Dream Impact Trust (MPCT) Q2 2025 earnings summary

Executive summary

• Reported a net loss of $16.5 million for Q2 2025, compared to a $4.8 million loss in Q2 2024, mainly due to fair value adjustments, lower deferred tax recovery, and slower commercial leasing, partially offset by higher income from the multi-family portfolio.

• Multi-family rental portfolio NOI increased 60% year-over-year, driven by new completions and acquisitions, with continued growth expected as lease-up progresses.

• Commercial asset values declined due to unfavorable market conditions, leading to asset sales and IFRS value reductions, resulting in losses.

• The Trust's portfolio includes 2,973 multi-family units (85.8% leased) and 1.4 million sf of commercial/retail GLA, with significant development projects underway in Toronto and Ottawa.

• Management is focused on liquidity solutions and repositioning towards multi-family assets.

Financial highlights

• Net loss for Q2 2025 was $16.5 million (Q2 2024: $4.8 million); six-month net loss was $20.3 million (2024: $10.2 million).

• NOI from recurring income was $4.5 million in Q2 2025 (Q2 2024: $6.0 million); multi-family rental NOI rose to $2.7 million (Q2 2024: $1.7 million).

• Net loss per unit was $(0.90) for Q2 2025 (Q2 2024: $(0.27)).

• Total assets were $665.6 million at June 30, 2025; unitholders' equity per unit was $20.68.

• Cash on hand at June 30, 2025 was $13.1 million; debt-to-asset value increased to 41.3% from 40.4% at March 31, 2025.

Outlook and guidance

• Anticipates construction commencement at 49 Ontario St. by year-end, with 1,226 units (22% affordable) upon completion.

• Multi-family portfolio expected to reach 1,452 units within 24 months, with further expansion to nearly 2,800 units as new projects commence.

• Construction at 49 Ontario St. and Quayside to add 1,330 units, with starts planned for 2025 and 2026.

• Over 2,689 new residential units expected to be completed in the next five years, supporting future recurring income.

• Expects income from development to fluctuate and not contribute meaningfully until milestones are achieved.