Dream Industrial REIT Reports Strong Q4 2025 and Year-End Financial Results

Executive Summary

• Dream Industrial REIT reported a 4.9% increase in diluted FFO per Unit to $1.05 for 2025 and a 5.3% quarterly rise to $0.27, indicating solid earnings growth despite higher debt costs.
• CP NOI (constant‑currency) grew 5.7% YoY to $404.9 M; net rental income rose 8.3% to $385.0 M, while net income fell due to fair‑value adjustments and incentive fees.
• The Trust completed a $610 M acquisition program, disposed of non‑strategic assets, and closed the first tranche of an $805 M sale to the DCI JV, generating $375 M proceeds used to repay debt and fund unit buybacks.

Key Details

• FFO Performance: Diluted FFO/Unit = $1.05 (2025) vs $1.00 (2024); Q4 2025 = $027 vs $0.26 (Q4‑24).
• CP NOI Growth: $404.9 M (2025) vs $383.0 M (2024); Q4 2025 = $107.1 M vs $98.8 M (Q4‑24).
• Occupancy: In‑place occupancy 95.5% (Dec 31 2025) up from 94.5%; in‑place + committed 96.2% vs 95.4% (Sept 30 2025).
• Leasing Activity: 1.2 M sq ft of development leasing; ~7.4 M sq ft new leases/renewals at 19.6% average spread YoY.
• Acquisitions: $610 M total acquisitions (incl. $165 M Trust share); added >2 M sq ft GLA. Notable: 130k sq ft near Osnabrück, Germany for $12.9 M; 65k sq ft Germany for $8.3 M.
• Dispositions: Sold Edmonton asset for $4.7 M; GTA West asset for $17.5 M. Initial DCI Portfolio (27 buildings, 3.6 M sq ft) sold to joint‑venture for $805 M (90% interest). First tranche closed Feb 5 2026 – net proceeds $375 M.
• Development: Completed four wholly‑owned projects adding 1.4 M sq ft GLA; redevelopment in Whitby, ON substantially completed (389k sq ft). Balzac greenfield developments fully leased (1 M sq ft) with 6.1% unlevered yield.
• Solar Program: 33 rooftop solar projects (26 MW) deployed $32 M; expected additional 120 MW (~$190 M) over medium term.
• Financing & Capital: Credit rating upgraded to BBB‑high; weighted‑average debt rate rose to 3.19% (up from 2.47%). Repayment of $450 M Series A debentures; swap of $200 M Series G debentures to euros at 3.726% fixed.
• Liquidity: Available liquidity $338.5 M (incl. $41.4 M cash); plus $250 M undrawn revolving facility. Including first‑tranche proceeds, total available liquidity $713.5 M.
• Unit Buybacks: 2,444,964 REIT Units repurchased for $32.0 M at $13.08 average price (as of Feb 13 2026).
• DRIP Suspension: Distribution Reinvestment and Unit Purchase Plan suspended effective Jan 15 2026; distributions to be paid cash only.

Notable Quotes

“We achieved solid fourth‑quarter and full‑year results. Our recent credit rating upgrade underscores the strength of our urban industrial portfolio and credit quality, which reduces our incremental cost of borrowing as we look to refinance upcoming debt maturities.” – Lenis Quan, CFO