Dream Impact Trust · TSX:MPCT.UN
Dream Impact Trust — Investor Presentation (May 2021)
51 slides from Dream Impact Trust's investor presentation, May 2021
Slide 1: TSX: MPCT.UN
TSX: MPCT.UN
Slide 2: Presentation Overview
1 Presentation Overview Page Section 1 Introduction 2 Section 2 Impact Investing Overview 11 Section 3 Our Impact Approach 14 Section 4 Portfolio Overview & Strategy 26 Appendix I Summary of Portfolio Assets 33 Appendix II Impact Portfolio Highlights 35
Slide 3: Note 1 - Source: Global Sustainable Investment Review, 2018
2 Note 1 - Source: Global Sustainable Investment Review, 2018
Slide 4: MPCT is one of world's first public vehicles dedicated to sustainable cities
3 MPCT is one of world’s first public vehicles dedicated exclusively to inclusive, safe, resilient and sustainable cities Dream has a proven track record of building better communities; we have and continue to integrate sustainability best practices in all our business lines
Slide 5: Affordable Housing, Mitigating Climate Change, Social Inclusion
4 By 2030, every Canadian will have access to a home that they can Affordable Housing afford and meets their needs. There are currently 1.7 million households in core housing need. Mitigating Climate Achieve a 30% reduction in GHG by 2030, including the retrofit Change and recommissioning of Canada’
Slide 6: Dundee Office and Dream Industrial total return notes
5 Note 1 – Dundee Office total return from December 31, 2002 to June 4, 2007 Note 3 – Dream Industrial total return from IPO to May 4, 2021 Note 2 – Dream Office total return from December 31, 2008 to December 31, 2013 Source: Bloomberg
Slide 7: Over $35 Billion of real estate and renewable power transactions
6 Over $35 Billion Over $1 2 Billion $1 0 Billion of real estate and renewable power of financing transactions completed of assets under management transactions globally have been globally including unsecured debt, completed secured mortgages and revolving lines of credit ~$1 .5 Billion ~$7 Billion
Slide 8: Recurring Income, Stabilized Income Generating Assets, Development
7 Recurring Income Development Asset Management & Western Canada Stabilized Income Urban Development Equity Ownership in Community Generating Assets Toronto & Ottawa Dream Office REIT Development
Slide 9: Management team
8 Meaghan Peloso Tsering Yangki Michael Cooper Richard Florida 1 Jane Gavan Jason Lester Gordon Wadley Jamie Cooper Pino Di Mascio Stephen Cleghorn Kimberly Lefever Lee Hodgkinson Note 1 – Zanetti Photography
Slide 10: Board of Trustees
: hy y 4 A Amar Bhalla Chair Pauline Alimchandani Karine Macindoe Michael Tsourounis Trustee Independent Trustee Independent Trustee Independent Trustee
Slide 11: Committed impact investing platform with 25+ year track record
10 Committed impact investing platform with 25+ year track record; opportunities to embed impact investing across the Dream platform. Exceptional access to investment & partnership opportunities through Dream’s relationships and proven track record. Extensive and diversified network of financial ins
Slide 12: 2. Impact Investing Overview
11 2. Impact Investing Overview
Slide 13: Impact Investing Adoption Curve
DREAM IMPACT TRUST Building Better Communities (2) Impacting Investing Adoption Curve MPCT is well positioned as investor demand for impact investments with proven managers continues to accelerate. Investment Class Spectrum INVESTING. RESPONSIBLE Strong Financial USTAINABLE Returns Majority Intentio
Slide 14: Portfolio Stability, Market Demand, Longevity & Increased Competitiveness
13 Longevity & Increased Portfolio Stability Market Demand Competitiveness During periods of economic Residents and tenants are Investing in sustainable buildings uncertainty, impact investments increasingly demanding that the make our buildings more attractive exhibit resiliency and uncorrelated pl
Slide 15: 3. Our Impact Approach
dream » impact trust 3. Our Impact Approach
Slide 16: Deloitte decarbonization of real estate note
15 Note 1 – Deloitte, Decarbonization of Real Estate: End-to-End Business Transformation
Slide 17: Intentionality, Measurement, Verification
16 Intentionality Measurement Verification For every impact investment, Dream creates For each pathway, impact will be scored Our processes and our Dream Impact an impact plan that identifies multiple according to various dimensions. We intend Management System will be verified by a pathways to impa
Slide 18: Financial and impact underwriting conducted in parallel
17 As part of our due diligence procedures, financial and impact underwriting are simultaneously conducted and follow parallel approaches. Using our acquisition checklist, we identify opportunities for impact that align with the Trust’s three impact verticals. We establish concrete metrics and outco
Slide 19: Primary, secondary and negative impact pathways
18 Primary pathways are the Secondary pathways are an Negative pathways are the methods in which Dream extension of our impact negative externalities that intends to provide positive pathways, and they are Dream’s business activities impact, each of which is meant to further illustrate may have on p
Slide 20: Impact Management Project dimensions
19 Note 1 – Adapted from the Impact Management Project (IMP). This is the Dream order, not the IMP order of dimensions
Slide 21: Impact pathways scoring: duration, degree, contribution
20 What activity is Dream doing and what is the expected impact? All pathways are linked explicitly to one or more UN SDG and to a target and indicator under the corresponding SDG. All pathways are also connected to one of Dream’s three impact pillars1. The depth of Dream’s impact is measured by Dur
Slide 22: Future Outlook
DREAM IMPACT TRUST Building Better Communities @) Future Outlook Issue Net-Zero Roadmap Social Procurement Strategy Impact Leases Dream Impact Trust has announced the goal of being netzero carbon by 2035 - fifteen years ahead of the Paris Agreement mandate. Later this year, Dream is committed to cre
Slide 23: Addressing the shortage of attainable housing
22 We are focused on addressing one of the most prevalent issues facing Canadian cities: shortage of attainable housing. Developing mixed-income communities provides dignified homes to many under-supported segments of our society leading to: Increased Healthier, more stable More diverse discretionar
Slide 24: Indigenous Hub
23 Life Expectancy Income Inequality 15 years shorter life expectancy compared to other 30% lower income compared to national average2 Canadians1 Employment Shortfall Suicide Rate ~6% higher unemployment compared to national 5-6x the national average4 average3 The purpose-built Indigenous Hub integr
Slide 25: Zibi sustainable and accessible community
24 Creating a world-class sustainable + accessible community that fosters healthy living, well-being and inclusivity, including partnering with Algonquin Anishinábe nation and people to promote and integrate First Nations culture into the development First One Planet Master- Healthy living, Reducing
Slide 26: Brightwater remediation of former refinery site
25 Formerly a refinery site, Dream and its partners remediated the entire site, unlocking contaminated lands to create an energy efficient inclusive waterfront community comprising 3,000 residential units and ~350,000 sf of retail and commercial space Inclusive and Reduced pollution and sustainable
Slide 27: 4. Portfolio Overview & Strategy
26 4. Portfolio Overview & Strategy
Slide 28: Largest mixed-income development project in Canada
27 Largest mixed-income Over 4 million sf of real estate in development project in Canada - North America’s most sustainable ~2,300 units community Remediating & redeveloping a First purpose-built Indigenous former oil refinery into a vibrant Hub in any major North American and accessible, mixed-use
Slide 29: Impact portfolio by project
28 Zibi ✓ ✓ ✓ West Don Lands ✓ ✓ ✓ Indigenous Hub ✓ ✓ Brightwater ✓ ✓ Sussex Center ✓ Lakeshore East 349 Carlaw ✓ 100 Steeles Ave. West 49 Ontario Street 10 Lower Spadina ✓ Frank Gehry Project 68-70 Claremont ✓ ✓ 76 Stafford ✓ ✓ ✓ Defined Impact Impact Opportunity - Non-Impact Note 1 – As at March 3
Slide 30: ~$650 million assets, ~17,000 units, 23% discount to NAV
29 Of high-quality assets primarily located in the Greater Toronto Area and ~$650 million Ottawa1. ~17,000 Units + ~17,000 residential units and over 3.5 million square feet of commercial GLA in 3.5M+ sf our development pipeline2. Debt-to-asset value – conservative leverage provides enhanced financi
Slide 31: Illustrative returns notes
30 Note 1 - For illustrative purposes only. Actual results may vary Note 3 - Distribution based on current unit count Note 2 – Reflects return from 2020+ Note 4 - Net of projected management fees, taxes, interest and development costs
Slide 32: Valuation notes
31 % ’s) Note 1 – Inclusive of total equity-accounted investments as per Note 9 of the MD&A Note 2 – Source: Bloomberg; Pricing Date: May 3rd, 2021
Slide 33: Recurring income expected to increase through 2025
32 Recurring income is expected to continue to increase through 2025 with the stabilization of existing development assets Note 1 - For illustrative purposes only. Actual results may vary
Slide 34: Appendix I: Summary of Portfolio Assets
33 Appendix I: Summary of Portfolio Assets
Slide 35: Summary of portfolio assets
34 Property Ownership2 Location Impact Status3 Project Status Property Type Expected Stabilization 68-70 Claremont 100%4 Toronto & GTA I, E Income property Office Stabilized 76 Stafford 100%4 Toronto & GTA I, E Income property Office + Retail Stabilized Sussex Centre 50.1% Toronto & GTA I, E Income
Slide 36: Appendix II: Impact Portfolio Highlights
35 Appendix II: Impact Portfolio Highlights The following information is based on current market conditions and is subject to change.
Slide 37: Environmental Sustainability, Attainable Housing, Inclusive Communities
Environmental Sustainability Attainable & Affordable Inclusive Communities and Resilience Housing Generating meaningful impact by creating real estate that makes communities better
Slide 38: WDL Rentals
37 Dream Impact Trust holds an 25% interest in the development of a LEED Gold rental project in downtown Toronto. The three-phase project will be comprised of 70% market rental units (1,595 units) and 30% affordable or accessible units (684 units). In June 2019, the Project secured a $357 million, 1
Slide 39: Note 1 – National Energy Code of Canada for Buildings
38 Note 1 – National Energy Code of Canada for Buildings
Slide 40: Canary Indigenous Hub
39 Dream Impact Trust has a 25% ownership interest in the project. Partnership to build North America's first purpose-built Indigenous Hub. The project will integrate Indigenous healthcare, childcare, and education into a mixed-use development. The Trust will develop and own the residential and comm
Slide 41: Notes on Indigenous health and energy code
40 Note 1 – National Energy Code of Canada for Buildings Note 2 – National Collaborating Centre for Indigenous Health, 2019
Slide 42: Zibi One Planet Master-Planned Community
41 As the first One Planet Master-Planned Community in Canada, Zibi is envisioned to be one of the most environmentally conscious and sustainable communities in the country. Zibi will adhere to the 10 principles of the One Planet Living Framework – from eliminating Greenhouse Gas emitting energy sou
Slide 43: Indigenous engagement and project milestones
42 Celebrating major project milestones with traditional celebrations led by members of the AOPFN and by employing public art, signage, and landscaping in prominent areas to recognize Algonquin Traditional Territory. Provide public access to the Ottawa River for the first time in generations and col
Slide 44: Zibi office building leased to Federal Government
43 The 8-storey, 185,000 sf office building is 86% leased to the Federal Government on a 15-year lease. The building will meet One Planet Standards, a sustainability framework jointly designed by Bioregional and the World Wildlife Fund. Occupancy is on track for November 2021 with the building struc
Slide 45: Note 1 – National Energy Code of Canada for Buildings
44 Note 1 – National Energy Code of Canada for Buildings
Slide 46: Zibi District Energy System
45 The District Energy System will provide self-sufficient, net-zero heating and cooling for all tenants, residents, and visitors through a hydronic loop & Energy Transfer Stations. Critical component of ensuring Zibi will become the region’s first net zero-carbon-emission community. The Trust will
Slide 47: Brightwater 72-acre waterfront site
46 Dream and its partners acquired the 72-acre site in 2017 which previously had served as an oil refinery. After completing a significant remediation program, vertical construction on the vibrant waterfront community is set to commence in 2021. First two condo towers are 100% sold. Awarded BILD's 2
Slide 48: Victory Soya Mills Silos
47 The Victory Soya Mills Silos were constructed during WWII to store commodities prior to transportation across Canada. The silos were listed as one of Toronto’s Heritage Properties in 2004 adding to the uniqueness of any future development on the site. The development proposal includes the preserv
Slide 49: Income property sustainability initiatives
48 Working towards BOMA BEST recertification at 49 Ontario, 10 Lower Spadina, and 349 Carlaw. Working towards 2021 LEED Gold certification at Sussex Center, the largest income property in the portfolio. Sussex Center, built in 1989, was selected for one of Canada’s first green loans in 2020 as a res
Slide 50: Forward-Looking Information & Non-IFRS Measures
DREAM IMPACT TRUST Building Better Communities Forward-Looking Information & Non-IFRS Measures Forward-Looking Information This presentation may contain forward-looking information within the meaning of applicable securities legislation, including statements relating to the Trust's objectives and st
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