DREAM Unlimited Corp.

Good afternoon, ladies and gentlemen. Welcome to the Dream Unlimited Corp fourth quarter conference call for Wednesday, February 21st, 2024. During this call, management of Dream Unlimited Corp 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 Unlimited Corp's controls. 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 Unlimited Court's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available on Dream Unlimited Court's website at www.dream.ca. Later in the presentation, we will have a question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. Your host for today will be Mr. Michael Cooper, CRO of Dream Unlimited Corp. Mr. Cooper, please go ahead.

Thank you, and welcome, everybody. Dream Unlimited put out its year-end numbers about half an hour ago, and we wanted to use this time to guide you through what 2023 was like, and the changes that we've been making to the company, which are really quite substantial. So I thought we'd start by having Deb Starkman walk through the results, and then I'll talk about some of the strategic initiatives that we've been making. Deb?

Thanks, Michael, and good afternoon. I'll provide a brief overview of our results by operating segment for the quarter. In Q4, our recurring income segment generated revenue and net operating income at $58 million and $26 million, respectively. which was up from $43 million and $14 million in 2022. For the 12-month period, segment revenue and NOI increased by $45 million and $21 million over last year. The increase was primarily driven by the growth in our asset management platform and completed buildings in our multifamily rental pipeline. Included in revenue for the year ended December 31st, is $71 million related to our asset management and development contracts between industrial REITs, between office REITs, between residential REITs, and our partnerships, up from $48 million in 2022. We expect these revenues to continue to grow over time as we complete our development pipeline and activity and actively pursue new asset management opportunities. This quarter in our development segment, we generated revenue and net margin of $50 million and $3 million. down by $75 million and $30 million from the prior year due to the timing of sales in Western Canada, which were primarily recognized in the third quarter of this year compared to fourth quarter in 2022. As of today, we have commitments for an additional 336 lots and 195 acres through 2025, representing the highest level of pre-sales in our history. As disclosed in our supplemental information package, these committed sales represent $186 million in revenue, $148 million of which will be recognized this year. On a consolidated basis, we generated adjusted loss before income taxes of $5 million for the quarter in earnings of $62 million for the year, down by $44 million from last year. The amounts are adjusted for our equity account to pick up for Dream Office REITs and a one-time net gain on land settlement recorded in 2022. The decrease from the 2022 adjusted earnings before tax was due to the fair value losses on investment properties, higher interest expense on variable debt, and fewer lot in acre sales in Western Canada, which were partially offset by higher asset management income. Earnings from development can vary significantly quarter to quarter given seasonality and timing of occupancy. We maintain strong liquidity and manage risk, $325 million in liquidity at December 31st and a conservative leverage ratio of 37% on an adjusted standalone basis. We expect that with the sale of A-Basin, we'll add an additional $150 million in liquidity on closing. As of today, we hold interest in Dream Office REIT, Dream Infectra, and Dream Residential REIT. at 32%, 36%, and 12% in places of senior management holding. We remain committed to maintaining a conservative debt position and may use excess liquidity to purchase additional units through our NCIB, return capital to shareholders, and fund potential new investments. As we noted in our press release, we have increased our annual dividend from $0.50 per share to $0.60 per share effective with the dividend payable on March 28th of this year. On a personal note, I'll be retiring for Dream at the end of March. I'm extremely proud to have been part of Dream during this period of incredible growth and will value the relationships I built at the company. I also want to thank Michael and the board for their strong leadership. I'll now turn the call back over to Michael.