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Primaris Real Estate Investment Trust
(TSX:PMZ.UN)
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Rating:72Outperform
Price Target:
C$25.00
â–²(15.53% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid financial performance (strong margins and growth, but higher leverage and some cash-flow variability) and a constructive earnings-call outlook (reaffirmed guidance and a sizable identified NOI pipeline, tempered by execution/timing risks). Technicals are supportive with a clear uptrend across moving averages, while valuation is reasonable with a moderate P/E and a ~3.8% dividend yield.
Positive Factors
Identified $52M incremental annual cash NOI pipeline
A clearly identified $52M incremental cash‑NOI pipeline provides a durable earnings growth lever over the next 2–3 years. Because much of it is sourced from signed/committed deals and high‑productivity centre lease‑ups, it should sustainably lift recurring rental cash flows and FFO once leases commence.
Negative Factors
Elevated leverage and rising debt burden
Materially higher leverage raises refinancing sensitivity and interest expense exposure, constraining balance‑sheet flexibility. With net debt/EBITDA near ~6x, leverage could limit the pace of accretive redevelopments and increase downside cash‑flow volatility if leasing or disposition timing slips.
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Positive Factors
Negative Factors
Identified $52M incremental annual cash NOI pipeline
A clearly identified $52M incremental cash‑NOI pipeline provides a durable earnings growth lever over the next 2–3 years. Because much of it is sourced from signed/committed deals and high‑productivity centre lease‑ups, it should sustainably lift recurring rental cash flows and FFO once leases commence.
Read all positive factors
Primaris Real Estate Investment Trust (PMZ.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.87B
Dividend Yield4.03%
Average Volume (3M)375.06K
Price to Earnings (P/E)21.3
Beta (1Y)0.70
Revenue Growth23.06%
EPS Growth66.86%
CountryCA
Employees700
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.02
Shares Outstanding129,467,450
10 Day Avg. Volume399,001
30 Day Avg. Volume375,065
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.78
Price to Sales (P/S)3.01
P/FCF Ratio8.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$25.42Price Target Upside17.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.77
Revenue Forecast (FY)C$717.97M
Primaris Real Estate Investment Trust Business Overview & Revenue Model
Company Description
Primaris Real Estate Investment Trust owns a portfolio of real estate assets, primarily enclosed shopping malls, all of which were previously part of H&R REIT's holdings. These properties are situated exclusively within Canada. As of December 31, ...
How the Company Makes Money
Primaris REIT primarily makes money by generating property-level income from its retail real estate portfolio and, to a lesser extent, from investment and transactional activities related to its properties.
1) Rental revenue from tenants (core st...
Primaris Real Estate Investment Trust Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: meaningful leasing activity, rising CRU rents (+~20.6% since end-2022), a clear $52M incremental NOI pipeline (>13% vs 2026 midpoint), improved committed occupancy (91.1%) and substantial liquidity ($655M). These positives are partly offset by current in-place occupancy of 86.6%, modest reported same-property NOI growth in Q2 (+0.5%), and one-time costs (terminated transaction fees ~$1.9M and ~$1.0M lost HBC rent) that depressed headline FFO growth to +1.3% (but +5.4% excluding those items). Execution and timing risk remain for larger redevelopments and land monetization, but management provided a credible path to multi-year NOI and FFO growth, with balance sheet flexibility to support opportunities.Positive Updates
Portfolio Renewal and Market Recognition
70% of the portfolio is new since 2021; Primaris moved from the 19th to the 9th largest capped REIT index member and now has index weighting >5%. Trading liquidity is nearly 5x what it was two years ago, reflecting stronger market recognition and investor engagement.
Negative Updates
In-place Occupancy Below Stabilized Level
Current in-place occupancy is 86.6%, meaning ~1,000 basis points of occupancy gains are required to reach the stated stabilized target of 96%; realization of this improvement is dependent on timing of lease commencements and redevelopments (many slated over 24–30 months).
Read all updates
Q2-2026 Updates
Positive
Negative
Portfolio Renewal and Market Recognition
70% of the portfolio is new since 2021; Primaris moved from the 19th to the 9th largest capped REIT index member and now has index weighting >5%. Trading liquidity is nearly 5x what it was two years ago, reflecting stronger market recognition and investor engagement.
Read all positive updates
Company Guidance
Primaris reaffirmed its 2026 guidance and laid out a highly detailed growth runway anchored by roughly $52 million of incremental annual cash NOI expected to commence over the next three years (more than 13% above the midpoint of 2026 guidance), sourced from signed/committed deals, lease‑up at 10 high‑productivity centers and lease‑up of ten former HBC/HPC spaces (84% leased/advanced negotiations) expected to deliver ~ $19M of annualized net rent (≈ $22M cash NOI) and ~10% yields on redevelopments. Management highlighted current in‑place occupancy of 86.6% (stabilized target 96%, ~1,000 bps upside), committed occupancy of 91.1% (450 bps embedded growth = ~ $15M base rent), CRU in‑place occupancy up 290 bps to 92.3% (stabilized CRU 93.1%), Q2 leasing of 109 renewals (482k sq ft) and 51 new deals (213k sq ft; 45 new CRU deals = 86k sq ft) with new CRU weighted avg rent $52.20/sf (portfolio CRU avg $50.69/sf vs $42.02 at end‑2022) and CRU spreads of 5.8%/7.4%. Other guideposts: same‑property cash NOI +0.5% (would be +1.1% excl. $0.4M prior tax recovery), FFO/unit supported at $0.451 (45.1¢) up 1.3% y/y (up 5.4% excl. $1.9M terminated transaction costs and $0.4M tax recovery), a $275–$375M excess‑land pipeline (plus ~$200M non‑core pads), Q2 dispositions $100M/acquisitions $68M, liquidity $655M, average net debt/adjusted EBITDA ~6x, no maturities until 2027 (next $250M debenture Mar‑2027 at 4.82%; current 5‑yr market ~4.25%), and a medium‑term target of ~3–4% same‑store NOI growth (with ~5–6% FFO growth over the three‑year horizon).Primaris Real Estate Investment Trust Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 704.37M | 652.57M | 504.62M | 410.97M | 380.06M | 253.98M |
| Gross Profit | 401.00M | 373.42M | 292.04M | 233.63M | 211.79M | 141.59M |
| EBITDA | 275.14M | 319.87M | 164.61M | 206.87M | 187.81M | 130.92M |
| Net Income | 129.90M | 183.19M | 79.47M | 102.27M | -12.08M | 354.57M |
Balance Sheet | ||||||
| Total Assets | 5.35B | 5.28B | 4.27B | 3.90B | 3.20B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 45.13M | 34.29M | 114.77M | 44.32M | 10.95M | 5.64M |
| Total Debt | 2.67B | 2.19B | 1.71B | 1.48B | 1.01B | 558.42M |
| Total Liabilities | 2.83B | 2.75B | 2.11B | 1.80B | 1.11B | 1.06B |
| Stockholders Equity | 2.51B | 2.53B | 2.16B | 2.10B | 2.09B | 2.19B |
Cash Flow | ||||||
| Free Cash Flow | 206.45M | 225.07M | 151.57M | 163.35M | 163.39M | -101.04M |
| Operating Cash Flow | 232.03M | 225.73M | 168.32M | 166.37M | 164.31M | -76.17M |
| Investing Cash Flow | -317.84M | -669.43M | -369.25M | -467.52M | -112.61M | -46.09M |
| Financing Cash Flow | 125.39M | 463.21M | 171.38M | 334.52M | -46.38M | 112.89M |
Primaris Real Estate Investment Trust Technical Analysis
Positive
21.64
Price Trends
21.68
Positive
21.13
Positive
19.05
Positive
Market Momentum
0.16
Negative
53.39
Neutral
63.47
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 21.64 is above the 20-day moving average (MA) of 21.33, below the 50-day MA of 21.68, and above the 200-day MA of 19.05, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 63.47 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$582.17M | 9.40 | 11.07% | 5.32% | 2.84% | 78.07% | |
72 Outperform | C$2.87B | 21.31 | 5.23% | 4.03% | 23.06% | 66.86% | |
70 Outperform | C$4.85B | 4.71 | 22.27% | 3.97% | 0.07% | 295.34% | |
66 Neutral | C$4.52B | 28.16 | 3.03% | 7.06% | -1.11% | -31.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$2.98B | -50.00 | 6.03% | 5.78% | 3.98% | -1411.59% | |
60 Neutral | C$6.03B | 23.56 | 3.53% | 5.72% | -2.62% | -8.84% |
* Real Estate Sector Average
TSE:PMZ.UN
Primaris Real Estate Investment Trust
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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.