Dream Impact Trust

Welcome to the Dream Impact Trust fourth quarter conference call for Wednesday, February 18, 2026. 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 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. 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 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. Good morning. I'm here with Derek Lau, the CFO. We put out a press release on January 7th with a business update. And although we're quite busy and a lot of efforts, there hasn't been that much of an update since then. I guess the key thing is 49 Ontario, which we've talked about quite a bit, and I guess we've talked about it all of 2025 and by the end of the year or early into this year, We had accomplished everything we had set out for, including having a 20 year debt, which really helps us manage through the cycles. And we got the development charge waiver, and we're really pleased to be one of the first of the groups that got development charge waivers to begin construction. And although there's a softening rental market between the HST savings, the development charge savings, and what we're seeing in construction costs, which is a significant decrease I think our overall cost will be down by more than rental rates are down. And what's nice about it is there's like, right now we're sort of at the fulcrum of declining population as people are leaving the country when their visas come up, as well as the massive delivery of condos. So our hope is that while the savings are permanent, the rental rates will return to normal before the building's finished. The building, you know, we had about $65 million of equity in the project. We sold 10%, so we got 57. We got $5 or $6 million on the first advance for prior costs. And we got a piece of land that we'll be selling. So there's a fair amount of equity there, especially when – I mean, right now there's about $4 a share of equity in 49 Ontario. And as we complete it, I mean, we're getting about – a buck a share out of that in terms of the sale plus cash we're getting back. But we think that by the time we've completed the building, which would be, let's say, 2030, it should be about $120 million or $6 a share on its own. So we're very pleased that the work we're putting into 49 Ontario has come to fruition. And $6 a share is a lot of equity in one asset. And we've got other assets we're working on that we think will contribute as well. So I'll get into it in more detail. But we are seeing progress. There's some other areas that we thought might be done by now. It looks like it'll take a couple weeks more. But throughout the whole company, we've been dealing with that. We've been advancing projects. We've been very fortunate leasing up Maple House, which is stabilized at this point, and Block 47. block three, four, I mean, block seven was finished and it's almost fully leased. And block three, four, we just started leasing at the end of the year and it's quite encouraging what we're seeing. So, you know, there's a lot of good signs and I think we just got to bring a lot of it together for people to see it. So, Eric, on that, do you want to give an update on the quarter?

Sure. And the year? Thank you, Michael, and good morning. During 2025 and into early 2026, the Trust has made good progress on its five-year strategic plan. plan is focused on progressing key development projects, reducing risk, and enhancing liquidity. I will provide an update on these initiatives after going through our fourth quarter results. In Q4 2025, the trust recognized a net loss of $23.5 million compared to an $8.3 million net loss in the prior year. There are several moving pieces that caused this change. These included fair value adjustments in each year, condo occupancies at Brightwater in the prior year quarter, and a deferred tax recovery position. In addition, in Q4 2025, we recognized a loss related to the amendment of our convertible to ventures. Partially offsetting these was NOI growth from our multifamily rental assets, including those that reached or are nearing stabilization. For the recurring income segment, same-property NOI from multifamily properties was $2.8 million compared to $2.5 million in the prior year. The increase in NOI was largely driven by improved occupancy across our assets in lease-up and higher rents from our turnover across our value-add portfolio. As of December 31st, 2025, the portfolio had committed occupancy of 94%. The trust continues to advance its near-term multifamily pipeline, which is expected to deliver nearly 1,500 units over the next two years. At Cherry House, Block 7 is over 94% leased, and leasing for the remaining blocks commenced in January. For the development segment, The trust reported a net loss of $5.9 million, which is largely consistent with the prior year quarter. In 2025, Brightwater closings surpassed 500 units. During the quarter, closings commenced at the Mason, which comprises 158 units, with proceeds used to repay approximately $15 million of construction debt. As noted in our January update, we commenced demolition at 49 Ontario in November and have since completed the sale of a 10% interest to our partner, CentreCorp, for $6.5 million. We also secured 20-year government financing and completed our first draw. Proceeds were used to repay the prior $80 million land loan and to recover certain pre-development costs. As the sale into the new partnership occurred post-year end, 49 Ontario was temporarily classified as an asset held for sale as of December 31, 2025. We expect 49 Ontario to be included in equity account investments beginning in Q1, 2026. We continue to make progress on our near and medium-term debt maturities. During the quarter, we reduced our 2026 debt maturities by $56.5 million. This includes the convertible to venture extension, repayment of the Brightwater construction loan, and a Stafford mortgage repayment. Since 2024, the Trust has reduced its land loan exposure by $95 million. We expect to further reduce our land loans by $56 million over the year, and we are working closely with our lenders and partners to address the remaining debt maturities for 2026. We remain focused on reducing risk and enhancing liquidity. In January 2026, we increased the capacity on the DREAM loan to $50 million. As of February 17th, the trust has picked $24.8 million of cash and $29 million of availability under the DREAM loan. The financing agreement demonstrates DREAM's continued support of the trust and provides it with increased flexibility as we work through our five-year plan. I'll now turn the call back over to Michael.