Primaris REIT Announces Strong Q4 and Full Year 2025 Results

Results of 2025 Guidance

The previously published guidance for the full year of 2025 has been reproduced again below and presented against the results achieved for the year ended December 31, 2025.

** 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 Properties owned throughout the entire 24 months ended December 31, 2025, excluding properties under development or major redevelopment, are referred to as "Same Properties".
² Units outstanding and weighted average diluted units outstanding assume the exchange of the preferred units that have been issued by subsidiary limited partnerships of the Trust that, in certain circumstances, are exchangeable in Trust Units (the "Exchangeable Preferred LP Units"). See Section 10.6, "Unit Equity and Distributions" of the MD&A.

2026 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 MD&A.

Guidance: Primaris provided guidance for the full year of 2026 in the management's discussion and analysis for the three and nine months ended September 30, 2025. This guidance was subsequently updated in the management's discussion and analysis for the three months and year ended December 31, 2025. The previously published guidance for the full year of 2026 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 Properties owned throughout the entire 24 months ended December 31, 2026, excluding properties under development or major redevelopment, are referred to as "Same Properties".
² Units outstanding and weighted average units outstanding assumes the exchange of Exchangeable Preferred LP Units into Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A.

In the press release dated September 24, 2024, Primaris released 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 into Trust Units. See Section 10.6, "Unit Equity and Distributions" of the MD&A.

Readers are cautioned that there could be a significant risk that actual results for the year ending December 31, 2026 and the Trust's actual performance against the targets for the period ending December 31, 2027 as set forth above will vary from the financial outlook statements provided in this press release and that such variations may be material.

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 twelve-months ended December, 31, 2025 and December 31, 2024, respectively.
² Properties owned throughout the entire 24 months ended December 31, 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.

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 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. Per unit calculations separate the impact of change in contribution from the change in the weighted average diluted units outstanding.
² Properties owned throughout the entire 24 months ended December 31, 2025, excluding properties under development or major redevelopment, are referred to as "Same Properties".

FFO** for the three months ended December 31, 2025 was $0.053 per unit, or 11.6%, higher than the same period of the prior year. The increase was driven by NOI** from the properties acquired by the Trust since January 1, 2024 (the "Acquisitions") of $0.256 per unit and a $0.033 per unit increase in NOI** from Same Properties. These increases were partially offset by a decrease in NOI** of $0.053 per unit from the disposition activity, higher net interest and other financing charges of $0.060 per unit, and a $0.115 per unit decrease due to the net change in the weighted average diluted units outstanding (unit issuances for the Acquisitions partially offset by NCIB activity).

FFO** for the three months ended December 31, 2025 included a $3.9 million, or $0.028 per unit, contribution from recoveries attributed to prior year impacts, partially offset by a $1.0 million, or $0.007 per unit, negative impact from the HBC closures. FFO** per unit excluding these two impacts would have been $0.492 per unit for the three months ended December 31, 2025.

While impacts from prior years occur regularly, management believes the amounts considered in the analysis above represent prior year impacts in excess of historic norms.

The FFO Payout Ratio** for the three months ended December 31, 2025 was 42.3%.

Same Properties Cash NOI** for the three months ended December 31, 2025 was $4.5 million, or 6.8%, 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, net recoveries and specialty leasing revenue, partially offset by declines in percentage rent in lieu of base rent.

Same Properties Cash NOI** included a $3.9 million, or 5.8%, contribution from recoveries attributed to prior year impacts, partially offset by a $1.1 million, or 1.7%, negative impact of HBC closures. Same Properties Cash NOI** growth excluding these two impacts would have been 2.6% for the three months ended December 31, 2025.

Redevelopment projects contributed $0.8 million of incremental rent to the portfolio for the three months ended December 31, 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 December 31, 2025 as compared to the same period in 2024.