Primaris Real Estate Investment Trust

Good morning and welcome to Primaris REIT's fourth quarter and annual 2022 results conference call. At this time, all lines have been placed on mute. After the prepared remarks, there will be a question and answer session. I will now turn the call over to Leslie Bust, Senior Vice President. Please go ahead.

Thank you, Operator. During this call, management of Primaris REIT may make statements containing forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Primaris REIT's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional information about these assumptions, risks, and uncertainties is contained in Primaris REIT's filings with securities regulators. These filings are also available on Primaris REIT's website at www.primarisreit.com. I'll now turn the call over to Alex Avery, Primaris' Chief Executive Officer. Alex.

Thanks, Leslie. Good morning, and thank you for joining us today to discuss Primaris REIT's fourth quarter and annual 2022 results. On the call today with me are Patrick Sullivan, President and Chief Operating Officer, Rags de Bleur, Chief Financial Officer, Leslie Boost, Senior Vice President, Finance, and Graham Proctor, Senior Vice President, Asset Management. Our first full year as a standalone REIT was filled with notable firsts and significant accomplishments. It started with a bang. With the spin-out and our first acquisition, an $800 million six shopping center portfolio, both of which closed December 31st, 2021. The acquisition entailed onboarding about 100 employees and further hires to build out our public company financial analysis and reporting group. Under the advice and oversight of our best-in-class board of trustees, we got off to a strong start in the first half of 2022, reporting our first set of statements being awarded a strong BBB investment grade credit rating from DBRS Morningstar completing our inaugural $350 million two tranche unsecured to venture offering and our first AGM and strategy session with the board. By the fall, our financial and operating results had begun to demonstrate a discernible trend of growth with average same property cash NOI growth trending above 10%, occupancy rising and positive leasing spreads. This demonstrated the resiliency and enduring value proposition of our business. in the face of skepticism about the mall property type. To close out the year, we announced an increase to our distributions of 2.5%, establishing an annual distribution increase policy supported by the REITs differentiated financial model of low leverage and a low payout ratio supported by robust growth throughout 2022. Throughout the year and in 2023, we continue to prioritize our awareness campaign designed to educate investors and analysts about the opportunity at Primaris REIT. Our efforts proved fruitful last year, delivering a 22% total return to unit holders, dramatically stronger than any of our Canadian REIT peers, while the S&P TSX REIT Index delivered a negative 17% total return. As we embark on our second year, we're excited about the opportunities ahead. We see significant NOI growth potential through increasing occupancy to stabilized levels. In 2022, we made material progress, but the vast majority of this opportunity remains to be captured over the next few years. We're also focused on continuing to convert pandemic lease concessions to market rents. While tenant sales in our portfolio have reached all-time highs over the last 12 months, 2019 NOI was more than 10% higher than the NOI delivered in 2022. While 2019 average in place occupancy was approximately 83% suggesting substantial growth over the next few years supported by our tenants success. We enjoy several competitive advantages that should enhance our ability to capitalize on market opportunities. Our business is performing very well with significant runway for internal growth over the next few years. Our scale provides us with a competitive advantage as we partner with retailers on multiple location leasing plans, building deeper and more collaborative relationships. Our differentiated low leverage, low payout ratio financial model provides us with excellent access to capital and the financial flexibility to deliver growth per unit to our investors in the face of higher borrowing costs and many peers pursuing leverage reduction. Our best in class governance profile and high quality independent board provide excellent oversight for our business and make us a preferred partner for institutions, institutional investors and retailer partners alike. Our fully internal comprehensive full scale management platform with a 20 year track record of success provides a particularly strong competitive advantage with very few competitive peers in Canada with comparable platforms and capabilities. Our goals for 2023 include the following. Number one, continuing to raise the awareness about Primaris REIT with investors through expanded research coverage, investor meetings and conferences, property tours and investor days. Number two, demonstrate Primaris' ability to transact on acquisitions and dispositions that are consistent with the REIT strategy and enhance the value of Primaris REIT units. Number three, continue to execute on capturing the internal NOI growth opportunity through active management of our portfolio to increase occupancy, restore standard leasing terms among remaining pandemic amended leases, and through driving rental rates higher over time. And number four, achieve all of the above while acting in a manner consistent with the best in class profile we have created at Primaris, including ESG commitments, being a respected and sought after partner, and transaction counterparty and a preferred place for employees to work. Primaris REIT completes its first year as a public company, but Primaris' underlying operating business celebrates 20 years of operating history. Although I myself joined the company much more recently, Pat Sullivan, the REIT's President and Chief Operating Officer, along with many, many other long tenured employees have built a team of professionals who possess a unique and scarce management capability tailored specifically to enclosed shopping centers. This was evident to me upon joining the team. It was evident to me upon joining the team that this was a specialized, hardworking and fun group of people. Now I'll turn the call over to Pat to continue to discuss our platform operating and leasing results followed by Rags, who will discuss our financing, financial results, and provide you with an update on our ESG strategy and disclosure package.