Dream Impact Trust Reports Third Quarter 2025 Results

Executive Summary

• Dream Impact Trust reported a net loss of $10.3 M for Q3 2025 versus $7.6 M in the prior year, driven primarily by deferred tax recovery, timing of condo occupancies and non‑recurring property tax assessments.
• Occupancy across purpose‑built rental assets rose to >90%, a 15 % increase since June 2025, with 1,344 units (420 at share) now in lease‑up and expected to boost recurring earnings.
• The Trust secured a $15 M secured loan from Dream Asset Management Corp. (10 % interest, five‑year term) and extended its $30 M Fairfax convertible debenture to 2031, enhancing liquidity while continuing to reduce land‑loan exposure by over $100 M.

Key Details

• Financial Performance – Q3 2025 vs. Q3 2024
• Net loss: $(10,297) K vs. $(7,550) K YoY.
• NOI – recurring income: $4,425 K (up from $4,213 K).
• NOI – multi‑family rental: $2,305 K (up from $2,044 K).

• Net loss per unit: $(0.56) vs. $(0.42) YoY.

• Nine‑Month Results (ended Sep 30, 2025)

• Net loss: $(30,582) K vs. $(17,728) K YoY.
• NOI – recurring income: $12,942 K (down from $14,412 K).

• NOI – multi‑family rental: $7,668 K (up from $5,202 K).

• Balance Sheet Highlights (Sep 30, 2025)

• Total assets: $656.9 M (down from $684.4 M).
• Total liabilities: $286.7 M (slightly up from $283.2 M).
• Unitholders’ equity: $370.2 M (down from $401.2 M).

• Equity per unit: $20.10 vs. $21.99 YoY.

• Liquidity & Debt Profile

• Cash on hand: $7.6 M.
• Consolidated debt: $274.5 M; proportionate share of equity‑accounted debt: $889.2 M.
• Debt‑to‑asset ratio: 41.8 % (up from 41.3 %).

• $15 M secured loan drawn to date: $2.0 M, interest 10 %, maturity five years; discussions underway to expand facility.

• Operational Updates

• Lease‑up occupancy now >90 % across Birch House, Maple House, Aalto II and Voda (1,344 units total).
• Demolition at 49 Ontario St slated to begin later this month; construction loan draws ($647.6 M) to follow.
• Development pipeline: Cherry House (855 units), Odenak (608 units), Mason (158 units) with expected completions 2026‑2027.

• Land‑loan exposure reduced by >$100 M; extensions on Zibi and Brightwater land loans with no repayment required.

• Segment Performance

• Recurring income segment net loss: $(6.1) M (vs. $(7.0) M YoY).
• Multi‑family rental same‑property NOI: $1.7 M, stable YoY; lease‑up NOI: $0.6 M vs. $0.3 M prior year.
• Commercial segment NOI: $2.1 M (down slightly from $2.2 M).

• Development segment net loss: $(1.4) M, reflecting fair‑value adjustments and condo occupancy timing.

• Future Outlook & Guidance

• Anticipated commencement of construction at 49 Ontario St and continued lease‑up activity to drive recurring income growth.
• Ongoing discussions with lenders to further extend/expand financing facilities.
• Management will host a conference call on Tuesday, November 4, 2025 at 10:00 am ET (toll‑free 1‑800‑715‑9871).

Notable Quotes

• “We have completed the extension of the Fairfax convertible debentures now maturing in 2031… and renewed or paid down over $100 million of loans,” – Michael Cooper, Portfolio Manager.
• “Despite difficult conditions in the housing market, we are advancing projects, leasing apartments and securing financing.” – Michael Cooper, Portfolio Manager.