Enclosed shopping centre REIT Primaris (PMZ-UN-T) has announced its second regional mall disposition in two weeks.

Primaris said in its Q3 financial results that it has agreed to sell its 50 per cent stake in Grant Park Shopping Centre in Winnipeg for $44.4 million after receiving a waiver of conditions for the sale on Monday.

Primaris had held the managing stake in the 398,940-sq.-ft. mall built in 1962 in a partnership with Toronto-based Montez Corporation.

The buyer of Grant Park has not been identified.

The announcement follows the REIT's disposition of its 50 per cent managing interest in Cataraqui Centre in Kingston, Ont., announced on Oct. 16, and its $411-million acquisition of Upper Canada Mall in Newmarket, Ont., from former co-owners Oxford Properties and CPP Investments in a deal which closed on Oct. 15. 

Primaris chief executive officer Alex Avery told an Investor Day meeting earlier this month that the REIT has a target of $500 million in dispositions over the next three years. The target includes land, out parcels and some non-core malls. 

Strong financial results for the quarter

The REIT reported strong quarterly financials, with $175.8 million total rental revenue, reflecting $826 per square foot in total same stores sales productivity.

"Leasing activity across our portfolio remains exceptionally strong, driven by healthy demand from national and international retailers," president and COO Patrick Sullivan said in the financial report release.

"The pace of deal execution remains robust as we secure high-quality tenants on attractive terms across our portfolio. This leasing momentum is driving occupancy gains, strengthening the merchandising mix in our centres, and supporting meaningful NOI growth and long-term value creation for our unitholders."

Primaris said its portfolio has 90.9 per cent committed occupancy in Q3, with 87.7 per cent in-place occupancy, and 84 per cent long-term in-place occupancy.

The REIT also reported continued progress in its spaces vacated by the Hudson's Bay Company.

Primaris said it has 882,000 square feet leased or in advanced negotiations expected to generate approximately $15.1 million of annual rental revenue, which reflected a quadrupling of the annual rent previously generated from the space when occupied by the former national department store.

Additionally, it delivered a 5.6 per cent increase in funds from operations (FFO) to $0.468 per diluted unit, supported by 3.1 per cent growth in same properties cash NOI and double-digit rent growth, including a 12.7 per cent weighted average spread on lease renewals.

Distribution increase for unitholders

The REIT also announced it would increase its distribution to unitholders by 5.7 per cent, taking it from $0.88 to $0.93 per unit per annum, effective Dec. 31.

Alongside the distribution bump, Primaris introduced 2027 guidance, forecasting diluted FFO per unit between $1.93 and $1.99 (up from $1.83 to $1.88 in 2026) and cash NOI of $427 million to $433 million, while allocating $160 million to $180 million in redevelopment capital to complete its HBC space reconfigurations.

"Strong and meaningful NOI and FFO per unit growth continue to demonstrate the strength of our portfolio and operating platform," Avery said in the release. 

"The acquisition of Upper Canada Mall is directly aligned with our strategy of owning dominant shopping centres in Canada's strongest markets, while our recently announced distribution increase reflects our confidence in the durability of our cash flows and future growth prospects."