Dream Unlimited Corp. Class A · TSX:DRM
Dream Unlimited Corp. Class A — Dream Global REIT — Shareholder Meeting (May 2016)
31 slides from Dream Unlimited Corp. Class A's shareholder meeting presentation, May 4, 2016
Slide 1: Annual General Meeting – May 4, 2016
Annual General Meeting – May 4, 2016
Slide 2: Detlef Bierbaum, Chairman of the Board
Detlef Bierbaum Chairman of the Board
Slide 3: Jane Gavan, Chief Executive Officer
Jane Gavan Chief Executive Officer
Slide 4: Dream Global REIT at-a-glance
Dream Global REIT is an owner and operator of 13.5 million Hamburg square feet of office and mixed-use space in Germany and Austria and provides a unique opportunity to gain Düsseldorf exposure to the European real Cologne estate market. DRG.UN at-a-glance* Frankfurt 13.5M 203 Square Feet Properties
Slide 5: Key 2015 highlights
Key 2015 highlights o Over $500 million of high quality office property acquisitions, including expansion into Vienna with a new JV partner; o Early refinancing of term loan credit facility, expected to result in incremental AFFO of $0.05/unit; o Strong leasing performance with 1.3 million square fe
Slide 6: Strong German real estate fundamentals
Strong German real estate fundamentals o Unemployment rate at 4.5% - among the lowest in the EU o GDP growth of 1.7% in 2015 and economic growth for 2016 is expected to remain strong o Record-low vacancy and moderate new supply in Germany’s 7 largest office markets o Increasing rental rates across m
Slide 7: $565 million of acquisitions since the beginning of 2015
$565 million of acquisitions since the beginning of 2015
Slide 8: Millerntorplatz 1, Hamburg
Millerntorplatz 1, Hamburg Purchase Price: $136 million Going–in cap rate: 6.1% (growing to 7%) Interest rate: 1.71% GLA: 375,000 sf Occupancy: 88% 8
Slide 9: Anger Entrée, Erfurt
Anger Entrée, Erfurt Purchase Price: $27.5 million Cap rate: 7.1% Interest rate: 1.42% GLA: 131,000 sf Occupancy: 96%
Slide 10: Zimmer 56, Berlin
Zimmer 56, Berlin Purchase Price: $64.7 million Going-in cap rate: 4.8% (growing to 6%) Interest rate: 0.95% variable (capped at 1.95%) GLA: 170,000 sf Occupancy: 99%
Slide 11: Vienna, Austria
Vienna, Austria 11
Slide 12: Rivergate, Vienna
Rivergate, Vienna
Slide 13: Rivergate, Vienna
Rivergate, Vienna Purchase Price: $285 million Going-in cap rate: 5.2% Interest rate: 1.6% GLA: 574,000 sf Occupancy: 94%
Slide 14: Europa-Center, Essen
Europa-Center, Essen Purchase Price: $41.5 million GLA: 147,000 sf Cap rate: 7.2% Occupancy: 96% Interest rate: 1.62% 14
Slide 15: Werner-Eckert-Strasse, Munich
Werner-Eckert-Strasse, Munich Purchase Price: $23.2 million GLA: 64,000 sf Cap rate: 6.1% Occupancy: 96% Interest rate: 1.07% Centrally located office property in Berlin’s Mitte district
Slide 16: Rene Gulliver, Chief Financial Officer
Rene Gulliver Chief Financial Officer
Slide 17: Continued improvements in operating metrics
Key operating metrics Key metrics Q1 2016 Q4 2015 Q4 2014 Occupancy 88.0% 87.5% 85.3% Average in-place net rent per sf €9.66 €9.61 €8.86 Average market rents per sf €10.30 €10.20 €9.57 Market rents above in-place rents 6.6% 6.1% 2.9% Weighted average lease term 4.4 years 4.4 years 4.4 years Continue
Slide 18: Q1 2016 financial results
Q1 2016 financial results Financial results – Q1 2016 Q1 2016 Q1 2015 Net operating income $41.5 million $38.3 million FFO/unit (basic) 20 cents 19 cents AFFO/unit (basic) 20 cents 18 cents 16% 35% Improving AFFO quality Q1 2016 Initial Properties Q1 2015 AFFO New Acquisitions AFFO 65% 84%
Slide 19: Transformed debt maturity profile
Transformed debt maturity profile Average Overall term Debt Interest to LTV maturity Maturity extended by Debt Maturities (in $ millions) 74bps 0.2 years 300bps 1 year 600 New Blanket Facility 500 IPO Blanket Facility 400 300 200 Q4 2014 100 Q4 2015 0 2016 2017 2018 2019 2020 2021 2022 2023 20
Slide 20: Proactive leasing strategy to maximize value of our assets
Proactive leasing strategy to maximize value of our assets 600,000 Deutsche Post 79% renewal 500,000 tenant retention in 2015 Square feet 400,000 300,000 1.3 million sf leased in 2015 200,000 100,000 Average remaining - lease term of Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 4.
Slide 21: Michael Schwöbel, Head of Real Estate, Europe
Michael Schwöbel Head of Real Estate, Europe
Slide 22: Active asset management
Active asset management o Reduced overall exposure to largest tenant o Active capital recycling program o Mitigated loss of GRI Lüdenscheid Hamburg due to proactive discussion with tenant o Took advantage of large blocks of contiguous space o Value-add opportunities Bremen Darmstadt
Slide 23: Value creation update - Saarbrücken
Value creation update - Saarbrücken
Slide 24: Value creation update – Saarbrücken
Value creation update – Saarbrücken 24
Slide 25: Value creation update - Saarbrücken
Value creation update - Saarbrücken 30% Pipeline 33% Leased 37% Final stages
Slide 26: Value creation update - Millerntorplatz 1, Hamburg
Value creation update - Millerntorplatz 1, Hamburg 26
Slide 27: Value creation update - Millerntorplatz 1, Hamburg
Value creation update - Millerntorplatz 1, Hamburg http://www.bilderbuch- hamburg.de/bilder/hamburg_st_pauli_mille rntorplatz_luftbild_reeperbahn_simon_von _utrecht_stra%C3%9Fe_kleine_seilerstra %C3%9Fe_f34b195223_978x1304xin.jpeg signed 6,000 square foot lease at $60/sf adding $0.5 million annually
Slide 28: Value creation update - Millerntorplatz 1, Hamburg
Value creation update - Millerntorplatz 1, Hamburg http://www.bilderbuch- hamburg.de/bilder/hamburg_st_pauli_mille rntorplatz_luftbild_reeperbahn_simon_von _utrecht_stra%C3%9Fe_kleine_seilerstra %C3%9Fe_f34b195223_978x1304xin.jpeg 28
Slide 29: Outlook
Outlook o Focus on leasing & driving occupancy of our properties o Pursue refinancing of convertible debentures o Continue recycling capital & improving the quality of our portfolio o Grow and create new joint venture relationships o Actively manage our real estate with a focus on adding value
Slide 30: Forward looking information
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 Global
Slide 31: Slide 31