DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Industrial REIT — Investor Presentation (March 2021)
76 slides from DREAM Unlimited Corp. Class A's investor presentation, March 2021
Slide 1: Dream Industrial REIT Investor Presentation March 2021
Dream Industrial REIT Investor Presentation March 2021
Slide 2: Presentation Overview
Presentation Overview Section 1 Section 2 Section 3 Section 4 Appendix | Appendix Il Appendix III Our Company & Strategy Investment Highlights Portfolio Overview Financial Highlights Track Record Key Assets in Major Markets Market Fundamentals
Slide 3: Our Company & Strategy
Our Company & Strategy
Slide 4: Company Snapshot
Dream Industrial REIT Company Snapshot Dream Industrial REIT DIR.UN Dream Industrial REIT (DIR) owns and operates a $3.2 billion! diversified portfolio of industrial real estate across Canada, U.S. and Europe, supported by a platform with a proven track record of long- term value creation 67%! Canad
Slide 5: Our Company
| Our Company ® Local on the ground teams + + Maintain conservative i i Drive organic NOI and NAV . * with a strong track record of Selective recycling program 9 : leverage, build up high ; rn . and redeployment of capital growth by executing . sourcing attractive industrial . . . . . quality unencu
Slide 6: Focused Portfolio Strategy
Dream Industrial REIT Focused Portfolio Strategy (+) Canada US. Target Markets Greater Toronto Major Markets in Midwestern Greater Montréal US. 1. Supply/demand 1. Strong e-commerce . imbalance demand for distribution Rationale 2. Strong rental growth assets 3. Mark-to-market potential 2. Steady con
Slide 7: Modern, Functional & Well located Assets
Dream Industrial REIT @ Modern, Functional & Well located Assets Vaughan, ON Waddinxveen, Netherlands Breda, Netherlands Dresden, Germany Helmond, Netherlands Heerenveen, Netherlands
Slide 8: Mortgages Unsecured Debt Equity
Mortgages Unsecured Debt Equity
Slide 9: Strong Commitment and Focus on ESG
Dream Industrial REIT Strong Commitment and Focus on ESG Environmental & Solar panels - 7 of Dream Industrial REIT’s buildings utilize solar panels covering 817,000 SF; equivalent to 19 acres of solar panels and 2.5 million KWH a Sustainable roofs- 6.8M SF of our portfolio is equipped with white roo
Slide 10: Actively Pursuing Sustainability Initiatives
Dream Industrial REIT Actively Pursuing Sustainability Initiatives 10555 Henri-Boura: Forward-looking Plans We will also be developing policies on: Capital investments New development and refurbishment We are pursuing investments in clean power 7140 40 Street SE, Calgary, AB Our priorities for data
Slide 11: Balanced Total Return Model
o Balanced Total Return Model Attractive distribution yield of 5.3%, ~100 bps higher than peer average® High quality, welkdiversified portfolio Conservative leverage, ample liquidity Robust fundamentals for industrial real estate Urban assets in markets with steep barriers to entry 1 - Distribution
Slide 12: Strong Outlook for FFO per Unit Growth
- | Strong Outlook for FFO per Unit Growth Balancing portfolio high-grading and FFO per unit growth Robust FFO growth expected in 2021 Canada Ea Healthy outlook for CP NOI growth for 2021 4 portfolio $250M+1 yO of acquisitions closed in 2020 + of | closed/contracted/exclusive acquisitions thus far i
Slide 13: Investment Highlights
Investment Highlights:
Slide 14: E-commerce Demand Continuing to Accelerate
G E-commerce Demand Continuing to Accelerate ® Rising e-commerce penetration... ...leading to increased demand for industrial space a a 574MSF i lI | I I! of COVID-19 has accelerated the e-commerce penetration in our Rarcrenittencrinenicel Si Bsiltematin gyrate , SN He Sa aes mated that an additiona
Slide 15: Urban Asset Portfolio Provides Strong Competitive Advantage
6 Dream Industrial REIT Urban Asset Portfolio Provides Strong Competitive Advantage Dem Location - Access to large population centres Last Mile Premium - Distributors pay premium rental rates to reduce delivery costs Evolving Supply Chain - E-commerce requires 3x logistics space than bricks and mort
Slide 16: Resilient Portfolio Outperformed During Recent Market Disruption
| Resilient Portfolio Outperformed During Recent Market Disruption ® Solid rent collections Strong leasing momentum 99% 99% 98% Over I ‘ of leasing completed since the beginning of 2020 Over of new leases on existing vacancies to take effect mostly in H1/2021 As of February 16, collected 99% of recu
Slide 17: Broad Tenant Base Provides Diversified Rental Income
o Broad Tenant Base Provides Diversified Rental Income @ Use of Space by Annualized Gross Rent Industry Exposure by Annualized Gross Rent ey Diversified Cold Storage, Other!, 19% Industries, 14% 3% Office, 7% Distribution nd Technical Services, 8% Ind Warehousing, 61% Residential, 10% Auto, 10% Port
Slide 18: Well-Diversified by Tenant Size
G Well-Diversified by Tenant Size ® Tenant Size Breakdown By Annualized Gross Rent Tenant Size Breakdown By # Of Tenants 100,000 + SF, 5 Ti 55 Tenants <15,000 SF. oy, 50,000 - 100,000 SF, eer 62 Tenants 100,000 + SF, 38% 15,000 - 50,000 SF, 179 Tenants 15,000 - 50,000 <15,000 SF, 815 Tenants 50.000
Slide 19: Top Tenants Consist of Renowned Global Companies
Dream Industrial REIT Top Tenants Consist of Renowned Global Companies % of Gross Rent 85.9% Other Tenants 1-As at February 164, 2021 Source: Bloomberg, company websites 29% NISSAN 4.7% CE = reevsconrmenas Premio SZ 1.8% OPWirogisics ——} Logi: 1.1% Nutrien 1.1% amazon ———T 10% EE 0.9% @ West Marine
Slide 20: Limited Near-Term Lease Maturities
6 Dream Industrial REIT @ Limited Near-Term Lease Maturities - 100% 3s oO S a9 ° 80% 2 3 60% 80.1% = eater 86.6% 90.1% 87.9% 3 2 S 40% o oO ior) o r= 20% — ie les . a a ——“h ae ~ , 9.9% % Say — | || — | 2021 2022 2023 2024 2025 mExpiries-Canada © Expiries-U.S. mExpiries-Europe | Committed GLA WALT o
Slide 21: Strong Balance Sheet Provides Stability and Opportunity
Strong Balance Sheet Provides Stability and Opportunity to Pursue Value-Enhancing2:) Growth 80% 4 B.4x — r 9.0x > at a = a 60% 4 L 6.0x wi me] 2 3 2 uo at 2 40% 4 | 3.0x % o 31.3% 31.5% a 3 za 23.7% 20% 0.0x 2016 2017 2018 2019 2020 Current ~20% leverage reduction since year-end 2016; in addition to
Slide 22: Investment Highlights
Investment Highlights:
Slide 23: Recent Leasing Highlights
| Recent Leasing Highlights During 2020 and to date in 2021, leased over 4.5 million square feet Achieved 18% spread on 1.6M SF of new leases, 10% spreads on 2.9M SF of renewals; annual contractual rent growth of ~3% Includes commitments on 600,000 SF of vacancies, taking occupancy to over 96%, excl
Slide 24: Active Asset Management Case Studies
Dream Industrial REIT @) Active Asset Management Case Studies 6701 Financial Drive, Mississauga, ON 3208 E Blue Lick Road, Louisville, KY —<—x —<—x ¥ Acquired class A distribution facility in the GTA in Q3-2020 for ¥ — Acquired vacant class A distribution facility in Louisville as part $23.9M, with
Slide 25: Healthy Outlook for Internal Growth
G Healthy Outlook for Internal Growth @ In-place and committed base rent (psf) m Estimated market rent (psf) $10.00 C$8.18 CS$7.48 $7.50 €5.11 €5.45 $5.00 uss4.01 USS$4.27 $2.50 $0.00 Canada U.S. Europe 49.4% +6.5% +6.7% 2.0% 2.5% 1.5% With contractual rent escalators that average ~2°% for the overa
Slide 26: Continued Portfolio Growth
o Continued Portfolio Growth Montreal, QC Cincinnati, OH $620 million of acquisitions closed in 2020, expanding portfolio by over 25% Thus far in 2021, $355M assets closed, under contract or in exclusivity across Canada, the U.S., and Europe; over 2 million square feet of high quality, well-located
Slide 27: Significant Land Bank Embedded in Existing Portfolio
| Significant Land Bank Embedded in Existing Portfolio ® (+) (li Canada US. 21 sites across the portfolio with ~67 acres of excess land with intensification potential; could add up to ~1.5 million square feet of additional GLA over the medium term Several redevelopment properties spanning 1 million
Slide 28: Activating Development and Intensification Pipeline
Dream Industrial REIT Activating Development and Intensification Pipeline 100 East Beaver Creek, Richmond Hill, GTA Range Road Project, Las Vegas 24.5-acre site located in North Las Vegas; site should support a ~460,000 square foot, 36’ foot clear height Class A distribution facility 110,000 square
Slide 29: Activating Development and Intensification Pipeline
| Activating Development and Intensification Pipeline Current Property Redevelopment Rendering 401 Marie Curie Boulevard, 527,000 square foot Class A distribution facility in the Greater Montréal Area with a clear height of 30 feet Situated on 38.4 acres with current site coverage of 31% Opportunity
Slide 30: Transitioning Towards Materially Lower Cost of Debt
| Transitioning Towards Materially Lower Cost of Debt c) 22017 4. 2020! Conceptual ° 9 Debt Mix? C 68% fF ( » North American Debt @ Evro-equivalent Debt @ Equity European platform will allow us to transform our debt composition by significantly lowering our cost of debt and improving ROE by ~15%* m,
Slide 31: Portfolio Overview
Portfolio Overview 8
Slide 32: Geographically Diverse Portfolio
Dream Industrial REIT @ Geographically Diverse Portfolio (+) Canada US. Europe Total dream @ industrial REIT 119 18 40 17 200 29 ue ant $2.2 billion $0.6 billion $0.5 billion $3.2 billion WALT 3.8 years 3.8 years 5.7 years 4.1 years 96.9% 92.6% 96.1% 96.6% Selective target markets with strong real e
Slide 33: Outperforming in our Markets
| Outperforming in our Markets ® DIR GLA 5.7M SF 3.9M SF 3.2M SF 7.3M SF 3.2M SF Occupancy 97.4% 97.9% 96.3% 92.6% 97.3% Market GLA 798M SF 303M SF 140M SF 3.0B SF 350M SF Occupancy 98.0% 97.9% 90.8% 91.8% 94.0% DIR has outperformed market occupancy levels in nearly all of its markets Long runway to
Slide 34: Calgary Industrial vs Calgary Market Occupancy
1 00.0% 95.0% 90.0% 85.0% 80.0% 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 2020 Calgary Industrial Calgary Market
Slide 35: Consistently High Occupancy
G Consistently High Occupancy © 100% 80% 60% Retention Ratio 40% 20% Well-diversified portfolio with a strong leasing team has resulted in healthy retention and consistently high occupancy
Slide 36: Focus on Urban & Distribution Assets
o Focus on Urban & Distribution Assets © Distribution Urban Logistics Light Industrial 52% of IP Value 36% of IP Value 12% IP Value Europe, $103M, 9% Europe, $30M, 7% US., $84M, 7% Canada, $380M, 93% 15.9M 81 9.1M 75 2.3M 21 Square feet Assets Square feet Assets Square feet Assets
Slide 37: Urban Assets Toronto
Dream Industrial REIT Urban Assets Toronto Significant portfolio concentration in close proximity to the largest population centre in Canada IP Value Acres Occupancy Assets GLA WALT
Slide 38: Urban Assets: Montréal
Dream Industrial REIT Urban Assets: Montréal Attractive mix of large distribution facilities and strategically located urban logistics properties in a land-constrained market IP Value Acres Occupancy Assets GLA WALT
Slide 39: Urban Assets: Calgary
Dream Industrial REIT Urban Assets: Calgary Assets located in close proximity to Calgary ene city centre and major lanky | transportation ; corridors IP Value Acres Occupancy Assets GLA WALT
Slide 40: Urban Assets
Dream Industrial REIT Urban Assets Assets located in strong industrial markets, within a 24-hour truck drive to over 50% of the North American population IP Value Acres Occupancy Assets GLA WALT
Slide 41: Urban Assets: Netherlands
Dream Industrial REIT Urban Assets: Netherlands Urban assets strategically located near dense population centres and well-suited for e-commerce tenants IP Value Acres Occupancy Assets GLA WALT
Slide 42: Financial Highlights
Financial Highlights
Slide 43: Conservative Financial Policy
Dream Industrial REIT Conservative Financial Policy Maintain overall leverage in the mid-to-high 30s Maintain investment grade credit rating and pursue unsecured financings Reduce secured debt to below 20% of IP Value Maintain unencumbered asset pool above 40% of IP Value Staggered and long debt mat
Slide 44: Q4-2020 Financial Highlights
Dream Industrial REIT @) Q4-2020 Financial Highlights Comparative properties NOI increased 2.3% and 1.5%, compared to 03-2020 and Q4-2019, respectively Leased over 1.0 million square feet of vacancies at a 20% spread to prior rents, and renewed 900,000 square feet at a 10% spread, since the end of Q
Slide 45: Strong Unencumbered Asset Pool Increases Balance Sheet Flexibility
| Strong Unencumbered Asset Pool Increases Balance Sheet Flexibility Unencumbered pool has increased over 10x since 2019 and is expected to represent nearly 60% of total investment properties value pro forma $355M of announced acquisitions and repayment of $131M of Canadian mortgages
Slide 46: Limited Cash Obligations Provides Financial Flexibility
| Limited Cash Obligations Provides Financial Flexibility Millions CAD $750 $500 $250 $o years 2.3 $455M WATM13 WAIR' $262M $286M $106M $28M 2021 2022 2023 2024 2025 2026+ Balance due at maturity * Available liquidity? Net debt-to-assets? Strong liquidity position and wellstaggered debt maturities p
Slide 47: Opportunity to Reduce Cost of Capital and Improve Balance Sheet Quality
G Opportunity to Reduce Cost of Capital and Further Improve Balance Sheet Quality © Cross Currency Hedging Euro-equivalent debt hedges foreign currency exposure on Euro assets oa. , Raised $450M of unsecured debt at an average fixed interest rate Capitalizing on Yield Spreads of only 0.65%. Reduced
Slide 48: Appendix I: Track Record
Appendix I: Track Record 8
Slide 49: Experienced Management Team
Dream Industrial REIT Experienced Management Team Mr. Brian Pauls is the Chief Executive Officer of Dream Industrial REIT. He is an accomplished real estate professional with 24 years of industry experience, and was responsible for developing over eight lion square feet of industrial properties in C
Slide 50: Local Operating Platforms
6 Dream Industrial REIT Local Operating Platforms (+) . Western Z Ontario Canada Québec U.S. Europe Number 2 3 1 1 2 of offices Operational functions Investment sourcing Internal Internal Internal Internal Internal aera) ee Internal Internal Internal Internal Internal management Property Internal In
Slide 51: DIR vs S&P/TSX REIT Index and Composite Index
Jan-1 6 Apr-1 6 Jul-1 6 DIR Oct-1 6 Jan-1 7 Apr-1 7 Jul-1 7 Oct-1 7 Jan-1 8 Apr-1 8 S&P/TSX REIT Index Jul-1 8 Oct-1 8 Jan-1 9 Apr-1 9 Jul-1 9 Oct-1 9 Jan-20 Apr-20 S&P/TSX Composite Index Jul-20 Oct-20 46.6% 56.1 % 1 61 .5%
Slide 52: Solid Track Record of Asset Management and Investments
G Solid Track Record of Asset Management and Investments @ Strong leasing track record Robust acquisition platform Strong leasing volume with leases representing over Over $1.5 billion in acquisitions in the past three 13% of total GLA signed each year with an years that have added over 18 million s
Slide 53: Portfolio Transformation - Improving asset quality
6 Dream Industrial REIT ® Portfolio Transformation - Improving asset quality 12K SF Avg. 21.6 ft. 25.0 ft. Avg. clear Avg. clear height height tenant size YE 2016 YE 2020 24% 67% 43% 72% ABR! from 6.7% Tears ABRt Go 5.75% Net ae tenants Stabilized income tenants Stabilized income >100K SF Cap rate m
Slide 54: Portfolio Transformation - Improving asset quality
Dream Industrial REIT @) Portfolio Transformation - Improving asset quality 9601 156thAvenue, Grand Prairie 131 Ilsley Avenue, Halifax 1602 Tricont Avenue, Whitby 401 Marie Cure Blvd, Montréal sar nc 3a 40 Thornhill Drive, Halifax Gateway International, Cincinnati : hed We recycled over ~$280 millio
Slide 55: Appendix II: Key Assets in Major Markets
Appendix II: «t= Key Assets in e Major Markets
Slide 56: Key Assets in the Greater Toronto Area
G Key Assets in the Greater Toronto Area $57M K SF 16 IP Value GIA Acres 18 feet 88% 10 Clear height Occupancy Num. of bi ngs One of seven clusters in DIR’s portfolio, located within 10 km from the Pearson International Airport. These clusters span ~65 acres with total IP value of over $200 million.
Slide 57: Key Assets in the Greater Toronto Area
| Key Assets in the Greater Toronto Area @ $37 207K SF $33M OOK SF 10 IP Value GLA IP Value GLA Acres 23 feet 100% 28 feet 100% 1 Clear height Occupancy Nui Clear heigh’ Occupancy Num. of bi gs Cluster of three mid-bay distribution facilities in the GTA located High quality, modern distribution asse
Slide 58: Key Assets in the Greater Toronto Area
G Key Assets in the Greater Toronto Area $62M 346K SF 8 IP Value GIA Acres 24 feet 100% r Clear Occupancy Num. of bi gs A cluster of two ~170K SF buildings in Vaughan located in close proximity to Highways 400 and 407. The assets have significant upside potential from marking rents to market. $55M 3
Slide 59: Recent acquisitions in Greater Toronto Area
G Recent acquisitions in Greater Toronto Area $37M 259K SF 19 IP Value GLA Acres 35 feet 98% 1 Clear heigh’ Occupancy Num. of bi gs High quality, recently renovated distribution facility located in the East GTA market in close proximity to Highways 401 and 412. Class A industrial facility located in
Slide 60: Key Assets in the Greater Montréal Area
| Key Assets in the Greater Montréal Area $109M 924K SF IP Value GIA feet 99% Clear ht Occupancy Located within ~5 km from the Montreal International Airport, and close to major transportation corridors. Primarily urban logistics assets with direct exposure along Highway +40 in Laval.
Slide 61: Key Assets in the Greater Montréal Area
| Key Assets in the Greater Montréal Area — Single-tenant distribution facility located within 10 km of downtown Montreal and in proximity to the Port of Montreal. Large lot provides ample trailer storage on site as well as building expansion capacity. IP Value GLA A feet 100% 1 Clear height Occupan
Slide 62: Key Assets in Calgary
G Key Assets in Calgary $104M 597K SF 38 IP Value GLA Acres 12 24 feet 96% Clear heigh’ Occupancy Num. of bi ngs 12-building cluster located in North East Calgary, ~10 km from the Calgary International Airport. 16-building cluster located in South East Calgary, ~10 km from downtown Calgary.
Slide 63: Key Assets in the U.S.
G Key Assets in the U.S. IP Value GLA Acres 32 feet 100% 1 Clear heigh’ Occupancy Num. of buildings Singletenant large-bay modern distribution facility in Nashville with an additional 14 acres of excess land and ability to expand up to 950,000 SF of additional space. 30 feet 100% Clear heig| Occupan
Slide 64: Key Assets in the U.S.
G Key Assets in the U.S. IP Value GLA Acres 32 feet 100% 1 Clear heigh’ Occupancy Num. of buildings Large-bay distribution facility in Memphis with close proximity to the Fed Ex Global hub. 32 feet 100% Clear heig| Occupancy Distribution and warehousing facility in Memphis with excess trailer storag
Slide 65: Key Assets in the U.S.
G Key Assets in the U.S. IP Value GLA Acres 22 feet 100% r Clear heigh’ Occupancy Num. of buildings Mid-small bay warehouse facility adjacent to the Cincinnati International Airport and future Amazon Cargo Hub. 32 feet 100% Clear heig| Occupancy Num. of & hicings Modern distribution and warehouse fa
Slide 66: Key Assets in the Netherlands
| Key Assets in the Netherlands IP Value GLA Acres 34 ft 100% 1 Clear height Occupancy Num. of buildings Modern, cold storage distribution warehouse long-term leased to a strong tenant in the fruit and vegetable sector. 32 ft 100% Clear hei: Occupancy Distribution centre for the fashion industry, se
Slide 67: Key Assets in the Netherlands
| Key Assets in the Netherlands “mee fh ih, Modern single-tenant logistics building that was renovated in 2018. The building is well-suited to logistics users. The property is leased to a third-party logistics provider involved in ecommerce fulfillment. 100% 1 Occupancy Num. of buildings Newly built
Slide 68: Recent acquisitions in Germany
| Recent acquisitions in Germany Core+ logistics asset with in-place rents 24% below market and excess land of more than 500,000 square feet. 34 ft 93% Clear height Occupancy Core+ logistics asset located within 30 minutes from the city centre; in-place rents 15% below market and opportunity to add
Slide 69: Appendix III: Market Fundamentals
Appendix III: 2 Market Fundamentals
Slide 70: Strong outlook for industrial fundamentals
✓ Strong outlook for industrial fundamentals has led to increasing pace of construction which has been outstripped by an even stronger pace of absorption ✓ Due to the strong absorption, availability rates have remained relatively low ✓ Rental rates have continued to increase and has grown at an aver
Slide 71: Fundamentals in our Target Canadian Markets
G Fundamentals in our Target Canadian Markets ® Strong value creation and opportunities for future cash flow and NAV growth
Slide 72: U.S. industrial market demand and construction
✓ Strong demand from e-commerce users has led to healthy construction activity across the U.S. industrial market as well as strong absorption ✓ Availability rates are relatively low with rental rates continuing to grow at a steady pace
Slide 73: U.S. core logistics hub markets
27 3 2.9 4.9% 6.2% $4.1 1 3.0% 1 90 1 .3 4.5% 6.8% $5.59 4.0% 267 3.3 5.0% 8.6% $3.25 4.5% 1 22 0.6 7 .5% 1 1 .3% $7 .24 2.7 % 227 1 .2 5.1 % 5.9% $7 .05 0.7 % 1 ,230 9.1 5.7 % 9.6% $5.28 1 .9% 294 0.9 5.6% 6.7 % $4.49 2.8% 1 37 1 .5 5.3% 6.7 % $4.02 1 .2% 306 1 .2 5.9% 7 .1 % $4.41 2.1 % ✓ Markets
Slide 74: Fundamentals remain strong with low availability rates
✓ Fundamentals remain strong with strong-take-up leading to low availability rates ✓ Development pipeline remains manageable across our target markets with a significant portion of new pre-let supply
Slide 75: Thank you
Thank you
Slide 76: Forward Looking Information
Forward Looking Information This investor presentation may contain forwardlooking information within the meaning of applicable securities legislation, including statements regarding the Trust’s objectives and strategies to achieve those objectives; the Trust's expectations relating to the benefits t
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