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

• Market Cap: C$1.45B
• Dividend Yield: 5.94%
• Average Volume (3M): 182.21K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.84
• Revenue Growth: 22.15%
• EPS Growth: -29.29%
• Country: CA
• Employees: 314
• Sector: Real Estate
• Sector Strength: 80
• Industry: REIT - Retail
• EPS (TTM): 0.74
• Shares Outstanding: 101,586,430
• 10 Day Avg. Volume: 137,214
• 30 Day Avg. Volume: 182,206
• PEG Ratio: 4.49
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$17.75
• Price Target Upside: 24.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Primaris REIT demonstrates strong financial performance with significant revenue growth and operational efficiency. The positive guidance and strategic acquisitions provide growth potential, while a solid dividend yield enhances its appeal to investors. However, challenges such as high interest rates and a mixed technical outlook moderate the overall score.

Positive Factors

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.

Financial Structure

Primaris differentiates itself with a more conservative financial structure with both lower leverage and payout ratio.

Investment Recommendation

Analyst recommends Primaris as a BUY, raising the target price due to a higher NAV estimate and greater confidence in continued occupancy improvement.

Negative Factors

Market Valuation

Primaris currently trades at an 8.9% implied cap rate, or a 29.1% discount to NAV estimate, offering a potential value opportunity.

Primaris Real Estate Investment Trust Business Overview & Revenue Model

Company Description

Primaris 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 Money

Primaris Real Estate Investment Trust generates revenue primarily through leasing retail spaces in its shopping centers to a wide range of tenants. Rental income is the core revenue stream, consisting of base rent and additional charges such as property taxes, insurance, and maintenance fees passed on to tenants. The company benefits from long-term lease agreements, providing stable and predictable cash flows. Additionally, Primaris may enhance earnings through property management fees and strategic property development or redevelopment projects that increase the value and appeal of its retail assets. Partnerships with key retailers and a diversified tenant mix contribute significantly to its revenue stability and growth potential.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
504.62M	410.97M	380.06M	253.98M	270.23M
	Gross Profit
292.04M	233.63M	211.79M	141.59M	128.47M
	EBIT
253.70M	203.51M	185.95M	130.92M	124.02M
	EBITDA
164.61M	206.87M	187.81M	130.92M	124.02M
	Net Income Common Stockholders
79.47M	102.27M	-12.08M	354.57M	-574.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.77M	44.32M	10.95M	5.64M	15.01M
	Total Assets
4.27B	3.90B	3.20B	3.25B	2.13B
	Total Debt
1.71B	1.48B	1.01B	558.42M	301.40M
	Net Debt
1.70B	1.44B	996.56M	552.78M	286.39M
	Total Liabilities
2.11B	1.80B	1.11B	1.06B	1.13B
	Stockholders Equity
2.16B	2.10B	2.09B	2.19B	1.00B
Cash Flow		Free Cash Flow
151.57M	163.35M	163.39M	-101.04M	213.63M
	Operating Cash Flow
168.32M	166.37M	164.31M	-76.17M	278.85M
	Investing Cash Flow
-369.25M	-467.52M	-112.61M	-46.09M	-79.90M
	Financing Cash Flow
171.38M	334.52M	-46.38M	112.89M	-191.95M

Primaris Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 14.25 is above the 20-day moving average (MA) of 14.09, below the 50-day MA of 14.69, and below the 200-day MA of 14.76, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 47.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
SRU.UN	76 Outperform	C$4.34B	19.17	4.50%	7.25%	9.46%	-42.77%
PMZ.UN	73 Outperform	C$1.45B	19.20	3.73%	5.94%	22.15%	-29.29%
CRR.UN	72 Outperform	C$2.76B	―	-0.22%	6.01%	8.82%	92.79%
Sector *	60 Neutral	$2.78B	11.39	0.16%	8531.54%	5.92%	-14.67%
HR.UN	56 Neutral	C$2.61B	―	-2.29%	6.04%	-6.92%	-296.31%

Primaris Real Estate Investment Trust Corporate Events

Primaris REIT Reports Strong Trustee Election and Resolution Approvals at 2025 AGM

Primaris Real Estate Investment Trust announced the successful election of all trustee nominees at its 2025 Annual General Meeting, with high approval ratings for each candidate. Additionally, key resolutions including executive compensation, auditor reappointment, and amendments to the Incentive Unit Plan received overwhelming support, indicating strong stakeholder confidence in the Trust’s governance and strategic direction.

Spark’s Take on TSE:PMZ.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PMZ.UN is a Outperform.

Primaris REIT’s strong financial performance, characterized by robust revenue growth and operational efficiency, supports the stock’s overall score. Valuation metrics and strategic positioning through acquisitions enhance its attractiveness. However, technical indicators suggest caution, and challenges like high interest rates and tenant issues moderate the outlook.

To see Spark’s full report on TSE:PMZ.UN stock, click here.

Primaris REIT Reports Strong Q1 2025 Results and Reaffirms Guidance

Primaris Real Estate Investment Trust reported strong financial results for Q1 2025, with significant growth in rental revenue and net operating income. The company reaffirmed its 2025 guidance despite the anticipated departure of a major tenant, Hudson’s Bay. Primaris continues to enhance its portfolio by acquiring interests in key shopping centers and disposing of non-core assets. The company maintains a strong financial position with substantial liquidity and unencumbered assets, positioning itself as a credible player in the real estate market.

Spark’s Take on TSE:PMZ.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PMZ.UN is a Outperform.

Primaris REIT’s strong financial performance, highlighted by robust revenue growth and operational efficiency, underpins the stock’s overall score. The positive outlook from the recent earnings call, alongside strategic acquisitions and an attractive valuation, further bolsters the stock’s position. However, some caution is warranted due to technical indicators suggesting potential downward momentum and the challenges of high interest rates.

To see Spark’s full report on TSE:PMZ.UN stock, click here.

Primaris REIT Declares April 2025 Distribution

Primaris Real Estate Investment Trust announced a distribution of $0.0717 per unit for April 2025, equating to $0.86 annually, payable on May 15, 2025. This announcement underscores Primaris’ stable financial operations and commitment to delivering consistent returns to its unitholders, reinforcing its strong position in the Canadian retail property market.

Spark’s Take on TSE:PMZ.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PMZ.UN is a Outperform.

Primaris REIT’s robust revenue growth and operational efficiency are key strengths, supported by strategic acquisitions and a positive earnings outlook. However, challenges such as high interest rates and the need to enhance profitability and free cash flow moderate the overall score. The stock’s valuation and dividend yield make it attractive for income-focused investors, while recent corporate events signal strong strategic positioning.

To see Spark’s full report on TSE:PMZ.UN stock, click here.

Primaris REIT Sets Date for Q1 2025 Financial Results and AGM

Primaris Real Estate Investment Trust has announced the release date for its financial results for the quarter ended March 31, 2025, which will be available on April 30, 2025, after market close. The company will host a conference call and webcast on May 1, 2025, followed by its Annual General Meeting. These events are significant as they provide insights into the company’s financial health and strategic direction, potentially impacting stakeholders and market positioning.

Primaris REIT Advances Disposition Strategy and Prepares for HBC Departure

Primaris REIT announced the sale of St. Albert Centre for $60 million and Sherwood Park Mall for $107 million, as part of its capital recycling strategy. These strategic dispositions are aimed at enhancing the appeal of its shopping center portfolio, with proceeds allocated for future acquisitions and other financial strategies. The company is also preparing for the departure of Hudson’s Bay Company (HBC) as a tenant, which is expected to cease operations by June 30, 2025. Primaris views this as an opportunity for future value creation and has plans for re-tenanting and redevelopment. Additionally, Primaris secured a $100 million financing facility to support its ongoing operations and strategic initiatives.

Primaris REIT Updates on Hudson’s Bay Exposure Amid CCAA Proceedings

Primaris Real Estate Investment Trust announced its exposure to the Hudson’s Bay Company, which has initiated proceedings under the Companies’ Creditors Arrangement Act. Primaris has been preparing for this scenario for years and has plans in place for the 10 HBC locations within its portfolio, which represent a small portion of its total rental revenue. The company anticipates potential short-term impacts on its financial metrics but is ready to implement its strategies if any locations are disclaimed.

Primaris REIT Secures $200 Million Through Debenture Offering

Primaris Real Estate Investment Trust announced a successful private placement of $200 million in senior unsecured debentures maturing in 2031. The debentures, bearing a fixed annual interest rate of 4.468%, are intended to repay existing debts and support general trust purposes, indicating a strategic financial maneuver to strengthen the company’s position in the market.

Primaris REIT Reports Strong 2024 Results and Strategic Growth

Primaris Real Estate Investment Trust announced robust financial results for Q4 and the full year 2024, highlighted by significant growth in rental revenue and net operating income. The company continues to strategically acquire high-quality shopping centers, enhancing its portfolio and positioning it as a key player in the Canadian retail real estate market. With a strong balance sheet and significant unencumbered assets, Primaris is well-equipped to pursue further acquisitions and deliver value to its unitholders.

Primaris REIT Declares February 2025 Distribution

Primaris Real Estate Investment Trust announced a distribution of $0.0717 per unit for February 2025, equating to an annualized distribution of $0.86 per unit. This strategic financial decision underscores Primaris’ robust capital position, enabling it to capitalize on evolving market opportunities within Canada’s retail property sector.

Primaris REIT Completes Major Shopping Centre Acquisition

Primaris REIT has successfully closed a $585 million acquisition, securing 50% of Southgate Centre in Edmonton and full ownership of Oshawa Centre. This strategic move aligns with Primaris’ growth strategy targeting market-leading shopping centres, enhancing its presence in expanding Canadian regions.