Latest news with #DreamUnlimitedCorp
Yahoo
6 days ago
- Business
- Yahoo
Dream Unlimited Corp. Presents at Annual General Meeting
TORONTO, June 03, 2025--(BUSINESS WIRE)--Dream Unlimited Corp. (TSX: DRM) ("Dream", the "Company" or "we") will be providing an investor update along with general business at its Annual General Meeting (the "AGM") at the TMX Market Centre, 120 Adelaide Street West in Toronto today. At the AGM, the Company's senior management team will discuss its key segments, its business plans and strategies and future growth drivers to generate returns and improve the quality of the Company's income. A copy of the presentation will be archived and available on our website at Click on the link for News then click on Events. As part of the update, the Company included an updated net asset value ("NAV") per share of $51.64 which compares to standalone book equity per share of the Company of $30.53, each as of March 31, 2025. About Dream Unlimited Corp. Dream has an established and successful asset management business, inclusive of $28 billion of assets under management as at March 31, 2025 across four Toronto Stock Exchange ("TSX") listed trusts, our private asset management business and numerous partnerships. We are a leading developer of exceptional real estate assets across Canada and Europe, including income properties that will be held for the long term as they are completed. We also develop land for sale in Western Canada. Dream has a proven track record for being innovative and for our ability to source, structure and execute on compelling investment opportunities. A comprehensive overview of our holdings is included in the "Summary of Dream's Assets and Holdings" section of our MD&A for the first quarter of 2025. Non-GAAP Measures and Other Disclosures In addition to using financial measures determined in accordance with International Financial Reporting Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), we believe that important measures of operating performance include certain financial measures that are not defined under IFRS Accounting Standards. In this press release, there are references to certain non-GAAP financial measures and ratios, including NAV per share and standalone book equity per share, which management believes are relevant in assessing the economics of the business of Dream. These performance and other measures are not financial measures under IFRS Accounting Standards, and may not be comparable to similar measures disclosed by other issuers. However, we believe that they are informative and provide further insight as supplementary measures of financial performance, financial position or cash flow, or our objectives and policies, as applicable. Non-GAAP Ratios and Financial Measures "Dream Impact Trust and consolidation and fair value adjustments" represent certain IFRS Accounting Standards adjustments required to reconcile Dream standalone and Dream Impact Trust results to the consolidated results as at March 31, 2025. Management believes Dream Impact Trust and consolidation and fair value adjustments provides investors useful information in order to reconcile it to the Dream Impact Trust financial statements. Consolidation and fair value adjustments relate to business combination adjustments on acquisition of Dream Impact Trust on January 1, 2018 and related amortization, elimination of intercompany balances including the investment in Dream Impact Trust units, adjustments for co-owned projects, fair value adjustments to the Dream Impact Trust units held by other unitholders, and deferred income taxes. "Standalone Book Equity" is a non-GAAP financial measure that represents shareholders' equity attributable to Dream on a non-consolidated basis. This metric excludes the impact of Dream Impact Trust and consolidation and fair value adjustments. It is intended to reflect how management measures the equity value of the core business operations of Dream. "Standalone Book Equity per unit" is a non-GAAP ratio and is calculated as Standalone Book Equity divided by the number of Class A subordinate voting shares and Class B common shares of Dream outstanding as of that date. Standalone Book Equity per unit as of March 31, 2025 is calculated below. "Dream Standalone" is a non-GAAP measure and represents the results of Dream, excluding the impact of Dream Impact Trust's consolidated results and IFRS Accounting Standards adjustments to reflect Dream's direct ownership of our partnerships. Direct ownership refers to Dream Unlimited Corp.'s interest in subsidiaries and partnerships and excludes any non-controlling interest in the noted entities based on units held as of the end of the reporting period. The most direct comparable financial measure to Dream standalone is consolidated Dream. This non-GAAP measure is an important measure used by the Company to evaluate earnings against historical periods, including results prior to the acquisition of control of Dream Impact Trust. "Net asset value" or "NAV" is a non-GAAP financial measure and represents the intrinsic value for the Company excluding the impact of Dream Impact Trust's consolidated results and IFRS Accounting Standards adjustments to reflect Dream's direct ownership of our partnerships. Due to the nature of our holdings, NAV is calculated to reflect various factors including the progression of our developments, fair market value of our land holdings, fair value of our unit holdings in Dream Impact Trust, Dream Office REIT and Dream Residential REIT and asset management businesses. The Company believes that incorporating market value adjustments is a more useful measure to value our business that would not ordinarily be captured under IFRS and the Company's consolidated financial statements which reflect the consolidation of Dream Impact Trust and Dream Impact Fund. In calculating the market value adjustments reflected in NAV, the Company uses certain market assumptions to fair value items held at cost. The closest IFRS measure to NAV is shareholders' equity. The table below provides the reconciliation of NAV to shareholders' equity: In thousands of dollars, except per share and outstanding share amounts As at March 31, 2025 Consolidated Shareholders Equity $ 1,485,031 Less: Dream Impact Trust(i) (395,641) Less: Consolidation and fair value adjustments(i) 205,346 Standalone Book Equity 1,294,736 Standalone Book Equity per unit 30.53 Land inventory market value adjustment(ii) 520,046 Asset management market value adjustment(iii) 552,200 Dream Group unit holdings market value adjustment(iv) (176,565) Total market value adjustment 895,681 Net asset value 2,190,417 Shares issued and outstanding 42,414,563 Net asset value per share $ 51.64 (i) See above for the definition of Dream Impact Trust and consolidation and fair value adjustments, Dream standalone adjustments and Dream standalone, which are non-GAAP financial measures. (ii) 8,700 acres in Alberta & Saskatchewan at an average fair value of $95,000/acre for land held for development and a 1.4x multiple for land under development. (iii) Value of asset management business based on 16x multiple on net margin. (iv) Units adjusted to trading price as of March 31, 2025 ($17.79 for Dream Office REIT, $3.00 for Dream Impact Trust and $12.65 for Dream Residential REIT). "Net asset value per share" or "NAV per share" is a non-GAAP ratio. NAV per share is calculated as net asset value divided by the number of Class A subordinate voting shares and Class B common shares of Dream outstanding as of that date. We use this ratio to assess the relative value of our businesses on a per share basis. NAV per share as of March 31, 2025 is calculated above. View source version on Contacts Dream Unlimited PelosoChief Financial Officer(416) 365-6322mpeloso@ Kim LefeverDirector, Investor Relations(416) 365-6339klefever@
Yahoo
12-05-2025
- Business
- Yahoo
Dream Unlimited Corp. Reports First Quarter 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 amounts are in Canadian dollars. TORONTO, May 12, 2025--(BUSINESS WIRE)--Dream Unlimited Corp. (TSX: DRM) ("Dream", "the Company" or "we") today announced its financial results for the three months ended March 31, 2025 ("first quarter"). "For the first time since 1997, Arapahoe Basin's results are not included in our quarter as it was sold this past November," said Michael Cooper, Chief Responsible Officer. "All of the ski hill's annual profits were typically achieved in the first quarter, which benefitted our results for 27 years in what is traditionally a period of low earnings other than Arapahoe Basin. Without $10-$15 million of earnings from the ski area, our first quarter results will be relatively quiet even if they are as anticipated. Our results were largely in line with expectations, and we are on track to hit our earnings targets set out for the year. As we think about the Company today, over 80% of value is derived from our asset management division, Western Canada developments and our directly owned income properties. In the first quarter, our asset management business added in excess of $500 million of fee-earning assets with an improved margin over last year. In Western Canada, we now have pre-sales in place for almost all of the land we budgeted to sell for 2025, and our retail and residential rental portfolio are growing and performing as expected. The remaining balance is made up of investments in Dream Office and Dream Impact, a small amount of urban land and three hotels in Toronto. These parts have been negatively impacted by the broader market but are a small component of where we'll see growth and value creation for Dream over the long-term." Dream has published a supplemental information package on our website concurrent with the release of our first quarter results. Results Highlights (Asset Management, Western Canada development, Income properties): In the first quarter, our asset management business generated revenue and net margin of $13.7 million and $6.1 million, compared to $13.0 million and $5.6 million in 2024. The increase was driven by continued AUM growth and the timing of performance and development fees, which will vary in each period as milestones are met. Subsequent to the quarter, Dream Impact Trust entered into an agreement to sell a minority interest in 49 Ontario St. to a new partner and entered into a development agreement with Dream and the partner to manage the 1,200 multi-family unit project. The re-development site is in close proximity to the Distillery District, Canary Landing and a future Ontario line transit stop. A waiver for development charges on the project was obtained in late 2024 and construction financing was secured in the first quarter, which positions the project to start construction by the end of this year. As we advance large scale affordable housing projects such as 49 Ontario St., we are continuing to showcase our ability to execute in a challenging market and will continue to grow our assets under management as they are built-out. In the first quarter, we achieved 62 lot sales and 30 housing occupancies in Western Canada, generating net margin of $6.3 million. As of May 9, 2025, we had $160 million of commitments for land pre-sales, of which $150 million is expected to be recognized in revenue over the course of 2025. Most of our land revenue for the year is expected to be from our Alpine Park (Calgary) and Holmwood (Saskatoon) master-planned communities. Our stabilized income properties generated revenue and net operating income of $11.8 million and $6.4 million in 2025, compared to $10.3 million and $4.5 million in the prior period (on a standalone basis). The increase in revenue was driven by higher rent on our multi-family rental portfolio from ongoing lease-up activity and rental turnover. Furthermore, the increase in net operating income was driven by higher operating costs on our Western Canada rental properties in 2024, which have started to normalize as stabilization is achieved. Across our various developments in Western Canada and Ottawa, we currently have just over 1,000 multi-family rental units (at Dream's share) under construction. These assets will further support the growth of our income property division as they are completed over the next three years. In addition to our multi-family pipeline, we most recently broke ground on 60,000 sf of retail space at Alpine Park. This is a first for the Alpine Park community with 80% in committed leasing as of May 9, 2025. For a detailed list of our build-to-hold projects under construction, refer to the Recurring Income section of our the management's discussion and analysis of Dream for the three months ended March 31, 2025, dated May 12, 2025 (the "MD&A for the first quarter of 2025") for pipeline details. Other items: Our Corporate and other segment generated $19.4 million in revenue and $5.5 million of negative margin in the first quarter (on a standalone basis), compared to $60.4 million in revenue and $7.9 million of margin in the prior period. Fluctuations in revenue and net loss were largely driven by prior year results from Arapahoe Basin and occupancies at Ivy Condos with no comparable activity in the current period. We do not anticipate significant development income from the GTA or National Capital Region to be generated in 2025. At the end of 2024, Dream acquired our partner's interest in a boutique hotel portfolio, comprised of the Broadview Hotel, Gladstone Hotel and Postmark Hotel, as well as certain retail and condo assets at minimal cost. Accordingly, we have taken over operations of the hotels, including the opening of the Postmark Hotel in August 2024. The first quarter marks the first full period of operations in which we own 100%, the results of which tend to be very seasonal. Strategically, the retail assets acquired are considered non-core to our portfolio and we expect to dispose of them over time. In addition, we also own 100% of the Broadview and Eastern site, directly north of East Harbour Transit Hub and two other small land sites. In the first quarter, we completed the disposition of three non-core retail assets in Toronto, totaling 36,600 sf for gross proceeds of $16.7 million, a portion of which was used to repay property level debt. In aggregate, the hotel portfolio generated net operating losses of $2 million in the period. Consolidated Results Overview A summary of our consolidated results for the first quarter is included in the table below. For the three months ended March 31, (in thousands of dollars, except number of shares and per share amounts) 2025 2024 Revenue $ 68,423 $ 158,251 Net margin $ 9,196 $ 19,164 Net margin (%)(1) 13.4% 12.1% Earnings (loss) before income taxes $ (10,948) $ 12,097 March 31,2025 December 31,2024 Total assets $ 3,846,777 $ 3,921,052 Total liabilities $ 2,361,746 $ 2,419,523 Total equity $ 1,485,031 $ 1,501,529 Total issued and outstanding shares 42,414,563 42,056,218 Losses before income taxes for the first quarter were $10.9 million, a decrease from earnings before taxes of $12.1 million in the comparative period. Comparative period earnings included results from Arapahoe Basin, which was sold in November 2024. The remainder of the decrease in earnings was attributable to fair value adjustments on the liability for Dream Impact Trust units, which are driven by fluctuations in the Dream Impact Trust's unit price. As of March 31, 2025, we had available liquidity(1) of $346.3 million and $380 million of contractual debt maturities expected in 2025. Of this amount, $92.5 million of construction debt was repaid subsequent to quarter end and replaced with take-out financing, and a further $250 million is in advanced lender discussions or expected to renew in normal course. Our strong liquidity and debt profile allows us to be well positioned in this economic climate and provides us with flexibility to pursue new investments as they arise. Annual Meeting of Shareholders Senior management will host its annual meeting of shareholders on Tuesday, June 3, 2025 at 2:00 PM (ET) at the TMX Market Centre, 120 Adelaide Street West, Toronto, Ontario M5H 1S3. In light of the upcoming meeting, management will not be hosting a conference call for the first quarter. To access the annual meeting of shareholders via webcast, please go to Dream's website at and click on the link for News, then click on Events. A taped replay of the annual meeting of shareholders and the webcast will be available for ninety (90) days following the meeting. We look forward to providing a business update on June 3rd. Other Information Information appearing in this press release is a select summary of results. The financial statements and MD&A for the first quarter of 2025 for the Company are available at and on About Dream Unlimited Corp. Dream has an established and successful asset management business, inclusive of $28 billion of assets under management* as at March 31, 2025 across four Toronto Stock Exchange ("TSX") listed trusts, our private asset management business and numerous partnerships. We are a leading developer of exceptional real estate assets across Canada and Europe, including income properties that will be held for the long term as they are completed. We also develop land for sale in Western Canada. Dream has a proven track record for being innovative and for our ability to source, structure and execute on compelling investment opportunities. A comprehensive overview of our holdings is included in the "Summary of Dream's Assets and Holdings" section of our MD&A for the first quarter of 2025. Non-GAAP Measures and Other Disclosures In addition to using financial measures determined in accordance with International Financial Reporting Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), we believe that important measures of operating performance include certain financial measures that are not defined under IFRS Accounting Standards. Throughout this press release, there are references to certain non-GAAP financial measures and ratios and supplementary financial measures, including Dream Impact Trust and consolidation and fair value adjustments, available liquidity, net operating income, standalone figures by division, fee earning assets under management and portfolio of stabilized properties, which management believes are relevant in assessing the economics of the business of Dream. These performance and other measures are not financial measures under IFRS Accounting Standards, and may not be comparable to similar measures disclosed by other issuers. However, we believe that they are informative and provide further insight as supplementary measures of financial performance, financial position or cash flow, or our objectives and policies, as applicable. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the "MD&A for the first quarter of 2025" and can be found under the section "Non-GAAP Ratios and Financial Measures", subheadings "Net operating income" and "Dream Impact Trust and consolidation and fair value adjustments". The composition of supplementary financial measures included in this press release has been incorporated by reference from the MD&A for the first quarter of 2025 and can be found under the section "Supplementary and Other Financial Measures". The MD&A for the first quarter of 2025 is available on SEDAR+ at under Dream's profile and on Dream's website at under the Investors section. Non-GAAP Ratios and Financial Measures "Dream Impact Trust and consolidation and fair value adjustments" represent certain IFRS Accounting Standards adjustments required to reconcile Dream standalone and Dream Impact Trust results to the consolidated results as at March 31, 2025 and December 31, 2024 and for the three months ended March 31, 2025 and December 31, 2024. Management believes Dream Impact Trust and consolidation and fair value adjustments provides investors useful information in order to reconcile it to the Dream Impact Trust financial statements. Consolidation and fair value adjustments relate to business combination adjustments on acquisition of Dream Impact Trust on January 1, 2018 and related amortization, elimination of intercompany balances including the investment in Dream Impact Trust units, adjustments for co-owned projects, fair value adjustments to the Dream Impact Trust units held by other unitholders, and deferred income taxes. "Net operating income" is a non-GAAP measure and represents revenue, less (i) direct operating costs and (ii) selling, marketing, depreciation and other indirect costs, but including: (iii) depreciation; and (iv) general and administrative expenses. The most directly comparable financial measure to net operating revenue is net margin. This non-GAAP measure is an important measure used by management to assess the profitability of the Company's recurring income segment. Net operating income for the recurring income segment for the three months ended March 31, 2025 and 2024 is calculated and reconciled to net margin as follows: For the three months ended March 31, 2025 2024 Net margin $ 12,308 $ 24,962 Add: Depreciation 978 1,496 Add: General and administrative expenses 129 727 Net operating income $ 13,415 $ 27,185 "Standalone Figures by Division" is a non-GAAP measure and represents the results of Dream, excluding the impact of Dream Impact Trust's consolidated results and IFRS Accounting Standards adjustments to reflect Dream's direct ownership of our partnerships. Direct ownership refers to Dream Unlimited Corp.'s interest in subsidiaries and partnerships and excludes any non-controlling interest in the noted entities based on units held as of the end of the reporting period. The most direct comparable financial measure to Dream standalone is consolidated Dream. This non-GAAP measure is an important measure used by the Company to evaluate earnings against historical periods, including results prior to the acquisition of control of Dream Impact Trust. For the three months ended March 31, 2025 Asset Management Stabilized Income Properties(i) Western Canada Development Corporate and other Total Standalone Add: Dream Impact Trust and IFRS adjustments Consolidated Dream Revenue $ 13,747 $ 11,802 $ 24,970 $ 19,372 $ 69,891 $ (1,468) $ 68,423 Direct operating costs (7,684) (5,380) (18,717) (21,376) (53,157) 3,022 (50,135) Gross margin 6,063 6,422 6,253 (2,004) 16,734 1,554 18,288 Selling, marketing, depreciation and other operating costs — (460) (5,509) (3,456) (9,425) 333 (9,092) Net margin 6,063 5,962 744 (5,460) 7,309 1,887 9,196 Fair value changes in investment properties — 434 1,790 — 2,224 (4,223) (1,999) Investment income and other expenses (274) 637 496 (90) 769 231 1,000 Interest expense (5) (4,813) (535) (5,359) (10,712) (7,591) (18,303) Share of earnings (loss) from equity accounted investments (916) — — (9,791) (10,707) 5,101 (5,606) Net segment earnings (loss) 4,868 2,220 2,495 (20,700) (11,117) (4,595) (15,712) General and administrative expenses — — — (6,466) (6,466) (760) (7,226) Adjustments related to Dream Impact units — — — — — 9,108 9,108 Adjustments related to Dream Office REIT units — — — — — 2,882 2,882 Income tax (expense) recovery — — — 2,808 2,808 55 2,863 Net earnings (loss) $ 4,868 $ 2,220 $ 2,495 $ (24,358) $ (14,775) $ 6,690 $ (8,085) For the three months ended March 31, 2024 Asset Management Stabilized Income Properties(i) Western Canada Development Corporate and other Total Standalone Add: Dream Impact Trust and IFRS adjustments Consolidated Dream Revenue $ 12,988 $ 10,340 $ 11,271 $ 60,403 $ 95,002 $ 63,249 $ 158,251 Direct operating costs (7,420) (5,830) (8,198) (44,463) (65,911) (60,631) (126,542) Gross margin 5,568 4,510 3,073 15,940 29,091 2,618 31,709 Selling, marketing, depreciation and other operating costs — (615) (4,810) (8,029) (13,454) 909 (12,545) Net margin 5,568 3,895 (1,737) 7,911 15,637 3,527 19,164 Fair value changes in investment properties — (1,356) 5,151 96 3,891 (1,345) 2,546 Investment income and other expenses (279) 248 459 986 1,414 (525) 889 Interest expense (4) (3,256) (1,109) (4,540) (8,909) (8,155) (17,064) Share of earnings (loss) from equity accounted investments (2,007) — — 1,384 (623) (2,582) (3,205) Net segment earnings (loss) 3,278 (469) 2,764 5,837 11,410 (9,080) 2,330 General and administrative expenses — — — (5,973) (5,973) (408) (6,381) Adjustments related to Dream Impact units — — — — — 17,316 17,316 Adjustments related to Dream Office REIT units — — — — — (1,168) (1,168) Income tax (expense) recovery — — — (4,871) (4,871) 2,308 (2,563) Net earnings (loss) $ 3,278 $ (469) $ 2,764 $ (5,007) $ 566 $ 8,968 $ 9,534 Forward-Looking Information This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements regarding our objectives and strategies to achieve those objectives; our beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, future growth, expected net proceeds from sales or transactions, results of operations, performance, business prospects and opportunities, acquisitions or divestitures, tenant base, future maintenance and development plans and costs, capital investments, financing, the availability of financing sources, income taxes, vacancy and leasing assumptions, litigation and the real estate industry in general; as well as specific statements in respect of our expectations regarding our ability to pursue opportunities to grow; our expectations regarding the performance of Western Canada division; expectations regarding 49 Ontario St., including timelines and the Dream Impact Trust's ability to consummate the sale of a minority interest; our expectations regarding development income from the GTA or National Capital Region; our ability to maintain strong liquidity and our expectation that we will be well positioned for new investments as they arise; our ability to achieve leasing and construction targets; our expectations regarding our asset management division, including expected growth; our development plans, including sizes, uses, density, number of units, amenities and timing thereof; our expectation that we will add 1,434 apartment units comprising 1.0 million square feet of residential GFA to our recurring income portfolio over the next three years; expectations regarding our non-core retail assets, including disposition plans; expectations regarding the sale of assets and land; our ability to consummate land commitments, and use of proceeds and timing thereof and the impacts of any sales on interest in our communities; our ability to renew indebtedness in the normal course and the ability for our liquidity and debt profile to provide us flexibility to pursue new investments as they arise; our occupancy targets; and our expectations about our liquidity in future periods. 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 Dream's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These assumptions include, but are not limited to: the nature of development lands held and the development potential of such lands, interest rates and inflation remaining in line with management expectations, our ability to bring new developments to market, anticipated positive general economic and business conditions, including low unemployment and interest rates, that duties, tariffs and other trade restrictions, if any, will not materially impact our business, positive net migration, oil and gas commodity prices, our business strategy, including geographic focus, anticipated sales volumes, performance of our underlying business segments and conditions in the Western Canada land and housing markets. Risks and uncertainties include, but are not limited to, general and local economic and business conditions, the impact of public health crises and epidemics, employment levels, risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, international sanctions and the disruption of movement of goods and services across jurisdictions, inflation or stagflation, regulatory risks, mortgage and interest rates and regulations, risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates, risks related to the imposition of duties, tariffs and other trade restrictions and their impacts, environmental risks, consumer confidence, seasonality, adverse weather conditions, reliance on key clients and personnel and competition. All forward-looking information in this press release speaks as of May 12, 2025. Dream does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR+ ( Endnotes: (1) Dream Impact Trust and consolidation and fair value adjustments, portfolio of stabilized properties and net operating income are non-GAAP financial measures. Such measures are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers. The most directly comparable financial measures to Dream Impact Trust and consolidation and fair value adjustments is net income. The most directly comparable financial measures to portfolio of stabilized properties and net operating income is net margin. Assets under management, fee earning assets under management, net margin (%), and available liquidity are supplementary financial measures. Refer to the "Non-GAAP Measures and Other Disclosures" section of this press release for further details. View source version on Contacts Dream Unlimited Corp. Meaghan PelosoChief Financial Officer(416) 365-6322mpeloso@ Kim LefeverDirector, Investor Relations(416) 365-6339klefever@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
26-02-2025
- Business
- Associated Press
Dream Unlimited Corp. Reports Strong Fourth Quarter Results & Announces Dividend Increase
Dream Unlimited Corp. (TSX: DRM) ('Dream', 'the Company' or 'we') today announced its financial results for the three and twelve months ended December 31, 2024 ('fourth quarter'). 'On many fronts, 2024 was a positive and significant year for our business with our core operating divisions performing very well,' said Michael Cooper, Chief Responsible Officer. 'Western Canada land produced its highest level of profit since going public in 2013 and is on track for another successful year. We continue to see steady expansion across our asset management platform, whether through institutional partnerships or expansion of our existing mandates, and the trajectory of growth for our income properties is at a point where it can achieve real scale. The office and GTA development markets continue to be challenged, however, we have accomplished all our key objectives we set out for in 2024. With the increasing chaos across our political and economic environment, our focus on managing liquidity is proving to be increasingly valuable so we can weather unexpected disruptions that may arise, and we are comfortable with our overall position from the diversity of our asset profile.' Dream has published a supplemental information package on our website concurrent with the release of our fourth quarter results. Highlights: Recurring Income (comprised of Income & Recreational Properties and Asset Management) On November 19, 2024, we closed on the sale of Arapahoe Basin to Alterra Mountain Company. The sale generated a pre-tax gain of $157.4 million after closing costs and adjustments. Proceeds were used to repay certain debt facilities and fund a special shareholder dividend paid in December. In the fourth quarter our asset management business generated revenue and net margin of $18.2 million and $11.3 million, compared to $23.8 million and $16.8 million in 2023. The decrease from 2023 is primarily driven by the magnitude of development fees recognized in the prior year, which will fluctuate as certain construction milestones are met. This was partially offset by growth in base fees, as fee earning assets under management (1) increased by over $2 billion since 2023. As previously disclosed, we anticipate continuing growth in this division as we closed on a $1 billion portfolio of multi-family rentals located in the Netherlands in December and announced a $2 billion joint venture focused on Canadian apartments in January. Our income properties division generated revenue and net operating income of $17.9 million and $5.8 million in the fourth quarter, compared to $14.1 million and $5.7 million in the comparative period (excluding results from Arapahoe Basin). The increase in revenue was driven by the stabilization of three properties in Western Canada at the end of 2023, in addition to the opening of the Postmark Hotel in mid-2024. Net operating income was consistent year over year, as we incurred $0.4 million in losses associated with the hotel pre-stabilization ($1.0 million year-to-date). Towards the end of the fourth quarter, we acquired our partner's interest in our portfolio of hotels, comprised of the Broadview Hotel, Gladstone Hotel and Postmark Hotel for a net purchase price of $11.1 million, resulting in us owning 100% of the portfolio. Occupancy rates at our stabilized hotels was 79% in the fourth quarter. The Distillery District is our 395,000 square foot ('sf') income property in the east end of downtown Toronto and we hold a 62.5% ownership interest. Subsequent to year end, one of our major tenants extended their current lease of 53,000 sf and upsized for a further 20,000 sf. The deal carries a term of 18 years, strong covenant and was completed at attractive market rents. On a year-to-date basis, our recurring income businesses generated revenue and net operating income (1) of $176.9 million and $79.5 million, respectively, up by $7.7 million and $13.0 million from 2023 on a standalone basis. The increase was driven by carried interest realized on the U.S. Industrial Fund, higher occupancy and base rent at the Distillery District and improved yields at Arapahoe Basin up to August 31, 2024. This was partially offset by less development activity across our asset management platform. Across the Dream group platform, which includes assets held through the Company, Dream Impact Trust, Dream Impact Fund and Dream Residential REIT, we have a growing portfolio of nearly 8,000 stabilized apartment units, 1,344 units in lease up and over 1,980 units under construction, compared to only 48 units in 2017 when we committed to our residential rental strategy. Our Canadian stabilized residential rentals maintained strong occupancy of 97% as of quarter-end and we expect to add over 2,600 residential rental units to our portfolio through 2027 (at 100% project level), nearly all of which are under construction today. Highlights: Development (comprised of development activity in the GTA, National Capital Region and Western Canada) In the fourth quarter our development segment generated $151.2 million in revenue and $42.6 million in net margin on a standalone basis, up from $53.8 million and $4.4 million in 2023 largely due to the timing of lot sales and an increase in acre sales. On a year-to-date basis, revenue and net margin were up $155.4 million and $59.2 million, respectively. The increase is primarily attributable to 622 lots and 236 acre sales in 2024, which includes 146 acres of land sold in Edmonton in the first half of 2024, and condominium occupancies at Brightwater. Revenue and net margins were partially offset by lower condominium occupancies at Phase 2 of Riverside Square in comparison to 2023 and minimal margin recognized on IVY Condos. In the fourth quarter of 2024, we achieved 399 lot sales and 72 acres sales primarily across our Eastbrook and Holmwood communities in Regina and Saskatoon. As of February 24, 2025 we have $104 million in land commitments for sales in 2025. On December 17, 2024, the City of Toronto announced the waiver of development charges on selected projects to support the advancement of purpose-built rentals across the city. Both Phase 1 at Quayside and 49 Ontario were named as part of this development charge waiver for a combined 2,500 units (at 100% project level). The savings achieved from this waiver directly improves the project viability and better positions construction start for these developments to be accelerated. We continue to make progress on innovative financing solutions for both of these projects. Our Brighton community in Saskatoon is growing rapidly, with the completion of The Teal and a portion of Blocks 166 and JK in the fourth quarter, adding 144 units to our recurring income portfolio. The recently completed developments are 93% leased as of February 24, 2025. We expect to continue or commence construction on 500 units within Brighton and our first 168-unit purpose-built rental in Alpine Park in Calgary in 2025. We have finalized a purchase and sale agreement for 13 acres to the City of Saskatoon for a high school in our Holmwood community, subject to city council approval at the end of March. We believe this will accelerate builder, residential rental and retail interest in our unsold lands in the community over the coming years and be an integral part of the master-planned community. A summary of our consolidated results for the year ended December 31, 2024 is included in the table below. For the three months ended December 31, For the year ended December 31, (in thousands of dollars, except number of shares and per share amounts) 2024 2023 2024 2023 Revenue $ 192,259 $ 107,858 $ 624,506 $ 386,947 Net margin $ 63,102 $ 26,380 $ 158,213 $ 85,870 Net margin (%) (1) 32.8% 24.5% 25.3% 22.2% Earnings (loss) before income taxes $ 170,731 $ (77,557) $ 225,373 $ (119,790) Dream standalone FFO per share (1) $ 1.22 $ 0.56 $ 2.86 $ 1.37 Dream consolidated FFO per share (1) $ 1.44 $ 0.43 $ 2.63 $ 0.91 Adjusted Dream standalone FFO per share (1) $ 4.97 $ 0.56 $ 6.60 $ 1.37 December 31, 2024 December 31, 2023 Total assets $ 3,921,052 $ 3,875,522 Total liabilities $ 2,419,523 $ 2,471,463 Total equity $ 1,501,529 $ 1,404,059 Total issued and outstanding shares 42,056,218 42,240,010 Earnings before income taxes for the fourth quarter was $170.7 million, an increase of $248.3 million from the comparative period. The increase was primarily attributable to the $157.4 million gain on sale of Arapahoe Basin, the timing of lot sales and higher acre sales in Western Canada in the fourth quarter of 2024, and losses attributable to an accounting write-down taken on Dream Office REIT units in 2023 with lower comparable losses taken in 2024. Earnings before income taxes for the year ended December 31, 2024 was $225.4 million, an increase of $345.2 million from the comparative period. The comparative period included accounting losses on the sale of 7.0 million Dream Office REIT units with no similar dispositions in the current period. The increase is also attributable to the aforementioned sale of Arapahoe Basin and increased lot and acre sales, including 146 acres sold in Edmonton in the first half of 2024 with no comparable activity in 2023. In addition, lower fair value losses were recognized on both our commercial retail and multi-family residential rental properties in the Greater Toronto Area and Western Canada. Higher pre-tax earnings were partially offset by lower fair value gains on the liability for Dream Impact Trust. Dream standalone funds from operations (1) ('FFO') for the three months ended December 31, 2024 was $1.22 per share, on a pre-tax basis, up from $0.56 per share in the comparative period for the aforementioned reasons. Dream standalone FFO (1) for the year ended December 31, 2024 was $2.86 per share, on a pre-tax basis, up from $1.37 per share in the comparative period. The increase is primarily attributable to the aforementioned factors and includes parcel sales in Edmonton, carried interest earned related to the Dream US Industrial Fund and stronger results at Arapahoe Basin up to August 31, 2024. Including the gain on sale of Arapahoe Basin, adjusted Dream standalone FFO was up $4.41 and $5.23 per share on a quarter and year-to-date basis. As of December 31, 2024, we had available liquidity (1) of $366.9 million, up from $256.6 million of September 30, 2024 and we returned $67.3 million to Dream shareholders over 2024. Maintaining strong liquidity remains a top priority with fast changing economic conditions and allows us to be well positioned for new investments as they arise. We expect to finalize the refinancing of our $225 million term facility and $320 million Western Canada operating line by the end of the first quarter of 2025, extending the maturity to 2028. Subsequent to the fourth quarter, the Company's Board of Directors approved an increase to the annual dividend per Class A Subordinate Voting Share and Class B Common Share from $0.60 per share to $0.65 per share ($0.1625 quarterly), effective with the dividend payable on March 31, 2025 to shareholders of record on March 14, 2025. Conference Call Senior management will host a conference call to discuss the financial results on Wednesday, February 26, 2025, at 10:00 AM (ET). To access the conference call, please dial 1-844-763-8274 (toll free) or 647-484-8814 (toll). To access the conference call via webcast, please go to Dream's website at and click on the link for News, then click on Events. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call. Other Information Information appearing in this press release is a select summary of results. The financial statements and MD&A for the fourth quarter of 2024 for the Company are available at and on About Dream Unlimited Corp. Dream has an established and successful asset management business, inclusive of $27 billion of assets under management (1) as at December 31, 2024 across four Toronto Stock Exchange ('TSX') listed trusts, our private asset management business and numerous partnerships. We are a leading developer of exceptional real estate assets across Canada and Europe, including income properties that will be held for the long term as they are completed. We also develop land for sale in Western Canada. Dream has a proven track record for being innovative and for our ability to source, structure and execute on compelling investment opportunities. A comprehensive overview of our holdings is included in the 'Summary of Dream's Assets and Holdings' section of our MD&A for the fourth quarter of 2024. Non-GAAP Measures and Other Disclosures In addition to using financial measures determined in accordance with International Financial Reporting Accounting Standards as issued by the International Accounting Standards Board ('IFRS Accounting Standards'), we believe that important measures of operating performance include certain financial measures that are not defined under IFRS Accounting Standards. Throughout this press release, there are references to certain non-GAAP financial measures and ratios and supplementary financial measures, including Dream standalone FFO per share, Dream consolidated FFO per share, Dream standalone FFO, Dream consolidated FFO, Dream Impact Trust and consolidation and fair value adjustments, available liquidity, net operating income, standalone figures by division, fee earning assets under management and portfolio of stabilized properties, which management believes are relevant in assessing the economics of the business of Dream. These performance and other measures are not financial measures under IFRS Accounting Standards, and may not be comparable to similar measures disclosed by other issuers. However, we believe that they are informative and provide further insight as supplementary measures of financial performance, financial position or cash flow, or our objectives and policies, as applicable. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the management's discussion and analysis of Dream for the year ended December 31, 2024, dated February 25, 2025 (the 'MD&A for the fourth quarter of 2024') and can be found under the section 'Non-GAAP Ratios and Financial Measures', subheadings 'Dream standalone FFO' and 'Dream consolidated FFO', 'Dream standalone FFO per share' and 'Dream consolidated FFO per share', 'Net operating income' and 'Dream Impact Trust and consolidation and fair value adjustments'. The composition of supplementary financial measures included in this press release has been incorporated by reference from the MD&A for the fourth quarter of 2024 and can be found under the section 'Supplementary and Other Financial Measures'. The MD&A for the fourth quarter of 2024 is available on SEDAR+ at under Dream's profile and on Dream's website at under the Investors section. Non-GAAP Ratios and Financial Measures ' Dream Impact Trust and consolidation and fair value adjustments" represent certain IFRS Accounting Standards adjustments required to reconcile Dream standalone and Dream Impact Trust results to the consolidated results as at December 31, 2024 and December 31, 2023 and for the year ended December 31, 2024 and December 31, 2023. Management believes Dream Impact Trust and consolidation and fair value adjustments provides investors useful information in order to reconcile it to the Dream Impact Trust financial statements. Consolidation and fair value adjustments relate to business combination adjustments on acquisition of Dream Impact Trust on January 1, 2018 and related amortization, elimination of intercompany balances including the investment in Dream Impact Trust units, adjustments for co-owned projects, fair value adjustments to the Dream Impact Trust units held by other unitholders, and deferred income taxes. 'Dream standalone FFO', 'Adjusted Dream standalone FFO', 'Dream consolidated FFO' and 'Adjusted Dream consolidated FFO', are non-GAAP financial measures and are key measures of our financial performance. We use Dream standalone FFO and Dream consolidated FFO to assess operating results and the pre-tax performance of our businesses on a divisional basis. Dream standalone FFO is calculated as the sum of FFO for all of our divisions, excluding Dream Impact Trust and consolidation adjustments, and Dream consolidated FFO is calculated as Dream standalone FFO plus Dream Impact Trust and consolidation adjustments. Adjusted Dream standalone FFO and Adjusted Dream consolidated FFO include the gain on sale of Arapahoe Basin. We use Dream standalone FFO and Dream consolidated FFO, to assess operating results and the performance of our businesses on a divisional basis. The most directly comparable measure to Dream standalone FFO and Dream consolidated FFO is net income. The following table defines and illustrates how Dream standalone FFO is calculated by division: (in thousands of dollars, unless otherwise noted) For the three months ended December 31, For the year ended December 31, FFO by division: 2024 2023 2024 2023 Asset management (i) $ 9,451 $ 15,459 $ 38,337 $ 39,047 Dream group unit holdings (ii) 5,108 6,248 21,191 26,145 Stabilized assets - GTA/Ottawa 1,164 2,706 2,712 2,628 Stabilized assets - Western Canada (546) 4 2,198 3,258 Arapahoe Basin — (2,258) 15,792 7,284 Development - GTA/Ottawa 3,826 6,620 3,642 3,049 Development - Western Canada 39,876 3,945 73,551 15,664 Corporate & other (7,393) (8,871) (37,171) (38,678) Dream standalone FFO $ 51,486 $ 23,853 $ 120,252 $ 58,397 Dream Impact Trust and consolidation adjustments (iii) & fair value adjustments 9,236 (5,507) (9,695) (19,370) Dream consolidated FFO $ 60,722 $ 18,346 $ 110,557 $ 39,027 Add: Gain on disposition of Arapahoe Basin $ 157,362 $ — $ 157,362 $ — Adjusted Dream standalone FFO $ 208,848 $ 23,853 $ 277,614 $ 58,397 Adjusted Dream consolidated FFO $ 218,084 $ 18,346 $ 267,919 $ 39,027 Shares outstanding, weighted average 42,034,893 42,437,858 42,088,662 42,759,942 Dream standalone FFO per share $ 1.22 $ 0.56 $ 2.86 $ 1.37 Dream consolidated FFO per share $ 1.44 $ 0.43 $ 2.63 $ 0.91 Adjusted Dream standalone FFO per share $ 4.97 $ 0.56 $ 6.60 $ 1.37 (i) Asset management includes our asset and development management contracts with the Dream group of companies and management fees from our private asset management business, along with associated costs. Included in asset management for the three and twelve months ended December 31, 2024 are asset management fees from Dream Impact Trust received in the form of units of $444 and $1,685, respectively (three and twelve months ended December 31, 2023 - $472 and $3,454, respectively). These fees have been received in the form of units since April 1, 2019. Had the asset management fees been paid in cash, rather than in units, the fees earned for the three and twelve months ended December 31, 2024 would have been $3,761 and $15,243, respectively (three and twelve months ended December 31, 2023 - $3,618 and $13,980). (ii) Dream group unit holdings includes our proportionate share of funds from operations from our 31.3% effective interest in Dream Office REIT and 11.9% effective interest in Dream Residential REIT, along with distributions from our 36.8% interest in Dream Impact Trust. Included in Dream group unit holdings for the three and twelve months ended December 31, 2024 are distributions from Dream Impact Trust received in the form of units of $nil and $653, respectively (three and twelve months ended December 31, 2023 - $947 and $4,386, respectively). (iii) Included within consolidation adjustments in the three and twelve months ended December 31, 2024 are losses of $664 and income of $4,294, respectively, attributable to non-controlling interest (three and twelve months ended December 31, 2023 - $116 and $495, respectively, in losses). The following table reconciles Dream consolidated FFO to net income (loss): (in thousands of dollars, unless otherwise noted) For the three months ended December 31, For the year ended December 31, 2024 2023 2024 2023 Dream consolidated net income (loss) $ 129,088 $ (81,352) $ 187,858 $ (117,079) Financial statement components not included in FFO: Fair value changes in investment properties 9,308 29,450 24,398 57,279 Fair value changes in financial instruments (3,688) 1,138 (1,950) 691 Gain on sale of Arapahoe Basin (157,362) — (157,362) — Share of loss from Dream Office REIT and Dream Residential REIT 36,254 74,824 28,044 183,098 Fair value changes in equity accounted investments 2,297 (6,090) 4,861 (8,261) Adjustments related to Dream Impact Trust units (3,691) (16,312) (26,891) (107,427) Adjustments related to Impact Fund units 939 5,925 (9,828) 3,561 Depreciation and amortization 826 2,034 3,374 8,117 Income tax (recovery) expense 41,643 3,795 37,515 (2,711) Share of Dream Office REIT FFO 4,414 4,424 18,172 19,568 Share of Dream Residential REIT FFO 694 510 2,366 2,191 Dream consolidated FFO $ 60,722 $ 18,346 $ 110,557 $ 39,027 'Dream standalone FFO per share', 'Adjusted Dream standalone FFO per share' and 'Dream consolidated FFO per share' are non-GAAP ratios. Dream standalone FFO per share is calculated as Dream standalone FFO divided by the weighted average number of Dream shares outstanding. Adjusted Dream standalone FFO per share is calculated as Adjusted Dream standalone FFO divided by the weighted average number of Dream shares outstanding. Dream consolidated FFO per share is calculated as Dream consolidated FFO divided by weighted average number of Dream shares outstanding. We use these ratios to assess operating results and the pre-tax performance of our businesses on a per share basis. Dream standalone FFO per share and Dream consolidated FFO per share for the year ended December 31, 2024 and 2023 are shown in the table included under the 'Funds From Operations' section of the MD&A for the fourth quarter of 2024. Adjusted Dream standalone FFO per share is reconciled above. ' Net operating income" is a non-GAAP measure and represents revenue, less (i) direct operating costs and (ii) selling, marketing, depreciation and other indirect costs, but including: (iii) depreciation; and (iv) general and administrative expenses. The most directly comparable financial measure to net operating revenue is net margin. This non-GAAP measure is an important measure used by management to assess the profitability of the Company's recurring income segment. Net operating income for the recurring income segment for the year ended December 31, 2024 and 2023 is calculated and reconciled to net margin as follows: For the three months ended December 31, For the year ended December 31, 2024 2023 2024 2023 Net margin $ 20,335 $ 23,299 $ 93,995 $ 75,732 Add: Depreciation 491 1,361 2,107 5,895 Add: General and administrative expenses 742 968 2,058 3,175 Net operating income $ 21,568 $ 25,628 $ 98,160 $ 84,802 'Standalone Figures by Division' is a non-GAAP measure and represents the results of Dream, excluding the impact of Dream Impact Trust's consolidated results and IFRS Accounting Standards adjustments to reflect Dream's direct ownership of our partnerships. Direct ownership refers to Dream Unlimited Corp.'s interest in subsidiaries and partnerships and excludes any non-controlling interest in the noted entities based on units held as of the end of the reporting period. The most direct comparable financial measure to Dream standalone is consolidated Dream. This non-GAAP measure is an important measure used by the Company to evaluate earnings against historical periods, including results prior to the acquisition of control of Dream Impact Trust. For the three months ended December 31, 2023 Asset Management Income Properties (i) Urban Development Western Canada Development Corporate Total Standalone Add: Dream Impact Trust and IFRS adjustments Consolidated Dream Revenue $ 23,800 $ 20,830 $ 20,539 $ 33,304 $ — $ 98,473 $ 9,385 $ 107,858 Direct operating costs (7,036) (17,298) (18,469) (23,261) — (66,064) (5,250) (71,314) Gross margin 16,764 3,532 2,070 10,043 — 32,409 4,135 36,544 Selling, marketing, depreciation and other operating costs — (2,680) (2,515) (5,228) — (10,423) 259 (10,164) Net margin 16,764 852 (445) 4,815 — 21,986 4,394 26,380 Fair value changes in investment properties — 1,734 (6,820) 2,296 — (2,790) (26,660) (29,450) Investment and other income (261) 711 6,152 655 (607) 6,650 439 7,089 Interest expense (12) (4,027) 1,304 (1,577) (3,067) (7,379) (7,541) (14,920) Share of earnings from equity accounted investments (ii) (7,270) 46 — — (72,935) (80,159) 13,364 (66,795) Net segment earnings (loss) 9,221 (684) 191 6,189 (76,609) (61,692) (16,004) (77,696) General and administrative expenses — — — — (9,972) (9,972) (276) (10,248) Adjustments related to Dream Impact Trust units — — — — — — 16,312 16,312 Adjustments related to Dream Impact Fund units — — — — — — (5,925) (5,925) Income tax (expense) recovery — — — — 2,747 2,747 (6,542) (3,795) Net earnings (loss) $ 9,221 $ (684) $ 191 $ 6,189 $ (83,834) $ (68,917) $ (12,435) $ (81,352) (i) Income properties includes results attributable to Arapahoe Basin for the period. (ii) The loss in share of earnings from equity accounted investments within Corporate relates to an impairment loss of $72,935 from Dream Office REIT. For the year ended December 31, 2024 Asset Management Income Properties (i) Urban Development Western Canada Development Corporate Total Standalone Add: Dream Impact Trust and IFRS adjustments Consolidated Dream Revenue $ 74,929 $ 101,952 $ 74,979 $ 263,414 $ — $ 515,274 $ 109,232 $ 624,506 Direct operating costs (33,635) (63,718) (64,919) (163,922) — (326,194) (96,655) (422,849) Gross margin 41,294 38,234 10,060 99,492 — 189,080 12,577 201,657 Selling, marketing, depreciation and other operating costs — (3,813) (11,361) (24,113) — (39,287) (4,157) (43,444) Net margin 41,294 34,421 (1,301) 75,379 — 149,793 8,420 158,213 Fair value changes in investment properties — 104 (8,312) 12,101 — 3,893 (28,291) (24,398) Investment and other income (1,272) 1,841 8,249 4,137 2,718 15,673 2,243 17,916 Interest expense (917) (17,695) (3,487) (6,459) (17,516) (46,074) (32,318) (78,392) Gain on disposition of Arapahoe Basin — 157,362 — — — 157,362 — 157,362 Share of earnings from equity accounted investments (32,034) — — — — (32,034) 12,903 (19,131) Net segment earnings (loss) 7,071 176,033 (4,851) 85,158 (14,798) 248,613 (37,043) 211,570 General and administrative expenses — — — — (20,739) (20,739) (2,177) (22,916) Adjustments related to Dream Impact Trust units — — — — — — 26,891 26,891 Adjustments related to Dream Impact Fund units — — — — — — 9,828 9,828 Income tax (expense) recovery — — — — (48,684) (48,684) 11,169 (37,515) Net earnings (loss) $ 7,071 $ 176,033 $ (4,851) $ 85,158 $ (84,221) $ 179,190 $ 8,668 $ 187,858 (i) Income properties includes results attributable to Arapahoe Basin for the period. For the year ended December 31, 2023 Asset Management Income Properties (i) Urban Development Western Canada Development Corporate Total Standalone Add: Dream Impact Trust and IFRS adjustments Consolidated Dream Revenue $ 71,124 $ 98,047 $ 47,895 $ 135,051 $ — $ 352,117 $ 34,830 $ 386,947 Direct operating costs (32,599) (70,089) (44,492) (94,092) — (241,272) (20,480) (261,752) Gross margin 38,525 27,958 3,403 40,959 — 110,845 14,350 125,195 Selling, marketing, depreciation and other operating costs — (8,588) (8,580) (20,868) — (38,036) (1,289) (39,325) Net margin 38,525 19,370 (5,177) 20,091 — 72,809 13,061 85,870 Fair value changes in investment properties — (578) (5,984) 2,068 — (4,494) (52,785) (57,279) Investment and other income (1,111) 646 9,979 2,568 (16) 12,066 449 12,515 Interest expense (23) (13,405) (2,247) (7,803) (12,595) (36,073) (32,228) (68,301) Share of earnings from equity accounted investments (ii) (23,180) 46 — — (161,139) (184,273) 18,967 (165,306) Net segment earnings (loss) 14,211 6,079 (3,429) 16,924 (173,750) (139,965) (52,536) (192,501) General and administrative expenses — — — — (29,929) (29,929) (1,226) (31,155) Adjustments related to Dream Impact Trust units — — — — — — 107,427 107,427 Adjustments related to Dream Impact Fund units — — — — — — (3,561) (3,561) Income tax (expense) recovery — — — — 8,788 8,788 (6,077) 2,711 Net earnings (loss) $ 14,211 $ 6,079 $ (3,429) $ 16,924 $ (194,891) $ (161,106) $ 44,027 $ (117,079) (i) Income properties includes results attributable to Arapahoe Basin for the period. (ii) The loss in share of earnings from equity accounted investments within Corporate relates to $88,204 in accounting losses taken on the sale of Dream Office REIT units and an impairment loss of $72,935 from Dream Office REIT. Forward-Looking Information This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements regarding our objectives and strategies to achieve those objectives; our beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, future growth, expected net proceeds from sales or transactions, results of operations, performance, business prospects and opportunities, acquisitions or divestitures, tenant base, future maintenance and development plans and costs, capital investments, financing, the availability of financing sources, income taxes, vacancy and leasing assumptions, litigation and the real estate industry in general; as well as specific statements in respect of our expectations regarding our ability to pursue opportunities to grow; our expectations regarding the performance of Western Canada division; our ability to grow our income property division and achieve scale; our ability to maintain strong liquidity and our expectation that we will be able to weather unexpected disruptions and be well positioned for new investments as they arise; our ability to achieve leasing and construction targets; our expectations regarding our asset management division, including expected growth; our development plans, including sizes, uses, density, number of units, amenities and timing thereof; our expectation that we will add over 2,600 residential rental units to our portfolio through 2027; expectations regarding the sale of assets and land; our ability to consummate land commitments, and use of proceeds and timing thereof and the impacts of any sales on interest in our communities; our occupancy targets; our ability to achieve financing solutions for Quayside and 49 Ontario and impacts of such financing on construction timing; the growth of our Brighton community and our expectations regarding construction timing; our expectations and ability to finalize the refinancing of our indebtedness including our $225 million term facility and $320 million Western Canada operating line, including timing and extension terms; our expectations about our liquidity in future periods. 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 Dream's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These assumptions include, but are not limited to: the nature of development lands held and the development potential of such lands, interest rates and inflation remaining in line with management expectations, our ability to bring new developments to market, anticipated positive general economic and business conditions, including low unemployment and interest rates, that duties, tariffs and other trade restrictions, if any, will not materially impact our business, positive net migration, oil and gas commodity prices, our business strategy, including geographic focus, anticipated sales volumes, performance of our underlying business segments and conditions in the Western Canada land and housing markets. Risks and uncertainties include, but are not limited to, general and local economic and business conditions, the impact of public health crises and epidemics, employment levels, risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, international sanctions and the disruption of movement of goods and services across jurisdictions, inflation or stagflation, regulatory risks, mortgage and interest rates and regulations, risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates, risks related to the imposition of duties, tariffs and other trade restrictions and their impacts, environmental risks, consumer confidence, seasonality, adverse weather conditions, reliance on key clients and personnel and competition. All forward-looking information in this press release speaks as of February 25, 2025. Dream does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR+ ( Endnotes: (1) Dream standalone FFO per share, Adjusted Dream standalone FFO per share, and Dream consolidated FFO per share are non-GAAP ratios. Dream Impact Trust and consolidation and fair value adjustments, Dream standalone FFO, Adjusted Dream standalone FFO, Dream consolidated FFO, portfolio of stabilized properties and net operating income are non-GAAP financial measures. Such measures are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers. The most directly comparable financial measures to Dream Impact Trust and consolidation and fair value adjustments, Dream standalone FFO and Dream consolidated FFO is net income. The most directly comparable financial measures to portfolio of stabilized properties and net operating income is net margin. Assets under management, fee earning assets under management, net margin (%), and available liquidity are supplementary financial measures. Refer to the 'Non-GAAP Measures and Other Disclosures' section of this press release for further details. View source version on CONTACT: Dream Unlimited Corp. Meaghan Peloso Chief Financial Officer (416) 365-6322 [email protected] Lefever Director, Investor Relations (416) 365-6339 [email protected] KEYWORD: NORTH AMERICA CANADA INDUSTRY KEYWORD: PROFESSIONAL SERVICES RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY ASSET MANAGEMENT SOURCE: Dream Unlimited Corp. Copyright Business Wire 2025. PUB: 02/25/2025 10:10 PM/DISC: 02/25/2025 10:10 PM
