Dream Unlimited Corp. Class A · TSX:DRM
Dream Unlimited Corp. Class A — Dream Office REIT — Investor Presentation (November 2022)
29 slides from Dream Unlimited Corp. Class A's investor presentation, November 2022
Slide 1: Dream Office REIT Investor Presentation November 2022
Dream Office REIT Investor Presentation November 2022
Slide 2: Dream Office REIT
Dream Office REIT D.UN Dream Office REIT (the “Trust” or “Dream Office”) is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest offi
Slide 3: Why Toronto?
Dream Office REIT 3 Why Toronto? 2nd Largest Financial Services Centre in North America Home to ~40% of Canada’s Business Headquarters - HQ of Canada’s Largest Stock Exchange - Home to Five of Canada’s Six Largest Banks ~20% #1 Fastest Growing City in Tech Employment in North of Canada’s GDP America
Slide 4: A Carefully Curated Investment Portfolio of High-Quality Assets
Dream Office REIT 4 A Carefully Curated Investment Portfolio of High-Quality Assets Redevelopment Potential TTC Line 1 High concentration of well 720 Bay St. connected assets in 655 Bay St. Downtown Toronto 4.9 years $2.1 B 250 Dundas St. W 80 Richmond St. 438 University Ave. 67 Richmond St. weighte
Slide 5: Portfolio is Primarily Comprised of Assets in Downtown Toronto
Dream Office REIT 5 Portfolio is Primarily Comprised of Assets in Downtown Toronto GLA by Region Fair Value by Region Other Markets Other Markets (1.9MM sf), 35% ($0.5B), 18% Toronto Toronto Downtown Downtown (3.4MM sf), 65% (2.1B), 82% Note 1 – Excluding properties under development and joint ventu
Slide 6: Creating Shareholder Value Through Unit Repurchases Below NAV
Dream Office REIT 6 Creating Shareholder Value Through Unit Repurchases Below NAV 70,000,000 $35.00 60,000,000 $30.00 50,000,000 $25.00 40,000,000 $20.00 30,000,000 $15.00 20,000,000 $10.00 10,000,000 $5.00 0 $0.00 1/ 6 2/ 7 3/ 7 4/ 7 1/ 7 2/ 8 3/ 8 4/ 8 1/ 8 2/ 9 3/ 9 4/ 9 1/ 9 2/ 0 3/ 0 4/ 0 1/ 0
Slide 7: Strong Management Alignment Through Significant Insider Ownership
Dream Office REIT 7 Strong Management Alignment Through Significant Insider Ownership ~38.7%* investment in Dream Office REIT by Dream Unlimited and Insiders In addition, Dream Unlimited Corp. manages Dream Office REIT’s developments and Dream Office REIT manages Dream Unlimited Corp.’s properties,
Slide 8: Well-Capitalized Balance Sheet and Staggered Debt Maturities
Dream Office REIT 8 Well-Capitalized Balance Sheet and Staggered Debt Maturities 42.6% Level of Debt* Mortgages Credit Facilities 500 $221M Available Liquidity* 400 $112M 300 Unencumbered Assets* 200 31.8% Variable Debt Exposure 100 4.22% 0 2023 2024 2025 2026 2027-2048 W.A. Face Rate of Interest As
Slide 9: Strong Leasing Momentum with Elevated Rents
Dream Office REIT 9 Strong Leasing Momentum with Elevated Rents Our near-term leasing and debt maturity profiles are very manageable. 165,000 sf Q3 Leases • In Q3 2022, we executed leases totaling approximately 165,000 sf across our portfolio. 133,000 square feet of leases in Toronto downtown were e
Slide 10: Dream Office REIT & Dream Industrial REIT
Dream Office REIT 10 Dream Office REIT & Dream Industrial REIT Dream Office REIT has a 9.7% interest in Dream Industrial REIT ($305M** investment) Dream Office REIT retained and expanded its interest in Dream Industrial REIT from its IPO in 2012. Dream Industrial REIT owns and operates a diversified
Slide 11: Revenue by Tenant Industry
Dream Office REIT 11 Revenue by Tenant Industry Estimated Annualized Gross Rental Revenue by Tenant Industry 3.6% 4.5% 5.9% Professional Services and Management 6.6% 33.5% Finance and Insurance Government and Government Agencies Health Care and Social Assistance Real Estate and Construction 20.7% Re
Slide 12: Top 10 Tenants
Dream Office REIT 12 Top 10 Tenants Investment Rank Tenant % of Rent* Grade 1 Government of Ontario 11.3% ! 2 Government of Canada 8.3% ! 3 State Street Trust Company 3.7% ! 4 International Financial Data Service 3.5% - 5 U.S. Bank National Association 2.5% ! 6 Co-operators Life Insurance 2.4% ! 7 M
Slide 13: Future Development Potential
Dream Office REIT 13 Future Development Potential Rezoned Current: 121,000 sf office building Current: 95,000 sf office buildings Current: 442,000 sf office building Future: 503,000 sf1 mixed-use building Future: 1.1 million sf mixed-use building Future: Targeting over 2.7 million sf (Dream Office h
Slide 14: Bay Street Collection – Before and After
Dream Office REIT 14 Bay Street Collection – Before and After Bay Street Collection Revitalizing our Bay Street collection adds significant value to our core Downtown Toronto assets. Before After Before After
Slide 15: ESG Overview
Dream Office REIT 15 ESG Overview ESG Prioritizing efficient and livable buildings has always been a part of our core values at Dream, which connects to our mission to Build Better Communities. Developing and maintaining high-quality, energy efficient office buildings has become a differentiator tha
Slide 16: Environmental
Dream Office REIT 16 Environmental In 2022, we made our second submission to the United Nations Principles for GRESB assessment. We achieved a five-star Responsible Investment↗ rating with a score of 92/100, an improvement 92 from our prior year score of 91/100. Our higher The United Nations Princip
Slide 17: Canada Infrastructure Bank Commitment
Dream Office REIT 17 Canada Infrastructure Bank Commitment Supporting Dream Office REIT’s target to achieve net zero greenhouse gas (GHG) emissions by 2035 or sooner for all its operations and new developments, the Canada Infrastructure Bank (CIB) is committing up to $112.9 million under its Commerc
Slide 18: Sustainability – Select Scoreboard
Dream Office REIT 18 Sustainability – Select Scoreboard Indicator Target 2019 2020 Y/Y change 10% reduction of energy Energy consumption (ekWh) consumption by 2025 170,417,623 141,298,958 -17% (v. 2019 base) 20% reduction of emissions by 2025, 50% reduction by 2030, Total GHG emissions (tCO2e) 100%
Slide 19: Social & Governance
Dream Office REIT 19 Social & Governance Gender Balance • D.UN’s strength as an organization comes from our strong and diverse workforce. • 57% of D.UN Trustees are women. Untitled, by up and coming artist • 45% of managers are women. Jorian Charlton at 330 Bay • The firm is committed to ensuring a
Slide 20: Investment in Alate - Using Technology to Rethink Real Estate
Dream Office REIT 20 Investment in Alate - Using Technology to Rethink Real Estate Alate Partners Dream Office REIT, along with Dream Unlimited, entered into a strategic partnership with Relay Ventures to create Alate Partners to invest in technology companies that are rethinking how real estate is
Slide 21: COVID-19 Response - Unique Features of our Downtown Toronto Assets
Dream Office REIT 21 COVID-19 Response - Unique Features of our Downtown Toronto Assets 1 2 3 Smaller Floor Plate Lower Rise Buildings Very Well Located Tenants can easily lease the Our lower-rise office buildings Our assets are well located in the entire floor and do not have to have a smaller numb
Slide 22: Disclaimer
Dream Office REIT 22 Disclaimer Forward looking information This investor 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 objectives; our abi
Slide 23: Feel free to contact us should you have any questions
Feel free to contact us should you have any questions Michael J. Cooper Jay Jiang Chairman & CEO CFO (416) 365-5145 (416) 365-6638 mcooper@dream.ca jjiang@dream.ca
Slide 24: Appendix I: Management Team
Dream Office REIT 24 Appendix I: Management Team Michael J. Cooper Chairman & CEO Service: 26 Years Industry Experience: 34 Years Jay Jiang CFO Service: 8 Years Industry Experience: 15 Years Gordon Wadley COO Service: 11 Years Industry Experience: 17 Years
Slide 25: Appendix II: Diverse and Independent Board
Dream Office REIT 25 Appendix II: Diverse and Independent Board Amar Bhalla Donald Charter Michael J. Cooper Jane Gavan Independent Independent The Hon. Dr. Kellie Leitch Karine MacIndoe Qi Tang Independent Independent Independent
Slide 26: Appendix III: History
Dream Office REIT 26 Appendix III: Dream Office REIT History 24% IRR** delivered to unitholders since our creation in 2003. We grew Dream Office REIT quickly and in 2007, we saw an opportunity to crystalize a premium value, selling two-thirds of our business and returning more than 100% of our unith
Slide 27: Appendix IV: DT Toronto Office Market Fundamentals
Dream Office REIT 27 Appendix IV: DT Toronto Office Market Fundamentals Historical Vacancy and Absorption 14% 4,000,000 Vacancy Rate Absorption 11.8% 3,000,000 12% 2,000,000 10% 9.7% 1,000,000 Absorption (sf) Vacancy (%) 8% 7.3% 7.2% 6.9% 0 6.1% 5.9% 6% 5.2% 5.0% 5.1% -1,000,000 4% 3.7% 3.7% -2,000,
Slide 28: Appendix V: DT Toronto Office Market Fundamentals
Dream Office REIT 28 Appendix V: DT Toronto Office Market Fundamentals Historical Class A Vacancy & Rent Growth* 12% $40 10% $35 8% Vacancy (%) Rent ($ PSF) 6% $30 4% $25 2% 0% $20 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Downtown Office (Vacancy – Class A)
Slide 29: Appendix VI: Toronto is the Fastest Growing City for Tech Employment
Dream Office REIT 29 Appendix VI: Toronto is the Fastest Growing City for Tech Employment 88,900 Toronto Seattle Van couver SF Bay Area Montreal Dallas / Ft.Worth Denver Los Angeles / Orange Co Phoenix Ottawa Portland Austin Between 2016 and 2021, Washington, DC Toronto had the most tech Salt Lake C
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