Dream Impact Trust

Good morning, ladies and gentlemen. Welcome to the Dream Impact Trust third quarter conference call for Tuesday, November 4, 2025. Please be advised that all participants are currently in a 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 1 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 meanings 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 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 the securities regulators, including its final long-form prospectus. These filings are also available on Dream Impact Trust's website at www.dreamimpacttrust.ca. Your host for today will be Mr. Michael Cooper, Portfolio Manager. Mr. Cooper, please proceed.

Thank you, Operator, and welcome to the listeners on our third quarter conference call. We're really quite pleased with how the third quarter has gone. We've made quite a bit of progress since our last call and our last results in August. You know, in Ontario, particularly in Toronto, the housing market's quite difficult, and we found some really innovative ways to deal with it and add value by moving projects forward. Now, the difficulty, just to be clear, is really from, you know, that last, you know, decade of poor economic performance in Canada, increasing costs to build both from the private sector as well as from governments. and the limited ability of residents in Toronto to earn sufficient income to afford the economic net rent necessary to fund new developments. DREAM is focused on attacking the affordability issues by partnering with governments to lower our costs with low-interest loans and waivers of development charges, while including affordable apartments in our projects. We're providing a lot more affordable. So the savings we're achieving are getting passed on to... our tenants in the portion of the building that's discounted. While we're one of the original pioneers of these public-private partnerships, they've become very common in our industry recently. Our experience and track record has supported our plans to build viable purpose-built rental projects on our lands. Even when condominiums are not feasible and pure market apartment returns are too low to justify the risk. We await tonight's important budget to see the specific housing initiatives to support providing additional housing and specifically affordable housing. The budget is also important to see how our government's preparing to create an environment for new investments to grow the economy. And we're also waiting to see what the bond markets do tomorrow morning after they've digested the budget. It's great to see that the government sees the problems we're facing and admits them. The steps they take next will have a big impact across the country and also have a significant impact on the short-term success of our business. Even prior to the introduction of these policies, impact has made tremendous progress. I just want to go over a few of the examples of what we've achieved in the last 90 days. Our value-add apartments have been increasing their net operating income. We've had increased turnover, and with turnover we get to move to market rent. It's moving the low rents to higher rents that's driving the net operating income, even though market rents are a little lower than they were at the peak. For our purpose-built rental, we've been very pleased to see significant increases in leasing over the last while, and two of our buildings are approaching stabilization. These two buildings are funded with CMHC ACLP financing, and once we achieve stabilization, provided we have net operating income above that meets or exceeds our pro forma. The loans will become non-recourse, which is a significant accomplishment, and we're looking forward to two of the buildings hitting that soon. In addition, we made a tremendous amount of progress at 49 Ontario. We're currently starting some of the demolition of the office building. It will be fully underway within two weeks. So construction has started, and we expect the CMAC debt to be finalized and advanced within the next 30 to 90 days. This will solidify $75 million of equity in the project, or almost $4 per unit. And as the project progresses, that $4 per unit represented by 49 Ontario could grow to $7 with the profit of the development. With construction costs declining and the way of development charges, the returns are relatively attractive as the savings have offset the decline in rent. So we're very excited to get that project going. In addition, at Keyside, we're advancing with milestones being achieved weekly. We anticipate that by year end, the only milestone left prior to starting construction will be the finalization of the CMHC financing. and the construction should start in the second half of next year. Again, this will lock in the equity value in the land, and it should be another exciting investment with decent returns. We said one of our goals for this year was to decrease our land loans significantly. Our goal was to get to $140 million of land loans. That would basically be two of our big projects, Brightwater Zimmy, plus land loans at former West, Victory Silos, and we want to get rid of Scarborough Junction. We're a little bit behind on that, but we're trending to where we want to be. Brightwater has had quite a few closings so far. We've got another 200 to go. We're very pleased with purchasers' closing ability. So that's pretty exciting. We're generating a fair amount of cash out of that. And we're also getting ready to start the next block, which had sales from a year and a half ago. And that's a 220-condo unit building. And we expect that construction to start within the next couple of months. Otherwise, any new developments on our lands have been delayed, which is what we expected for the last couple of years. At ZIMI, we are quite pleased with the leasing of the residential buildings. and the progress at Odenac. We are approaching the commencement of Block 1 in Gatineau, which is the last building that we had budgeted to start this year, although, again, that's likely to be later to next year. As I was saying, at Brightwater and Zibby, we are developing the units slower because of the softness in the market, but we're making progress. We've also made progress continuing to renew debt as it expires. We also extended the Fairfax to venture out to 2031. And we've entered into a $15 million loan with Dream and are looking to increase that facility prior to year end as we establish what the liquidity requirements are. Over the next few years, we expect to sell a similar amount of properties that we have the last few years. And with the Dream loan, we are well positioned to manage our liquidity over the next few years. Based on our current plan, we expect to have about 90% of our portfolio to be apartments by 2030. with a best-in-class portfolio with low-cost debt, stabilized with sufficient cash flow to meet all of our obligations, and with some cash flow left over. We're aware that the public markets show little interest in impact currently. However, we have excellent assets, which we are making more productive at every level. At this point, I'd like to ask for Derek to do his inaugural conference call address.

Thank you, Michael, and good morning, everyone. In Q3 2025, the Trust recognized a net loss of $10.3 million compared to a net loss of $7.6 million in the prior year quarter. This change was largely driven by deferred tax recoveries and condo occupancies at Brightwater in the prior year quarter, as well as respective fair value adjustments in each period. This was partially offset by earnings from our multifamily assets in Leesa. This includes Voda at Zibby, as well as Birch House and Maple House, both at Canary Landing. For the recurring income segment, same property NOI was $1.7 million, consistent with the prior year. Occupancy remains stable at 95%. With regards to our assets and lease up, we are pleased with the increase in leasing performance over the third quarter. Overall, these assets are approximately 90% leased, up from 75% last quarter. We anticipate these assets will continue to contribute to NOI as they reach stabilization. For the development segment, we reported a net loss of $1.4 million compared to a nominal net loss in the prior year. The results are not directly comparable as the prior year included occupancies at Brightwater and certain fair value adjustments. During Q3 2025, approximately 9% of the 106-unit block at Brightwater Town closed. In combination with Brightwater 1 and 2, we have completed closings for nearly 400 units over the past 12 months. The next block at Brightwater is Mason, which is expected to close by year end. Construction is progressing at Cherry House and Odenack. Combined, these projects are expected to bring nearly 1,500 units to market over the next two years. We are advancing on construction at 49 Ontario and making progress with Quayside. These are significant projects and overall we expect to have positive cash flow once 49 Ontario is completed and stronger cash flows once Quayside is completed, which we anticipate will be in approximately 2030. We have made good progress working through our near and medium term debt maturities. During the quarter, we reduced our outstanding debt position by over $119 million. This included extensions for $84 million of land loans for Zibby and Brightwater without a repayment. Additionally, the construction loan for Brightwater Towns was repaid with proceeds from condo closings. We are working with our partners and lenders to address the remaining debt maturities for this year and into 2026. As noted in our August update, we expected to reduce land loads by $140 million this year. We plan on repaying the land load at 49 Ontario within the next 90 days and have paid off $7 million in land loans related to Zibi. The remainder is largely related to a project where we reduced the debt by one-third, or approximately $15 million, and are working with our partners to repay the remaining debt. We are generally on target, but it may take a little bit longer than we had estimated. As at September 30th, the Trust had cash on hand of $7.6 million. As previously announced, we've entered into an agreement to extend our 2026 convertible debentures, totaling $30 million by five years. The extension is subject to unit holder approval and customary closing conditions. Subsequent to the quarter, the trust entered into an agreement with DREAM to draw up to $15 million in financing with a five-year term. The financing agreement demonstrates DREAM's continued support of the trust and provides it with increased financial flexibility as we work through our upcoming developments and stabilize our completed assets. I will now turn it back to Michael.