Primaris Real Estate Investment Trust announced Wednesday financial and operating results for the fourth quarter and year ended December 31, 2025, disclosing it has entered into leases at five of the 11 disclaimed Hudson’s Bay locations.
“Primaris significantly augmented its portfolio in 2025 recycling capital with $1.6 billion of leading enclosed shopping centre acquisitions, and $400 million of non‑core dispositions,” said Patrick Sullivan, President and Chief Operating Officer. “These transactions have materially advanced Primaris’ ambition of Becoming the First Call for retailers in Canada, while elevating the quality of our portfolio and driving structurally higher internal growth.”
“In 2026, Primaris will continue to leverage the competitive advantages of its mall management platform, differentiated financial model, portfolio scale, and clear and focused strategy, delivering best-in-class operating and financial results, including growth in FFO per unit,” said Alex Avery, Chief Executive Officer. “We expect to build on the strength of our scarce and valuable mall management platform to drive performance from our existing properties, as well as create value through strategic transactions.”
Rags Davloor, Chief Financial Officer, added: “Our differentiated financial model, anchored by low leverage and a low payout ratio, has been a critical factor in Primaris’ ability to capitalize on the unique market opportunity in the Canadian mall sector. This disciplined approach provides meaningful financial flexibility, allowing us to pursue strategic transactions while maintaining one of the strongest balance sheets in the industry.”
Quarterly Financial and Operating Results Highlights
- $188.3 million total rental revenue (net of $1.0 million negative impact from HBC);
- $800 per square foot total same store sales productivity;
- +6.8% Same Properties Cash Net Operating Income growth (or +2.6% excluding the positive impact of prior year adjustments and the negative impact from disclaimed Hudson’s Bay Company;
- 90.6% committed occupancy, 87.2% in-place occupancy (including vacancy from HBC locations disclaimed in the quarter of 624,000 square feet), and 81.7% long-term in-place occupancy;
- +11.3% weighted average net rent per square foot spread on renewing leases across 310,000 square feet;
- +11.6% Funds from Operations per average diluted unit growth to $0.513; (or $0.492 per unit excluding the positive prior year impacts and the negative impact from disclaimed HBC locations);
- 42.3% FFO Payout Ratio
- $60.8 million in net income;
- $5.3 billion total assets;
- 5.8x Average Net Debt to Adjusted EBITDA;
- $644.3 million in liquidity;
- $4.8 billion in unencumbered assets; and
- $21.21 Net Asset Value per unit outstanding.
Annual Financial and Operating Results Highlights
- +5.6% Same Properties Cash NOI growth;
- +7.4% weighted average net rent* per square foot spread on renewing leases across 1,276,000 square feet;
- +9.2% FFO per average diluted unit growth to $1.846; and
- 46.7% FFO Payout Ratio;
Quarterly Business Update Highlights
- Raises 2026 FFO per unit guidance range from $1.83 to $1.88, to $1.85 to $1.90;
- Acquired Promenades St-Bruno in Montreal, Quebec;
- Disposed of Northland and Northland Professional Centre in Calgary, Alberta, for consideration of approximately $154 million;
- Settled and cancelled the $100 million unsecured bilateral non-revolving term facility;
- Entered into leases at five locations with disclaimed HBC spaces;
- Increased the distribution rate by 2.3%, from $0.86 to $0.88 per unit per annum, effective December 31, 2025;
- Issued $250 million aggregate principal amount of 5-year senior unsecured green debentures with interest at a fixed annual rate of 3.845% per annum, and a weighted average term to maturity of 6.2 years, reducing the weighted average interest rate to 5.07%;
- Issued 11,448,599 Trust Units on a bought-deal basis for net proceeds of $162 million; and
- Purchased for cancellation 515,000 Trust Units under the Trust’s normal course issuer bid program for proceeds of $8.0 million at an average price per unit of approximately $15.49, representing a discount to NAV per unit of approximately 27.0%.
Primaris said it has full control of all 1.3 million square feet of former Hudson’s Bay Company gross leasing area 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, Primaris is executing short term leases with reputable tenants, to restore rental income until Re-leasing and Redevelopment Plans are completed,” it explained.
“To date, Primaris has entered into leases at five of the eleven disclaimed locations. A temporary tenant at Conestoga Mall opened at the end of 2025, with the remaining four tenants taking possession in the first quarter of 2026, and opening in the second quarter.
“With strong demand from retailers for space and improved visibility into Primaris’ Redevelopment Plans, management now anticipates the retention and redevelopment of a greater portion of the former HBC space than previously contemplated. The capital investment to redevelop this space is now expected to be in the range of $175 million to $225 million.”
Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.2 million square feet, valued at approximately $5.2 billion at Primaris’ share.
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