Primaris REIT Announces Strong Q3/25

Quarterly Financial and Operating Results Highlights

• $159.2 million total rental revenue (net of $2.0 million negative impact from HBC);
• $794 per square foot total same store sales productivity;
• +0.7% Same Properties Cash Net Operating Income** ("Cash NOI") growth, or +1.7% adjusting for a $0.6 million operating cost accrual adjustment, or +2.1% excluding the impact from disclaimed HBC locations;
• 92.8% committed occupancy, 91.8% in-place occupancy (including vacancy from HBC locations of 532,000 square feet, or approximately 3.7%,) and 85.1% long-term in-place occupancy;
• +5.3% weighted average spread on renewing rents* across 335,000 square feet;
• +5.7% Funds from Operations** ("FFO") per average diluted unit growth to $0.443; (net of $0.016 per unit negative impact from disclaimed HBC locations);
• 52.6% FFO Payout Ratio** (assuming exchange of all Exchangeable Preferred LP Units 48.5%;
• $40.9 million in net income;
• $4.9 billion total assets;
• 5.9x Average Net Debt** to Adjusted EBITDA**;
• $617.6 million in liquidity*;
• $4.4 billion in unencumbered assets; and
• $21.58 Net Asset Value** ("NAV") per unit outstanding.

Business Update Highlights

• Announces 2026 guidance with an anticipated Same Properties Cash NOI** growth of 1.0% to 3.0%, occupancy of 86% to 88%, Cash NOI** of $385 to $395 million, and FFO** per unit fully diluted of $1.83 to $1.88;
• Reiterates 2025 guidance for Same Properties Cash NOI** growth of 4.0% to 5.0%, Cash NOI** of $352 to $357 million, FFO** per unit fully diluted to $1.78 to $1.82, and updates occupancy to 85% to 87%;
• Entered into leases at three locations with disclaimed HBC spaces, including Promenades St-Bruno which was acquired on October 10, 2025, with anticipated tenant possession to occur in the first quarter of 2026;
• Disposed of three strip plazas in Medicine Hat, Alberta and an open air plaza in Calgary, Alberta;
• Purchased for cancellation 353,500 Trust Units under the Trust's NCIB program for proceeds of $5.3 million at an average price per unit of approximately $15.18, representing a discount to NAV** per unit of approximately 29.7%;
• Developed 2026-2028 Sustainability strategic plan, following completion of the 2023-2025 plan;
• Completed third annual GRESB submission achieving a score of 3 green stars, a 4 point improvement to 84;
• Received Sector Leader status in the 2025 GRESB Real Estate Assessment Standing Investments Benchmark;
• On October 10, 2025, Primaris acquired Promenades St-Bruno in Montreal, Quebec for aggregate cash consideration of $482.1 million and issued 11,448,599 Trust Units at a price of $14.75 per unit;
• On October 9, 2025, Primaris issued $250 million aggregate principal amount of Series I senior unsecured green debentures maturing October 9, 2030, bearing interest at a fixed annual rate of 3.845% per annum;
• On October 28, 2025, disclaimer notices for all remaining HBC leases were received, with a disclaimer date of November 27, 2025; and
• On October 29, 2025, the Board of Trustees approved management's recommendation to increase the distribution rate from $0.86 to $0.88 per unit per annum, or 2.3%.

"Our shopping centre portfolio continues to perform well with strong rental revenue growth and robust leasing momentum," said Patrick Sullivan, President and Chief Operating Officer. "Tenant demand across our portfolio is very strong, including demand for our HBC boxes. We are in advanced discussions with strong covenant, high-quality national retailers, including large format tenants and anticipate tenants to take possession early in 2026."

“With the October acquisition of Promenade St-Bruno, Primaris’ high quality acquisitions now exceed $3.3 billion since 2021. All of these acquisitions offer strong NOI growth potential and significant excess land,” said Alex Avery, Chief Executive Officer. “We have materially expanded and enhanced the overall quality of our enclosed shopping centre portfolio, driving the portfolio’s proforma annual same store sales productivity to $800 per square foot. Disciplined capital allocation remains a core focus for us, while driving strong financial and operating results, delivering transformative changes to our portfolio."

“Primaris’ differentiated financial model combined with strong growth in same-property NOI, occupancy, leasing spreads and recovery ratios, and expected continued strong growth across these metrics, supports our fifth annual distribution increase,” said Rags Davloor, Chief Financial Officer. “REITs with track records of consistent annual distribution increases have historically delivered above average total returns and been included in exclusive indices that focus on dividend growers.”

2025 Financial Outlook

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 nine months ended September 30, 2025 (the "MD&A")).

Guidance: In addition to its established targets, Primaris has provided guidance for the full year of 2025 in the Annual MD&A. This guidance has been subsequently updated, most recently, in the press release dated October 6, 2025 relating to the Trust's acquisition of Promenades St-Bruno. The most recent previously published guidance for the full year of 2025 is reproduced below and has been updated to reflect management's current expectations based on the most recent information available to management.

** 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.

Primaris has provided guidance for the full year of 2026 as follows:

** 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.

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.

** 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.

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.

Select Financial and Operational Metrics

** 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.
* Supplementary financial measure. See "Use of Operating Metrics". See also Section 1, "Basis of Presentation" - "Use of Operating Metrics" of the MD&A.
¹ For the rolling twelve-months ended August 31, 2025 and August 31, 2024, respectively.
² Properties owned throughout the entire 21 months ended September 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" of 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" of the MD&A.
⁶ Calculated as if all the Exchangeable Preferred LP Units were exchanged into Trust Units. See Section 9.2, "FFO** and AFFO**" of the MD&A.

Select Financial and Operational Metrics (continued)

** 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.
* Supplementary financial measure. See "Use of Operating Metrics". See also Section 1, "Basis of Presentation" - "Use of Operating Metrics" of 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" of the MD&A.
² For the rolling four-quarters ended September 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" of the MD&A.

Operating Results

** 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 21 months ended September 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.
³ 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**. The portion of the fair value change to derivatives which did not relate to an economically effective hedge negatively impacted fair value in the period ending September 30, 2024.

FFO** for the three months ended September 30, 2025 was $0.024 per unit, or 5.7%, higher than the same period of the prior year. The increase was driven by NOI** from Acquisitions of $0.242 per unit. These increases were partially offset by a decrease in NOI** of $0.059 per unit from the disposition activity, higher net interest and other financing charges of $0.046 per unit, a $0.011 per unit decrease in NOI** from Same Properties and a $0.092 per unit decrease due to the net change in the weighted average units diluted outstanding (unit issuances for the Acquisitions partially offset by NCIB activity).

FFO** per unit for the three months ended September 30, 2025 was negatively impacted $0.016 per unit by the disclaimed HBC leases. FFO** for the three months ended September 30, 2024 was negatively impacted $0.016 per unit due to the impact of settling an unhedged derivative.

The FFO Payout Ratio** for the three months ended September 30, 2025 of 52.6%. Calculating the ratio as if all of the Exchangeable Preferred LP Units were already exchanged into Trust Units would result in a FFO Payout Ratio of 48.5%, compared to the targeted range of 45% to 50%.

Same Properties Cash NOI** for the three month ended September 30, 2025 was $0.4 million, or 0.7%, higher than the same period of the prior year driven by the performance of the Same Properties shopping centres. The increase in the Same Properties shopping centres' Cash NOI** was primarily driven by higher revenues from base rent and specialty leasing revenue, partially offset by declines in percentage rent in lieu of base rent and net recoveries driven by higher expenses.

The Same Properties shopping centres Cash NOI** was negatively impacted by an adjustment to a prior quarter operating cost accrual for $0.6 million, or 1.0% change over the same period in 2024. The growth was also negatively impacted by $0.8 million from the disclaimed HBC locations. Same Properties growth would have been 1.7% adjusting for the operating cost accrual, and 3.1% adjusting for both the accrual and the impact from HBC.

Redevelopment projects contributed $0.8 million of incremental rent to the portfolio for the three months ended September 30, 2025 (see Section 7.4, "Redevelopment and Development" of the MD&A).

The table below illustrates the composition of AFFO** and the drivers of the change for the three months ended September 30, 2025 as compared to the same period in 2024.