Dream Industrial REIT Reports Strong Q3 2025 Financial Results

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TORONTO--(BUSINESS WIRE)--Nov 4, 2025--

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 nine months ended September 30, 2025. Management will host a conference call to discuss the financial results on November 5, 2025 at 11:00 a.m. (ET).

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Veghel, Netherlands

“Dream Industrial reported a strong third quarter, delivering 4.3% FFO per Unit growth and 6.4% CP NOI growth. Leasing momentum remains healthy with over 2.7 million square feet transacted across our wholly-owned and managed portfolio since the end of Q2, at rental spreads exceeding the levels achieved in the first half of 2025,” said Alexander Sannikov, President & Chief Executive Officer of Dream Industrial REIT. “We are strengthening the organic growth profile of our portfolio through our development and solar programs, as well as contributions towards our private capital partnerships and execution of ancillary revenue initiatives. We remain focused on surfacing additional value from our capital recycling strategy by continuously upgrading the quality of our portfolio and re-investing proceeds in accretive opportunities.”

HIGHLIGHTS

• Diluted funds from operations (“FFO”) per Unit (1) was $0.27 in Q3 2025, a 4.3% increase when compared to $0.26 in Q3 2024.

• Comparative properties net operating income (“CP NOI”) (constant currency basis) (2)was $103.8 million in Q3 2025, a 6.4% increase when compared to $97.5 million in Q3 2024.

• In-place occupancy was 94.5% as at September 30, 2025, a 40 bps increase when compared to 94.1% as at June 30, 2025. In-place and committed occupancy was 95.4% as at September 30, 2025, a 60 bps decrease when compared to 96.0% as at June 30, 2025.

• Closed on over $107 million of acquisitions in the Trust ’ s wholly-owned portfolio and $460 million of acquisitions in the Trust ’ s private ventures since the beginning of 2025, adding over 2.8 million square feet of GLA to the Trust’s owned and managed portfolio.

• Signed 2.0 million square feet of new leases and renewals across the Trust ’ s wholly-owned portfolio at aweightedaverage rental spread of 28% from the beginning of Q3 2025 until October 31, 2025, driven by 43% spread in Ontario. The rental rate spread in Québec included a fixed rate renewal for 165,000 square feet. Excluding this renewal, rental rate spreads from this period for Québec and Canada were approximately 50% and 38%, respectively.

• Net rental incomewas $98.4 million in Q3 2025, an 8.8% increase when compared to $90.5 million in Q3 2024, driven by 9.7% in Ontario, 12.9% in Western Canada and 13.8% in Europe, excluding disposed investment properties.

• Net income was $45.8 million in Q3 2025, an increase of $32.0 million when compared to $13.8 million in Q3 2024. The net income in Q3 2025 was comprised of net rental income of $98.4 million, fair value loss in investment properties of $16.3 million, fair value loss in financial instruments of $5.4 million and other net expenses of $30.9 million.

• Total assets were $8.5 billion as at September 30, 2025, a 4.2% increase when compared to $8.1 billion as at December 31, 2024, driven by an increase in investment property value due to acquisitions, investments in the Dream Summit JV (3) and the U.S. Fund (4), development projects and foreign exchange translation adjustments, partially offset by the disposition of certain non-core assets.

FINANCIAL HIGHLIGHTS

ORGANIC GROWTH

• Continued strong leasing momentum at attractive rental spreads – From July 1, 2025 through to October 31, 2025, the Trust has transacted 2.0 million square feet of leases across its wholly-owned portfolio at a weighted average rental rate spread of 28.2% over prior or expiring rents.

• In Canada, the Trust signed over 1.4 million square feet of leases, achieving a weighted average rental rate spread to expiry of 33.8% and an average annual contractual rent growth of 2.9%.

• In Europe, the Trust signed over 0.5 million square feet of leases, achieving a weighted average rental rate spread to expiry of 7.8%. All of the leases are fully indexed to local consumer price indices (“CPI”) or have contractual rent steps.
  
  The Trust’s average in-place and committed rents in Canada have grown by 9.3% since the start of this year to September 30, 2025. As at September 30, 2025, estimated market rents exceeded the average in-place and committed rents by 19.9% and 3.9% across the Trust’s wholly-owned portfolio in Canada and Europe, respectively. Along with capturing substantial rental rate growth, the Trust systematically adds contractual annual rental rate escalators to its leases resulting in consistently growing CP NOI (constant currency basis) over time. Currently, the average contractual annual rental rate growth embedded in the Trust’s wholly-owned Canadian portfolio equates to approximately 3%. In the Trust’s wholly-owned European portfolio, approximately 85% of the leases are indexed to the local CPI with the remainder of the portfolio having contractual rent steps.

• Solid pace of CP NOI (constant currency basis) (1) growth – CP NOI (constant currency basis) for the three and nine months ended September 30, 2025 was $103.8 million and $300.1 million, respectively. For the same periods in 2024, CP NOI (constant currency basis) was $97.5 million and $286.2 million, respectively. This represents an increase of 6.4% and 4.9% for the three and nine months ended September 30, 2025, respectively, compared to the prior year comparative periods.
  
  The Canadian portfolio posted year-over-year CP NOI (constant currency basis) growth of 8.5% for the three months ended September 30, 2025, driven by 9.7%, 8.9% and 5.3% CP NOI growth in Ontario, Québec and Western Canada, respectively. Overall, in-place base rents for the Canadian portfolio increased by 11.2% and 11.6% for the three and nine months ended September 30, 2025, respectively.
  
  In Europe, year-over-year CP NOI (constant currency basis) increased by 3.4% and 2.2% for the three and nine months ended September 30, 2025, respectively. The increase was driven by higher rental rates on new and renewed leases, in addition to CPI indexation.

• Healthy occupancy levels – The Trust’s in-place occupancy was 94.5% as at September 30, 2025, an increase of 40 basis points (“bps”) from 94.1% as at June 30, 2025.
  
  The Trust’s in-place and committed occupancy was 95.4% as at September 30, 2025, a slight decrease from 96.0% as at June 30, 2025. The Trust continues to be in active discussions with prospective tenants and it expects significant opportunities to capture strong income growth as spaces are leased.
  
  Since September 30, 2025, the Trust has signed or advanced new lease negotiations on over 1.7 million square feet of existing vacancies across its wholly owned and managed portfolio.

• Growing property management and leasing platform – The Trust’s private ventures have completed approximately $1 billion of acquisitions over the past 24 months. Net property management and leasing margin for the three months ended September 30, 2025 was $2.6 million, consistent with the prior year comparative quarter. Net property management and leasing margin for the nine months ended September 30, 2025 was $8.7 million, an increase of $0.9 million or 12.1% compared to the comparative prior year period, driven by organic revenue growth and the increase in scale of the private ventures in 2025 and 2024.
  
  
• Continued growth in net rental income for the quarter – Net rental income for the three and nine months ended September 30, 2025 was $98.4 million and $284.8 million, respectively, representing an increase of $7.9 million or 8.8%, and $20.8 million or 7.9%, respectively, relative to the comparative prior year periods. For the quarter, year-over-year net rental income increased by 9.7% in Ontario, 12.9% in Western Canada and 13.8% in Europe, slightly offset by a decrease of 1.4% in Québec, excluding disposed investment properties. The increase was mainly driven by strong CP NOI (constant currency basis) growth over the past year and lease-up at the Trust's development projects.

ACQUISITIONS AND DISPOSITIONS UPDATE

During the quarter, the Trust acquired an 88,000 square foot asset located in the Netherlands for a purchase price of $11.6 million. Situated on a 2.5-acre site within a prime European logistics hub, the building’s functional design accommodates a diverse range of occupiers including third-party logistics users. The asset was acquired vacant in September 2025 as part of the Trust’s value-add strategy. In October 2025, the Trust secured a five-year lease commencing in November 2025, resulting in a yield on purchase price of 8%.

See Figure 1, Veghel, Netherlands

As previously disclosed, the Trust also completed the acquisition of a 192,000 square foot asset located in the Greater Toronto Area for a purchase price of $59.9 million during the quarter.

Subsequent to the quarter, the Trust acquired a 130,000 square foot asset located near Osnabrück in Germany for a purchase price of $12.9 million. Strategically located near major highways, transport hubs, ports and airports, the property features a functional design with over 40 foot clear height, LED lighting and existing rooftop solar panels. The 6-acre site includes an additional acre of excess land which can be activated for outside storage or expansion opportunities. The asset was acquired on a short-term sale and leaseback agreement at market rents, delivering a going-in cap rate of over 8%.

See Figure 2, Osnabrück, Germany

“Our recent acquisitions highlight the attractive return profile and the ongoing occupier market strength for infill industrial assets in Canada and in Europe,” said Bruce Traversy, Chief Investment Officer of Dream Industrial REIT. “So far in 2025, we have acquired over $100 million of mid-bay industrial assets, and we expect to stabilize these acquisitions at a weighted average yield of over 7% on our purchase price.”

The Trust continues to actively pursue disposition opportunities as part of its ongoing capital recycling program. Currently, the Trust has over $150 million of dispositions in the pipeline across its wholly-owned portfolio, of which $5 million became firm subsequent to the quarter. The remainder is subject to purchaser due diligence or in negotiations with both user and investor buyers.

During the quarter, the Dream Summit JV disposed of two non-strategic assets in Edmonton, Alberta, totalling $25 million ($2.5 million at DIR’s share) at a 13% premium to IFRS value. Additionally, the Dream Summit JV has waived conditions on a $34 million acquisition ($3.4 million at the Trust’s share) located in Calgary, Alberta.

DEVELOPMENT AND DEVELOPMENT LEASING UPDATE

During the quarter, the Trust substantially completed its 29,000 square foot build-to-suit expansion in the Netherlands. As part of the expansion, the Trust extended the existing tenant’s lease by an additional 10 years with the lease set to commence in Q1 2026.

The Trust continues to see healthy leasing pipeline for its development projects. During the quarter, the Development JV (5) signed a lease for approximately 26% of its 440,000 square foot property in Cambridge, Ontario (110,000 square feet at the Trust’s share) with a multinational automotive manufacturer. The 5-year lease will commence in Q1 2026, increasing the property’s occupancy to over 40% and is in line with the project’s expected 6.6% yield on cost upon stabilization.

Furthermore, the Trust signed a 53,000 square foot lease at its 20-acre Balzac development in Alberta for approximately 15% of the space, lifting the occupancy at the asset to approximately 84%. The 11-year lease commences in Q4 2025 with a starting rent in the mid-$10 per square foot range and 2.5% contractual annual escalators.

Additionally, the Trust is currently engaged in various stages of negotiations for over 2 million square feet of new leases (0.8 million square feet at the Trust’s share) across developments within its wholly-owned portfolio and private ventures in Canada.

VALUE-ADD INITIATIVES UPDATE

The Trust continues to advance its solar program with construction commencement on five new projects across Ontario, Alberta and the Netherlands. During the quarter, the Trust completed the repowering and upgrade of its existing rooftop solar system at an asset in Ottawa, delivering 1.2 megawatts (“MW”) of capacity with an expected yield on cost of 20%. Furthermore, the Trust completed the construction of a project in the Netherlands, adding over 600 panels with an expected yield on cost of 9%.

Over the near to medium-term, the Trust has identified over 120 MW of additional solar generation potential within its portfolio, translating into over $190 million of potential additional investment volume at a targeted yield on cost of over 8%.

Additionally, the Trust continues to advance its strategy to upgrade power capacity at select properties within its portfolio for data centre uses. The Trust is currently conducting due diligence on 13 sites across Canada that could accommodate total critical load of over 600 MW. On two of these sites, the Trust has recently advanced deposits to local utilities to secure 105 MW of power with delivery in phases over the next two to five years, with the potential to secure an additional 40 MW of power at one of these sites in five years. One of these sites is wholly owned by the Trust and one is owned within one of its private joint ventures. The Trust is currently advancing discussions with operators, potential joint venture partners and end users to explore value creation opportunities for these sites.

CAPITAL STRATEGY

The Trust continues to maintain significant financial flexibility as it executes on its strategic initiatives. The Trust’s proportion of secured debt (16) is 5.3% of total assets and represents 13.6% of total debt (17). The Trust’s unencumbered asset pool (11) totalled $6.2 billion as at September 30, 2025, representing 84.2% of the Trust’s total investment properties value as at September 30, 2025.

During the quarter, the Trust closed on its issuance of $200 million of Series G unsecured debentures at an all-in interest rate of 4.287% per annum. The Trust has entered into forward cross-currency interest rate swap arrangements to swap the proceeds to euros to lower the effective fixed interest rate to 3.726% per annum starting December 22, 2025. The net proceeds were utilized to repay existing indebtedness, including to pre-fund the repayment of indebtedness that will mature in December 2025, and for general Trust purposes.

Furthermore, the Trust renewed its universal base shelf prospectus which was scheduled to expire on October 6, 2025 for another 25-month period. Additionally, the Trust renewed its at-the-market equity program, allowing the Trust issue up to $250 million of REIT Units at its discretion.

The Trust ended Q3 2025 with available liquidity (12) of $828.5 million, including $81.9 million of cash and cash equivalents, and 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 was 8.1x and net total debt-to-total assets (net of cash and cash equivalents) ratio was 38.7% as at September 30, 2025.

“Having successfully addressed over 70% of our 2025 debt maturities, we are actively evaluating several refinancing alternatives for our remaining $250 million maturity in December,” said Lenis Quan, Chief Financial Officer of Dream Industrial REIT. “With total available liquidity of over $800 million, we retain strong financial flexibility and are well-positioned to execute on our strategic initiatives.”

CONFERENCE CALL

Senior management will host a conference call to discuss the financial results on Wednesday, November 5, 2025, 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.com.

Dream Industrial REIT is an owner, manager and operator of a global portfolio of well-located, diversified industrial properties. As at September 30, 2025, the REIT has an interest in and manages a portfolio which comprises 340 industrial assets (552 buildings) totalling approximately 73.2 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 and ratios and supplementary financial measures

The Trust’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, 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) 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 and do not have a standardized meaning under IFRS. 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 nine months ended September 30, 2025, dated November 4, 2025 (the “Q3 2025 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 Q3 2025 MD&A and can be found under the section “Supplementary financial measures and ratios and other disclosures”. The Q3 2025 MD&A is available on SEDAR+ at www.sedarplus.com 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 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 solar program, strategic advancement, expected investment, yield and benefit therefrom; the Trust’s strategy to upgrade power capacity at select properties across the portfolio for data centre uses, the timing of utility delivery, results and expected capital intensity related thereto and the status of discussions on potential value creation opportunities;the Trust’s expectations regarding tenant prospects and opportunities to capture income growth as spaces are leased; the Trust’s ability to achieve strong rental growth over time through inclusion of contractual annual rate escalators to its leases and the expected increase in comparative properties NOI as a result thereof; the Trust’s capital allocation priorities and commitments; the Trust’s acquisition pipeline, the expected incremental revenue from the new acquisitions, yield and anticipated benefits therefrom; the status of disposition opportunities; the Trust’s capital recycling program, expected benefits therefrom, use of proceeds and related activities; the status of leasing discussions; debt maturities, refinancings and repayments , swap arrangements and resulting liquidity profile; the Trust's maintenance of significant financial flexibility; 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; the Trust’s development pipeline and its expectations with respect to the opportunity provided by such development pipeline; the Trust’s development, expansion, reposition and redevelopment plans, including the timing of construction and expansion, costs, square footage, unlevered yields and anticipated yields; the Trust’s position to execute on value-add initiatives that improve the growth profile of the business; the issuance of REIT units pursuant to the Trust’s at-the-market equity program 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; 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) for the three and nine months ended September 30, 2025 and September 30, 2024 to net rental income.

Reconciliation of FFO to net income

The table below reconciles FFO for the three and nine months ended September 30, 2025 and September 30, 2024 to net income.

Reconciliation of available liquidity to cash and cash equivalents

The table below reconciles available liquidity to cash and cash equivalents as at September 30, 2025, December 31, 2024 and September 30, 2024.

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 September 30, 2025, December 31, 2024 and September 30, 2024.

Reconciliation of total debt to non-current debt

The table below reconciles total debt to non-current debt as at September 30, 2025, December 31, 2024 and September 30, 2024.

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 equivalent) to total assets as at September 30, 2025, December 31, 2024 and September 30, 2024.

Reconciliation of adjusted EBITDAFV to net income (loss) and normalized adjusted EBITDAFV

The table below reconciles adjusted EBITDAFV to net income (loss) for the three months ended September 30, 2025, December 31, 2024 and September 30, 2024; for the three and nine months ended September 30, 2025, September 30, 2024 and September 30, 2023; and for the years ended December 31, 2024 and December 31, 2023:

View source version on businesswire.com:https://www.businesswire.com/news/home/20251104757384/en/

CONTACT: For further information, please contact:

Dream Industrial REIT

Alexander Sannikov

President & Chief Executive Officer

(416) 365-4106

[email protected]

Lenis Quan

Chief Financial Officer

(416) 365-2353

[email protected]

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY REIT

SOURCE: Dream Industrial REIT

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PUB: 11/04/2025 05:19 PM/DISC: 11/04/2025 05:18 PM

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