DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Industrial REIT — Investor Presentation (March 2022)
40 slides from DREAM Unlimited Corp. Class A's investor presentation, March 2022
Slide 1: Dream Industrial REIT Investor Presentation March 2022
Update Dream Industrial REIT Investor Presentation March 2022
Slide 2: Presentation Overview
2 401 Marie-Curie Boulevard, Montréal, QC, Canada Presentation Overview Section 1 Our Company & Strategy Section 2 Organic Growth and Value-Add Section 3 Financial Highlights Section 4 Portfolio Highlights Section 5 ESG Highlights
Slide 3: Our Company & Strategy
Our Company & Strategy Exportweg 20–20, Waddinxveen, Netherlands
Slide 4: Company Snapshot
Dream Industrial REIT 4 Company Snapshot Dream Industrial REIT TSX: DIR.UN Dream Industrial REIT (DIR) owns, operates and manages a $6 billion diversified portfolio of well-located industrial Guldenweg 6, Varsseveld, Netherlands real estate across Canada and Europe, supported by a platform with a pr
Slide 5: Our Strategy
Dream Industrial REIT 5 Our Strategy Global Acquisition Development and Conservative Financial Asset Management Platform Intensification Policy Maintain conservative leverage, Local on the ground teams Building prime product in core Drive organic NOI growth by build up high quality with a strong tra
Slide 6: Experienced Management Team
Dream Industrial REIT 6 Experienced Management Team Brian Pauls Alex Sannikov Lenis Quan Bruce Traversy CEO COO CFO SVP, Head of Investments Joe Iadeluca Victor Settino Sharlene McKillop Sjoerd Barmentloo SVP, Portfolio Management VP, Development VP, Property Management Associate VP, Asset Managemen
Slide 7: Strong Track Record of Disciplined Capital Allocation
Dream Industrial REIT 7 Strong Track Record of Disciplined Capital Allocation Since 2018, recycled approximately $280 million of non- core assets and acquired more than $3.4 billion of higher Increased NAV per unit by 58% since year-end 20161 quality assets that are located in better markets with hi
Slide 8: Focused Portfolio Strategy
Dream Industrial REIT 8 Focused Portfolio Strategy Canada Europe U.S. Target Markets Greater Toronto Germany, Netherlands, France Strong markets across the U.S. Greater Montréal 1. Supply/demand imbalance 1. Growing e-commerce 1. Strong e-commerce demand Rationale 2. Strong rental growth 2. Supply/d
Slide 9: Focus on Modern, Functional & Well-located Urban & Distribution Assets
Dream Industrial REIT 9 Focus on Modern, Functional & Well-located Urban & Distribution Assets Distribution1 Urban Logistics1 Light Industrial1 56% of IP Value 31% of IP Value 13% IP Value Canada Europe $627M $428M 87% Canada 25% $1,482M Europe 47% $1,690M 53% Canada $1,299M Europe 75% $93M 13% 26.5
Slide 10: Flexible Balance Sheet with Ample Liquidity
Dream Industrial REIT 10 Flexible Balance Sheet with Ample Liquidity Capital Structure 1 Strong and Flexible Balance Sheet 24% Net Total Debt-to-Total Assets (Net of Mortgages Cash and Cash Equivalents)3 31% Unsecured Debt 7% Equity 2 Unencumbered Investment Properties4 $4.2B 69% Available Liquidity
Slide 11: Q4-2021 and YE 2021 Financial Highlights
Dream Industrial REIT 11 Q4-2021 and YE 2021 Financial Highlights Diluted FFO per Unit1 increased 13% year-over-year in Q4-2021 and 15% year-over-year in Q4-2021, led by strong CP NOI growth, 1 lower cost of debt, and robust pace of capital deployment Comparative properties NOI2 increased 7.6% year-
Slide 12: ESG Highlights
Dream Industrial REIT 12 ESG Highlights Environmental Social Governance 1.2 Million sf of LED lighting upgrades1 Developed ESG Framework 61% Outlining key milestones and initiatives with executive 2.4 Million of managers are women3 compensation linked to ESG metrics and deliverables sf of green buil
Slide 13: Balanced Total Return Model
Dream Industrial REIT 13 Balanced Total Return Model Organic NOI Growth NAV per Unit Growth FFO per Unit Growth Robust pace of organic growth Strong rent mark-to-market potential Strong fundamentals driving continued growth in market rents and increase in Execution of Euro debt strategy High occupan
Slide 14: Organic Growth and Value-Add
Organic Growth and Value-Add 6 Mesonweg, Utrecht, Netherlands
Slide 15: Strong Outlook for Organic Growth
Dream Industrial REIT 15 Strong Outlook for Organic Growth 1 Strong mark-to-market potential 2 High occupancy levels 99% $12.50 +24.4% +6.8% 98% $10.00 C$9.79 98% C$7.87 $7.50 97% € 4.72 € 5.04 96% 96% $5.00 96% $2.50 95% Canada Europe 2019 2020 2021 In-place and committed base rent (psf) Estimated
Slide 16: Poised For Strong Rental Rate Growth on Lease Roll-over
Dream Industrial REIT 16 Poised For Strong Rental Rate Growth on Lease Roll-over Committed Occupancy Retention Ratio 100% 100% 96% 97% 97% 98% 96% 96% 95% 95% 96% 96% Percentage of overall portfolio of GLA 80% 80% 80% 78% 74% 76% 74% 73% 71% 70% 60% 67% 90% 86% 88% 89% 85% 63% 60% 40% 40% 20% 10% 14
Slide 17: Development Strategy
Dream Industrial REIT 17 Development Strategy Redevelopment of existing Greenfield development Intensification of excess land properties 30-acre site in the GTA that can add a 550,000 ~700,000 SF of projects currently underway SF Class A logistics facility in three years with an expected unlevered y
Slide 18: Activating Development Pipeline – Greenfield
Dream Industrial REIT 18 Activating Development Pipeline – Greenfield Maple Grove Road, Brampton East Lands, Cambridge, ON Greater Toronto Area, ON 28-acre site located in Cambridge; site should support the development of ~420,000 square feet in the next 24 months Targeting unlevered yield on cost o
Slide 19: Activating Development Pipeline – Intensification, Marie Curie Boulevard
Dream Industrial REIT 19 Activating Development Pipeline – Intensification 401 Marie Curie Boulevard, Greater Montréal Area Current Property 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 current site coverage
Slide 20: Activating Development Pipeline – Intensification, East Beaver Creek
Dream Industrial REIT 20 Activating Development Pipeline – Intensification 100 East Beaver Creek, Greater Toronto Area 110,000 square foot property located in the GTA, in close proximity to Highways 404 and 407 Expanding property by over 40,000 square feet; construction is underway with completion e
Slide 21: Activating Development Pipeline – Intensification, Radeberg
Dream Industrial REIT 21 Activating Development Pipeline – Intensification Christoph-Seydel-Straße 1, Radeberg, Germany 274,000 square foot property on 30.4 acres located in Radeberg, Germany, adjacent to Dresden with 24’ clear height Current Property Excess land will support a 241,000 square foot l
Slide 22: Active Asset Management Case Studies
Dream Industrial REIT 22 Active Asset Management Case Studies 60 Steckle Place, Kitchener, ON 165 Harwood Avenue N., Ajax, ON Property adjacent to DIR’s existing Kitchener portfolio, acquired Distribution facility built in the early 2000s well-located in the for $12 million GTA East sub-market b
Slide 23: Financial Highlights
Financial Highlights 1 Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financi
Slide 24: Increasing Pace of Organic Growth Drives Strong FFO per unit
Dream Industrial REIT 24 Increasing Pace of Organic Growth Drives Strong FFO per unit 2 Diluted FFO per Unit1 Average Net Debt to Assets Change in wtd. average occupancy Change in in-place base rent 7.6% $0.24 40% YoY CP NOI growth $0.22 1.9% $0.21 1.8% 0.8% $0.19 $0.19 $0.19 $0.18 32.2% $0.18 $0.17
Slide 25: Unencumbered Investment Properties Pool
Dream Industrial REIT 25 Strong and Flexible Balance Sheet Focused de-leveraging while upgrading portfolio Shift to unsecured financing model significantly increased improved financial flexibility unencumbered investment properties pool 1 2 Ending Net Total Debt-to-Total Assets (Net of Cash and Cash
Slide 26: Significantly Lowered Cost of Debt
Dream Industrial REIT 26 Significantly Lowered Cost of Debt YE 2019 YE 2020 YE 2021 2% 23% 35% 29% 3.6% 2.6% 0.83% Weighted Avg. Weighted Avg. Weighted Avg. Interest Rate 6% Interest Rate Interest Rate 65% 69% 71% ` North American Debt Euro and Euro-equivalent Debt Equity1 Our European platform has
Slide 27: Limited Cash Obligations Provide Significant Acquisition Capacity
Dream Industrial REIT 27 Limited Cash Obligations Provide Significant Acquisition Capacity $600M 3.8 0.8% years $484M $492M $500M WATM1 WAIR2 $464M ~$512M Available liquidity3 $400M $300M $259M $250M ~31% Net Total Debt-to-Total Assets (Net of Cash and Cash $200M Equivalents)4 $100M $33M ~$500M $0M
Slide 28: Portfolio Highlights
Portfolio Highlights Emil-Lux-Str. 1, Wermelskirchen, Germany
Slide 29: Broad Tenant Base Provides Diversified Rental Income
Dream Industrial REIT 29 Broad Tenant Base Provides Diversified Rental Income Use of Space by Annualized Gross Rent1 Industry Exposure by Annualized Gross Rent1 Other Logistics Cold Storage 6% Office 19% 2% 6% Other* 26% Light Industrial Food and Paper, Printing, and 22% Beverage Packaging Distribut
Slide 30: Top Tenants Consist of Renowned Global Companies
Dream Industrial REIT 30 Top Tenants Consist of Renowned Global Companies Top 10 tenants by gross revenue Industry Use of Space Auchan, a privately owned French international retail group, is one of the largest Food and Distribution & grocery chains in France with €32B in annual revenues, and the 11
Slide 31: Adding Scale and High-Grading Portfolio
Dream Industrial REIT 31 Adding Scale and High-Grading Portfolio Robert-Koch-Strasse 8, Winsen, Germany 165 Harwood Avenue N., Ajax, ON 1 Rutherford Ct., Guelph, ON* Laan van Ypenburg 60, 64, 108, 114, The Hague, Netherlands In Q4-2021, acquired ~$474M of income-producing assets across Canada and
Slide 32: Recent Acquisitions - Canada
Dream Industrial REIT 32 Recent Acquisitions - Canada Greater Golden Horsehoe Portfolio, Ontario $160M 1.0M SF 74 IP Value GLA Acres 25 ft 100% 11 Clear height Occupancy Num. of buildings 100% occupied by strong tenants primarily in the logistics, automotive, and consumer goods sector. Average in-pl
Slide 33: Recent Acquisitions - Germany
Dream Industrial REIT 33 Recent Acquisitions - Germany 1 Emil-Lux-Straße, Wermelskirchen, Germany Robert-Koch-Strasse 8, Winsen, Germany $65M 435K SF 19 $67M 250K SF 11.5 IP Value GLA Acres IP Value GLA Acres 32 ft 100% 1 34 ft 100% 1 Clear height Occupancy Num. of buildings Clear height Occupancy N
Slide 34: Recent Acquisitions - Netherlands
Dream Industrial REIT 34 Recent Acquisitions - Netherlands Mesonweg 6, Utrecht, Netherlands Laan Van Ypenburg 20-120 (TPY), The Hague, Netherlands $42M 183K SF 6 $129M 597K SF 25 IP Value GLA Acres IP Value GLA Acres 40 ft 100% 1 22 100% 5 Clear height Occupancy Num. of buildings Num. of tenants Occ
Slide 35: ESG Highlights
ESG Highlights Newtonstraat 35, Heerhugowaard, Netherlands
Slide 36: Significant Initiatives to Enhance Sustainability Profile
Dream Industrial REIT 36 Significant Initiatives to Enhance Sustainability Profile As part of the Dream group of companies’ As part of the Dream group of companies’ DIR became an official supporter of the Task Force commitment1, DIR is supporting the Net Zero commitment1, DIR is supporting the Unite
Slide 37: Capital Investments in Clean Power
Dream Industrial REIT 37 Capital Investments in Clean Power Netherlands Canada Finalizing the addition of 30,0000 solar panels in Canada and the Netherlands in the near-term; total project cost of ~$15 million with expected unlevered yield on cost of over 8%
Slide 38: Green Financing
Dream Industrial REIT 38 Green Financing 650 rue Bergeron, Drummondville, QC, Canada Released Green Financing Framework in accordance with the UN Sustainable Development Goals Issued $400 million inaugural Green Bond, with proceeds expected to be allocated towards green buildings, energy efficiency,
Slide 39: Thank you
Stevinlaan 4, Ede, Netherlands Thank you Utrecht, Netherlands
Slide 40: Forward Looking Information and Non-GAAP Financial Measures
40 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 ac
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