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

• Market Cap: $296.62M
• Dividend Yield: 5.98%
• Average Volume (3M): 20.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: 3.69%
• EPS Growth: -168.76%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 62
• Industry: REIT - Office
• EPS (TTM): -1.72
• Shares Outstanding: 16,360,971
• 10 Day Avg. Volume: 34,020
• 30 Day Avg. Volume: 20,964
• PEG Ratio: -0.15
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.47
• Price Target Upside: -0.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: C$17.00 ▲(2.78%Upside)

Dream Office REIT's stock score is primarily impacted by stable but challenged financials and strong corporate events. While technical indicators show short-term strength, valuation concerns with a negative P/E ratio weigh down the score. The positive corporate events and high dividend yield provide some support.

Positive Factors

Financial Performance

For the full-year 2024, FFO per unit was $2.98, up 3.5% year-over-year.

Valuation

The REIT’s units currently trade at an implied cap rate of 8.0% or a 20.6% discount to our NAV estimate, compared to the average discount of 10.2% for peers.

Negative Factors

Occupancy Rates

Lower same-property occupancy offsets rent growth.

Dream Office Real Estate Investment Business Overview & Revenue Model

Company Description

Dream Office Real Estate Investment Trust (D.UN) is a Canadian-based real estate investment trust specializing in owning, managing, and developing premium office properties in key urban centers across Canada. The company focuses on high-quality, well-located office properties that cater to a diversified mix of tenants, ranging from corporate to government entities. With a commitment to sustainability and innovation, Dream Office REIT aims to create value for its stakeholders through strategic asset management and development initiatives.

How the Company Makes Money

Dream Office Real Estate Investment Trust generates revenue primarily through leasing office space to tenants. The company's revenue model is centered around collecting rental income from its portfolio of office properties. This includes long-term lease agreements with a diverse range of tenants, which provide stable and predictable cash flows. In addition to rental income, Dream Office REIT may also engage in property development and repositioning activities, which can enhance property values and potential rental income. The company may form strategic partnerships or joint ventures to optimize asset performance and explore new market opportunities. Additionally, Dream Office REIT invests in sustainable building practices and technology upgrades to maintain high occupancy rates and attract premium tenants, thereby contributing to its overall earnings.

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. Strategic initiatives may be needed to bolster profitability and strengthen the financial position.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
196.11M	190.45M	196.27M	195.93M	206.59M
	Gross Profit
106.13M	102.33M	106.12M	107.13M	112.94M
	EBIT
93.54M	62.88M	154.09M	186.64M	138.54M
	EBITDA
-40.74M	-14.27M	158.04M	199.13M	152.15M
	Net Income Common Stockholders
-104.93M	-77.20M	63.64M	154.21M	177.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.27M	13.27M	8.02M	8.76M	13.07M
	Total Assets
2.58B	2.67B	3.07B	3.07B	2.89B
	Total Debt
1.31B	1.34B	1.38B	1.29B	1.20B
	Net Debt
1.29B	1.33B	1.37B	1.28B	1.19B
	Total Liabilities
1.50B	1.47B	1.53B	1.52B	1.39B
	Stockholders Equity
1.08B	1.20B	1.53B	1.55B	1.50B
Cash Flow		Free Cash Flow
41.61M	45.62M	41.24M	54.69M	59.58M
	Operating Cash Flow
72.39M	70.72M	76.67M	95.81M	94.29M
	Investing Cash Flow
-21.07M	286.12M	-19.24M	-29.38M	-4.50M
	Financing Cash Flow
-47.15M	-351.41M	-58.59M	-70.74M	-172.15M

Dream Office Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.54
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.54 is above the 20-day moving average (MA) of 15.32, above the 50-day MA of 15.67, and below the 200-day MA of 18.04, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.88 is Negative, 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
BTB.UN	78 Outperform	C$318.65M	8.17	8.03%	8.29%	3.34%	10.20%
PLZ.UN	74 Outperform	C$425.69M	17.24	4.57%	7.26%	6.36%	13.91%
PRV.UN	72 Outperform	C$333.49M	12.42	5.68%	8.18%	-1.07%	684.07%
AP.UN	63 Neutral	$2.23B	―	-7.48%	10.88%	5.28%	-0.79%
Sector *	61 Neutral	$2.83B	10.91	0.42%	8438.90%	5.74%	-20.95%
MRT.UN	59 Neutral	C$374.45M	―	-3.77%	4.15%	0.18%	68.25%
D.UN	57 Neutral	$296.62M	―	-13.41%	5.98%	3.69%	-168.76%

Dream Office Real Estate Investment Corporate Events

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.

Dream Office REIT Reports Q1 2025 Results, Focuses on Risk Reduction and Occupancy Improvement

Dream Office REIT reported its Q1 2025 financial results, highlighting efforts to reduce risk, enhance liquidity, and improve occupancy rates amid economic uncertainties. The company completed significant transactions, including the sale of 438 University Avenue, to reduce debt and increase liquidity. Despite a slight year-over-year decline in occupancy rates, Dream Office REIT remains committed to delivering stable performance and leveraging its strategically located portfolio to attract high-quality tenants.

Dream Office REIT Declares April 2025 Distribution

Dream Office REIT announced its monthly distribution for April 2025, set at 8.333 cents per REIT Unit, Series A, payable on May 15, 2025, to unitholders recorded by April 30, 2025. This announcement underscores the company’s commitment to providing consistent returns to its stakeholders, reinforcing its position as a leading office space provider in Toronto’s competitive real estate market.

Dream Office REIT Declares March 2025 Distribution

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