Ms. P. Jane Gavan reports

DREAM GLOBAL REIT REPORTS Q1 2016 FINANCIAL RESULTS WITH CONTINUED STRONG LEASING MOMENTUM SUPPORTED BY RECORD LOW VACANCY RATES IN GERMANY'S KEY OFFICE MARKETS

Dream Global Real Estate Investment Trust today released its financial results for the quarter ended March 31, 2016. Dream Global REIT's management team will discuss the trust's business at its annual meeting, being held today at 4 p.m. (ET) at St. Andrew's Club and Conference Centre, 150 King St. West, 27th floor, in Toronto, Ont.

2016 first quarter highlights:

• Strong operating metrics:
  • Continued strong leasing performance with the completion of over 400,000 square feet of new leases and renewals in the first quarter of 2016; leasing momentum was driven by solid office market fundamentals in Germany's key office markets;
  • Increased occupancy reflecting the trust's active leasing and asset management program; in-place and committed occupancy of the overall portfolio increased by 200 basis points to 88 per cent year over year and by 50 basis points since the end of 2015;
  • Increasing leasing spread with market rents exceeding in-place rents by 6.6 per cent as at the first quarter of 2016;
  • Rental rate growth of 4.3 per cent across Deutsche Post leases due to a consummer price index (CPI) rental rate adjustment effective as of March, 2016.
• Investment highlights:
  • Added $65-million of high-quality office property acquisitions in the first quarter of 2016 in Munich and Essen, Germany, with an average cap rate of 7.1 per cent;
  • All-in mortgage rates near historic lows as evidenced by the trust's most recent financing of its acquisition of Werner-Eckert-Str. 14, 16 and 18 in Munich, completed at a fixed interest rate of 1.07 per cent for a seven-year term;
  • Continued capital recycling program with the sale of six properties from the trust's initial portfolio during the first quarter of 2016 for gross proceeds of $10-million and 13 additional properties currently held for sale for aggregate gross sales proceeds of $33.4-million.
• German real estate fundamentals remain favourable:
  • Low unemployment of 4.5 per cent continues to be among the lowest in Europe as at March, 2016;
  • Record-low vacancy in Germany's seven largest office markets with vacancy rates declining by 120 basis points year over year to 6.3 per cent at the end of the first quarter of 2016;
  • Moderate new supply in Germany's seven-largest markets with limited availability of new office space coming to market, representing less than 1 per cent of existing office stock.

"We are pleased with our progress so far in 2016. Supported by strong fundamentals in the office sector and a robust labour market, we believe that occupancy in our portfolio will continue to grow for the balance of 2016," said Jane Gavan, chief executive officer of Dream Global REIT. "In addition, after an extended period of low inflation, we have met the CPI threshold for a rent increase in the Deutsche Post leases, which will increase the trust's net operating income by over one million euros annually."

Key performance indicators

Year over year, the business of the trust has been significantly transformed through expanding its joint venture partnerships and an active capital recycling program, in addition to a strong and active acquisition pipeline. Some of the operating metrics, including net operating income, are therefore not directly comparable year over year.

                             FINANCIAL HIGHLIGHTS
                (in thousands of dollars, unless otherwise noted)

                                              March 31,        Dec. 31,       March 31,
                                                  2016            2015            2015

Portfolio
Number of properties                               203             208             237
Gross leasable area (GLA) (in
square feet)                                13,454,248      13,428,169      13,863,404
Occupancy rate -- including
committed (period-end)                           88.0%           87.5%           86.0%
Occupancy rate -- in-place
(period-end)                                     86.5%           86.8%           85.6%
Average in-place net rent per
square foot (period-end)                    9.66 euros      9.61 euros      9.26 euros
Market rents above in-place net
rents                                             6.6%            6.1%            3.3%
Total annualized Deutsche Post
gross rental income (GRI) as
per cent of total GRI                            22.0%           22.4%           26.3%
Operating results -- in euros
Net operating income (NOI)                27,388 euros    25,780 euros    27,441 euros
Operating results -- in $ 
Net operating income (NOI)                     $41,538         $37,692         $38,298
Funds from operations (FFO)                    $22,667         $21,338         $21,244
Adjusted funds from operations
(AFFO)                                         $22,131         $20,548         $19,862
Average exchange rate (Canadian
dollars to one euro)                             1.516           1.461           1.397
Distributions
Declared distributions                         $22,666         $22,578         $22,353
DRIP participation ratio (for
the period)                                        13%             14%             15%
Per-unit amounts 
Distribution                                     $0.20           $0.20           $0.20
Cash distribution (net of dividend
reinvestment plan)                                0.17            0.17            0.17
Basic FFO                                         0.20            0.19            0.19
Basic AFFO                                        0.20            0.18            0.18
Diluted FFO                                       0.20            0.19            0.19
Financing
Weighted average face rate of
interest on debt (period-end)                    2.48%           2.49%           3.10%
Interest coverage ratio                     2.78 times      3.08 times      3.02 times
Level of debt (net debt to
gross book value, net of cash)                     55%             54%             52%
Average level of debt (net
debt to gross book value, net
of cash)                                           54%             52%             52%
Debt -- average term to maturity
(years)                                            4.7             5.0             4.6

2016 first quarter operating highlights

Leasing initiatives

Leasing: In the first quarter of 2016, the trust completed over 400,000 square feet of new leases and renewals and continued selling non-core assets with generally lower occupancy rates. The largest transaction completed in the first quarter was a 15.5-year lease with a national chain of a large-scale fitness club for approximately 68,200 square feet at the trust's repositioning project in Saarbrucken. The lease will commence in September, 2016.

Deutsche Post rent adjustment: After an extended period of low inflation, the trust met the threshold for an upward adjustment, which will increase Deutsche Post's rental rate by 4.3 per cent, effective as of March, 2016, and is expected to add over one million euros to the trust's annual net operating income. The last such adjustment took place in December, 2011.

Occupancy: As a result of the trust's active leasing and asset management program, overall in-place and committed occupancy of the portfolio increased to 88 per cent at the end of the first quarter of 2016, up from 87.5 per cent at the end of the fourth quarter of 2015.

In-place rents: In the first quarter of 2016, in-place rents increased to 9.66 euros from 9.61 euros at the end of 2015, largely due to strong market conditions. Year over year, in-place rents increased by more than 4 per cent.

Growth initiatives

Acquisitions: On Feb. 3, 2016, the trust completed the previously announced acquisition of Europa-Center, a 147,000-square-foot, multitenant office building centrally located in Essen, Germany. The property was acquired for $41.5-million at a five-year average cap rate of 7.2 per cent and financed with a 10-year mortgage at a fixed rate of 1.62 per cent.

On Feb. 29, 2016, the trust acquired Werner-Eckert-Strasse 14, 16 and 18, a multitenant office building located immediately adjacent to one of the trust's existing assets in Munich. The property was built in 2002, is 96 per cent occupied and has a weighted average remaining lease term of 5.6 years. The property was acquired for $23.2-million at a cap rate of 6.1 per cent and financed with a seven-year mortgage at a fixed rate of 1.07 per cent.

Capital recycling: Six properties were disposed of during the first quarter of 2016 as part of the trust's continuing capital recycling program for an aggregate sales price of $10-million. In addition, as at March 31, 2016, 13 properties were held for sale for an aggregate sales price of $33.4-million, increasing its dispositions of initial properties since 2012 to almost $350-million. The trust continues to identify high-quality acquisition opportunities to reinvest the disposition proceeds.

Financial highlights

Funds from operations: FFO for the three months ended March 31, 2016, was $22.7-million, compared with $21.2-million for the three months ended March 31, 2015. On a per-unit basis, basic FFO for three months ended March 31, 2016, was 20 cents per unit, compared with 19 cents per unit for the three months ended March 31, 2015.

Adjusted funds from operations: AFFO was $22.1-million for the three months ended March 31, 2016, compared with $19.9-million for the three months ended March 31, 2015. On a per-unit basis, basic AFFO for three months ended March 31, 2016, was 20 cents per unit, compared with 18 cents per unit for the three months ended March 31, 2015.

The increase in FFO and AFFO in 2016, compared with 2015, reflects the impact of acquisitions, strong leasing, additional fees from the REIT's joint ventures, as well as a favourable exchange rate.

Capital initiatives

Financing: In the first quarter of 2016, the trust completed the financings of a 10-year $24.9-million mortgage at a fixed interest rate of 1.62 per cent for Europa-Center in Essen, and a seven-year mortgage at a fixed interest rate of 1.07 per cent for Werner-Eckert-Strasse 14, 16 and 18 in Munich.

The lending environment in Germany remains favourable, with historically low interest rates and lending margins. Dream Global REIT has been able to take advantage of these conditions, reflected by the decline in the average face interest rate to 2.48 per cent at the end of the first quarter of 2016, from 3.1 per cent a year ago.

Dream Global appoints new chief financial officer

The board of trustees of the REIT is pleased to announce the appointment of Tamara Lawson as the new chief financial officer of the trust, effective May 16, 2016. Ms. Lawson joins the REIT from Starlight Investments Ltd. where she has been the CFO since 2012, and brings over 25 years of financial management, operational and executive experience to Dream Global REIT. "We are delighted to welcome Tamara to the Dream Global team," commented Ms. Gavan, CEO of Dream Global REIT. "Tamara's extensive experience in the real estate industry will help drive our strategic vision for the future."

Rene Gulliver, who has decided to pursue other career opportunities, will remain with the REIT through the second quarter to ensure a smooth transition. Management of the trust and its board of trustees would like to thank Mr. Gulliver for his contributions over the past 3.5 years.

Information appearing in this news release is a select summary of results. The financial statements and management's discussion and analysis for the trust are available on the REIT's website and on SEDAR.

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