Dream Industrl REIT (DIR.UN) AI Stock Analysis

• Market Cap: C$3.61B
• Dividend Yield: 5.56%
• Average Volume (3M): 555.72K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.96
• Revenue Growth: 7.31%
• EPS Growth: 74.70%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.16
• Shares Outstanding: 286,410,950
• 10 Day Avg. Volume: 669,792
• 30 Day Avg. Volume: 555,721
• PEG Ratio: 0.09
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 7.33
• P/FCF Ratio: 22.60
• 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$14.54
• Price Target Upside: 15.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$13.50 ▲(7.31% Upside)

Dream Industrial REIT's strong financial performance and robust earnings call insights are the primary drivers of its score. The stock's reasonable valuation and attractive dividend yield further support its appeal. However, technical indicators suggest caution due to potential short-term weakness.

Positive Factors

Strong Financial Performance

The consistent growth in FFO and NOI indicates robust financial health and effective management, supporting long-term profitability and stability.

High Occupancy and Leasing Success

High occupancy rates and successful leasing efforts enhance revenue stability and indicate strong demand for the company's properties.

Strong Financial Liquidity

Ample liquidity and proactive debt management provide financial flexibility, supporting future growth initiatives and risk management.

Negative Factors

Longer Lease Negotiations

Extended lease negotiations could slow revenue growth and occupancy rates, potentially impacting cash flow and operational efficiency.

Higher Interest Expenses

Increased interest expenses can pressure margins and reduce profitability, affecting the company's ability to reinvest in growth opportunities.

Challenges in Leasing Pace

Persistent challenges in leasing pace may hinder revenue growth and operational efficiency, impacting long-term financial performance.

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 long-term leases, which provide stable cash flow and predictable income. Key revenue streams include rental income from these leases, as well as potential increases in rental rates over time through lease escalations. Furthermore, the REIT may benefit from strategic partnerships with logistics firms and other tenants that require specialized industrial space, enhancing its occupancy rates and reducing tenant turnover. Additionally, the company may engage in property acquisitions and developments to expand its portfolio, creating further revenue opportunities.

Dream Industrl REIT Financial Statement Overview

Summary

Dream Industrial REIT demonstrates solid profitability with strong gross and net profit margins. The balance sheet reflects prudent leverage, though return on equity is low. Cash flow generation is positive, but there are concerns about cash conversion efficiency. Overall, the company is in a stable financial state with room for improvement in operational efficiency.

Income Statement

Dream Industrial REIT shows strong profitability with a high gross profit margin of 75.73% and a net profit margin of 48.89% for TTM. The revenue growth rate is modest at 1.72%, indicating stable growth. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting potential efficiency issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.62, reflecting a balanced approach to leverage. Return on equity is relatively low at 4.93%, indicating limited profitability from equity investments. The equity ratio stands at 57.84%, showing a strong equity base relative to total assets.

Cash Flow

Free cash flow growth is strong at 19.62%, and the free cash flow to net income ratio is healthy at 56.76%. However, the operating cash flow to net income ratio is low at 40.80%, suggesting potential issues in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.30M	466.22M	443.11M	369.57M	289.81M	235.95M
Gross Profit	373.67M	355.43M	339.69M	281.59M	217.90M	168.88M
EBITDA	354.95M	348.53M	169.78M	290.26M	234.02M	148.48M
Net Income	249.55M	259.61M	104.30M	705.88M	608.35M	200.14M
Balance Sheet
Total Assets	8.47B	8.12B	7.86B	7.28B	6.05B	3.52B
Cash, Cash Equivalents and Short-Term Investments	81.87M	80.28M	49.92M	83.80M	164.01M	254.94M
Total Debt	3.14B	2.98B	2.86B	2.42B	2.06B	1.26B
Total Liabilities	3.65B	3.39B	3.28B	2.83B	2.55B	1.62B
Stockholders Equity	4.82B	4.73B	4.57B	4.45B	3.50B	1.90B
Cash Flow
Free Cash Flow	188.36M	151.31M	115.84M	70.78M	128.14M	127.95M
Operating Cash Flow	300.92M	295.73M	302.39M	218.39M	174.10M	135.08M
Investing Cash Flow	-204.72M	-113.74M	-689.44M	-780.36M	-1.76B	-644.31M
Financing Cash Flow	-87.45M	-151.96M	356.52M	487.95M	1.50B	317.16M

Dream Industrl REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.58
• 50DMA: Positive
• 100DMA: Positive
• 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:DIR.UN, the sentiment is Positive. The current price of 12.58 is above the 20-day moving average (MA) of 12.27, above the 50-day MA of 12.22, and above the 200-day MA of 11.49, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 78.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
CRT.UN	82 Outperform	C$3.89B	8.39	11.49%	5.76%	4.11%	35.99%
GRT.UN	73 Outperform	C$4.97B	17.23	5.31%	4.18%	9.81%	-3.42%
DIR.UN	72 Outperform	C$3.61B	14.69	5.27%	5.56%	7.31%	74.70%
SRU.UN	68 Neutral	C$4.38B	17.47	5.03%	7.22%	0.48%	96.32%
FCR.UN	68 Neutral	C$4.03B	16.24	6.18%	4.71%	-0.83%	-28.93%
NXR.UN	67 Neutral	C$774.24M	9.51	7.32%	8.07%	0.41%	78.32%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Dream Industrl REIT Corporate Events

Dream Industrial REIT Appoints New Chief Operating Officer

Dream Industrial REIT has appointed Gord Wadley as its new Chief Operating Officer, effective January 1, 2026. Wadley, who has been with Dream Office REIT since 2011, will oversee portfolio operations, including property management and leasing. His extensive experience and leadership are expected to enhance the company’s operational platform and drive efficiencies as Dream Industrial REIT continues to expand. This strategic move is seen as a growth opportunity within the Dream Group, ensuring a seamless transition for Dream Office REIT and leveraging Wadley’s expertise to deliver value to stakeholders.

Dream Industrial REIT Receives Credit Rating Upgrade to BBB (High)

Dream Industrial REIT has announced an upgrade in its credit rating to BBB (high) from BBB by Morningstar DBRS, reflecting the strength and resilience of its urban industrial portfolio. This upgrade is expected to reduce borrowing costs on its existing credit facilities, which will positively impact the company’s financial performance, particularly as it looks to refinance upcoming debt maturities. The improved credit rating reinforces confidence in the REIT’s balance sheet strength and credit quality, potentially leading to enhanced financial outcomes for stakeholders.

Dream Industrial REIT Declares November 2025 Distribution

Dream Industrial REIT announced its November 2025 monthly distribution of 5.833 cents per unit, payable on December 15, 2025, to unitholders of record as of November 28, 2025. This announcement underscores the company’s commitment to providing secure distributions and reflects its strategic focus on maintaining a high-quality portfolio and investment-grade balance sheet, which are crucial for delivering strong returns to its stakeholders.

Dream Industrial REIT Achieves Strong Q3 2025 Financial Performance

Dream Industrial REIT reported strong financial results for Q3 2025, with a 4.3% increase in diluted funds from operations per unit and a 6.4% rise in comparative properties net operating income. The company has seen significant leasing momentum, transacting over 2.7 million square feet since the end of Q2, and continues to enhance its portfolio through acquisitions and strategic initiatives. The REIT’s focus on capital recycling and accretive opportunities is aimed at upgrading portfolio quality and driving additional value.

Dream Industrial REIT Declares October 2025 Distribution

Dream Industrial REIT announced its October 2025 monthly distribution of 5.833 cents per unit, payable on November 14, 2025, to unitholders of record as of October 31, 2025. This announcement reflects the company’s ongoing commitment to providing secure distributions and enhancing shareholder value, reinforcing its position in the industrial real estate market.

Dream Industrial REIT to Release Q3 2025 Financial Results

Dream Industrial REIT announced it will release its Q3 2025 financial results on November 4, 2025. The company will hold a conference call on November 5, 2025, to discuss these results, accessible via audio or webcast. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and demonstrate its financial performance, which could impact its market positioning and investor confidence.

Dream Industrial REIT Renews Shelf Prospectus and ATM Program to Bolster Growth

Dream Industrial REIT has renewed its universal base shelf prospectus and at-the-market equity program, allowing it to issue units, subscription receipts, and debt securities over a 25-month period. The ATM Program enables the Trust to issue up to $250 million of units from treasury, with proceeds intended for property acquisitions, development, and debt repayment. This strategic move is expected to enhance Dream Industrial’s financial flexibility and support its growth objectives, reinforcing its position in the industrial real estate market.

Dream Industrial REIT Declares September 2025 Distribution

Dream Industrial REIT announced its September 2025 monthly distribution of 5.833 cents per unit, payable on October 15, 2025, to unitholders of record as of September 30, 2025. This announcement underscores the company’s commitment to delivering secure distributions and highlights its strong portfolio and investment-grade balance sheet, which are central to its strategy of providing robust returns to stakeholders.