This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts are in U.S. dollars.

TORONTO--(BUSINESS WIRE)--August 06, 2025-- 

DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U, TSX: DRR.UN) ("Dream Residential REIT" or the "REIT" or "we" or "us") today announced its financial results for the three and six months ended June 30, 2025 ("Q2 2025").

HIGHLIGHTS

   --  Comparative properties net operating income ("comparative properties 
      NOI")1 was $6.4 million in Q2 2025, a 1.1% increase from Q2 2024. Net 
      rental income was $8.2 million in Q2 2025 or $0.2 million higher than the 
      prior year comparative quarter mainly due to an increase in investment 
      properties revenue. 
   --  Diluted funds from operations ("FFO") per Unit2 was $0.18 for Q2 2025, 
      consistent with Q2 2024, comprising a slight increase in comparative 
      properties NOI, offset by a decrease in interest and other income and an 
      increase in interest expense on debt. 
   --  Portfolio occupancy increased to 95.2% as at June 30, 2025, from 93.3% 
      at the end of Q1 2025, with the Greater Oklahoma City region at 94.8%, 
      Greater Dallas--Fort Worth region at 94.8% and Greater Cincinnati region 
      at 96.3%. During the quarter, we completed renovations on six units in 
      the Greater Cincinnati region. 
   --  Average monthly rent at June 30, 2025 was $1,186 per unit compared to 
      $1,182 per unit at March 31, 2025. 
   --  Maintaining conservative balance sheet and financial flexibility. Net 
      total debt-to-net total assets3 was 33.1% as at June 30, 2025, compared 
      to 33.0% as at December 31, 2024. Total mortgages payable were $124.4 
      million, consisting of nine fixed rate mortgages with a weighted average 
      contractual interest rate of 4.0%. Total amounts outstanding on the 
      revolving credit facility were $16.0 million. Total assets (per condensed 
      consolidated financial statements) were $410.2 million as at June 30, 
      2025. Total assets comprised primarily $399.1 million of investment 
      properties and $6.7 million of cash and cash equivalents. 
   --  Strategic Review. The REIT's strategic review process (the "Strategic 
      Review") to identify, evaluate and pursue a range of strategic 
      alternatives with the goal of maximizing unitholder value remains 
      ongoing. 
 
_______________________________________________ 
(1) Comparative properties NOI is a non-GAAP financial measure. The tables 
included in the Appendices section of this press release reconcile comparative 
properties NOI to net rental income for the three and six months ended June 
30, 2025 and June 30, 2024. For further information on this non-GAAP financial 
measure, please refer to the statements under the heading "Non-GAAP financial 
measures, ratios and supplementary financial measures" in this press release. 
(2) Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit comprises 
FFO (a non-GAAP financial measure) divided by the weighted average number of 
Units. For further information on this non-GAAP ratio, please refer to the 
statements under the heading "Non-GAAP financial measures, ratios and 
supplementary financial measures" in this press release. 
(3) Net total debt-to-net total assets is a non-GAAP ratio. For further 
information on this non-GAAP ratio, please refer to the statements under the 
heading "Non-GAAP financial measures, ratios and supplementary financial 
measures" in this press release. 
 

Dream Residential REIT has not established a definitive timeline to complete the Strategic Review process nor any transaction and no decisions have been reached at this time. As such, the process is subject to unknown variables, including the costs, structure, terms, timing and outcome. There can be no assurance that the Strategic Review will result in any transaction or initiative or, if a transaction or initiative is undertaken, the terms or timing of such a transaction or initiative and its impact on the financial condition, liquidity, and results of operations of the REIT. The REIT does not intend to disclose further developments in connection with the Strategic Review until it is determined that disclosure is necessary, appropriate or required.

"The REIT delivered solid operational and financial performance in Q2 2025," said Brian Pauls, Chief Executive Officer of Dream Residential REIT. "Dream Residential REIT continued to make incremental gains by growing rents and net operating income. We are encouraged by the REIT's performance through the first half of 2025 and will continue to operate the portfolio with a focus on prudent capital allocation, operational efficiency and maintaining a conservative balance sheet."

   --  Q2 2025 net income for the three months ended June 30, 2025 was $0.8 
      million, which comprises net rental income of $8.2 million, fair value 
      adjustments to investment properties of $(1.2) million and fair value 
      adjustments to financial instruments of $(2.3) million, primarily from 
      the revaluation of Class B units of DRR Holdings LLC, a subsidiary of the 
      REIT ("Class B Units" -- together with the units of the REIT ("Trust 
      Units", "Units")). Other income and expenses totalled $(3.9) million. 
 
   --  Total equity (per condensed consolidated financial statements) was 
      $230.1 million as at June 30, 2025, compared to $240.5 million as at 
      December 31, 2024, driven by the year-to-date net loss and distributions 
      paid and payable. 
 
   --  Net asset value ("NAV")4 per Unit was $13.44 as at June 30, 2025, 
      compared to $13.39 as at December 31, 2024. 
 
   --  The REIT declared distributions totalling $0.105 per Unit during Q2 
      2025. 

FINANCIAL HIGHLIGHTS

 
                 Three months ended June 30,     Six months ended June 30, 
                 ---------------------------   --------------------------- 
(in thousands 
unless 
otherwise 
stated)                2025             2024          2025            2024 
--------------   ----------      -----------   -----------      ---------- 
Operating 
results 
Net income 
 (loss)         $       843   $        3,346  $    (7,208)   $       4,162 
FFO(1)                3,499            3,516         6,903           6,963 
Net rental 
 income               8,181            7,984        14,417          14,617 
Comparative 
 properties 
 NOI(10)              6,435            6,362        12,566          12,443 
Comparative 
 properties 
 NOI 
 margin(11)           51.9%            52.6%         51.4%           51.6% 
Per Unit 
amounts 
Distribution 
 rate per 
 Trust Unit     $     0.105   $        0.105  $      0.210   $       0.210 
Diluted FFO 
 per 
 Unit(2)(3)            0.18             0.18          0.35            0.35 
--------------   ----------      -----------   -----------      ---------- 
(See footnotes at end) 
 
 
_______________________________________________ 
(4) NAV per Unit is a non-GAAP ratio. NAV per Unit comprises total equity 
(including Class B Units) (a non-GAAP financial measure) divided by the number 
of Units. For further information on this non-GAAP ratio, please refer to the 
statements under the heading "Non-GAAP financial measures, ratios and 
supplementary financial measures" in this press release. 
 

Net income for Q2 2025 was $0.8 million compared to $3.3 million in Q2 2024 and comprises fair value adjustments to investment properties of $(1.2) million and fair value adjustments to financial instruments of $(2.3) million. FFO for Q2 2025 and the prior year comparative quarter was consistent year-over-year at $3.5 million. Q2 2025 diluted FFO per Unit was $0.18, consistent with the prior year comparative quarter.

Net rental income for Q2 2025 was $8.2 million and compares to $8.0 million in the comparative quarter. The increase in net rental income from the comparative quarter was largely driven by an increase in investment properties revenue. Comparative properties NOI for Q2 2025 was $6.4 million and consistent with the comparative quarter. Comparative properties NOI margin for Q2 2024 was 51.9%, compared to 52.6% in the comparative quarter. Q2 2025 comparative properties NOI includes comparative investment properties revenue of $12.4 million, which increased by $0.3 million from the comparative quarter. The increase was driven by positive blended lease trade-outs and rental premiums from our value-add program. Investment properties operating expenses were $6.0 million for Q2 2025, and $5.7 million for the comparative quarter when excluding the impact of IFRIC 21, "Levies" ("IFRIC 21"), as a result of increased property taxes and utilities, generally offset by lower property insurance expenses.

 
PORTFOLIO INFORMATION                                              As at 
                                        ---------   ---------   -------- 
                                        June 30,    March 31,   June 30, 
                                             2025        2025       2024 
-------------------------------------   ---------   ---------   -------- 
Total portfolio 
Number of assets                               15          15         15 
Investment properties fair value (in 
 thousands)                            $  399,093  $  399,555  $ 396,800 
Units                                       3,300       3,300      3,300 
Occupancy rate -- in place 
 (period-end)                               95.2%       93.3%      94.0% 
Average in-place base rent per month 
 per unit                              $    1,186  $    1,182  $   1,167 
Estimated market rent to in-place 
 base rent spread (%) (period-end)           4.1%        3.0%       8.8% 
Tenant retention ratio(12)                  57.4%       57.5%      59.2% 
-------------------------------------   ---------   ---------   -------- 
(See footnotes at end) 
 

ORGANIC GROWTH

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August 06, 2025 17:01 ET (21:01 GMT)