DREAM Unlimited Corp.

Thank you for standing by. Welcome to the Dream Unlimited Corp. 3rd Quarter 2023 Results Conference Call for Wednesday, November 15, 2023. 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 question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. 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 Corps' 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 Unlimited Corps' filings with securities regulators. such as its latest annual information form and MD&A. These filings are also available on Dream Unlimited Corp's website at www.dream.ca. Your host for today will be Mr. Michael J. Cooper, President and Chief Responsible Officer of Dream Unlimited Corp. Mr. Cooper, please proceed.

Thank you, Operator. Good afternoon, everybody. Normally, we'll have a conference call in the third quarter, but with so much volatility, we thought it was a good idea, and we didn't have a chance to tell you more about our business and answer questions. Also, this quarter, we took the information from our September 6th investor day and created our first effort on a supplemental information package. We would like your feedback as we'll continue that to the year end, and then I think we'll advance it further for Q1, so any feedback is appreciated. To start, Deb will speak about our results. I'll give some commentary, and then we'd love to answer questions afterwards. Deb?

Thanks, Michael, and good afternoon. So as Michael said, yesterday we published our supplemental information package for the first time in an effort to provide investors with better insight into how we evaluate our various business lines. The supplement is a work in progress, and we'll continue to add disclosures in future quarters and welcome feedback on the content. Now I'll provide a brief overview of our results by operating segment for the quarter. In the third quarter, in our recurring income segment, we generated revenue and net operating income of $44 million and $13 million, respectively, from $34 million and $10 million in 2022. Year-to-date, segment revenue and net operating income increased by $30 million and $10 million over last year. The increase was primarily driven by growth in our asset management platform and completing buildings in our multifamily rental pipeline. Included in revenue for the nine-month end of September 30th is $47 million related to our asset management and development contract with Dream Industrial REIT, Dream Office REIT, Dream Residential REIT, and our partnership, up from $36 million in 2022. We expect these revenues to continue to grow over time as we actively pursue new asset management opportunities. This quarter in our development segment, we generated revenue and net margin of $89 million and $16 million, respectively, up by $68 million and $18 million from the prior year. Q3 results were largely driven by the timing of our sales in Western Canada, as we achieved 400 lot sales this quarter. As of today, we have commitments for an additional 66 lots and five acres for fourth quarter, in addition to 231 lots and 71 acres already committed through 2025. As disclosed in our supplemental information package, these committed sales represent $117 million in revenue. On a consolidated basis, we generated adjusted earnings before income taxes of $4 million for the quarter and $66 million year-to-date. Down by $67 million from the nine months ended, September 30th, 2022. The amounts are adjusted for equity accounts pickup of Dream Office REIT and a one-time net gain on land settlement that was recorded in 2022. The decrease from year-to-date 2022 adjusted earnings before tax was due to fair value losses on investment properties, higher interest expense on variable rate debt, and prior year occupancies at Canary Commons. Earnings for development can significantly vary quarter to quarter. given seasonality and the timing of occupancy. This was partially offset by strong lot sales activity in Western Canada and higher base fees from our growing asset management platform. We maintained a strong liquidity and managed risk, with $305 million in liquidity and conservative leverage ratio of 36% on an adjusted standalone basis. As of today, we hold interest in Dream Office REIT, Dream Impact Trust, and Dream Residential REIT, at 33%, 35%, and 12% respectively, inclusive of senior management holdings. On an annualized basis, we received $16.5 million in cash distributions from the trust. As of November 13th, the market value of our interest in the trust is $148 million, approximately 20% to Trane's current market cap. We remain committed to maintaining a conservative debt position and may use excess liquidity to purchase additional units through our NCIB and fund potential new investments. And now I'll turn it back over to Michael.