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Dream Impact Trust reported a net loss of CAD 10.3 million for the third quarter, missing analyst estimates of around CAD 2.84 million. The trust saw its purpose-built rental assets achieve occupancy of over 90%, up roughly 15 percentage points since June. It secured a USD 15 million loan from its parent and extended convertible debentures with Fairfax Financial Holdings Limited to 2031. Development projects such as 49 Ontario Street and the Quayside scheme remain on track, with expectations of boosting earnings in the coming year.
The third-quarter results showed that Dream Impact Trust recorded a net loss of CAD 10.3 million, compared with a loss of CAD 7.6 million in the same period last year. This wider loss was mainly due to timing differences in condominium occupancies, fair value adjustments, and a one-time property tax assessment related to assets at Zibi. Advertisement
Operationally, the trust's purpose-built rental assets including Birch House, Maple House, Aalto II, and Voda have achieved occupancy of more than 90%, marking a 15-point increase since June. These assets, comprising 1,344 units (420 at share), are now close to full stabilization and expected to contribute positively to recurring income in upcoming quarters.
On the financing side, Dream Impact Trust reduced its land-loan exposure by over CAD 100 million during the quarter. It also secured additional funding from its parent, Dream Asset Management Corporation, through a USD 15 million loan facility with a 10% interest rate and a five-year term. As of early November, the trust had drawn USD 2 million from the facility. Alongside this, the company reached an agreement with Fairfax Financial Holdings Limited to extend its CAD 30 million convertible debenture maturity from 2026 to 2031, subject to unitholder approval and standard closing requirements.
Development activities also advanced during the period. The 49 Ontario Street project set to deliver two multi-family buildings totaling 1,226 units (1,103 at share) is ready to begin demolition soon, with initial draws on the previously announced CAD 647.6 million government-affiliated construction loan expected to start shortly. The Quayside development, planned to commence in the second half of 2026, remains a key project expected to enhance the trust's recurring income once operational.
In its recurring income segment, the trust reported a net loss of CAD 6.1 million in the third quarter, slightly better than the CAD 7.0 million loss recorded a year earlier. Growth in net operating income from the rental portfolio helped offset valuation and timing impacts. At the end of the quarter, the trust reported cash holdings of CAD 7.6 million and a debt-to-asset ratio of 41.8%, up marginally from 41.3% at the end of June.
Looking ahead, Dream Impact Trust expects its stabilized rental properties now nearly fully leased to support improved earnings through the next year. However, it remains cautious about the impact of development schedules and broader market conditions on short-term results.
Source Reuters
5th Jun, 2025
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