Primaris REIT Announces Inaugural Issuer Rating of BBB With a Stable Trend by DBRS Morningstar

Mar 07, 2022 09:12 am

Primaris Real Estate Investment Trust (“Primaris” or “the Trust”) (TSX: PMZ.UN) announced today its issuer rating of BBB with a Stable Trend, assigned by DBRS Morningstar (“DBRS”). A copy of DBRS’ published rating is available at

“We are very pleased to have been assigned an issuer rating of BBB with a Stable Trend by DBRS Morningstar,” said Alex Avery, Chief Executive Officer. “This rating is reflective of our best-in-class capital structure and financing strategy, which was designed to allow Primaris to thrive in today’s retail environment.”

Rags Davloor, Chief Financial Officer added “Primaris REIT’s scale and highly differentiated financial model acknowledges both the clear preference public investors have for REITs with conservative financial models, and the advantages that having the lowest leverage among Canadian REITs provides. With a solid investment grade credit rating, we plan to further advance our unsecured financing strategy in coming months.”

Primaris established the following targets for managing the Trust’s financial position:



Debt to Total Assets

25% - 35%

Debt to Adjusted EBITDA**

4.0x – 6.0x

FFO** payout ratio

45% - 50%

Secured debt as a percentage of total debt


** Adjusted EBITDA and FFO are a non-GAAP financial measure. See the “Non-GAAP Measures” section of this release.

About Primaris Real Estate Investment Trust

Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests primarily in dominant enclosed shopping centres in growing markets. The portfolio totals 11.5 million square feet and is valued at approximately $3.2 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.

Non-GAAP Measures

Information in this press release is a select summary of results. This press release should be read in conjunction with the Trust’s Management Discussion and Analysis and the consolidated statement of financial position and combined carve-out financial statements and the accompanying notes for the years ended December 31, 2021 and 2020 (together the “Financial Statements”).

Primaris’ Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). However, 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 press release by the suffix “**” may include non-GAAP financial measures and/or non-GAAP ratios, each as defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. 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.

Forward-Looking Statements Disclaimer

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: management’s expectations regarding the Trust’s leverage and portfolio quality, management’s expectation regarding future distributions, management’s belief that Primaris has sufficient funds and liquidity for future commitments, management’s expectation to be able to meet all of its ongoing obligations, and management’s belief that Primaris satisfies certain prescribed conditions relating to the nature of its assets and revenue under the Income Tax Act (Canada). 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 the MD&A which will be 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.

Alex Avery
Chief Executive Officer
[email protected]

Rags Davloor
Chief Financial Officer
[email protected]