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

• Market Cap: $314.86M
• Dividend Yield: 6.1%
• Average Volume (3M): 34.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: 3.69%
• EPS Growth: -168.76%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -1.72
• Shares Outstanding: 16,361,952
• 10 Day Avg. Volume: 32,980
• 30 Day Avg. Volume: 34,952
• PEG Ratio: -0.22
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.17
• 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: $16.67
• Price Target Upside: 1.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: C$17.50 ▲(6.19%Upside)

The overall stock score reflects a mix of stable cash flows and positive corporate events, offset by financial performance challenges and valuation concerns. Positive technical indicators suggest short-term bullish sentiment, while corporate events reinforce investor confidence. High dividend yield provides income potential despite profitability issues.

Positive Factors

Financial Performance

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

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

Market Performance

Dream Office’s units currently trade at 14.3x our 2026E AFFO estimate, above the weighted average of 8.9x for its office REIT peers.

Occupancy

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 REIT shows stable revenue but faces challenges with declining net income and negative margins. The balance sheet indicates moderate leverage and declining equity, suggesting financial pressure. Cash flows remain a strength, providing 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	196.11M	190.45M	196.27M	197.54M	206.59M
Gross Profit	106.13M	102.33M	106.12M	108.74M	112.94M
EBITDA	-40.74M	-14.27M	120.29M	189.72M	238.22M
Net Income	-104.93M	-77.20M	63.64M	154.21M	177.28M
Balance Sheet
Total Assets	2.58B	2.67B	3.07B	3.07B	2.89B
Cash, Cash Equivalents and Short-Term Investments	18.27M	13.27M	8.02M	8.76M	13.07M
Total Debt	1.31B	1.34B	1.38B	1.29B	1.20B
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	95.80M	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: 16.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 16.48 is above the 20-day moving average (MA) of 16.13, above the 50-day MA of 15.67, and below the 200-day MA of 17.56, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.39 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	80 Outperform	C$364.51M	12.87	5.68%	7.89%	-1.07%	684.07%
BTB.UN	78 Outperform	C$323.05M	8.26	8.03%	8.20%	3.34%	10.20%
PLZ.UN	76 Outperform	C$433.99M	17.62	4.57%	7.11%	6.36%	13.91%
AP.UN	67 Neutral	C$2.53B	―	-7.48%	9.96%	5.28%	-0.79%
Sector *	61 Neutral	AU$2.84B	8.03	4.17%	5.14%	17.25%	41.52%
MRT.UN	59 Neutral	C$375.19M	―	-3.77%	4.17%	0.18%	68.25%
D.UN	58 Neutral	$314.86M	―	-13.41%	6.10%	3.69%	-168.76%

Dream Office Real Estate Investment Corporate Events

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.

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.