Dream Industrial REIT Reports Strong Q2 2025 Financial Results
This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts are in Canadian dollars unless otherwise indicated.
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TORONTO — Dream Industrial Real Estate Investment Trust (DIR.UN-TSX) or (the 'REIT' or 'Trust' or 'Dream Industrial REIT' or 'DIR' or 'we' or 'us') today announced its financial results for the three and six months ended June 30, 2025. Management will host a conference call to discuss the financial results on August 6, 2025 at 11:00 a.m. (ET).
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'Dream Industrial reported a strong second quarter, delivering 4% FFO per Unit growth and 5% CP NOI growth driven by a 10% year-over-year increase in average in-place and committed rents in our comparative properties portfolio. We are encouraged by the increasing leasing momentum across our portfolio which lifted our committed occupancy to 96%, a 60 bps increase compared to last quarter and Q2 2024,' said Alexander Sannikov, President & Chief Executive Officer of Dream Industrial REIT. 'We remain committed to disciplined capital allocation and are actively executing on our capital recycling strategy to enhance portfolio quality by re-investing in opportunities that drive long-term cash flow and NAV growth.'
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HIGHLIGHTS
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Diluted funds from operations ('FFO') per Unit (1) was $0.26 in Q2 2025, a 4.1% increase when compared to $0.25 in Q2 2024.
Comparative properties net operating income ('CP NOI') (constant currency basis) (2) was $100.3 million in Q2 2025, a 5.0% increase when compared to $95.5 million in Q2 2024.
In-place and committed occupancy was 96.0% as at June 30, 2025, a 60 bps increase when compared to 95.4% as at March 31, 2025.
Closed on over $80 million of acquisitions in the Trust ' s wholly-owned portfolio and $460 million of acquisitions through the Trust ' s private ventures since the beginning of 2025, adding over 1.6 million square feet of GLA and over 31 acres of land to the Trust's owned and managed portfolio.
Signed over 3.3 million square feet of new leases and renewals across the Trust ' s wholly-owned portfolio at an average rental spread of 20% from the beginning of Q2 until July 31, 2025, driven by 41% spread in Ontario, 52% spread in Québec and 11% spread in Western Canada.
Addressed over 70% of the total debt maturity of $850 million due in 2025, and currently evaluating various alternatives for the remaining maturity.
Net rental income wa s $94.7 million in Q2 2025, an 8.0% increase when compared to $87.7 million in Q2 2024, driven by 8.6% in Ontario, 4.0% in Québec, 19.0% in Western Canada and 9.1% in Europe, excluding disposed investment properties.
Net income was $46.6 million in Q2 2025, a 24.4% decrease when compared to $61.6 million in Q2 2024. The net income in Q2 2025 was comprised of net rental income of $94.7 million, fair value loss in investment properties of $6.5 million, fair value loss in financial instruments of $7.0 million and other net expenses of $34.6 million.
Total assets were $8.3 billion as at June 30, 2025, a 1.8% increase when compared to $8.1 billion as at December 31, 2024, driven by investments in the Dream Summit JV (3) and development projects, partially offset by the disposition of certain non-core assets.
Purchased for cancellation 1,918,566 REIT Units under the normal course issuer bid ('NCIB') program at a weighted average price of $10.42 per REIT Unit.
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1.
Diluted FFO per Unit is a non-GAAP ratio. For further information on this non-GAAP ratio, please refer to the statements under the heading 'Non-GAAP financial measures, ratios and supplementary financial measures' in this press release.
2.
CP NOI (constant currency basis) and Total equity (including LP B Units) are non-GAAP financial measures. The tables included in the Appendices section of this press release reconcile these non-GAAP financial measures with their most directly comparable IFRS financial measures. For further information on this non-GAAP financial measure, please refer to the statements under the heading 'Non-GAAP financial measures, ratios and supplementary financial measures' in this press release.
3.
A joint venture between GIC and the Trust in which the Trust has a 10% interest.
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PORTFOLIO INFORMATION
As at
June 30,
December 31,
June 30,
(in thousands of dollars)
2025
2024
2024
Total portfolio
Number of assets (5)(6)
338
335
339
Investment properties fair value
$
7,267,008
$
7,031,713
$
6,962,841
Gross leasable area ('GLA') (in millions of sq. ft.) (6)
72.9
71.8
71.9
Occupancy rate – in-place and committed (period-end) (7)
96.0%
95.8%
95.4%
Occupancy rate – in-place (period-end) (7)
94.1%
95.3%
95.0%
See footnotes at end.
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FINANCING AND CAPITAL INFORMATION
(unaudited)
As at
June 30,
December 31,
June 30,
(in thousands of dollars except per Unit amounts)
2025
2024
2024
FINANCING
Credit rating – DBRS
BBB (mid)
BBB (mid)
BBB (mid)
Net total debt-to-total assets (net of cash and cash equivalents) ratio (8)
38.0%
36.1%
35.9%
Net total debt-to-normalized adjusted EBITDAFV ratio (years) (9)
8.2
7.0
8.1
Interest coverage ratio (times) (10)
5.1
5.2
5.4
Weighted average face interest rate on debt (period-end)
2.77%
2.47%
2.47%
Unencumbered investment properties (period-end) (11)
$
6,092,347
$
5,799,700
$
5,683,435
Unencumbered investment properties as a percentage of investment properties (11)
83.8%
82.3%
81.6%
Total assets
$
8,269,717
$
8,122,554
$
8,019,581
Cash and cash equivalents
$
42,595
$
80,277
$
103,358
Available liquidity (12)
$
714,402
$
822,395
$
596,253
CAPITAL
Total equity (per condensed consolidated financial statements)
$
4,784,272
$
4,731,073
$
4,666,106
Total equity (including LP B Units) (13)
$
4,872,149
$
4,888,696
$
4,835,207
Total number of Units (in thousands) (14)
291,907
291,167
289,019
Net asset value ('NAV') per Unit (15)
$
16.69
$
16.79
$
16.73
Unit price
$
11.79
$
11.81
$
12.67
See footnotes at end.
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