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

Executive summary

• Achieved significant leasing progress in Q3 2025, with high-quality tenants secured and strong leasing momentum, especially in downtown Toronto, where committed occupancy (excluding 74 Victoria) surpassed 90%.

• Owns and manages over 4.0 million square feet of high-quality office assets, primarily in Downtown Toronto, with 83% of portfolio fair value concentrated in this market.

• The Trust executed 626,000 sq. ft. of leasing YTD, surpassing prior years, and achieved 121% of 2025 and 78% of 2026 Toronto lease expiries already committed.

• Model suite program and targeted capital investments have driven occupancy growth and attracted move-in ready tenants, with 85,000 sq ft leased out of 120,000 sq ft of model suites.

• Management remains confident in sustaining momentum into 2026, with proactive risk management and asset quality improvements supporting long-term value creation.

Financial highlights

• Q3 2025 diluted funds from operations (FFO) were $0.60 per unit, in line with internal expectations; year-to-date FFO reached $1.90 per unit.

• FFO per unit declined $0.17 year-over-year, mainly due to asset sales, which reduced FFO by $0.19 but generated $180 million in proceeds used to repay debt.

• Net loss for Q3 2025 was $60.8 million, including $55.1 million in negative fair value adjustments to investment properties and $12.5 million in fair value losses on financial instruments.

• Total assets of $2.3 billion and 4.8 million square feet of gross leasable area as of Q3 2025.

• NAV per unit dropped to $51.67 from $59.47 at year-end 2024, reflecting fair value losses and asset sales.

Outlook and guidance

• On track to meet 2025 FFO guidance of $2.40–$2.45 per unit and flat to slightly positive annual comparative property NOI.

• Management anticipates continued improvement in Toronto downtown occupancy and operational performance if current positive momentum persists into 2026.

• Committed occupancy is expected to reach about 86.5% by year-end 2025, supported by deals signed on vacant space with future commitments.

• Formal 2026 guidance will be provided in February; management expects continued growth in income and value, especially if Toronto market conditions improve.

• Redevelopment projects are expected to derisk assets and improve value, with key completions targeted by end of Q4 2025.