Bullboard - Stock Discussion Forum Dream Industrial Real Estate Investment Trust T.DIR.UN

Alternate Symbol(s): DREUF

Dream Industrial Real Estate Investment Trust is a Canada-based open-ended real estate investment trust. The Company owns, manages and operates a portfolio of 322 assets totaling approximately 70.6 million square feet of gross leasable area in key markets across Canada, Europe and the United States. The Company owns and operates a diversified portfolio of distribution, urban logistics and light... see more

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TSX:DIR.UN - Post Discussion

Dream Industrial Real Estate Investment Trust > TD

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Post by retiredcf on Nov 02, 2022 2:37pm

TD

Currently have a $15.00 target. GLTA

Dream Industrial REIT

(DIR.UN-T) C$11.17

Q3/22 First Look: IFRS NAV Rises as SPNOI Growth Exceeds 8% Event

Q3/22 Results. Conference call is at 1:00 pm. (1-888-455-3403, passcode: 64844654#).

Impact: SLIGHTLY POSITIVE

Our Take: DIR delivered another quarter with strong SPNOI growth and rising rental rates, meeting management's guidance that was increased earlier this year. With no apparent signs of weakness within the portfolio and rent growth offsetting the rise in interest rates, DIR recorded a small increase in IFRS fair values this quarter.

Results (see Exhibit):

Q3/22 diluted FFO/unit of $0.222 (+1% y/y, +3% q/q) was in line with our estimate and consensus. AFFO/unit of $0.190 (+3% y/y; our calculation) also matched our estimate.

In-place occupancy slipped 130bps q/q to 97.3%, largely due a transitory vacancy in France (lease commenced in October), while committed occupancy was 10bps lower at 99.0%.

Y/Y SPNOI growth (constant currency basis) was strong at +8.2%, with Canada at +11.7% driven by Ontario (+16.9%) and Quebec (+10.2%), while Europe was +2.6%.
Canadian Portfolio: Market rents of $11.71 were +2% q/q and remained ~42% above in-place rents versus 22.4% a year ago. Rental uplifts were 60.3% in Q3.
European Portfolio: Market rents reached €5.45 (+4% q/q) and are +6.9% above in-place rents (averaged 6.5% since January 2021). Rental uplifts were -1.5% in Q3 largely due to a new 467,000sf lease in France, that while above original underwriting was below the previous rent (previous in-place rent was above market). Excluding this lease, rental uplifts were near +6%.

Balance Sheet and Fair Values:

DIR's net-debt-to-assets ratio ended Q3/22 at 29.2% (Q2/22: 29.7%). The overall portfolio cap rate increased 9bps to 5.16% (discount rate +12bps). That said, this was more than offset by market rent growth and new developments coming on-line to result in a $43.1mm IFRS fair value gain. IFRS NAV/unit increased 2% q/q and 18.6% y/y to $17.05.