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

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TSE:PMZ.UN

Primaris Real Estate Investment Trust

(TSX:PMZ.UN)

Rating:75Outperform
Price Target:
C$17.00
▲(13.18% Upside)
Primaris REIT's strong earnings call and positive technical indicators are the most significant factors driving the score. The company's robust guidance and strategic acquisitions support future growth. Financial performance is stable but highlights areas for improvement in profitability and leverage management. The valuation is mixed, with a high P/E ratio but an attractive dividend yield.
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 (PMZ.UN) vs. iShares MSCI Canada ETF (EWC)

Primaris Real Estate Investment Trust Business Overview & Revenue Model

Company DescriptionPrimaris properties including all of H&R REIT's enclosed malls comprises real estate properties. The assets are located in Canada. Primaris properties including all of H&R REIT's enclosed malls(TSX:PMZ.UN) operates independently of H&R Real Estate Investment Trust as of December 31, 2021.
How the Company Makes MoneyPrimaris 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Primaris REIT with substantial growth in NOI, tenant sales, and strategic acquisitions, although challenges remain with occupancy levels and HBC disclaimed leases.
Q2-2025 Updates
Positive Updates
Strong Same-Property NOI Growth
Same-property cash NOI was up 5.5% for the quarter compared to Q2 2024 and 7.5% for the first half of the year. This was driven by higher rents, step-up rents, higher percentage rent, and prior year tax refunds.
Record Tenant Sales Per Square Foot
Primaris' same-property tenant sales per square-foot are at all-time highs, 33% higher at $723 per square-foot than comparable 2019 levels.
Transformational Acquisitions
Acquired Southgate Centre, Oshawa Centre, and Lime Ridge Mall in 2025, representing strategic market-leading malls with sales per square foot ranging from $800 to $1,400.
Strong Financial Performance and Guidance Increase
FFO per unit diluted up 5.5% for the quarter, AFFO per unit diluted at 24.6%. Increased 2025 guidance for cash NOI to $340 million to $345 million and FFO per unit to $1.74 to $1.79.
Successful Capital Recycling
Executed the sale of over $300 million of non-core properties, aligning with strategy to enhance portfolio quality.
Low Leverage and Strong Financial Position
Maintained low leverage of below 6x debt to EBITDA with an FFO payout ratio of approximately 50%.
Negative Updates
Occupancy Decline
Portfolio in-place occupancy was 88.8%, down 4.2% from Q2 last year due to the impact of disclaimed HBC leases and elevated vacancy at Lime Ridge Mall.
Impact of HBC Disclaimed Leases
The departure of HBC has led to lower occupancy, and Primaris is in advanced stages of negotiation to replace these vacancies, anticipating a spend of $125 million to $150 million over the next few years.
Company Guidance
During Primaris REIT's Second Quarter 2025 Results Conference Call, the company provided robust guidance reflecting their strong performance and strategic acquisitions. The management highlighted a 33% increase in same-property tenant sales per square foot to $723 compared to 2019 levels, and noted substantial funds from operations (FFO) and adjusted funds from operations (AFFO) per unit growth. They anticipate 15% to 25% net operating income (NOI) growth over the next few years while maintaining a low leverage ratio of below 6x debt to EBITDA and an FFO payout ratio around 50%. The acquisition of Canada's top-tier malls, representing 60% of their portfolio by value, supports their target of a 3% to 4% same-property NOI growth rate. Additionally, the company executed $246.1 million in dispositions year-to-date, with plans to reposition their portfolio for sustainable, long-term growth. They raised their 2025 guidance for cash NOI to $340 million to $345 million and FFO per unit to $1.74 to $1.79, reflecting confidence in ongoing operational strength.

Primaris Real Estate Investment Trust Financial Statement Overview

Summary
Primaris REIT shows strong revenue growth and operational efficiency with solid gross and EBIT margins. However, increased leverage and a slight decline in profitability metrics highlight areas for improvement. The company maintains good cash flow management, but the decrease in operating cash flow conversion warrants attention.
Income Statement
75
Positive
Primaris Real Estate Investment Trust shows strong revenue growth with a 5.6% increase in TTM. The gross profit margin is healthy at 58.2%, indicating efficient cost management. However, the net profit margin has decreased to 12.9% from 15.7% in the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are solid, reflecting good operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has increased to 0.89, indicating higher leverage, which could pose a risk if not managed carefully. The return on equity has slightly decreased to 3.3%, showing a modest return on shareholders' investments. The equity ratio remains stable, suggesting a balanced asset structure.
Cash Flow
68
Positive
Free cash flow growth is positive at 10.1%, showing improved cash generation. However, the operating cash flow to net income ratio has decreased, indicating a potential concern in converting income into cash. The free cash flow to net income ratio remains strong, suggesting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue566.52M504.62M410.97M380.06M253.98M270.23M
Gross Profit329.81M292.04M233.63M211.79M141.59M128.47M
EBITDA169.14M164.61M206.87M187.81M130.92M124.02M
Net Income72.87M79.47M102.27M-12.08M354.57M-574.48M
Balance Sheet
Total Assets4.95B4.27B3.90B3.20B3.25B2.13B
Cash, Cash Equivalents and Short-Term Investments5.55M114.77M44.32M10.95M5.64M15.01M
Total Debt2.07B1.71B1.48B1.01B558.42M301.40M
Total Liabilities2.62B2.11B1.80B1.11B1.06B1.13B
Stockholders Equity2.33B2.16B2.10B2.09B2.19B1.00B
Cash Flow
Free Cash Flow178.94M151.57M163.35M163.39M-101.04M213.63M
Operating Cash Flow191.76M168.32M166.37M164.31M-76.17M278.85M
Investing Cash Flow-700.12M-369.25M-467.52M-112.61M-46.09M-79.90M
Financing Cash Flow433.14M171.38M334.52M-46.38M112.89M-191.95M

Primaris Real Estate Investment Trust Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.02
Price Trends
50DMA
14.80
Positive
100DMA
14.62
Positive
200DMA
14.69
Positive
Market Momentum
MACD
0.06
Positive
RSI
55.54
Neutral
STOCH
15.25
Positive
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 15.02 is above the 20-day moving average (MA) of 14.92, above the 50-day MA of 14.80, and above the 200-day MA of 14.69, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 15.25 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$1.61B25.813.26%5.69%23.01%-50.29%
63
Neutral
$7.06B14.07-0.50%6.96%4.08%-25.24%
$3.96B19.353.81%6.06%
81
Outperform
C$3.85B8.6911.08%5.96%4.26%72.02%
77
Outperform
C$472.09M13.576.45%6.54%5.14%209.83%
72
Outperform
C$4.60B20.884.42%6.86%7.01%-15.80%
55
Neutral
C$3.19B-1.99%6.10%-5.67%54.92%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PMZ.UN
Primaris Real Estate Investment Trust
15.02
0.91
6.45%
RIOCF
RioCan Real Estate Investment
13.42
0.53
4.11%
TSE:CRT.UN
CT Real Estate Investment
16.11
1.67
11.57%
TSE:HR.UN
H&R Real Estate ate Staple
12.16
2.35
23.96%
TSE:PLZ.UN
Plaza Retail REIT
4.28
0.85
24.78%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
26.96
3.05
12.76%

Primaris Real Estate Investment Trust Corporate Events

DividendsBusiness Operations and Strategy
Primaris REIT Declares August 2025 Distribution
Positive
Aug 7, 2025

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.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Primaris REIT Reports Strong Q2 2025 and Raises Guidance
Positive
Jul 30, 2025

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.

Dividends
Primaris REIT Declares July 2025 Distribution
Positive
Jul 7, 2025

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.

Business Operations and StrategyFinancial Disclosures
Primaris REIT to Announce Q2 2025 Financial Results and Host Conference Call
Neutral
Jul 3, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Primaris REIT Secures $200 Million in Green Debenture Offering
Positive
Jun 23, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Primaris REIT Unveils Green Finance Framework to Boost Sustainability
Positive
Jun 20, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Primaris REIT Completes $124.3 Million Secondary Equity Offering
Neutral
Jun 20, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Primaris REIT Acquires Lime Ridge Mall for $416 Million
Positive
Jun 16, 2025

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.

DividendsBusiness Operations and Strategy
Primaris REIT Declares June 2025 Distribution
Positive
Jun 9, 2025

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.

Business Operations and Strategy
Primaris REIT Gains Control of Former HBC Locations for Redevelopment
Positive
May 26, 2025

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.

DividendsBusiness Operations and Strategy
Primaris REIT Declares May 2025 Distribution
Positive
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025