TORONTO–(BUSINESS WIRE)–Primaris Real Estate Investment Trust (“Primaris” or “the Trust”) (TSX: PMZ.UN) announced today financial and operating results for the third quarter ended September 30, 2023.
Quarterly Financial and Operating Results Highlights
- $104.8 million total rental revenue;
- +3.1% Same Properties Cash Net Operating Income** (“Cash NOI**”) growth;
- 92.8% committed occupancy and 91.0% in-place occupancy;
- +4.2% weighted average spread on renewing rents across 267,000 square feet;
- +2.4% Fund from Operations** (“FFO**”) per average diluted unit or $0.421;
- $3.5 billion total assets;
- 49.4% FFO Payout Ratio**;
- 35.0% Debt to Total Assets**;
- 5.3x Average Net Debt** to Adjusted EBITDA**
- $279.3 million in liquidity;
- $3.0 billion in unencumbered assets; and
- $21.76 Net Asset Value** (“NAV**”) per unit outstanding.
Business Update Highlights
- Approved a distribution increase in 2024 of +2.4%, from $0.82 to $0.84 per Trust Unit per annum.
- Completed the acquisition of Conestoga Mall in Waterloo, Ontario, adding 587,000 square feet of GLA;
- Received inaugural GRESB results, achieving 2 green stars, within the peer group range;
- Certified as “Great Place to Work”; and
- Total NCIB activity since inception of 7,334,800 Trust Units repurchased at an average price of $13.86, or a discount to NAV** per unit of approximately 36.3%;
“Our portfolio of enclosed shopping centres continues to perform very well due to their market leading qualities, combined with little to no new supply,” said Patrick Sullivan, President and Chief Operating Officer. “The portfolio is capturing growth in rent, occupancy and NOI as a result of healthy tenant demand and performance, continuous merchandising mix optimization, and the conversion of preferred rental structures back to traditional leases. Conversations with tenants remain very productive.”
Chief Financial Officer, Rags Davloor added, “We put a lot of emphasis on Primaris’ differentiated financial model in our disclosure and when we speak to the investment community. Maintaining a conservative financial model and generating free cash flow after distributions and capex is a core focus which we will not deviate from. With unencumbered assets of $3.0 billion, zero debt maturing in 2023, and only two mortgages maturing in 2024, we are very well positioned to continue to execute our growth strategy.”
“The 2.4% distribution increase and strong 2024 guidance introduced this quarter both reflect the continued strength and momentum we are seeing in our portfolio,” said Alex Avery, Chief Executive Officer. “The acquisition of Conestoga Mall which closed in the third quarter, added a highly attractive property to our portfolio. This asset and transaction exemplifies the types of properties our acquisition strategy is focused on, and has acted as a positive catalyst in advancing the REIT’s portfolio of acquisition discussions and negotiations.”
2023 and 2024 Financial Outlook
Disciplined capital allocation is a key pillar to Primaris’ strategy. To this end, Primaris reiterates its established targets for managing the Trust’s financial condition.
|
|
Targets |
|
Debt to Total Assets**1 |
25% – 35% |
|
Average Net Debt** to Adjusted EBITDA**1 |
4.0x – 6.0x |
|
FFO Payout Ratio** |
45% – 50% |
|
Secured debt to Total Debt** |
<40% |
|
** Denotes a non-GAAP measure. See Section 1, “Basis of Presentation” – “Use of Non-GAAP Measures” and Section 12, “Non-GAAP Measures” in the Management’s Discussion and Analysis (“MD&A”). |
|
|
1 The debt ratios are non-GAAP ratios calculated on the basis described in the indentures for the Series A, Series B and Series C debentures (the “Trust Indentures”). See Section 10.4, “Capital Structure” in the MD&A. |
|
Guidance: In addition to its established targets, in the MD&A for the three months and year ended December 31, 2022, Primaris published guidance for the full year of 2023 and in the MD&A for the three and six months ended June 30, 2023, Primaris updated certain of the 2023 guidance and provided additional guidance with respect to Cash NOI**. This previously published guidance has been reproduced again below and updated for management’s current expectations based on the most recent information available to management, including the actual results to date and the acquisition of Conestoga Mall. Readers are cautioned that there is a significant risk that actual results for the year ending December 31, 2023 will vary from the financial outlook statements provided in this MD&A and that such variations may be material. See Section 2, “Forward-Looking Statements and Future-Oriented Financial Information” in the MD&A for further cautions on material factors, assumptions, risks and uncertainties that could impact the financial outlook statements.
|
|
|
2023 Guidance |
|
|
|
|
||
|
(unaudited) |
|
Previously Published |
|
Updated or Added |
|
Additional Notes |
|
MD&A Section Reference |
|
Occupancy |
|
Increase of 0.8% to 1.0% |
|
No change in guidance |
|
|
|
Section 8, “Operational Performance” |
|
Contractual rent steps in rental revenue |
|
Approximately $2.1 million, or 1.0% of 2022 base rent |
|
No change in guidance |
|
|
|
Section 9.1, “Components of Net Income (Loss)” |
|
Straight-line rent in rental revenue |
|
$1.8 to $2.2 million |
|
$2.7 to $3.0 million |
|
|
|
Section 9.1, “Components of Net Income (Loss)” |
|
Cash NOI** |
|
$220 to $224 million |
|
$222 to $224 million |
|
Cash NOI** for the year ended December 31, 2022 – $206.1 million |
|
Section 9.1, “Components of Net Income (Loss)” |
|
Same Properties Cash NOI** Growth |
|
4.0% to 5.5% |
|
No change in guidance |
|
Same Properties total 34, excludes Northland Village (under redevelopment) and Conestoga Mall |
|
Section 9.1, “Components of Net Income (Loss)” |
|
General and administrative expenses |
|
Approximately $30 million |
|
No change in guidance |
|
|
|
Section 9.1, “Components of Net Income (Loss)” |
|
Impairment of Right of Use Asset |
|
No guidance provided |
|
$2.2 million impairment of right of use asset |
|
Portion that impacts cash flow is only $0.4 million and $1.8 million non-cash |
|
Section 9.1, “Components of Net Income (Loss)” |
|
Operating capital expenditures |
|
$27.7 to $31.7 million or $2.55 to $2.90 per square foot |
|
Anticipated to be in the top end of the range |
|
Minimal 2023 impact from the Conestoga Mall acquisition anticipated |
|
Section 8, “Operational Performance” |
|
Redevelopment capital expenditures |
|
$50 to $60 million |
|
$60 to $70 million |
|
Progress on Northland redevelopment project accelerated further |
|
Section 7.4, “Redevelopment and Development” |
|
FFO** per unit |
|
No guidance provided |
|
$1.56 to $1.58 per unit fully diluted |
|
Net of the negative impact of the office sublease of approximately $0.022 per unit |
|
Section 9.2, “FFO** and AFFO**” |
|
** Denotes a non-GAAP measure. See Section 1, “Basis of Presentation” – “Use of Non-GAAP Measures” and Section 12, “Non-GAAP Measures” in the MD&A. |
||||||||
Primaris has provided guidance for the full year of 2024 as follows:
|
(unaudited) |
|
2024 Guidance |
|
Additional Notes |
|
MD&A Section Reference |
|
Occupancy |
|
Increase of 0.8% to 1.0% |
|
|
|
Section 8, “Operational Performance” |
|
Contractual rent steps in rental revenue |
|
$3.0 to $3.2 million |
|
1.25% to 1.50% of 2023 base rent |
|
Section 9.1, “Components of Net Income (Loss)” |
|
Straight-line rent in rental revenue |
|
$3.3 to $3.6 million |
|
|
|
Section 9.1, “Components of Net Income (Loss)” |
|
Same Properties Cash NOI** Growth |
|
3.0% to 4.0% |
|
Same Properties total 34, excludes Northland Village (under redevelopment) and Conestoga Mall |
|
Section 9.1, “Components of Net Income (Loss)” |
|
General and administrative expenses |
|
$30 to $32 million |
|
Includes approximately $0.7 million occupancy cost savings from sublease of excess head office space |
|
Section 9.1, “Components of Net Income (Loss)” |
|
Operating capital expenditures |
|
Recoverable Capital $16 to $18 million Leasing Capital $28 to $30 million |
|
|
|
Section 8, “Operational Performance” |
|
Redevelopment capital expenditures |
|
$30 to $40 million |
|
Northland Village and Devonshire Mall |
|
Section 7.4, “Redevelopment and Development” |
|
FFO** per unit |
|
$1.60 to $1.63 per unit fully diluted |
|
|
|
Section 9.2, “FFO** and AFFO**” |
|
** Denotes a non-GAAP measure. See Section 1, “Basis of Presentation” – “Use of Non-GAAP Measures” and Section 12, “Non-GAAP Measures” in the MD&A. |
||||||
Readers are cautioned that there is a significant risk that actual results for the year ending December 31, 2024 will vary from the financial outlook statements provided in this MD&A and that such variations may be material. See Section 2, “Forward-Looking Statements and Future-Oriented Financial Information” in the MD&A for further cautions on material factors, assumptions, risks and uncertainties that could impact the financial outlook statements.
Select Financial and Operational Metrics
|
As at or for the three months ended September 30, (in thousands of Canadian dollars unless otherwise indicated) (unaudited) |
|
2023 |
|
|
|
2022 |
|
|
Change |
||
|
Number of investment properties |
|
36 |
|
|
|
35 |
|
|
|
1 |
|
|
Gross leasable area (“GLA”) (in millions of square feet) |
|
11.5 |
|
|
|
10.9 |
|
|
|
0.6 |
|
|
In-place occupancy |
|
91.0 |
% |
|
|
90.7 |
% |
|
|
0.3 |
% |
|
Committed occupancy |
|
92.8 |
% |
|
|
91.7 |
% |
|
|
1.1 |
% |
|
Weighted average net rent per occupied square foot1 |
$ |
24.85 |
|
|
$ |
24.18 |
|
|
$ |
0.67 |
|
|
Total assets |
$ |
3,507,605 |
|
|
$ |
3,181,312 |
|
|
$ |
326,293 |
|
|
Total liabilities |
$ |
1,410,619 |
|
|
$ |
1,024,988 |
|
|
$ |
385,631 |
|
|
Total revenue |
$ |
104,826 |
|
|
$ |
94,151 |
|
|
$ |
10,675 |
|
|
Cash flow from (used in) operating activities |
$ |
53,316 |
|
|
$ |
50,900 |
|
|
$ |
2,416 |
|
|
Cash Net Operating Income** (“Cash NOI”) |
$ |
58,263 |
|
|
$ |
53,103 |
|
|
$ |
5,160 |
|
|
Same Properties Cash NOI** growth |
|
3.1 |
% |
|
|
— |
|
|
|
— |
|
|
Net income (loss) |
$ |
20,230 |
|
|
$ |
(20,498 |
) |
|
$ |
40,728 |
|
|
Net income (loss) per unit |
$ |
0.202 |
|
|
$ |
(0.207 |
) |
|
$ |
0.409 |
|
|
Funds from Operations** (“FFO”) per unit2 – average diluted |
$ |
0.421 |
|
|
$ |
0.411 |
|
|
$ |
0.010 |
|
|
FFO Payout Ratio** |
|
49.4 |
% |
|
|
48.6 |
% |
|
|
0.8 |
% |
|
Adjusted Funds from Operations** (“AFFO”) per unit2 – average diluted |
$ |
0.296 |
|
|
$ |
0.319 |
|
|
$ |
(0.023 |
) |
|
AFFO Payout Ratio** |
|
70.3 |
% |
|
|
62.7 |
% |
|
|
7.6 |
% |
|
Distributions per unit2 |
$ |
0.208 |
|
|
$ |
0.200 |
|
|
$ |
0.008 |
|
|
Weighted average units outstanding2 – diluted (in thousands) |
|
101,050 |
|
|
|
100,183 |
|
|
|
867 |
|
|
Net Asset Value** (“NAV”) per unit outstanding |
$ |
21.76 |
|
|
$ |
21.86 |
|
|
$ |
(0.10 |
) |
|
Debt to Total Assets**3 |
|
35.0 |
% |
|
|
29.6 |
% |
|
|
5.4 |
% |
|
Average Net Debt** to Adjusted EBITDA**3,4 |
5.3x |
|
5.0x |
|
0.3x |
||||||
|
Interest Coverage**3,4 |
3.8x |
|
5.7x |
|
(1.9x) |
||||||
|
Liquidity |
$ |
279,281 |
|
|
$ |
364,014 |
|
|
$ |
(84,733 |
) |
|
Unencumbered Assets |
$ |
2,998,687 |
|
|
$ |
2,645,293 |
|
|
$ |
353,394 |
|
|
Unencumbered assets to unsecured debt |
3.2x |
|
4.4x |
|
(1.2x) |
||||||
|
Secured debt to Total Debt** |
|
24.1 |
% |
|
|
36.7 |
% |
|
|
(12.6 |
)% |
|
Fixed rate debt as a percent of Total Debt** |
|
89.2 |
% |
|
|
73.9 |
% |
|
|
15.3 |
% |
|
Weighted average term to debt maturity -Total Debt** (in years) |
|
3.6 |
|
|
|
2.6 |
|
|
|
1.0 |
|
|
Weighted average interest rate – Total Debt** |
|
4.96 |
% |
|
|
4.07 |
% |
|
|
0.89 |
% |
|
** Denotes a non-GAAP measure. See Section 1, “Basis of Presentation” – “Use of Non-GAAP Measures” and Section 12, “Non-GAAP Measures” in the MD&A. |
|||||||||||
|
1 Supplementary financial measure, see Section 1, “Basis of Presentation” – “Use of Operating Metrics” in the MD&A. |
|||||||||||
|
2 Weighted average units outstanding and distributions per unit assumes the exchange of Preferred LP Units to Trust Units. See Section 10.6, “Unit Equity and Distributions” in the MD&A. |
|||||||||||
|
3 The debt ratios are non-GAAP ratios calculated on the basis described in the indentures for the Series A, Series B and Series C debentures (the “Trust Indentures”). See Section 10.4, “Capital Structure” in the MD&A. |
|||||||||||
|
4 Adjusted EBITDA** and interest expense were calculated for the rolling four-quarters ended September 30, 2023 and Average Net Debt** was calculated as the average of Net Debt** at the beginning of the period and each quarter end during the rolling four-quarters included in the calculation of Adjusted EBITDA**. Financial results from 2021, prior to Primaris’ spin-out and the acquisition of the HOOPP Properties, have minimal comparative value. Accordingly, for the period ended September 30, 2022, Adjusted EBITDA** was calculated on an annualized basis and the Average Net Debt** was calculated as the simple average of Net Debt** at the beginning and end of the period. The presentation of the September 30, 2022 values, was updated from previously reported which was based on the three, not nine, months ended September 30, 2022. See Section 10.4, “Capital Structure” in the MD&A. |
|||||||||||
Operating Results
Same Properties Cash NOI** for the quarter was $1.6 million, or 3.1%, higher than the same period of the prior year. Cash NOI** from Same Properties shopping centres contributed $1.7 million, or 3.2%, to the increase. The increase was driven by higher revenues from base rent, specialty leasing and lower bad debt expense, partially offset by lower net recovery of operating costs (due to an adjustment of $1.0 million in the third quarter of 2022 that did not recur). Completed redevelopment projects contributed $0.5 million incremental base rent to the shopping centres.
The below table compares the composition of FFO** and AFFO** and calculates the drivers of the changes for the three months ended September 30, 2023 as compared to the same period in 2022.
|
For the three months ended September 30,
($ thousands except per unit amounts) (unaudited) |
2023 |
|
2022 |
|
Change |
||||||||||||||||||
|
Contribution |
|
per unit1 |
|
Contribution |
|
per unit1 |
|
Contribution |
|
per unit1 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
NOI** from: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Same Properties2 |
$ |
55,636 |
|
|
$ |
0.551 |
|
|
$ |
53,093 |
|
|
$ |
0.530 |
|
|
$ |
2,543 |
|
|
$ |
0.025 |
|
|
Acquisition |
|
3,658 |
|
|
|
0.036 |
|
|
|
— |
|
|
|
— |
|
|
|
3,658 |
|
|
|
0.037 |
|
|
Property under redevelopment |
|
1,190 |
|
|
|
0.012 |
|
|
|
1,114 |
|
|
|
0.011 |
|
|
|
76 |
|
|
|
0.001 |
|
|
Interest and other income |
|
2,028 |
|
|
|
0.020 |
|
|
|
890 |
|
|
|
0.009 |
|
|
|
1,138 |
|
|
|
0.011 |
|
|
Net interest and other financing charges (excluding distributions on Preferred LP Units) |
|
(14,213 |
) |
|
|
(0.141 |
) |
|
|
(8,619 |
) |
|
|
(0.086 |
) |
|
|
(5,594 |
) |
|
|
(0.056 |
) |
|
General and administrative expenses (net of internal expenses for leases) |
|
(5,368 |
) |
|
|
(0.053 |
) |
|
|
(4,887 |
) |
|
|
(0.049 |
) |
|
|
(481 |
) |
|
|
(0.005 |
) |
|
Amortization |
|
(374 |
) |
|
|
(0.004 |
) |
|
|
(374 |
) |
|
|
(0.004 |
) |
|
|
— |
|
|
|
— |
|
|
Impact from issuance of units as part of acquisition consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.017 |
) |
|
Impact of cancellation of units under NCIB |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.014 |
|
|
FFO** and FFO** per unit – average diluted |
$ |
42,557 |
|
|
$ |
0.421 |
|
|
$ |
41,217 |
|
|
$ |
0.411 |
|
|
$ |
1,340 |
|
|
$ |
0.010 |
|
|
FFO* |
$ |
42,557 |
|
|
$ |
0.421 |
|
|
$ |
41,217 |
|
|
$ |
0.411 |
|
|
$ |
1,340 |
|
|
$ |
0.013 |
|
|
Internal expenses for leases |
|
(1,972 |
) |
|
|
(0.019 |
) |
|
|
(1,349 |
) |
|
|
(0.013 |
) |
|
|
(623 |
) |
|
|
(0.006 |
) |
|
Straight-line rent |
|
(730 |
) |
|
|
(0.007 |
) |
|
|
(1,091 |
) |
|
|
(0.011 |
) |
|
|
361 |
|
|
|
0.004 |
|
|
Recoverable and non-recoverable costs |
|
(5,245 |
) |
|
|
(0.052 |
) |
|
|
(2,370 |
) |
|
|
(0.024 |
) |
|
|
(2,875 |
) |
|
|
(0.029 |
) |
|
Tenant allowances and leasing costs |
|
(4,726 |
) |
|
|
(0.047 |
) |
|
|
(4,451 |
) |
|
|
(0.044 |
) |
|
|
(275 |
) |
|
|
(0.003 |
) |
|
Impact from issuance of units as part of acquisition consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.012 |
) |
|
Impact from cancellation of units under NCIB |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.010 |
|
|
AFFO** and AFFO** per unit – average diluted |
$ |
29,884 |
|
|
$ |
0.296 |
|
|
$ |
31,956 |
|
|
$ |
0.319 |
|
|
$ |
(2,072 |
) |
|
$ |
(0.023 |
) |
|
** Denotes a non-GAAP measure. See Section 1, “Basis of Presentation” – “Use of Non-GAAP Measures” and Section 12, “Non-GAAP Measures” in the MD&A. |
|||||||||||||||||||||||
|
1 Per weighted average diluted unit. Weighted average units outstanding assumes the exchange of Preferred LP Units for Trust Units. See Section 10.6, “Unit Equity and Distributions” of the MD&A. |
|||||||||||||||||||||||
|
2 Properties owned throughout the entire 21 months ended September 30, 2023, excluding properties under development or major redevelopment, are referred to as “Same Properties”. |
|||||||||||||||||||||||
FFO** for the three months ended September 30, 2023 was $0.010 per unit higher than the same period of the prior year. NOI** increased $0.025 per unit from Same Properties and $0.037 per unit from the acquisition of Conestoga Mall during the quarter. Interest and other income increased $0.011 per unit primarily due to the interest income earned on the note receivable from a co-ownership partner, and the change in the units outstanding from NCIB activity resulted in a $0.014 per unit increase. These increases were partially offset by the $0.056 per unit decrease due to higher net interest and other financing charges and a $0.017 per unit decrease due to the units issued as partial consideration in the Conestoga Mall acquisition.
Occupancy and Leasing Results
Primaris’ leasing activities are focused on driving value by actively managing the tenant and merchandising mix at its investment properties. Due to seasonality, fourth quarter occupancy is typically higher as retailers benefit from holiday shopping. Portfolio in-place occupancy at September 30, 2023 increased 0.3% from September 30, 2022.
|
As at |
|
Committed occupancy |
In-place occupancy |
||||||||||
|
Count |
September 30, 2023 |
September 30, 2023 |
December 31, 2022 |
September 30, 2022 |
|||||||||
|
|
|
|
|
|
|
||||||||
|
Shopping centres1 |
22 |
92.3 |
% |
90.4 |
% |
90.9 |
% |
90.4 |
% |
||||
|
Acquisition2 |
1 |
95.9 |
% |
95.9 |
% |
— |
|
— |
|
||||
|
Other properties3 |
13 |
94.6 |
% |
93.4 |
% |
92.7 |
% |
92.8 |
% |
||||
|
Portfolio occupancy |
36 |
92.8 |
% |
91.0 |
% |
91.1 |
% |
90.7 |
% |
||||
|
1 Shopping centres include 21 enclosed malls and 1 open air centre, Highstreet Shopping Centre in Abbotsford, BC. |
|||||||||||||
|
2 See Section 7.3, “Acquisition” in the MD&A. |
|||||||||||||
|
3 Other properties include 9 plazas, 3 office buildings and 1 industrial building. Other properties above includes the property under redevelopment. |
|||||||||||||
In the quarter, Primaris completed 155 leasing deals totaling 0.4 million square feet. Overall renewal rents were up 4.2% comprised of commercial retail unit (“CRU”) renewals of 2.3%, and large format renewals of 10.3%.
Included in the leasing activity for the quarter were 31 new leases that were for a lease term of less than one year, or for percentage rent in lieu of base rent. While these lease structures have always been a tool to manage tenant relocations and the timing of development plans, during the pandemic, leases structured as percentage rent in lieu of base rent were more prevalent to assist tenants and to maintain occupancy rates. As these leases mature, management anticipates moving tenants back to traditional lease structures. At September 30, 2023, percentage rent in lieu of base rent leases were in place for 0.6 million square feet of GLA, or 5.3% as a percentage of in-place leases with an average remaining lease term of 1.7 years.
|
Percentage Rent in Lieu of Base Rent Leases |
||||
|
As at |
Number of Leases |
Portion of Leases by Count1 |
||
|
September 30, 20232 |
121 |
5.3 |
% |
|
|
June 30, 2023 |
128 |
5.9 |
% |
|
|
March 31, 2023 |
155 |
7.1 |
% |
|
|
December 31, 2022 |
169 |
7.7 |
% |
|
|
September 30, 2022 |
177 |
8.1 |
% |
|
|
June 30, 2022 |
181 |
8.3 |
% |
|
|
March 31, 2022 |
184 |
8.5 |
% |
|
|
1 Lease count excludes short term leases. |
||||
|
2 Includes 10 leases from the Conestoga Mall acquisition. |
||||
Robust Liquidity and Differentiated Financial Model
Primaris’ differentiated financial model is core to its overall strategy, providing a best-in-class capital structure upon which to build the business, providing on-going financial stability and strength. The following table summarizes key metrics relating to Primaris’ unencumbered assets and unsecured debt.
|
($ thousands) (unaudited) As at |
Target Ratio |
September 30, 2023 |
|
December 31, 2022 |
||||
|
|
|
|
|
|
||||
|
Unencumbered assets – number |
|
|
30 |
|
|
|
30 |
|
|
Unencumbered assets – value |
|
$ |
2,998,687 |
|
|
$ |
2,863,844 |
|
|
Unencumbered assets as a percentage of the investment properties |
|
|
87.5 |
% |
|
|
91.8 |
% |
|
Secured debt to Total Debt** |
<40% |
|
24.1 |
% |
|
|
21.4 |
% |
|
Unencumbered assets to unsecured debt |
|
3.2x |
|
3.6x |
||||
|
Unencumbered assets in excess of unsecured debt |
|
$ |
2,066,687 |
|
|
$ |
2,069,844 |
|
|
Percent of Cash NOI** generated by unencumbered assets |
|
|
85.5 |
% |
|
|
90.2 |
% |
|
** Denotes a non-GAAP measure. See Section 1, “Basis of Presentation” – “Use of Non-GAAP Measures” and Section 12, “Non-GAAP Measures” in the MD&A. |
||||||||
There is no debt maturing in 2023.
Liquidity at quarter end was $279.3 million, or 22.7% of Total Debt**.
Primaris has a NAV** per unit outstanding of $21.76.
Conference Call and Webcast
| Date: Friday November 3, 2023, at 9:00 a.m. (ET) | |
|
Webcast link: Please go to the Investor Relations section on Primaris’ website or click here. |
|
| Conference call details: | |
| Dial: | 1-833-470-1428 |
| Passcode: | 790497 |
The call will be accessible for replay until November 17, 2023, by dialing 1-866-813-9403 with access code 215070, or on the Investor Relations section of the website.
About Primaris Real Estate Investment Trust
Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests primarily in leading enclosed shopping centres located in growing markets. The current portfolio totals 11.5 million square feet valued at approximately $3.4 billion at Primaris’ share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape.
Forward-Looking Statements and Future Oriented Financial Information Disclaimer
Certain statements included in this news release constitute ‘‘forward-looking information’’ or “forward-looking statements” within the meaning of applicable securities laws. The words “will”, “expects”, “plans”, “estimates”, “intends” and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements made or implied in this news release include but are not limited to statements regarding: growth opportunities, estimated growth of Same Properties Cash NOI**, expected future distributions, the Trust’s development activities, expected benefits from the Trust’s normal course issuer bid activity, occupancy improvement, increasing rental rates, future acquisitions, reinvestment in select shopping centres, internal NOI** growth opportunity, refinancing risk, the Trust’s targets for managing its financial condition, the recovery of tenant sales, and the movement of tenants back to traditional lease structures. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on estimates and assumptions that are inherently subject to risks and uncertainties, Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, actual results, performance or achievements of Primaris may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in the MD&A which will be available on SEDAR, and in Primaris’ other materials filed with the Canadian securities regulatory authorities from time to time. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, Primaris undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.
Readers are cautioned that there is a significant risk that actual results for the years ending December 31, 2023 and December 31, 2024 will vary from the financial outlook statements provided in this news release and MD&A and that such variations may be material.
Certain forward-looking information included in this news release may also be considered “future-oriented financial information” or “financial outlook” for purposes of applicable securities laws (collectively, “FOFI”). FOFI about the Trust’s prospective results of operations including, without limitation, anticipated FFO** per unit, anticipated NOI** growth, impact on rental revenue of contractual rent-steps, anticipated general and administrative expense levels, and anticipated capital spending, is subject to the same assumptions, risk factors, limitations and qualifications set out in the MD&A which will be available on SEDAR, and in Primaris’ other materials filed with the Canadian securities regulatory authorities from time to time.
Contacts
For more information:
TSX: PMZ.UN
www.primarisreit.com
www.sedarplus.ca
Alex Avery
Chief Executive Officer
416-642-7837
[email protected]
Rags Davloor
Chief Financial Officer
416-645-3716
[email protected]
Timothy Pire
Chair of the Board
[email protected]
