Dream Office Real Estate Investment Trust (D-UN) investor relations material

Executive summary

• Leasing momentum is strong, with 507,000 sq ft leased year-to-date and 189,000 sq ft in Q2 2025, driven by return-to-office mandates and portfolio concentration in downtown Toronto, which represents 83% of fair value.

• Key assets like Adelaide Place saw occupancy rise to 95%, and the model suite program improved leasing at major properties.

• Portfolio transformation reduced exposure outside Toronto to 17% by fair value, with renovations largely complete.

• Strong management alignment with 33.7% insider ownership and active asset management partnerships.

• Tenant base includes government, institutional, and diversified sectors, benefiting from premium downtown locations.

Financial highlights

• Diluted FFO per unit at $0.62, down from $0.76 in Q2 2024, mainly due to property and unit sales; NAV per unit at $54.56, down from $59.47 at year-end 2024.

• Net loss for Q2 2025 was $41.8 million, impacted by negative fair value adjustments and Dream Industrial REIT unit sales.

• Portfolio occupancy (including committed) at 81.9%; in-place and committed occupancy at 85.3%.

• Weighted average lease term is 6.1 years; total assets are $2.3 billion with 4.8 million sf gross leasable area.

• Comparative property NOI increased 0.6% year-over-year, with Toronto downtown up 0.5%.

Outlook and guidance

• Committed occupancy is expected to improve, with NOI projected to rise in 2026 and beyond, supported by return-to-office mandates and no new office construction starts.

• FFO per unit guidance set at $2.40–$2.45; comparative property NOI forecasted flat to slightly positive for 2025.

• Redevelopment and model suite programs are expected to attract high-quality tenants and reduce lease-up time.

• Capital allocation will prioritize funding leases and value-enhancing renovations.