DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Investor Presentation (September 2022)
52 slides from DREAM Unlimited Corp. Class A's investor presentation, September 2022
Slide 1: Dream Unlimited Corp. Investor Presentation September 2022
TSX:DRM Dream Unlimited Corp. Investor Presentation September 2022
Slide 2: Presentation Overview
Presentation Overview Page Section 1 Dream Overview 4 Section 2 Our Businesses 11 - 1 - Asset Management 12 - 2 - Recurring Income 15 - 3 - Development 18 Section 3 Impact Highlights 22 Section 4 Financial & Portfolio Highlights 33 Appendix 1 Non-GAAP Measures and Other Disclosures 38 Appendix 2 Net
Slide 3: Building Better Communities: Investment Highlights
Dream Unlimited Corp. 3 Building Better Communities 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
Slide 4: Dream Overview
Dream Overview Portfolio Overview
Slide 5: Dream Unlimited Corp. business overview
Dream Unlimited Corp. 5 Building Better Communities Dream Unlimited Corp. 1. Asset Management Business – $12.4B AUM Public Investment Vehicles Private Investment Vehicles dream dream dream Dream U.S. Dream U.S. Dream AUM AUM impact trust office REIT industrial REIT Industrial Multi-family Impact $10
Slide 6: 25+ Years of Real Estate Experience – Total AUM
Dream Unlimited Corp. 6 Building 25+ Better Years Communities of Real Estate Experience – Total AUM 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 $20B value, and re
Slide 7: Fair Value Adjustment over Book Value – NAV vs Market Cap
Dream Unlimited Corp. Building Better Communities Conservative Fair Value Adjustment over Book Value – NAV1 vs Market Cap. 70.0 3.0 $60.22 P/S DRM trading at 58.4 54% discount 2.5 $3.41 P/S to Q4.21 NAV Value Per Share ($) Total Value (Billions, $) 46.7 $26.25 2.0 $9.30 P/S Fair Value $2.46 P/S Adju
Slide 8: Our North American and European Investments; AUM by Region
Dream Unlimited Corp. Building Better Communities Our North American Investments Our European Investments Brighton Village, Calgary (DIR) Amsterdam, NDL 36 Toronto Street, Ontario (DIR) Tillburg, NDL 5605 Holmescrest Lane, Memphis (DIR) Pohořelice, CZ AUM1 by Region Q4/20 Q4/21 Q2/22 (in billions) 9
Slide 9: AUM by Asset Class
Dream Unlimited Corp. Building Better Communities AUM1 by Asset Class ($B) 18,000 $17.2B 16,000 $15.1B 8% 14,000 8% Residential Rental 14% Residential Rental 12% 12,000 Development 14% 10,000 $9.8B Development 15% 17% Office 16% Office 18% 8,000 Development 21% 6,000 Office 26% 4,000 Industrial 48%
Slide 10: 2021–2022 Public and Private Capital Raise Figures
Dream Unlimited Corp. 10 Building Better Communities 2021 – 2022 Public Capital Raise Figures (CAD) $2.7 billion $125.1 million of equity and debt was raised of gross proceeds by Dream Industrial REIT in generated by the Dream 2021, and Q1 and Q2 2022 Residential REIT IPO2 2021 to Aug 2022 - Private
Slide 11: Our Business
Our Business elS
Slide 12: 1. Asset Management
12 1. Asset Management Dream has established a successful asset management platform, inclusive of $17 billion of assets under management across four TSX- listed Trusts, our private funds and numerous partnerships.
Slide 13: Asset Management - Publicly Traded Entities
Dream Unlimited Corp. 13 Building Better Communities 1A Asset Management - Publicly Traded Entities Dream Impact Trust $1.2B Dream Office REIT $3.1B TSX: MPCT.UN total assets1 TSX: D.UN total assets MPCT.UN is Canada’s first D.UN is focused on owning, leasing publicly traded vehicle focused 90 and m
Slide 14: Asset Management – Private Investment Vehicles
Dream Unlimited Corp. 14 Building Better Communities 1B Asset Management – Private Investment Vehicles Alate Dream Dream U.S. Dream Alate Impact Fund Industrial Fund U.S. Multi-family Partners Dream Impact Fund is one The Dream U.S. Industrial Dream partnered with a Dream created a venture of the wo
Slide 15: 2. Recurring Income Owned Assets
2. Recurring Income Owned Assets Dream’s recurring income owned assets provide stable cash flows and financial flexibility that allow us to execute on other business lines across the Company.
Slide 16: Recurring Income Owned Assets - Overview
Dream Unlimited Corp. 16 Building Better Communities Recurring Income Owned Assets - Overview Dream manages a robust portfolio of exceptional income generating assets. These are assets that yield strong returns while also enhancing communities and adding value to cities across North America. $56M 37
Slide 17: Recurring Income Owned Assets - Highlights
Dream Unlimited Corp. 17 Building Better Communities Recurring Income Owned Assets - Highlights Arapahoe Basin, Colorado Distillery District, Toronto • 13 acres comprised of over 40 heritage • Operates with 54% Renewable Electricity buildings • Targeting to be carbon neutral by 2025 • ~ 800,000 annu
Slide 18: 3. Development
Dream Unlimited Corp. 18 Building Better Communities 3. Development Our focus on quality makes Dream an attractive investment. As our developments flourish, land and property values increase — with exceptional returns for purchasers and shareholders.
Slide 19: Dream's Development Projects
Dream Unlimited Corp. 19 Building Better Communities Dream’s Development Projects Urban Development – Toronto & Ottawa World-class development opportunities in planning and construction phases ~3.7 ~21,200 across Toronto & Ottawa condominium or comprised of condominium, million purpose-built rental
Slide 20: Urban Development Highlight: Zibi
Dream Unlimited Corp. 20 Building Better Communities Urban Development Highlight: Zibi Zibi is a world class sustainable community and redevelopment project on 34 acres of land along the Ottawa River in Gatineau and Ottawa. Canada’s largest 2016 grand prize winner – net-zero carbon ISOCARP Award of
Slide 21: Western Canada Community Development Highlights
Dream Unlimited Corp. 21 Building Better Communities Western Canada Community Development Highlights Providence (Incl. Alpine Park), Calgary 1,600 acres 400 acres 13,000 development commercial lots & total size space multi-family units Nested in the idyllic West Calgary with incredible views Alpine
Slide 22: Impact Highlights
Impact Highlights At Dream, we have always embraced impact investing and sustainability. Our mission is to create positive environmental and social results, alongside strong financial returns.
Slide 23: Impact Investing is What We Do – Track Record
Dream Unlimited Corp. 23 Building Better Communities Impact Investing is What We Do – Select Highlights of our Track Record History 2018 - 2020 Dream has been an active • Formed Alate Partners & Dream Impact impact investor since the early Trust 2000's including the launch of • Dream selected to del
Slide 24: Our Impact Pillars and Key Performance Indicators
Dream Unlimited Corp. 24 Building Better Communities Our Impact Pillars and Key Performance Indicators Environmental Attainable & Affordable Housing Inclusive Communities Sustainability & Resilience $6 billion + $25 million Of Net zero Development 2,618 pledged for the creation of the Dream affordab
Slide 25: We Uphold High Impact Standards & Engagement
Dream Unlimited Corp. 25 Building Better Communities We Uphold High Impact Standards & Engagement Awards, Certifications, & Commitments Dream Office and Dream Impact participated in the Global Real Estate Sustainable Benchmark (GRESB) real estate assessment for the first time and achieved a score of
Slide 26: Driving Impact Through Innovation: RCFi Financing
Dream Unlimited Corp. 26 Building Better Communities Driving Impact Through Innovation Rental Construction Financing Initiative (RCFi) Financing • The RCFI financing program is a $25.75 billion Image - WDL CMHC direct lending program to create new affordable housing units in Canada. • Dream has clos
Slide 27: Driving Impact Through Innovation: Canada Infrastructure Bank
Dream Unlimited Corp. 27 Building Better Communities Driving Impact Through Innovation Canada Infrastructure Bank • Aligned with Dream’s impact mandate & vision to achieve net zero-emission by 2035, on December 1, 2021 CIB & Dream announced its partnership on the first decarbonizing retrofit loan to
Slide 28: Our Current Impact Actions: LeBreton Library Parcel
Dream Unlimited Corp. 28 Building Better Communities Our Current Impact Actions: LeBreton Library Parcel Development 601 41% residential rental units affordable 31% Net Zero of residential units accessible & barrier Community free amenities and public realm Social Procurement LeBreton is a planned 2
Slide 29: Our Current Impact Actions: Quayside
Dream Unlimited Corp. 29 Building Better Communities Our Current Impact Actions: Quayside Dream and its partner were recently selected to develop the 12-acre Quayside waterfront site which is planned to include 5 towers, featuring 4,300 residential units, and a large mass timber building. The site i
Slide 30: Dream Community Foundation
Dream Unlimited Corp. 30 Building Better Communities Dream Community Foundation • As the charitable arm of Dream, the Dream Community Foundation will support our impact pillars with a specific focus on building inclusive communities. • The Foundation will offer and support the creation of affordable
Slide 31: Our Current Impact Actions: Social Procurement Policy
Dream Unlimited Corp. 31 Building Better Communities Our Current Impact Actions: Social Procurement Policy Social procurement is the use of our spending power to create economic benefits for under-served, or vulnerable groups and local, independent, or socially responsible businesses. Our Goal: We s
Slide 32: Our Current Impact Actions Measured
Dream Unlimited Corp. 32 Building Better Communities Our Current Impact Actions Measured $3.2 billion of impact assets managed across the Dream group portfolio $418 million of income development assets to begin producing recurring income by 2025. ~3,600 residential units and 0.3 million square feet
Slide 33: Financial & Portfolio Highlights
Financial & Portfolio Highlights
Slide 34: 2021 Financial Snapshot: Conservative Leverage Profile
Dream Unlimited Corp. 34 Building Better Communities 2021 Financial Snapshot Conservative Leverage Profile Conservative Leverage Profile: Standalone leverage2: 38% 5.0 Standalone leverage after fair 28% value adjustments3: 28% 4.0 Ample liquidity1 of $276M 38% 3.0 $74M Return of Capital to sharehold
Slide 35: 2021 Recurring Income vs Fixed Costs
Dream Unlimited Corp. 35 Building Better Communities 2021 Recurring Income1 vs Fixed Costs1 ($M) 80 D.UN Cash Dist. $73M 70 MPCT Cash Dist. 18 60 $26M A. Basin EBITDA excess Recurring income is an 7 Stabilized Properties 50 important element of our EBITDA 11 business, as it provides Asset Mgmt EBITD
Slide 36: Total Residential Units (Including Target Acquisitions)
Dream Unlimited Corp. 36 Building Better Communities Total Residential Units (Including Target Acquisitions) 14,000 13,301 12,208 12,446 12,000 10,000 8,324 8,000 6,000 5,270 4,000 Over the next 4 years, Dream 2,000 expects to add ~6,800 0 residential rental units to our 2021 - 2022 2023 2024 2025 p
Slide 37: Forward-Looking Information
Dream Unlimited Corp. 37 Building Better Communities Forward-Looking Information This presentation may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements regarding our objectives and strategies to achieve those objec
Slide 38: Appendix 1: Non-GAAP Measures and Other Disclosures
Appendix 1: Non-GAAP Measures and Other Disclosures
Slide 39: Non-GAAP Financial Measures
Dream Unlimited Corp. 39 Building Better Communities Non-GAAP Financial Measures “Dream standalone net asset value (NAV)” represents shareholders’ equity per the consolidated statement of financial position, adjusted for the consolidation of Dream Impact Trust and market value adjustments on certain
Slide 40: Dream standalone NAV reconciliation as at December 31, 2020
Dream Unlimited Corp. 40 Building Better Communities As at December 31, 2020 Dream Dream Consolidated Less: Dream Less: Consolidation and Market value (2) standalone standalone NAV (2) (2) (2) Dream Impact Trust fair value adjustments Dream standalone adjustments Note NAV(2) per share (2) Other fina
Slide 41: Adjusted EBITDA definition
Dream Unlimited Corp. 41 Building Better Communities “Adjusted EBITDA” represents net income for the period adjusted for interest expense on debt; amortization and depreciation; share of earnings from equity accounted investments; and net current and deferred income tax expense (recovery). This non-
Slide 42: Consolidation and fair value adjustments definition
Dream Unlimited Corp. 42 Building Better Communities "Consolidation and fair value adjustments" represents certain IFRS adjustments required to reconcile Dream standalone and Dream Impact Trust results to the consolidated results as at and for the years ended December 31, 2021 and 2020. Consolidatio
Slide 43: Recurring income cash flows in excess of fixed costs
Dream Unlimited Corp. 43 Building Better Communities “Recurring income cash flows in excess of fixed costs” represents the difference between our cash flows generated from our recurring income businesses and our fixed operating costs as calculated below. This supplementary measure is an important me
Slide 44: Recurring income asset cash flows
Dream Unlimited Corp. 44 Building Better Communities “Recurring income asset cash flows” represents the cash flows generated from our recurring income as calculated below. This supplementary measure is an important measure used by the Company in evaluating our cash flows. (in thousands) For the year
Slide 45: Appendix 2: Net Asset Value Calculations
Appendix 2: Net Asset Value Calculations
Slide 46: NAV Summary (FMV increment over book value)
Dream Unlimited Corp. 46 Building Better Communities NAV Summary (FMV increment over book value) Asset Dream Standalone Add: Fair Market Value Dream Standalone Net Note Book Value ($000’s) Adjustments ($000’s) Asset Value ($000’s) Reference Other financial assets $ 193,938 $54,846 $ 248,784 1 $9.26
Slide 47: Fair Value Adjustment – Financial Assets
Dream Unlimited Corp. 47 Building Better Communities 1 Fair Value Adjustment – Financial Assets Dream Dream Impact Office REIT Trust Stand Alone Book Value $95.6 M $521.4 M Total Units Owned 18.2 M 17.6 M Value per Unit $8.25 $31.49 Fair Market Value (FMV) $150.4 M $555.6 M FMV Adjustment $54.8 M $3
Slide 48: Fair Value Adjustment Urban Development Lands
Dream Unlimited Corp. 48 Building Better Communities 2 Fair Value Adjustment Urban Development Lands Canary Canary 31A Commons1 Block 13 Parliament Book Value $17.3 M $22.1 M $9.26 P/S Total Density2 289,000 sf 365,500 sf Land Value $250 psf $200 psf Fair Market Value $40.0 M $72.3 M $73.1 M Fair Ma
Slide 49: NAV Fair Value Adjustment Western Canada
Dream Unlimited Corp. 49 Building Better Communities 3 NAV Fair Value Adjustment Western Canada Land Held for Land Under Development Development Book Value $355.4 M $109.8 M $9.26 P/S Fair Market 8,712 acres Book Value x 1.4X Value (FMV) x $80,000/acre1 (profit on land developed) $697.0M $153.7M FMV
Slide 50: Fair Value Adjustment – Arapahoe Basin
Dream Unlimited Corp. 50 Building Better Communities 4 Fair Value Adjustment – Arapahoe Basin Book Value $33.9 M Adjusted EBITDA $10.7 M EBITDA Multiple 13.0 x Fair Market Value (FMV) $139.4 M FMV Adjustment $105.5 M FMV Adj. per Share $2.46 Arapahoe Basin, Colorado Arapahoe Basin is a ski hill loca
Slide 51: Fair Value Adjustment – Asset Management
Dream Unlimited Corp. 51 Building Better Communities 5 Fair Value Adjustment – Asset Management Book Value $43.0 M AM Margin (2022 Forecast) $29.4 M Margin Multiple 15.0 x Fair Market Value $441.2 M Fair Market Value (FMV) $398.2 M Adjustment FMV Adjustment per Share $9.29 Our asset management busin
Slide 52: Investor Relations Contacts
Deb Starkman Chief Financial Officer T: 416.365.4124 E: dstarkman@dream.ca Kimberly Lefever Director, Investor Relations T: 416.365.6339 E: klefever@dream.ca
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