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Dream Industrial Real Estate Investment Trust (REIT) recorded an increase in its third-quarter net rental income and funds from operations (FFO), supported by robust leasing performance and strategic acquisitions. The company achieved an 8.8% year-on-year rise in net rental income and a 4.3% increase in diluted FFO per unit. Over USD 107 million worth of acquisitions were completed in its wholly-owned portfolio, while leasing activity covered more than 2.7 million sq ft. Dream Industrial also reported a strong liquidity position exceeding USD 800 million.
Dream Industrial REIT reported an improved financial performance for the third quarter, driven by active leasing, portfolio expansion, and organic growth initiatives. The company's net rental income rose by 8.8% compared to the same period last year, while diluted funds from operations per unit increased by 4.3%. According to Chief Executive Officer Alexander Sannikov, leasing activity surpassed earlier 2025 levels, with more than 2.7 million sq ft transacted at higher rental spreads. Advertisement
During the quarter, Dream Industrial completed acquisitions exceeding USD 107 million in its wholly-owned portfolio, adding 2.8 million sq ft of gross leasable area. The company also continued to develop its solar and private capital partnership programmes, further supporting portfolio diversification and long-term returns.
For the period, the REIT's rental income stood at CAD 98.42 million, net income at CAD 45.82 million, and funds from operations at CAD 78.01 million. The company reiterated its strategy of capital recycling to enhance portfolio quality and maintain financial flexibility, with liquidity exceeding USD 800 million.
Analysts have maintained a positive outlook on the company, with the average rating being 'buy'. Ten analysts have recommended either a 'strong buy' or 'buy', with no 'hold' or 'sell' recommendations. The peer group of commercial REITs also holds a similar 'buy' consensus. Wall Street's median 12-month price target for Dream Industrial is CAD 14.00, about 13.6% higher than its recent closing price of CAD 12.10. The stock is currently trading at 12 times its projected earnings for the next 12 months, compared with a price-to-earnings ratio of 11 three months ago.
Dream Industrial's third-quarter performance reflected solid leasing momentum, well-executed acquisitions, and disciplined financial management. The company's focus on capital recycling and organic growth initiatives has strengthened its balance sheet and improved portfolio resilience. With substantial liquidity and a consistent analyst 'buy' sentiment, Dream Industrial is positioned to sustain its growth trajectory through continued leasing strength and expansion within key industrial markets.
Source - Reuters
5th Jun, 2025
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