DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Industrial REIT — Investor Presentation (November 2022)
41 slides from DREAM Unlimited Corp. Class A's investor presentation, November 2022
Slide 1: Dream Industrial REIT November 2022
Dream Industrial REIT November 2022
Slide 2: Presentation Overview
4 AaAe me 401 Marie-Curie Boulevard, Montréal, OC, Canada Presentation Overview Section 1 Section 2 Section 3 Section 4 Section 5 Our Company & Strategy Organic Growth and ValueAdd Financial Highlights Portfolio Highlights ESG Highlights
Slide 3: Our Company & Strategy
Exportweg 2–20, Waddinxveen, Netherlands
Slide 4: Company Snapshot
6 Dream Industrial REIT Company Snapshot Dream Industrial REIT TSX: DIR.UN Dream Industrial REIT (DIR) owns, operates and manages a $6.5 billion diversified portfolio of well located industrial real estate across Canada and Europe, supported by a platform with a proven track record of long-term valu
Slide 5: Our Strategy
6 Dream Industrial REIT Our Strategy Global Acquisition Platform Development and Intensification Asset Management Conservative alarelateitel| Policy Local on the ground teams with a strong track record of sourcing attractive industrial opportunities across North America and Europe Building prime pro
Slide 6: Multiple Drivers of Value-Creation
6 Dream Industrial REIT Multiple Drivers of Value-Creation Organic NOI Growth NAV per Unit Growth FFO per Unit Growth Attractive Valuation Strong rent mark-to-market potential High occupancy level of ~99% Robust leasing momentum at solid rental spreads Embedded contractual rent steps and indexation
Slide 7: Focus on Modern, Functional & Well-located Urban & Distribution Assets
Dream Industrial REIT @ Focus on Modern, Functional & Well-located Urban & Distribution Assets Distribution! Urban Logistics" Light Industrial! 55% of IP Value 30% of IP Value 15% IP Value Europe Europe $88M Europe $434M 9% $1,924M 23% 55% Canada $1,489M Canada 77% $907M 1% 29.2M 132 1,185 12.0M 91
Slide 8: Organic Growth and Value-Add
Mortgages Unsecured Debt Equity
Slide 9: Q3 and YTD 2022 Financial Highlights
6 Dream Industrial REIT @) Q3 and YTD 2022 Financial Highlights Diluted FFO per Unit! increased 6.9% on a normalized basis year-over-year in Q3 2022, after excluding $2.8M of one-off fees earned in Q3 2021; increase was driven by strong organic growth, lower cost of debt, and strong leasing momentum
Slide 10: ESG Highlights
Dream Industrial REIT © ESG Highlights nvironmental Social Governance Developed ESG Framework Over 1 Million Outlining key milestones and initiatives with sf of LED lighting upgrades! 53% 2 Mi sf of green building certifications underway for 11 52% properties (including properties under development)
Slide 11: Strong Track Record of Disciplined Capital Allocation
6 Dream Industrial REIT @ Strong Track Record of Disciplined Capital Allocation Since 2018, recycled approximately $275 million of non-core assets and acquired more than $4.1 billion wa Of, et of higher quality assets that are located in better Increased NAV per Unit! by 78% since year-end 2016 mark
Slide 12: Experienced Management Team
Dream Industrial REIT Experienced Management Team ie LE Brian Pauls Alex Sannikov Lenis Quan Bruce Traversy CEO coo CFO SVP, Head of Investments a sve gos ladeluca Victor Settino Sharlene McKillop Sjoerd Barmentloo , 9 > VP, Development VP, Property Management Associate VP, Asset Quebec Management,
Slide 13: Organic Growth and Value-Add
6 Mesonweg, Utrecht, Netherlands
Slide 14: Robust industrial fundamentals continue to drive strong rental rate growth
Dream Industrial REIT Robust industrial fundamentals continue to drive strong rental rate growth Significant growth in market rents 14.00 4 $11.71 12.00 4 10.00 8.00 4 6.00 e489 €5.04 In local currency 4.00 2.00 Canada Europe ™Q3 2021 mQ4 2021 mQ3 2022 Year-over-year market rents have grown by 23% i
Slide 15: Strong Outlook for Organic Growth
6 Dream Industrial REIT Strong Outlook for Organic Growth 1] Strong mark-to-market potential +42.1% $12.50 C$11.71 $10.00 $7.50 $5.00 $2.50 Canada Europe mIn-place and committed base rent (psf) © Robust leasing momentum Year-to-date, signed 5.9 million SF of leases at an average rental spread of 32%
Slide 16: Increasing Pace of Organic Growth Drives Strong Diluted FFO per Unit
6 Dream Industrial REIT Increasing Pace of Organic Growth Drives Strong Diluted FFO per Unit! mmm Change in wtd. average occupancy mam Diluted FFO per Unit" mmm Change in in-place base rent YoY organic growth +8.2% ——-Average Net Total Debt-to-Total Assets (Net of Cash and Cash YoY CP NOI? growth i
Slide 17: Poised For Strong Rental Rate Growth on Lease Roll-over
6 Dream Industrial REIT @ Poised For Strong Rental Rate Growth on Lease Roll-over 100% 100% mmm Committed Occupancy Retention Ratio 80% + 80% 80% Mao, 60% i 71% Y 85% 1 60% 40% + 40% 20% ~ h 10.4% | } 108% a fendi fisos 0% 31.0% i oo%s Percentage of overall portfolio of GLA 2022 ' 2023 2024 2025 202
Slide 18: Development Strategy
Dream Industrial REIT & Development Strategy . yarn Redevelopment of existin Greenfield development Intensification of excess land properties 25% Interest in develop-to-hold GTA Development Joint Venture with global ~621,000 SF of projects currently Comprised of several sites in Ontario sovereign we
Slide 19: GTA Development Joint Venture With Global Sovereign Wealth Fund
6 Dream Industrial REIT GTA Development Joint Venture With Global Sovereign Wealth Fund + Joint venture targeting to buy $500 million of welHocated development sites in the GTA and GGHA and Adds scale in core build best-in-class industrial assets with the intention of holding assets following stabil
Slide 20: Activating Development Pipeline - Greenfield
6 Dream Industrial REIT Activating Development Pipeline - Greenfield Rocky View County and Cross Roads Abbotside Way, Caledon (GTA), ON Commercial, Balzac, AB a Received site plan approval; commenced construction ; ss in April 2022 with expected completion in the first half of 2023 iw County (50-acr
Slide 21: Activating Development Pipeline - Intensification
Dream Industrial REIT Activating Development Pipeline - Intensification Current Property Expansion Progress 401 Marie Curie Boulevard, Greater Montréal Area 527,000 square foot Class A distribution facility in the Greater Montréal Area with a clear height of 30 feet Situated on 38.4 acres with curre
Slide 22: Activating Development Pipeline - Intensification
Dream Industrial REIT Activating Development Pipeline - Intensification Current Property Project Rendering Courtney Park, Greater Toronto Area Preliminary redevelopment work has commenced on distribution facility in the Greater Toronto Area comprised of a cluster of three buildings Situated on 10 ac
Slide 23: Activating Development Pipeline - Intensification
Dream Industrial REIT Activating Development Pipeline - Intensification Current Property Expansion Progress Project Rendering 100 East Beaver Creek, Greater Toronto Area Construction is substantially complete on the existing 110,000 square foot property located in the GTA, in close proximity to High
Slide 24: Activating Development Pipeline - Intensification
Activating Development Pipeline - Intensification Construction Progress Christoph-Seydel-StraBe 1, Radeberg, 274,000 square foot property on 30.4 acres located in Radeberg, Germany, adjacent to Dresden with 24’ clear height Excess land supports a 241,000 square foot logistics facility with 34’ clear
Slide 25: Activating Development Pipeline - Intensification
Dream Industrial REIT Activating Development Pipeline - Intensification Current Property Afsondoooo0oG Project Rendering Blaise Pascal, Greater Montréal Area 206,000 square foot distribution facility in the Greater Montréal Area situated on 13.8 acres and in close proximity to Highway 25 & 40 Expand
Slide 26: Financial Highlights
4 Zoete Inval, Breda, Netherlands
Slide 27: Strong and Flexible Balance Sheet
6 Dream Industrial REIT @ Strong and Flexible Balance Sheet Focused de-leveraging while upgrading portfolio Shift to unsecured financing model significantly improved financial flexibility increased unencumbered investment properties? pool i i 2 ey ™ Ending Net Total Debt-to-Total Assets (Net of Cash
Slide 28: Significantly Lowered Cost of Debt and Limited FX Exposure
6 Dream Industrial REIT Significantly Lowered Cost of Debt and Limited FX Exposure Execution of European debt strategy Year-end 2019 Q3 2022 1% 3.6% 1.14% Weighted Avg. Weighted Avg. Interest Rate Interest Rate @ North American Debt Euro and Euro-equivalent Debt@ Equity! q quity Net Euro Exposure as
Slide 29: Limited Cash Obligations Provide Significant Acquisition Capacity
6 Dream Industrial REIT Limited Cash Obligations Provide Significant Acquisition Capacity 3.0 1.14% $600M 4 years WaIR? WATM! $526M $504M $500M 4 gu50M $469M $400M 4 $300M 4 $251M $200M 4 $100M 4 SOM 2022 2023 2024 2025 2026 2027+ mUnsecured ™ Secured Well-staggered debt maturities provide strong li
Slide 30: Portfolio Highlights
Emil-Lux-Str. 1, Wermelskirchen, Germany
Slide 31: Broad Tenant Base Provides Diversified Rental Income
Dream Industrial REIT Broad Tenant Base Provides Diversified Rental Income @) Use of Space by Annualized Gross Rent! Cold Storage Other 2% S% Office 5% Light Industrial 20% Distribution and Warehousing 68% Tenant Size Breakdown by Annualized Gross Rent! <15,000 sq. ft. 19% >100,000 sq. ft. 47% 15,00
Slide 32: Top Tenants Consist of Renowned Global Companies
6 Dream Industrial REIT Top Tenants Consist of Renowned Global Companies @) Auchan 26% a 1.1% SM. 1.1% >, een 1.0% GIENOW 0.9% Fit ra % of Gross 0.8% TC © mrconneroa 08% Cae 0.8% |kik Other Tenants. 0.8% 89.3% GvT ° 0.8% KiKis the owner of RLS Slovakia s.r.o., the tenant of the property Source: Bloo
Slide 33: ESG Highlights
6 Guldenweg, Varsseveld, Netherlands
Slide 34: Significant Initiatives to Enhance Sustainability Profile
6 Dream Industrial REIT Significant Initiatives to Enhance Sustainability Profile NET ZERO ASSET MANAGERS INITIATIVE As part of the Dream group of companies’ commitment, DIR is supporting the Net Zero Asset Managers (NZAM) _ Initiative, which is a _ group of international asset managers committed to
Slide 35: Capital Investments in Clean Power
Dream Industrial REIT ® Capital Investments in Clean Power Duiven, Netherlands Calgary, Alberta 9.9 megawatts of solar panel projects underway in Alberta and the Netherlands; total project cost of ~$12 million with expected unlevered yield on cost of over 10.4% One completed solar project in Alberta
Slide 36: Green Financing
© Dream Industrial REIT Green Financing \ Guldenweg 6, Varsseveld, Netherlands (BREEAM Very Good) Released Green Financing Framework in accordance with the UN Sustainable Development Goals Issued three Green Bonds totaling $850 million with proceeds expected to be allocated towards green buildings,
Slide 37: Stevinlaan 4, Ede, Netherlands
Stevinlaan 4, Ede, Netherlands
Slide 38: Hans-Böckler-Strasse 35, Minden, Germany
Hans-Böckler-Strasse35, Minden, Germany
Slide 39: European Portfolio Snapshot
6 Dream Industrial REIT European Portfolio Snapshot Assembled a high-quality 17M SF portfolio in less than 30 months, providing significant scale in core European logistics markets and a strong platform to pursue accretive asset management strategies Netherlands Number of assets 54 GLA (‘000) 7,446
Slide 40: High-Quality Portfolio
© Dream Industrial REIT High-Quality Portfolio Ede, Netherlands 34 ft Average clear ceiling height 2005 Average year of construction ~90K sq ft Average tenant size
Slide 41: Forward Looking Information
) Forward Looking Information This investor presentation may contain forward-looking information within the meaning of applicable securities legislation. Such statements include, but are not limited to, statements with respect to Dream Industrial REIT’s (the “Trust”) objectives and strategies to ach
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