Canada's Primaris REIT Q3 rental revenue rises on strong leasing activity

Overview

• Canada shopping centre REIT's Q3 total rental revenue rose yr/yr

• FFO per unit grew 5.6% yr/yr, driven by higher NOI

• Company announced 5.7% increase in annual distribution, effective Dec 31, 2026

Outlook

• Company expects 2027 occupancy of 88% to 90% and FFO per unit of C$1.93 to C$1.99

Result Drivers

• LEASING MOMENTUM - Strong leasing activity and healthy demand from national and international retailers supported occupancy and NOI growth

• OCCUPANCY GAINS - Leasing momentum is driving occupancy gains, strengthening the merchandising mix in centres and supporting NOI growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Primaris Real Estate Investment Trust is C$25.75, about 15.7% above its October 27 closing price of C$22.25

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 28 - Canada's Morguard REIT Q3 net operating income falls 12.6% yr/yr

• Oct 28 - Invitation Homes Q3 revenue beats estimates on rental rate growth

• Oct 28 - Urban Edge Q3 profit rises on higher rental revenues, lifts outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)