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Dream Unlimited Corp., a Toronto-based real estate developer, recorded a 20% rise in revenue for the third quarter, reaching CAD 114.6 million compared with CAD 95.7 million in the same period last year. The increase was driven by strong lot and acre sales in Western Canada, higher rental income, and stable asset management performance. The company expects a solid fourth quarter as it prepares to finalize the sale of Dream Residential REIT, which is projected to generate over CAD 35 million in proceeds and improve liquidity.
Dream Unlimited reported third-quarter revenue of CAD 114.6 million, marking a 20% increase from the previous year's CAD 95.7 million. The company attributed this growth to strong demand in its Western Canada land development business, improved income from rental properties, and continued expansion in asset management. Its net margin for the quarter rose to CAD 27.19 million, accounting for roughly 23.7% of revenue, compared with 15.6% during the same period last year. Advertisement
In Western Canada, the development segment saw a notable rise in performance, with net margin climbing to CAD 11.4 million from CAD 7.1 million a year earlier. The improvement came mainly from 137 lot sales, 13 acre sales, and 34 new housing occupancies during the quarter. Dream's land division now holds presale commitments worth CAD 274.7 million for the 2025?2027 period, reflecting a quarterly increase of CAD 71 million, which provides greater revenue visibility for the coming years.
The company's asset management business also continued to grow steadily, maintaining CAD 28 billion in assets under management as of the end of September 2025. Most of these assets are concentrated in the residential and industrial sectors, where the company continues to see stable income streams and investor interest. Dream also benefited from base-fee growth within its asset management platform, which remains a consistent source of recurring revenue.
Rental operations showed improvement as well. Net operating income from income properties increased to CAD 6.5 million from CAD 4.9 million in the prior year, supported by higher leasing activity and solid occupancy levels. The segment's revenue also rose to CAD 13.1 million from CAD 11.1 million, reflecting stronger demand across the portfolio.
A key part of Dream's current strategy is the divestment of Dream Residential REIT, which is expected to close in the fourth quarter of 2025. The transaction is projected to generate more than CAD 35 million in gross proceeds, which the company plans to use to enhance liquidity and support future development projects. Dream ended the third quarter with available liquidity of CAD 327.7 million and total debt maturities of CAD 221 million over the next 12 months, giving it a comfortable financial position.
Looking ahead, the company expects a strong finish to the year, supported by ongoing lot and acre sales and the anticipated completion of the REIT transaction. Dream has reaffirmed that it remains on track to meet its 2025 performance targets. Analysts maintain a ?buy? consensus on the company's shares, with a 12-month median price target of CAD 32.50 about 43.7% higher than the recent closing price of CAD 18.30. The stock is currently trading at around 21 times expected 12-month earnings, up from a P/E of 19 three months ago.
Source Reuters
5th Jun, 2025
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