DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Industrial REIT — Investor Presentation (June 2020)
43 slides from DREAM Unlimited Corp. Class A's investor presentation, June 2020
Slide 1: Investor Presentation June 2020
dream @ industrial REIT Investor Presentation June 2020
Slide 2: Key portfolio statistics
secured credit facility in June 2020 96% Committed Occupancy 28% Net debt-+to- assets Properties 4.1 yrs WALT $1.1B Unencumbered Assets?
Slide 3: June 2020 Business Update
June 2020 Business Update Operations update Limited leasing risk Significant ion capacity Over 95% of gross rents collected for April and May, after adjusting for deferrals ~90% of June gross rents collected to date, after adjusting for deferrals; higher than collection levels on the same business d
Slide 4: Company Overview
Slide 5: Geographically diverse portfolio
e | Geographically diverse portfolio* ay a dream @ Py 2 2 # Properties IP Value WALT Committed Occupancy “As at March 81, 2020 5
Slide 6: Global acquisition platform and strategy
Global Acqui n Platform Local on-the-ground teams with a strong track record of sourcing attractive industrial opportunities across Canada, the U.S. and Europe Value Enhancing Growth Asset Management Drive organic NOI a NAV growth by executing creative asset management strategies initiating, and exe
Slide 7: Local Platforms + Strategic Relationships
Local Platforms + Strategic Relationships dream — Dream provides a dedicated local acquisition and asset management team along Dream provides expertise on acquisitions, strategic transactions, capital and portfolio allocation, capital markets as well as access to its PAULS Corp. provides DIR a local
Slide 8: Portfolio Highlights
Slide 9: Distribution and Light industrial portfolio
a Distribution Light industrial 43% of total IP Value 18% of total IP Value Europe, Europe, $105M, us. % $78M, 7% $37M, 7% \ *As at March 31, 2020
Slide 10: Tenant base highly diversified across multiple industries
Tenant base highly diversified across multiple industries Energy, 1% Agriculture, 1% Recreational services, 2% Healthcare, 2% Miscellaneous, 4% Diversified industries, 14% Other services, 4% Construction (non- residential), 5% Residential, 12% > Food and beverage, 11% Technical services, 7% Paper, P
Slide 11: Attractive mix of large and small tenants
Attractive mix of large and small tenants Tenants occupying <10K sf v Diversified tenant base with nearly 1,200 tenants 728 Number of tenants 15% of annual base rent v Top ten tenants represent ~16% of Gross Rental Revenue and include high-quality investment-grade covenants v Predictable income with
Slide 12: Consistently high occupancy
Consistently high occupancy mmm Committed Occupancy mmm Committed Occupancy - Western Canada Retention Ratio 100% 100% 90% 80% 80% i 80% > 2 2 & 2 3 & é © 60% 4 7 y P A 60% z 96% 96% 97% G 95% | 96% 97% 95% 97% | 95% 96% 949% 96% 95% % 2 z s z £ E & 6 ° 40% 40% 20% 20% 2012 2013 2014 2015 2016 2017
Slide 13: Limited near-term lease maturities
Limited near-term lease maturities* MExpiries - Canada MExpiries - U.S. MExpiries - Europe Committed GLA 100% 80% 60% 97% 90% fo 40% 20% 1% % ; oo on —- Remainder of 2020 2021 Percentage of overall portfolio GLA WALT of 4.1 years and with staggered lease expiries provides cash flow stability; ~13% o
Slide 14: Healthy outlook for internal growth
Healthy outlook for internal growth mIn-place and committed base rent (psf) mEstimated market rent (psf) 10.00 $7.98 7.50 5.00 2.50 0.00 Canada U.S. Europe ES = With contractual rent escalators that average ~2% for the overall portfolio and in-place rents well below current market rents, DIR is well
Slide 15: Financial highlights
Slide 16: Strong balance sheet provides stability and opportunity
Strong balance sheet provides stability and opportunity to pursue value-enhancing growth mm Net Debt To Assets -®Net Debt To Adjusted EBITDAFV 80% + 8.4x 8.4x ; 9.0x e Oo 7.8x > < a ° e 8 60% + + 6.0x 3 2 53.8% 52.5% 3 9 . 3 2 5 8 43.5% & fa) 2 Byo% | 3.0% % a 28.2% 2 23.7% || 20% == 0.0x 2015 2016
Slide 17: Strong unencumbered asset pool increases balance sheet flexibility
Strong unencumbered asset pool increases balance sheet flexibility $1.58 v $0.38 $1.1B $1.0B v $0.3B v $0.5B $0.1B $0.08 | YE 2019 2020 Acquisitions (Q1-2020 Prepaying debt Converting credit facility to Current unencumbered IFRS Value) unsecured asset pool $0.5B Unencumbered asset pool totals $1.1 b
Slide 18: Well staggered debt maturity profile
@ Well staggered debt maturity profile $750 $500 $ 66M Cash-on-hand? $250 22M S16M $340 $17™M $19M Credit facility availability* $113M $98M 50 (ns 17 uM Remainder of 2020 2021 2022 2023 2024+ mBalance due at maturity ™Principal repayments [ Ample liquidity available to address upcoming debt maturiti
Slide 19: Transitioning towards optimal capital structure
Transitioning towards optimal capital structure Conceptual 22017 12020 9220 9° Debt Mix! 3.6% Weighted Avg. Interest Rate 3.8% ~2% Weighted Avg. Interest Rate Weighted Avg. Interest Rate aa @ North American Debt @ European Debt @ Equity Expansion into Europe will allow us transform our debt composit
Slide 20: Portfolio Strategy
Slide 21: Investment Strategy to Increase the Overall Quality of our Portfolio
Investment Strategy to Increase the Overall Quality of our Portfolio High Quality Well Located Attractive Economics Focused on allocating capital towards investments that improve the overall quality of our portfolio Industrial properties that are attractive to a wide variety of tenants with various
Slide 22: Asset Management
Asset Management Disciplined Investment Strategy to Grow Free Cash Flow and Net Asset Value Experienced Platforms Asset Recycling IRR Model Disciplined Capital Allocation Combined over 50 years of experience acquiring and managing industrial real estate between Dream and PAULS Corp Identify select o
Slide 23: Portfolio Transformation - Scale
3.0 25 2.0 IP Value - Billions CAD 15 1.0 Portfolio Transformation - Scale DIR announces European with $327M of acquisitions in Netherlands and Germany. Continues to ‘add scale in Ontario and Quebec with $157M of acquisitions DiR adds scale in the U.S. and target ‘Canadian markets with $243M of ‘acq
Slide 24: Portfolio Transformation - Quality
Portfolio Transformation - Quality 9601 156' Avenue, Grand Prairie 131 Ilsley Avenue, Halifax 1602 Tricont Avenue, Whitby 1250-1280 Humber Place, Ottawa 439 Sovereign Road, London 40 Thornhill Drive, Halifax 8860 Smith’s Mill Road, Columbus Dutch Portfolio, Netherlands We recycled over ~$280 million
Slide 25: Portfolio Transformation - Quality
Portfolio Transformation - Quality 12K sf 21.6 ft. 21K sf 24.5 ft. Avg. Avg. clear tenant size height Avg. Avg. clear tenant size height YE 2016 Q1 2020 67% Net rental income 71% Net rental income margin margin* We recycled over ~$280 million of assets in the past 24 months with proceeds being deplo
Slide 26: Portfolio Transformation - Geography
Portfolio Transformation - Geography % of total IP Value Q2 2017 |} 912020 ‘| Target Portfolio Mix’ Ontario/GTA 28% 33% 30%-40% Quebec 18% 15% 10%-15% U.S. 5 21% 15%-25% Europe 5 10% 20%-30% Western Canada 39% 21% ~10% Eastern Canada 15% 2 : We have significant scope and reach to execute on the best
Slide 27: Initiating Developments
Initiating Developments dream @ industrial REIT Experienced Partners Portfolio “High-grading” Attractive Markets Initial Development dream — | PAULS Dream and PAULS Corp have an extensive track record in commercial development, with PAULS Corp having developed over 16 million square feet of real est
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Slide 29: Relative Logistics Market Size - Europe Versus North America
Relative Logistics Market Size - Europe Versus North America Population Density (People Per km?)! Comparison - Europe Versus U.S. a Europe ) [ United States | 237 ‘ 3.4 Billion 9.8 Billion 36 == Square Feet Square Feet Canada United States Germany Netherlands 4.3 sf Per Capita 30 sf Per Capita Highe
Slide 30: Why Invest in Europe?
@ Why Invest in Europe? Low supply of quality light industrial and logistics product as well as increasing user demands are expected to support healthy rental rate growth Lower levels of e-commerce penetration compared to U.S. and Canada are expected to result in strong relative demand for logistics
Slide 31: Our Unique Advantages in Europe
Our Unique Advantages in Europe °& Dream has been active in Europe since 1998 In 2011, Dream Global REIT was created and quickly amassed a high quality portfolio of European office + industrial assets The sale of Dream Global REIT in December 2019 for $6.2 billion was a successful outcome for unitho
Slide 32: Initial European Portfolio
Initial European Portfolio Netherlands Portfolio (34 Assets) German Portfolio (3 Assets)* High quality portfolio with opportunities to drive future cash flow growth through lease-up and rental rate growth on lease roll-over * Pro forma two assets that are expected to close in 03-2020 32
Slide 33: Initial European Portfolio
Initial European Portfolio Netherlands (34 Assets) Emden Saige is y ‘ cron en et - Celle , sing Lbeuwarden! A 8 Berlin aig B36. Olden bere Zwvischenahn’ Hanover Wolfsburg apenburg } Vorack bs a ° Frankfurt wi Assen ps C2 S = Potsdam ander Odert Den Helde: as ae Brunswick, ~=Magdeburg ; a Song Bielef
Slide 34: Debt + Hedging Strategy - Leveraging European Platform
Debt + Hedging Strategy - Leveraging European Platform Cross Currency Hedging Capitalizing on Yield Spreads Conservative Leverage Unencumbered Asset Pool + Credit Rating Vusys Over the medium term increase Euro denominated debt to approximate the IP value of our European properties, while reducing d
Slide 35: Environmental, Social and Governance
Slide 36: ESG highlights
7 239 MW Energy efficiency Energy efficiency Tenant Engagement Community Engagement National sponsor 449 gifts ~1,300+ shoeboxes ~$11,000 ~$700,000 Tenant Focused – Employee Development ~$302,000 Employee Well Being Peer Recognition 75% 25% *Social highlights are based on all Dream entities combined
Slide 37: Experienced Management Team and Access to Strong Platforms
Experienced Management Team and Access to Strong Platforms ald < Brian Pauls Lenis Quan Alexander Sannikov Chief Executive Chief Financial Chief Operati Officer Officer 23 years 20 years 15 years Experience Experience Experience | & i ~80 employees dedicated to acquisitions, portfolio management, ac
Slide 38: Appendices
Slide 39: 2019 Highlights
HHO & 2019 Highlights Solid organic growth with 4. 1% comparative properties NOI growth in 2019 Strong NAV per unit growth of $ 1.22 in 2019, implying a 12% increase year-over-year Continued to add scale in target markets with over $370 million of acquisitions in 2019 Continued portfolio high-gradin
Slide 40: Recent Canadian Acquisitions
@ Recent Canadian Acquisitions* ntario and Quebec 40 * Includes acquisitions in Canada that closed in Q4-2019 and Q1-2020
Slide 41: Rising E-commerce penetration to drive demand for industrial
Rising E-commerce penetration to drive demand for industrial Population growth in our target markets... .-. Supporting increased e-commerce penetration 40% 30% 16.0% 14.7% 30% 14.1% 12.0% 12.1% 20% 16% 8.9% 11% 8.0% 47.9: 10% 8% % 5% 0% 4.0% 2010 2015 2020 2025 2030 2035, 2017 2018 2019 2020 2021 20
Slide 42: Thank you
thank you.
Slide 43: Forward Looking Information
Forward Looking Information This investor presentation may contain forwardlooking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward- looking terminology such as “outlook”, “objective”, “may”, “will”, “ex
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