Dream Industrl REIT (DIR.UN) AI Stock Analysis

• Market Cap: C$3.32B
• Dividend Yield: 6.15%
• Average Volume (3M): 539.88K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.06
• Revenue Growth: 7.62%
• EPS Growth: 139.80%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Industrial
• EPS (TTM): 0.90
• Shares Outstanding: 278,588,040
• 10 Day Avg. Volume: 591,545
• 30 Day Avg. Volume: 539,882
• PEG Ratio: 0.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.79
• Price to Cash Flow (P/CF): 10.90
• P/FCF Ratio: 5.80
• 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: C$14.25
• Price Target Upside: 25.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Dream Industrial REIT's overall stock score reflects its solid financial performance and attractive valuation. The company's strong revenue growth, profitability, and prudent management are key strengths. Technical analysis indicators suggest some caution due to mixed signals and weak momentum. The attractive dividend yield adds to the overall appeal, making the stock a decent option for income-oriented investors, despite some concerns regarding increased leverage and market challenges in specific regions.

Positive Factors

Earnings Growth

DIR is forecasting an SP-NOI growth range of 6-8%, which is expected to translate into earnings growth of 6-9%.

Operational Performance

Funds from operations per diluted unit increased by 4.1% year-over-year, slightly above consensus expectations.

Revenue Growth

Dream Industrial REIT is well positioned to continue growing revenue as leases expire due to the gap between in-place and market rental rates.

Negative Factors

Debt Management

Interest expense is expected to rise further over the next year due to refinancing debt at market rates.

Occupancy

Same-property occupancy dropped 260 basis points year-over-year, leading to moderated growth in same-property net operating income.

Vacancy and Rent Growth

The pace of organic growth continues to moderate due to a rise in vacancy, although same-property rent growth remains healthy.

Dream Industrl REIT Business Overview & Revenue Model

Company Description

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at September 30, 2020, Dream Industrial REIT owns and operates a portfolio of 266 industrial properties comprising approximately 26.6 million square feet of gross leasable area in key markets across North America and a growing presence in strong European industrial markets. Dream Industrial REIT's objective is to continue to grow and upgrade the quality of its portfolio and to provide attractive overall returns to its unitholders.

How the Company Makes Money

Dream Industrial REIT generates revenue primarily through leasing its industrial properties to a diverse range of tenants, including logistics companies, manufacturers, and retailers. The company's revenue model is based on collecting rental income from these tenants under long-term lease agreements. Additionally, Dream Industrial REIT seeks to enhance its earnings through property acquisitions, developments, and proactive asset management, which may include capital improvements and lease renewals. Strategic partnerships and joint ventures also play a significant role in expanding its portfolio and optimizing returns. The trust's earnings are further supported by its focus on maintaining high occupancy rates and leveraging its scale to achieve operational efficiencies.

Dream Industrl REIT Financial Statement Overview

Summary

Dream Industrial REIT exhibits a solid financial position characterized by significant revenue growth, strong profitability, and prudent financial management. While the balance sheet reflects increasing leverage, the company maintains a substantial equity base and sufficient cash flow to manage its obligations. Continued focus on maintaining profitability and managing debt levels will be key to sustaining its financial health.

Income Statement

The company demonstrates strong financial performance with a consistent increase in revenue over the years. The gross profit margin is robust, and the net profit margin has shown improvement, indicating efficient cost management. However, the absence of EBIT data in the latest year is a minor concern. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

Dream Industrial REIT maintains a healthy balance sheet with a stable equity base. The debt-to-equity ratio is reasonable, suggesting manageable leverage relative to equity. The equity ratio indicates a strong asset base supported by equity. However, the increasing total debt over the years warrants monitoring to ensure continued solvency and financial stability.

Cash Flow

The company shows a positive trend in operating cash flow, which supports net income effectively. Free cash flow has also grown, reflecting efficient capital management. Despite fluctuations in capital expenditures, the company has managed to sustain positive free cash flow, which is crucial for ongoing investments and debt servicing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
466.22M	443.11M	369.57M	289.81M	235.95M
	Gross Profit
355.43M	339.69M	281.59M	217.90M	168.88M
	EBIT
0.00	303.52M	287.18M	232.24M	148.46M
	EBITDA
348.53M	169.78M	290.26M	234.02M	148.48M
	Net Income Common Stockholders
259.61M	104.30M	705.88M	608.35M	200.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.28M	49.92M	83.80M	164.01M	254.94M
	Total Assets
8.12B	7.86B	7.28B	6.05B	3.52B
	Total Debt
2.98B	2.86B	2.42B	2.06B	1.26B
	Net Debt
2.90B	2.81B	2.34B	1.89B	1.01B
	Total Liabilities
3.39B	3.28B	2.83B	2.55B	1.62B
	Stockholders Equity
4.73B	4.57B	4.45B	3.50B	1.90B
Cash Flow		Free Cash Flow
151.31M	115.84M	70.78M	128.14M	127.95M
	Operating Cash Flow
295.73M	302.39M	218.39M	174.10M	135.08M
	Investing Cash Flow
-113.74M	-689.44M	-780.36M	-1.76B	-644.31M
	Financing Cash Flow
-151.96M	356.52M	487.95M	1.50B	317.16M

Dream Industrl REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DIR.UN, the sentiment is Negative. The current price of 11.38 is below the 20-day moving average (MA) of 11.61, below the 50-day MA of 11.66, and below the 200-day MA of 12.48, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DIR.UN.

Dream Industrl REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRT.UN	79 Outperform	C$4.17B	11.70	6.55%	4.91%	9.19%	166.98%
DIR.UN	73 Outperform	C$3.32B	12.67	5.58%	6.15%	7.62%	139.80%
PLZ.UN	73 Outperform	C$414.62M	16.72	4.61%	7.46%	5.99%	20.38%
HR.UN	63 Neutral	C$2.62B	―	-2.29%	6.01%	-6.92%	-310.05%
Sector *	61 Neutral	$4.70B	17.65	-3.00%	11.43%	5.99%	-19.07%
MR.UN	56 Neutral	C$70.65M	―	-16.65%	0.73%	-2.12%	-287.56%

Dream Industrl REIT Corporate Events

Dream Industrial REIT Announces March 2025 Distribution

Dream Industrial REIT announced its March 2025 monthly distribution of 5.833 cents per Unit, payable on April 15, 2025, to unitholders of record as of March 31, 2025. This announcement reflects the company’s commitment to providing secure distributions and highlights its strong financial position, supported by a high-quality portfolio and an investment-grade balance sheet.

Dream Industrial REIT Announces February 2025 Distribution

Dream Industrial REIT has announced its February 2025 monthly distribution of 5.833 cents per unit, payable on March 14, 2025, to unitholders of record as of February 28, 2025. This announcement reflects the company’s focus on providing secure and consistent returns to its unitholders, supported by its high-quality portfolio and investment-grade balance sheet.

Dream Industrial REIT Reports Strong Year-End Financial Performance

Dream Industrial REIT reported strong financial results for Q4 2024 and the year-end, with a notable increase in diluted funds from operations per unit and net rental income. The company successfully signed over 7.3 million square feet of new leases and renewals, demonstrating robust leasing activity. The Trust also completed significant acquisitions and development projects, enhancing its portfolio with additional industrial space, which suggests a positive outlook for stakeholders.

Dream Industrial REIT to Announce Q4 2024 Financial Results

Dream Industrial REIT announced it will release its Q4 2024 financial results on February 18, 2025, followed by a conference call and webcast on February 19. This release could provide insights into the company’s performance and future outlook, impacting stakeholders’ perspectives on its market positioning and operational strategy.

Dream Industrial REIT Declares January 2025 Distribution

Dream Industrial REIT announced its January 2025 monthly distribution of 5.833 cents per unit, amounting to 70 cents annualized. This distribution will be payable on February 14, 2025, to unitholders of record as of January 31, 2025. This announcement underscores the trust’s commitment to delivering secure distributions and enhancing stakeholder value through its strategically located and diversified industrial portfolio.