TORONTO–(BUSINESS WIRE)–Dream Unlimited Corp. (TSX: DRM) (“Dream”, the “Company” or “we”) will be providing an investor update along with general business at its Annual General Meeting (the “AGM”) at the TMX Market Centre, 120 Adelaide Street West in Toronto today.
At the AGM, the Company’s senior management team will discuss its key segments, its business plans and strategies and future growth drivers to generate returns and improve the quality of the Company’s income. A copy of the presentation will be archived and available on our website at https://investors.dream.ca. Click on the link for News then click on Events.
As part of the update, the Company included an updated net asset value (“NAV”) per share of $51.64 which compares to standalone book equity per share of the Company of $30.53, each as of March 31, 2025.
About Dream Unlimited Corp.
Dream has an established and successful asset management business, inclusive of $28 billion of assets under management as at March 31, 2025 across four Toronto Stock Exchange (“TSX”) listed trusts, our private asset management business and numerous partnerships. We are a leading developer of exceptional real estate assets across Canada and Europe, including income properties that will be held for the long term as they are completed. We also develop land for sale in Western Canada. Dream has a proven track record for being innovative and for our ability to source, structure and execute on compelling investment opportunities. A comprehensive overview of our holdings is included in the “Summary of Dream’s Assets and Holdings” section of our MD&A for the first quarter of 2025.
Non-GAAP Measures and Other Disclosures
In addition to using financial measures determined in accordance with International Financial Reporting Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), we believe that important measures of operating performance include certain financial measures that are not defined under IFRS Accounting Standards. In this press release, there are references to certain non-GAAP financial measures and ratios, including NAV per share and standalone book equity per share, which management believes are relevant in assessing the economics of the business of Dream. These performance and other measures are not financial measures under IFRS Accounting Standards, and may not be comparable to similar measures disclosed by other issuers. However, we believe that they are informative and provide further insight as supplementary measures of financial performance, financial position or cash flow, or our objectives and policies, as applicable.
Non-GAAP Ratios and Financial Measures
“Dream Impact Trust and consolidation and fair value adjustments” represent certain IFRS Accounting Standards adjustments required to reconcile Dream standalone and Dream Impact Trust results to the consolidated results as at March 31, 2025. Management believes Dream Impact Trust and consolidation and fair value adjustments provides investors useful information in order to reconcile it to the Dream Impact Trust financial statements.
Consolidation and fair value adjustments relate to business combination adjustments on acquisition of Dream Impact Trust on January 1, 2018 and related amortization, elimination of intercompany balances including the investment in Dream Impact Trust units, adjustments for co-owned projects, fair value adjustments to the Dream Impact Trust units held by other unitholders, and deferred income taxes.
“Standalone Book Equity” is a non-GAAP financial measure that represents shareholders’ equity attributable to Dream on a non-consolidated basis. This metric excludes the impact of Dream Impact Trust and consolidation and fair value adjustments. It is intended to reflect how management measures the equity value of the core business operations of Dream.
“Standalone Book Equity per unit” is a non-GAAP ratio and is calculated as Standalone Book Equity divided by the number of Class A subordinate voting shares and Class B common shares of Dream outstanding as of that date. Standalone Book Equity per unit as of March 31, 2025 is calculated below.
“Dream Standalone” is a non-GAAP measure and represents the results of Dream, excluding the impact of Dream Impact Trust’s consolidated results and IFRS Accounting Standards adjustments to reflect Dream’s direct ownership of our partnerships. Direct ownership refers to Dream Unlimited Corp.’s interest in subsidiaries and partnerships and excludes any non-controlling interest in the noted entities based on units held as of the end of the reporting period. The most direct comparable financial measure to Dream standalone is consolidated Dream. This non-GAAP measure is an important measure used by the Company to evaluate earnings against historical periods, including results prior to the acquisition of control of Dream Impact Trust.
“Net asset value” or “NAV” is a non-GAAP financial measure and represents the intrinsic value for the Company excluding the impact of Dream Impact Trust’s consolidated results and IFRS Accounting Standards adjustments to reflect Dream’s direct ownership of our partnerships. Due to the nature of our holdings, NAV is calculated to reflect various factors including the progression of our developments, fair market value of our land holdings, fair value of our unit holdings in Dream Impact Trust, Dream Office REIT and Dream Residential REIT and asset management businesses. The Company believes that incorporating market value adjustments is a more useful measure to value our business that would not ordinarily be captured under IFRS and the Company’s consolidated financial statements which reflect the consolidation of Dream Impact Trust and Dream Impact Fund. In calculating the market value adjustments reflected in NAV, the Company uses certain market assumptions to fair value items held at cost.
The closest IFRS measure to NAV is shareholders’ equity. The table below provides the reconciliation of NAV to shareholders’ equity:
|
In thousands of dollars, except per share and outstanding share amounts |
As at March 31, 2025 |
|
|
Consolidated Shareholders Equity |
$ |
1,485,031 |
|
Less: Dream Impact Trust(i) |
|
(395,641) |
|
Less: Consolidation and fair value adjustments(i) |
|
205,346 |
|
Standalone Book Equity |
|
1,294,736 |
|
Standalone Book Equity per unit |
|
30.53 |
|
Land inventory market value adjustment(ii) |
|
520,046 |
|
Asset management market value adjustment(iii) |
|
552,200 |
|
Dream Group unit holdings market value adjustment(iv) |
|
(176,565) |
|
Total market value adjustment |
|
895,681 |
|
Net asset value |
|
2,190,417 |
|
Shares issued and outstanding |
|
42,414,563 |
|
Net asset value per share |
$ |
51.64 |
|
(i) See above for the definition of Dream Impact Trust and consolidation and fair value adjustments, Dream standalone adjustments and Dream standalone, which are non-GAAP financial measures. (ii) 8,700 acres in Alberta & Saskatchewan at an average fair value of $95,000/acre for land held for development and a 1.4x multiple for land under development. (iii) Value of asset management business based on 16x multiple on net margin. (iv) Units adjusted to trading price as of March 31, 2025 ($17.79 for Dream Office REIT, $3.00 for Dream Impact Trust and $12.65 for Dream Residential REIT). |
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“Net asset value per share” or “NAV per share” is a non-GAAP ratio. NAV per share is calculated as net asset value divided by the number of Class A subordinate voting shares and Class B common shares of Dream outstanding as of that date. We use this ratio to assess the relative value of our businesses on a per share basis. NAV per share as of March 31, 2025 is calculated above.
Contacts
Dream Unlimited Corp.
Meaghan Peloso
Chief Financial Officer
(416) 365-6322
[email protected]
Kim Lefever
Director, Investor Relations
(416) 365-6339
[email protected]
