DREAM Unlimited (DRM) Q4 2024 earnings summary

Executive summary

• Achieved strong financial performance in 2024, with record ordinary income per share of CAD 2.86 and significant growth in Western Canada land, asset management, and income properties.

• Assets under management reached $27.4 billion as of December 31, 2024, up from $24.4 billion in 2023, driven by fee-earning asset growth and European expansion.

• Closed the sale of Arapahoe Basin, generating a pre-tax gain of $157.4 million, used to repay debt and fund a special dividend.

• Maintained strong liquidity, with year-end liquidity at CAD 367 million, up from CAD 257 million in Q3.

• Increased annual dividend per share from $0.60 to $0.65, effective March 2025, and returned $67.3 million to shareholders in 2024.

Financial highlights

• Q4 2024 standalone FFO was $51.5 million ($1.22 per share), up from $23.9 million ($0.56 per share) in Q4 2023.

• Full-year 2024 standalone FFO was $120.3 million ($2.86 per share), up from $58.4 million ($1.37 per share) in 2023.

• Adjusted FFO for Q4 2024 was $157.4 million ($4.97 per share), reflecting the Arapahoe Basin gain.

• Q4 revenue was $192.3 million, up from $107.9 million in Q4 2023; full-year revenue reached $624.5 million, up from $386.9 million in 2023.

• Net margin for Q4 2024 was $63.1 million (32.8%), up from $26.4 million (24.5%) in Q4 2023.

Outlook and guidance

• Over 2,600 residential rental units are expected to be added to the portfolio through 2027, with most under construction.

• Western Canada land division expects to achieve 80% of 2025 financial targets through pre-sales by next reporting period, with new neighborhood launches in Saskatchewan.

• Anticipates continued growth in asset management, with new joint ventures in the Netherlands and Canadian multi-family apartments.

• Plans to finalize refinancing of $225M term facility and $320M Western Canada line by Q1 2025, extending maturity to 2028.

• $104 million in land commitments for sales in 2025, primarily in Western Canada.