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

• Market Cap: $316.43M
• Dividend Yield: 6.18%
• Average Volume (3M): 16.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: 1.42%
• EPS Growth: -334.18%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Office
• EPS (TTM): -2.15
• Shares Outstanding: 16,364,952
• 10 Day Avg. Volume: 12,935
• 30 Day Avg. Volume: 16,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.82
• Enterprise Value/Revenue: 7.97
• Enterprise Value/Gross Profit: 14.78
• Enterprise Value/Ebitda: -34.22
• 1Y Price Target: $17.41
• Price Target Upside: 4.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 54 Neutral
• Price Target: C$17.00 ▲(1.98% Upside)

The overall stock score of 54 reflects significant financial challenges, including declining revenue and high leverage, which are partially offset by positive leasing activity and strategic repositioning efforts highlighted in the earnings call. The technical indicators and valuation metrics provide a mixed view, with a stable short-term trend but negative earnings impacting valuation.

Positive Factors

Leasing Activity

Leasing momentum improves, with committed occupancy in downtown Toronto increasing 110 bps from 84.2% to 85.3%.

Leasing Negotiations

Management presented a bullish tone toward leasing velocity, with 328,000 sf of leases in negotiations potentially improving occupancy significantly.

Market Conditions

There are early signs of improvement in the downtown Toronto office market, which should allow for gradual improvement and cash flow growth.

Negative Factors

Financial Performance

FFO per unit drops 18%, driven by dilution from the sale of a portion of the investment in Dream Industrial REIT and greater interest expense from refinancing mortgages at higher interest rates.

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 Real Estate Investment generates revenue primarily through rental income from its portfolio of office properties. The company leases space to a diverse range of tenants, which contributes to a stable and recurring cash flow. Additionally, it may realize income from property management services and ancillary services related to its real estate assets. The company also benefits from strategic partnerships and joint ventures that enhance its investment capacity and provide access to new markets. Factors contributing to its earnings include the overall demand for office space, rental rates, occupancy levels, and effective property management practices that optimize asset performance.

Dream Office Real Estate Investment Financial Statement Overview

Summary

Dream Office Real Estate Investment displays stable revenue but faces profitability challenges with declining net income and margins. The balance sheet reflects moderate leverage and a shrinking equity base, indicating potential financial pressure. Cash flows remain a strength, providing essential liquidity amidst operational difficulties.

Income Statement

The company's income statement reveals challenges in profitability, with a declining trend in net income, particularly in the most recent year. The gross profit margin has been stable, but the net profit margin is negative, indicating operational inefficiencies or high non-operating expenses. Revenue growth is minimal, showcasing little top-line expansion.

Balance Sheet

The balance sheet presents a mixed picture with moderate leverage, as indicated by the debt-to-equity ratio. Stockholders' equity has been declining, reflecting potential financial strain. The equity ratio remains within a reasonable range, suggesting a balanced approach between debt and equity financing, but the declining equity could pose future risks.

Cash Flow

Cash flow analysis shows a stable generation of operating cash flows, though free cash flow growth has been inconsistent. The operating cash flow to net income ratio indicates reliance on cash flow for sustaining operations, amidst negative net income. Despite challenges, the company maintains a positive free cash flow to net income ratio, suggesting efficient cash management relative to net losses.

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	189.72M	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: Positive
• Last Price: 16.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 16.67 is above the 20-day moving average (MA) of 16.66, above the 50-day MA of 16.48, and below the 200-day MA of 16.78, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 38.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	C$393.74M	13.96	5.27%	7.65%	-0.28%	206.65%
PLZ.UN	77 Outperform	C$464.91M	13.27	6.45%	6.65%	5.14%	209.83%
BTB.UN	76 Outperform	C$325.71M	8.63	7.80%	8.38%	1.59%	19.74%
Sector *	63 Neutral	$7.00B	13.54	-0.52%	7.07%	3.61%	-22.78%
D.UN	54 Neutral	$316.43M	―	-15.40%	6.18%	1.42%	-334.18%
MRT.UN	51 Neutral	C$378.22M	―	-3.72%	4.27%	-2.90%	68.88%
APYRF	―	$1.86B	―	-9.62%	9.64%	―	―

Dream Office Real Estate Investment Corporate Events

Dream Office REIT Sees Leasing Growth Amid Market Stabilization

Dream Office REIT reported its Q2 2025 financial results, highlighting a slight improvement in committed occupancy rates despite a decrease in in-place occupancy. The company has seen an increase in leasing activity, securing 507,000 square feet of leases this year, reflecting growing tenant confidence in the office market. The downtown Toronto office market shows signs of stabilization, with a steady vacancy rate and a significant reduction in sublease space, aligning with return-to-office mandates from major financial institutions.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$21.00 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 July 2025 Distribution

Dream Office REIT announced its July 2025 monthly distribution of 8.333 cents per REIT Unit, Series A, payable on August 15, 2025, to unitholders of record as of July 31, 2025. This announcement underscores the company’s ongoing commitment to providing consistent returns to its stakeholders, reinforcing its strong position in the Toronto office market.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$21.00 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 to Announce Q2 2025 Financial Results

Dream Office REIT announced that it will release its financial results for the second quarter of 2025 on August 7, 2025. The company will host a conference call on August 8, 2025, to discuss these results, offering stakeholders insights into its financial performance and strategic positioning in the competitive Toronto office market.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$21.00 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 June 2025 Distribution

Dream Office REIT has announced its monthly distribution for June 2025, set at 8.333 cents per REIT Unit, Series A, which translates to an annualized distribution of $1.00. This distribution reflects the company’s commitment to providing consistent returns to its unitholders and underscores its stable positioning within the competitive Toronto office market.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$21.00 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 Reports Strong Support in Annual Meeting Decisions

Dream Office REIT announced the successful election of all trustee nominees at its annual unitholders meeting, with overwhelming support for each candidate. Additionally, PricewaterhouseCoopers LLP was reappointed as the auditor, and a resolution to amend the deferred unit incentive plan was approved, indicating strong investor confidence and strategic alignment for future growth.

The most recent analyst rating on ($TSE:D.UN) stock is a Hold with a C$21.00 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.