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nvestors are watching Primaris Real Estate Investment Trust (PRIM) closely after recent price swings. In the last week the share rose 2.1%, matching a 2.0% gain over the past month. Although the year‑to‑date performance dipped 0.8%, the one‑year return has rebounded to 1.4%. Over the past three years the stock has delivered a 33.8% return, rewarding long‑term holders amid shifting sentiment in the real‑estate sector.
The REIT market has seen a resurgence as investors search for overlooked value, driven by changing rate trends and growing demand for high‑quality retail assets. This has increased focus on firms like Primaris, sparking speculation about upside potential and altered risk perceptions.
Valuation analysis across six key metrics shows Primaris undervalued in four, giving it a value score of 4 out of 6. This suggests that shares could still climb if the broader market recognizes these strengths.
Analysts use several approaches to value PRIM. A discounted‑cash‑flow (DCF) model projects future adjusted funds from operations and discounts them to present value. Current estimates place the latest twelve‑month free cash flow (FCF) at CA$125.3 million, with forecasts of steady growth: CA$186.2 million by 2027 and CA$276.9 million by 2035. The DCF incorporates analyst data for the first five years and extrapolations from Simply Wall St for the remainder. All figures are in millions of Canadian dollars.
The model yields an intrinsic value of CA$31.64 per share. At today’s market price, the stock trades at a 51.4 % discount to this intrinsic value, indicating a significant undervaluation.
