Latest news with #GreenFinanceFramework
National Post
30-07-2025
- Business
- National Post
Primaris REIT Announces Strong Q2/25; Increases 2025 Guidance
Article content TORONTO — Primaris Real Estate Investment Trust ('Primaris' or 'the Trust') (TSX: announced today financial and operating results for the second quarter ended June 30, 2025. Article content Quarterly Financial and Operating Results Highlights Article content $150.8 million total rental revenue; +5.5% Same Properties Cash Net Operating Income** ('Cash NOI') growth; +5.7% Same Properties shopping centres Cash NOI** growth; 90.5% committed occupancy, 88.8% in-place occupancy, and 84.8% long-term in-place occupancy; +6.7% weighted average spread on renewing rents* across 407,000 square feet; +5.5% Funds from Operations** ('FFO') per average diluted unit growth to $0.445; 52.6% FFO Payout Ratio**; $50.4 million in net income; $5.0 billion total assets; 5.8x Average Net Debt** to Adjusted EBITDA**; $584.0 million in liquidity*; $4.4 billion in unencumbered assets; and $21.43 Net Asset Value** ('NAV') per unit outstanding. Article content Business Update Highlights Article content Increased guidance for 2025 Cash NOI** and FFO** per unit to $340 to $345 million and $1.74 to $1.79 per unit fully diluted , respectively; Acquired Lime Ridge Mall in Hamilton, Ontario for total consideration of $416 million, adding 791 thousand square feet to the portfolio; Sold Lansdowne Industrial, an industrial centre in Peterborough, Ontario for $9.9 million; Published its inaugural Green Finance Framework, under which it may issue green bonds, green loans or other related financial instruments; Issued $200 million aggregate principal amount of senior unsecured debentures maturing June 25, 2033 at a fixed annual interest rate of 4.835% for the financing of eligible green projects as described in the Trust's June 2025 Green Finance Framework; and Purchased for cancellation 2,664,000 Trust Units under the Trust's NCIB program at an average price per unit of approximately $14.98, representing a discount to NAV** per unit of approximately 30.1%. Article content 'Our shopping centre portfolio continues to perform very well with NOI growth coming from strong rental revenue growth and percentage rent, and rising cost recoveries,' said Patrick Sullivan, President and Chief Operating Officer. 'Leasing momentum remains robust with strong tenant demand across our portfolio, including demand for our HBC boxes. We are in advanced discussions with strong covenant, high-quality national retailers, including large format tenants.' 'With the acquisition of Lime Ridge Mall, Primaris has acquired approximately $1 billion of market leading enclosed shopping centres in 2025, driving our portfolio quality significantly higher with same store sales productivity totaling $784 per square foot,' said Alex Avery, Chief Executive Officer. 'Disciplined capital allocation remains a core focus, and we demonstrated its benefits through asset capital recycling and NCIB activity, driving strong financial and operating results, while also delivering transformative changes to our portfolio.' Article content 2025 Financial Outlook Article content Disciplined capital allocation is a key pillar to Primaris' strategy. To this end, Primaris established certain targets for managing the Trust's financial condition and maintaining a conservative capital structure (see Section 3, 'Business Overview and Strategy' of the management's discussion and analysis for the three and six months ended June 30, 2025 (the 'MD&A')). Article content Guidance: Article content Primaris provided guidance for the full year of 2025 in the management's discussion and analysis for the three months and years ended December 31, 2024 and 2023 (the 'Annual MD&A'). This guidance was subsequently reaffirmed in the 2025 first quarter management's discussion and analysis, except for occupancy. The most recently previously published guidance for 2025 is reproduced below and has been updated to reflect management's current expectations based on the most recent information available to management. Article content 2025 Guidance Contractual rent steps in rental revenue $3.4 to $3.8 million No change in guidance Section 9.1, 'Components of Net Income (Loss)' Straight-line rent adjustment in rental revenue $6.8 to $7.2 million $6.0 to $7.2 million Updated to reflect actual results to June 30, 2025 and management's expectations for the balance of the 2025 year. Section 9.1, 'Components of Net Income (Loss)' Same Properties Cash NOI** growth 3.0% to 4.0% No change in guidance Same Properties excludes Northland (under redevelopment) and the acquisitions of Les Galeries de la Capitale, Oshawa Centre, Southgate Centre (50%) and Lime Ridge Mall and Professional Centre Section 9.1, 'Components of Net Income (Loss)' Cash NOI** $331 to $337 million $340 to $345 million Includes the impact of the January 31, 2025 and June 17, 2025 acquisitions and approximately $300 million of dispositions throughout the year. Updated to reflect actual results to June 30, 2025 and management's expectations for the balance of the 2025 year. Section 9.1, 'Components of Net Income (Loss)' General and administrative expenses $36 to $38 million No change in guidance Section 9.1, 'Components of Net Income (Loss)' Operating capital expenditures Recoverable Capital $18 to $20 million Leasing Capital $20 to $24 million No change in guidance Section 8.7, 'Operating Capital Expenditures' Redevelopment capital expenditures $48 to $50 million No change in guidance Primarily attributable to Devonshire Mall and Northland Section 7.4, 'Redevelopment and Development' FFO** per unit 1 $1.70 to $1.75 per unit fully diluted $1.74 to $1.79 per unit fully diluted Includes the impact of the January 31, 2025 and June 17, 2025 acquisitions and over $300 million of dispositions throughout the year. Updated to reflect actual results to June 30, 2025 and management's expectations for the balance of the 2025 year. Section 9.2, 'FFO** and AFFO**' Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Units outstanding and weighted average units outstanding assumes the exchange of exchangeable preferred units in subsidiary limited partnerships of the Trust that are exchangeable into Trust Units ('Exchangeable Preferred LP Units'). See Section 10.6, 'Unit Equity and Distributions' of the MD&A. Article content On September 24, 2024, Primaris released a set of targets for the period ending December 31, 2027. These targets are not guidance, but are an outlook based on the execution of Primaris' strategic pillars. Article content (unaudited) 3 Year Targets Progress to Date Additional Notes MD&A Section Reference In-place Occupancy New Target: 94% to 96% Prior Target: 96% Target reduced to reflect impact of HBC and acquisition activity which increase HBC exposure. In-place occupancy was 92.4% at December 31, 2023 In-place occupancy was 94.5% at December 31, 2024 Section 8.1, 'Occupancy' Annual Same Properties Cash NOI** growth 3% to 4% Growth for the year ended December 31, 2023 was 5.4% Growth for the year ended December 31, 2024 was 4.5% Section 9.1, 'Components of Net Income (Loss)' Acquisitions > $1 billion Achieved $1,326 million October 1, 2024 – Les Galeries de la Capitale January 31, 2025 – Oshawa Centre and Southgate Centre June 17, 2025 – Lime Ridge Mall and Professional Centre Section 7.3, 'Transactions' Dispositions > $500 million $278.1 million December 13, 2024 – Edinburgh Market Place February 21, 2025 – excess land February 28, 2025 – Sherwood Park Mall and Professional Centre March 31, 2025 – St. Albert Centre May 30, 2025 – Lansdowne Industrial July 21 – Carry Drive, Dunmore Plaza and Park Plaza July 23 – Northpointe Town Centre Section 7.3, 'Transactions' Annual FFO** per unit 1 growth (fully diluted) 4% to 6% Growth for the year ended December 31, 2023 was 0.5% Growth for the year ended December 31, 2024 was 6.5% Section 9.2, 'FFO** and AFFO**' Annual Distribution Growth 2% to 4% In November 2022 announced a 2.5% increase In November 2023 announced a 2.4% increase In November 2024 announced a 2.4% increase Section 10.6, 'Unit Equity and Distributions' Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures'. of the MD&A. 1 Per weighted average units outstanding calculated on a diluted basis, assuming the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, 'Unit Equity and Distributions'. of the MD&A. Article content See Section 2, 'Forward-Looking Statements and Financial Outlook' of the MD&A for a description of the material factors, assumptions, risks and uncertainties that could impact the financial outlook statements. Article content Select Financial and Operational Metrics Article content As at or for the three months ended June 30, 2025 2024 Change (in '000s of Canadian dollars unless otherwise indicated) (unaudited) Number of investment properties 37 38 (1 ) Gross leasable area (in millions of square feet) (at Primaris' share) 14.8 12.4 2.4 Long-term in-place occupancy 84.8 % 90.1 % (5.3 )% In-place occupancy 88.8 % 93.0 % (4.2 )% Committed occupancy 90.5 % 94.4 % (3.9 )% Weighted average net rent per occupied square foot*, 1 $ 28.88 $ 25.21 $ 3.67 Weighted average lease term (in years) 4.0 4.3 (0.3 ) Same stores sales productivity *,1 $ 784 $ 613 $ 171 Total assets $ 4,953,932 $ 3,960,092 $ 993,840 Total liabilities $ 2,621,885 $ 1,820,248 $ 801,637 Total rental revenue $ 150,760 $ 120,010 $ 30,750 Cash flow from (used in) operating activities $ 53,577 $ 44,717 $ 8,860 Distributions per Trust Unit $ 0.215 $ 0.210 $ 0.005 Cash Net Operating Income** ('Cash NOI') $ 83,971 $ 67,379 $ 16,592 Same Properties 2 Cash NOI** growth 3 5.5 % 2.0 % n/a Net income (loss) $ 50,379 $ 42,246 $ 8,133 Net income (loss) per unit 4 $ 0.396 $ 0.400 $ (0.004 ) Funds from Operations** ('FFO') per unit 4 – average diluted $ 0.445 $ 0.422 $ 0.023 FFO** per unit growth 5.5 % 6.8 % n/a FFO Payout Ratio** 5 52.6 % 52.2 % 0.4 % Adjusted Funds from Operations** ('AFFO') per unit 4 – average diluted $ 0.690 $ 0.558 $ 0.132 AFFO** per unit growth 24.6 % 3.7 % n/a AFFO Payout Ratio** 5 67.5 % 78.8 % (11.3 )% Weighted average units outstanding 4 – diluted (in thousands) 122,841 106,852 15,989 Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' in the MD&A. * Supplementary financial measure. See 'Use of Operating Metrics'. See also Section 1, 'Basis of Presentation' – 'Use of Operating Metrics' in the MD&A. 1 For the rolling twelve-months ended May 31, 2025 and May 31, 2024, respectively. 2 Properties owned throughout the entire 18 months ended June 30, 2025, excluding properties under development or major redevelopment, are referred to as 'Same Properties'. 3 Prior period amounts not restated for current period property categories. 4 Per unit calculations, outstanding units and weighted average diluted units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, 'Unit Equity and Distributions' in the MD&A. 5 Distributions declared per unit used in calculating the FFO* and AFFO* Payout Ratios include distributions declared on Exchangeable Preferred LP Units. See Section 10.6, 'Unit Equity and Distributions'. Article content Select Financial and Operational Metrics (continued) Article content As at or for the three months ended June 30, 2025 2024 Change (in '000s of Canadian dollars unless otherwise indicated) (unaudited) Net Asset Value** ('NAV') per unit outstanding 1 $ 21.43 $ 22.04 $ (0.61 ) Average Net Debt** to Adjusted EBITDA** 2 5.8x 5.7x 0.1x Interest Coverage** 2,3 3.0x 3.2x (0.2)x Liquidity * $ 584,049 $ 690,756 $ (106,707 ) Unencumbered assets $ 4,433,622 $ 3,348,494 $ 1,085,128 Unencumbered assets to unsecured debt 2.4x 2.8x (0.4)x Secured debt as a percent of Total Debt** 12.0 % 21.5 % (9.5 )% Total Debt** to Total Assets** 2 42.0 % 38.6 % 3.4 % Fixed rate debt as a percent of Total Debt** 96.1 % 98.7 % (2.6 )% Weighted average term to debt maturity – Total Debt** (in years) 4.4 3.2 1.2 Weighted average interest rate of Total Debt** 5.17 % 5.19 % (0.02 )% Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' in the MD&A. * Supplementary financial measure. See 'Use of Operating Metrics'. See also Section 1, 'Basis of Presentation' – 'Use of Operating Metrics' in the MD&A. 1 Units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, 'Unit Equity and Distributions' in the MD&A. 2 For the rolling four-quarters ended June 30, 2025 and 2024, respectively. 3 Calculated on the basis described in the trust indenture and supplemental indentures that govern the Trust's senior unsecured debentures (collectively, the 'Trust Indentures'). See Section 10.4, 'Capital Structure' in the MD&A. Article content For the three months ended June 30, 2025 2024 Change (in '000s of Canadian dollars except per unit amounts) (unaudited) Contribution per unit 1 Contribution per unit 1 Contribution per unit 1 NOI** from: Same Properties 2 $ 64,666 $ 0.526 $ 62,813 $ 0.588 $ 1,853 $ 0.017 Acquisitions 18,934 0.155 79 0.001 18,855 0.176 Dispositions 45 — 5,308 0.050 (5,263 ) (0.049 ) Property under redevelopment 1,858 0.015 1,781 0.017 77 0.001 Interest and other income 1,400 0.012 1,541 0.014 (141 ) (0.001 ) Net interest and other financing charges (excluding distributions on Exchangeable Preferred LP Units) (25,263 ) (0.206 ) (20,022 ) (0.187 ) (5,241 ) (0.049 ) General and administrative expenses (net of internal costs for leasing activity) (6,759 ) (0.055 ) (5,938 ) (0.056 ) (821 ) (0.008 ) Amortization (219 ) (0.002 ) (494 ) (0.005 ) 275 0.003 Impact from variance of units outstanding — — — — — (0.067 ) FFO** and FFO** per unit – average diluted 1 $ 54,662 $ 0.445 $ 45,068 $ 0.422 $ 9,594 $ 0.023 FFO** per unit growth $ 5.5 % Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Per weighted average diluted unit. Weighted average units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, 'Unit Equity and Distributions' of the MD&A. 2 Properties owned throughout the entire 18 months ended June 30, 2025, excluding properties under development or major redevelopment, are referred to as 'Same Properties'. Per unit calculations separate the impact of change in contribution from the change in the weighted average diluted units outstanding. Article content Operating Results (continued) Article content FFO** for the three months ended June 30, 2025 was $0.023 per unit, or 5.5%, higher than the same period of the prior year. The increase was driven by growth in NOI** from Same Properties of $0.017 per unit and NOI** attributable to Acquisitions of $0.176 per unit. NOI** for the three months ended June 30, 2025 included a $2.5 million contribution from the recovery of property taxes from prior years (2024 – nil). Excluding this amount, FFO** per unit would have been $0.434, 2.8% higher than the same period of the prior year. Article content Same Properties Cash NOI** for the three month ended June 30, 2025 was $3.3 million, or 5.5%, higher than the same period of the prior year. Same Properties shopping centres Cash NOI** increased $3.2 million, or 5.7%, over the same period of the prior year. The increase in Same Properties shopping centres' Cash NOI** was primarily driven by higher revenues from base rent and net operating cost recoveries, partially offset by declines in percentage rent in lieu of base rent. Article content Excluding the recovery of property taxes from prior years and the change in bad debt expense, the Same Properties shopping centres Cash NOI** growth would have been 4.0%. Article content Redevelopment projects contributed $1.4 million of incremental rent to the portfolio during the quarter (see Section 7.4, 'Redevelopment and Development' of the MD&A). Article content The table below illustrates the composition of AFFO** and the drivers of the change for the three months ended June 30, 2025 as compared to the same period in 2024. Article content For the three months ended June 30, 2025 2024 Change (in '000s of Canadian dollars except per unit amounts) (unaudited) Contribution per unit 1 Contribution per unit 1 Contribution per unit 1 FFO** $ 54,662 $ 0.445 $ 45,068 $ 0.422 $ 9,594 $ 0.090 Internal expenses for leases (2,381 ) (0.019 ) (1,867 ) (0.018 ) (514 ) (0.005 ) Straight-line rent (1,317 ) (0.011 ) (1,707 ) (0.016 ) 390 0.004 Recoverable and non-recoverable costs (3,414 ) (0.028 ) (5,022 ) (0.047 ) 1,608 0.015 Tenant allowances and leasing costs (5,275 ) (0.043 ) (6,990 ) (0.065 ) 1,715 0.016 Impact from variance of units outstanding — — — — — (0.052 ) AFFO** and AFFO** per unit – average diluted 1 $ 42,275 $ 0.344 $ 29,482 $ 0.276 $ 12,793 $ 0.068 AFFO** per unit growth 24.5 % Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Per weighted average diluted unit. Weighted average units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, 'Unit Equity and Distributions' of the MD&A. Article content Occupancy and Leasing Results Article content Primaris' leasing activities are focused on driving value by actively managing the tenant and merchandising mix at its investment properties. In-place occupancy decreased 4.2% from June 30, 2024 to 88.8% at June 30, 2025. The decreases were primarily due the impact of the five disclaimed HBC locations. In addition, Lime Ridge Mall was acquired with in-place occupancy of only 78.4%. Article content As at 2025 Count In-place Occupancy June 30, 2025 December 31, 2024 June 30, 2024 Shopping centres 1 22 89.7 % 94.3 % 92.4 % Other properties 2 9 94.6 % 91.1 % 92.1 % Same Properties in-place occupancy 3 31 90.2 % 93.9 % 92.4 % Acquisitions 4 5 83.6 % 99.0 % n/a Property under redevelopment 5 1 96.5 % 96.5 % 99.3 % In-place occupancy excluding dispositions 37 88.8 % 94.4 % 92.6 % Dispositions 6 — 95.9 % 96.5 % In-place occupancy 88.8 % 94.5 % 93.0 % Same Properties average in-place occupancy Three months ended 31 91.7 % 93.3 % 91.8 % Year to date 31 92.5 % 92.4 % 91.8 % Article content 1 Shopping centres classified as Same Properties include 21 enclosed malls and 1 open air centre, Highstreet Shopping Centre in Abbotsford, BC. 2 Other properties classified as Same Properties include 6 plazas, and 3 office buildings. 3 Properties owned throughout the entire 18 months ended June 30, 2025, excluding properties under development or major redevelopment, are referred to as 'Same Properties'. 4 Acquisitions includes 4 enclosed malls and one professional centre (see Section 7.3, 'Transactions'). 5 Northland in Calgary, Alberta. 6 Dispositions represents the sales of properties in 2025 and 2024 (see Section 7.3, 'Transactions'). Article content In the quarter, Primaris completed 191 leasing deals totaling 0.6 million square feet. The weighted average spread on renewing rents* (for the 122 leases renewed in the quarter) was 6.7% (6.7% for commercial retail unit renewals and 6.5% for large format renewals). Article content Robust Liquidity and Differentiated Financial Model Article content 'Primaris has achieved its acquisition target of acquiring over $1 billion in assets, while maintaining industry leading leverage metrics,' said Rags Davloor, Chief Financial Officer. 'With unencumbered assets of $4.4 billion and no debt maturing until 2027, we have reduced refinancing risk, with significant access to liquidity. Our commitment to maintaining an extremely well capitalized balance sheet positions Primaris very well to capitalize on future opportunities.' Article content The following table summarizes key metrics relating to Primaris' unencumbered assets and unsecured debt. Article content ($ thousands) (unaudited) As at Target Ratio June 30, 2025 December 31, 2024 Change Unencumbered assets – number 30 31 (1 ) Unencumbered assets – value $ 4,433,622 $ 3,646,922 $ 786,700 Unencumbered asset value as a percentage of the investment properties' value 91.2 % 89.7 % 1.5 % Secured debt to Total Debt** <40% 12.0 % 14.7 % (2.7 )% Unsecured Debt $ 1,831,497 $ 1,468,120 $ 363,377 Unencumbered assets to unsecured debt 2.4x 2.5x (0.1x) Unencumbered assets in excess of unsecured debt $ 2,602,125 $ 2,178,802 $ 423,323 Percent of Cash NOI** generated by unencumbered assets 89.1 % 86.1 % 3.0 % Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. Article content Liquidity* at quarter end was $584.0 million, or 28% of Total Debt**. Article content Primaris' NAV** per unit outstanding at quarter end was $21.43. Article content Subsequent Events Article content Primaris completed the disposition of three strip plazas in Medicine Hat, Alberta for proceeds of $12.7 million before transaction costs and the disposition of Northpointe Town Centre, an open air plaza in Calgary, Alberta, for proceeds of $54.5 million before transaction costs to bring the total proceeds from dispositions in fiscal 2025 to $246.1 million before transaction costs. Article content Purchased additional 72,500 Trust Units under its automatic share purchase plan for consideration of $1.1 million as of July 30, 2025, for total NCIB activity since inception of the Trust of 14,271,109 Units repurchased at an average price of $14.26, or a discount to NAV** per unit of approximately 33.5%. Article content Conference Call and Webcast: Article content The call will be accessible for replay until August 7, 2025, by dialing 1-866-813-9403 with access code 962368, or on the Investor Relations section of the website. Article content About Primaris Real Estate Investment Trust Article content Primaris is Canada's only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 14.8 million square feet, valued at approximately $4.9 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. Article content Forward-Looking Statements and Financial Outlook Article content 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 annual growth of Same Properties Cash NOI**, expected future distributions, expected benefits from the Trust's normal course issuer bid activity, future acquisition and disposition activity, the Trust's targets for managing its financial condition and the financing of eligible green projects. 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 Annual MD&A, as updated by the MD&A, which are each 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. Article content Certain forward-looking information included in this news release may also be considered 'financial outlook' for purposes of applicable securities law, including statements under the heading '2025 Financial Outlook'. Financial outlook about the Trust's prospective results of operations including, without limitation, anticipated FFO** per unit, anticipated Cash NOI** and Same Properties Cash NOI** growth, impact on rental revenue of contractual rent-steps, anticipated general and administrative expenses, anticipated operating capital expenditures, anticipated redevelopment capital expenditures, anticipated straight-line rent adjustment to revenue, anticipated occupancy, and the Trust's December 2027 targets for a number of key metrics, including in-place occupancy, annual Same Properties Cash NOI** growth, acquisition and disposition activity, annual FFO** per unit growth and annual distribution growth, is subject to the same assumptions, risk factors, limitations and qualifications as set forth in the Annual MD&A, as updated by the MD&A, and the Trust's annual information form. The Trust and management believe that such financial outlook has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, this information is subjective and subject to numerous risks. Financial outlook contained in this news release was provided for the purpose of providing further information about the Trust's prospective financial performance and readers are cautioned that it should not be used for other purposes. Article content Readers are also urged to examine the Trust's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of Primaris to differ materially from the forward-looking statements and financial outlook contained in this news release. All forward-looking statements and financial outlook in this news release are qualified by these cautionary statements. These forward-looking statements and financial outlook are made as of July 30, 2025 ,and Primaris, except as required by applicable securities laws, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances. Article content Non-GAAP Measures Article content Information in this news release is a select summary of results. This news release should be read in conjunction with the MD&A and the Trust's unaudited interim consolidated financial statements and the accompanying notes for the three and six months ended June 30, 2025 and 2024 (the 'Financial Statements'). Article content The Financial Statements are prepared in accordance with IFRS accounting standards as issued by the IASB, however, in this news release, Primaris also uses a number of measures which do not have a standardized meaning prescribed under generally accepted accounting principles ('GAAP') in accordance with IFRS. These non-GAAP measures, which are denoted in this news release by the suffix '**', include non-GAAP financial measures and non-GAAP ratios, each as defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure ('NI 52-112'). None of these non-GAAP measures should be construed as an alternative to financial measures calculated in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similar measures presented by other real estate entities and should not be construed as an alternative to financial measures determined in accordance with IFRS. A definition of each non-GAAP measure used herein and an explanation of management's reasons as to why it believes the measure is useful to investors can be found in the section entitled 'Non-GAAP Measures' of the MD&A, which section is incorporated by reference into this news release, and a reconciliation to the most directly comparable financial measure in the Financial Statements, in each case, can be found below. The MD&A is available on the Trust's profile on SEDAR+ at Article content Use of Operating Metrics Article content Primaris uses certain operating metrics to monitor and measure the operational performance of its portfolio. Operating metrics in this news release include, among others, weighted average net rent per occupied square foot, weighted average spread on renewing rents, liquidity and same stores sales productivity. These operating metrics, which may constitute supplementary financial measures as defined in NI 52-112, are not derived from directly comparable measures contained in the Financial Statements but may be used by management and disclosed on a periodic basis to depict the historical or future expected operating performance of the Trust's portfolio. For an explanation of the composition of weighted average net rent per occupied square foot, see Section 8.2, 'Weighted Average Net Rent' of the MD&A. For an explanation of weighted average spread on renewing rents, see Section 8.3, 'Leasing Activity' of the MD&A. For an explanation of liquidity, see Section 10.2, 'Liquidity and Unencumbered Assets' of the MD&A. For an explanation of the composition of same store sales productivity, see Section 8.4, 'Tenant Sales' of the MD&A. These supplementary financial measure are denoted in this news release by the suffix '*' Article content Primaris also uses certain non-financial operating metrics to describe its portfolio and portfolio operation performance. Non-financial operating metrics in this news release include, among others, number of investment properties, store count, GLA, in-place occupancy, committed occupancy, long-term in-place occupancy, and weighted average lease term. For the relationship of in-place occupancy to committed occupancy and to long-term in-place occupancy, see Section 8.1, 'Occupancy' of the MD&A. For greater certainty, the portfolio operating metrics in the MD&A include only the Trust's proportionate ownership of the 8 properties held in co-ownerships (see Section 7.2, 'Co-ownership Arrangements' of the MD&A). Article content The following table reconciles NOI** and Cash NOI** to rental revenue and property operating costs as presented in the Financial Statements. Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. Article content The following tables are a further analysis of Cash NOI** above. Article content ($ thousands) (unaudited) Three months For the periods ended June 30, Count 2025 2024 Cash Net Operating Income** from: Shopping centres 22 $ 59,768 $ 56,524 Other properties 9 4,028 3,945 Same Properties Cash NOI** 1 31 63,796 60,469 Same Properties Growth 5.5 % Acquisitions 5 18,397 74 Dispositions 47 5,277 Property under redevelopment 1 1,731 1,559 Cash Net Operating Income** 37 $ 83,971 $ 67,379 Article content For the periods ended June 30, ($ thousands) (unaudited) Three months 2024 2023 Same Properties NOI** $ 64,666 $ 62,813 Exclude: Straight-line rent (692 ) (1,452 ) Lease surrender revenue (178 ) (892 ) Same Properties 1 Cash NOI** 63,796 60,469 Same Properties Growth 5.5 % Cash NOI** from: Acquisitions 18,397 74 Disposition (121 ) 5,277 Property under redevelopment 1,731 1,559 Cash NOI** $ 83,803 $ 67,379 Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. Also see Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Properties owned throughout the entire 18 months ended June 30, 2025, excluding properties under development or major redevelopment, are referred to as 'Same Properties'. Article content The following table illustrates the reconciliation of net income, as determined in accordance with GAAP, to FFO**. Article content For the periods ended June 30, ($ thousands except per unit amounts) (unaudited) Three months 2025 2024 Net income (loss) $ 81,526 $ 88,127 Reverse: Distribution on Exchangeable Preferred LP Units 12,270 6,150 Amortization of real estate assets 70 — Adjustments to fair value of derivative instruments 1 (373 ) (1,927 ) Adjustments to fair value of unit-based compensation (977 ) (417 ) Adjustments to fair value of Exchangeable Preferred LP Units (12,862 ) 458 Adjustments to fair value of income producing properties 22,811 (9,886 ) Internal costs for leasing activity 2 4,829 4,041 Funds from Operations** $ 107,363 $ 86,546 FFO** per unit 3 – average basic $ 0.894 $ 0.818 FFO** per unit 3 – average diluted $ 0.884 $ 0.810 FFO Payout Ratio** 4 – Target 45% – 50% 52.7 % 54.2 % Distributions declared per Trust Unit $ 0.215 $ 0.210 Weighted average units outstanding 3 – basic (in thousands) 121,455 105,754 Weighted average units outstanding 3 – diluted (in thousands) 121,411 106,882 Number of units outstanding 3 – end of period (in thousands) 127,160 105,503 Article content ** Denotes a non-GAAP measure. See Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 The definition of FFO*, as provided by REALPAC, allows for the changes in fair value of financial instruments which are economically effective hedges to be excluded from the calculation of FFO*. 2 Costs relating to full-time leasing and legal staff, included in general and administrative expenses, that can be reasonable and directly attributed to signed leases, and the would otherwise be capitalized if incurred from external sources 3 Per unit calculations, payout ratio calculations, units outstanding and weighted average units outstanding assumes the exchange of Exchangeable Preferred LP Units for Trust Units. See Section 10.6, 'Unit Equity and Distributions' of the MD&A. 4 Distributions declared per unit used in calculating the FFO* and AFFO* Payout Ratios include distributions declared on Exchangeable Preferred LP Units. See Section 10.6, 'Unit Equity and Distributions'. Article content The following table illustrates the reconciliation of FFO** to AFFO**. Article content For the periods ended June 30, ($ thousands except per unit amounts) (unaudited) Three months 2025 2024 Funds from Operations** $ 54,662 $ 45,068 Reverse: Internal costs for leasing activity (2,381 ) (1,867 ) Straight-line rent (1,317 ) (1,707 ) Deduct: Recoverable and non-recoverable costs (3,414 ) (5,022 ) Tenant allowances and external leasing costs (5,275 ) (6,990 ) Adjusted Funds from Operations** $ 42,275 $ 29,482 AFFO** per unit 1 – average basic $ 0.348 $ 0.279 AFFO** per unit 1 – average diluted $ 0.344 $ 0.276 AFFO Payout Ratio** 2 68.0 % 79.7 % Distributions declared per Trust Unit $ 0.215 $ 0.210 Weighted average units outstanding 1 – basic (in thousands) 121,455 105,754 Weighted average units outstanding 1 – diluted (in thousands) 122,841 106,852 Number of units outstanding 1 – end of period (in thousands) 127,160 105,503 Article content ** Denotes a non-GAAP measure. See :Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Per unit calculations. payout ratio calculations, units outstanding and weighted average units outstanding assumes the exchange of Exchangeable Preferred LP Units to Trust Units. See Section 10.6, 'Unit Equity and Distributions' of the MD&A. 2 Distributions declared per unit used in calculating the FFO* and AFFO* Payout Ratios include distributions declared on Exchangeable Preferred LP Units. See Section 10.6, 'Unit Equity and Distributions'. Article content The following table illustrates the calculation of NAV** per unit outstanding and Total Debt** to Total Assets**. Article content ($ thousands) (unaudited) As at June 30, 2025 December 31, 2024 Change Investment properties $ 4,466,534 $ 3,826,635 $ 639,899 Investment properties classified as held for sale 397,416 239,933 157,483 Cash and cash equivalents 84,436 86,090 (1,654 ) Term deposit — 100,000 (100,000 ) Other assets 5,546 14,774 (9,228 ) Total assets $ 4,953,932 $ 4,267,432 $ 686,500 Mortgages payable $ 249,685 $ 252,023 $ (2,338 ) Senior unsecured debentures 1,700,000 1,433,120 266,880 Unsecured credit facilities 131,497 35,000 96,497 Total Debt** $ 2,081,182 $ 1,720,143 $ 361,039 Deferred financing costs and debt discounts (net of accumulated amortization) excluded from Total Debt** (10,235 ) (9,269 ) (966 ) Exchangeable Preferred LP Units 392,048 239,622 152,426 Other liabilities 158,890 155,987 2,903 Total liabilities $ 2,621,885 $ 2,106,483 $ 515,402 Unitholders' equity $ 2,332,047 $ 2,160,949 $ 171,098 Add: Exchangeable Preferred LP Units 392,048 239,622 152,426 Add: Obligation for purchase of Trust Units under automatic share purchase plan 1 1,047 5,199 (4,152 ) Net Asset Value** $ 2,725,142 $ 2,405,770 $ 319,372 NAV** per unit outstanding $ 21.43 $ 21.55 $ (0.12 ) Number of units outstanding 2 – end of period (in thousands) 127,160 111,614 15,546 Total Debt** to Total Assets** 3 42.0 % 40.3 % 1.7 % Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A 1 Liability recorded for the obligation to purchase Trust Units during the blackout period after June 30, 2025 under the automatic share purchase plan, but respective Trust Units were not yet cancelled. 2 Number of, units outstanding assumes the exchange of Exchangeable Preferred LP Units to Trust Units. See Section 10.6, 'Unit Equity and Distributions' of the MD&A. 3 This ratio is a non-GAAP ratio calculated on the basis described in the Trust Indentures. Article content The following table illustrates the calculation of Average Net Debt** to Adjusted EBITDA**, Interest Coverage** and Debt Service Coverage** ratios. The below ratios are calculated on a rolling four-quarters basis. Article content ($ thousands) (unaudited) 2025 2024 Change For the rolling four-quarters ended June 30, Adjusted EBITDA** $ 288,350 $ 232,196 $ 56,154 Average Net Debt** $ 1,684,217 $ 1,326,881 $ 357,336 Average Net Debt** to Adjusted EBITDA** 3 Target 4.0x – 6.0x 5.8x 5.7x 0.1x Interest expense 1 $ 95,748 $ 71,610 $ 24,138 Interest Coverage** 2,3 3.0x 3.2x (0.2)x Principal repayments $ 4,886 $ 6,410 $ (1,524 ) Interest expense 1 $ 95,748 $ 71,610 $ 24,138 Debt Service Coverage** 2.9x 3.0x (0.1)x Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Interest expense includes interest on senior unsecured debentures, mortgages, and unsecured credit facilities. See Section 9.1, 'Components of Net Income (Loss)' of the MD&A. 2 Calculated on the basis described in the Trust Indentures. 3 For the rolling four-quarters ended June 30, 2025 and 2024, respectively. Article content The following table illustrates the reconciliation of net income (loss) to Adjusted EBITDA** for the three months ending June 30, 2025 and 2024. Article content ($ thousands) (unaudited) Three months For the periods ended June 30, 2025 2024 Net income (loss) $ 50,379 $ 42,246 Interest income 1 (341 ) (927 ) Net interest and other financing charges 31,854 23,097 Amortization of other assets 289 494 Adjustments to fair value of derivative instruments (434 ) 912 Adjustments to fair value of unit-based compensation (291 ) (453 ) Adjustments to fair value of Exchangeable Preferred LP Units (4,352 ) (5,827 ) Adjustments to fair value of land held for development — — Adjustments to fair value of investment properties 318 3,248 Adjusted EBITDA** $ 77,422 $ 62,790 Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. 1 Interest income earned on cash balances. Article content The following tables illustrate Adjusted EBITDA** for the rolling four-quarters ended June 30, 2025 and 2024. Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. Article content The following tables illustrate Average Net Debt** for the periods ended June 30, 2025 and 2024 based on the average of the Net Debt** at the beginning of the period and each quarter end during the period included in the calculation of Adjusted EBITDA**. Article content ** Denotes a non-GAAP measure. See 'Non-GAAP Measures'. See also Section 1, 'Basis of Presentation' – 'Use of Non-GAAP Measures' and Section 12, 'Non-GAAP Measures' of the MD&A. Article content The following tables illustrate interest expense, for the calculation of the Interest Coverage** and Debt Service Coverage** ratios, for rolling-four quarters ended June 30, 2025 and 2024. Article content ($ thousands) (unaudited) Rolling 4-quarters For the periods June 30, 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Interest expense 1 $ 71,610 20,204 19,334 17,161 14,911 Article content 1 Interest expense includes interest on senior unsecured debentures, mortgages, and unsecured credit facilities. See Section 9.1, 'Components of Net Income (Loss)' of the MD&A. Article content The following tables illustrate principal repayments, for the calculation of the Debt Service Coverage** ratio, for the rolling four-quarters ended June 30, 2025 and 2024. Article content Article content Article content Article content Article content Contacts Article content Alex Avery Chief Executive Officer 416-642-7837 aavery@ Rags Davloor Chief Financial Officer 416-645-3716 rdavloor@ Claire Mahaney VP, Investor Relations & ESG 647-949-3093 cmahaney@ Timothy Pire Chair of the Board chair@
Business Times
08-07-2025
- Business
- Business Times
GuocoLand secures S$619.3 million green loan for River Valley Green development
[SINGAPORE] GuocoLand has secured a S$619.3 million green club facility on Tuesday (Jul 8) to finance the acquisition and development of its upcoming River Valley Green (Parcel B) project – a high-end residential development located in Singapore's prime District 9. The green loan was jointly provided by UOB, Bank of China's Singapore branch and OCBC under GuocoLand's Green Finance Framework. This is the latest in a string of green financing initiatives the developer has tapped for its portfolio of integrated and sustainable developments. The 99-year leasehold site, awarded to GuocoLand in February 2025, is strategically located next to Great World MRT station on the Thomson-East Coast Line. Spanning 11,736 square metres, the site offers direct access to Kim Seng Park and the Singapore River. The development will feature about 455 residential units across two towers, as well as commercial shops on the ground floor. Dora Chng, GuocoLand's residential director, said: 'With direct connectivity to the Thomson-East Coast Line, residents of the future development at River Valley Green will have convenient access to all parts of Singapore, in addition to enjoying the wide selection of shopping and dining options right at their doorstep.' She added: 'Residents can also look forward to scenic views of the city and of Singapore River, as well as GuocoLand's signature features such as lush landscaping and efficient, generous layouts that enhance the liveability of the development.' Upon completion, the development is set to achieve the Building and Construction Authority's Green Mark Platinum (Super Low Energy) certification with Maintainability Badge, which signifies a building's exceptional energy efficiency and commitment to sustainable design, construction and operation, with a focus on ease of maintenance. This project adds to GuocoLand's expanding pipeline of green-certified developments. The developer has already secured green financing for its integrated mixed-use projects such as Guoco Tower and Guoco Midtown, and high-end residences including Lentor Modern, Lentor Mansion, and the upcoming Springleaf Residence and Faber Walk development.
ME Construction
25-06-2025
- Business
- ME Construction
EMSTEEL receives a provisional ESG rating of ‘AA' from MSCI
Sustainability EMSTEEL receives a provisional ESG rating of 'AA' from MSCI By The rating is a significant milestone and follows the announcement of EMSTEEL's Green Finance Framework in May 2025 EMSTEEL said it has received a provisional ESG rating of 'AA' from MSCI, said to be one of the highest among steel players globally. This recognition underscores EMSTEEL's performance in Environmental, Social, and Governance (ESG) issues, making it one of the few global steel and building materials manufacturers that excel in this regard, the firm said. MSCI's evaluation reinforces EMSTEEL's position as the industry player in managing key ESG risks and opportunities. The evaluation particularly highlights the group's innovative responsible practices in managing its environmental impact, which have led to significant reductions in carbon emissions. Additionally, EMSTEEL's well-being, health, and safety practices for its workforce have been enhanced, with almost all categories surpassing the global average, said a statement. MSCI ESG Ratings evaluates over 9,000 companies worldwide, assessing their exposure to industry-related material ESG risks and their management compared to their peers. The ratings range from leader (AAA, AA) to laggard (B, CCC), with the average rating being A, BBB, or BB. The score is said to reaffirm MSCI's global leadership in ESG ratings. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL said, 'Our inaugural 'AA' ESG rating by MSCI is a powerful testament to EMSTEEL's commitment to sustainable industrial leadership. It reflects the strength of our governance, the resilience of our people, and our deep-rooted responsibility to the environment and communities we serve. As we align with the UAE's Net Zero 2050 vision, this recognition strengthens our resolve to lead by example, delivering lasting value to our shareholders, society, and future generations.' The rating is a significant milestone and follows the announcement of EMSTEEL's Green Finance Framework in May 2025. The development of this framework was supported by key partners, including ING as the lead sustainability structuring bank and First Abu Dhabi Bank (FAB) as the sustainability structuring bank. ING also served as the ESG Rating Advisor for the MSCI ESG rating. The framework is said to be a cornerstone of EMSTEEL's broader ESG strategy. EMSTEEL's decarbonisation strategy is said to be driving industrial sustainability. The group aims to reduce emissions by 40% in its Steel Business Unit and 30% in its Cement Business Unit by 2030, using 2019 as the baseline year. This commitment is unwavering, and EMSTEEL is firmly committed to achieving Net Zero emissions by 2050. Key initiatives include enhancing energy efficiency, integrating renewable energy, and advancing green hydrogen innovation. These initiatives are all in alignment with the UAE's Net Zero 2050 agenda, the firm said. In 2023, EMSTEEL reported total Scope 1 and 2 emissions of 4.5m tonnes of CO₂, representing a 23% reduction from the 2019 baseline. This achievement earned the group global recognition for its sustainability leadership. EMSTEEL's efforts in decarbonising steel production were recognised by the World Steel Association, which named them the 2024 Steel Sustainability Champion. The World Economic Forum also recognised EMSTEEL's contributions to decarbonising the iron and steel industry, placing them among the top five steel companies worldwide that have received this recognition. In September 2024, EMSTEEL was appointed as Co-Chair of the Alliance for Industry Decarbonization (AFID), led by the International Renewable Energy Agency (IRENA), the statement concluded.
Yahoo
23-06-2025
- Business
- Yahoo
Primaris REIT Announces Successful $200 Million Unsecured Green Debenture Offering
TORONTO, June 23, 2025 /CNW/ - Primaris Real Estate Investment Trust ("Primaris" or the "Trust") (TSX: announced today that it has priced a private placement (the "Offering") of $200 million aggregate principal amount of senior unsecured debentures (the "Debentures") maturing June 25, 2033. The Debentures are being offered in each of the provinces of Canada by a syndicate of agents led by Desjardins Capital Markets, CIBC Capital Markets and Scotia Capital Inc. which includes TD Securities Inc., RBC Dominion Securities Inc., National Bank Financial Inc., BMO Capital Markets, Canaccord Genuity Corp. and Raymond James Ltd. The Debentures will be issued at a price of $1,000 per $1,000 principal amount and bear interest at a fixed annual rate of 4.835% per annum, payable in equal semi-annual instalments in arrears on June 25 and December 25 in each year, commencing on December 25, 2025 until maturity, unless redeemed at an earlier date. Inclusive of bond forward hedges, the Trust's all-in interest rate will be approximately 4.924% per annum. The Debentures will be direct senior unsecured obligations of the Trust and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust, except to the extent prescribed by law. The Debentures have been assigned a provisional rating by DBRS of BBB (high). Primaris intends to use the net proceeds from the Offering to fund the financing of eligible green projects ("Eligible Green Projects") as described in the Trust's June 2025 Green Finance Framework. Prior to allocation of the net proceeds of the Offering to Eligible Green Projects, the net proceeds may be initially used for repayment of short-term debt, credit facilities, or held in cash or cash equivalents. The closing of the Offering is expected to take place on or about June 25, 2025. The Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities law and may not be offered or sold in the United States and, accordingly, may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful. About Primaris Primaris is Canada's only enclosed shopping centre focused REIT, with ownership interests primarily in leading enclosed shopping centres located in growing Canadian markets. The portfolio totals 15.0 million square feet, valued at approximately $4.9 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 Information 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: the terms of the Debentures, the date of closing, the use of proceeds from the Offering and the effect of bond forward hedges. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in Primaris' management's discussion and analysis and annual information form for the year ended December 31, 2024, which are 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. TSX: SOURCE Primaris Real Estate Investment Trust View original content to download multimedia: Sign in to access your portfolio
Cision Canada
23-06-2025
- Business
- Cision Canada
Primaris REIT Announces Successful $200 Million Unsecured Green Debenture Offering
TORONTO, June 23, 2025 /CNW/ - Primaris Real Estate Investment Trust ("Primaris" or the "Trust") (TSX: announced today that it has priced a private placement (the "Offering") of $200 million aggregate principal amount of senior unsecured debentures (the "Debentures") maturing June 25, 2033. The Debentures are being offered in each of the provinces of Canada by a syndicate of agents led by Desjardins Capital Markets, CIBC Capital Markets and Scotia Capital Inc. which includes TD Securities Inc., RBC Dominion Securities Inc., National Bank Financial Inc., BMO Capital Markets, Canaccord Genuity Corp. and Raymond James Ltd. The Debentures will be issued at a price of $1,000 per $1,000 principal amount and bear interest at a fixed annual rate of 4.835% per annum, payable in equal semi-annual instalments in arrears on June 25 and December 25 in each year, commencing on December 25, 2025 until maturity, unless redeemed at an earlier date. Inclusive of bond forward hedges, the Trust's all-in interest rate will be approximately 4.924% per annum. The Debentures will be direct senior unsecured obligations of the Trust and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust, except to the extent prescribed by law. The Debentures have been assigned a provisional rating by DBRS of BBB (high). Primaris intends to use the net proceeds from the Offering to fund the financing of eligible green projects ("Eligible Green Projects") as described in the Trust's June 2025 Green Finance Framework. Prior to allocation of the net proceeds of the Offering to Eligible Green Projects, the net proceeds may be initially used for repayment of short-term debt, credit facilities, or held in cash or cash equivalents. The closing of the Offering is expected to take place on or about June 25, 2025. The Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities law and may not be offered or sold in the United States and, accordingly, may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful. About Primaris Primaris is Canada's only enclosed shopping centre focused REIT, with ownership interests primarily in leading enclosed shopping centres located in growing Canadian markets. The portfolio totals 15.0 million square feet, valued at approximately $4.9 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 Information 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: the terms of the Debentures, the date of closing, the use of proceeds from the Offering and the effect of bond forward hedges. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in Primaris' management's discussion and analysis and annual information form for the year ended December 31, 2024, which are 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.
