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

Ms. Meaghan Peloso reports DREAM IMPACT TRUST PROVIDES A BUSINESS UPDATE Dream Impact Trust has provided a general business update on its liquidity, development and strategic initiatives. It believes it has made significant progress on its business plan with ambitious goals for the balance of the year. The trust is working through various initiatives to not only navigate the current market challenges but also increase its current value. The trust started the year with almost $350-million in land loans, which put a strain on its cash flow and liquidity. During 2025, it expects to reduce the land loans by $140-million. This will leave a total of $210-million, which will be composed of loans from individual sites in downtown Toronto and on the trust's two master-planned communities -- Zibi and Brightwater. The approximate 40-per-cent reduction in land loans will contribute to an improved cash flow and liquidity position for 2026 and beyond. In 2026, Dream will continue to seek opportunities to reduce the land loans further. As part of its plan to continue to increase liquidity for the trust, over the next five-year planning period, the trust intends to sell most of its commercial assets, realize cash from its passive investments and sell select apartment buildings as it improves the value and quality of the portfolio concentrated on the best new purpose-built rental buildings. Consistent with this goal, the trust is in advanced discussions with a number of parties to provide a loan facility, which will help with liquidity during this period. Its plan does not include starting any new condominium buildings other than the ones it currently has under way with presales -- Forma and Bridge House at Brightwater, which are set to commence construction shortly. If the condo market becomes more favourable and Dream can start new buildings at attractive returns, that will be an improvement to its plan. It has completed 500 purpose-built rentals within the trust, and it has another 420 units currently under construction in Toronto and the National Capital Region (all units at share). Each quarter, its apartment portfolio continues to contribute more to its margin. As the buildings approach stabilization, Dream expects this trend to continue. It has made progress on 49 Ontario St. this year, and it expects to be under construction by the fourth quarter. The government affiliated financing that has been secured and the waiver of development charges by the City of Toronto are a significant benefit to the project and render it financially feasible. It has entered into an agreement to sell 10 per cent of the project to CentreCourt, a first-class condominium developer, which is a long-term partner of Dream Unlimited Corp. and which will become the co-developer and construction manager of the project. Dream believes that, with this partnership, it will be able to achieve very competitive construction costs furthering the financial viability of the project. Earlier in the year, CentreCourt agreed to acquire an interest in the development in line with its international financial reporting standard value. In addition, the trust owns an adjacent parcel of land which is not needed for the development, expected to sell for over $10-million. Its development plan supports a high-teen return on equity over the planned four-year construction period, making the buildout, and completed 49 Ontario St. very valuable to the trust. It is currently working with Waterfront Toronto and the City of Toronto to advance Quayside toward development. The returns are expected to be similar to 49 Ontario St., and Quayside is an important public-private development in the City of Toronto. It is working through the approval and documentation process, which it expects to be completed by the end of the year, with construction to start in 2026. It is working toward having most of the elements of its business plan in place by year-end and will provide more information to its investors as it completes each step. About Dream Impact Trust Dream Impact is an open-ended trust dedicated to impact investing. Dream Impact's underlying portfolio is composed of exceptional real estate assets reported under two operating segments: development and recurring income, that would not be otherwise available in a public and fully transparent vehicle, managed by an experienced team with a successful record in these areas. The objectives of Dream Impact are to create positive and lasting impacts for stakeholders through three impact verticals: environmental sustainability and resilience, attainable and affordable housing, and inclusive communities. We seek Safe Harbor.