DREAM Unlimited Corp.

Good morning, ladies and gentlemen. Welcome to the Dream Unlimited Corp second quarter 2025 conference call for Wednesday, August 13th, 2025. During this call, management of Dream Unlimited Corp may make statements containing forward-looking information within the meaning of the 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 can 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 are contained in Dream Unlimited Corps filings with the securities regulators, including its latest annual information form and MDNA. These filings are also available on Dream Unlimited Corps' 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 one 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, and good morning to everybody. Today I'm with Megan Peloso, who will provide a CFO report, some comments on the financials in a few minutes. I'm going to start with a little bit of an overview of the business, and afterwards I thought I would try to connect the dots on what the financial benefits are of what we've been doing this year. In the press release, we referred to the approval of 1,200 acres of land in Regina, which is a big deal. This is land that we've been accumulating over years. We have a lot of holdings in Regina. In Regina, many years ago, maybe 10 years ago, they had a heavy storm, and it was obvious that they didn't have enough storm sewers. A lot of this has been corrected, and the infrastructure is going to be in place to start this community. And it'll probably take us 20 years to build up to 1,200 acres, but once we get going, it'll be a pretty steady addition to our activity in Western Canada. In Saskatoon, Similarly, we've made a lot of progress on Homewood. Homewood is 1,100 acres. I think we're going to go through it faster than Cooper Town in Regina. And we've got a school site that we've referred to a couple of times that's going to have 3,400 students, and that's going to get going in 2026. In addition to that, we sold some commercial land. We have a couple hundred acres of commercial in that 1,100 acres. We've got the first 27 sold, which is going to be a game-changer for... the speed that we get through the land on the northwest part of that development. We've already got further calls from potential buyers of other land and the commercial. So what we're going to do is we're going to start with the school site and the commercial, and both are going to grow at the same time. And I think it's going to lead to us getting through a lot of land relatively quickly, which will produce a lot more profits in the next number of years. So those are major, major advancements for the company. in Alpine Park in Calgary. Not major changes, but we're advancing very well and a good absorption there overall and great pricing for homes, great pricing for the land. And we're getting through the 200 acres that we put $93 million in starting 18 months ago, which was the biggest amount of money we've committed to front-ending in the history of the company. And it was a very difficult time to commit that money, but that's proving to be money very well spent. So we've got those three communities that look like they're going to continue for many years to produce income. And I think it's going to lift the income that we generate from Western Canada. So we talk about our three segments, Western Canada, income properties and asset management. Western Canada is shaping up really well to produce increasing income over the future years. On the income properties, we're getting close to 1,000 units, which are completed or under development with most of them finishing by 2026. That's up from like 69 units seven years ago. So that's been a huge change. And we're now building, you know, most of the things that we do out there average about 125 units per building. And now it looks like we're starting to start three a year. So I think that's going to be a pretty consistent pattern. It's going to add up quite a bit. And our income properties in Western Canada, we're building to a six cap. Financing, we just did some financing now between 3.6 and 3.7. So there's a good margin. We're still continuing to see good growth. And I think that Western Canada land will do well. I think our income properties in Western Canada will do well and will do well predictably and will grow quickly. Income properties in Ontario, we've got the distillery district, which is also doing very well. And some of the purpose-built rental, the value-add is doing pretty good. We're getting more turnover. Rental rates have softened in Ontario. But overall, the income properties are doing quite well, led by what we're doing in Western Canada and the distillery district. And our asset management's up $2.5 billion of assets since prior years. And there, what we're looking at doing is increasing the assets under management and increasing the margin. And overall, we think the better days are ahead. Those are the three major areas of our business. It looks in other, which is sort of where we have other things, obviously. We've got the office rate, which looks like it's getting better. Impact Trust, which has some of the most innovative and desirable assets in the whole company, has been struggling in the stock market. It's at the epicenter of some of the issues around the housing crisis and trying to get land into development, which we're making good success at, but it's working very poorly in the stock market, but we're focused on continuing to grow the assets, but it's not a big part of Dream's value. But it's a very important part. And we've got three hotels that two are doing great. One just opened and we're working through that. And we've got three sites that are great. We've got one adjacent to the distillery that will become part of the distillery. It's been held up because of the Ontario line. We've got one, the last site in Canary, which is a great site. You can't start it now. But it's wonderful we got that as part of doing the Panama Athletes Village. So our cost is really just an allocated amount. And we also have Broadview and Eastern, which is like 100 meters north of the new East Harbour GO and subway station for the Ontario line. All of our sites are approved by the Ontario line. So we're not really doing much on it. The interest costs aren't much, but there'll be future growth. But going back to the beginning, The majority of the business, the vast majority of the business value and cash is coming out of Western Canada income properties and asset management, all of which are trending better. Megan, would you like to say a few words?

Thanks, Michael. Good morning, everyone. So with our second quarter results, we've introduced new segment reporting, which is largely in line with how we presented our results as part of our AGM presentation back in June. With the changes we've made, we think it better reflects how we view and manage the business, and we'll continue to work on simplifying disclosures to make them easier to understand. Overall, it was a fairly quiet quarter results-wise, which was in line with our expectations as most of our income will be back-ended this year. I'll walk you through our segmented results and explain how we presented them at a very high level. We presented operational results under the four main headers, asset management, income properties, Western Canada development, and other investments. Within our asset management segment, we've included all of our public-private contracts across the Dream vehicles, which includes the four public vehicles and the six private funds. In the second quarter, the company recognized revenue and net margin of $11.6 million and $6.9 million, respectively. compared to $27.5 million and $22.8 million in the prior year. Now, the comparative figures included performance fees of nearly $16 million related to the Dream U.S. Industrial Fund. Any type of performance or transactional fee typically fluctuates period to period based on the specific contract and milestone being achieved. Our income property division includes all the apartments, retail, and commercial we hold in our master plan communities. as well as in downtown Toronto, such as the Distillery District. As of June 30th, we had $883 million of income properties on DREAM's standalone balance sheet, reflecting only our direct ownership. In the second quarter, income properties generated revenue of $12.2 million and NOI of $6.8 million, up slightly from prior year, largely due to the ongoing lease-up of our purpose-built rentals. With a strong pipeline of apartments under construction today, we expect earnings from this segment to grow as buildings are completed and reach stabilization. Our Western Canada development segment relates to our land and housing division in Alberta and Saskatchewan. In the quarter, we achieved 44 lot sales and 19 housing occupancies, generating a net margin of $1.1 million. Prior year results included the sale of 146 acres of land in Edmonton, which generated revenue of $39.5 million and net margin of $28.1 million. Excluding the sale, margin was actually relatively in line with prior year, though, because of the product mix sold in each respective period. Land development typically has a seasonality component to it, and similar to other years, we expect most of our income from Western Canada to be back-ended in 2025. Lastly, our other investment segment is where we carry unit holdings in Dream Office, Dream Impact Trust, and the Impact Fund, as well as Dream Residential REIT. We also present our land holdings in Toronto and the National Capital Region, more specifically ZB and ODNAC, and the associated G&A costs for our Eastern Canada development teams. In the comparative period, we also included operating results from May Basin, our former ski home, which was sold at the end of 2024. This segment generated $14.8 million in revenue and $4.5 million of negative net margin in the second quarter. Fluctuations in revenue and earnings year-over-year were driven by earnings from the ski hill and condo occupancies from Ivy and Phase II of Riverside last year. Effective with our Q2 reporting, we've also started to fair value our unit holdings in the DREAM entities in our standalone results. Previously, this would have been an adjustment to get from book equity to NAV. So P&L results for this segment would also have included a fair value adjustment for the units in the respective quarters. Lastly, we ended the year with $345 million of liquidity and very modest near-term debt maturities, positioning us very well for the remainder of the year. With that said, I'd be happy to answer any specific segment presentation questions offline once everyone's had time to actually digest the information. So please don't hesitate to reach out. With that, I'll turn the call back over to Michael.