Dream Impact Trust

Good morning, ladies and gentlemen. Welcome to the Dream Impact Trust first quarter conference call for Tuesday, May the 6th, 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 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 Impact Trust 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 the trust's 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 the trust's filings with securities regulators, including its final long-form perspective. These filings are also available on Dream Impact Trust's website at www.dreamimpact.com. dreamimpacttrust.ca. Your host for today will be Mr. Michael Cooper, Portfolio Manager. Mr. Cooper, please proceed.

Thank you, operator. Good morning, everybody. Today I'm here with Megan Peloso, who will provide comments in a few minutes, and after she speaks, I'd like to get into some specifics on the company. But first, you know, we're operating in an environment that certainly is chaotic and uncertain. The federal government has been re-elected and in some ways that's good for our policies that Impact Trust relies on. So that's good news. What I would say is we keep hearing about a housing crisis and yet all the new purpose-built rentals are leasing up slower than we would have expected and we're trying to figure out how do all these things reconcile. And I think the point is Canada doesn't have enough cheap residences. I'd say that we probably have tremendous demand, let's say in Toronto, for apartments that are between $1,000 and $1,500, but we're leasing them at $2,500 to $2,700 when you build a new market building. So I think that is a real problem. But when we get to new buildings, they're leasing up. They're leasing up a little bit slower. We're making progress on everything. But we're really in quite an odd housing market. Our value-add apartments are performing very well, consistent or better than budget for the first quarter. We're seeing a little bit more turnover, and then we get big step-ups, and that kind of offsets maybe the rental rate increases that we hoped for, but the numbers are pretty good, or better than we anticipated. On the purpose-built rental, you know, we're getting our buildings finished. We got quite a few buildings in lease-up. They're excellent buildings. They're leasing up slower than we had originally budgeted, but we've got great financing on them for the most part. And they're working out pretty good. But what it means is things are tough. It's hard to get things done that we would have thought would be easy. After Megan speaks, I want to talk about some specifics about what we're starting. But overall, the company is doing very poorly in the stock market. It's doing a little bit better in real life. What we're doing is we're planning out the next five years for what the company's going to look like in 2030 and how we're going to get there, for the most part, relying on impact trust-owned resources. I'll give more insight into that, but first, Megan, do you want to speak a little bit about how the quarter went?

Sure. Thank you, Michael. Good morning, everyone. In the first quarter, the trust recognized a net loss of $3.8 million compared to $5.4 million in the prior year. The improvement in earnings was driven by fluctuations in fair value adjustments, earnings from condo occupancies at Brightwater, and income from multifamily assets in the lease-up phase, including Maple House, Alto II, and Vota. Partially offsetting this was the gain on sale of a passive investment last year and reduced NOI from office properties. As it relates to our recurring income segment, we're seeing good growth from our multifamily portfolio. NOI in the period was $2.6 million compared to $1.5 million in the prior year, largely due to ongoing lease-up at residential blocks of Zibby and Canary Landing. As of May 1st, Maple House and Alto II were both approximately 80% leased. Birch House, which began leasing last quarter, is 26% leased to date, and we expect to move Birch House from the development segment to recurring income later this year when construction is substantially complete. Construction is still well underway at Cherry House, and we expect leasing for the first of the three buildings to commence in the summer of this year. With the 855 units at Cherry House and 600 units at Odenack under construction, the Trust will add a further 1,400 units at 100% to our multifamily portfolio by the end of 2027. As it relates to our development segment, the Trust generated income of $2.1 million compared to $0.3 million in the prior year. A lot of the increase in earnings was due to occupancy income at Brightwater, as roughly three-quarters of units at the Mason occupied in the first quarter, with final closings expected later this year. Additionally, the increase in earnings from this segment was from the composition of fair value adjustments year-over-year, partially offset by a gain on a passive asset sale last year. Now, on the liquidity front, as of March 31st, the Trust had total cash on hand of $8.8 million and received gross proceeds of $6.2 million from selling our interest in City Block 204 to DAM subsequent to the quarter. In addition, as part of that sale, $5.4 million of infrastructure debt was repaid at the trust share, which reduces the trust's land loan exposure and further supports our liquidity objectives. In addition to the ACLP financing secured for 49 Ontario in the quarter, we continue to make good progress on our upcoming debt maturities. Subsequent to quarter end, we repaid a $47 million construction loan at share. and replace it with takeout financing. And we currently have another $85 million of infrastructure loans at advanced lender discussions that should be extended in short order. With that, I'll turn the call back over to Michael.