Mr. Michael Cooper reports

DREAM UNLIMITED CORP. REPORTS THIRD QUARTER RESULTS

Dream Unlimited Corp. has released its financial results for the three and nine months ended Sept. 30, 2023.

"We continued to see the positive impact of our efforts to improve the safety and value of our business," said Michael Cooper, chief responsible officer. "Our Western Canada development business is performing well in the current period and generating commitments for 2024 and 2025. We believe that this division will continue to perform well, but will also increase its activity and profits over the next few years. Our multifamily rental portfolio continues to grow with residents moving into Maple House at Canary Landing and Aalto II at Zibi. We expect to commence occupancy of another property in Zibi and Saskatoon before the year is out. Over the next three years, we expect to add over 2,300 units to our portfolio, realizing on the years of work creating a purpose-built rental business. The division will add to development profits and recurring income. Together with the strong performance of our asset management business and our other stabilized assets, including Arapahoe Basin, the company is well positioned for near- and long-term growth."

For the first time, Dream has published a supplemental information package on its website concurrent with the release of its third quarter results. The package is aligned with its recent investor day presentation, provides shareholders a clearer view of its stand-alone results and provides information on how it evaluates its various divisions.

Highlights: recurring income:

• Revenue and net operating income for the three months ended Sept. 30, 2023, were $43.8-million and $13.0-million, respectively, up from $34.4-million and $9.9-million in 2022. The increases are primarily attributable to higher occupancy across its portfolio and growth in its fee-earning asset base. Similarly, revenue and net operating income were $30.1-million and $9.9-million higher than the comparative nine-month period. It continues to focus on increasing its recurring income through expanding its asset management business and completing purpose-built rentals within its development pipeline.
• Revenue for the three and nine months ended Sept. 30, 2023, includes $15.9-million and $47.3-million, respectively, in asset management fee revenue, compared with $10.1-million and $36.2-million in the comparative period. Earnings were driven by the more highly valued recurring income base fees in addition to higher development fees on its industrial portfolio. As of Sept. 30, 2023, assets under management totalled $24-billion, an increase of 38 per cent over year-end, and fee-earning assets under management totalled $17-billion.
• It continues to execute on its robust industrial development pipeline through Dream Industrial REIT and the private Dream Summit joint venture. As of Sept. 30, 2023, it has a total of 2.8 million square feet of development projects that are either currently under way or in planning stages with an expected yield on cost of approximately 6.4 per cent upon completion.
• In the nine months ended Sept. 30, 2023, its portfolio of stabilized properties generated revenue and net operating income of $93.9-million and $34.3-million, an increase of $14.2-million and $1.9-million, respectively, over the prior period, largely driven by the growth in its multifamily portfolio in the Greater Toronto Area, national capital region and Western Canada. As of Sept. 30, 2023, its portfolio comprises 1,800 apartment units (at project level) and is 97.6 per cent occupied. It expects to add an additional 1,245 units to its portfolio in the rest of the year that it expects to contribute to higher revenue and net operating income in the future.
• On Oct. 29, 2023, Arapahoe Basin opened for the 2023/2024 season, making it one of the first hills to open in North America this season. As of today, its season passes are 83 per cent sold out.
• 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, it has a growing portfolio of 8,100 apartment units and 13.8 million square feet of gross leasable area in stabilized rental, retail and commercial properties, in addition to its recreational properties. Over the next four years, an additional 3,244 apartment units comprising 2.7 million square feet of residential gross floor area are expected to be added to its recurring income portfolio (at project level) primarily relating to Canary Landing, Zibi, LeBreton Flats and Western Canada.

Highlights: development:

• In the three months ended Sept. 30, 2023, its development business generated $88.7-million in revenue and $16.2-million in net margin, an increase of $68.0-million and $18.0-million, respectively, from the comparative period, primarily driven by the timing of sales in various communities in Western Canada.
• In the third quarter of 2023, it achieved 400 lot sales and 28 housing occupancies primarily across its Alpine Park, Eastbrook, Maple, Elan and Vista Crossing communities in Regina, Edmonton and Calgary. As of Nov. 14, 2023, it has secured commitments for an additional 66 lots and five acres across its Western Canada communities that it expects to contribute to earnings in the fourth quarter, along with 231 lots and 71 acres already secured for 2024 and 2025.
• This quarter, it commenced occupancies at Brightwater I, its first completed condominium building at its 72-acre waterfront community in Mississauga's Port Credit area. Brightwater II is expected to commence residential occupancy in early 2024 along with first commercial tenant possession of the combined 98,000 square feet of commercial/retail GLA expected by the end of the year. Dream's 31-per-cent interest in the Brightwater development is split 25 per cent/75 per cent between the company and Dream Impact Trust.
• In September, it welcomed the first residents at Maple House at Canary Landing, its 770-unit purpose-built rental building adjacent to its Canary and Distillery District neighbourhoods in Toronto. Maple House includes 231 units designated as affordable housing and offers nearly 40,000 square feet in amenities, including over 17,000 square feet of outdoor terraces, a state-of-art fitness centre and a co-working space. In addition to Maple House, it has another 1,093 rental units currently under construction at Canary Landing, inclusive of an additional 257 affordable units.
• It also welcomed its first residents at Aalto II at Zibi this quarter, a 148-unit purpose-built rental building in Gatineau, Que., and expects to commence occupancies at Common at Zibi, a 207-unit purpose-built rental inclusive of 48 co-living suites, by the end of the year.

Consolidated results overview

A summary of its consolidated results for the three and nine months ended Sept. 30, 2023, is included in the attached table.

Conference call

Senior management will host a conference call to discuss the financial results on Wednesday, Nov. 15, 2023, at 2 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's website, 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 results. The financial statements and MD&A for the company are available at the Dream website and on SEDAR+.

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. It also develops land, residential and income-generating 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. A comprehensive overview of its holdings is included in the summary of Dream's assets and holdings section of its management's discussion and analysis.

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