Dream Unlimited Corp. Class A · TSX:DRM
Dream Unlimited Corp. Class A — Dream Office REIT — Investor Presentation (May 2023)
25 slides from Dream Unlimited Corp. Class A's investor presentation, May 2023
Slide 1: Investor Presentation
Investor Presentation Dream Office REIT TSX:D.UN May 2023
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 ~30% 95.4 Financial Services Centre in North America of new immigrants in Global Liveability Canada settle in Toronto Index score - HQ of Canada’s Largest Stock Exchange - Home to Five of Canada’s Six Largest Banks ~40% 3rd ~20% of Canada’s Business Headq
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 1 425 Bloor St. E High concentration of well connected assets in 655 Bay St. Downtown Toronto 250 Dundas St. W 80 Richmond St. 5.0 years $1.9 B 438 University Ave. weighted average le
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 ($0.4B), 18% Other Markets (1.9MM sf), 37% Toronto Downtown (3.2MM sf), 63% Toronto Downtown ($1.9B), 82% Note 1 – Excluding properties under development and joint vent
Slide 6: Sale of 720 Bay above IFRS value
Dream Office REIT 6 Sale of 720 Bay above IFRS value On January 30, 2023, we closed the sale of 720 Bay for $135M, above the asset’s IFRS value. The property was pledged against our $375M revolving credit facility. The transaction improved our leverage ratio and balance sheet. We used the proceeds f
Slide 7: Returning Capital and Value to Unitholders
Dream Office REIT 7 Returning Capital and Value to Unitholders 70,000,000 $35 60,000,000 $30 50,000,000 $25 40,000,000 $20 30,000,000 $15 20,000,000 $10 10,000,000 $5 0 $0 Cumulative units repurchased under NCIB Units repurchased under SIB Cumulative weighted average purchase price Dream Office NAV
Slide 8: Strong Management Alignment Through Significant Insider Ownership
Dream Office REIT 8 Strong Management Alignment Through Significant Insider Ownership ~40.3%* investment in Dream Office REIT by Dream Unlimited Corp. and Insiders In addition, Dream Unlimited Corp. manages Dream Office REIT’s developments and Dream Office REIT manages Dream Unlimited Corp.’s proper
Slide 9: Well-Capitalized Balance Sheet and Staggered Debt Maturities
Dream Office REIT 9 Well-Capitalized Balance Sheet and Staggered Debt Maturities 43.0% Level of Debt* Mortgages Credit Facilities $231M 500 Available Liquidity* 400 $105M Unencumbered Assets* 300 9.7% 200 Variable Debt Exposure 100 4.24% 0 W.A. Face Rate of Interest 2023 2024 2025 2026 2027 2028+ As
Slide 10: Strong Leasing Momentum with Elevated Rents
Dream Office REIT 10 Strong Leasing Momentum with Elevated Rents We have made meaningful progress in leasing: • In Q1 2023, we executed leases totaling 184,000 sf approximately 184,000 sf across our portfolio. Q1 Leases 178,000 square feet of leases in Toronto downtown were executed at rents 10% hig
Slide 11: Dream Office REIT & Dream Industrial REIT
Dream Office REIT 11 Dream Office REIT & Dream Industrial REIT Dream Office REIT has a 9.4% interest in Dream Industrial REIT ($385M* investment) Dream Office REIT retained and generally increased number of units owned in Dream Industrial REIT from its IPO in 2012. Dream Industrial REIT owns and ope
Slide 12: Estimated Annualized Gross Rental Revenue by Tenant Industry
Dream Office REIT 12 Estimated Annualized Gross Rental Revenue by Tenant Industry 3.8% 6.1% 6.2% Professional Services and Management Finance and Insurance 35.5% 6.9% Government and Government Agencies Health Care and Social Assistance Real Estate and Construction 17.7% Retail, Food Services and Ent
Slide 13: Top 10 Tenants
Dream Office REIT 13 Top 10 Tenants Investment Rank Tenant % of Rent * Grade 1 Government of Canada 9.3% 2 Government of Ontario 6.5% 3 International Financial Data Services 3.5% - 4 International Language Academy of Canada 2.8% - 5 U.S. Bank National Association 2.7% 6 State Street Trust Comp
Slide 14: Future Development Potential
Dream Office REIT 14 Future Development Potential Rezoned Rezoned 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 sf1 mixed-use building, Future: Targeting over 2.7 million
Slide 15: Properties Under Development Highlight – 366 Bay St.
Dream Office REIT 15 Properties Under Development Highlight – 366 Bay St. Reclassification Start: Q1/21 Planned Completion: 2023 Est. Capital Spend: ~$16M Updated washroom Conceptual rendering Exterior Conceptual rendering The Alleyway
Slide 16: Bay Street Collection – Before and After
Dream Office REIT 16 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 17: Environmental
Dream Office REIT 17 Environmental In 2022, we made our second submission to the GRESB* assessment. We achieved a five-star United Nations Principles for rating with a score of 92/100, an improvement Responsible Investment↗ from our prior year score of 91/100. Our higher 92 score is attributable to
Slide 18: Sustainability – Select Scoreboard
Dream Office REIT 18 Sustainability – Select Scoreboard Indicator Target 2019 2020 2021 % Change (v. 2019 baseline) (v. 2019 baseline) 10% reduction of energy Energy consumption (ekWh) 170,417,623 141,298,958 146,268,282 -14% consumption by 2025 20% reduction of emissions by 2025, 50% reduction by 2
Slide 19: Canada Infrastructure Bank and Sustainability-Linked Loans
Dream Office REIT 19 Canada Infrastructure Bank and Sustainability-Linked Loans Sustainability-Linked Loans Supporting Dream Office REIT’s target to achieve In September 2022, Dream Office net zero greenhouse gas (GHG) emissions* by REIT negotiated a sustainability- 2035 or sooner for all its operat
Slide 20: Social & Governance
Dream Office REIT 20 Social & Governance Gender Balance Dream Group of Companies*’ goal is to be • D.UN’s strength as an organization comes from an inclusive employer that fosters a our strong and diverse workforce. workplace where diversity is recognized as • 57% of D.UN Trustees are women. our str
Slide 21: Investment in Alate - Using Technology to Rethink Real Estate
Dream Office REIT 21 Investment in Alate - Using Technology to Rethink Real Estate Alate Partners Dream Office REIT, along with Dream Unlimited Corp., entered into a strategic partnership with Relay Ventures to create Alate Partners to invest in technology companies that are rethinking how real esta
Slide 22: Appendix I: Management Team
Dream Office REIT 22 Appendix I: Management Team Michael J. Cooper Chairman & CEO Service: 26 Years Industry Experience: 35 Years Jay Jiang CFO Service: 8 Years Industry Experience: 15 Years Gordon Wadley COO Service: 11 Years Industry Experience: 17 Years
Slide 23: Appendix II: Diverse and Independent Board
Dream Office REIT 23 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 24: 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 25: Disclaimer
Dream Office REIT 25 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; the qua