TORONTO--(BUSINESS WIRE)--Aug 4, 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 and six months ended June 30, 2026. Management will host a conference call to discuss the financial results on August 5, 2026 at 11:00 a.m. (ET).
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Berlin (Grossbeeren), Germany
Osnabrück, Germany
Ede, Netherlands
Calgary, Alberta
Whitby, Ontario
Cambridge, Ontario
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“Dream Industrial delivered another consecutive quarter of strong results, with over 10% comparative properties NOI growth and 8% FFO per Unit growth. Leasing momentum has been robust, with over 3 million square feet transacted across our wholly-owned portfolio year-to-date at a 21% weighted average rental spread,” said Alexander Sannikov, President & Chief Executive Officer of Dream Industrial REIT. “We have executed on our capital deployment plan for 2026, with over $550 million of acquisitions completed, under contract or in exclusivity since the beginning of the year across our wholly-owned portfolio at accretive returns, including the assets from Chancerygate, which expands our footprint into the U.K. multi-let industrial sector and accelerates our private ventures strategy in Europe. We are excited to announce our first distribution increase since 2013, which is supported by our differentiated strategic growth pillars and strong year-to-date operating and financial performance. This increase is consistent with ourobjective of providing recurring distribution increases as part of growing the free cash flow retained and reinvested into our business.”
HIGHLIGHTS
FINANCIAL HIGHLIGHTS
ORGANIC GROWTH
DEVELOPMENT LEASING UPDATE
The Trust continues to see strong leasing momentum across its development pipeline, both within its wholly-owned portfolio and strategic private ventures. During the quarter, the Trust signed over 370,000 square feet of leases at projects in the Greater Toronto Area (“GTA”) and the Kitchener-Waterloo Corridor (“KWC”) across its broader industrial portfolio. Notably, the Trust signed a 265,000 square foot lease with a blue-chip leader in the global automotive sector in Cambridge, Ontario for a 10-year term, which will bring the property’s occupancy to 100% starting in Q3 2026, achieving an unlevered yield on cost of 6.7%.
Subsequent to the quarter, the Trust entered into a binding lease agreement for 127,000 square feet at its wholly-owned, recently completed GTA East redevelopment project in Whitby. The lease commences in Q4 2026. Additionally, the Trust is in advanced negotiations for another 110,000 square foot lease at the property, which would lift occupancy to over 60%.
See Figure 1, Cambridge, Ontario
See Figure 2, Whitby, Ontario
ACQUISITIONS AND DISPOSITIONS UPDATE
The Trust continues to deploy the proceeds from the $805 million portfolio recapitalization in connection with the formation of the DCI JV.
During the quarter, the Trust completed $115.9 million of acquisitions of urban infill mid-bay industrial assets across its wholly-owned portfolio, totaling 819,000 square feet through acquisitions in Calgary, Germany, and the Netherlands. Subsequent to the quarter, the Trust completed $193.1 million of acquisitions across Germany for the wholly-owned portfolio, totaling 1.1 million square feet, including 11 assets located across major population centres in Germany, including Frankfurt and Berlin.
The Trust has an additional $140 million of acquisitions under contract or in exclusive negotiations across Canada and Europe that are expected to close in Q3 2026 within its wholly-owned portfolio, subject to satisfactory completion of due diligence.
These acquisitions further increase the Trust's exposure to well-located logistics and industrial markets with strong transportation connectivity, embedded rental growth opportunities and attractive long-term fundamentals. Combined, these acquisitions total approximately $450 million in gross asset value and are being acquired at a going-in yield of approximately 6.2% and with a mark-to-market spread of 7.0%.
During the quarter, the Trust completed the previously announced second tranche portfolio sale comprising five industrial assets totaling 1.6 million square feet across Ontario, Québec, and Western Canada to the DCI JV for net proceeds of $353 million.
See Figure 3, Calgary, Alberta
See Figure 4, Ede, Netherlands
See Figure 5, Osnabrück, Germany
See Figure 6, Berlin (Grossbeeren), Germany
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 $660 million of acquisitions. Net property management and other income for the three months ended June 30, 2026 was $4.0 million, representing an increase of $0.9 million or 27.7% compared to the comparative prior year quarter.
During the quarter, the DSI JV acquired a four-building industrial portfolio totaling 618,000 square feet located in the Foothills industrial node in Calgary, Alberta for a purchase price of $81.3 million ($8.1 million at the Trust's share). In addition, the venture completed the sale of a non-strategic asset located in the GTA West, Ontario, for $18.6 million or approximately $519 per square foot during the quarter.
Subsequent to the quarter, the DCI JV acquired a 227,000 square foot building located in Calgary, Alberta for a purchase price of $35.8 million ($3.6 million at the Trust's share).
CHANCERYGATE TRANSACTION AND EUROPEAN VENTURE UPDATE
Subsequent to the quarter, the Trust announced the acquisition of a portfolio of U.K. and European industrial development assets and co-investment interests from Chancerygate Limited ("Chancerygate"), a U.K.-based industrial developer and asset manager that is being acquired by Dream Unlimited Corp. ("Dream Unlimited"). The total consideration is approximately £78 million ($147 million) for the wholly-owned portfolio and co-investment interests across Chancerygate's managed ventures, gross of certain in-place debt on the wholly-owned portfolio, plus an additional £25 million ($47 million) estimated to complete the developments. The Trust expects to realize an unlevered yield on cost of approximately 8% on the wholly-owned projects upon stabilization, and achieve a stabilized cap rate of over 7.5% on the minority stake in the joint ventures. The Trust intends to fund the acquisition through a combination of cash on hand, assumed debt and its unsecured revolving credit facility. The transaction is expected to close in August 2026.
Additionally, together with Dream Unlimited and Chancerygate, the Trust has advanced negotiations to form a new programmatic joint venture with a leading global institutional investor. The joint venture is expected to pursue acquisition and development opportunities in the multi-let industrial (“MLI”) sector across Europe with a target gross asset value of approximately €500 million ($800 million). Refer to the Trust's press release dated July 30, 2026.
See Figure 7, Sussex, UK
See Figure 8, Manchester, UK
See Figure 9, Manchester (Bredbury), UK
See Figure 10, Valencia, Spain
CAPITAL STRATEGY AND DISTRIBUTION INCREASE
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 $5.7 billion as at June 30, 2026, representing 83.3% of the Trust’s total investment properties value as at June 30, 2026.
During the quarter, the Trust repaid its maturing $200 million Series E Green Bonds and closed on the 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. Concurrent with the Series H debenture closing, the Trust entered into forward cross-currency interest rate swap arrangements to swap the proceeds to euros and lowered the effective fixed interest rate to 4.003% per annum.
Following the sale of the second tranche of assets to the DCI JV at the end of the second quarter for net proceeds of $353 million, the Trust partially repaid its unsecured revolving credit facility, with the remaining proceeds used to fund acquisitions completed subsequent to the sale.
The Trust ended Q2 2026 with available liquidity (14) of $746.8 million, including $197.6 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 (10) was 6.6x and net total debt-to-total assets (net of cash and cash equivalents) ratio (9) was 35.8% as at June 30, 2026.
Beginning with its September 15, 2026 distribution, the Trust will increase its distribution by 2.5% to an annualized rate of $0.7175 per Unit.
“We ended the quarter with approximately $750 million of available liquidity, leverage of 35.8%, and lowered our FFO payout ratio to 63%. One of our top priorities is deploying the proceeds of the initial portfolio sale to the DCI JV towards our strategic priorities in a manner that is accretive to FFO per unit and our total return profile. We are well-positioned to continue allocating capital towards initiatives that support the long-term growth of the business and ongoing value creation for our unitholders,” said Lenis Quan, Chief Financial Officer of Dream Industrial REIT.
CONFERENCE CALL
Senior management will host a conference call to discuss the financial results on Wednesday, August 5, 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.
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 June 30, 2026, the REIT has an interest in and manages a portfolio which comprises 348 industrial assets (565 buildings) totalling approximately 75.7 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 and six months ended June 30, 2026, dated August 4, 2026 (the “Q2 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 Q2 2026 MD&A and can be found under the section “Supplementary financial measures and ratios and other disclosures”. The Q2 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 strategic advancement, expected investment, yield and benefit therefrom; the Trust’s expectations regarding tenant prospects; the Trust’s capital allocation priorities and commitments and expected results therefrom; the Trust’s acquisition pipeline, including expected acquisitions under contracts or in negotiations in Canada and Europe that are expected to close in Q3 2026 expected yield (including going in NOI yields and mark-to-market opportunities) and anticipated benefits therefrom; the status of and expected benefits from disposition opportunities; the Trust’s capital recycling program, expected benefits therefrom, use of proceeds and related activities; the status of leasing negotiations and discussions and expected property occupancy increases at specific properties; debt and 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; expectations regarding the Chancerygate transaction, including the terms, timing of closing thereof and the value-add to the REIT’s balance sheet; the Trust’s anticipated funding sources and financing arrangements for the Chancerygate transaction; that the terms of the proposed European MLI joint venture are successfully negotiated and that the venture is established on commercially acceptable terms; 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; ; 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; that FFO per unit continues to grow at a pace sufficient to support annual distribution increases; that utility providers, regulators and relevant counterparts will cooperate to enable the delivery of secured or anticipated power allocations within the anticipated timeframes; 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 tables below reconcile CP NOI (constant currency basis) to net rental income for the three and six months ended June 30, 2026 and June 30, 2025:
Reconciliation of FFO to net income
The table below reconciles FFO to net income for the three and six months ended June 30, 2026 and June 30, 2025:
Reconciliation of available liquidity and cash and cash equivalents
The table below reconciles available liquidity to cash and cash equivalents as at June 30, 2026, December 31, 2025 and June 30, 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 June 30, 2026, December 31, 2025 and June 30, 2025:
Reconciliation of total debt to non-current debt
The table below reconciles total debt to non-current debt as at June 30, 2026, December 31, 2025 and June 30, 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 equivalents) to total assets as at June 30, 2026, December 31, 2025 and June 30, 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 June 30, 2026, December 31, 2025, and June 30, 2025; for the six months ended June 30, 2026, June 30, 2025 and June 30, 2024; and for the years ended December 31, 2025 and December 31, 2024:
Berlin (Grossbeeren), Germany
Osnabrück, Germany
Ede, Netherlands
Calgary, Alberta
Whitby, Ontario
Cambridge, Ontario
