with a healthy free cash flow margin. The company's free cash flow to net income ratio is strong, indicating efficient conversion of earnings into cash. However, significant investing cash outflows in TTM could impact future liquidity. The company has managed to grow free cash flow despite fluctuations in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	566.52M	504.62M	410.97M	380.06M	253.98M	270.23M
Gross Profit	329.81M	292.04M	233.63M	211.79M	141.59M	128.47M
EBITDA	169.14M	164.61M	206.87M	187.81M	130.92M	124.02M
Net Income	72.87M	79.47M	102.27M	-12.08M	354.57M	-574.48M
Balance Sheet
Total Assets	4.95B	4.27B	3.90B	3.20B	3.25B	2.13B
Cash, Cash Equivalents and Short-Term Investments	5.55M	114.77M	44.32M	10.95M	5.64M	15.01M
Total Debt	2.07B	1.71B	1.48B	1.01B	558.42M	301.40M
Total Liabilities	2.62B	2.11B	1.80B	1.11B	1.06B	1.13B
Stockholders Equity	2.33B	2.16B	2.10B	2.09B	2.19B	1.00B
Cash Flow
Free Cash Flow	178.94M	151.57M	163.35M	163.39M	-101.04M	213.63M
Operating Cash Flow	191.76M	168.32M	166.37M	164.31M	-76.17M	278.85M
Investing Cash Flow	-700.12M	-369.25M	-467.52M	-112.61M	-46.09M	-79.90M
Financing Cash Flow	433.14M	171.38M	334.52M	-46.38M	112.89M	-191.95M

Primaris Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PMZ.UN, the sentiment is Positive. The current price of 14.84 is below the 20-day moving average (MA) of 14.85, below the 50-day MA of 14.89, and above the 200-day MA of 14.77, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 60.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PMZ.UN.

Primaris Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRT.UN	81 Outperform	C$3.75B	8.47	11.08%	6.10%	4.26%	72.02%
SRU.UN	78 Outperform	C$4.41B	20.04	4.42%	7.15%	7.01%	-15.80%
PLZ.UN	72 Outperform	C$458.29M	13.17	6.45%	6.75%	5.14%	209.83%
REI.UN	71 Outperform	$5.21B	18.62	3.81%	6.41%	17.42%	377.43%
PMZ.UN	69 Neutral	C$1.59B	25.50	3.26%	5.75%	23.01%	-50.29%
Sector *	63 Neutral	$6.82B	13.05	-0.66%	7.37%	3.70%	-24.53%
HR.UN	59 Neutral	C$3.05B	―	-3.89%	6.40%	-6.43%	-35204.55%

Primaris Real Estate Investment Trust Corporate Events

Primaris REIT Declares August 2025 Distribution

Primaris Real Estate Investment Trust has declared a distribution of $0.0717 per unit for August 2025, translating to $0.86 annually, payable on September 15, 2025. This announcement reflects Primaris’s strategic positioning and financial stability, reinforcing its commitment to delivering value to unitholders amid the dynamic retail property market in Canada.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Reports Strong Q2 2025 and Raises Guidance

Primaris Real Estate Investment Trust reported strong financial results for the second quarter of 2025, with significant growth in rental revenue and net operating income. The company increased its guidance for 2025, reflecting confidence in its financial outlook. Key strategic moves included the acquisition of Lime Ridge Mall and the sale of Lansdowne Industrial, enhancing its portfolio quality. Additionally, Primaris introduced a Green Finance Framework, allowing for the issuance of green bonds and loans, and issued $200 million in senior unsecured debentures to finance eligible green projects. These developments underscore Primaris’s focus on sustainable growth and robust financial performance.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Declares July 2025 Distribution

Primaris Real Estate Investment Trust announced a distribution of $0.0717 per unit for July 2025, payable on August 15, 2025. This distribution reflects the company’s strong financial positioning and its ability to capitalize on market opportunities within the evolving Canadian retail property landscape.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT to Announce Q2 2025 Financial Results and Host Conference Call

Primaris Real Estate Investment Trust announced it will release its financial results for the quarter ended June 30, 2025, on July 30, 2025. The company will host a conference call and webcast on July 31, 2025, to discuss these results. This announcement highlights Primaris’ proactive communication with stakeholders and its strategic positioning to leverage market opportunities in the Canadian retail property sector.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Secures $200 Million in Green Debenture Offering

Primaris Real Estate Investment Trust announced a successful $200 million unsecured green debenture offering, with the debentures maturing in 2033 and bearing a fixed annual interest rate of 4.835%. The proceeds are intended to fund eligible green projects as per the Trust’s Green Finance Framework, highlighting Primaris’ commitment to sustainable development and potentially enhancing its market positioning in the Canadian retail property landscape.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Unveils Green Finance Framework to Boost Sustainability

Primaris Real Estate Investment Trust has launched its inaugural Green Finance Framework, allowing the issuance of green bonds, loans, and other financial instruments to support environmental projects. This initiative aligns with Primaris’ sustainability strategy, focusing on emissions reduction and sustainable management, and has received a positive review from Moody’s Ratings, confirming its adherence to international green finance principles.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Completes $124.3 Million Secondary Equity Offering

Primaris Real Estate Investment Trust has successfully closed a $124.3 million secondary equity offering, selling 8,457,944 trust units at $14.70 each through a syndicate of underwriters led by RBC Capital Markets and TD Securities Inc. The offering involved the sale of units held by a selling unitholder, managed by Cadillac Fairview, and did not generate proceeds for Primaris. This transaction is part of Primaris’ strategic management of its assets, reflecting its robust market positioning and capitalization, which allows it to capitalize on opportunities within the Canadian retail property sector.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Acquires Lime Ridge Mall for $416 Million

Primaris Real Estate Investment Trust has announced the acquisition of Lime Ridge Mall in Hamilton, Ontario, for $416 million, marking a significant step in its growth strategy. This acquisition, which includes a mix of cash and equity, is expected to enhance Primaris’ portfolio quality and financial metrics, with implications for increased sales productivity and trading liquidity, benefiting stakeholders.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Declares June 2025 Distribution

Primaris Real Estate Investment Trust has declared a distribution of $0.0717 per unit for June 2025, equating to $0.86 per unit annually, payable on July 15, 2025. This announcement underscores Primaris’ strong financial position and strategic focus on enclosed shopping centres, highlighting its capability to leverage market opportunities and deliver value to its stakeholders.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Gains Control of Former HBC Locations for Redevelopment

Primaris Real Estate Investment Trust announced it has gained control over five former Hudson’s Bay Company locations, which were disclaimed due to lack of bids. This transition allows Primaris to repurpose these sites, potentially enhancing property value and stakeholder benefits. The company plans to invest $50 to $60 million in redevelopment, aiming for increased rental income and operational efficiency. The move is expected to relieve Primaris of certain obligations and open opportunities for property intensification, including retail and high-density developments.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.

Primaris REIT Declares May 2025 Distribution

Primaris Real Estate Investment Trust announced a distribution of $0.0717 per unit for May 2025, payable on June 16, 2025, to unitholders of record on May 30, 2025. This announcement reflects Primaris’ continued commitment to providing value to its investors, leveraging its strong capitalization and strategic positioning in the Canadian retail property market.

The most recent analyst rating on ($TSE:PMZ.UN) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Primaris Real Estate Investment Trust stock, see the TSE:PMZ.UN Stock Forecast page.