Dream Impact Trust Reports Second Quarter 2025 Results

Executive Summary

• Dream Impact Trust reported a net loss of $16.5 million for the second quarter of 2025 (ended June 30, 2025), a significant increase from the $4.8 million loss in the prior year period, driven primarily by fair value adjustments and lower deferred tax recovery.
• The Trust's multi-family rental portfolio showed strong operational growth, with same-property NOI increasing to $1.9 million from $1.5 million in the prior year, and occupancy reaching 94.5%.
• The commercial segment faced headwinds, with NOI dropping to $1.8 million from $4.3 million, resulting in $10.4 million in fair value losses for the quarter, including a $5.3 million loss on a Toronto commercial property sale agreement.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Net Loss: $16,510,000 (vs. $4,756,000 in 2024).
  • Net Loss Per Unit: $(0.90) (vs. $(0.27) in 2024).
  • Recurring Income NOI: $4,521,000 (vs. $6,029,000 in 2024).
  • Multi-family Rental NOI: $2,737,000 (vs. $1,707,000 in 2024).
• Financial Performance (Six Months Ended June 30, 2025):
  • Net Loss: $20,285,000 (vs. $10,178,000 in 2024).
  • Recurring Income NOI: $8,517,000 (vs. $10,199,000 in 2024).
  • Multi-family Rental NOI: $5,363,000 (vs. $3,158,000 in 2024).
• Balance Sheet Highlights (As of June 30, 2025):
  • Total Assets: $665,643,000.
  • Total Liabilities: $284,851,000.
  • Total Unitholders' Equity: $380,792,000 ($20.68 per unit).
  • Cash on Hand: $13.1 million.
  • Debt-to-Asset Value: 41.3%.
• Operational Metrics:
  • Multi-family portfolio comprised 2,973 units (at 100%) / 1,037 units (at share), with 85.8% leased.
  • Same property occupancy: 94.5%.
  • Multi-family debt weighted average term: 4.1 years; weighted average interest rate: 2.8%.
• Segment Specifics:
  • Recurring Income: Generated a net loss of $11.8 million. Included $10.4 million in fair value losses (including $5.3 million aligned with a sale agreement for a 25,000 sf Toronto property, $1.4 million from slower commercial leasing, $2.5 million from cap rate expansion/capital spend, and $1.4 million from Zibi costs).
  • Development: Reported a net loss of $1.9 million. Brightwater I and II units have substantially closed; over 90% of Towns and Mason units occupied. Cherry House Block 7 (47 units) completed and pre-leased.
  • Other: Net loss of $2.8 million, driven by deferred income tax recovery and lack of non-core investment sales proceeds compared to prior year.
• Liquidity and Debt:
  • Consolidated debt: $274.6 million.
  • Debt at proportionate share from equity accounted investments: $900.7 million.
  • $268.1 million of debt in equity accounted investments due in 2025.
  • $84.0 million of infrastructure debt renewals near completion; discussions ongoing for remaining $149.8 million of land loans.

Notable Quotes

• "While the multi-family segment of our business is progressing well, other segments are facing stressful headwinds... The value of our secondary commercial assets have consistently declined as the market for use and investment are currently unfavorable." — Michael Cooper, Portfolio Manager