Q1 2026 Dream Unlimited Corp Earnings Call

May 14, 2026

Operator: Welcome to Dream Unlimited Corp Q1 2026 Conference Call for Wednesday, 14 May 2026. During this call, management of Dream Unlimited Corp may make statements containing 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 Unlimited Corp's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is contained in Dream Unlimited Corp's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available on Dream Unlimited Corp's website at www.dream.ca. Later in the presentation, we'll have a question and answer session.

Speaker #3: Forward-looking information is based on a number of assumptions and is subject to a number of risk and uncertainties. Many of which are beyond Dream Unlimited Q4's control that could cause actual results to different materially from those that are disclosed in or implied by such forward-looking information.

Speaker #3: Additional information about these assumptions and risk and uncertainties is contained in Dream Unlimited Q4's filings with securities regulators including its latest annual information form and MDA.

Speaker #3: These filings are also available on Dream Unlimited Q1's website at www.dream.ca. Later in the presentation, we'll have a question-and-answer session. To join the question queue, you may press star, then the number one on your telephone keypad.

Operator: Your host for today will be Mr. Michael Cooper, CRO of Dream Unlimited Corp. Mr. Cooper, please go ahead.

Speaker #3: Your host for today will be Mr. Michael Cooper. CRO of Dream Unlimited Q4. Mr. Cooper, please go ahead.

Operator: Your host for today will be Mr. Michael Cooper, CRO of Dream Unlimited Corp. Mr. Cooper, please go ahead.

Michael Cooper: Thank you, operator, and welcome to Dream Unlimited's Q1 Conference Call. Today, as always, I'm with Meaghan Peloso, and I'd like to call on her to speak to the financials, then I'll make some comments afterwards. Thank you.

Speaker #2: Thank you, operator, and welcome to Dream Unlimited's first quarter conference call. Today, as always, I'm with Megan Peloso, and I'd like to call on her to speak to the financials, and I'll make some comments afterwards.

Speaker #3: Thanks, Michael. Good morning, everyone. Overall, our financial results for the quarter were very much in line with our expectations. In the period, we incurred an out loss of $4.8 million which was an improvement from a loss of $8.1 million in the prior year.

Meaghan Peloso: Thanks, Michael. Good morning, everyone. Overall, our financial results for the quarter were very much in line with our expectations. In the period, we incurred a net loss of CAD 4.8 million, which was an improvement from a loss of CAD 8.1 million in the prior year. Due to seasonality, Western Canada was not a large contributor, as most of the income from the division will occur in H2. Nonetheless, margin from our core divisions, being asset management, income properties in Western Canada, was CAD 19.6 million in the quarter, which is an increase of 12% relative to prior year.

Speaker #3: Due to seasonality, Western Canada was not a large contributor, as most of the income from the division will occur in the back half of the year.

Speaker #3: Nonetheless, margin from our core divisions being asset management, income properties, and Western Canada was $19.6 million in the quarter which is an increase of 12% relative to prior year.

Speaker #3: At a segmented level, in the first quarter, our asset management division generated revenue and net margin of $15.6 million and $12.2 million respectively. Up significantly, from $13 million and $9.3 million in the prior period.

Meaghan Peloso: At a segmented level, in Q1, our Asset Management division generated revenue and net margin of CAD 15.6 million and CAD 12.2 million respectively, up significantly from CAD 13 million and CAD 9.3 million in the prior period. The increase versus prior year was driven by continued AUM growth and higher incentive fee income in 2026. Western Canada development generated net margin of CAD 0.4 million in Q1, down modestly from prior year due to the specific product mix and volume sold in each period. Since our last reporting in February, we've secured a further CAD 32 million in pre-sales commitments, which is strong activity for the period.

Speaker #3: The increase versus the prior year was driven by continued AUM growth and higher incentive fee income in 2026. Western Canada development generated net margin of $0.4 million in the first quarter, down modestly from the prior year due to the specific product mix and volume sold in each period.

Speaker #3: Since our last reporting in February, we've secured a further $32 million in pre-sales commitments which is strong activity for the period. Based on pre-sales commitments secured to date, we've locked in revenue of $138.9 million for land sales to be recognized in 2026.

Meaghan Peloso: Based on pre-sales commitments secured to date, we've locked in revenue of CAD 138.9 million for land sales to be recognized in 2026, which is in addition to the CAD 13.3 million of revenue recognized already in Q1. In Q1, our income properties portfolio generated NOI of CAD 7 million, up from CAD 6.6 million in the prior year, largely driven by lease-up activity across our apartment portfolio. We currently have 950 apartment units under construction that will be completed now through the end of 2027 and expect to start at least another 200 units later this year, all of which will continue to support steady growth for the division.

Speaker #3: Which is in addition to the $13.3 million of revenue recognized already in the first quarter. In the first quarter, our income properties portfolio generated NOI of $7 million up from $6.6 million in the prior year largely driven by lease of activity across our apartment portfolio.

Speaker #3: We currently have $950 apartment units under construction that will be completed now through the end of 2027 and expect to start at least another 200 units later this year.

Speaker #3: All of which will continue to support steady growth for the division. Our other investment segment generated $6.9 million of negative net margin in the first quarter and improvement compared to $8.7 million of negative net margin in the comparative period.

Meaghan Peloso: Our other investment segment generated CAD -6.9 million of net margin in Q1, an improvement compared to CAD -8.7 million of net margin in the comparative period. We expect our development fee income in this segment to increase over time as new projects come online, but for 2026 specifically, don't anticipate earnings from this segment as we have minimal inventory available for sale. Over the course of and subsequent to the quarter, we spent CAD 7.7 million in share repurchases. Lastly, as of 31 March, we had ample liquidity of CAD 342 million. On a consolidated basis, the company had about CAD 450 million of current debt. Of that amount, about CAD 100 million rolls automatically on an annual basis.

Speaker #3: We expect our development fee income in the segment to increase over time as new projects come online, but for 2026 specifically, we don't anticipate earnings from the segment as we have minimal inventory available for sale.

Speaker #3: Over the course of and subsequent to the quarter, we spent $7.7 million in share repurchases. Now lastly, as of March 31st, we had ample liquidity of $342 million.

Speaker #3: On a consolidated basis, the company had about $450 million of current debt. Of that amount, about $100 million rolls automatically on an annual basis and we're pretty active on another $165 million which we're on track to be completed over the next couple of quarters.

Meaghan Peloso: We're pretty active on another CAD 165 million, which we're on track to be completed over the next 2 quarters. Of the remaining maturities, a significant balance relates to a CMHC-insured loan that doesn't mature until Q1 2027, which will be renewed or refinanced in normal course, but closer to the maturity. Overall, we feel very well positioned on our near-term maturities, and we'll provide further updates as we report this year. With that, I'll turn the call back over to you, Michael.

Speaker #3: Of the remaining maturities, a significant balance relates to a CUHC insured loan that doesn't mature until the first quarter of 2027 which will be renewed or refinanced in normal course, but closer to the maturity.

Speaker #3: So overall, we feel very well positioned on our near-term maturities, and we'll provide further updates as we report this year. So with that, I'll turn the call back over to you, Michael.

Speaker #2: Thanks, Megan. The first quarter is of not a lot of relevance in the history of our company. In fact, I'd bet the fourth quarter produces maybe 10 or more times the profit historically.

Michael Cooper: Thanks, Meaghan. Q1 is of not a lot of relevance in the history of our company. In fact, I'd bet Q4 produces maybe 10 or more times the profit historically. Today what I wanted to talk about was some of the massive changes we're seeing since the beginning of the year. There's really two themes. One is government, government, and the other one is tailwinds starting to sort of assemble. In housing, we're seeing tremendous involvement from the federal government, most of it is very positive. I think it's important because it is affecting a lot of our business, number one, and again, much to the better. I'd also say it is probably quicker to get money into housing through the provinces, cities, and developers than it is to do major projects.

Speaker #2: But today, what I want to talk about was some of the massive changes we're seeing since the beginning of the year. And there's really two themes.

Speaker #2: One is government, government, government. And the other one is tailwinds starting to sort of assemble. In housing, we're seeing tremendous involvement from the federal government and most of it is very positive.

Speaker #2: And I think it's important because it is affecting a lot of our business, number one. And again, much to the better. But it also say it is probably quicker to get money into housing through the provinces, cities, and developers than it is to do major projects.

Speaker #2: And I think that we're going to see a lot of benefit in our economy from what the government has already undertaken. So I'll get into that in a minute and then as far as tailwinds go, we're living in a time of tremendous chaos but I think we've adjusted pretty well and assuming this amount of chaos and not more we're seeing a lot of positive things happening.

Michael Cooper: I think that we're going to see a lot of benefit in our economy from what the government has already undertaken. I'll get to that in a minute. As far as tailwinds go, you know, we're living in a time of tremendous chaos, but I think we've adjusted pretty well. Assuming this amount of chaos and not more, we're seeing a lot of positive things happening. Firstly, with the government, in housing, they've reduced HST in many situations. In Ontario, between the province and the feds, they're putting up CAD 8.8 billion to pay for infrastructure. That'll reduce development charges by half. In both of those cases, the final legislation isn't complete. We're expecting it soon. You can see already they're having benefits with the reduced HST.

Speaker #2: So firstly, with the government, in housing, they've reduced HST in many situations. In Ontario, between the province and the feds, they're putting up 8.8 billion to pay for infrastructure that will reduce development charges by half.

Speaker #2: In both of those cases, the final legislation isn't complete. We're expecting it soon. But you can see already they're having benefits with the reduced HST.

Speaker #2: The Build Ontario Fund has now become quite active and it is putting money into the system and that's been making a difference. I'll get into that in a second.

Michael Cooper: The Building Ontario Fund has now become quite active, and it is putting money into the system, that's been making a difference. I'll get into that in a second. Build Canada Homes is also being very active. They're working a lot with not-for-profits, cities, and provinces, but they're also benefiting private developers. Just yesterday, they announced in Alberta that the federal government and Alberta had gotten together to create grants for affordable housing and ACHP financing is one that's been around, but it's very, very positive. That's just a small amount. I would say that with reduced HST, we're seeing people starting to buy condos. It's been one that's been funded by, in part by the Building Ontario Fund.

Speaker #2: Build Canada, housing, is also being very active. They're working a lot with not-for-profits, cities, and provinces. But they're also benefiting private developers. Just yesterday, they announced in Alberta that the federal government and Alberta had gotten together to create grants for affordable housing and ACPL financing is one that's been around but it's very, very positive.

Speaker #2: So that's just a small amount but I would say that with the reduced HST, we're seeing people starting to buy condos. There's been one that's been funded by in part by the Build Ontario Fund.

Speaker #2: There's been another group that is going to buy, I think, $500 million of condos. And they're going to benefit both groups will benefit from a 13% refund of HST.

Michael Cooper: There's been another group that is gonna buy, I think, CAD 500 million of condos and they're gonna benefit. Both groups will benefit from a 13% refund of HST. Plentiful financing available from banks. I'm just curious how 3,300 condominiums are gonna be purchased and what that's gonna do to pricing. Basically, the math works pretty well. Rents are a little bit lower, but they're still pretty good. You can borrow maybe 65% debt from banks. That leaves 35%. You get 13% back, and you can get some type of return on your capital in an initial instance.

Speaker #2: Plentiful financing available from banks. And I'm just curious how 3,300 condominiums are going to be purchased and what that's going to do to pricing.

Speaker #2: And basically, the math works pretty well. Rents are a little bit lower but they're still pretty good. You can borrow maybe 65% debt from banks.

Speaker #2: That leaves 35%. You get 13% back. And you can get some type of return on your capital. An initial instance. And then I think people are basically thinking if they can buy for $750 or $800 a foot, they can sell within five years for $1,000.

Michael Cooper: I think people are basically thinking if they can buy for CAD 750 or CAD 800 a foot, they can sell within 5 years for CAD 1,000, and that'll generate a 20% return. Why that's important is it's certainly putting a floor on the value of condominiums, and I think we're gonna see a lot more demand from those two groups, plus others saying, I think it's not a bad investment at these prices. I think that's gonna be very positive for condos. Another thing that's happening is we saw that the US government approved a pipeline from Canada. It looks like Ottawa is getting close with Alberta on an MOU, and it looks like the Trans Mountain pipeline will probably be increased. These are not insignificant.

Speaker #2: And that'll generate a 20% return. Why that's important is it's certainly putting a floor on the value of condominiums. And I think we're going to see a lot more demand from those two groups plus others saying I think it's not a bad investment at these prices.

Speaker #2: So, I think that's going to be very positive for condos. Another thing that's happening is we saw that the US government approved a pipeline from Canada. It looks like Ottawa is getting close with Alberta on an MOU.

Speaker #2: And it looks like the Trans-Canada pipe the Trans-Mountain pipeline will probably be increased. These are not insignificant. Today, Canada will sell 600 million US of oil and they'll do it every day.

Michael Cooper: Today, Canada will sell $600 million US of oil. They'll do it every day. It's a massive amount of money. Canada produces 6 million barrels a day of oil equivalents. That's up quite a bit from 10 years ago. You know, the US has done the best. They're at 20 to 22 million barrels. It's a massive amount. Saudi Arabia and Russia are both between 10 and 11. Canada's at 6. With these pipelines, we could easily get beyond 8. Canada's gonna be approaching Russia and Saudi Arabia in terms of the revenue generated from oil and gas. This is having a massive effect on the Alberta budget. It was going to be -CAD 9 billion. Now we're hearing numbers, if this continues, could be as high as CAD 10 to 16 billion.

Michael Cooper: Today, Canada will sell $600 million US of oil. They'll do it every day. It's a massive amount of money. Canada produces 6 million barrels a day of oil equivalents. That's up quite a bit from 10 years ago. You know, the US has done the best. They're at 20 to 22 million barrels. It's a massive amount. Saudi Arabia and Russia are both between 10 and 11. Canada's at 6. With these pipelines, we could easily get beyond 8. Canada's gonna be approaching Russia and Saudi Arabia in terms of the revenue generated from oil and gas. This is having a massive effect on the Alberta budget. It was going to be CAD 9 billion. Now we're hearing numbers, if this continues, could be as high as CAD 10 to 16 billion.

Speaker #2: It's a massive amount of money. Canada produces 6 million barrels a day of oil equivalents. That's up quite a bit from 10 years ago.

Speaker #2: The US has done the best. They're at 20 to 22 million barrels. It's a massive amount. Saudi Arabia and Russia are both between 10 and 11.

Speaker #2: Canada's at 6. And with these pipelines, we could easily get beyond 8. So Canada's going to be approaching Russia and Saudi Arabia in terms of the revenue generated from oil and gas.

Speaker #2: This is having a massive effect on the Alberta budget. It was going to be a negative 9 billion. Now we're hearing numbers at this continues.

Speaker #2: Could be as high as 10 to 16 billion. That's a swing of about $6,000 per person in Alberta, which is pretty massive. The Fed has also doing better.

Michael Cooper: That's a swing of about CAD 6,000 per person in Alberta, which is pretty massive. The Fed is also doing better. We're hearing about defense, and I think that it's probably not a bad idea to take the federal government at their word that they're gonna pump money into industries to encourage growth. I think we're gonna see it, and I think we're seeing it in housing first, but we're gonna see it everywhere. I also think that with the Prime Minister doing a roadshow around the world promoting Canada, it's had a massive change in Canada's appeal for foreign investors. We're seeing that in our asset management business, but I think that's gonna have a significant effect as well. Another area is the government, the federal government is requiring people to go back to work 4 days a week.

Speaker #2: We're hearing about defense. And I think that it's probably not a bad idea to take the federal government at their word that they're going to pump money into industries to encourage growth.

Speaker #2: And I think we're going to see it. And I think we're seeing it at housing first but we're going to see it everywhere. I also think that with the Prime Minister doing a roadshow around the world promoting Canada, it's had a massive change in Canada's appeal for foreign investors.

Speaker #2: We're seeing that in our asset management business. But I think that's going to have a significant effect as well. Another area is the government the federal government's requiring people to go back to work four days a week.

Speaker #2: We've been told that that actually means they need to lease a lot of space. That'll be good for both Zibbi and Dream Office. Although it may take at least a year before we get the outcomes.

Michael Cooper: We've been told that that actually means they need to lease a lot of space. That'll be good for both Zibi and Dream Office. Although it may take at least 1 year before we get the outcomes. We have 3 major groups that we've been talking about for years, and I hope that for investors it is becoming clear. Our Western Canadian business continues to be very strong and growing. Our income property is getting more profitable every year. Our asset management business is growing by every metric every year as well. You know, some 80 something% of our business is going strong and getting stronger, which I think is very, very positive. In Western Canada, in Saskatoon we are hearing things like the trades are the busiest they've been in 10 years.

Speaker #2: So, we have three major groups that we've been talking about for years, and I hope that, for investors, it's becoming clear: our Western Canadian business continues to be very strong and growing.

Speaker #2: Our income property is getting more profitable every year. And our asset management business is growing by every metric every year as well. So some 80-something percent of our business is going it's strong and getting stronger, which I think is very, very positive.

Speaker #2: In Western Canada, in Saskatoon, we're hearing things like the trades are the busiest they've been in 10 years. Land prices at an all-time highs.

Michael Cooper: Land prices are at all-time highs. The city is saying that over the next 10 years they're expecting growth in population of 100,000 people in the city of Saskatoon, whereas I think it's just under 70,000 the last 10 years. Our base numbers using that is that if that were true, we would use up twice the amount of land that we're planning on using, and that would be extremely profitable. That's very exciting about Saskatoon. Regina is similar. Alberta seems quite strong in our business area. It's actually, I don't think the benefits of the higher revenue from oil have gone through the economy yet, ironically, Saskatoon seems to be a bit stronger now than Alberta. Both are very positive. In asset management, we have lots of activity going on in the platform. We've been successful starting new ventures.

Speaker #2: The city is saying that over the next 10 years they're expecting growth in population of 100,000 people in the city of Saskatoon. Whereas I think it's just under 70,000 in the last 10 years.

Speaker #2: Our base number is using that is that if that were true, we would use up twice the amount of land that we're planning on using and that would be extremely profitable.

Speaker #2: So that's very exciting about Saskatoon. Regina is similar. Alberta is seeing quite strong in our business area. It's actually I don't think the benefits of the higher revenue from oil have gone through the economy yet.

Speaker #2: So ironically, Saskatoon seems to be a bit stronger now than Alberta. But both are very positive. In asset management, we have lots of activity going on in the platform.

Speaker #2: We've been successful starting new ventures. We've got significant commitments. I think Megan referred to $5 billion of dry powder. And that includes Dream Industrial after the sale to CPP.

Michael Cooper: We've got significant commitments. I think Meaghan referred to CAD 5 billion of dry powder. That includes Dream Industrial after the sale to CPP. We've been very active on industrial across the board in Europe and in Canada. In apartments, it's, you know, the market because of the declining population, rents have been a little bit lower. There's also been a lot of condos added. That's become a little bit less certain. That's been a little bit harder to deploy capital, but we expect to make progress throughout the balance of the year. Asset management looks really strong. This quarter our income properties went through CAD 1 billion, which was pretty exciting. Western Canada properties are doing well. We've finished our third apartment. We have 2 townhouse sites.

Speaker #2: And we've been very active on industrial across the board in Europe and in Canada. In apartments, it's the market because of the declining population rents have been a little bit lower.

Speaker #2: There's also been a lot of condos added. So that's become a little bit less certain. That's been a little bit harder to deploy capital.

Speaker #2: But we expect to make progress throughout the balance of the year. So asset management looks really strong. This quarter, our income properties went through a billion dollars, which was pretty exciting.

Speaker #2: Western Canada properties are doing well. We've done we've finished our third apartment. We have two townhouse sites. We got two or three single-family rental sites.

Michael Cooper: We got 2 or 3 single-family rental sites, it's certainly adding up. We've just hit stabilization. I actually think we're at 100% leased at Brighton Village Rental 3. We're putting together our financing. It looks like when you compare our financing package to what we approved to build the property, we're hitting every number or doing better. That's pretty exciting. BVR 4 is now topped off, and it will be occupying by year-end. BVR 5, I think it's just starting to come up out of the ground. BVR 6 will start by year-end, we're really getting it down into an assembly line. We're very pleased with that. In addition, we're expecting that Odenak in Ottawa, which is a building we own a third of, it will start to occupy by year-end.

Speaker #2: So, it's certainly adding up. But we've just hit stabilization. I actually think we're at 100% leased at Brighton Village Rental 3. We're putting together our financing.

Speaker #2: It looks like when you compare our financing package, to what we approved to build the property, we're hitting every number or doing better. So that's pretty exciting.

Speaker #2: BVR4 is now topped off. And it will be occupying by year-end. BVR5, I think it's just starting to come out of the ground. And BVR6 will start by year-end.

Speaker #2: So we're really getting it down into an assembly line. We're very pleased with that. In addition, we're expecting that ODENAC in Ottawa, which is a building we own a third of, will start to occupy by year-end.

Speaker #2: So, most of the buildings that we've built, they're pretty much fully leased. And our pipeline is really starting to work for us.

Michael Cooper: Like the buildings that we built, they're pretty much fully leased, and we've got our pipeline is really starting to work for us. I think this year and next year are gonna be very significant years. In fact, in 2027, our first building in Alpine Park will be finished and leasing and Block 204 in Ottawa, which is about 200 units, a little more than 200 units, will also be complete. We're really gonna see some growth in our apartments on the properties we own directly in Dream. Our Ontario apartments are filling up and the occupancy is pretty good. We're seeing less incentives, but the rents are still much lower than we would have liked.

Speaker #2: So I think this year and next year are going to be very significant years. In fact, in 2027, our first building in Alpine Park will be approved.

Speaker #2: It will be finished and leasing and Block 204 in Ottawa, which is about 200 units to a little more than 200 units, will also be complete.

Speaker #2: So we're really going to see some growth in our apartments on the properties we own and directly in Dream. Our Ontario apartments are filling up.

Speaker #2: And the occupancy is pretty good. We're seeing less incentives. But the rents are still much lower than we would have liked. The biggest asset we own within our income property division is the distillery district.

Michael Cooper: The biggest asset we own within our income property division is The Distillery District. It continues to do very well, and it looks like it has quite good prospects. You know, we're pretty pleased with Western Canada Asset Management Income Properties. All of them look like they're gonna do well this year and do better in future years. I would add that it was just announced yesterday that a 350-unit building at Alpine Park in Calgary that we want to build has been conditionally approved for a CAD 31 million grant that would help us get that off the ground. It's not actually quite enough considering the affordable, if we can put it together with another program, we're gonna have a really great building to build that will have reduced risk because of the lower rents.

Speaker #2: And it continues to do very well. And it looks like it has quite good prospects. So we're pretty pleased with Western Canada, asset management, income properties.

Speaker #2: All of them look like they're going to do well this year. And do better in future years. I would add that it was just announced yesterday that a $350 unit building at Alpine Park in Calgary that we want to build has been conditionally approved for a $31 million grant.

Speaker #2: That would help us get that off the ground. It's not actually quite enough considering the affordable, but if we can put it together with another program, we're going to have a really great building to build that will have reduced risk because of the lower rents.

Speaker #2: So we're looking forward to getting that all together this year and starting next year. In our other category, our office businesses, we're quite pleased that it's stable now.

Michael Cooper: We're looking forward to getting that all together this year and starting next year. In our other category, We're quite pleased that it's stable now. We saw a 240 basis points increase in occupancy, we're seeing good signs that it should stay around here or improve for the balance of the year. Zibi Office, as I mentioned, is likely to benefit from the federal need for space in Ottawa. Impact Trust is one that we spend a lot of time on. We think it's got incredible assets. Fort York on Ontario is ahead of schedule. It's under budget. We're building without HST. We're not paying development charges, our construction costs are the best we've had in years.

Speaker #2: We saw a $240 basis point increase in occupancy. And we're seeing good signs that it should stay around here or improve for the balance of the year.

Speaker #2: Zippy Office, as I mentioned, is likely to benefit from the federal need for space in Ottawa. Impact Trust is one that we spent a lot of time on.

Speaker #2: We think it's got incredible assets, $49 Ontario. It is ahead of schedule. It's under budget. We're building without HST. We're not paying development charges.

Speaker #2: And our construction costs are the best we've had in years. So we're going to end up with an excellent building. Across from the subway, at a very low cost base.

Michael Cooper: We're gonna end up with an excellent building across from a subway, at a very low cost base, and it works at today's rents. With the policy on immigration, I think we've probably got another 4 or 5 quarters before we start to see what I think is gonna be, you know, between 0.5% and 1% population growth. I think that's gonna make a really big difference on the rents in Toronto, and I think Fort York and Ontario could be a real winner. We're working hard on Quayside. Impact owns 25% of Quayside. I don't know if we made it clear, Quayside's a joint venture with the City of Toronto and Waterfront Toronto. We're building 1,200 apartment units, all market.

Speaker #2: And it works at today's rents. But with the policy on immigration, I think we've probably got another four or five quarters before we start to see what I think is going to be between one half and 1% population growth.

Speaker #2: I think that's going to make a really big difference on our on the rents in Toronto. And I think 49 Ontario could be a real winner.

Speaker #2: We're working hard on Keyside. Impact owns 25% of Keyside. I don't know if we made it clear. But Keyside is a joint venture with the city of Toronto and Waterfront Toronto.

Speaker #2: We're building 1,200 apartment units, all market. And the city and Waterfront Toronto are working on 500 affordable units that they will own. But it's a joint venture in terms of we're the developer.

Michael Cooper: The City and Waterfront Toronto are working on 500 affordable units that they will own. It's a joint venture in terms of we're the developer. It was CentreCourt, but we're doing them both together. The City and Waterfront Toronto have been amazing. There's been so many challenges, but we're getting through them. We're getting through them as teammates. We're working together on debt with the feds, and I think that's gonna be an amazing asset. We've got a lot of, you know, we got West Don Lands, we've got some of the Zibi assets. Impact Trust has great assets that we have too much debt, and we've got a lot of development, but we're really seeing the development go through the system and come out the other end.

Speaker #2: It was Centre Court. But we're doing them both together. And the city and Waterfront Toronto have been amazing. There's been so many challenges. But we're getting through them.

Speaker #2: We're getting through them. As teammates, we're working together on debt with the Feds, and I think that's going to be an amazing asset. And then we've got a lot of—we got West Dawnlands.

Speaker #2: We've got some of the Zippy assets. So Impact Trust has great assets that we have too much debt. And we've got a lot of development.

Speaker #2: But we're really seeing the development go through the system and come out the other end. So I think it's going to be an excellent portfolio.

Michael Cooper: I think it's gonna be an excellent portfolio, but it's just the wrong time now, and Dream has continued to support Impact. We're very confident that the money we're lending is well secured, and we will continue doing that, provided the conditions remain the same or better. Overall, I actually feel that we have better days ahead. We set our assumptions for our budget in October, maybe November. That's more than six months ago. We got our Q1 results, but we also have all kinds of other progress reports, and it looks like things are going as we had hoped. The pre-development or interest from builders for 2027 and beyond are looking better than we hoped.

Speaker #2: But it's just the wrong time now. And Dream has continued to support Impact. We're very confident that the money we're lending is well secured.

Speaker #2: And we will continue doing that. It's provided the conditions remain the same. We're better. So overall, I actually feel that we have better days ahead.

Speaker #2: We set our assumptions for our budget in October, maybe November. That's more than six months ago. We got our first quarter results. But we also have all kinds of other progress reports.

Speaker #2: And it looks like things are going as we had hoped. And the pre-development or interest from builders for 2027 and beyond are looking better than we hoped.

Speaker #2: So we're pretty pleased with where we sit. Considering I was going to say considering all the chaos. But I would say in spite of the chaos, things are looking better and better.

Michael Cooper: We're pretty pleased with where we sit in spite of the chaos, things are looking better and better. With that, operator, we'd be happy to answer questions.

Speaker #2: And with that operator, we'd be happy to answer questions.

Speaker #1: We'll now begin the question and answer session. To join the question queue, you may press star, then the number one on your telephone keypad.

Operator: We'll now begin the question and answer session. To join the question queue, you may press star then the number 1 on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your headset before pressing any keys. To withdraw your question, please press star 1 again. We'll pause for a moment as callers join the queue. Your first question comes from the line of Sam Damiani from TD Cowen. Your line is live.

Speaker #1: You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your headset. Before pressing any keys, to withdraw your question, please press star one again.

Speaker #1: We'll pause for a moment as callers join the queue. Your first question comes from the line of Sam Damiani from TD Cowen. Your line is live.

Speaker #3: Thank you, good morning, everyone. Thank you very much for the detailed business update and review. And glad to hear things are going well. Michael, you mentioned talked a lot about Western Canada.

Sam Damiani: Thank you. Good morning, everyone. Thank you very much for the detailed business update and review. Glad to see, hear things are going well. Michael, you mentioned, talked a lot about Western Canada. You're seeing good interest from builders. I think your outlook for 2027 is pretty constructive. Just curious on the quarter and on what you expect for 2026. With Coopertown, you know, up and running now, is it, you know, recognizing lot sales on that project, and is it having an impact on the average sale price? I just saw that, you know, the average lot sale price did stick down a little bit in Q1.

Speaker #3: You're seeing good interest from builders. I think your outlook for 2027. It's pretty constructive. Just curious, on the quarter and on what you expect for 2026, with Coopertown up and running now, is it are you incurring a lot of recognizing lot sales on that project?

Speaker #3: And is it having an impact on the average sale price? I just saw that the average lot sale price did sneak down a little bit in Q1.

Meaghan Peloso: Hi, Sam. I would say the Coopertown revenue would be later in the year. There wasn't anything specific to call out on the average sale price. It's really just based on the specifics of the lot and phase that got sold in the period. On the overall, there isn't anything odd or irregular that we're expecting from the sales price when we look at the entire year.

Speaker #4: Hi, Sam. I would say the Coopertown revenue would be later in the year. There wasn't anything specific to call out on the average sale price.

Speaker #4: It's really just based on the specifics of the lot. And phase that got sold in the period. But on the overall, there isn't anything odd or irregular that we're expecting from the sales price.

Speaker #4: And we look at the entire year.

Speaker #3: Yeah. And Sam, it's good because I left out that I mentioned that partners are going well, firstly, with Western Canada, initially, we always meant that as land development.

Michael Cooper: Yeah. Sam, it's good because I left out that, you know, I mentioned the apartments. Well, firstly, with Western Canada, initially, we always meant that as land development, and that business is going well. Now we're developing more and more income properties, and it's adding up to a lot. It is Western Canada exposure, so I think there's gonna be very strong population growth. While the country is negative, Saskatoon and Alberta are still having positive growth. I think the apartments we're building are needed. I think we're gonna see our exposure to Western Canada is gonna be both in income properties and in our land development business. What has happened is our Homewood development, the approvals have been delayed, so we're going to miss selling single-family lots in that area.

Speaker #3: And that business is going well. But now we're developing more and more income properties, and it's adding up to a lot. And it is Western Canada exposure.

Speaker #3: So I think there's going to be very strong population growth. While the country is negative, Saskatoon and Alberta are still having positive growth. I think the apartments we're building are needed.

Speaker #3: So, I think we're going to see our exposure to Western Canada is going to be both in income properties and in our land development business.

Speaker #3: What has happened is our home wood development, the approvals have been delayed. So we're going to miss selling single-family lots in that area. In fact, part of that is because in working with the city and the 3,400 student school, we've been trying to accommodate more public transportation, which will be better in the long term.

Michael Cooper: In fact, part of that is because in working with the city and the 3,400 student school, we've been trying to accommodate more public transportation, which will be better in the long term. We're gonna miss some sales because of government approvals in Saskatoon. From our own numbers, we're able to make it up elsewhere for the most part. Western Canada will be a little bit light this year, but it's all because of timing, and we'll get it back next year.

Speaker #3: But we're going to miss some sales because of government approvals in Saskatoon. But from our own numbers, we're able to make it up elsewhere.

Speaker #3: For the most part, so Western Canada will be a little bit late this year. But it's all because of timing, and we'll get it back next year.

Sam Damiani: That is good color because I did notice the sort of lot commitments, and it's early in the year still, but the commitments are a little bit down from where they were a year ago. I guess that would explain it. Michael, you mentioned a 350 unit rental property at Alpine Park. Is that all in one building, in one sort of tower? That would be a large asset on that site.

Speaker #2: That is good caller. Because I did notice the sort of lot commitments it's early in the year still. But the commitments are a little bit down from where they were a year ago.

Speaker #2: And so I guess that would explain it. And Michael, you mentioned a $350 unit rental property. At Alpine Park, is that all in one building, in one sort of tower?

Speaker #2: That would be a large asset on that site.

Michael Cooper: This is part of our city center and Alpine Park is an incredible walkable community by one of the leaders of the New Urbanism. What we're doing is we're having retail at grade and apartments above it. It's actually block 1, 2, and 3, so it's 3 buildings. Because of the parking and how integrated it is, they're gonna go more or less at the same time.

Speaker #5: This is part of our city center, and the Alpine Park is an incredible walkable community by one of the leaders of urban modernism.

Speaker #5: And what we're doing is, we're having retail at grade and apartments above it. It's actually Block One, Two, and Three, so it's three buildings.

Speaker #5: But because of the parking and how integrated it is, they're going to go more or less at the same time.

Speaker #2: Got it. And that would be owned by Dream. That one. Okay. Interesting. That's great to see. Just overall on asset management, the incentive fees recognized in Q1, just to be clear, I assume none of it was from the DCI joint venture.

Sam Damiani: Got it. That would be owned by Dream.

Sam Damiani: Got it. That would be owned by Dream that one? Okay. Interesting. That's great to see. Just overall on asset management, the incentive fees recognized in Q1, just to be clear, I assume none of it was from the DCI joint venture. If you can just confirm that. I guess just what sort of things did contribute to the incentive fees in Q1?

Michael Cooper: Yeah

Sam Damiani: that one? Okay. Interesting. That's great to see. Just overall on asset management, the incentive fees recognized in Q1, just to be clear, I assume none of it was from the DCI joint venture. If you can just confirm that. I guess just what sort of things did contribute to the incentive fees in Q1?

Speaker #2: And if you can just confirm that. And then I guess just what did sort of what sort of things did contribute to the incentive fees in Q1?

Speaker #4: So the incentive fee that was recognized in Q1 did not relate to the joint venture. All of that incentive fee was picked up in the fourth quarter of last year.

Meaghan Peloso: The incentive fee that was recognized in Q1 did not relate to the joint venture. All of that incentive fee was picked up in Q4 of last year. There is some normal course dispositions from the industrial REIT that took place that was the biggest driver for that fee in the period.

Speaker #4: There is some normal course dispositions from the industrial REIT that took place that was the biggest driver for that fee in the period.

Speaker #2: Okay. All right. Okay. I'll let someone else chime in. Thanks very much.

Sam Damiani: Okay. All right. Okay, I'll let someone else chime in. Thanks very much.

Speaker #5: Thank you.

Michael Cooper: Thank you.

Speaker #1: As a reminder, if you'd like to ask a question, you may press star and one on your telephone keypad. Your next question comes from the line of Mark Rothschild from Canaccord Genuity.

Operator: Your next question comes from the line of Mark Rothschild from Canaccord Genuity.

Speaker #1: Your line is now.

Speaker #5: Thanks. And good morning. Michael, you spoke about, in particular, one of the first things you spoke about is the condo market and the investors that are coming in to purchase condos.

Mark Rothschild: Thanks, good morning. Michael, you spoke about in particular, one of the first things you spoke about is the condo market and investors that are coming in to purchase condos. It's something that's important. Can you maybe expand on how you feel that impacts Dream and why you think that's important for Dream?

Speaker #5: It's something that's important. Can you maybe expand on how you feel that impacts Dream and why you think that's important for Dream?

Michael Cooper: I think it's gonna bring some stability to the condo market and get rid of the excess supply. I think that's good. I think really why it's happening is because there's a reasonable economic case to be buying condos and renting them out. I think that means there may be pretty big demand, and hopefully the condo market will become in better balance. That'll clear things out, so whether somebody could build apartments in the future or condos, the market will be more stable. It doesn't for us, I don't think it's a really big deal right now, but I think that it does suggest that the condo, the balance of supply and demand in Toronto is likely to get better on the for sale side.

Speaker #3: I think it's going to bring some stability to the condo market and get rid of the excess supply, so I think that's good. And I think really why it's happening is because there's a reasonable economic case to be buying condos and renting them out.

Speaker #3: So I think that means there may be pretty big demand and hopefully the condo market will become in better balance. And that'll clear things out.

Speaker #3: So whether somebody's going to build apartments in the future or condos, the market will be more stable. It doesn't for us, I don't think it's a really big deal right now.

Speaker #3: But I think that it does suggest that the condo—the balance of supply and demand in Toronto—is likely to get better on the for-sale side.

Speaker #5: Okay. Thanks. And maybe just following up on the last point you spoke about, Sam, as far as fees are under promotes on this Dream Industrial joint venture transaction.

Mark Rothschild: Okay, thanks. Maybe just following up on the last point you spoke about, Sam, as far as, you know, fees earned or promotes earned on the Dream Industrial joint venture transaction or the new funds. You spoke about how some of that proceeds would be used for share buybacks. Has there been any change to what your target or range is maybe for the year, how you're looking at buyback shares?

Speaker #5: Or the new funds. You spoke about how some of those proceeds would be used for share buybacks. Has there been any change to what your target or range is, maybe for the year—how you're looking at buying back shares?

Speaker #3: I think we said we were looking at about a million shares or 18 million, much the same for most of my career.

Michael Cooper: I think we said we were looking at about 1 million shares or CAD 18 million, CAD 20 million, depending on the share price, although it's been pretty much the same for most of my career.

Speaker #5: Okay. Thank you.

Mark Rothschild: Okay. Thank you.

Speaker #1: This concludes the question and answer session. I would now like to turn the conference back over to Mr. Cooper for any closing remarks.

Operator: This concludes the question and answer session. I would now like to turn the conference back over to Mr. Cooper for any closing remarks.

Speaker #5: Thank you, Sam and Mark, for your intense interest in the company. And hopefully, people who didn't ask a question are also interested. Megan and I will be available if anybody has any questions after the call.

Michael Cooper: Thank you, Sam and Mark, for your intense interest in the company. Hopefully, people who didn't ask a question are also interested. Megan and I will be available if anybody has any questions, after the call. Please feel free to contact us. Thank you very much.

Speaker #5: So please feel free to contact us. Thank you very much.

Operator: This brings today to a close. You may now disconnect.