DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Shareholder Meeting (May 2014)
96 slides from DREAM Unlimited Corp. Class A's shareholder meeting presentation, May 12, 2014
Slide 1: Annual Meeting Presentation
Annual Meeting Presentation May 12, 2014
Slide 2: Forward-looking information
This presentation may contain forward-looking information within the meaning of applicable securities legislation. 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 Dream’s control, which could cause actual
Slide 3: Slide 3
Slide 4: Slide 4
Slide 5: Dream: building better communities
dream — building better communities
Slide 6: Michael Cooper, CEO
dream — building better communities Michael Cooper, CEO
Slide 7: We build better communities
We build better communities.
Slide 8: We add to the social, environmental and economic fabric of our communities
We add to the social, environmental and economic fabric of our communities
Slide 9: We are principled sustainable developers
We are principled sustainable developers.
Slide 10: People love that we make old...
People love that we make old...
Slide 11: People love that we make old, new again
People love that we make old, new again.
Slide 12: Distillery District, Toronto
Distillery District, Toronto
Slide 13: Largest collection of historic Victorian industrial buildings in North America
The largest collection of historic Victorian industrial buildings in North America
Slide 14: The neighbourhood Torontonians show off to friends
It’s the neighbourhood Torontonians show off to their out-of-town friends.
Slide 15: Great places to live with arts, culture, entertainment and retail
Combining great places to live with arts, culture, entertainment and retail.
Slide 16: Combining the best in design and heritage
Combining the best in design and heritage
Slide 17: Industrial heritage buildings fused with 21st century design
Fused industrial heritage buildings with 21st century design and creativity
Slide 18: Pan Am Games Village / Canary District, Toronto
Pan Am Games Village / Canary District, Toronto
Slide 19: Canary District
Canary District The nature of urban living
Slide 20: Village next to downtown, designed for green, healthy living
Canary District is a village next to downtown, designed for green, healthy living
Slide 21: Canary District Front yard
Canary District Front yard
Slide 22: Canary District Back yard
Canary District Back yard
Slide 23: Albert & Chaudière Islands, Ottawa/Gatineau
Albert & Chaudière Islands, Ottawa/Gatineau
Slide 24: Centre of Ottawa, 1km from Parliament Hill
Centre of Ottawa, 1km from Parliament Hill Source: Domtar Lands Redevelopment, Executive Summary, 04/22/14
Slide 25: Domtar Lands Redevelopment
Source: Domtar Lands Redevelopment, Executive Summary, 04/22/14
Slide 26: Virtually self-sufficient, among the world's most sustainable communities
The island community will be virtually self-sufficient and among the world's most sustainable communities Source: Domtar Lands Redevelopment, Executive Summary, 04/22/14
Slide 27: With some of the best views in the country
…with some of the best views in the country Source: Domtar Lands Redevelopment, Executive Summary, 04/22/14
Slide 28: Toronto Condominium Projects
Toronto Condominium Projects
Slide 29: Past, Current and Future Projects
Past Projects Current Future
Slide 30: Western Canadian Land & Housing
Western Canadian Land & Housing
Slide 31: South Kensington, Saskatoon
South Kensington, Saskatoon 31
Slide 32: A community by Dream of 21,000 people
South Kensington A community by Dream, of 21, 000 people !"#
Slide 33: Land Use Concept Plan
Land Use Concept Plan Figure - 3 on | $ Note. The map sconoephal ane may enange
Slide 34: A series of firsts for Dream
A series of firsts for Dream. It’s the first time all development divisions have converged into a single community: land development, housing, retail, and condo’s construction 34
Slide 35: Saskatoon consumers will see the scope of Dream's activities
It’s the first time consumers in the Saskatoon market will realize the scope of activities across Dream 35
Slide 36: Holmwood, Saskatoon
Holmwood, Saskatoon 36
Slide 37: 75,000 people will live in Holmwood
75,000 people = 30% of today’s Saskatoon population will live in Holmwood. Brighton Plans for 5.5M Sq.Ft. commercial centre underway !$#
Slide 38: Focus on rapid transit, conservation and sustainable live/work lifestyle
Our development focus is on rapid transit, conservation & fostering a sustainable live/work lifestyle. 38
Slide 39: Providence, Calgary, Alberta
Providence Calgary, Alberta 39
Slide 40: 100,000 people will move into Providence
100,000 people will move into Providence. First neighbourhood is anticipated for sales in 2016. Providence %&#
Slide 41: Providence
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Slide 42: Transportation focus and parks
Transportation focus: pedestrian linkages to amenities, bicycle connections to regional trails and provincial parks, bus and light rail transit 16% of this urban community dedicated to parks and open spaces Schools within 400 metres of all residents in the neighbourhood #
Slide 43: Coopertown, Regina, Saskatchewan
Coopertown Regina, Saskatchewan 45
Slide 44: 34,000 people will live in Coopertown
Coopertown 34,000 people = 15% of today’s Regina population, will live in Coopertown. 46
Slide 45: Coopertown: Main Street
Coopertown: Main Street Community plan designed around a commercial Main Street, to become the central transit hub and gathering place. 47
Slide 46: Coopertown: Variety is the spice of life
Coopertown: Variety is the spice of life. Not just single family homes; there will be a balance of condos, townhomes, apartments & seniors homes. 48
Slide 47: On your bike
On your bike. Extra wide bike lanes next to roads, and within a park network, all leading to and from the Main Street. 49
Slide 48: 100% within 5 minutes of a park
100% will live within 5 minutes of a park. All residents will live within 5 minutes of public transit and near retail too. 50
Slide 49: Edible landscape and community gardens
Within the parks system, edible landscape will be planted. Community gardens will also be located conveniently to the residents, should they wan t to grow their own food. 51
Slide 50: Renewable Power
Renewable Power
Slide 51: Solar energy projects
Dream Renewables 10 MW Rutley Ground-Mount Solar Project, Ontario The amount of solar energy falling on the earth every 20 minutes could power the planet for one year. We are capturing that energy through investing in solar projects which produce electricity with zero carbon emissions. Once complete
Slide 52: Dalhousie Mountain Wind Farm, Nova Scotia
Dream Renewables 51 MW Dalhousie Mountain Wind Farm, Nova Scotia In 2007, we and our partners believed in a local developer, trained as a helicopter mechanic, with a vision to build the largest wind farm in Nova Scotia. The Dalhousie Mountain wind farm provides enough clean electricity to power 15,0
Slide 53: Rooftop solar projects on Ontario stores
Dream Renewables 0.5 MW Rooftop Solar Project, Ontario Dream partnered with one of the largest retailers in Canada to finance, install, own and operate rooftop solar projects on over 70 stores in Ontario. Electricity generated from rooftop solar is used directly in the buildings below, reducing stra
Slide 54: Jane Gavan
Jane Gavan President of Asset Management
Slide 55: Almost $13.5 Billion of Assets Under Management
View of Everything We Do at Dream from the Top-Down Dream Unlimited Corp. (TSX: DRM) Asset Management For Listed REITS: Operating Businesses Dream Office Dream Global Housing & Dream Land Renewable REIT (TSX: REIT Urban Industrial REIT Development Power D.UN) (TSX: DGR.UN) Development (TSX: DIR.UN) La
Slide 56: Dream – Our Impact
Dream – Our Impact 1,000 people working together 125,000 people work in our offices in Canada 60,000 people work in our buildings in Germany Our industrial buildings are the size of 300 football fields and they are full of everything we use
Slide 57: Our Cumulative Activities in the REITs Since 2007
Our Cumulative Activities in the REITs Since 2007 Leased 20 million square feet of commercial space Completed $4.3 billion of debt financings Raised $4.0 billion of equity Completed almost $11 billion of acquisitions Completed almost $3 billion of asset sales $1.3 billion of aggregate distributions
Slide 58: Depth and Expertise of the Management Team
Depth and Expertise of the Management Team – We Work Together to Create Value for all our Managed Entities Dream Unlimited Corp. Michael Cooper Jane Gavan Pauline Alimchandani Jason Lester Dan Marinovic George Valentini Josh Kaufman CEO President, Asset Management; CEO CFO SVP Urban Development SVP
Slide 59: Pauline Alimchandani
Pauline Alimchandani Chief Financial Officer
Slide 60: Our Strategy & Business Focus
Our Strategy & Business Focus Double our current annual land consumption Increase our home building activities Develop multi-family properties on our lands Develop retail within our master-planned communities Grow and leverage our asset management platform
Slide 61: Our Strategy & Business Focus: 20% returns
Our Strategy & Business Focus Generally, we invest in opportunities that generate 20% returns or higher Given the nature of our assets, we evaluate our financial performance over a number of years
Slide 62: A Conceptual Build-Up to $250M in Pre-Tax Income
250 in ‘16 A Conceptual Build-Up to $250M in Pre-Tax Income… Pre-Tax Income, $ millions $250 +91% $131 2013 2016
Slide 63: Land Development: 2013 margin
250 in ‘16 | Land Development $ millions $250 In 2013, we consumed just under 300 acres of land inventory and $200 generated $89 million of margin $150 $100 $50 82
Slide 64: Land Development: target to double land consumption
250 in ‘16 | Land Development $ millions $250 In 2013, we consumed just under 300 acres of land inventory and $200 generated $89 million of margin Our target is to double our current $150 land consumption, as we advance on various stages of development $100 on over 8,000 acres in the next few years
Slide 65: Housing: 2013 occupancies
250 in ‘16 | Housing $ millions $250 In 2013, we generated margin from 290 housing unit occupancies in $200 Saskatoon and Regina $150 $100 $50 84
Slide 66: Housing: capacity to build 500 homes by 2016
250 in ‘16 | Housing $ millions $250 In 2013, we generated margin from 290 housing unit occupancies in $200 Saskatoon and Regina We are increasing our capacity to $150 build 500 homes by 2016 $100 $50 85
Slide 67: Urban Development: 2013 condo occupancies
250 in ‘16 | Urban Development $ millions $250 In 2013, we achieved 510 condo unit occupancies across all of our $200 projects (218 units at our share) $150 $100 $50 86
Slide 68: Urban Development: over 2,000 condos in pipeline
250 in ‘16 | Urban Development $ millions $250 In 2013, we achieved 510 condo unit occupancies across all of our $200 projects (218 units at our share) $150 We have over 2,000 condos in pre- construction or under development, $100 including 807 units in the Pan Am Games Village, which are expected $
Slide 69: Asset Management: 2013 margin
250 in ‘16 | Asset Management $ millions In 2013, we earned $21 million of $250 margin from asset management overseeing: $200 - $2 billion of debt financing $150 - 6 million square feet of leasing $100 - $2 billion of high quality acquisitions $50 - $45 million of dispositions # 88
Slide 70: Asset Management: pursuing alternative investments
250 in ‘16 | Asset Management $ millions We did not forecast any change in $250 margin from our asset management business, but are currently pursuing $200 opportunities to grow and expand our division to include alternative $150 investments $100 $50 89
Slide 71: Renewable Power, Investment & Recreational Properties: 2013
250 in ‘16 | Renewable Power, Investment & Recreational Properties & Other $ millions In 2013, we earned about $6 million $250 of income from renewable power, investment and recreational $200 properties and other investments $150 $100 $50 90
Slide 72: Renewable Power, Investment & Other: expected 2016 contribution
250 in ‘16 | Renewable Power, Investment & Recreational Properties & Other $ millions In 2013, we earned about $6 million $250 of income from renewable power, investment and recreational $200 properties and other investments $150 We expect contribution from these segments to increase in 2016 $100 $5
Slide 73: Retail and multi-family contribution assumptions
250 in ‘16 $ millions Our pre-tax income target $250 contemplates minimal margin contribution from our newly $200 established retail and multi family development divisions, though we $150 are building accretively to our net asset value $100 Our forecast assumes no material $50 change in fundamentals
Slide 74: Actual segment contributions could vary
250 in ‘16 $ millions And most importantly…. $250 The actual contributions from each $200 segment could vary, due to the nature of our business and the timing $150 of approvals $100 $50 93
Slide 75: Overall target of $250 million pre-tax income
250 in ‘16 $ millions …but our overall target remains to $250 generate $250 million of pre-tax income from all our business $200 activities, combined $150 $100 $50 94
Slide 76: Balance Sheet & Capital Structure
Balance Sheet & Capital Structure $ millions 2010 2011 2012 2013 March 31, 2014 Land Under Development 101.9 107.7 128.7 101.4 101.3 Land Held for Development 158.4 133.0 230.4 358.3 377.8 Total Assets 729.3 822.0 991.0 1,095.6 1,140.3 Debt & Preference Shares 241.6 277.6 321.7 354.7 423.9 Total Lia
Slide 77: Balance Sheet & Capital Structure
Balance Sheet & Capital Structure $ millions 2010 2011 2012 2013 March 31, 2014 Land Under Development 101.9 107.7 128.7 101.4 101.3 Land Held for Development 158.4 133.0 230.4 358.3 377.8 Total Assets 729.3 822.0 991.0 1,095.6 1,140.3 Debt & Preference Shares 241.6 277.6 321.7 354.7 423.9 Total Lia
Slide 78: Balance Sheet & Capital Structure
Balance Sheet & Capital Structure $ millions 2010 2011 2012 2013 March 31, 2014 Land Under Development 101.9 107.7 128.7 101.4 101.3 Land Held for Development 158.4 133.0 230.4 358.3 377.8 Total Assets 729.3 822.0 991.0 1,095.6 1,140.3 Debt & Preference Shares 241.6 277.6 321.7 354.7 423.9 Total Lia
Slide 79: Two Totally Incorrect, but Conceptually Valid Charts
The Next 30 Years Two Totally Incorrect, but Conceptually Valid Charts…
Slide 80: Over $7 Billion of Aggregate Cash Flow Before Re-investment
Totally Incorrect, but Conceptually Valid | The Next 30 years 350 Over $7 Billion of Aggregate Cash Flow Before Re-investment 300 Investment & Recreational 250 in ‘16 Properties / Other 250 Renewable Power 200 C$ millions Land Development 150 Asset Management 100 Home Building 50 Condo & Multi –Fami
Slide 81: Future Returns & Market Capitalization
Totally Incorrect, but Conceptually Valid | Future Returns & Market Capitalization $26.2 $26.20 $ BILLIONS Equity market capitalization Assumptions: Equity Value / Market Capitalization 12% annual growth rate 2.5% annual dividend = 9.5% annual growth in market cap $7.00 $7.0 Aggregate Cash Flow From
Slide 82: Future Returns & Market Capitalization
Totally Incorrect, but Conceptually Valid | Future Returns & Market Capitalization $26.2 $26.20 $ BILLIONS Equity market capitalization Assumptions: Equity Value / Market Capitalization 12% annual growth rate 2.5% annual dividend = 9.5% annual growth in market cap $7.00 $7.0 Re-investment Aggregate
Slide 83: Goals
Goals Our Board 102
Slide 84: Our goals and purpose
Our goals and purpose | 2013 Management Information Circular Clearly Stated in our Management Information Circular Growth: our goal of $250 million of pre-tax cash flow by 2016 Fairness: our compensation structure is aligned with shareholders and fully transparent Diversity: 4 of 7 director nominees
Slide 85: Who do we work for?
Who do we work for? Our Board 108
Slide 86: We work for...
Who we work for We work for… the families that live in our communities the people who work in our buildings our communities our shareholders
Slide 87: We work for each other, our families
Who we work for We work for… each other our families
Slide 88: Our Values
Our Values Our Board 115
Slide 89: Our Values: Integrity
Our Values Integrity- We expect everyone at Dream to be honest, accountable, transparent, respectful in the way they deal with others, and conduct themselves in a manner that is likely to create goodwill for future relationships.
Slide 90: Our Values: Teamwork
Our Values Teamwork- We expect our colleagues to work together as a team, helping each other to achieve common goals; by combining and complementing each others’ strengths. Successes are shared by all.
Slide 91: Our Values: Dealing with stakeholders
Our Values Dealing with stakeholders– The success of our business relies on our ability to meet and exceed stakeholders’ expectations. Prompt & thoughtful responses, compassion, innovation, and creative solutions are expected.
Slide 92: Our Values: Social Responsibility
Our Values Social Responsibility– We expect all colleagues to contribute in the communities where they live and work, and to value the commitment of others. Consider the potential need for flexibility at work to meet community responsibilities
Slide 93: Our Values: Opportunities
Our Values Opportunities– We believe in a safe and respectful work environment that attracts, supports and develops high-performing and innovative team members, and provides fair opportunities.
Slide 94: Our Values: Fun
Our Values Fun– We believe Dream’s success will be enhanced by an environment where people enjoy working together, take interest in each other, create social events to understand each other, and encourage humour in the workplace. Working at Dream should feel good.
Slide 95: Our Values: In summary
Our Values In summary– We want our colleagues to have rewarding careers, working alongside people they like, trust and respect, having fun doing great work… so everyone we deal with is happy we do what we do.
Slide 96: Thank You
Thank You.