Primaris REIT (TSX:PMZ.UN) is a Toronto-based real estate investment trust (REIT) that is focused on owning and operating enclosed shopping centres that are in promising economic areas. Shares of this REIT have plunged 13% month-over-month as of close on March 29. That has pushed this REIT into negative territory in the year-to-date period.
The REIT’s recent dip should not come as a huge surprise to investors. Central banks have pursued an aggressive quantitative tightening policy, sparking a correction for the Canadian real estate space. However, Primaris is also positioned to benefit from a return to normal on the retail shopping front. Many consumers have migrated to digital spaces, but many more are happy to return to their favourite brick-and-mortar stores.
This REIT released its fourth quarter and full year fiscal 2022 earnings on February 28, 2023. In Q4 2022, Primaris reported total rental revenue of $99.8 million. Meanwhile, it posted committed occupancy of 91.5% and in-place occupancy of 91.1%. The REIT closed out the fourth quarter with $3.2 billion in total assets. Looking forward, Primaris REIT is projecting a funds from operations (FFO) payout ratio between 45% and 50%.
Shares of this REIT are currently trading in more favourable value territory compared to its industry peers. Moreover, Primaris offers a monthly distribution of $0.068 per share. That represents a tasty 6.1% yield.
