DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Global REIT — Investor Presentation (October 2014)
38 slides from DREAM Unlimited Corp. Class A's investor presentation, October 2014
Slide 1: Investor Presentation October 2014
Investor Presentation October201 4
Slide 2: At-a-Glance
At-a-Glance Dream Global REIT is an owner and operator of 15.9 million square feet of office and mixed use space in Hamburg Germany and provides a unique Berlin opportunity to gain exposure to the German real estate market. 15.9 M Cologne Square Feet 277 Properties Frankfurt $2.7 B Total Assets 8.8%
Slide 3: Why Dream Global
Why Dream Global Unique opportunity to gain exposure to Germany, one of the best real estate market in Europe German real estate fundamentals are expected to remain strong and outperform the rest of Europe. Local economy is diversified with low unemployment of 5.0% Pipeline of good acquisition o
Slide 4: Why Dream Global
Why Dream Global Significant improvement in asset quality and tenant diversification have lead to stable, high quality cash flows Gross rental income (GRI) from Deutsche Post, which was 85% at the time of IPO, is now only 34%. We’ve also increased GRI contribution in the “Big 7” German office mark
Slide 5: Dream Global REIT is being recognized for establishing an excellent platform
Dream Global REIT is being recognized for establishing an excellent platform We recently entered into a strategic joint venture partnership with Public Official Benefits Association (POBA), a South Korean pension fund to sell a 50% interest in seven of our properties for €221 million. This transacti
Slide 6: Joint Venture with POBA – Partnership Rationale & Key Terms
Joint Venture with POBA – Partnership Rationale & Key Terms Long-term partnership Long-term commitment – at least 5 years with a target term of 10 years Joint investments in Europe with investment criteria similar to what we acquired over the past 18 months No significant change in the investmen
Slide 7: Strong Fundamentals of the German Market
Strong Fundamentals of the German Market Low interest rate environment Mortgage rates in Germany are among the lowest in recent history, as increased competition in the German lending market has put pressure on credit spreads. The trend is expected to continue. For example, we recently received
Slide 8: Declining Unemployment Rate
Declining Unemployment Rate German Unemployment Rate German Employment Index 11 42,500 10 42,000 9 41,500 Employment Figures (in 000s) Unemployment rate (in %) 8 41,000 7 August 201 4 40,500 5.0% 6 40,000 5 39,500 4 39,000 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Source: ILO labour ma
Slide 9: 3 Years of Improving Metrics
3 Years of Improving Metrics IPO (August 2011) June 30, 2014 Market Capitalization $520 million $1.1 Billion Index Inclusion None S&P/TSX Composite, Capped REIT Index IFRS Asset Value $1.1 Billion $2.6 Billion % of GRI from Deutsche Post 85% 34% % of GRI in “Big 7 ” Office Markets 63% Yield 8.0% 8.4
Slide 10: Acquisition Properties produce 60% of our NOI
Acquisition Properties produce 60% of our NOI, are 98% occupied and financed at an average interest rate of 2.5% for a term of 6.5 years 10
Slide 11: Recent Accretive Acquisitions
Recent Accretive Acquisitions My Falkenried, Hamburg Purchase Price: C$ 92 million Cap rate: 6.2% Interest rate: 2.33% Debt term: 7-year fixed GLA: 220,000 sf Occupancy: 100% WALT: 4.0 years Modern office property with over 40 tenants and a significant retail component located in a very desirable ur
Slide 12: Strong Tenant Relationships and Increased Diversification of Tenant Base
Strong Tenant Relationships and Increased Diversification of Tenant Base Total Credit Top 1 0 Tenants Industry Annualized Rating GRI (%) 1 00 Postal Services / 1 33.0 BBB+/Stable Logistics 80 2 Prof. Services / Legal 2.9 n/a 60 3 Insurance 2.8 AA-/Stable1 Energy/Technical 40 4 2.2 n/a Equipment Serv
Slide 13: Proactive Leasing Strategy to Maximize Value of Our Assets
Proactive Leasing Strategy to Maximize Value of Our Assets Leasing activity (sf) Historical Leasing and Occupancy Data Occupancy (%) 300,000 89% 88% 250,000 87 % 86% 200,000 85% 150,000 84% 83% 100,000 82% 81 % 50,000 80% 0 7 9% Q3 201 2 Q4 201 2 Q1 201 3 Q2 201 3 Q3 201 3 Q4 201 3 Q1 201 4 Q2 201 4
Slide 14: Financing expertise - strong, long-term lender relationships
Financing expertise - we have built strong, long-term lender relationships with a diversified pool of financial institutions 14
Slide 15: Debt Maturity Schedule
Debt Maturity Schedule Mortgage Maturities Convertible Debentures (5.5%; Conv. Price: $13.00) Debt Maturities (in $ millions) 500 400 300 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 As at August 31, 2014 In 2016, the term loan credit facility put in place at the time of the IPO comes
Slide 16: Key Performance Indicators
Key Performance Indicators Key indicators Quarter ended June 30, 201 4 OPERATING RESULTS ($‘000, except per unit amounts) Investment property revenue $ 67,51 4 Net rental income 47,07 9 Basic FFO/unit 0.24 Basic AFFO/unit 0.22 Distribution/unit 0.20 FINANCING Weighted average interest rate 3.33% Int
Slide 17: Year-over-year Improvement in Key Metrics
Year-over-year Improvement in Key Metrics Key indicators Six months ended Six months ended Change June 30, 201 4 June 30, 201 3 OPERATING RESULTS ($‘000) Net rental income (NOI) $ 92,87 9 $ 63,502 46% FFO/unit $0.46 $0.42 1 0% AFFO/unit $0.43 $0.39 1 0% AFFO Payout Ratio 93% 1 03% 1 0% Occupancy 87.
Slide 18: Dream Global REIT is part of the Dream Group of Companies
Dream Global REIT is part of the Dream Group of Companies Dream Unlimited Corp. $1 4.7 Billion of Assets Under Management Dream Office Dream Global Dream Industrial Dream Hard Asset Housing & Urban Land Renewable REIT REIT REIT Alternatives Trust Development Development Power Largest Office REIT in
Slide 19: Our Strong & Diverse Management Platform
Our Strong & Diverse Management Platform is Experienced, Diversified and Focused on Execution Jane Gavan Rene Gulliver Chief Executive Officer Chief Financial Officer Industry Experience: 26 yrs Industry Experience: 35 yrs Acquisitions Portfolio Management Chief Investment Strategist Luxembourg Asse
Slide 20: Our senior leadership team in Europe understands local market conditions
Our senior leadership team in Europe understands local market conditions Michael Schwöbel, Head of Leasing, Frankfurt Michael is the Managing Director, Europe and head of leasing of Dream Global Advisors Germany GmbH, Dream Global REIT’s German asset management platform. Michael oversees the advisor
Slide 21: Our on-the-ground Local Team provides Significant Depth and Expertise
Our “on-the-ground” Local Team provides Significant Depth and Expertise across our offices in Europe with a Proven Track Record of Delivering Results Dream Global REIT’s properties are locally managed by a team of 40 professionals in six offices across Europe Operating history with the properties
Slide 22: Appendix: Case Study – Value Creation
Appendix: Case Study – Value Creation
Slide 23: Value Creation – Darmstadt
Value Creation – Darmstadt 23
Slide 24: Value Creation – Darmstadt
Value Creation – Darmstadt Darmstadt was one of the largest buildings in the initial portfolio. Subsequent to the DP termination, we leased a portion of the space and worked quickly to transform the interior and exterior of the building to enhance the appeal of the asset to prospective tenants. In Q
Slide 25: Value Creation – Darmstadt Entrance
Value Creation – Darmstadt Entrance - Before Entrance - After 25
Slide 26: Value Creation – Darmstadt Interior
Value Creation – Darmstadt Interior – After (Pitney Bowes Space) Interior – Before (DP Space) 26
Slide 27: Value Creation – Darmstadt Interior
Value Creation – Darmstadt Interior - Before Interior - After 27
Slide 28: Value Creation – Bremen
Value Creation – Bremen 28
Slide 29: Value Creation – Bremen
Value Creation – Bremen Another example of a large and successful repositioning project is our 170,000 sf office property in Bremen. After Deutsche Post terminated space in 2012, the occupancy dropped to 70%. Our leasing team aggressively marketed the space, upgrading both the front entrance and the
Slide 30: Value Creation – Bremen Lobby
Value Creation – Bremen Lobby - Before Lobby - After 30
Slide 31: Value Creation – Hildesheim
Value Creation – Hildesheim This property in Hildesheim consists of two separate plots. One plot, comprising approximately 4,900 m2 is dominated by a large office building. The building, which was affected by Deutsche Post’s 2012 termination, has been fully leased to the State of Lower Saxony for 15
Slide 32: Value Creation – Mannheim
Value Creation – Mannheim This property in Mannheim is a great example of a redevelopment opportunity in our current portfolio. The 21,100 m2 property is centrally located next to the main train station in Mannheim and rezoning for a mixed-use redevelopment of office, hotel and residential space is
Slide 33: Value Creation – Humboldt Haus, Hamburg
Value Creation – Humboldt Haus, Hamburg We acquired Humboldt Haus in the fall of 2012. At the time of the acquisition, the property was 90% leased. A vacant unit in the property had not been occupied for 6 years when we took over this asset. With our creative approach to leasing and staging the unit
Slide 34: Value Creation – Humboldt Haus, Hamburg
Value Creation – Humboldt Haus, Hamburg 99% occupied after effective staging 34
Slide 35: Value Creation – Feldmühleplatz
Value creation – Feldmühleplatz Feldmühleplatz in Düsseldorf was acquired in November 2013. It is a fully leased modern office complex located minutes away from the central business district. The area around the property is the absolute top residential location in the city with condominium prices as
Slide 36: Value Creation – Feldmühleplatz
Value creation - Feldmühleplatz will be provided by Barbara 36 36
Slide 37: Forward looking information
This slide presentation contains forward looking information within the meaning of applicable securities legislation. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Global REIT's control, that coul
Slide 38: Jane Gavan CEO [email protected]
Jane Gavan Rene Gulliver Alexander Sannikov Gerwin Holland CEO CFO Portfolio Manager Chief Investment Strategist (416) 365-6572 (416) 365-5447 (416) 365-4106 +352-2736-8933 [email protected] [email protected] [email protected] [email protected]
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