DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Hard Asset Alternatives Trust — Q3 2014 Earnings Presentation
39 slides from DREAM Unlimited Corp. Class A's earnings presentation, Nov 25, 2014
Slide 1: Dream Hard Asset Alternatives Trust Q3 Results Conference Call Presentation
Dream Hard Asset Alternatives Trust Q3 Results Conference Call Presentation (November25, 2014)
Slide 2: Forward Looking Information
Dream Alternatives Trust - Forward Looking Information Forward Looking Information This presentation contains 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 u
Slide 3: Dream – The Asset Manager
Dream – The Asset Manager Dream started as a public company in 1996 with $500,000 of equity and has grown to its current equity value of $1.4 billion representing an internal rate of return of 41%. In 2014 we renamed all our Dundee branded companies Dream. 3 *IRR (Internal Rate of Return) represents
Slide 4: Michael Cooper – CEO & Founder of Dream
Michael Cooper – CEO & Founder of Dream | Portfolio Manager of Dream Alternatives Trust Prior to starting Dream, Michael Cooper was the founder and portfolio manager of Dynamic Real Estate Fund, the first mutual fund in Canada to invest only in publicly traded real estate securities. Michael recentl
Slide 5: Dream Alternatives Trust – Investment Summary
Dream Alternatives Trust – Investment Summary Dream Alternatives Trust (DAT) provides investors the opportunity to gain exposure to hard asset alternative investments, including real estate, real estate loans and infrastructure including renewable power which are generally less correlated to the pub
Slide 6: Key Achievements Since IPO
Dream Alternatives Trust - Key Achievements Since IPO • Successfully listed DAT on July 8, 2014 and have increased liquidity substantially for investors. Average daily trading volume of 160,000 units. (As at November 24, 2014) • Released our first set of quarterly financial results providing the mar
Slide 7: Key Achievements Since IPO – Investment Turnover
Dream Alternatives Trust – Key Achievements Since IPO • Continuing to manage the original investments while rebalancing and Investment Turnover growing the portfolio to generate consistent and higher returns and increase the overall quality of the assets. New • Committed to first renewable power inv
Slide 8: Q3 Portfolio - Current Net Asset Value Breakdown
Dream Alternatives Trust | Q3 Portfolio - Current Net Asset Value Breakdown Renewable Power $12.9 million Current Net Asset Value~ $722 Million* 2% • Income Producing properties through 19 Properties co-owned with Dream Office REIT, Canada’s largest office REIT. Cash & Other Real Estate $77.7 millio
Slide 9: Increased Liquidity and Changing Unitholder Base
Dream Alternatives Trust - Increased Liquidity and Changing Unitholder Base • Since listing on July 8th DAT has traded over 15 million units or 21% of the portfolio* Unitholder Turnover Since Listing On July 8, 2014 Relative Average Trading Volume Between Aggregate of 3 ROI Funds & DAT New Unitholde
Slide 10: Q3 Financial Highlights
Dream Alternatives Trust - Q3 Financial Highlights Net Asset Portfolio Net Assets $722 MLN Value Per Gross Assets $1 BLN Unit $9.80 Market Capitalization* $539 MLN Income Producing Properties Net Assets $241.2 MLN Lending Portfolio Net Assets Income $216 MLN Renewable Investment Holdings Net Assets
Slide 11: Q3 Portfolio - Net Asset Value Breakdown
t Asset Dream Alternatives Trust – Q3 Portfolio - Net Asset Value Breakdown Value $9.80 per unit • Current trading price is at a ~33% discount to net asset value, not indicative of intrinsic value. Net Asset Value Per Segment* $12.00 $9.80 NAV vs Current Trading Price** $10.00 $12.00 $8.00 $9.80 $10
Slide 12: Income Producing Properties – Co-Owned with Dream Office REIT
Dream Alternatives Trust - Income Producing Properties – Co-Owned with Dream Office REIT West Metro Centre Valhalla Centre 80 Whitehall Drive 2010 Winston Park Dr. London City 6501 Mississauga Rd. 6531 Mississauga Rd. Toronto, ON Toronto, ON Markham, ON Oakville, ON Centre Mississauga , ON Mississau
Slide 13: Income Producing Properties
Dream Alternatives Trust - Income Producing Properties Net Asset 19 Commercial properties co-owned with Dream Office REIT, Canada’s largest office REIT Value $3.28 per Portfolio Net Assets $242 MLN unit Gross Assets $508 MLN GLA 2.1 million square feet Committed Occupancy 91.5% Weighted Average Rema
Slide 14: Income Producing Properties Capital Structure - Low Leverage
Dream Alternatives Trust - Income Producing Properties Capital Structure - Low Leverage Mortgages Payable for co-owned properties (in Millions) $80 30% 29% Millions $71.4 $68.8 $70 $60 21% $51.5 $50 17% $39.1 $40 $30 $20 $10 2% $3.2 $- 2014 2015 2016 2017 2018 2019 and thereafter Weighted Average Ef
Slide 15: Income Producing Properties – Lease Expiries
Dream Alternatives Trust - Income Producing Properties – Lease Expiries • Our rental rates remain below market which allow us to capture gains with new leasing. • Increased the committed occupancy by 11,000 square feet during the quarter. GLA (in thousands of sq. ft.) Percentage of total in place an
Slide 16: Lending Portfolio
Dream Alternatives Trust – Lending Portfolio Net Asset Value Net Assets $216 million $2.93 per unit Portfolio Mortgage / Real Property Loans (includes one portfolio based first 24 mortgage on nine hotel properties and a second mortgage on three properties in Alberta and BC for a total of $66 million
Slide 17: Lending Portfolio Sector Allocation
Dream Alternatives Trust - Lending Portfolio Sector Allocation • Weighted average effective interest rate of 8.02% Land • Weighted average term to maturity: less than 1 year 17% • First mortgages: 81% Retirement Home Hotels / Hospitality 9% 52% • 24 mortgage / real property loans and 2 corporate loa
Slide 18: Growth in Cash Flow and Distributions
Dream Alternatives Trust - Growth in Cash Flow and Distributions • Over 70% of the lending portfolio matures by the end of 2015 at a weighted average effective interest rate of 7.8% which we expect will provide us with the opportunity to reinvest the proceeds at higher returns. • Since July 8, we ha
Slide 19: Investment Holdings
Dream Alternatives Trust - Investment Holdings Empire Communities Empire Communities Castlepoint Villarboit, Villarboit, McLeod Centre Villarboit, Villamark Eau Du Soleil Brampton, ON Toronto, ON 221 Henry Street Niagara Falls, ON Markham, ON Toronto, ON Brantford, ON Villarboit, Villarboit, Villarb
Slide 20: Investment Holdings
Dream Alternatives Trust - Investment Holdings Net Asset Property Investment Percentage Current Expected Closing Value Per Value Presold/Preleased Occupancy Date Range Unit $2.37 Villarboit Retail Developments $87.5 million 35.6% NA Q4 2014 – Q4 2018 Empire Brampton (Lakeview) $21.5 million 46.5% NA
Slide 21: Renewable Power
Dream Alternatives Trust – Renewable Power Net Asset Value $.17 per unit Net Assets $13 million Total Assets $14.4 million Portfolio Amount Committed to fund new projects (as at Sept 30, 2014) $15.3 million Projected levered return on new commitments 11.5% Megawatt Capacity on Projects Under Develop
Slide 22: Renewable Power
Dream Alternatives Trust - Renewable Power Renewable power investments have typically provided predictable returns at levels that are higher than from income properties. • We have committed to invest an additional $15 million in renewable power as at Sept 30, 2014 providing an estimated levered retu
Slide 23: Current Cash and Future Investments
Dream Alternatives Trust - Current Cash and Future Investments Net Asset Value Per Unit Net Assets $77.7 million $1.05 Portfolio Lending Portfolio Additional Loan Commitments (as at Sept 30,2014) $68 MLN As at November 6, 2014 $77.7 MLN Weighted average interest rate on future loan investments (as a
Slide 24: Potential Future Stabilized Portfolio
Dream Alternatives Trust - Potential Future Portfolio - Potential Future Stabilized Portfolio* — During the time it takes to turn over the assets, Dream believes it will improve the existing assets, invest in consistent and higher returning assets such as renewable power and identify lending and Inc
Slide 25: Attractive After Tax Returns
Dream Alternatives Trust - Attractive After Tax Returns • Fixed distribution of $0.40 per unit - implied yield of 6.1%.* • DAT has very favourable tax advantages as almost all of its distributions are return of capital. • Management estimates that 75% of distributions will be return of capital for 2
Slide 26: Summary and Outlook
Dream Alternatives Trust - Summary and Outlook • Based on the expected re-investment of proceeds from investments, Dream believes that the initial fixed distribution $0.40 can be sustained and then increased over time potentially to $0.48 in 2016. • As the non-producing assets are liquidated over ti
Slide 27: Strength of Dream – The Asset Manager
Strength of Dream – The Asset Manager Dream Unlimited Corp. (TSX: DRM) Asset Management Operating Businesses Dream Office Dream Global Dream Dream Hard Asset Land Housing and Renewable REIT REIT Industrial REIT Alternatives Trust Development Urban Power (TSX: D.UN) (TSX: DRG.UN) (TSX: DIR.UN) (TSX:
Slide 28: Depth and Expertise of our Team
Depth and Expertise of our Team Portfolio Portfolio Management Management Joshua Kaufman Adam Reeds Michael Kosiancic Lindsay Brand Michael Cooper VP, Retail & Commercial Director, Renewable Power VP, Firelight Infrastructure Investments CEO Dream, Portfolio Manager DAT Development Investments Partn
Slide 29: Experienced and Diverse Board of Directors
Experienced and Diverse Board of Directors • President & CEO –Dream Unlimited Corp. Michael Cooper • Board Member – Dream Unlimited Corp., Dream Office REIT, Dream Global REIT, Dream Industrial REIT, Atrium Mortgage Investment Corporation • CFO –Dream Unlimited Corp Pauline Alimchandani • Vice Presi
Slide 30: Appendix: Portfolio Highlights
Dream Alternatives Trust | Appendix Appendix: Portfolio Highlights 30
Slide 31: Income Producing Properties (Co-Owned with Dream Office REIT)
Dream Alternatives Trust - Income Producing Properties (Co-Owned with Dream Office REIT) West Metro Valhalla Executive 2010 Winston Park London City Centre Sussex Centre Corporate Centre Commerce West Centre Drive 10 Lower Spadina Description Two Class A office Two Class A, LEED Gold, Three building
Slide 32: Income Producing Properties – (Co-Owned with Dream Office REIT)
Dream Alternatives Trust - Income Producing Properties – (Co-Owned with Dream Office REIT) Gateway Business 219 Laurier Ave 460 Two Nations 2810 Matheson Blvd 49 Ontario Street Lansdowne Village Tillsonburg Gateway Crossing Centre West Description 8 storey office building Contemporary office 10 buil
Slide 33: Income Producing Properties – (Co-Owned with Dream Office REIT)
Dream Alternatives Trust - Income Producing Properties – (Co-Owned with Dream Office REIT) 55 Norfolk St S. Wedgewood Plaza 6501-6523 6531 – 6559 80 Whitehall Mississauga Road Mississauga Road Description 2 storey Class B building which Suburban retail plaza with excellent 2 storey Class A office bu
Slide 34: Investment Holdings - Villarboit Retail Developments
Dream Alternatives Trust | Investment Holdings - Villarboit Retail Developments Villamark Laurentian Square Mcleod Centre Brookdale Square 221 Henry Street Heritage Grove 890 Mckeown Road Description 440,000 square feet of Five acre, 65,000 square Mixed use site, 11 acre 2 phase development 2 phase
Slide 35: Investment Holdings – Castlepoint and Empire Communities
Dream Alternatives Trust - Investment Holdings – Castlepoint and Empire Communities Castlepoint Empire Eau du Soleil Empire Lakeview Description Mixed use development, 165,000 square Eau Du Soleil: 1258 unit, two tower Lakeview: 96 acre site, 686 units, low-rise feet of GLA of residential space and
Slide 36: Investment Holdings – Bayfield LP's
Dream Alternatives Trust - Investment Holdings – Bayfield LP’s • The Bayfield LP Investments consist of an approximately 20% limited partnership interest in two separate L.P.’s with an Bayfield Mill Woods LP Bayfield Retail 2009 LP expected initial equity value of Edmonton, AB Kingston, ON; Winnipeg
Slide 37: Lending Portfolio – Highlights
Lending Portfolio – Highlights Manoir La Noblesse, Fairmont Tremblant Resort, Empire Communities St Jerome, and Laval, QC Mt Tremblant, QC Wyndance, Uxbridge, ON Applewood Homewood Hilldale Retirement Holiday Inn Express Isabella Developments Inc, Vaughan, ON Pomeroy Inn Suites Gardens, Thunder Bay,
Slide 38: Contact Information
Dream Alternatives Trust – Contacts Contact Information: Dream Hard Asset Dream Hard Asset Alternatives Trust Alternatives Trust Michael Cooper Cecilia Williams Portfolio Manager Vice President, Finance 416-365-5145 416-365-4185 mcooper@dream.ca cwilliams@dream.ca Dream Unlimited Dream Hard Asset Co
Slide 39: dream — building better communities
dream — building better communities
Dream Hard Asset Alternatives Trust — Q3 2014 Earnings Presentation on 6ix