TORONTO--(BUSINESS WIRE)--May 5, 2026--
Dream Industrial Real Estate Investment Trust (DIR.UN-TSX) or (the “REIT” or “Trust” or “Dream Industrial REIT” or “DIR” or “we” or “us”) today announced its financial results for the three months ended March 31, 2026. Management will host a conference call to discuss the financial results on May 6, 2026 at 11:00 a.m. (ET).
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“Dream Industrial kicked off 2026 with strong performance, delivering 9% CP NOI growth driven by healthy leasing activity and continued execution of our asset management initiatives. Our strong organic growth drove solid year-over-year FFO per unit growth even as our balance sheet remained underutilized this quarter, providing us with meaningful dry powder to deploy into accretive opportunities,” said Alexander Sannikov, President & Chief Executive Officer of Dream Industrial REIT. “In line with our previous communications, we have returned nearly $100 million of capital to unitholders through the NCIB, and we have a strong pipeline of high-growth opportunities across our target markets. At the same time, we are focusing on scaling our private ventures with $390million of acquisitions already completed to date or in exclusivity, while continuing to explore opportunities in new markets. With all of our growth drivers intact, we are confident in the ongoing resilience of our business.”
HIGHLIGHTS
FINANCIAL HIGHLIGHTS
ORGANIC GROWTH
As at March 31, 2026, estimated average market rents across the Trust’s wholly-owned portfolio in Canada and Europe exceeded the average in-place and committed rents for remaining expiring 2026 leases by 29.7% and 24.9%, respectively.
Along with capturing substantial rental rate growth, the Trust embeds contractual annual rental rate escalators to drive consistent CP NOI (constant currency basis) growth, averaging approximately 3% in its wholly-owned Canadian portfolio, while approximately 85% of European leases are indexed to the local CPI, with the balance featuring contractual rent steps.
ACQUISITIONS AND DISPOSITIONS UPDATE
During the quarter, the Trust acquired a 163,000 square foot asset located in the Netherlands for a purchase price of $23.3 million. The property is situated on a 5-acre site within a well-established business park, benefitting from strong surrounding infrastructure and modern industrial zoning. The location supports continued commercial growth and functions as a key logistics hub, offering excellent highway connectivity and access to multimodal transportation networks. The asset was acquired vacant as part of the Trust's value-add strategy and is expected to deliver a NOI yield of approximately 8% on purchase price upon stabilization.
See Figure 1, [Den Bosch, the Netherlands]
The breadth and quality of the Trust’s pipeline of opportunities continue to grow. Currently, the Trust has over $500 million of acquisitions firm or under exclusivity across Canada and Europe, providing significant opportunity to high-grade its portfolio through disciplined capital deployment.
The Trust continues to actively pursue disposition opportunities as part of its ongoing capital recycling program. During the quarter, the Trust completed the previously announced first tranche portfolio sale comprising six industrial assets (22 buildings) totalling 1.9 million square feet across Ontario, Québec and Western Canada to the newly formed DCI JV for net proceeds of $375 million. The Trust expects to close the second tranche sale comprising the remaining five assets totalling 1.6 million square feet to the DCI JV in mid-2026.
Additionally, the Trust completed the previously announced sale of a non-strategic asset located in the GTA West, Ontario, for $17.5 million or approximately $374 per square foot during the quarter.
STRATEGIC PRIVATE VENTURES UPDATE
The Trust continues to actively deploy capital alongside its partners, adding high-quality industrial product within its private ventures while further scaling its property management and leasing platform. Since the beginning of 2025, the Trust’s private ventures have completed over $600 million of acquisitions. Net property management leasing margin for the three months ended March 31, 2026 was $3.4 million, representing an increase of $0.4 million or 14.4% compared to the comparative prior year quarter.
During the quarter, the Trust’s private ventures acquired two assets totalling 283,000 square feet located in the Greater Toronto Area (“GTA”) and Calgary for a total purchase price of $52.6 million ($5.3 million at the Trust’s share), including the DCI JV’s first acquisition in addition to the initial portfolio.
Subsequent to the quarter, the DSI JV acquired a four-building industrial portfolio totalling 618,000 square feet located in the highly desirable Foothills industrial node in Calgary, Alberta for a purchase price of $81.3 million ($8.1 million at the Trust’s share).
DEVELOPMENT UPDATE
During the quarter, the Trust completed its build-to-suit expansion and refurbishment project in the Netherlands, adding 125,000 square feet of high-quality distribution space. As part of the arrangement, the existing tenant extended its lease by an additional ten years and the project is now fully contributing to the Trust’s NOI, delivering an unlevered yield on cost of 7%.
See Figure 2, [Rendering of completed intensification project in Helmond, the Netherlands]
CAPITAL STRATEGY
As previously announced, in connection with the formation of the DCI JV and the Trust's $805 million portfolio recapitalization, the Trust has deployed a portion of the proceeds towards unit buybacks. Since the beginning of the year and up to May 1, 2026, the Trust has purchased for cancellation 7.5 million REIT units under its NCIB program at a weighted average of $12.95 per REIT Unit for a gross amount of $97.2 million.
The Trust continues to maintain significant financial flexibility as it executes on its strategic initiatives. The Trust’s proportion of secured debt (18) was 5.5% of total assets and represents 14.9% of total debt (19). The Trust’s unencumbered asset pool (13) totalled $5.9 billion as at March 31, 2026, representing 84.0% of the Trust’s total investment properties value as at March 31, 2026.
The Trust ended Q1 2026 with available liquidity (14) of $604.9 million, including $35.9 million of cash and cash equivalents, and with an additional $250 million that could be exercised through the accordion on its unsecured revolving credit facility. The Trust’s net total debt-to-normalized adjusted EBITDAFV ratio was 7.3x and net total debt-to-total assets (net of cash and cash equivalents) ratio was 36.8% as at March 31, 2026.
Subsequent to the quarter, the Trust repaid its $200 million Series E Green Bonds that matured on April 13, 2026 by temporarily utilizing its unsecured revolving credit facility. On April 21, 2026, the Trust closed on its issuance of $200 million of Series H unsecured debentures at an all-in interest rate of 4.150% per annum, maturing on April 22, 2031. Concurrently, the Trust entered into forward cross-currency interest rate swap arrangements to swap the proceeds to euros to lower the effective fixed interest rate to 4.003% per annum. The net proceeds were utilized to reduce the outstanding balance on its unsecured revolving credit facility, including indebtedness incurred in connection with the repayment of the Series E Green Bonds.
“With over $600 million of liquidity at the end of the first quarter plus the upcoming second tranche sale of assets to the DCI JV, we have ample financial flexibility," said Lenis Quan, Chief Financial Officer of Dream Industrial REIT. “We have completed nearly $100 million of unit buybacks so far this year, and we continue to take a disciplined approach to allocate capital towards strategic initiatives that enhance the long-term growth profile of our business.”
CONFERENCE CALL
Senior management will host a conference call to discuss the financial results on Wednesday, May 6, 2026, at 11:00 a.m. (ET). To access the conference call, please dial 1-800-715-9871 in Canada or 647-932-3411 elsewhere. To access the conference call via webcast, please go to Dream Industrial REIT’s website at www.dreamindustrialreit.ca and click on the link for News, then click on Events. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call.
ANNUAL AND SPECIAL MEETING OF UNITHOLDERS
Dream Industrial REIT welcomes investors to its annual and special meeting of unitholders at the TMX Market Centre, 120 Adelaide Street West, Toronto, Ontario M5H 1T1 on Wednesday, June 3, 2026 at 10:00 a.m. (ET). The audio webcast and digital replay can be accessed by going to www.dreamindustrialreit.ca, clicking on news and selecting events.
Other information
Information appearing in this press release is a select summary of financial results. The condensed consolidated financial statements and management’s discussion and analysis for the Trust will be available at www.dreamindustrialreit.ca and on www.sedarplus.ca.
Dream Industrial REIT is an owner, manager and operator of a global portfolio of well-located, diversified industrial properties. As at March 31, 2026, the REIT has an interest in and manages a portfolio which comprises 343 industrial assets (558 buildings) totalling approximately 74.1 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S. The REIT’s objective is to deliver strong total returns to its unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by its high-quality portfolio and an investment grade balance sheet. Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. For more information, please visit www.dreamindustrialreit.ca.
FOOTNOTES
Non-GAAP financial measures, ratios and supplementary financial measures
The Trust’s condensed consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). In this press release, as a complement to results provided in accordance with IFRS Accounting Standards, the Trust discloses and discusses certain non- GAAP financial measures and ratios, including FFO, diluted FFO per Unit, FFO payout ratio, CP NOI (constant currency basis), total debt, net total debt-to-total assets (net of cash and cash equivalents) ratio, net total debt, total assets (net of cash and cash equivalents), net total debt-to-normalized adjusted EBITDAFV ratio, adjusted EBITDAFV, normalized adjusted EBITDAFV – annualized, interest coverage ratio, available liquidity, total equity (including LP B Units), secured debt as a percentage of total debt, and NAV per Unit as well as other measures discussed elsewhere in this press release. These non-GAAP financial measures and ratios are not defined by IFRS Accounting Standards and do not have a standardized meaning under IFRS Accounting Standards. The Trust’s method of calculating these non-GAAP financial measures and ratios may differ from other issuers and may not be comparable with similar measures presented by other issuers. The Trust has presented such non-GAAP financial measures and ratios as Management believes they are relevant measures of the Trust’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the management’s discussion and analysis of the financial condition and results from operations of the Trust for the three months ended March 31, 2026, dated May 5, 2026 (the “Q1 2026 MD&A”) and can be found under the sections “Non-GAAP Financial Measures" and "Non-GAAP Ratios” and respective sub-headings labelled “Funds from operations (“FFO”)”, "Diluted FFO per Unit", “FFO payout ratio”, "Comparative properties net operating income (“CP NOI”) (constant currency basis)”, “Net total debt-to-total assets (net of cash and cash equivalents) ratio”, “Net total debt-to- normalized adjusted EBITDAFV ratio (years)”, and “Interest coverage ratio”, “Available liquidity”, "Total equity (including LP B Units or subsidiary redeemable units"), “Total debt”, “Net asset value (“NAV”) per Unit”, “Net total debt and total assets (net of cash and cash equivalents)”, “Adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments (“Adjusted EBITDAFV”) and Normalized adjusted EBITDAFV – Annualized”. The composition of supplementary financial measures and ratios included in this press release have been incorporated by reference from the Q1 2026 MD&A and can be found under the section “Supplementary financial measures and ratios and other disclosures”. The Q1 2026 MD&A is available on SEDAR+ at www.sedarplus.ca under the Trust’s profile and on the Trust’s website at www.dreamindustrialreit.ca under the Investors section. Non-GAAP financial measures and ratios should not be considered as alternatives to net income, net rental income, cash flows generated from (utilized in) operating activities, cash and cash equivalents, total assets, non-current debt, total equity, or comparable metrics determined in accordance with IFRS Accounting Standards as indicators of the Trust’s performance, liquidity, cash flow, and profitability.
Forward-looking information
This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding the Trust’s objectives and strategies to achieve those objectives; the Trust’s strong pipeline of high-growth opportunities across the Trust’s target markets; the Trust’s focus on scaling private ventures, exploration of opportunities in new markets, and the Trust’s confidence in the ongoing resilience of the business; the Trust’s strategic advancement, expected investment, yield and benefit therefrom;the Trust’s expectations regarding tenant prospects and opportunities to capture income growth as spaces are leased; the Trust’s ability to achieve strong rental growth over time through inclusion of contractual annual rate escalators to its leases and the expected increase in comparative properties NOI as a result thereof; the Trust’s capital allocation priorities and commitments; the Trust’s acquisition pipeline, the expected incremental revenue from the new acquisitions, yield and anticipated benefits therefrom; the status of and expected benefits from disposition opportunities and the DCI JV, including the expected close on the second tranche of assets; the Trust’s capital recycling program, expected benefits therefrom, use of proceeds and related activities; the status of leasing discussions; debt maturities, refinancings and repayments, swap arrangements and resulting liquidity profile; the Trust's maintenance of significant financial flexibility and the resulting ability to execute on strategic initiatives; the Trust’s goal of delivering strong total returns to its unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by its high-quality portfolio and an investment grade balance sheet; the performance and quality of its portfolio; the Trust’s development pipeline and its expectations with respect to the opportunity provided by such development pipeline; the Trust’s active deployment of capital alongside its partners, adding high-quality industrial product within its private ventures while further scaling its property management and leasing platform; the Trust’s development, expansion, reposition and redevelopment plans, including the timing of construction and expansion, costs, square footage, unlevered yields and anticipated yields; the Trust’s position to execute on value-add initiatives that improve the growth profile of the business; the Trust’s disciplined approach to allocate capital towards strategic initiatives that enhance the long-term growth profile of the business; and similar statements concerning anticipated future events, financials, estimated market rents, future leasing activity, the ability to lease vacant space, results of operations, performance, business prospects and opportunities, and the real estate industry in general.
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 the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; employment levels; mortgage and interest rates and regulations; inflation; risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates; risks that the Trust’s operations may be affected by adverse global market, economic and political conditions and other events beyond our control, including risks related to the imposition of duties, tariffs and other trade restrictions and their impacts; uncertainties around the timing and amount of future financings; uncertainties surrounding public health crises and epidemics; geopolitical events, including disputes between nations, war and international sanctions; the financial condition of tenants; leasing risks, including those associated with the ability to lease vacant space; rental rates and the strength of rental rate growth on future leasing; and interest and currency rate fluctuations. The Trust’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, including that future market and economic conditions will occur as expected and that geopolitical events, including disputes between nations or the imposition of duties, tariffs, quotas, embargoes or other trade restrictions (including any retaliation to such measures), will not disrupt global economies; inflation and interest rates will not materially increase beyond current market expectations; conditions within the real estate market remain consistent; competition for acquisitions remains consistent with the current climate; and the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamindustrialreit.ca.
Appendices
All dollar amounts in the Appendices are presented in thousands of Canadian dollars, except for per square foot amounts, per Unit amounts, or unless otherwise stated.
Reconciliation of CP NOI (constant currency basis) to net rental income
The table below reconciles CP NOI (constant currency basis) to net rental income for the three months ended March 31, 2026 and March 31, 2025.
Reconciliation of FFO to net income
The table below reconciles FFO to net income for the three months ended March 31, 2026 and March 31, 2025.
Reconciliation of available liquidity and cash and cash equivalents
The table below reconciles available liquidity to cash and cash equivalents as at March 31, 2026, December 31, 2025 and March 31, 2025.
Reconciliation of total equity (including LP B Units) to total equity (excluding LP B Units)
The table below reconciles total equity (including LP B Units) to total equity (excluding LP B Units) as at March 31, 2026, December 31, 2025 and March 31, 2025.
Reconciliation of total debt to non-current debt
The table below reconciles total debt to non-current debt as at March 31, 2026, December 31, 2025 and March 31, 2025.
Reconciliation of net total debt to non-current debt and total assets (net of cash and cash equivalents) to total assets
The table below reconciles net total debt to non-current debt and total assets (net of cash and cash equivalent) to total assets as at March 31, 2026, December 31, 2025 and March 31, 2025.
Reconciliation of adjusted EBITDAFV to net income (loss) and normalized adjusted EBITDAFV
The table below reconciles adjusted EBITDAFV to net income for the three months ended March 31, 2026, December 31, 2025, March 31, 2025, March 31, 2024 and years ended December 31, 2025 and December 31, 2024.
Rendering of Completed Intensification Project in Helmond, the Netherlands
Den Bosch, the Netherlands
