Dream Industrial Real Estate Investment Trust

agreement industrial rate third quarter conference call for Wednesday, November 5, 2025. Please be advised that all participants are currently in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the queue, you may press star and then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and then 0. During this call, management of Dream Industrial Rate may make statements containing forward-looking information within the meaning of applicable securities legislation. 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 Dream Industrial Rate control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is contained in Dream Industrial Rate's filings with security regulators, including its latest annual information form and MDNA. These filings are also available on Dream Industrial Rate's website at www.dreamindustrialrate.ca. Your host for today will be Mr. Alexander Sanikov, CEO of Dream Industrial Rate. Mr. Sanikov, you may now go ahead.

Thank you. Good morning, everyone. Thank you for joining us today for Dream Industrial REIT's third quarter 2025 conference call. Here with me today is Linus Kwon, our Chief Financial Officer. In the third quarter, we reported healthy operating and financial results supported by strong leasing spreads and robust growth in CP NOI. For the quarter, we delivered 4.3% year-over-year FFO per unit growth and 6.4% comparative properties NOI growth. driven by a 7.6% increase in in-place rents. We leased out over 250,000 square feet of vacancies and newly completed developments, which lifted our in-place occupancy 40 basis points to 94.5%. Our balance sheet remains strong with conservative leverage and ample liquidity. We're advancing our capital recycling strategy across our platform. During the quarter, we completed the sale of two non-strategic assets within the Dream Summit venture, and we are firm on a disposition within the REITs portfolio. In addition, we are currently underway on approximately $150 million of potential dispositions to user and investor buyers. These dispositions reflect our broader program to enhance portfolio quality and total return profile. as we redeploy this capital into accretive opportunities, including higher quality acquisitions that align with our longer-term portfolio strategy. So far this year, we have acquired over $100 million of infill mid-bay industrial product with a targeted stabilized yield of over 7%. These acquisitions are representative of our broader pipeline and of the asset profile we will continue to pursue. Recently, we completed the acquisition of a 130,000 square foot asset in Germany, The asset was acquired on a short-term sale and leaseback arrangement at market rents, delivering a going-in cap rate of over 8%. The asset is well-located, features functional design, and has existing rooftop solar panels to support our ancillary revenue program. The asset has undeveloped excess land, which can be activated for outside storage or expansion opportunities. In the quarter, we also completed the acquisition of a 90,000 square foot urban logistics asset in the Netherlands. The asset is within a prime logistics node with scarce supply. We acquired the property vacant and leased out the building within the first month of ownership for a five-year term commencing in November at rent succeeding our underwriting. We achieved a yield on purchase price of over 8%. This leasing success is reflective of the healthy leasing and momentum we are seeing across a mid-bay portfolio in Europe. With over 2.5 million square feet of leases signed to date in our European portfolio, We continue to see healthy demand for our assets and continued rental growth in core urban locations. In Canada, the occupier markets remain active and we see sustained demand, in particular for well-located mid-bay infill assets. The leasing spread remained healthy. In our wholly owned portfolio in Canada, we achieved around 40% spreads in Q3 when adjusted for one fixed rate renewal this quarter. This is in line with the spreads we achieved in Q3 2024. We continue to work closely with our tenants as they implement their supply chain adjustments in response to the evolving trade dynamics. Notably, we are encouraged by the level of activity from tenants in the automotive sector. So far this year, across our wholly owned and managed portfolios in Canada and in Europe, we signed over 1.8 million square feet of new leases, renewals, and expansions including on a built-to-suit basis with automotive occupiers led by blue-chip multinational names. And that is at an average spread of over 40% with mid-3% contractual escalators. While the RFP activity has been gradually ramping up from early Q2 2025 and our leasing pipeline remains robust, we are seeing longer decision-making timelines impacting the pace of absorption. And while our in-place occupancy increased this quarter in line with our expectations, longer lease negotiations led to a slight decline in our committed occupancy to 95.4% this quarter. Since the quarter end, however, we have signed or advanced new lease negotiations on over 1.7 million square feet on existing vacancies across our wholly owned and managed portfolios, leading to additional commitments. Turning over to our strategic pillars. Partner capital formation remains a key focus for us as we are looking to grow our private partnerships revenue significantly over the next three to four years. The capital formation environment is improving as investors are shifting their focus from private credit to equity investments. We maintain an active dialogue with potential partners across our operating footprint, including in North America and Europe, and are encouraged by the progress we're making. Our solar program is progressing well, with two completed projects and five new projects underway in the quarter. Over the past year, our near-term pipeline has grown significantly, now representing more than 120 megawatts of additional solar generation potential in feasibility or advanced stages. We're making progress on our strategy to upgrade power capacity at select properties across the portfolio for data center uses. We completed preliminary due diligence for 13 sites across Canada, that can accommodate a critical load of over 600 megawatts. On two of these sites, we advance deposits to local utilities to secure 105 megawatts of power with phase delivery over the next two to five years. Concurrently, we're in active discussions with operators and end users to explore potential value creation opportunities with the generated power capacity. Overall, we are encouraged by the progress across our key initiatives, including leasing, capital recycling, new revenue sources, positioning DIR well for the year ahead. I will now turn it over to Lennis to discuss our financial highlights.

Thank you, Alex. Our business continues to deliver stable and consistent growth. We reported diluted FFO per unit of 27 cents for the third quarter, 4.3% higher than the prior year quarter. The solid year-over-year growth was primarily driven by comparative properties NOI growth of 6.4% for the quarter, led by 8.5% growth in Canada. In addition, lease-up of existing vacancies and newly completed developments contributed to overall FFO growth. Our net asset value at quarter end was $16.74 per unit, reflecting stable investment property values. We continue to actively pursue financing initiatives to optimize our cost of debt and maintain a strong and flexible balance sheet with ample liquidity. We ended Q3 with leverage in our targeted range and net debt to EBITDA ratio of 8.1 times. To date, we have effectively addressed approximately 70% of our 2025 debt maturities. In July, we closed on the issuance of our $200 million Series G unsecured debentures at an all-in rate of 4.29%. We will swap the proceeds to Euros at an effective rate of 3.73% starting December 22, 2025. The proceeds were partly used to repay the outstanding balance on our credit facility with the remainder earmarked towards pre-funding our remaining $450 million maturity in December and for general trust purposes. We continue to evaluate several refinancing options to address the remaining debt maturity balance and are currently observing rates in the high 3% range in the Canadian unsecured market with Euro equivalent debt approximately 20 basis points lower. These rates are about 30 basis points lower than what we were seeing this time last year. We completed the quarter with over $828 million in total available liquidity. Combined with the growing cash flow generated by our business, we are well positioned to fund our value-add and strategic initiatives, including our development pipeline, solar program, and contributing to our private capital partnerships. Our third quarter performance demonstrates the resilience of our business, and we remain confident in our growth trajectory for the balance of the year and into 2026. Despite a slower pace of leasing in the first half of 2025 as a result of trade tensions, we have delivered healthy organic growth supported by increasing in-place rents across our portfolio. Our FFO per unit continued to grow at a strong rate even though we refinanced over 70% of our 2025 debt maturities early. SEP NOI has outpaced the higher interest expense. As our in-place occupancy stabilizes, we anticipate the business to produce even stronger NOI growth driven by contributions from stable to higher occupancy and continued growth of in-place rents. For the remainder of the year, we expect the in-place occupancy to remain stable. With that, our expectation is that the pace of CP&OI growth in the fourth quarter will be consistent with Q3. We also expect that our Q3 FFO per unit run rate to continue into the fourth quarter. As such, adjusting for early refinancing over 2025 debt maturities, we expect the full year results to be aligned with our previously communicated outlook. Looking ahead, we continue to expect a strong pace of FFO per unit growth into 2026. Our FFO growth expectations for 2025 and 2026 continue to be predicated on current foreign exchange rates, leverage levels, and interest rate expectations, as well as expected timing of the lease up of our transitory vacancies. I will turn it back to Alex to wrap up.