Dream Impact Trust Reports Fourth Quarter 2025 Results

Executive Summary

• Dream Impact Trust reported a Q4 2025 net loss of $23.5 M, widening from $8.3 M in the prior year, driven mainly by fair‑value adjustments and higher debt costs.
• The Trust secured 20‑year government‑affiliated financing for the 49 Ontario project, used part of the proceeds to repay an $80 M mortgage, and sold a 10 % interest in the same project for $6.5 M.
• Liquidity stands at $24.8 M cash plus $29.0 M available under the Dream loan; total debt is $282.4 M, with $56 M of land‑loan exposure expected to be reduced over the next 12 months.

Key Details

• Financial Performance (Q4 2025 vs Q4 2024)
• Net loss: $(23,463) k vs $(8,305) k YoY.
• NOI – recurring income: $4,203 k vs $4,560 k.
• NOI – multi‑family rental: $2,826 k vs $2,503 k.
• Net loss per unit: $(1.26) vs $(0.46).
• Balance Sheet (Dec 31 2025)
• Total assets: $646,004 k (down from $684,421 k).
• Total liabilities: $296,055 k (up from $283,180 k).
• Unitholders’ equity: $349,949 k (down from $401,241 k).
• Equity per unit: $18.55 vs $21.99 prior year.
• Liquidity & Debt
• Cash on hand: $5.4 M at year‑end; increased to $24.8 M by Feb 13 2026 after loan drawdowns and asset sale proceeds.
• Dream loan capacity raised to $50.0 M; $29.0 M available as of Feb 13 2026.
• Consolidated debt: $282.4 M (incl. $240.8 M maturing in 2026).
• Land‑loan exposure reduced by $94.6 M since 2024; further $56 M expected to be trimmed within 12 months.
• Project & Development Updates
• 49 Ontario: Demolition started Q4 2025; secured 20‑year financing; $80 M mortgage repaid; 10 % interest sold for $6.5 M; will move to equity‑accounted investments in Q1 2026.
• Quayside: Anticipated construction start by end‑2026, subject to financing milestones; expected to add ~1,500 units (including 400 affordable).
• Multi‑family portfolio: 2,973 units at asset level (1,037 share), 94 % occupied. Highlights – Maple House 96 % leased, Aalto II 87 % leased, Birch House transferred to recurring income after construction completion.
• Brightwater: Condo closings generated $14.9 M to repay construction loan; four phases (≈500 units) completed.
• Cherry House (Canary Landing): 855 units total, 213 at Trust’s share; Block 7 94 % leased.
• Odenak (Ottawa): Planned 608 units, completion targeted 2027.
• Segment Performance
• Recurring income segment loss: $(9.9) M vs $(2.5) M prior year.
• Multi‑family rental NOI up to $2.8 M (vs $2.5 M).
• Commercial NOI down to $1.4 M (vs $2.1 M).
• Development segment loss narrowed slightly to $(5.9) M from $(6.0) M.
• Other segment loss: $(7.6) M vs prior year income of $0.1 M.
• Non‑recurring Items
• Transaction costs on commercial property sale, property tax catch‑up at Zibi, settlement of 49 Ontario interest‑rate swap, fair‑value losses on convertible debentures and other assets.

Notable Quotes

“In 2025 and into early 2026, we have made significant advances on our strategic initiatives to enhance liquidity, progress our major development projects and to preserve and enhance value to the Trust.” – Michael Cooper, Portfolio Manager

All amounts are presented in thousands of Canadian dollars unless otherwise noted.