Primaris targets annual growth of 4% to 8% in FFO and distributions through 2029
Key Facts
Primaris set targets for 2027 to 2029 that include average annual growth of 4% to 8% in funds from operations per unit, and annual distribution growth within the same range. The company announced these targets in October 2026, according to its investor relations page. The targets set a medium-term growth path for both metrics, while CEO Alex Avery is focused on leasing vacant space and realizing the portfolio’s embedded net operating income. Avery said the near-term focus is on "raising portfolio occupancy levels, realizing embedded net operating income, and investing strategically in properties." The company lists its third-quarter 2026 results among events for October 29, making the upcoming announcement the next milestone for tracking performance against these targets.
The latest quarterly figures documented in the materials date to the third quarter of 2025, when net funds from operations reached C$0.443 per diluted unit on average, up 5.7% year over year, while net income was C$40.9 million. Rental revenue totaled C$159.2 million during the quarter. As of September 30, 2025, committed occupancy was 92.8%, compared with physical occupancy of 91.8%. Same-property cash net operating income also grew 0.7%, or 2.1% excluding the impact of vacated HBC locations. Same-store sales productivity was C$794 per square foot, according to the company’s earnings release for that quarter.
In discussing funds-from-operations-per-unit growth in that quarter, the company said the increase was C$0.024, or 5.7%, compared with the same period a year earlier. The company attributed C$0.242 per unit to net operating income contributions from acquisitions, offset by a decline of C$0.059 per unit from disposition activity. Interest on debt and other financing costs also increased by the equivalent of C$0.046 per unit, while the net effect of the change in average diluted units outstanding was C$0.092 per unit. On October 29, 2025, the company announced an increase in its annual distribution from C$0.86 to C$0.88 per unit, a 2.3% rise effective with the December 31, 2025 distribution. In its guidance published at the time, it set 2026 targets for same-property growth of 1% to 3%, occupancy of 86% to 88%, and diluted funds from operations per unit of C$1.83 to C$1.88.
Primaris describes itself as a real estate investment trust focused on enclosed shopping centres in Canada. Its investor relations page says average net debt to adjusted EBITDA is 6.0 times on a four-quarter average basis. The company also sets a target payout ratio of 45% to 50% of funds from operations. This financial framework places the distribution growth target alongside the target payout ratio and leverage level the company presents to investors. Ahead of the upcoming third-quarter results, Primaris announced on October 16, 2026, that it had completed the sale of Upper Canada Mall for C$41.8 million.