DREAM Unlimited (DRM) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 was strong, capping a robust year with significant progress in Western Canada and asset management growth, setting up positive momentum for 2026 and beyond.

• Assets under management reached $28 billion as of December 31, 2025, with all major business segments contributing to growth.

• Two significant transactions completed in Q4, including a $3 billion joint venture (Dream DCI JV) with CPP Investments and Dream Industrial REIT, generating a $44.8 million incentive fee.

• Advanced major Toronto development projects, including 49 Ontario and Quayside, with construction and reorganization milestones achieved.

• Maintained a conservative operational approach, focusing on liquidity preservation amid market volatility.

Financial highlights

• Q4 2025 revenue was $211.7 million, up from $192.3 million in Q4 2024; net margin was $97.3 million (45.9%).

• Q4 net earnings were CAD 56.2 million, down from CAD 135.7 million in the prior year due to a one-time gain in 2024.

• Asset management division generated Q4 revenue of $61.5 million and net margin of $52.9 million, up significantly year-over-year, driven by incentive and separation fees.

• Western Canada Development posted Q4 net margin of $42.5 million, with 438 lot sales and 204 acre sales.

• Income properties Q4 revenue was $16.7 million, with NOI of $8.4 million, both up from the prior year, reflecting strong lease-up in Saskatoon.

Outlook and guidance

• Nearly $150 million in land pre-sales commitments secured for 2026–2027, up $28 million from last quarter, mainly in key Western Canada communities.

• Asset management expected to continue growing, with new ventures and incentive fees anticipated in 2026.

• Western Canada Development expects improved results in 2026 as delayed lot sales are recognized.

• 952 rental units and 0.8 million sq ft of GLA are under construction, expected to complete between 2026 and 2027, supporting future income property growth.

• Annual dividend per share increased from $0.65 to $0.70, effective March 2026.