Mr. Alex Avery reports

PRIMARIS REIT ANNOUNCES UPSIZE OF UNSECURED REVOLVING CREDIT FACILITY TO $600 MILLION

Primaris Real Estate Investment Trust has entered into an agreement to upsize its $400-million revolving credit facility to $600-million, aligning to Primaris's unsecured debt strategy, enhancing financing flexibility and liquidity.

The $600-million unsecured syndicated revolving credit facility matures Jan. 4, 2027. Based in part on the Primaris's credit rating of BBB (high), the credit facility bears interest at variable rates of either: (i) Prime plus 0.35 per cent per annum; or (ii) adjusted Canadian overnight repo rate average (CORRA) plus 1.35 per cent per annum. Six Canadian banks participated in the syndicate, led by CIBC, Scotiabank, TD Securities and Desjardins Capital Markets, and included National Bank Financial and RBC.

"This upsized revolving credit facility allows us to actively manage our property portfolio while providing maximum flexibility and additional access to liquidity at very attractive terms, and complements our well-laddered debt maturity profile," said Rags Davloor, chief financial officer. "Primaris's differentiated financial model is intentional and a critical pillar to our strategy and our growth story. Maintaining this conservative model and generating free cash flow after distributions and capital expenditures is a core focus from which we will not deviate."

Alex Avery, chief executive officer, added: "After completing meaningful acquisitions in 2023, the new credit facility provides Primaris with approximately $650-million of additional financial liquidity, inclusive of cash on hand, with which to pursue further strategic acquisitions. We are excited about what is possible in 2024, and look forward to continuing to execute on the REIT's growth strategy."

Primaris has a well-balanced capital structure and a preference for unsecured financing. As previously announced in November, 2023, Primaris issued $400-million aggregate principal amount of senior unsecured debentures, consisting of a $100-million aggregate principal amount reopening of the Series A debentures maturing March 30, 2027, and a $300-million aggregate principal amount of Series D debentures maturing June 30, 2029.

Disciplined capital allocation is a key pillar to Primaris's strategy. To this end, Primaris reiterates its established targets for managing the trust's financial condition.

Targets:

• Debt to total assets: 25 per cent to 35 per cent;
• Average net debt to adjusted earnings before interest, taxes, depreciation and amortization: four to six times;
• Funds from operations payout ratio: 45 per cent to 50 per cent;
• Secured debt to total debt: less than 40 per cent.

About Primaris Real Estate Investment Trust

Primaris is Canada's only enclosed-shopping-centre-focused REIT, with ownership interests primarily in the leading enclosed shopping centres in growing markets. The portfolio totals 39 properties, or 12.5 million square feet, valued at approximately $3.9-billion at Primaris's 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.

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