DREAM Unlimited Corp. Class A · TSX:DRM
DREAM Unlimited Corp. Class A — Dream Industrial REIT — Investor Presentation (May 2022)
40 slides from DREAM Unlimited Corp. Class A's investor presentation, May 2022
Slide 1: Dream Industrial REIT Investor Presentation May 2022
Update Dream Industrial REIT Investor Presentation May 2022
Slide 2: Presentation Overview
2 401 Marie-Curie Boulevard, Montréal, QC, Canada Presentation Overview Section 1 Our Company & Strategy Section 2 Organic Growth and Value-Add Section 3 Financial Highlights Section 4 Portfolio Highlights Section 5 ESG Highlights
Slide 3: Our Company & Strategy
Our Company & Strategy Exportweg 2–20, Waddinxveen, Netherlands
Slide 4: Company Snapshot
Dream Industrial REIT 4 Company Snapshot Dream Industrial REIT TSX: DIR.UN Dream Industrial REIT (DIR) owns, operates and manages a $6 billion diversified portfolio of well- Guldenweg 6, Varsseveld, Netherlands located industrial real estate across Canada and Europe, supported by a platform with a p
Slide 5: Our Strategy
Dream Industrial REIT 5 Our Strategy Conservative Global Acquisition Development and Asset Management Financial Platform Intensification Policy Local on the ground teams Maintain conservative Building prime product in Drive organic NOI growth with a strong track record leverage, build up high core m
Slide 6: Multiple Drivers of Value-Creation
Dream Industrial REIT 6 Multiple Drivers of Value-Creation Organic NOI Growth NAV per Unit1 Growth FFO per Unit2 Growth Robust pace of organic growth Strong rent mark-to-market Strong fundamentals driving potential Execution of Euro debt strategy continued growth in market rents significantly lowere
Slide 7: Focused Portfolio Strategy
Dream Industrial REIT 7 Focused Portfolio Strategy Canada Europe U.S. Target Markets Greater Toronto Area Germany, Netherlands, France Strong markets across the U.S. Greater Montréal Area 1. Supply/demand 1. Growing e-commerce 1. Strong e-commerce imbalance 2. Supply/demand demand for distribution R
Slide 8: Focus on Modern, Functional & Well-located Urban & Distribution Assets
Dream Industrial REIT 8 Focus on Modern, Functional & Well-located Urban & Distribution Assets Distribution1 Urban Logistics1 Light Industrial1 57% of IP Value 30% of IP Value 13% IP Value Europe $90M Europe Europe 11% $1,727M $420M 51% 23% Canada Canada $1,676M Canada 49% $1,387M 77% $697M 89% 27.
Slide 9: Flexible Balance Sheet with Ample Liquidity
Dream Industrial REIT 9 Flexible Balance Sheet with Ample Liquidity Capital Structure 1 Strong and Flexible Balance Sheet 22% Net Total Debt-to-Total Assets (Net of Mortgages Cash and Cash Equivalents)2 25.8% 4% Unsecured Debt Unencumbered Equity 6 Investment Properties3 $4.5B 74% Available Liquidit
Slide 10: 2022 YTD Financial Highlights
Dream Industrial REIT 10 2022 YTD Financial Highlights Diluted FFO per Unit1 increased 16% year-over-year in Q1-2022, led by strong organic growth, lower cost of debt, and 1 robust pace of capital deployment 2 Comparative properties NOI2 increased 10% year-over-year in Q1-2022, led by Ontario at 18.
Slide 11: ESG Highlights
Dream Industrial REIT 11 ESG Highlights Environmental Social Governance 1.2 Million Developed ESG Framework sf of LED lighting upgrades1 61% Outlining key milestones and initiatives with of managers are women4 executive compensation linked to ESG metrics and 2.4 Million deliverables sf of green buil
Slide 12: Strong Track Record of Disciplined Capital Allocation
Dream Industrial REIT 12 Strong Track Record of Disciplined Capital Allocation Since 2018, recycled approximately $280 million of non-core assets and acquired more than $3.7 billion Increased NAV per Unit1 by 72% since year-end 2016 of higher quality assets that are located in better markets with hi
Slide 13: Experienced Management Team
Dream Industrial REIT 13 Experienced Management Team Brian Pauls Alex Sannikov Lenis Quan Bruce Traversy CEO COO CFO SVP, Head of Investments Joe Iadeluca Victor Settino Sharlene McKillop Sjoerd Barmentloo SVP, Portfolio Management VP, Development VP, Property Management Associate VP, Asset Manageme
Slide 14: Organic Growth and Value-Add
Organic Growth and Value-Add 6 Mesonweg, Utrecht, Netherlands
Slide 15: Increasing Pace of Organic Growth Drives Strong FFO per unit
Dream Industrial REIT 15 Increasing Pace of Organic Growth Drives Strong FFO per unit Diluted FFO per Unit 1 Change in wtd. average occupancy Average Net Total Debt-to-Total Assets (Net of Cash and Cash Change in in-place base rent Equivalents)2 10.0% YoY organic growth $0.24 40% $0.22 $0.22 2.7% $0
Slide 16: Strong Outlook for Organic Growth
Dream Industrial REIT 16 Strong Outlook for Organic Growth 1 Strong mark-to-market potential 2 High occupancy levels $12.50 100% +29.6% +6.0% C$10.30 99% $10.00 99% 98% C$7.95 98% $7.50 97% € 4.80 € 5.09 $5.00 96% 96% $2.50 95% 2020 2021 Q1-2022 Canada Europe In-place and committed base rent (psf) E
Slide 17: Poised For Strong Rental Rate Growth on Lease Roll-over
Dream Industrial REIT 17 Poised For Strong Rental Rate Growth on Lease Roll-over Committed Occupancy Retention Ratio 100% 100% 97% 98% 99% 96% 96% 96% 95% 95% 97% 96% 96% Percentage of overall portfolio of 86% 80% 80% 80% 78% 74% 76% 74% 73% 70% 71% 60% 85% 67% 86% 89% 88% 63% 94% 60% GLA 40% 20% 40
Slide 18: Development Strategy
Dream Industrial REIT 18 Development Strategy Redevelopment of existing Greenfield development Intensification of excess land properties 25% Interest in develop-to-hold GTA Comprised of several sites in Ontario Development Joint Venture with global ~720,000 SF of projects currently sovereign wealth
Slide 19: GTA Development Joint Venture With Global Institutional Investor
Dream Industrial REIT 19 GTA Development Joint Venture With Global Institutional Investor • Joint venture targeting to buy $500 million of industrial sites in the GTA and GGHA and build best-in-class Adds scale in core industrial assets with the goal of holding assets post stabilization markets • Pa
Slide 20: Activating Development Pipeline – Greenfield
Dream Industrial REIT 20 Activating Development Pipeline – Greenfield Rocky View County and Cross Roads Abbotside Way, Caledon (GTA), ON Commercial, Balzac, AB Cross Roads Commercial (20-acre) 8 KM to Calgary Range Road Project Rendering Int’l Airport Received site plan approval; commenced construct
Slide 21: Activating Development Pipeline – Intensification, Greater Montréal Area
Dream Industrial REIT 21 Activating Development Pipeline – Intensification Current Property 401 Marie Curie Boulevard, Greater Montréal Area 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
Slide 22: Activating Development Pipeline – Intensification, Greater Toronto Area
Dream Industrial REIT 22 Activating Development Pipeline – Intensification 100 East Beaver Creek, Greater Toronto Area 110,000 square foot property located in the GTA, in close proximity to Highways 404 and 407 Expanding property by over 40,000 square feet; construction is underway with completion e
Slide 23: Activating Development Pipeline – Intensification, Radeberg, Germany
Dream Industrial REIT 23 Activating Development Pipeline – Intensification Christoph-Seydel-Straße 1, Radeberg, Germany 274,000 square foot property on 30.4 acres located in Radeberg, Germany, adjacent to Dresden with 24’ clear height Current Property Excess land will support a 241,000 square foot l
Slide 24: Active Asset Management Case Studies
Dream Industrial REIT 24 Active Asset Management Case Studies 60 Steckle Place, Kitchener, ON 165 Harwood Avenue N., Ajax, ON Pre-refurbishment Post-refurbishment Property adjacent to DIR’s existing Kitchener portfolio, Distribution facility built in the early 2000s well-located acquired for $12
Slide 25: Financial Highlights
Financial Highlights 4 Zoete Inval, Breda, Netherlands
Slide 26: Strong and Flexible Balance Sheet
Dream Industrial REIT 26 Strong and Flexible Balance Sheet Focused de-leveraging while upgrading portfolio Shift to unsecured financing model significantly improved financial flexibility increased unencumbered investment properties pool 1 Ending Net Total Debt-to-Total Assets (Net of Cash and Cash E
Slide 27: Significantly Lowered Cost of Debt and Limited FX Exposure
Dream Industrial REIT 27 Significantly Lowered Cost of Debt and Limited FX Exposure Execution of European debt strategy Net Euro Exposure as at Q1-2022 YE 2019 Q1 2022 2% European IP Value Euro-equivalent debt $2.2 billion $1.8 billion 23% 35% 0.85% 3.6% Weighted Avg. Weighted Avg. Interest Rate Int
Slide 28: Limited Cash Obligations Provide Significant Acquisition Capacity
Dream Industrial REIT 28 Limited Cash Obligations Provide Significant Acquisition Capacity $600M 3.5 0.85% $500M years WAIR2 $484M $492M WATM1 $464M $400M $300M $259M $250M $200M $100M $33M $0M 2022 2023 2024 2025 2026 2026+ Unsecured Secured Well-staggered debt maturities provides strong liquidity
Slide 29: Portfolio Highlights
Portfolio Highlights Emil-Lux-Str. 1, Wermelskirchen, Germany
Slide 30: Broad Tenant Base Provides Diversified Rental Income
Dream Industrial REIT 30 Broad Tenant Base Provides Diversified Rental Income Use of Space by Annualized Gross Rent1 Industry Exposure by Annualized Gross Rent1 Other Logistics Cold Storage 18% 6% 2% Other* Office 26% 5% Light Industrial Food and Paper, Printing, and 21% Beverage Packaging Distribut
Slide 31: Top Tenants Consist of Renowned Global Companies
Dream Industrial REIT 31 Top Tenants Consist of Renowned Global Companies Top 10 tenants by gross revenue Industry Use of Space Auchan, a privately owned French international retail group, is one of the Food and Distribution & largest grocery chains in France with €32B in annual revenues, and the 11
Slide 32: Adding Scale and High-Grading Portfolio
Dream Industrial REIT 32 Adding Scale and High-Grading Portfolio 1 Rutherford Ct., Guelph, ON* 165 Harwood Avenue N., Ajax, ON Bijsterhuizen 3171, Wijchen, Netherlands Portugalweg 17, Bodegraven, Netherlands In Q1-2022, acquired ~$116M of assets across Canada and Europe; added 454,000 square feet
Slide 33: Recent Acquisitions – Canada
Dream Industrial REIT 33 Recent Acquisitions – Canada Greater Golden Horsehoe Portfolio, Ontario $160M 1.0M SF 74 IP Value GLA Acres 25 ft 100% 11 Clear height Occupancy Num. of buildings 100% occupied by strong tenants primarily in the logistics, automotive, and consumer goods sectors. Average in-p
Slide 34: Recent Acquisitions – Netherlands
Dream Industrial REIT 34 Recent Acquisitions – Netherlands Bijsterhuizen 3171, Wijchen, Netherlands Portugalweg 17, Bodegraven, Netherlands $27M 147K SF 5 $36M 128K SF 9 IP Value GLA Acres IP Value GLA Acres 40 ft 100% 1 40 ft 100% 1 Clear height Occupancy Num. of buildings Clear height Occupancy Nu
Slide 35: ESG Highlights
ESG Highlights 6 Guldenweg, Varsseveld, Netherlands
Slide 36: Significant Initiatives to Enhance Sustainability Profile
Dream Industrial REIT 36 Significant Initiatives to Enhance Sustainability Profile As part of the Dream group of As part of the Dream group of companies’ DIR became an official supporter of the Task companies’ commitment1, DIR is commitment1, DIR is supporting the United Force on Climate-related Fin
Slide 37: Capital Investments in Clean Power
Dream Industrial REIT 37 Capital Investments in Clean Power Netherlands Canada 8.4 megawatts of solar photovoltaic projects underway in Alberta and the Netherlands; total project cost of ~$15 million with expected unlevered yield on cost of over 8% Ten solar feasibility assessments in Alberta comple
Slide 38: Green Financing
Dream Industrial REIT 38 Green Financing Guldenweg 6, Varsseveld, Netherlands (BREEAM Very Good) Released Green Financing Framework in accordance with the UN Sustainable Development Goals Issued three Green Bonds totalling $850 million with proceeds expected to be allocated towards green buildings,
Slide 39: Thank you
Stevinlaan 4, Ede, Netherlands Thank you Utrecht, Netherlands
Slide 40: Forward Looking Information; Non-GAAP Financial Measures
40 Forward Looking Information This investor presentation may contain forward-looking information within the meaning of applicable securities legislation. Such statements include, but are not limited to, statements with respect to Dream Industrial REIT’s (the “Trust”) objectives and strategies to ac
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