DREAM Unlimited (DRM) Q2 2025 earnings summary

Executive summary

• Significant progress in Western Canada with approvals, sales, and new community launches in Regina, Saskatoon, and Calgary, supporting long-term growth and profitability.

• Asset management AUM reached $28 billion as of June 30, 2025, growing by $2.5 billion year-over-year, with a shift toward more private assets.

• Income properties segment continues to expand, with net operating income and unit completions rising as new buildings are leased.

• Q2 2025 consolidated results included a net loss of $25.0 million and revenue of $68.2 million, reflecting lower land sales and performance fees compared to the prior year.

• Book value per share was $26.27 as of June 30, 2025, with $13.7 million returned to shareholders via dividends year-to-date.

Financial highlights

• Q2 2025 revenue was $68.2 million, down from $178.3 million in Q2 2024, with net margin of $11.0 million (16.1%).

• Asset management Q2 2025 revenue was $11.6 million and net margin $6.9 million, down from prior year due to lower performance fees.

• Income properties Q2 2025 revenue was $12.2 million and NOI $6.8 million, up slightly year-over-year due to new rentals.

• Western Canada development Q2 2025 net margin was $1.1 million on 44 lot sales and 19 housing occupancies; prior year included large one-time land sales.

• Available liquidity at June 30, 2025, was $345 million, with $218 million in 2025 debt maturities, most in advanced renewal discussions.

Outlook and guidance

• Most income for 2025 is expected to be back-ended, driven by lot and acreage sales in Western Canada, with higher sales and earnings anticipated in the second half.

• Over 1,000 rental units and 0.7 million sf of GLA are under construction, expected to complete in the next three years.

• Asset management anticipates organic growth and potential new mandates in late 2025 or early 2026.

• Builder inventories in Western Canada remain low, supporting stable demand and a positive outlook for 2026.

• Management expects to maintain strong liquidity and flexibility for discretionary investments.