$PMZ-UN.TO

Primaris REIT Price Target Raised to $25 at CIBC

CIBC Capital Markets raised its price target on Primaris REIT (PMZ-UN.TO) to C$25 from C$22.Analyst Tal Woolley maintained an Outperformer rating on shares of the Canadian shopping center-focused real estate company."We believe the outlook for PMZ can continue to improve in a Canadian retail environment with a lack of traditional department store anchor tenants," Woolley said in a note to clients."We also expect PMZ to soon offer another positive leasing update on its 1.3 million square feet of vacant anchor space," the analyst said.CIBC's estimate of the company's return on invested capital average 7.4% over the next two years. That's "well ahead of the balance of our REIT coverage (averaging 5.8%), delivering higher returns needed for the higher operating risk with enclosed mall assets (with its discretionary spending exposure and higher capital intensity)," Woolley said.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

CIBC Raises Its Primaris REIT Price Target By C$2, Reiterates its Outperformer Rating

CIBC Capital Markets reiterated its outperformer rating on the shares of Primaris Real Estate Investment Trust (PMZ-UN.TO) while raising its price target to C$22.00 from C$20.00 on Thursday, following PMZ's first quarter results on Wednesday.PMZ reported Q1 FFO/unit of $0.425 (-3.2% Y/Y), broadly in line with consensus, noted CIBC."Our 2027 FFO/unit estimate rises by near 2%, as we better reflect the improved leasing cadence on the ground," said CIBC, adding it $22 price target is based on an 11 times 2027 estimated FFO/unit multiple (10.2 times previously), translating to a 5% discount to the bank's revised one-year-out NAV (9% previously), "reflective of its risk, growth prospects, and leverage versus peers."CIBC also reiterated its belief that PMZ unitholders will benefit from occupancy improvements and rent growth over the long term. Tenant relationships for mall operators matter given the reach of their typically national tenant base, CIBC said. Controlling increasingly more productive assets through acquisition and organic growth will increase PMZ's importance to these national tenants, the bank added."PMZ's ability to fund its capex and distribution from its own rents and low balance sheet leverage drive a lower financial risk profile that offsets the risk of owning a higher-risk asset class in enclosed malls," added CIBC. Trading at an implied cap rate of near 8.7% on achievable forecasts, CIBC believes investors are being well compensated for the operating risks involved with owning PMZ units (e.g., anchor tenant transitions) versus the balance of the large-cap Canadian retail REIT universe (trading at estimated implied cap rates of 5.8%-7.1%)."CIBC noted on the call that Primaris will provide a detailed update on its HBC progress in the next 60 days, once it has a significant number of fully executed leases in place, and also that CRU leasing momentum "accelerated meaningfully" in Q1, with management highlighting record new deal volumes and pricing.Price: $19.01, Change: $+0.14, Percent Change: +0.74%

Primaris REIT Reports Higher Profit, Total Rental Revenue for First Quarter; Full-year Outlook Maintained

Primaris Real Estate Investment Trust (PMZ-UN.TO) after trade Wednesday reported higher total rental revenue and profit for the first quarter and reaffirmed its 2026 outlook.The REIT earned $41.9 million, or $0.305 per unit, in the period, up from $31.2 million, or $0.257, a year ago. Corresponding FactSet figures were not available.Total rental revenue rose to $177.04 million from $150.2 million a year prior. FactSet expected sales of $180.8 million.Among other highlights, Primaris cited funds from operations per average diluted unit of $0.425 compared with $0.439 a year ago. FactSet projected FFO per share of $0.44."Our low leverage, low payout ratio model is a critical pillar to our strategy. We have significant liquidity with the full availability on our unsecured credit facility with no debt maturing in 2026, Chief Financial Officer Rags Davloor said."With strong liquidity, very low leverage, and a low payout ratio, we are well positioned to fund internal growth, enhance portfolio quality, and create long term value for our unitholders," Chief Executive Alex Avery added.The REIT said it is maintaining its full-year 2026 guidance.The REIT's units closed down $0.05 to $18.98 on the Toronto Stock Exchange.

Earnings Flash (PMZ-UN.TO) Primaris REIT Reports Q1 Total Rental Revenue C$177.0M; Reaffirms Guidance