Primaris REIT: A Retail REIT Powerhouse with Strong Q4/24 and Full Year 2024 Results

Primaris Real Estate Investment Trust (Primaris REIT) (TSX: PMZ.UN) has announced strong financial results for the fourth quarter and full year 2024, reflecting the company's robust performance and growth in the retail sector. The REIT reported a 9.1% increase in same properties cash net operating income (Cash NOI) growth in Q4/24, driven by a 9.5% increase in same properties shopping centres Cash NOI growth. This strong performance was supported by a 5.3% weighted average spread on renewing rents across 446,000 square feet and a 14.5% increase in funds from operations (FFO) per average diluted unit growth to $0.460.



Throughout 2024, Primaris REIT maintained high occupancy rates, with committed occupancy reaching 95.6% in Q4/24. The company's strong performance can be attributed to several factors, including its national, full-service platform and team, low retail supply, strong tenant demand for quality space, and the remerchandising of former anchor premises. Primaris REIT's capital allocation strategy has also played a crucial role in its success, enabling the company to maintain industry-leading credit metrics, reduce refinancing risk, and access significant liquidity.

Primaris REIT's acquisition strategy has further contributed to its overall growth and value proposition. The acquisition of Les Galeries de la Capitale in Quebec City, Quebec, and the 50% interest in Southgate Centre in Edmonton, Alberta, have increased the company's relevance with retailers and driven higher internal growth. These acquisitions are designed to deliver higher NAV per unit growth, FFO per unit growth, and ultimately distribution per unit growth. Primaris REIT's commitment to maintaining a well-capitalized balance sheet has enabled it to pursue acquisitions without compromising its financial stability.

In conclusion, Primaris REIT's strong performance in Q4/24 and full year 2024 reflects the overall health of the retail sector and the Canadian economy. The company's strategies, including its national platform, low retail supply, strong tenant demand, remerchandising, capital allocation, and acquisition strategy, have contributed to its high occupancy rates and rental revenue growth. Primaris REIT's commitment to maintaining a well-capitalized balance sheet and pursuing strategic acquisitions has positioned the company as a highly credible transaction counterparty, at a time when many other groups are finding access to capital and financing challenging. As Primaris REIT looks forward to 2025 and beyond, it is well-positioned to capitalize on opportunities embedded within its existing portfolio and a variety of acquisition opportunities that can enhance its value proposition with retailers and its total return to unitholders.