TORONTO, July 29, 2026--(BUSINESS WIRE)--Primaris Real Estate Investment Trust ("Primaris" or "the Trust") (TSX: PMZ.UN) announced today financial and operating results for the second quarter ended June 30, 2026.
Financial and Operating Results Highlights
$174.1 million total rental revenue;
$825 per square foot total same stores sales productivity;
+0.5% growth in Same Properties Cash Net Operating Income** ("Cash NOI") (or +1.1% excluding the $0.4 million prior year property tax recoveries recorded in 2025 over 2026);
91.1% committed occupancy, 86.6% in-place occupancy, and 83.5% long-term in-place occupancy;
80.1% combined operating cost recovery ratio;
+7.4% weighted average spread on renewing net rents* across 482,000 square feet;
141 CRU lease deals across 287,000 square feet at average net rents of $56.30;
+1.3% growth in Funds from Operations** ("FFO") per average diluted unit to $0.451; (or +5.4% excluding the impacts of both the $1.9 million terminated transaction costs recorded in 2026 and the $0.4 million higher prior year property tax recoveries recorded in 2025 relative to 2026;
48.8% FFO Payout Ratio**;
$5.3 billion total assets;
6.0x Average Net Debt** to Adjusted EBITDA**;
$655.1 million in liquidity*;
$4.9 billion in unencumbered assets; and
$21.72 Net Asset Value** ("NAV") per unit outstanding.
Business Update Highlights
84% (881,400 square feet) of former Hudson's Bay Company ("HBC") space is leased or in advanced negotiations, with 58% (608,500 square feet) under long-term lease agreements;
-
These leases are expected to generate approximately $14.9 million of annual rental revenue, 4x the annual rent previously generated from the space when occupied by HBC;
-
$99.5 million in non-core, shopping centre dispositions which closed on June 1, 2026;
$64.0 million strategic acquisition of the remaining 50% interest in Regent Mall in Fredericton, New Brunswick, increasing Primaris' ownership to 100%, which closed on June 19, 2026;
$4.5 million strategic acquisition of the adjoining vacant former HBC box at Devonshire Mall in Windsor, Ontario, which closed on June 5, 2026;
$275 to $375 million, or approximately 120 acres, of land identified for potential monetization;
$200 million of non-core, non-enclosed shopping centre properties and retail pads identified for potential disposition; and
Purchased for cancellation 165,700 Series A trust units ("Trust Units") under the Trust's normal course issuer bid ("NCIB") program for proceeds of $3.1 million at an average price per unit of approximately $18.44, representing a discount to NAV** per unit of approximately 15.1%.
** 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 management's discussion and analysis for the three and six months ended June 30, 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. |
"Leasing momentum across our portfolio remains exceptionally strong, supported by robust tenant demand and continued progress re-leasing former HBC space," said Patrick Sullivan, President and Chief Operating Officer. "We are securing high-quality tenants on attractive terms while driving occupancy growth and enhancing the productivity of our centres. Combined with our land optimization strategy, these initiatives are unlocking significant embedded value across the portfolio and positioning Primaris to deliver meaningful NOI growth and long-term value creation for unitholders."
"The strength of our operating platform, the quality of our portfolio, and the visibility we have into future growth opportunities continue to differentiate Primaris in the Canadian REIT sector," said Alex Avery, Chief Executive Officer. "As we execute on our leasing, portfolio optimization, and capital allocation initiatives, we believe we are exceptionally well positioned to deliver above-average earnings growth and long-term value creation for our unitholders."
Rags Davloor, Chief Financial Officer added, "Our balance sheet remains a key competitive advantage for Primaris. With low leverage, a conservative payout ratio and substantial liquidity, we are well positioned to execute on our strategic priorities. Combined with our disciplined approach to capital allocation, this financial flexibility allows us to invest in our portfolio, pursue selective acquisition opportunities, execute on our NCIB, and continue creating long-term value for our unitholders."
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 recently published guidance for the full year of 2026 is reproduced below and remains unchanged.
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 | $44 to $46 million | No change in guidance | Including $1.9 million of terminated transaction costs as updated in the June 29, 2026 press release | 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 | 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"). 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: | 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 86.6% at June 30, 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 | $1,955 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 June 19, 2026 - Regent Mall (remaining 50%) | Section 7.3, "Transactions" | |
Dispositions | > $500 million Achieved | $534 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 June 1, 2026 - Marlborough Mall and Professional Centre June 1, 2026 - McAllister Place (remaining 50% interest) | 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.
Summary of Select Financial and Operational Metrics
As at or for the three months ended June 30, (in '000s of Canadian dollars unless otherwise indicated) (unaudited) | 2026 | 2025 | Change | ||||||||
Number of investment properties | 29 | 37 | (8 | ) | |||||||
Gross leasable area ("GLA") (in millions of square feet) (at Primaris' share) | 14.6 | 14.8 | (0.2 | ) | |||||||
Long-term in-place occupancy | 83.5 | % | 84.8 | % | (1.3 | )% | |||||
In-place occupancy | 86.6 | % | 88.8 | % | (2.2 | )% | |||||
Committed occupancy | 91.1 | % | 90.5 | % | 0.6 | % | |||||
Weighted average net rent per occupied square foot* | $ | 32.84 | $ | 28.88 | $ | 3.96 | |||||
Weighted average lease term (in years) | 3.9 | 4.0 | (0.1 | ) | |||||||
Same stores sales productivity per square foot*,1 | $ | 825 | $ | 793 | $ | 32 | |||||
Same stores sales productivity* growth3 | 4.0 | % | 1.8 | % | n/a | ||||||
Total assets | $ | 5,345,353 | $ | 4,953,932 | $ | 391,421 | |||||
Total liabilities | $ | 2,831,651 | $ | 2,621,885 | $ | 209,766 | |||||
Total current liabilities | $ | 933,193 | $ | 538,202 | $ | 394,991 | |||||
Total rental revenue | $ | 174,105 | $ | 150,760 | $ | 23,345 | |||||
Cash flow from (used in) operating activities | $ | 60,674 | $ | 53,577 | $ | 7,097 | |||||
Distributions per Trust Unit | $ | 0.220 | $ | 0.215 | $ | 0.005 | |||||
Cash Net Operating Income** ("Cash NOI") | $ | 96,959 | $ | 83,971 | $ | 12,988 | |||||
Same Properties2 Cash NOI** growth3 | 0.5 | % | 5.5 | % | n/a | ||||||
Combined operating costs recovery ratio | 80.1 | % | 80.8 | % | (0.7 | )% | |||||
Net income (loss) | $ | (13,679 | ) | $ | 50,379 | $ | (64,058 | ) | |||
Net income (loss) per unit4 | $ | (0.098 | ) | $ | 0.396 | $ | (0.494 | ) | |||
Funds from Operations** ("FFO") per unit4- average diluted | $ | 0.451 | $ | 0.445 | $ | 0.006 | |||||
FFO** per unit growth3 | 1.3 | % | 5.5 | % | n/a | ||||||
FFO Payout Ratio** | 48.8 | % | 48.3 | % | 0.5 | % | |||||
Adjusted Funds from Operations** ("AFFO") per unit4 - average diluted | $ | 0.314 | $ | 0.344 | $ | (0.030 | ) | ||||
AFFO** per unit growth3 | (8.7 | )% | 24.6 | % | n/a | ||||||
AFFO Payout Ratio** | 70.1 | % | 62.5 | % | 7.6 | % | |||||
Weighted average units outstanding4 - diluted (in thousands) | 139,109 | 122,841 | 16,268 |
** 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 May 31, 2026 and 2025, respectively. |
2 Properties owned throughout the entire 18 months ended June 30, 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. |
Summary of Select Financial and Operational Metrics (continued)
As at or for the three months ended June 30, (in '000s of Canadian dollars unless otherwise indicated) (unaudited) | 2026 | 2025 | Change | ||||||||
Net Asset Value** ("NAV") per unit outstanding1 | $ | 21.72 | $ | 21.43 | $ | 0.29 | |||||
Average Net Debt** to Adjusted EBITDA**3 | 6.0x | 5.8x | 0.2x | ||||||||
Interest Coverage**2,3 | 3.2x | 3.0x | 0.2x | ||||||||
Liquidity4 | $ | 655,134 | $ | 584,049 | $ | 71,085 | |||||
Unencumbered assets | $ | 4,916,875 | $ | 4,433,622 | $ | 483,253 | |||||
Unencumbered assets to unsecured debt | 2.5x | 2.4x | 0.1x | ||||||||
Secured debt as a percent of Total Debt** | 10.0 | % | 12.0 | % | (2.0 | )% | |||||
Total Debt** to Total Assets**2 | 40.5 | % | 42.0 | % | (1.5 | )% | |||||
Fixed rate debt as a percent of Total Debt** | 100.0 | % | 96.1 | % | 3.9 | % | |||||
Weighted average term to debt maturity - Total Debt** (in years) | 3.6 | 4.4 | (0.8 | ) | |||||||
Weighted average interest rate of Total Debt** | 5.10 | % | 5.17 | % | (0.07 | )% |
** 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 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 June 30, 2026 and 2025. |
4 Supplementary financial measure, see Section 1, "Basis of Presentation" - "Use of Operating Metrics" of the MD&A. Liquidity is defined as the sum of cash and cash equivalents and the undrawn balances on Primaris' various unsecured credit facilities. See Section 10.2, "Liquidity and Unencumbered Assets" of the MD&A. |
Operating Results
For the three months ended June 30, | 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 | $ | 66,846 | $ | 0.481 | $ | 65,970 | $ | 0.537 | $ | 876 | $ | 0.007 | |||||||||||
Acquisitions | 32,018 | 0.230 | 13,457 | 0.110 | 18,561 | 0.151 | |||||||||||||||||
Dispositions | 1,505 | 0.011 | 6,076 | 0.049 | (4,571 | ) | (0.037 | ) | |||||||||||||||
Property management fees, interest and other income | 1,839 | 0.013 | 1,400 | 0.012 | 439 | 0.004 | |||||||||||||||||
Net interest and other financing charges (excluding distributions on Exchangeable Preferred LP Units) | (29,230 | ) | (0.210 | ) | (25,263 | ) | (0.206 | ) | (3,967 | ) | (0.032 | ) | |||||||||||
General and administrative expenses (net of internal costs for leasing activity3) | (10,112 | ) | (0.073 | ) | (6,759 | ) | (0.055 | ) | (3,353 | ) | (0.027 | ) | |||||||||||
Amortization | (145 | ) | (0.001 | ) | (219 | ) | (0.002 | ) | 74 | 0.001 | |||||||||||||
Impact from variance of units outstanding | — | — | — | — | — | (0.061 | ) | ||||||||||||||||
FFO** and FFO** per unit - average diluted1 | $ | 62,721 | $ | 0.451 | $ | 54,662 | $ | 0.445 | $ | 8,059 | $ | 0.006 | |||||||||||
FFO** per unit growth | 1.3 | % | |||||||||||||||||||||
FFO Payout Ratio** | 48.8 | % | 48.3 | % | 0.5 | % |
** 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. |
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 18 months ended June 30, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties". |
3 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. |
FFO** for the three months ended June 30, 2026 was $0.006 per unit, or 1.3%, higher than the same period of the prior year driven by the growth in NOI**. General and administrative expenses increased $0.027 per unit (including $0.014 per unit impact from terminated transaction costs), and net interest and other financing charges were higher by $0.032 per unit, and the net change in the weighted average diluted units outstanding accounted for a decrease of $0.061 per unit. The negative impacts from interest and change in average number of units, totaling $0.093 per unit, were primarily driven by the 2025 capital recycling activities.
FFO** for the three months ended June 30, 2025 included revenue of $1.2 million from prior years' tax recoveries ($0.8 million in 2026) and $1.5 million from the now disclaimed HBC leases (nil in 2026).
Excluding the impacts of both the $1.9 million terminated transaction costs recorded in 2026 and the $0.4 million variance in reported revenue from the recovery of prior years' property taxes, FFO** per unit would have been $0.024, or 5.4%, higher than the same period of the prior year. This increase reflects the growth from the 2025 acquisitions and the impact of new leasing activity over the lost revenue from the disclaimed HBC leases.
While impacts from prior years occur regularly, management believes the amounts considered in the analysis above represents activity differing from historic norms.
Same Properties Cash NOI** for the three months ended June 30, 2026 was $0.3 million, or 0.5%, higher than the same period of the prior year. The Same Properties reported Cash NOI** growth in the quarter despite there being a $0.4 million greater contribution from prior year tax recovery revenue in 2025 than in the same period of 2026, and a $1.0 million contribution in 2025 from the now disclaimed HBC leases. Excluding only the $0.4 million variance from the recovery of prior year property tax, Same Properties' Cash NOI** growth would have been an increase of 1.1%. This growth reflects the impact of leasing activity over the lost revenue from the disclaimed HBC leases.
The table below illustrates the composition of AFFO** and the drivers of the change for the three months ended June 30, 2026 as compared to the same period in 2025.
For the three months ended June 30, (in '000s of Canadian dollars except per unit amounts) (unaudited) | 2026 | 2025 | Change | ||||||||||||||||||||
Contribution | per unit1 | Contribution | per unit1 | Contribution | per unit1 | ||||||||||||||||||
FFO** | $ | 62,721 | $ | 0.451 | $ | 54,662 | $ | 0.445 | $ | 8,059 | $ | 0.066 | |||||||||||
Internal costs for leasing activity2 | (2,732 | ) | (0.020 | ) | (2,381 | ) | (0.019 | ) | (351 | ) | (0.003 | ) | |||||||||||
Straight-line rent | (3,077 | ) | (0.022 | ) | (1,317 | ) | (0.011 | ) | (1,760 | ) | (0.014 | ) | |||||||||||
Recoverable and non-recoverable costs | (5,528 | ) | (0.040 | ) | (3,414 | ) | (0.028 | ) | (2,114 | ) | (0.017 | ) | |||||||||||
Tenant allowances and external leasing costs | (7,720 | ) | (0.055 | ) | (5,275 | ) | (0.043 | ) | (2,445 | ) | (0.020 | ) | |||||||||||
Impact from variance of units outstanding | — | — | — | — | — | (0.042 | ) | ||||||||||||||||
AFFO** and AFFO** per unit - average diluted1 | $ | 43,664 | $ | 0.314 | $ | 42,275 | $ | 0.344 | $ | 1,389 | $ | (0.030 | ) | ||||||||||
AFFO** per unit growth | (8.7 | )% |
** 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. |
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. |
Occupancy and Leasing Results
Primaris' leasing activities are focused on driving value by actively managing the tenant and merchandising mix at its investment properties.
June 30, 2026 | December 31, 2025 | June 30, 2025 | ||||||
Long-term in-place occupancy | 83.5 | % | 81.7 | % | 84.8 | % | ||
Add: Short-term leases | 3.1 | % | 5.5 | % | 4.0 | % | ||
In-place occupancy | 86.6 | % | 87.2 | % | 88.8 | % | ||
Add: Committed leases | 4.5 | % | 3.4 | % | 1.7 | % | ||
Committed occupancy - portfolio | 91.1 | % | 90.6 | % | 90.5 | % |
As at June 30, 2026, the Trust's portfolio had long-term in-place occupancy of 83.5%, in-place occupancy of 86.6%, and committed occupancy of 91.1%. In-place occupancy at June 30, 2026 of 86.6% was 2.2% lower than the previous year. The decline was driven by three factors: the impact of the vacant space associated with HBC leases disclaimed in November of 2025; lower occupancy rates at the Acquisitions compared to the remaining portfolio; and higher occupancy rates at the Dispositions compared to the remaining portfolio. While the in-place occupancy rates at the Dispositions were higher compared to the remaining portfolio, these properties had a higher percentage of short-term and specialty leases.
In-place occupancy for Same Properties increased 0.4% from June 30, 2025 to 89.2% at June 30, 2026. The increase was primarily driven by the recent leasing activities.
Average in-place occupancy is calculated by averaging the occupied square feet and total GLA for each month in the measurement period. For the six months ended June 30, 2026, the average in-place occupancy rate was 86.4%, a decrease of 6.1% compared to June 30, 2025. The decrease was primarily due to the change in the portfolio composition and the vacant space associated with HBC leases.
As at | 2026 Count | In-place Occupancy | ||||||
June 30, 2026 | December 31, 2025 | June 30, 2025 | ||||||
Shopping centres1 | 20 | 88.6 | % | 89.6 | % | 88.1 | % | |
Other properties2 | 3 | 98.9 | % | 98.9 | % | 99.1 | % | |
Same Properties in-place occupancy3 | 23 | 89.2 | % | 90.2 | % | 88.8 | % | |
Acquisitions4 | 6 | 79.7 | % | 77.7 | % | 86.2 | % | |
In-place occupancy excluding dispositions | 29 | 86.6 | % | 86.8 | % | 88.3 | % | |
Dispositions5 | — | 92.8 | % | 93.3 | % | |||
In-place occupancy | 86.6 | % | 87.2 | % | 88.8 | % | ||
Average in-place occupancy | ||||||||
Three months ended | 86.7 | % | 88.9 | % | 91.7 | % | ||
Year to date | 86.4 | % | 91.0 | % | 92.5 | % |
1 Shopping centres classified as Same Properties include 19 enclosed malls and 1 open air centre, Highstreet Shopping Centre in Abbotsford, BC. |
2 Other properties classified as Same Properties include 2 plazas and 1 office building. |
3 Properties owned throughout the entire 18 months ended June 30, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties". |
4 Acquisitions includes 5 enclosed malls and 1 professional centre (see Section 7.3, "Transactions" of the MD&A). |
5 Dispositions represents the sale of properties in 2026 and 2025 (see Section 7.3, "Transactions" of the MD&A). |
In the quarter, Primaris completed 188 leasing deals totaling 809 thousand square feet. The majority of the leasing deals were for commercial retail unit ("CRU") tenants comprising 141 deals over 287 thousand square feet at average net rents of $56.30. The weighted average spread on renewing net rents* (for the 109 leases renewed in the quarter) was 7.4% (5.8% for CRU renewals and 10.8% 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, at certain locations, Primaris executed short-term leases with reputable tenants to restore rental income until Re-leasing Plans and Redevelopment Plans are ready to be executed.
At June 30, 2026, approximately 600,000 square feet of former HBC space was leased to high-quality tenants under long-term lease agreements with occupancy dates ranging from early 2027 to mid-2029, with approximately 300,000 additional square feet in advanced lease negotiations. Primaris anticipates the weighted average net rent* on this leasing activity to be approximately $17 per square foot. This net rent rate would be lower than the portfolio average reflecting the larger than typical unit sizes for the HBC backfills, but would still be well above the historical HBC net rents of approximately $4 per square foot. The capital investment to redevelop this space is expected to be in the range of $175 million to $225 million. Management's current estimates and assumptions are subject to change.
Robust Liquidity and Differentiated Financial Model
The following table summarizes key metrics relating to Primaris' unencumbered assets and unsecured debt.
($ thousands) (unaudited) As at | Target Ratio | June 30, 2026 | December 31, 2025 | Change | ||||||||
Unencumbered assets - number | 25 | 26 | (1 | ) | ||||||||
Unencumbered assets - value | $ | 4,916,875 | $ | 4,754,095 | $ | 162,780 | ||||||
Unencumbered asset value as a percentage of the investment properties' value | 93.9 | % | 91.8 | % | 2.1 | % | ||||||
Secured debt to Total Debt** | <40% | 10.0 | % | 11.3 | % | (1.3 | )% | |||||
Unsecured Debt | $ | 1,950,000 | $ | 1,950,000 | $ | — | ||||||
Unencumbered assets to unsecured debt | 2.5x | 2.4x | 0.1x | |||||||||
Unencumbered assets in excess of unsecured debt | $ | 2,966,875 | ... |