DREAM Unlimited Corp.

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 control. That could cause actual results to differ materially from those that are disclosed or implied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is is contained in Dream Unlimited Corp's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available on Dream Unlimited Corp'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, operator. Good morning, everybody, and welcome to DREAM's year-end conference call. Today I'm here with Megan Peloso, who is our chief financial officer, and we also have Jose Maldonado speaking, who is the head of our strategy and planning group, as well as overseas Western Canada, Western Canadian development business. I'll turn it over to them in a minute, but firstly, I just want to mention that over the last few years, I've been very focused on liquidity, I've been concerned about the uncertainty in our environment and tried to make our company safer. The uncertainty is at record levels right now, and we don't know what's going to happen, but I can tell you that we're pretty well positioned. Every politician of every party is promoting ideas that are good for Western Canada. We're not an exporter, but we do get affected by... the overall strength of the Canadian economy, but generally we're positioned quite well. For the year, we had our second highest profits in total dollars. The only year we did better was the year where we sold Dream Global. And if you take out Arapahoe Basin and extraordinary events of prior years, we have the highest ordinary income we've ever had at $2.86 per share. And a lot of the things that we've been working on, we're at the beginning of seeing the benefits. So we've been growing our asset management business, and it's improving, but I think we're going to see more improvement in the future. We've been finishing a lot of apartment buildings, and they're getting leased up. They're contributing a little bit, but they're going to contribute more and more. And each year we have more apartment buildings finished. And in both cases, the improvements that we make in one year, unlike our development business, which is sort of like a lot of one-time earnings, both in asset management and the recurring and the income properties, the money that we start to make the next year will continue to increase indefinitely. So we're pretty excited about the shape of the business. We're pleased with our liquidity. And I think we're kind of surprised that 2025 has started off being such a busy year. But I'll make some final comments. First, I'd like to turn it over to Jose to discuss the business.

Thank you, Michael, and good morning, everyone. I'm going to provide a quick overview of the three key segments in our business that make up 80% to 90% of our net asset value, being Western Canada land, asset management, and income properties. Starting with Western Canada land, we're finishing the year in 2024 with record profits for the land division since we went public in 2013. The division is producing a large amount of free cash flow, and there's great momentum for 2025. We're paying close attention to changes in immigration, tariffs, among other things, but we have decent visibility into the year. As of today, we pre-sold $105 million in revenue for 2025. By the end of next month, we hope to secure another $60 million of pre-sales to builders based on early conversations we're having as of today. That will be a combined 165 million of pre-sales that we hope to show by the next time that we will report. This will make up 80% of our financial targets for the division, and we will have nine months left to go. In 2025, we will begin pre-selling two new neighborhoods in Saskatchewan. In Saskatoon, we will be launching the sales of the Homewood Suburban Center, which is the second neighborhood after Brighton. Most of the revenue will start to show up in 2026. However, in 2025, we sold 13 acres to the city to build a high school and a community center that will be the largest in the province and will be a great amenity to the community and our rental product. We will recognize that sale this year. In Regina, we're close to meeting the last milestone needed to start another new community called Coopertown. We have development approvals in place and we're waiting to hear for approvals on the financing of the infrastructure cost funded by the city to get the community going. There's a decent probability we can start recognizing lot sales in this new neighborhood starting in 2026, and we can begin pre-selling lots at the end of this year. Moving on to asset management. We're making good progress in growing the division. In Q4, we closed on a $1 billion joint venture transaction of apartments in the Netherlands. We also announced a couple weeks ago a new joint venture to purchase existing Canadian multifamily apartments with an institutional partner for up to $2 billion of assets. We will be closing on the first small transaction in this venture in the first half of the year. Our assets under management have grown to $27 billion by the end of 2024, up $3 billion from last year and $17 billion since the end of 2020, after the sale of Dream Global. There continues to be growth in the public vehicles, but the largest driver of growth is the private institutional business, where we're seeing the most traction for new ideas, particularly on the residential and the industrial side. Another area that's picking up steam is our development management business, which is much more lumpy in terms of earnings. We're getting closer and closer to the development of 49 Ontario and Quayside in Toronto, which are large-scale projects where DREAM would earn a development management fee. Dream Office just announced an office conversion project in Calgary, where Dream Unlimited will also be the development manager. Lastly, our income property division, which is doing very well. We're continuing to grow this division, and in time, this could be our largest division as it continues to compound and grow assets through development. Today, we own around $850 million of income properties at our share on a standalone basis in our balance sheet, which excludes the indirect share in our securities or funds. The distillery district in Toronto is about a quarter of that, and the rest is mostly our retail and multifamily income properties in Toronto, Western Canada, and the Capital Region. We continue to see good risk-adjusted returns in developing income properties, especially purpose-built apartments. We have a large pipeline of units in the Capital Region and Western Canada, in land we already own. In the Capital Region, we're looking at starting one new block this year in Quebec, which will own 50% of 220 units. We also began construction last quarter on 250 unit apartments in Ottawa that Dream Unlimited will own 100%. Both projects are financed through the ACLP government program, where we will secure attractive financing rates over a 10 year period. In Saskatoon, where we now have experience building apartments, townhomes, and single family rentals, we really like the economics here. We're developing to a 6% yield, getting permanent takeout at 3.5%, 3.4% as of today, and getting most of our original equity out on takeout. We recently completed two projects in Brighton for a combined 120 apartments and 110 townhouses. We realized $6 to $7 million of development profit in each, surpassing our budget. We developed just north of a 6% yield with land at fair market value, and we expect to realize a development and hold internal rate of return of 20% over 10 years. We're looking at replicating this program in Calgary starting this year. In 2025, we have our most aggressive program where we're looking to start 500 rental units in Western Canada and 70,000 square feet of retail, which we will own 100%. We're looking at approximately a cost base of $210 million to build this, and a development profit of $30 million with land at fair market value or $40 million with land at cost. We won't require a lot of new equity outside of our existing land to develop these projects. Our commercial and income properties are performing well. In the distillery, we did a large renewal and an expansion for 70,000 square feet at grade rents. Our retail in Western Canada and Canary District is also performing pretty well. We're also looking at some dispositions of non-core mostly vacant retail assets to recycle capital and reduce leverage. I'll turn it over to Megan now.