Dream Unlimited Corp. Class A · TSX:DRM
Dream Unlimited Corp. Class A — Investor Day (September 2023)
160 slides from Dream Unlimited Corp. Class A's investor day presentation, Sep 6, 2023
Slide 1: Investor Presentation
1 Investor Presentation September 6, 2023 All numbers are as at June 30, 2023 unless otherwise stated. All currency is in Canadian dollars unless otherwise stated.
Slide 2: Michael Cooper
2 Michael Cooper Chairman & Chief Executive Officer
Slide 3: December 31, 2021 Net Asset Value per Share
Dream Unlimited Corp. 3 December 31, 2021 Net Asset Value per Share1 $60 NAV per Share 1 Other Western Canada Development $34 Urban Development Book Equity per Share Dream Group Unit Holdings Asset Management Investment & Rec Properties Dec-21
Slide 4: Comparison of December 31, 2021 vs. June 30, 2023 NAV
Dream Unlimited Corp. 4 1 Comparison of December 31, 2021 vs. June 30, 2023 NAV $60 NAV per share1 $58 NAV per share1 $34 $31 Book Equity per Share Book Equity per Share Dec-21 Jun-23 Investment & Rec Properties Asset Management Dream Group Unit Holdings Urban Development Western Canada Development
Slide 5: Presentation Overview
Presentation Overview 5 01 Dream Platform37 Insights A. Industrial B. Office C. Multi-Residential D. Recreational & Retail E. Urban Development F. Western Canada Development G. Asset Management Overview of Dream Platform Assets 02 Dream Office REIT 03 Dream Impact Trust 04 Dream Unlimited A. Our Bus
Slide 6: Dream Platform Highlights
6 Dream Platform Highlights
Slide 7: Platform Asset Classes
Dream Platform 7 Asset Classes Founded in 1994, with a vision to revolutionize the way people live and work, Dream has been responsible for some of the country’s most iconic and transformative projects. We invest with purpose, embrace innovation, and deliver strong returns while positively impacting
Slide 8: Lenis Quan
8 Lenis Quan CFO, Dream Industrial REIT
Slide 9: A. Industrial
9 $14.6B AUM2 Dream Platform Highlights A. Industrial
Slide 10: One of the Largest Industrial Platforms in Canada
Dream Platform | Industrial Assets 10 One of the Largest Industrial Platforms in Canada 9x increase in Industrial AUM2 since 2016 Acquisition of Total Industrial AUM ($B) Summit Industrial* $14.6 European Expansion & US Fund Launch $8.5 $7.1 $3.5 $2.1 $2.4 $1.6 $1.8 2016 2017 2018 2019 2020 2021 202
Slide 11: Attractive Market Fundamentals
Dream Platform | Industrial Assets 11 Attractive Market Fundamentals Mark to Market Low Vacancy Rent Growth Upside Vacancy across our markets Rising land value, low Rents have risen rapidly in the in the low single-digit range. availability and strong tenant last 24-36 months and demand led to renta
Slide 12: Development Pipeline
Dream Platform | Industrial Assets 12 Development Pipeline* Near-Term Pipeline Medium-to-Long Term Pipeline 25 ~6M sf 6.7% ~5M sf Sites GLA3 Target unlevered YOC4 GLA *Includes owned and managed properties in equity accounted investments. Courtney Park Redevelopment, Mississauga
Slide 13: Development Case Study
Dream Platform | Industrial Assets 13 Development Case Study Christoph-Seydel-Straße 1 Radeberg, Germany • 274,000 sf logistics facility on 30.4 acres located in Radeberg, Germany, adjacent to Dresden with 24’ clear height. • Increased property’s footprint by 241,000 sf with 34’ clear height, improv
Slide 14: Development Case Study
Dream Platform | Industrial Assets 14 Development Case Study 401 Marie Curie Boulevard Greater Montréal Area, QC • 527,000 sf Class A distribution facility in the Greater Montréal Area with a clear height of 30 ft • Situated on 38.4 acres with current site coverage of 32% Site Overview • Increased t
Slide 15: Multiple Return Drivers
Dream Platform | Industrial Assets 15 Multiple Return Drivers 8-11% 10-14% Target Net Levered Built-in upside Target Unlevered IRR5 IRR6 Most of the existing stock is under-rented as a Going-in yield result of rapid rental growth over the past 12-24 months resulting in embedded upside on top of infl
Slide 16: Gord Wadley
16 Gord Wadley Chief Operating Officer
Slide 17: B. Office
17 $2.7B AUM2 Dream Platform Highlights B. Office
Slide 18: Elevated Vacancy & Supply of New Builds
Dream Platform | Office Assets 18 Elevated Vacancy & Supply of New Builds • Since COVID, downtown Toronto vacancy (including sublet) has increased from 2% to 16% • Nearing the end of construction cycle with current construction back to 2018 levels, and no new office projects to be built National Off
Slide 19: Slower Return to Office & Flight to Quality
Dream Platform | Office Assets 19 Slower Return to Office & Flight to Quality • CBRE estimates 85% of all new leases signed in 2022 in Toronto were in furnished / built-out suites • Face rents are high, but new lease cost doubled on higher construction/labour costs and more extensive buildouts • Ten
Slide 20: More Challenging Financing Environment
Dream Platform | Office Assets 20 More Challenging Financing Environment • Cost of debt has increased, with Government of Canada (“GOC”) yields up 300+ bps since the beginning of 2020 • Lenders are more selective on location, quality and sponsorship of office assets 10-Year GoC Yield 4.0% 3.5% 3.0%
Slide 21: Highest and Best-use Shifting to Resi/Mixed-use
Dream Platform | Office Assets 21 Highest and Best-use Shifting to Resi/Mixed-use in Core Locations • Office valuation uncertainty leading to exploration of higher and best use • Dream owns assets in Toronto with 3+ million sf approved residential density • Secure partnerships and JVs; expected to u
Slide 22: Jamie Cooper
22 Jamie Cooper Portfolio Manager, Dream Impact Fund
Slide 23: C. Multi-Residential
23 $2.6B AUM2 Dream Platform Highlights C. Multi-Residential
Slide 24: Multi-Residential Assets
Dream Platform 24 Multi-Residential Assets We invest in multi- residential rental assets through various strategies and are active throughout North America 8,900 $2.6B units AUM2 177 St. George St., Toronto
Slide 25: Investment Strategies
Dream Platform | Multi-Residential Assets 25 Investment Strategies Affordable Market Purpose- GTA Value-Add Market Purpose- U.S. Garden-Style Purpose-Built Built Rental Rental Built Rental Housing (Urban Development) Rental (Western Canada) (Urban Development) Brownfield mid- and Newly built Assets
Slide 26: GTA Value-Add Rental
Dream Platform | Multi-Residential Assets 26 GTA Value-Add Rental 262 Jarvis 70 Park Street East Robinwood Portfolio Weston Common Toronto, ON Mississauga, ON Toronto, ON Toronto, ON Mid-sized, Art Deco style A value-add apartment Nine building apartment Two-tower mixed-use building neighbouring bui
Slide 27: Affordable Purpose-Built Rentals (RCFi)
Dream Platform | Multi-Residential Assets 27 Affordable Purpose-Built Rentals (RCFi) We have de-risked our development business without sacrificing returns by securing below-market, fixed-rate debt. 1,935 ~30% Total residential Affordable units residential units $1.2B 79% Stabilized Asset Loan to va
Slide 28: Western Canada Market PBR Returns
Dream Platform | Multi-Residential Assets 28 Western Canada Market PBR Returns The purpose-built rentals that we develop in Western Canada aim to generate mid-teen IRRs and healthy development spreads with land at market value, while simultaneously realizing the land profit and requiring little to n
Slide 29: Target Economics of Multi-Residential Strategies
Dream Platform | Multi-Residential Assets 29 Target Economics of Multi-Residential Strategies Target Target Target Debt Target Cap Development Target IRR6 Interest Rate20 Leverage11 Rate14 Yield17 Urban Affordable 3.85% 4.6% 1.80% 80% 12-15% PBR GTA Value-Add 3.50% n/a 3.2% 70% 12-15% Urban Market P
Slide 30: D. Recreational & Retail
30 Dream Platform Highlights D. Recreational & Retail
Slide 31: Recreational and Retail Assets
Dream Platform | Recreational and Retail Assets 31 Recreational and Retail Assets Arapahoe Basin Ski Hill Boutique Hotels Retail Dillon, CO Toronto & Newmarket, ON Various Arapahoe Basin is a ski area with Our hotel portfolio is comprised Our retail assets enhance our 1,400+ acres of terrain and has
Slide 32: Arapahoe Basin Ski Hill
Dream Platform | Recreational Assets 32 Arapahoe Basin Ski Hill $1.5 million 1,428 Purchase price Acres of terrain 400,000+ 9 Annual skier visits Ski lifts Arapahoe Basin Dillon, CO • Uncorrelated to the real estate market • Unencumbered asset • Newest ski lift infrastructure in North America • Has
Slide 33: Boutique Heritage Hotel Portfolio
Dream Platform | Recreational Assets 33 Boutique Heritage Hotel Portfolio Opening Fall 2023 Broadview Hotel Gladstone House Postmark Hotel Downtown Toronto, ON Downtown Toronto, ON Newmarket, ON 50% 50% 50% economic ownership economic ownership economic ownership 58 55 55 Rooms Rooms Rooms
Slide 34: Distillery District
Dream Platform | Retail Assets 34 Distillery District 2004 62.5% year acquired owned by Dream 395,000 sf leasable area The Distillery District Toronto Internationally acclaimed village comprised of office and retail, blending heritage Victorian Industrial architecture with 21st century design. One o
Slide 35: Brighton Marketplace
Dream Platform | Retail Assets 35 Brighton Marketplace Brighton Marketplace Saskatoon, SK 50% 222,000 sf economic ownership GLA
Slide 36: E. Urban Development
36 Dream Platform Highlights E. Urban Development
Slide 37: Tsering Yangki
37 Tsering Yangki EVP, Real Estate Finance & Development
Slide 38: World-Class Development Portfolio Across Toronto
Dream Platform | Urban Development 38 World-Class Development Portfolio Across Toronto 150 development professionals across our development platform
Slide 39: Development at Scale in Toronto's Downtown East
Dream Platform | Urban Development 39 Development at Scale in Toronto’s Downtown East 70+ acres BLK 14 BLK 15 BLK 16 BLK 4 Canary District: 35 acres of development by Canary Landing: 9 acres Dream and its partners BLK 13 BLK 12 BLK 4 BLK 11 BLK 3 BLK 10 BLK 7 BLK 8 Distillery District: 13 acres BLK
Slide 40: Development Highlight: Zibi
Dream Platform | Urban Development 40 Development Highlight: Zibi 34 acres 4M sf of real estate 2,600 residential units 5,000 residents
Slide 41: Jose Maldonado
41 Jose Maldonado VP, Corporate Finance
Slide 42: F. Western Canada Development
42 Dream Platform Highlights F. Western Canada Development
Slide 43: Western Canada Development
Dream Platform 43 Western Canada Development We have 9,000 acres of land available for development in Western 3,000 acres 3,300 acres Saskatoon, SK Regina, SK Canada Our most valuable land positions include 1,800 acres 900 acres Calgary, AB Edmonton, AB Brighton (Holmwood) in Saskatoon and Alpine Pa
Slide 44: Development Strategy
Dream Platform | Western Canada Development 44 Development Strategy Large Land Bank Master Planned Communities We have almost 9,000 acres of raw land which we We develop award-winning master planned acquired for a low cost base which could last 50 communities in markets with strong residential years
Slide 45: Development Highlight: Holmwood, Saskatoon
Dream Platform | Western Canada Development 45 Development Highlight: Holmwood, Saskatoon Holmwood Saskatoon Holmwood is the largest residential neighborhood under development in Saskatoon, and is made up of 9 neighbourhoods. 35,000 80,000 residential units future residents (Saskatoon’s current popu
Slide 46: Development Highlight: Brighton, Holmwood
Dream Platform | Western Canada Development 46 Development Highlight: Brighton, Holmwood Brighton Saskatoon +40% 600 acres 2026 market share of total development size substantial Brighton is the first of 9 greenfield developments completion by neighborhoods in Holmwood. in the city Dream Dream has d
Slide 47: Development Highlight: Brighton Village Centre
Dream Platform | Western Canada Development 47 Development Highlight: Brighton Village Centre Brighton Village Centre Saskatoon 25 acre 1,400 Unlimited We have completed 276 rental units and Village Centre expected purpose-built rentals ranging from development have another 468 units under construct
Slide 48: Development Highlight: Alpine Park, Providence
Dream Platform | Western Canada Development 48 Development Highlight: Alpine Park, Providence Alpine Park Calgary Southwest Calgary master planned community located 55 minutes from the mountains and 20 minutes from downtown. Calgary’s Ring Road was recently completed and two interchanges pass throug
Slide 49: Development Highlight: Alpine Park, Providence
Dream Platform | Western Canada Development 49 Development Highlight: Alpine Park, Providence 650 acres 2 6 total development size major interchanges pass neighbourhoods through lands Alpine Park, Calgary
Slide 50: Development Highlight: Alpine Park, Providence (Stage 1)
Dream Platform | Western Canada Development 50 Development Highlight: Alpine Park, Providence (Stage 1) 140 acres 2025 800 total development size expected substantial lots completion date Alpine Park Stage 1 Alpine Park Stage 1, Calgary
Slide 51: Development Highlight: Alpine Park, Providence
Dream Platform | Western Canada Development 51 Development Highlight: Alpine Park, Providence 200 acres total development size = 75 net acre parcels + 615 lots 1,300 Potential pipeline of rental units* Alpine Park Stage 2 Alpine Park Stage 3 Alpine Park Stage 2 & 3, Calgary * Potential pipeline of r
Slide 52: Case Study: Land Development Economics
Dream Platform | Western Canada Development 52 Case Study: Land Development Economics Alpine Village Centre Calgary This summer, we commenced land servicing for our next 200 acres in Alpine Village, which includes the Village Centre. Economic Highlights • Cost: $90K/acre; Est. FMV: $280K/acre • Yiel
Slide 53: G. Asset Management
53 Dream Platform Highlights G. Asset Management
Slide 54: Asset Management Overview
Dream Platform | Asset Management 54 Overview Dream has established a successful asset management platform, inclusive of $24 billion of assets under management2 across four TSX-listed trusts, our private funds and numerous partnerships. Dream Unlimited Corp. [TSX: DRM] Dream Dream Dream Dream Operat
Slide 55: Publicly Traded Vehicles
Dream Platform | Asset Management 55 Publicly Traded Vehicles Dream Impact Trust Dream Office REIT TSX: MPCT.UN $1.6 billion TSX: D.UN $2.7 billion total portfolio total assets MPCT.UN is Canada’s first D.UN is focused on owning, leasing assets* publicly traded vehicle focused and managing well loca
Slide 56: Private Vehicles
Dream Platform | Asset Management 56 Private Vehicles Dream Impact Fund Dream U.S. Dream U.S. Multi- Dream Summit Dream Impact Fund is one Industrial Fund family Industrial JV of the world’s first real Dream U.S. Industrial Fund Dream partnered with a Dream Industrial REIT estate impact funds, inves
Slide 57: Assets Under Management by Region
Dream Platform | Asset Management 57 Assets Under Management2 by Region Brighton Village, Saskatoon Our North American Investments Amsterdam, Netherlands Our European Investments 36 Toronto Street, Ontario Tillburg, Netherlands Creekwood Place, Texas Pohořelice, Czechia AUM2 by Region Q4/20 Q4/21 Ju
Slide 58: AUM by Asset Class
Dream Platform | Asset Management 58 2 AUM by Asset Class At Dream we continue to actively focus on diversifying our assets under management2. We have diversified away from managing predominantly office assets to industrial and residential rentals. $24 billion $18 billion $14.6 $13 billion $8.6 $1.6
Slide 59: Recurring Income Assets
Dream Platform | Overview of Dream Assets 59 Recurring Income Assets Direct Ownership38 Effective DRM Asset Asset Class Description DRM MPCT DIF D.UN DRR Ownership39 Dream Unlimited Ownership of Entity 32.6% 38.1% 30.3% 11.9% Arapahoe Basin Ski Hill 1,400 acres in Colorado, US 100% 0% 0% 0% 0% 100%
Slide 60: Development Assets
Dream Platform | Overview of Dream Assets 60 Development Assets Direct Ownership38 Effective DRM Asset Asset Class Description DRM MPCT DIF D.UN Ownership39 Dream Unlimited Ownership of Entity 32.6% 38.1% 30.3% Western Canada Land Development Land for development 9,000 acres in SK & AB 100% 0% 0% 0%
Slide 61: Jay Jiang
61 Jay Jiang CFO, Dream Office REIT
Slide 62: Dream Office REIT
62 Dream Office REIT
Slide 63: Q2 2023 Portfolio Snapshot
Dream Office REIT 63 Q2 2023 Portfolio Snapshot 29 5.1M sf 84% ~$25 psf 82% DT TOR buildings total GLA committed committed net rents fair value occupancy Weighted Annualized Committed Net Rents Average GLA (sf)* Assets* NOI**,24 Occupancy Rate** psf** Lease Term (“WALT”)** Toronto 3.2MM 20 $83.0 88%
Slide 64: Portfolio (I): Bay Street Collection
Dream Office REIT 64 Portfolio (I): Bay Street Collection 9 621K sf 6+ Years ~$35+ psf buildings GLA WALT net rents Curated portfolio of 9 buildings centrally located in the downtown core, recently undergone a $80M retrofit program that improved the building’s exterior curtain walls, lobbies, common
Slide 65: Portfolio (II): Health & Science
Dream Office REIT 65 Portfolio (II): Health & Science 3 715K sf ~100% ~6 Years buildings GLA occupancy WALT These assets are located within the Health & Sciences node of Downtown Toronto. The assets are nearly 100% occupied by healthcare, education and government tenants, with long term leases stabl
Slide 66: Portfolio (III): Central Business District Office
Dream Office REIT 66 Portfolio (III): Central Business District Office 5 1.7M sf ~90% $30s psf buildings GLA occupancy net rents Cluster of office assets located in Toronto’s financial core anchored by stable retail tenants. The assets are in close proximity to the underground PATH system, TTC subwa
Slide 67: Portfolio (IV): Redevelopment Properties
Dream Office REIT 67 Portfolio (IV): Redevelopment Properties $100M+ 3.3M+ sf ~$80 psf value created via rezoning zoned residential density at share current carrying value Three sites with over a combined 3 million+ sf of zoned residential density. Phase 1 of 2200 Eglinton, which is under contract (
Slide 68: Portfolio (V): Other Market IPP
Dream Office REIT 68 Portfolio (V): Other Market IPP 8 ~6 years ~1.4M sf ~$210 psf assets WALT GLA current carrying value Non-core assets located outside of the DT Toronto core (Mississauga, Calgary, Saskatchewan and US). Potential for sale at opportunistic prices to unlock liquidity. Kensington Hou
Slide 69: Illustrative Building Blocks…
Dream Office REIT 69 Illustrative Building Blocks… There is tremendous uncertainty to develop reasonable assumptions for the office market in the future. We are looking to create a tool using certain assumptions: • rents • leasing costs • interest rates • cap rates to illustrate potential future cas
Slide 70: Pre-COVID Historical Metrics
Dream Office REIT 70 Pre-COVID Historical Metrics Historical Renewal Probability Total Leasing Capital (psf) Net Rents Avg Occupancy Bay Street ~$20 ~$30 ~95% Health & Science ~$20 ~$20 ~100% CBD Office ~55% ~$20 ~$25 ~100% Redev’t Properties ~$20 ~$10 ~80% Other Markets IPP ~$30 ~$20 ~80% Toronto ~
Slide 71: Illustrative Building Blocks: 2023 - 2027
Dream Office REIT 71 Illustrative Building Blocks: 2023 - 2027 Estimated Total Leasing Estimated Estimated Avg Est. Retention Ratio Capital (psf) Net Rents Occupancy Bay Street ~$50 ~$40 ~80% Health & Science ~$35 ~$30 ~95% CBD Office ~40% ~$60 ~$30 ~80% Redev’t Properties ~$35 ~$20 ~80% Other Marke
Slide 72: Illustrative Building Blocks: 2028 – 2032+
Dream Office REIT 72 Illustrative Building Blocks: 2028 – 2032+ Estimated Total Leasing Estimated Estimated Avg Est. Retention Ratio Capital (psf) Net Rents Occupancy Bay Street ~$30 ~$45 ~90% Health & Science ~$35 ~$35 ~95% CBD Office ~75% ~$40 ~$40 ~90% Redev’t Properties ~$30 ~$25 ~80% Other Mark
Slide 73: Other Estimates and Expectations
Dream Office REIT 73 Other Estimates and Expectations Our investment in units of Dream Industrial REIT ($185M market value*) continues to 1 provide stable distributions and the market price of the units reflect growing income and asset values, and can be a source of immediate liquidity We do not exp
Slide 74: Illustrative Estimates on Cap Rates & Debt
Dream Office REIT 74 Illustrative Estimates on Cap Rates & Debt 8.00% Illustrative Office Cap Rate Based on Historical Spread 7.00% 7.00% 6.00% ~150-175 bps spread Illustrative Financing Rate Based on Historical Spread 5.25% 5.00% 4.00% ~175-200 bps spread Bloomberg Forward 10-Y GOCs* ~3.5% 3.00% 2.
Slide 75: Illustrative and Conceptual Returns
Dream Office REIT 75 Illustrative and Conceptual Returns Net Operating Income Cash Flows After Capital Cash Flows after Interest + DIR Distributions 200 150 100 50 0 -50 2024 2025 2026 2027 2028 2029 2030 2031 2032 Illustrative Value/sf ~$400-425 ~$450-500 Illustrative Cap Rate 6.9% 7.0% Illustrativ
Slide 76: Meaghan Peloso, Stephen Cleghorn
76 Meaghan Peloso Stephen Cleghorn CFO, Dream Impact Trust Associate VP, Portfolio Management
Slide 77: Dream Impact Trust
77 Dream Impact Trust
Slide 78: Recurring Income Segment Overview
Dream Impact Trust 78 Recurring Income Segment Overview Multi-Family Rental Commercial Canary Landing, Toronto National Sciences Building, Ottawa 15 97% 17 6.6 years Buildings June 2023 occupancy** Number of buildings WALT 440 45% 0.8M sf $22.84 Market residential units* Market spread to in- Commerc
Slide 79: Development Segment Overview
Dream Impact Trust 79 Development Segment Overview Downtown Toronto & GTA Ottawa/Gatineau Victory Silos & Quayside LeBreton & Zibi 17 acres of land on Toronto’s Waterfront Landmark projects in Canada’s capital 4,779 0.3M sf 1,008 1.0M sf Total residential units Commercial GLA* Total residential unit
Slide 80: Q2 2023 Adjusted NAV
Dream Impact Trust 80 Q2 2023 Adjusted NAV 25 June 2023 2022 Market Value Q2 2023 Adjusted Q2 2023 Adjusted Segments Unitholder’s Equity Adjustment ($M)26 NAV ($M) NAV per Unit25 ($M) Multi-family rental $88 $0 $88 $5.14 Commercial & other* $197 $0 $197 $11.48 Total Recurring $285 $0 $285 $16.63 Inc
Slide 81: Current Valuation
Dream Impact Trust 81 Current Valuation $35.00 NAV25 from the recurring income segment is over 1.5x the current unit price $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Q2 2023 Adjusted NAV per unit25 Recurring Income Development Current Unit Price Unitholder's Equity Per Unit • We believe that the
Slide 82: Potential Future Growth Drivers
Dream Impact Trust 82 Potential Future Growth Drivers We expect the existing development pipeline will continue to be the biggest driver of 1 NOI27 growth. We expect conservative market rent growth of ~3-4% per year on multi- family rental properties. Over the next 10 years, we expect to complete an
Slide 83: Expected Growth in Adjusted NAV Per-Unit After-Tax
Dream Impact Trust 83 Expected Growth in Adjusted NAV Per-Unit After-Tax 25 $60 $50 $40 $31.70 $30 $20 $10 $0 Q2 2023 Adjusted NAV Per Unit 2032 Recurring Income Development • By 2032, we expect the recurring income segment NAV to grow by over 2x assuming the completion of projects that are currentl
Slide 84: Return Potential for Investors
Dream Impact Trust 84 Return Potential for Investors Additional Upside Additional Upside $9.46* Current Unit Price 2032 • Using a conservative 40% discount to future NAV25, MPCT returns a very attractive IRR for investors based on today’s trading price, inclusive of distributions. *Unit price as at
Slide 85: Future Portfolio – Asset Allocation
Dream Impact Trust 85 Future Portfolio – Asset Allocation June 2023 2032 15% 24% 52% 57% 33% 19% Multi-family rental Commercial Development • By 2032, over 70% of MPCT’s assets are expected to be from the recurring income segment, improving the safety of the balance sheet and contributing meaningful
Slide 86: Increasing our Allocation to Multi-Family Rental
Dream Impact Trust 86 Increasing our Allocation to Multi-Family Rental 3,000 2,500 2,000 Units 1,500 1,000 500 0 June 2023 2032 Downtown Toronto & GTA Ottawa/Gatineau • By 2032, MPCT expects to own over 2,000 multi-family rental units at share, assuming the successful completion of West Don Lands, C
Slide 87: Growth in NOI from our Development Pipeline
Dream Impact Trust 87 Growth in NOI from our Development Pipeline NOI $17M Year to Date Annualized NOI* 2032 • Growth in NOI27 is driven by the completion of developments in our recurring income pipeline and conservative growth in market rents from existing properties. * Year to date Q2 NOI annualiz
Slide 88: Migrating to a Safer Debt Composition
Dream Impact Trust 88 Migrating to a Safer Debt Composition June 2023 2032 10% 15% 20% 30% 15% 64% 35% LTV 20% 25% 30% RCFi Debt CMHC / MLI Debt Conventional Mortgages Other Development Debt Corporate Debt • RCFi debt is CMHC-insured, non-recourse, long-term debt with low interest rates and no finan
Slide 89: Liquidity Considerations
Dream Impact Trust 89 Liquidity Considerations 1 As of June 30, 2023, Dream Impact had $34M of liquidity available. Major sources of cash over the next three-year period are expected to include proceeds 2 from development completions and land sales, which we expect would fully fund our development c
Slide 90: Break
90 Break
Slide 91: Dream Unlimited Corp.
91 Dream Unlimited Corp.
Slide 92: Our Business & Divisions
92 Dream Unlimited Corp. Our Business & Divisions
Slide 93: Overview of the Company
Dream Unlimited Corp. 93 Overview of the Company Dream Unlimited Corp. Recurring Income Development Income & Recreational Asset Dream Group Urban Development Western Canada Properties (incl. Management Unit Holdings (Toronto & Ottawa) Development Arapahoe Basin)
Slide 94: Overview of the Company
Dream Unlimited Corp. 94 Overview of the Company Dream Unlimited Corp. We develop master- Development planned communities from our large land bank We develop real estate which tends to have higher returns and produces Urban Development Western Canada irreplaceable assets for sale, to keep, (Toronto
Slide 95: Overview of the Company
Dream Unlimited Corp. 95 Overview of the Company Dream Unlimited Corp. Recurring Income We have assets that generate recurring income Income & Recreational These assets improve the safety, Asset Dream Group earnings quality, and value of the Properties Management Unit Holdings (incl. Arapahoe compan
Slide 96: A. Income & Recreational Properties
Design 96 Content Recurring Income A. Income & Recreational Properties
Slide 97: Growth in Cash Generated by Arapahoe Basin
Dream Unlimited Corp. 97 Growth in Cash Generated by Arapahoe Basin EBITDA ($ in millions) $111 yield per skier visit** 8% CAGR On yield per skier visit** * $14.9 $50 yield per skier visit** $4.2 2013 2023 Our efforts to improve the skier experience at Arapahoe Basin through changing pass programs a
Slide 98: Increasing NOI from Income & Recreational Properties
Dream Unlimited Corp. 98 Increasing NOI from Income & Recreational Properties Dream has an established track record of purchasing land at attractive prices. The increase in NOI13 as well as increased diversification of income producing assets both by asset class and geography illustrates our transit
Slide 99: B. Asset Management
99 Recurring Income B. Asset Management
Slide 100: 25+ Years of Real Estate Experience
Dream Unlimited Corp. 100 25+ Years of Real Estate Experience For over 25 years, we have demonstrated the ability to effectively allocate capital into new and compelling opportunities. Our active management strategies enable us to grow, unlock value, and recognize the opportune time to crystalize re
Slide 101: Proven Asset Management Track Record Growing our AUM
Dream Unlimited Corp. 101 2 Proven Asset Management Track Record Growing our AUM $10B $6B $1.5B $537M assets sold between returned to Dream Global returned to Dream received by DRM for our 2016-2023 REIT stakeholders28 Office REIT unitholders asset mgmt. contracts29 $25 $24 $20 $15 $ in billions $10
Slide 102: Income Contribution from Asset Management
Dream Unlimited Corp. 102 Income Contribution from Asset Management 30 * $37.6M $21.2M 2013 2023 * 2023 based on Q2-23 quarter-to-date annualized FFO31 from asset management fees.
Slide 103: C. Dream Group Unit Holdings
103 Dream Office REIT Dream Impact Trust Dream Residential REIT Units owned1 11.5M 5.6M 2.3M % ownership 30.3% 32.6% 11.9% Annual distribution ($)* $11.5M $3.6M $1.3M Our financial assets are comprised of our equity ownership in the Dream publicly traded entities, including Dream Impact Trust (TSX:
Slide 104: A. Western Canada Development
104 Development A. Western Canada Development
Slide 105: Cash Flow from Western Canada Land Division
Dream Unlimited Corp. 105 Cash Flow from Western Canada Land Division The division has generated ~$290 million in free cash flow over the past six years after all costs and we expect to generate similar cash flows going forward. The division is self-funded and we expect to continue to slowly reduce
Slide 106: Western Canada Development – Multi Residential Rentals
Dream Unlimited Corp. 106 Western Canada Development – Multi Residential Rentals We built our first traditional multi-family rental apartment in 2021 with 120 units in Brighton. Following our initial success, we have since expanded our development program to include new product offerings… Traditiona
Slide 107: B. Urban Development (Toronto & Ottawa)
Design 107 Content Development B. Urban Development (Toronto & Ottawa)
Slide 108: High-quality development assets with managed risk or capital exposure
Dream Unlimited Corp. 108 High-quality development assets with managed risk or capital exposure We have exposure to best-in-class 8.33% direct development assets that are well- located, with minimal direct ownership ownership on Dream’s balance sheet, in Forma which mitigates development risk and ca
Slide 109: Master-Planned Community Case Study: Canary District (Block 13)
Dream Unlimited Corp. 109 Master-Planned Community Case Study: Canary District (Block 13) 50% economic $65 psf $180 psf ownership cost base of land, est. FMV of land today acquired in 2016 in Canary District ~660K sf ~50% zoned density leverage on land loan with land at FMV ~$200M project level vert
Slide 110: What is Dream Worth?
110 Dream Unlimited Corp. What is Dream Worth?
Slide 111: Dream Valuation Approach
Dream Unlimited Corp. 111 Dream Valuation Approach A sum of the parts valuation is the most appropriate approach to derive the net asset value of Dream’s unique business segments Illustrative valuation approach points to a NAV1 of $58 per share Investment & Rec Dream Group Asset Management Propertie
Slide 112: June 30, 2023 Balance Sheet at Fair Market Value
Dream Unlimited Corp. 112 June 30, 2023 Balance Sheet at Fair Market Value Assets Standalone Adjustments Adjusted Net Asset Description * Standalone Value1 Investment properties are held at fair value & externally appraised while recreational Investment & Recreational Properties 1,332.7 (585.1) 747.
Slide 113: There is a lot of value not currently reflected in the share price
Dream Unlimited Corp. 113 There is a lot of value not currently reflected in the share price $58 June 30, 2023 Net Asset Value1 Other Western Canada Development Urban Development Dream Group Unit Holdings $20.91 Current Share Price* Asset Management Investment & Recreational Properties Based on an i
Slide 114: Valuation Approach
Dream Unlimited Corp. 114 Valuation Approach Investment & Recreational Assets EBITDA33 or Valuation Valuation Market Value Asset at Fair Assets NOI13 Asset at Book Value FMV Per Share Driver Methodology Adjustments34 Market Value (at share) Arapahoe $14.9M** 13x EBITDA33 $44.8M $148.7M $193.5M $4.52
Slide 115: Valuation Approach
Dream Unlimited Corp. 115 Valuation Approach Asset Management Q2-2023 Valuation Valuation Asset at Book Market Value Asset at Fair Assets FMV Per Share Annualized FFO31 Driver Methodology Value Adjustment34 Market Value Asset management $37.6M 18x FFO $43.0M $634.1M $677.1M $15.82 contracts Debt - -
Slide 116: Valuation Approach
Dream Unlimited Corp. 116 Valuation Approach Dream Group Unit Holdings32 Line Item in Units Market Price per Asset at Book Market Value Asset Standalone Trading Value Per Share Statements Owned Unit* Value Adjustment34 Dream Office Equity accounted 11.5 M $12.94 $301.2M ($152.8M) $148.4M $3.47 REIT
Slide 117: Valuation Approach
Dream Unlimited Corp. 117 Valuation Approach Western Canada Development Valuation Valuation Asset at Market value Asset at Fair Acres FMV Per Share Driver Methodology Book Value adjustments34 Market Value Land held for 8,730 $90,000 per acre $354.0M $431.7M $785.7M $18.36 development Land under 210
Slide 118: Valuation Approach
Dream Unlimited Corp. 118 Valuation Approach Urban Development Line Item in Total Density Asset at Fair Valuation Valuation Asset at Book Market Value Asset Standalone GFA Market Per Share Driver Methodology Value Adjustment34 Statements (at 100%) Value Equity accounted Canary Block 13 659,000 sf $1
Slide 119: Illustrative Sum of the Parts Valuation
Dream Unlimited Corp. 119 Illustrative Sum of the Parts Valuation Segments Book Equity Net Asset Value1 NAV Per Share1 Investment & Recreational Properties $295.8M $458.3M $10.71 Asset Management $43.0 $677.1 $15.82 Dream Group Unit Holdings $395.2 $167.9 $3.92 Urban Development $111.2 $225.6 $5.27
Slide 120: Comparison of December 31, 2021 vs. June 30, 2023 NAV
Dream Unlimited Corp. 120 1 Comparison of December 31, 2021 vs. June 30, 2023 NAV $60 NAV per share1 $58 NAV per share1 $34 $31 Book Equity per Share Book Equity per Share Dec-21 Jun-23 Investment & Rec Properties Asset Management Dream Group Unit Holdings Urban Development Western Canada Developmen
Slide 121: Our Strategy & Unlocking Future Value
121 Dream Unlimited Corp. Our Strategy & Unlocking Future Value
Slide 122: We have more than doubled our NAV since becoming a public company
Dream Unlimited Corp. 122 We have more than doubled our NAV since 1 becoming a public company …achieving a 10% annual return after tax including dividends. $58 2x $24 $8 $31 Book Equity per Share Book Equity per Share Jun-13 Jun-23
Slide 123: Over the next 10 years, we expect the value of our company to double
Dream Unlimited Corp. 123 Over the next 10 years, we expect the value of our company to double again based on our current plans and assets we currently own We expect to deliver a similar 10% annual return including dividends over the next decade. $58 $31 Book Equity per Share Jun-23 Dec-32 Disclaime
Slide 124: Expected Future Growth Business Drivers
Dream Unlimited Corp. 124 Expected Future Growth Business Drivers Target selling an average of 900 lots and 30 acres per year in western Canada while also 1 conservatively growing our net margin by 3% Target building 500 multi-residential rental units per year in western Canada and Zibi 2 (at Dream’
Slide 125: Shifting Our NAV Drivers from Development to Recurring Income
Dream Unlimited Corp. 125 Shifting Our Net Asset Value Drivers from 1 Development to Recurring Income We have diversified away from development to become a safer company with more of our value derived from recurring income assets. Our proportion of NAV1 from development decreased from 73% in 2013 to
Slide 126: Recurring Income – Growing Residential Rental Division
Dream Unlimited Corp. 126 Recurring Income – Growing Residential Rental Division Residential Units and Commercial GLA at Dream Share 7,000 1.22M sf 1.20M sf 6,000 5,939 1.00M sf 5,000 0.80M sf Commercial GLA Owned Residential Units Owned 4,000 0.67M sf 0.60M sf 3,000 0.40M sf 2,000 0.25M sf 1,169 1,
Slide 127: Growing Our Portfolio of Income & Recreational Properties
Dream Unlimited Corp. 127 Growing Our Portfolio of Income & Recreational Properties on Our Balance Sheet Investment & Recreational Properties Asset Value35 (in millions) $747.6 $86.5 Jun-13 Jun-23 Dec-32 Debt Equity Asset Disclaimers: This example is illustrative in nature. See the section titled “F
Slide 128: We Expect To Continue To Scale Our Asset Management Platform
Dream Unlimited Corp. 128 We Expect To Continue To Scale Our Asset Management Platform Over the past 10 years, our asset management business has achieved significant scale and we expect this growth to continue in the future. As an asset manager, we are more diverse and growing faster than ever. Asse
Slide 129: Growth in Asset Management Net Margin
Dream Unlimited Corp. 129 Growth in Asset Management Net Margin Asset Management Net Margin30 ($ in millions) * $37.4 $21.2 2013 2023 2032 * Based on Q2-23 quarter-to-date FFO31 annualized Disclaimers: This example is illustrative in nature. See the section titled “Forward-looking information”.
Slide 130: Growth In Value of Our Dream Group Unit Holdings
Dream Unlimited Corp. 130 Growth In Value of Our Dream Group Unit Holdings We expect the value of our unit holdings could increase conservatively based on an assumed annual growth of 7% based on today’s historically repressed values. Market Value of Dream Group Unit Holdings32 $223.7M* 2023 2032 • B
Slide 131: Deborah Starkman
131 Deborah Starkman CFO, Dream Unlimited
Slide 132: Financial Highlights
132 Dream Unlimited Corp. Financial Highlights
Slide 133: Migrating to Safer Composition of Debt
Dream Unlimited Corp. 133 Migrating to Safer Composition of Debt * 2013 2023 2032 10% 10% 23% 24% 8% 33% $0.4B $0.9B 81% 67% 43% Income Property Mortgages Development Debt (Construction & Land Loans) Corporate Debt • Debt based on adjusted standalone balances calculated using same adjustments as NAV
Slide 134: Conservative Leverage Profile with Assets at Fair Market Value
Dream Unlimited Corp. 134 Conservative Leverage Profile with Assets at Fair Market Value 35% 25% Leverage with assets Leverage with assets at book value 11 at fair market value 11 3,832.1 June 30, 2023 2,668.5 941.7 941.7 Book Value Assets Fair Value Assets Debt Assets
Slide 135: Growing Available Liquidity
Dream Unlimited Corp. 135 Growing Available Liquidity 36 $351 $58 Jun-13 Jun-23 2032 Disclaimers: This example is illustrative in nature. See the section titled “Forward-looking information”.
Slide 136: Cumulative Sources of Income from 2023 to 2032
Dream Unlimited Corp. 136 Cumulative Sources of Income from 2023 to 2032 30% 70% Recurring Development We expect 70% of our pre-tax income excluding corporate G&A to be from recurring income assets Disclaimers: This example is illustrative in nature. See the section titled “Forward-looking informati
Slide 137: Conceptual Capital Allocation
Dream Unlimited Corp. 137 Conceptual Capital Allocation Our plan focuses on minimizing risk by maintaining ample liquidity and growing our cash balance. We also aim to return capital to shareholders by increasing our annual dividend consistently throughout the next decade. Following increases to the
Slide 138: Conclusion
138 Conclusion
Slide 139: Appendix: Non-GAAP Measures and Other Disclosures
139 Appendix: Non-GAAP Measures and Other Disclosures
Slide 140: Disclaimers - Specified Financial Measures and Other Disclosures - Dream
140 Disclaimers - Specified Financial Measures and Other Disclosures - Dream Throughout this presentation, there are references to certain non-GAAP financial measures and ratios and supplementary financial measures in respect of Dream, including: assets under management, fee earning assets under man
Slide 141: FFO by division
141 FFO by division: For the three months ended June 30, For the six months ended June 30, In thousands of dollars, except per share and outstanding share amounts 2023 2023 Asset Management(i) $ 9,404 $ 16,696 Dream group unit holdings(ii) 5,509 14,226 Stabilized assets – GTA/Ottawa 1,310 (1,091) St
Slide 142: Net operating income definition
142 “Net operating income" represents revenue less direct operating costs and is equal to gross margin as per Note 26 of the condensed consolidated financial statements. Net operating income excludes general, administrative and overhead expenses, and depreciation, which are included in net margin pe
Slide 143: Supplementary and Other Financial Measures
143 Supplementary and Other Financial Measures "Assets under management ("AUM")" is the respective carrying value of gross assets managed by the Company on behalf of its clients, investors or partners under asset management agreements, development management agreements and/or management services agr
Slide 144: Net asset value definition and reconciliation
144 Net asset value "NAV" and Net asset value per share "NAV per share“ is a non-GAAP financial measure and represents the intrinsic value for the Company excluding the consolidation of Dream Impact Trust. Due to the nature of our holdings, NAV is calculated to reflect various factors including the
Slide 145: As at June 30, 2023 NAV reconciliation
145 As at June 30, 2023 Less: Adjust equity Adjust Dream Adjust Dream Adjust book value Adjust Dream Impact, Fair Market Asset Consolidated Less: Dream Consolidation Dream Dream Office and Adjusted Net Asset Value NAV per Notes Dream Impact Trust(*) Standalone(*) accounted Impact Fund Impact Trust o
Slide 146: Fair Value Adjustment – Investment properties and land
146 Note A: Fair Value Adjustment – Investment properties and recreational properties Multiple or Cap Asset Book Value Net operating income NAV Adjustment NAV1 NAV per unit1 Rate Arapahoe Basin (Ski hill) 44,834 14,888 13 148,715 193,549 4.52 Gladstone House (Hotel) 13,647 1,700 7.5% 9,020 22,667 0.
Slide 147: Fair Value Adjustment – Condominium Inventory
147 Note C: Fair Value Adjustment – Condominium Inventory Density at 100% Land at Book Land at Book Residential Commercial NAV Asset Ownership % Residential Commercial Total Value psf (at NAV1 NAV per unit1 Value (at share) Price psf Price psf Adjustment share) Canary Block 13 50.00% 648,779 10,363
Slide 148: Fair Value Adjustment – Asset Management and Unit Holdings
148 Note D: Fair Value Adjustment – Asset Management Asset Management Q2 2023 FFO31 9,404 FFO Annualized 37,616 Multiple 18x Valuation 677,088 Book Value 43,000 NAV Adjustment1 $ 634,088 Note E: Fair Value Adjustment – Dream Group Unit Holdings Units Book Value per Trading Price Asset Book Value NAV
Slide 149: Segmented Assets and Liabilities
149 Segmented Assets and Liabilities As at June 30, 2023 Corporate & Consolidated Less: Dream Impact Less: Consolidation Recurring Income Development other Dream Trust (*) & fair value Dream Standalone adjustments(*) Assets Cash and cash equivalents $ 37,490 $ 18,753 $ 18,184 74,427 $ 15,731 $ 1,325
Slide 150: Segmented Statement of Earnings
Segmented Statement of Earnings For the three months ended June 30, 2023 150 Recurring Development Corporate and Consolidated Less: Dream Less: Consolidation and fair Dream Standalone Income other Dream Impact Trust(*) value adjustments(*) Revenue $ 51,981 $ 22,400 $ - $ 74,381 $ 4,718 $ (706) $ 70,
Slide 151: Disclaimers - Specified Financial Measures – Dream Office REIT
151 Disclaimers - Specified Financial Measures and Other Disclosures – Dream Office REIT Throughout this presentation, there are references to certain non-GAAP financial measures and ratios and supplementary financial measures in respect of Dream Office REIT, including: net operating income24 as wel
Slide 152: Disclaimers - Specified Financial Measures – Dream Impact Trust
152 Disclaimers - Specified Financial Measures and Other Disclosures – Dream Impact Trust "Net asset value ("NAV")", a non-GAAP financial measure, represents total unitholders' equity per the condensed consolidated financial statements (the most directly comparable financial measure), adjusted for m
Slide 153: Disclaimers
153 Disclaimers Forward Looking Information Certain information in this presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. Such statements include, but are not limited to, statements with respect to certain objectives of Dream Unlimited
Slide 154: Disclaimers
154 Disclaimers Forward Looking Information • with respect to Dream Impact: (i) the expectations in relation to Dream Impact’s future business drivers, including expectations that the existing development pipeline will be a primary driver of NOI growth and the expectation that multi-family rental pr
Slide 155: Disclaimers
155 Disclaimers Forward Looking Information Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Dream Entities’ respective control, which could cause actual results to differ materially from those disclos
Slide 156: Disclaimers
156 Disclaimers Forward Looking Information In addition to the assumptions noted above, specific assumptions in support of Dream Impact’s expected growth in Adjusted NAV Per Unit, potential return for Investors, future portfolio allocation, growth in NOI from development pipeline, future debt compos
Slide 157: Disclaimers
157 Disclaimers Forward Looking Information In addition to the assumptions noted above, specific assumptions in support of Dream’s expectations to double the value of its assets and to achieve a 10% annual return by 2032 include: • Market rent growth rates and operating expenses remain in line with
Slide 158: Disclaimers
158 Disclaimers Forward Looking Information Although the forward-looking statements contained in this presentation are based on what the Dream Entities believe are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Factors
Slide 159: Endnotes
159 Endnotes 1. “Net asset value”, “NAV”, "Net Asset Value per Share" and "NAV per share" represent non-GAAP measures. For Dream Unlimited Corp.'s ("Dream") definition of NAV and NAV per share, please refer to the slide titled 'Disclaimers - Specified Financial Measures and Other Disclosures – Dream
Slide 160: Endnotes
160 Endnotes 25. Refers to Dream Impact Trust NAV and NAV per unit. NAV and NAV per unit are non-GAAP financial measures. For Dream Impact Trust’s definition of NAV and NAV per unit, please refer to the slide titled “Disclaimers – Specified Financial Measures and Other Disclosures – Dream Impact Tru