The second quarter of 2026 saw Primaris Real Estate Investment Trust (TSX: PMZ.UN) focus on aggressive portfolio reconfiguration. The company is currently re-leasing former Hudson's Bay Company locations while simultaneously identifying $200 million in non-core assets for potential sale.
The 84% progress mark on former Hudson's Bay Company spaces
As traditional department stores lose their dominance in Canadian shopping centers, REITs are facing a massive vacancy challenge. Primaris is attempting to turn this liability into an opportunity by diversifying the use of large-format anchor spaces. according to the company's report, the firm has already successfully leased or entered advanced negotiations for 84% of the space previously occupied by Hudson's Bay Company.
Securing these new tenants is providing much-needed stability to the Primaris portfolio. The company noted that 58% of these re-leased spaces are now secured under long-term lease agreements, which helps provide long-term visibility for investors.
Expanding in Fredericton and Windsor while targeting $200 million in sales
Primaris is actively shifting its geographic and asset-type focus through targeted acquisitions and planned divestments.. The company recently acquired the remaining 50% interest in Regent Mall in Fredericton, New Brunswick, and an adjoining vacant former HBC box at Devonshire Mall in Windsor, Ontario.
To fund this growth and streamline its operations, Primaris has identified $200 million worth of non-core, non-enclosed shopping centre properties and retail pads for potential disposition. As Primaris reported in its latest filing, this move allows the trust to concentrate on its most productive assets while maintaining a strong balance sheet with low leverage.
A $3.1 million Series A unit buyback and FFO growth
Financial performance for the quarter showed significant upward momentum in key metrics. Primaris reported notable growth in Same Properties Cash Net Operating Income, the weighted average spread on renewing net rents, and Funds from Operations (FFO) per average diluted unit.
The company also demonstrated confidence in its valuation by executing a share buyback program.. During the period, Primaris purchased 165,700 Series A trust units for a total of $3.1 million under its normal course issuer bid program.
The mystery of the remaining 16% and the $200 million asset list
While the company reports high leasing momentum, two critical details remain unverified in the current report. First, the identity of the tenants intended to fill the remaining 16% of former Hudson's Bay Company space is not disclosed. Second, the specific properties that comprise the $200 million in non-core, non-enclosed retail pads have yet to be named, leaving investors to wonder which assets will be the first to go.
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