DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Office REIT — Investor Presentation (February 2022)
31 slides from DREAM Unlimited Corp. Class A's investor presentation, February 2022
Slide 1: Dream Office REIT Investor Presentation February 2022
Update Dream Office REIT Investor Presentation February 2022
Slide 2: Dream Office REIT
Dream Office REIT D.UN Dream Office REIT is a premier office landlord in downtown Toronto with approximately 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 office markets in the world
Slide 3: Why Toronto?
Dream Office REIT 3 Why Toronto? Top 10 Home to ~40% #1 Life & Health Global Financial of Canada’s Business Fastest Growing City in Tech Science attracts $1+ Centre Headquarters Employment in N. America billion in research
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 4.5 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 ($0.5B), 18% (2.0MM sf), 37% Toronto Downtown (3.4MM sf), 63% Toronto Downtown ($2.1B), 82%
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 6 17 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 01 20 20 20 20 20 20
Slide 7: Strong Management Alignment Through Significant Insider Ownership
Dream Office REIT 7 Strong Management Alignment Through Significant Insider Ownership ~35.8%* investment in Dream Office REIT by Dream and Insiders In addition, Dream Unlimited Corp. manages Dream Office REIT’s developments and Dream Office manages Dream Unlimited Corp.’s properties, enabling each t
Slide 8: Well-Capitalized Balance Sheet and Staggered Debt Maturities
Dream Office REIT 8 Well-Capitalized Balance Sheet and Staggered Debt Maturities 41.8% Leverage* 500 Mortgages Revolving Credit Facilities $201M 400 Available Liquidity* 300 $178M 200 Unencumbered Assets* 24% 100 Variable Debt Exposure 0 3.28% 2022 2023 2024 2025 2026 2027-2029 W.A. Rate of Interest
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 138,000 sf very manageable. Q4 Leases • In Q4 2021, we executed leases totaling approximately 138,000 sf across our portfolio. Downtown Toronto leases were renewed at rates 533,000 sf
Slide 10: Dream Office REIT & Dream Industrial REIT
Dream Office REIT 10 Dream Office REIT & Dream Industrial REIT Dream Office REIT has a 10.5%* interest in Dream Industrial REIT ($433M** 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 diversifi
Slide 11: Revenue by Tenant Industry
Dream Office REIT 11 Revenue by Tenant Industry Estimated Annualized Gross Rental Revenue by Tenant Industry 3.8% 4.8% 5.1% 34.0% 6.2% Professional Services and Management Finance and Insurance Government and Government Agencies Health Care and Social Assistance Real Estate and Construction 20.2% Re
Slide 12: Top 10 Tenants
Dream Office REIT 12 Top 10 Tenants Investment Rank Tenant % of Rent* Grade 1 Government of Ontario 10.9% ! 2 Government of Canada 8.0% ! 3 State Street Trust Company 5.5% ! 4 International Financial Data Service 3.3% - 5 US Bank National Association 2.4% ! 6 Co-operators Life Insurance 2.3% ! 7 Med
Slide 13: Cash Rent Collection During COVID-19
100% 90% 92% 94% 96% 98% Apr-20 98.4% May-20 98.0% Dream Office REIT Jun-20 97.7% Jul-20 98.0% As of February 7, 2022 Aug-20 97.9% Sep-20 98.3% Oct-20 99.3% Nov-20 99.2% Dec-20 99.1% Cash Rent Collection During COVID-19 Jan-21 99.5% Feb-21 99.2% Mar-21 99.4% Apr-21 98.8% May-21 98.7% Jun-21 97.4% Ju
Slide 14: Future Development Potential
Dream Office REIT 14 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 3 million sf (Dream Office has
Slide 15: Bay Street Collection – Before and After
Dream Office REIT 15 Bay Street Collection – Before and After Bay Street Collection Revitalizing our Bay Street collection adds significant value and improves tenant retention to our core Downtown Toronto assets. Before After Before After
Slide 16: ESG Overview
Dream Office REIT 16 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 17: Environmental
Dream Office REIT 17 Environmental D.UN achieved a five-star rating achievement in United Nations Principles for the 2021 Global Real Estate Sustainability Responsible Investment↗ Benchmark (GRESB)* real estate assessment. D.UN received a score of 91/100 which is one of The United Nations Principles
Slide 18: Sustainability – Select Scoreboard
Dream Office REIT 18 Sustainability – Select Scoreboard Indicator 2025 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) 10% reduction of emissions by Total GHG emissions (tCO2e) 2025 25,994 21,283 -18% (v. 2
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. • 50% of D.UN Trustees are women. Untitled, by up and coming artist • 46% 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: Using Technology to Rethink Real Estate – Lane
Dream Office REIT 21 Using Technology to Rethink Real Estate – Lane Case study Lane acquired by VTS Headquartered in Toronto, Lane helps leading property owners and managers unlock the full value of their assets and deliver a superior experience for everyone at their properties. The platform allows
Slide 22: COVID-19 Response - Unique Features of our Downtown Toronto Assets
Dream Office REIT 22 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 23: Return to Operations Plans: Supporting our Tenants to Return to Work Safely
Dream Office REIT 23 COVID-19 Response Return to Operations Plans: Supporting our Tenants to Return to Work Safely In 2021, Dream Office was recognized as Canada’s largest commercial portfolio to earn the WELL Health-Safety Rating for 25 buildings across Canada totalling 4.6 million square feet. Our
Slide 24: Disclaimer
Dream Office REIT 24 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 25: 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 26: Appendix I: Management Team
Dream Office REIT 26 Appendix I: Management Team Michael J. Cooper Chairman & CEO Service: 26 Years Industry Experience: 34 Years Founded Dream Asset Management, Dream Office REIT, Dream Industrial REIT, Dream Global REIT, Dream Impact Trust Jay Jiang CFO Service: 8 Years Industry Experience: 15 Yea
Slide 27: Appendix II: Diverse and Independent Board
Dream Office REIT 27 Appendix II: Diverse and Independent Board Detlef Bierbaum Donald Charter Michael J. Cooper Jane Gavan Independent Independent Robert Goodall The Hon. Dr. Kellie Leitch Karine MacIndoe Qi Tang Independent Independent Independent Independent
Slide 28: Appendix III: History
Dream Office REIT 28 Appendix III: Dream Office REIT History 24% IRR** delivered to unitholders since our creation in 2003. We grew the 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 unitholders’ i
Slide 29: Appendix IV: DT Toronto Office Market Fundamentals
Dream Office REIT 29 Appendix IV: DT Toronto Office Market Fundamentals Historical Vacancy and Absorption* 12% 4,000,000 Vacancy Rate Absorption 3,000,000 10% 9.7% 2,000,000 8% 7.3% 7.2% 1,000,000 6.9% Vacancy (%) 6.1% 5.9% 6% 0 5.2% 5.1% 5.0% 4.4% -1,000,000 4% 3.7% 2.7% -2,000,000 2.2% 2% -3,000,0
Slide 30: Appendix V: DT Toronto Office Market Fundamentals
Dream Office REIT 30 Appendix V: DT Toronto Office Market Fundamentals Historical Class A Vacancy & Rent Growth* 10% Vacancy – Class A Avg. Class A Net Rent $40 8% $35 Vacancy (%) Rent ($ 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 Downt
Slide 31: Appendix VI: Toronto is the Fastest Growing City for Tech Employment
Dream Office REIT 31 Appendix VI: Toronto is the Fastest Growing City for Tech Employment Toronto added 55,000 more tech talent jobs than graduates between 2016-2020 120,000 54,862 80,000 29,336 15,772 40,000 11,256 6,478 5,605 5,344 3,466 0 1,312 -2,560 -4,130 -5,762 -6,846 -6,914 -9,871 -13,339 -1
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