Mr. Michael Cooper reports

DREAM UNLIMITED CORP. REPORTS FIRST QUARTER RESULTS

Dream Unlimited Corp. has released its financial results for the three months ended March 31, 2023.

"Our asset management division had increasing revenue and profits with the closing of the Summit transaction bringing our assets under management to $24-billion, Arapahoe basin had record profits with the introduction of our high-speed six-passenger chairlift and with a good snow year provided skiers with an exceptional experience, our residential revenue properties had record revenue, and the fiscal condition and population growth in Western Canada position us well for years to come," said Michael Cooper, chief responsible officer. "Our urban development business is progressing well with us indirectly closing on Quayside this quarter, our projects under development are progressing well and new developments will be started cautiously. Since 2016, we have sold $11-billion of $13-billion of office properties and the remaining $2-billion of assets are currently maintaining occupancy in a challenging market. Over all, Dream is positioned very well to thrive in the future."

A summary of the company's consolidated results for the three months ended March 31, 2023, is included in the attached table.

Earnings before income taxes for the three months ended March 31, 2023, were $41.7-million, down from earnings before taxes of $57.2-million in the comparative period. Prior-year earnings included higher fair value gains across the company's portfolio, including within equity accounted investments, as well as condominium unit occupancies at Canary Commons. While the company had stronger results from Arapahoe basin and a fair value gain on Dream Impact Trust units held by other unitholders, this was offset by higher interest costs across the company's business lines.

Dream consolidated funds from operations (FFO) for the three months ended March 31, 2023, were 19 cents per share on a pretax basis, down from 88 cents per share in the first quarter of 2022. The decrease in FFO per unit is driven by the aforementioned factors, excluding fair value changes.

As of March 31, 2023, the company has available liquidity of $258.5-million, down from $285.7-million as of Dec. 31, 2022.

Highlights -- recurring income:

• Revenue and net operating income for the three months ended March 31, 2023, were $59.5-million and $25.3-million, respectively, an increase of $16.0-million and $7.8-million, respectively, from the comparative period. The increase is primarily attributable to higher earnings in the current quarter in Dream's asset management business due to an increase in fee earning assets under management and stronger performance at Arapahoe basin.
• On Feb. 17, 2023, GIC and Dream Industrial REIT through a joint venture (Dream Summit JV) acquired all the assets and assumed all of the liabilities of Summit Industrial Income REIT in a transaction valued at approximately $5.9-billion. Following the transaction, Dream manages one of the largest portfolios of industrial assets in Canada with 43.3 million square feet of quality properties, primarily located in the Greater Toronto Area, greater Golden Horseshoe area and greater Montreal area. In addition, Dream Industrial REIT's near-term development pipeline in Canada is over six million square feet (sf) (at a 100-per-cent project level), with anticipated completion within the next two years.
• Revenue for the three months ended March 31, 2023, includes $14.4-million in asset management fee revenue, compared with $9.9-million in the comparative period. The increase in the period is largely driven by the growth in the asset management base from the addition of Dream Residential REIT and Dream Summit JV to the company's asset management platform, in addition to development activity at Dream Industrial REIT. As of March 31, 2023, assets under management totalled $24-billion and fee earning assets under management totalled $17-billion, both up $6-billion from the year-end.
• In the first quarter of March 31, 2023, Dream's portfolio of stabilized properties generated revenue and net operating income of $40.2-million and $17.9-million, an increase of $9.3-million and $3.4-million, respectively, over the prior period, largely driven by the growth in Dream's multifamily portfolio in the GTA, national capital region and Western Canada. As of March 31, 2023, Dream's portfolio comprises 1,599 apartment units (at project level) and is 96.0 per cent occupied.
• In the three months ended March 31, 2023, Arapahoe basin had its strongest quarter ever, generating stand-alone FFO of $11.8-million, up from $9.1-million in 2022. The improved results are due to higher skier visits and stronger yields on the IKON pass.
• Stand-alone FFO generated by Dream's holdings in the Dream group of companies totalled $8.8-million this quarter, down slightly from $9.1-million in the comparative period due to a reduction in Dream Impact Trust's annual distribution from 40 cents to 16 cents per unit. FFO from Dream's holdings includes the company's proportionate share of FFO from its 36.8-per-cent interest in Dream Office REIT and 11.8-per-cent interest in Dream Residential REIT, along with distributions earned from Dream's 31.8-per-cent interest in Dream Impact Trust.
• Across the Dream group platform, which includes assets held through the company, Dream Impact Trust, Dream Impact Fund, Dream Office REIT and Dream Residential REIT, the company has over 8,000 apartment units and 13.7 million sf of gross leasable area (GLA) in stabilized rental, retail and commercial properties, in addition to its recreational properties. Over the next four years, an additional 2.6 million sf of residential GFA is expected to be added to Dream's recurring income portfolio (at project level) primarily relating to Canary Landing, Zibi and LeBreton Flats.

Highlights -- development:

• After two years of work and rigorous bidding competition, on March 1, 2023, Dream Impact Trust, Dream Impact Fund and Great Gulf Group acquired phase 1 of the highly sought-after Quayside development site in downtown Toronto, comprising 4.5 acres. Upon full buildout of the 12-acre site, Quayside will provide over 4,000 residential units, including more than 800 affordable housing units with an emphasis on family sized accommodations, 3.5 acres of public green space and Canada's largest residential mass timber structure. Dream has an indirect interest in the project through its 41-per-cent interest in Dream Impact Fund.
• In the three months ended March 31, 2023, Dream's development business generated $12.7-million in revenue and incurred negative net margin of $5.2-million, an increase in revenue of $3.0-million and a nominal decrease in net margin from the comparative period. The increase in revenue is primarily due to higher housing occupancies within Dream's Western Canada communities, partially offset by fewer lot sales.
• In the first quarter of 2023, Dream achieved 30 lot sales primarily across its Eastbrook, Brighton, High River and Vista Crossing communities in Regina, Saskatoon and Calgary. As of May 8, 2023, Dream has secured commitments for an additional 413 lots and 17 acres across its Western Canada communities that it expects to contribute to earnings later this year.
• Across the Dream group platform, Dream has approximately 4.1 million square feet of gross leasable area in retail or commercial properties and 25,900 condominium or purpose-built rental units (at the project level) in Dream's development pipeline. For further details on Dream's development pipeline, refer to the summary of Dream's assets and holdings section of the MD&A (management's discussion and analysis).

Select financial operating metrics for Dream's segments for the three months ended March 31, 2023, are summarized in the attached table.

About Dream Unlimited Corp.

Dream is a leading developer of exceptional office and residential assets in Toronto, owns stabilized income-generating assets in both Canada and the United States, and has an established and successful asset management business, inclusive of $24-billion of assets under management across four Toronto Stock Exchange-listed trusts, its private asset management business and numerous partnerships. Dream also develops land and residential assets in Western Canada. Dream expects to generate more recurring income in the future as its urban development properties are completed and held for the long term. Dream has a proven record for being innovative and for its ability to source, structure and execute on compelling investment opportunities.

We seek Safe Harbor.