Dream Impact to reduce land loans to $210M in 2025

Executive Summary

• Dream Impact Trust provided a strategic business update focusing on liquidity improvement, debt reduction, and specific project developments, aiming to navigate current market challenges and increase trust value.
• The Trust plans to reduce land loans by $140-million in 2025, lowering the total from ~$350-million to $210-million, with further reductions targeted for 206 and beyond through asset sales and new loan facilities.
• Significant progress was reported on key development projects, including a partnership with CentreCourt for 49 Ontario St., advancement of the Quayside project, and ongoing construction of purpose-built rentals.

Key Details

• Liquidity and Debt Reduction:
  • Started 2025 with ~$350-million in land loans.
  • Expects to reduce land loans by $140-million in 2025, leaving a total of $210-million.
  • Remaining loans will be composed of individual sites in downtown Toronto and two master-planned communities: Zibi and Brightwater.
  • The ~40% reduction in land loans is expected to improve cash flow and liquidity for 2026 and beyond.
  • In 2026, the Trust intends to continue reducing land loans, sell most commercial assets, realize cash from passive investments, and sell select apartment buildings to concentrate on purpose-built rental buildings.
  • The Trust is in advanced discussions with multiple parties to provide a loan facility to support liquidity during this transition.
  • No new condominium buildings will be started other than those currently under way with presales (Forma and Bridge House at Brightwater), unless the condo market becomes more favorable.
• Portfolio and Construction Metrics:
  • Completed 500 purpose-built rental units.
  • 420 units currently under construction in Toronto and the National Capital Region.
  • Apartment portfolio margins are increasing as buildings approach stabilization.
• Project: 49 Ontario St.:
  • Progress made in 2025; expected to be under construction by Q4 2025.
  • Secured government-affiliated financing and a waiver of development charges from the City of Toronto.
  • Entered into an agreement to sell 10% of the project to CentreCourt, which will become the co-developer and construction manager.
  • Development plan supports a high-teen return on equity over a four-year construction period.
  • Trust owns an adjacent parcel of land not needed for development, expected to sell for over $10-million.
• Project: Quayside:
  • Working with Waterfront Toronto and the City of Toronto to advance development.
  • Returns expected to be similar to 49 Ontario St.
  • Approval and documentation process expected to be completed by year-end, with construction starting in 2026.
• Future Outlook:
  • Trust aims to have most elements of its business plan in place by year-end.
  • Will provide further information to investors as each step is completed.

Notable Quotes

• "The trust started the year with almost $350-million in land loans, which put a strain on its cash flow and liquidity."
• "The approximate 40-per-cent reduction in land loans will contribute to an improved cash flow and liquidity position for 2026 and beyond."
• "Dream believes that, with this partnership, it will be able to achieve very competitive construction costs furthering the financial viability of the project."