Mr. Brian Pauls reports

DREAM INDUSTRIAL REIT REPORTS STRONG Q3 2023 FINANCIAL RESULTS AND ANNOUNCES APPOINTMENT OF NEW CHIEF EXECUTIVE OFFICER

Dream Industrial Real Estate Investment Trust has released its financial results for the three and nine months ended Sept. 30, 2023. Management will host a conference call to discuss the financial results on Nov. 8, 2023, at 3 p.m. ET.

Highlights:

• Diluted funds from operations per unit were 25 cents in third quarter 2023, a 10.4-per-cent increase when compared with 22 cents in Q3 2022.
• Comparative property net operating income (constant currency basis) was $84.6-million in Q3 2023, a 10.4-per-cent increase when compared with $76.6-million in Q3 2022. The Canadian portfolio posted a year-over-year CP NOI (constant currency basis) growth of 12.1 per cent. The European portfolio saw 8.9 per cent year-over-year CP NOI (constant currency basis) growth.
• Net rental income was $84.5-million in Q3 2023, a 17.4-per-cent increase when compared with $72.0-million in Q3 2022. Year-over-year net rental income increased by 17.2 per cent in Ontario, 8.6 per cent in Quebec, 3.4 per cent in Western Canada and 21.5 per cent in Europe excluding disposed investment properties, primarily driven by strong CP NOI (constant currency basis) growth in 2023 and 2022 and the impact of acquired investment properties in the past year.
• Net income was $50.5-million in Q3 2023, a decrease of $75.2-million when compared with net income of $125.7-million in Q3 2022, mainly driven by fair value adjustments to financial instruments. The net income in Q3 2023 was composed of net rental income of $84.5-million, fair value adjustments to investment properties of ($33.5-million), fair value adjustments to financial instruments of $15.1-million and other expenses of $15.6-million.
• Total assets were $7.9-billion as at Sept. 30, 2023, a 7.9-per-cent increase when compared with $7.3-billion as at Dec. 31, 2022, driven by acquisitions and higher investment property values.
• Total equity including limited partnership B units and total equity per condensed consolidated financial statements were $4.8-billion and $4.6-billion as at Sept. 30, 2023, respectively. This represents a 2.7-per-cent increase and a 3.9-per-cent increase, respectively, when compared with Dec. 31, 2022.
• Net asset value per unit was $16.80 as at Sept. 30, 2023, compared with the NAV per unit of $16.97 as at Dec. 31, 2022.
• Alexander Sannikov, currently president and chief operating officer of trust, has been appointed president and chief executive officer of the trust, effective Jan. 1, 2024. Brian Pauls will be stepping down as chief executive officer at the end of 2023 to focus on Dream Industrial's U.S. multifamily operations as chief executive officer of Dream Residential Real Estate Investment Trust.

"DIR continues to outperform the market across all operating and financial metrics with continued strong CP NOI and FFO per-unit growth," said Mr. Pauls. "The value creation potential from the embedded growth opportunities within our portfolio and our private capital partnerships should allow us to continue to deliver strong returns for unitholders. Our financing initiatives have further enhanced our balance sheet strength and flexibility, and allow us to pursue opportunities to continue to enhance the overall quality of our portfolio and the business."

Management update

The trust is pleased to announce the appointment of Mr. Sannikov as president and chief executive officer of the trust, effective Jan. 1, 2024. Mr. Sannikov joined Dream Asset Management Corp., the trust's asset manager, in 2008. Mr. Sannikov joined the trust's management team in 2019, and is currently serving as the president and chief operating officer of the trust. In his new role, Mr. Sannikov will oversee all aspects of the trust's business as Dream Industrial continues to execute on core pillars of its strategy. Mr. Pauls will be stepping down as chief executive officer at the end of 2023 to focus on Dream Industrial's U.S. multifamily operations as chief executive officer of Dream Residential Real Estate Investment Trust.

"Over the past six years since joining the REIT as CEO, Brian has done an outstanding job in leading DIR to become one of the largest industrial landlords in the country with over 70 million square feet of industrial assets under management in strong markets across Canada, Europe and the [United States]," said Vincenza Sera, chair of Dream Industrial. "I would like to thank Brian for his remarkable achievements and wish him well on his continuing endeavours. We also welcome Alex as president and CEO, and recognize his significant contributions to the REIT since he joined in 2019. He has been leading the operations and the development program of the REIT, and has been instrumental in strengthening DIR's private capital partnerships, including the recent acquisition and integration of the Dream Summit portfolio. We look forward to his continued contributions to the REIT as its new leader."

Conference call

Senior management will host a conference call to discuss the financial results on Wednesday, Nov. 8, 2023, at 3 p.m. ET. To listen to the conference call, please dial 1-800-319-4610 (toll-free) or 416-915-3239 (toll). To listen to the conference call by webcast, please go to Dream Industrial's website, and click on the link for news, and then click on events. A taped replay of the conference call and the webcast will be available for 90 days following the call.

Other information

Information appearing in this press release is a select summary of financial results. The condensed consolidated financial statements and management's discussion and analysis for the trust will be available at the Dream Industrial website and on SEDAR+.

Dream Industrial is an unincorporated, open-ended real estate investment trust. As at Sept. 30, 2023, Dream Industrial owns, manages and operates a portfolio of 322 industrial assets totalling approximately 70.6 million square feet of gross leasable area in key markets across Canada, Europe and the U.S. Dream Industrial's goal is to deliver strong total returns to its unitholders through secure cash flows underpinned by its high-quality portfolio and an investment-grade balance sheet, as well as driving growth in its net asset value and cash flow per unit.

We seek Safe Harbor.