Dream Residential REIT Reports Q3 2025 Financial Results

Executive Summary

• Dream Residential REIT reported a Q3 2025 net loss of $(55.5) million, driven primarily by remeasurement losses on investment properties ($40.9 M) and fair‑value adjustments related to the pending acquisition.
• The REIT completed its strategic review and entered into an Arrangement Agreement with Morgan Properties, LP; unitholders will receive US$10.80 per unit (cash consideration) subject to customary withholdings.
• Portfolio occupancy stood at 93.7%, average monthly rent was $1,195/unit, and the REIT declared a distribution of $0.105 per unit for Q3 2025.

Key Details

• Financial Highlights – Q3 2025 (three months ended Sep 30, 2025)
• Net rental income: $7.8 M (flat YoY)
• Comparative properties NOI: $6.4 M, a 4.5% increase YoY
• Diluted FFO per Unit: $0.18 (unchanged YoY)
• Net loss: $(55.5) M vs. $(2.0) M in Q3 2024
• Re‑measurement losses on investment properties: $(40.9) M
• Fair‑value adjustments to financial instruments: $(5.5) M

• Transaction and strategic review costs: $(7.3) M

• Balance Sheet & Liquidity (as of Sep 30, 2025)

• Total equity (including Class B Units): $172.8 M, down from $240.5 M at Dec 31 2024
• NAV per Unit: $10.80 (down from $13.39)
• Net total debt‑to‑net total assets: 38.2% (up from 33.0%)

• Undrawn revolving credit facility: $54.0 M; total available liquidity: ≈$61.6 M

• Portfolio Metrics

• Number of assets: 15 (unchanged)
• Occupancy rate – in‑place: 93.7% (down from 95.2% Q2 2025)
• Average in‑place base rent per month: $1,195/unit (up from $1,186/Q2 2025)

• Tenant retention ratio: 59.9% (up from 57.4% Q2 2025)

• Operational Updates

• Completed renovations on 13 units in Greater Cincinnati; no suites under renovation at period‑end.

• Blended lease trade‑outs averaged 3.0%, with renewals at 4.7% and new leases at 0.3%.

• Transaction Details

• Arrangement Agreement filed Aug 21 2025; court approval received Oct 21 2025.
• Cash consideration: US$10.80 per Trust Unit and per Class B Unit, less applicable withholdings.

• Closing expected late 2025, subject to customary conditions.

• Distribution

• Declared distribution for Q3 2025: $0.105 per unit (total $0.315 per unit for the nine‑month period).

Notable Quotes

“The completion of our strategic review and the agreement with Morgan Properties positions Dream Residential REIT to deliver enhanced value to our unitholders while providing a clear path forward for the portfolio,” – Brian Pauls, Chief Executive Officer.