Dream Office Real Estate Investment (D.UN) AI Stock Analysis

• Market Cap: $325.22M
• Dividend Yield: 6.02%
• Average Volume (3M): 17.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -1.06%
• EPS Growth: -20.07%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -3.13
• Shares Outstanding: 16,368,755
• 10 Day Avg. Volume: 16,794
• 30 Day Avg. Volume: 17,962
• PEG Ratio: -0.06
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 8.27
• Enterprise Value/Market Cap: 4.92
• Enterprise Value/Revenue: 8.35
• Enterprise Value/Gross Profit: 15.50
• Enterprise Value/Ebitda: -35.88
• 1Y Price Target: $19.82
• Price Target Upside: 15.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -3.21
• Revenue Forecast (FY): $182.44M

• Rating: 48 Neutral
• Price Target: C$18.50 ▲(7.56% Upside)

Dream Office REIT's overall stock score is primarily impacted by its financial challenges, including declining revenue, high leverage, and negative profitability. Technical analysis further indicates weak momentum. However, the earnings call provides some optimism with strong leasing performance and high occupancy rates, which slightly offsets the negative financial and technical indicators.

Positive Factors

Strong Leasing Performance

The strong leasing performance, particularly in Toronto, indicates robust demand for Dream Office's properties, supporting stable long-term revenue streams and enhancing market position.

High Occupancy Rates

High occupancy rates in key assets like Adelaide Place suggest effective asset management and tenant retention strategies, contributing to sustained cash flow and revenue stability.

Improved Financial Metrics

The improvement in debt metrics through asset sales enhances financial flexibility, reducing leverage and interest burden, which is beneficial for long-term financial health.

Negative Factors

Declining Revenue

Declining revenue and profitability reflect operational challenges, potentially limiting growth and affecting the company's ability to invest in new opportunities.

High Leverage

High leverage increases financial risk, potentially straining cash flow and limiting the company's ability to withstand economic downturns or invest in growth initiatives.

Interest Rate Impact on Debt

Rising interest rates on debt increase financial costs, reducing funds available for reinvestment or distribution, impacting long-term profitability and cash flow.

Dream Office Real Estate Investment Business Overview & Revenue Model

Company Description

Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT owns well-located, high-quality office properties, primarily in downtown Toronto.

How the Company Makes Money

Dream Office REIT generates revenue primarily through rental income from its portfolio of office properties. Tenants in these properties pay rent, which constitutes the main revenue stream for the company. The REIT typically enters into long-term leases with its tenants, providing a stable cash flow. Additionally, Dream Office may benefit from property appreciation over time, allowing for capital gains upon the sale of assets. The company may also explore management fees or partnerships with other real estate entities to enhance its income. Factors contributing to its earnings include occupancy rates, lease renewals, and the overall demand for office space in its targeted markets.

Dream Office Real Estate Investment Financial Statement Overview

Summary

Dream Office Real Estate Investment is facing financial challenges, with declining revenue and profitability, high leverage, and negative returns on equity. While there is some improvement in free cash flow, the overall financial health is concerning, with significant risks due to high debt levels and operational inefficiencies.

Income Statement

The income statement shows declining revenue and profitability. The TTM data indicates a negative net profit margin of -88.74%, and a negative revenue growth rate of -3.78%. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Historical data shows a consistent decline in revenue and profitability over the years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.23 in the TTM period, indicating significant leverage. The return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio is not explicitly calculated, but the high leverage and declining equity over time are concerning.

Cash Flow

Cash flow analysis shows some positive aspects, such as a free cash flow growth rate of 58.19% in the TTM period. However, the operating cash flow to net income ratio is low at 0.62, indicating challenges in converting income into cash. The free cash flow to net income ratio is relatively stable but reflects the negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	191.37M	196.11M	190.45M	196.27M	197.54M	206.59M
Gross Profit	103.18M	106.13M	102.33M	106.12M	108.74M	112.94M
EBITDA	-44.56M	-40.74M	-14.27M	120.29M	214.29M	238.22M
Net Income	-169.83M	-104.93M	-77.20M	63.64M	154.21M	177.28M
Balance Sheet
Total Assets	2.34B	2.58B	2.67B	3.07B	3.07B	2.89B
Cash, Cash Equivalents and Short-Term Investments	18.94M	18.27M	13.27M	8.02M	8.76M	13.07M
Total Debt	1.22B	1.31B	1.34B	1.38B	1.29B	1.20B
Total Liabilities	1.34B	1.50B	1.47B	1.53B	1.52B	1.39B
Stockholders Equity	993.06M	1.08B	1.20B	1.53B	1.55B	1.50B
Cash Flow
Free Cash Flow	43.34M	41.61M	45.62M	41.24M	95.80M	59.58M
Operating Cash Flow	71.73M	72.39M	70.72M	76.67M	95.81M	94.29M
Investing Cash Flow	153.33M	-21.07M	286.12M	-19.24M	-29.38M	-4.50M
Financing Cash Flow	-220.33M	-47.15M	-351.41M	-58.59M	-70.74M	-172.15M

Dream Office Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:D.UN, the sentiment is Negative. The current price of 17.2 is below the 20-day moving average (MA) of 17.52, below the 50-day MA of 18.77, and above the 200-day MA of 16.93, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 48.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:D.UN.

Dream Office Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRV.UN	81 Outperform	C$399.16M	14.17	7.24%	7.36%	2.81%	9677.19%
BTB.UN	75 Outperform	C$332.77M	7.94	8.60%	7.83%	0.92%	92.93%
PLZ.UN	71 Outperform	C$447.26M	12.85	7.14%	6.95%	4.53%	197.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.30%	-5.37%	13.86%
AP.UN	49 Neutral	$1.85B	―	-10.26%	13.57%	1.86%	1.84%
D.UN	48 Neutral	$325.22M	―	-14.98%	6.02%	-1.06%	-20.07%

Dream Office Real Estate Investment Corporate Events

Dream Office REIT Reports Q3 2025 Financial Results

Dream Office Real Estate Investment Trust (REIT) is a premier office landlord primarily operating in downtown Toronto, specializing in managing high-quality office spaces in strategic locations. The company recently released its Q3 2025 financial results, highlighting improvements in the Toronto office market driven by increased demand from financial institutions.

Dream Office REIT Sees Positive Momentum in Toronto Market Amid Q3 2025 Results

Dream Office REIT reported its Q3 2025 financial results, highlighting a notable improvement in the downtown Toronto office market. The company observed increased demand from financial institutions, leading to a significant reduction in vacancy rates and sublease spaces. Despite ongoing challenges in the Canadian office real estate sector, Dream Office REIT remains committed to enhancing its portfolio, with renovations substantially completed on its prime buildings. The company secured substantial leasing agreements, reflecting growing tenant confidence and a strategic positioning for long-term success.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Dream Office Real Estate Investment stock, see the TSE:D.UN Stock Forecast page.

Dream Office REIT Sees Positive Trends in Toronto Market Amid Q3 2025 Results

Dream Office REIT reported its Q3 2025 financial results, highlighting improvements in the downtown Toronto office market driven by increased demand from financial institutions. Despite ongoing challenges in the Canadian office real estate sector, the Trust has seen a positive shift in occupancy rates and reduced sublease space, indicating growing tenant confidence. The company remains committed to enhancing its portfolio through strategic renovations and aims to maintain stable operational and financial performance amidst macroeconomic uncertainties.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Dream Office Real Estate Investment stock, see the TSE:D.UN Stock Forecast page.

Dream Office REIT Declares October 2025 Distribution

Dream Office REIT has announced its October 2025 monthly distribution of 8.333 cents per REIT Unit, Series A, payable on November 14, 2025, to unitholders of record as of October 31, 2025. This announcement reflects the company’s ongoing commitment to providing consistent returns to its investors, reinforcing its position as a leading office space provider in Toronto’s competitive real estate market.

The most recent analyst rating on ($TSE:D.UN) stock is a Buy with a C$25.50 price target. To see the full list of analyst forecasts on Dream Office Real Estate Investment stock, see the TSE:D.UN Stock Forecast page.

Dream Office REIT to Release Q3 2025 Financial Results

Dream Office REIT has announced it will release its financial results for Q3 2025 on November 6, 2025, followed by a conference call on November 7, 2025, to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic positioning in the competitive Toronto office market.

The most recent analyst rating on ($TSE:D.UN) stock is a Buy with a C$25.50 price target. To see the full list of analyst forecasts on Dream Office Real Estate Investment stock, see the TSE:D.UN Stock Forecast page.

Dream Office REIT Announces September 2025 Distribution

Dream Office REIT announced its September 2025 monthly distribution of 8.333 cents per REIT Unit, Series A, payable on October 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its unitholders and underscores its stable positioning in the competitive Toronto office market.

The most recent analyst rating on ($TSE:D.UN) stock is a Buy with a C$25.50 price target. To see the full list of analyst forecasts on Dream Office Real Estate Investment stock, see the TSE:D.UN Stock Forecast page.

Dream Office REIT Declares August 2025 Distribution

Dream Office REIT announced its August 2025 monthly distribution of 8.333 cents per REIT Unit, Series A, payable on September 15, 2025, to unitholders of record as of August 29, 2025. This announcement reflects the company’s ongoing commitment to providing consistent returns to its stakeholders, reinforcing its position as a leading office space provider in Toronto’s competitive real estate market.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$17.50 price target. To see the full list of analyst forecasts on Dream Office Real Estate Investment stock, see the TSE:D.UN Stock Forecast page.

Dream Office REIT’s Optimistic Earnings Call Highlights

Dream Office REIT’s recent earnings call painted a positive picture for the company, showcasing strong leasing performance and strategic financial management. Despite facing challenges such as higher interest rates and a decline in NAV per unit, the company remains optimistic about its future prospects.

Dream Office REIT Reports Q2 2025 Financial Results

Dream Office REIT, a prominent real estate investment trust, specializes in managing and owning premier office spaces primarily in downtown Toronto. The company is recognized for its high-quality assets in strategic locations, catering to the office real estate sector.