Dream Industrial REIT Reports Strong Q3 2025 Financial Results

Executive Summary

• Dream Industrial REIT reported a strong Q3 2025, with diluted FFO per Unit up 4.3% YoY to $0.27 and CP NOI (constant‑currency) rising 6.4% YoY to C$103.8 million.
• Net rental income increased 8.8% YoY to C$98.4 million; net income surged to C$45.8 million from C$13.8 million a year earlier, driven by higher rents and acquisitions.
• The Trust closed C$107 million of wholly‑owned acquisitions and C$460 million in private‑venture purchases during 2025, added 2.8 million sq ft GLA, issued $200 million of Series G debentures, and maintained $828.5 million of available liquidity.

Key Details

• Financial Highlights (Q3 2025 vs Q3 2024)
• Diluted FFO per Unit: $0.27 ↑ 4.3% (from $0.26).
• CP NOI (constant‑currency): C$103.8 M ↑ 6.4% (from C$97.5 M).
• Net rental income: C$98.4 M ↑ 8.8% (from C$90.5 M).
• Net income: C$45.8 M ↑ 231% (from C$13.8 M).

• Total assets: C$8.47 B ↑ 4.2% YoY.

• Operating Metrics

• In‑place occupancy: 94.5% (up 40 bps QoQ).
• In‑place & committed occupancy: 95.4% (down 60 bps QoQ).

• New leases/renewals signed Q3: 2.0 M sq ft at weighted‑average rental spread of 28 % vs prior rents; Ontario spread 33.8 %, Québec 7.8 %, Canada overall 38 % (excl. renewal).

• Acquisitions & Dispositions

• Acquired Netherlands asset (88k sq ft) for C$11.6 M; yield on purchase price ≈ 8 %.
• Acquired GTA asset (192k sq ft) for C$59.9 M.
• Post‑quarter acquisition near Osnabrück, Germany (130k sq ft) for C$12.9 M; going‑in cap rate > 8 %.

• Dream Summit JV disposed two Edmonton assets totalling $25 M (DIR share $2.5 M) at a 13 % premium to IFRS value.

• Development & Value‑Add

• Completed 29k sq ft build‑to‑suit expansion in the Netherlands; extended tenant lease for an additional 10 years starting Q1 2026.
• Development JV signed lease for ~26 % of its 440k sq ft Cambridge, Ontario project (110k sq ft at Trust’s share) – 5‑year term commencing Q1 2026; projected yield on cost 6.6 %.

• Balzac, Alberta development: 53k sq ft lease signed (15 % of space), 11‑year term starting Q4 2025, rent mid‑$10 / sf with 2.5 % escalators.

• Solar & Power‑Capacity Initiatives

• Began construction on five new solar projects in Ontario, Alberta and the Netherlands; completed rooftop repower in Ottawa (1.2 MW) targeting 20 % yield.
• Completed Dutch solar build‑out adding >600 panels, targeting 9 % yield.

• Identified >120 MW additional solar potential (~C$190 M investment at >8 % yield).

• Financing Activity

• Issued $200 M Series G unsecured debentures at 4.287 % (fixed); entered cross‑currency swap to convert proceeds to euros, effective rate 3.726 % from Dec 22 2025.
• Net proceeds used to repay existing debt and pre‑fund December 2025 maturities.

• Renewed universal base shelf prospectus (25‑month term) and at‑the‑market equity program (up to $250 M).

• Liquidity & Leverage

• Available liquidity: $828.5 M (including $81.9 M cash; $250 M undrawn revolving credit).
• Net total debt‑to‑total assets: 38.7 % (up from 36.1 %).

• Net total debt‑to‑EBITDAFV: 8.1× (up from 7.0×).

• Conference Call

• Management will discuss results on Nov 5 2025 at 11:00 a.m. ET (dial‑in and webcast details provided).

Notable Quotes

“Dream Industrial reported a strong third quarter, delivering 4.3% FFO per Unit growth and 6.4% CP NOI growth… We remain focused on surfacing additional value from our capital recycling strategy by continuously upgrading the quality of our portfolio and re‑investing proceeds in accretive opportunities.” – Alexander Sannikov, President & CEO

“Having successfully addressed over 70% of our 2025 debt maturities, we are actively evaluating several refinancing alternatives for the remaining $250 M maturity in December… With total available liquidity of over $800 M, we retain strong financial flexibility.” – Lenis Quan, CFO