01:12 PM EDT, 06/20/2025 (MT Newswires) -- National Bank of Canada on Friday reiterated its sector-perform rating and $15.25 price target on the units of Primaris Real Estate Investment Trust (PMZ-UN.TO) after Primaris closed a secondary offering of units launched concurrently following the acquisition of the Lime Ridge Mall from Cadillac Fairview.

National Bank resumed coverage of the stock and nudged its weighted average net asset value cap rate lower to reflect improved portfolio quality. The bank noted that in addition to Primaris improving its average sales productivity, the acquisition of Lime Ridge is the first with Cadillac Fairview, which has 14 remaining enclosed malls in its portfolio.

"As such, we wouldn't be surprised to see this relationship providing a pipeline of future growth for PMZ," said analyst Matt Kornack. "On the liquidity front, the secondary offering increases free float while broadening the investor base."

National Bank also said that the acquisition is largely neutral to NAV and FFO/u while leverage increases by around multiple of 0.5 on net debt/EBITDA in 2026 but remains in the target range. Leasing upside, it added, exists on vacant anchor space, with no value attributed to the Sears/HBC boxes.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 14.60, Change: -0.04, Percent Change: -0.27