From Vacancy to Value

研报英文原文证据摘录

From Vacancy to Value

Company Reports

Sitting on roughly 81 acres, the mall carries GLA of 1.1M sf, and is located roughly 40 minutes east

of Toronto, in one of Canada’s fastest-growing municipalities (24% growth over 2016-24 time frame).

Oshawa's economy contains a number of diversified drivers including healthcare, education services

(three post-secondary institutions), retail trade, manufacturing, and construction.

With a solid mix of tenants that includes Aritzia, Marshalls, Sephora, H&M, Zara, and Lululemon, CRU

sales productivity was up 13% Y/Y in 2025. This has been supported in part by strong CRU leasing, with

PMZ having leased roughly 71k sf of vacancy since acquisition. Long-term CRU occupancy now stands at

82.9% or +14% since early 2025. While overall in-place occupancy is 81.5% today, this largely reflects

the departure of HBC last year. PMZ is currently undertaking a $40M repositioning of the former HBC

and Sears spaces. With TTM NOI up almost 20% since the time of acquisition, the REIT envisions total

NOI growth of 40-50% over the coming two to three years as repositioning efforts bear fruit. This would

suggest an unlevered yield on cost (including repositioning spending) of roughly 8% when all is said and

done.

Multiple drivers to surface excess land value. Amid site coverage of 27% across the 81 acres, value

from excess land was also highlighted. With HBC’s departure providing enhanced flexibility/control of

the entirety of the property, given certain legacy lease restrictions, this is an opportunity across the

broader PMZ portfolio. In that vein, PMZ is focused on converting non-income producing land into realized

capital. As an example, ~900K sf (~1,000 suites) of multi-res density (rezoning is complete) on a 4.1-