Dream Industrl REIT (DIR.UN) AI Stock Analysis

• Market Cap: C$3.35B
• Dividend Yield: 5.93%
• Average Volume (3M): 632.09K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.10
• Revenue Growth: 6.68%
• EPS Growth: 14.72%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Industrial
• EPS (TTM): 0.16
• Shares Outstanding: 283,594,850
• 10 Day Avg. Volume: 721,897
• 30 Day Avg. Volume: 632,089
• PEG Ratio: -1.23
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.41
• 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$13.50
• Price Target Upside: 14.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: C$13.00 ▲(10.08%Upside)

Dream Industrial REIT scores well due to its solid financial performance, attractive valuation, and positive technical indicators. The company's proactive management and strategic initiatives, despite some external uncertainties, position it well for potential growth. Positive corporate events further enhance investor confidence.

Positive Factors

Earnings Growth

Solid leasing spreads drive FFO per unit growth of 6%.

Lease Expiry

The expiry of below-market leases, particularly in Canada, should drive mid- to high single-digit SP-NOI and FFOPU growth in 2025.

Market Valuation

Dream Industrial’s units currently trade at an implied cap rate of 6.8%, or a 27.4% discount to our NAV estimate, compared to a weighted-average discount of 31.8% for its Canadian listed industrial REIT peers.

Negative Factors

Debt Profile

Concerns over the REIT's debt profile (short duration at an average cost well below market) and external asset management structure are more than adequately priced into the stock.

Interest Expense

Greater interest expense from refinancing debt at market rates as the weighted average interest rate rose.

Occupancy Rates

Softening fundamentals lead to a drop in occupancy, with occupancy dropping 80 bps quarter-over-quarter to 94.5%.

Dream Industrl REIT Business Overview & Revenue Model

Company Description

Dream Industrial REIT (DIR.UN) is a real estate investment trust focused on owning and managing a diversified portfolio of industrial properties. The company operates primarily in North America and Europe, offering a range of industrial real estate solutions including warehouses, distribution centers, and light industrial facilities. Its core services include property management, leasing, and development of industrial real estate assets tailored to meet the needs of tenants across various industries.

How the Company Makes Money

Dream Industrial REIT generates revenue primarily through rental income from its extensive portfolio of industrial properties. The company leases these properties to a diversified base of tenants, ensuring a steady stream of rental payments. Additionally, Dream Industrial REIT may engage in property development and redevelopment projects, which can contribute to its earnings by increasing the value and rental potential of its assets. The REIT also benefits from strategic acquisitions and dispositions of properties, allowing them to optimize their portfolio and enhance returns. Significant partnerships with industry players and financial institutions may further support their operations and growth strategy.

Dream Industrl REIT Financial Statement Overview

Summary

Dream Industrial REIT demonstrates solid financial health characterized by strong revenue growth and efficient cost management. The balance sheet reflects a strong equity base and stable leverage, while cash flows indicate robust operational cash generation. Despite some fluctuations in net income affecting profitability metrics, the overall financial position remains strong, supporting future growth and stability.

Income Statement

Dream Industrial REIT has shown strong revenue growth over the years, with a notable increase in total revenue from $235.9 million in 2020 to $475.6 million in the TTM (Trailing-Twelve-Months). The gross profit margin consistently remains high, with the latest at 75.7% for TTM, indicating efficient cost management. However, the net profit margin has seen fluctuations due to variations in net income, influenced by non-operational factors. EBIT and EBITDA margins are strong, reflecting robust operational efficiency.

Balance Sheet

The company maintains a solid equity base, with stockholders' equity rising to $4.82 billion in TTM. The debt-to-equity ratio is relatively stable, reflecting prudent financial leverage management. Return on Equity (ROE) has been volatile due to fluctuating net income but remains decent given the industry standards. The equity ratio stands strong at 59.2% as of TTM, indicating a strong capitalization structure.

Cash Flow

Operating cash flow generation remains strong, supporting the company's ability to fund operations and investments. Free cash flow has been positive, with a growth rate of 4.9% in the most recent period. The operating cash flow to net income ratio is healthy, indicating good cash conversion. However, the free cash flow to net income ratio has been impacted by varying net income levels.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
475.56M	466.22M	443.11M	369.57M	289.81M	235.95M
	Gross Profit
360.13M	355.43M	339.69M	281.59M	217.90M	168.88M
	EBIT
290.13M	317.46M	303.52M	287.18M	232.24M	148.46M
	EBITDA
322.20M	348.53M	169.78M	290.26M	234.02M	148.48M
	Net Income Common Stockholders
232.52M	259.61M	104.30M	705.88M	608.35M	200.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.71M	80.28M	49.92M	83.80M	164.01M	254.94M
	Total Assets
8.14B	8.12B	7.86B	7.28B	6.05B	3.52B
	Total Debt
2.97B	2.98B	2.86B	2.42B	2.06B	1.26B
	Net Debt
2.93B	2.90B	2.81B	2.34B	1.89B	1.01B
	Total Liabilities
3.32B	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
158.68M	151.31M	115.84M	70.78M	128.14M	127.95M
	Operating Cash Flow
279.58M	295.73M	302.39M	218.39M	174.10M	135.08M
	Investing Cash Flow
-99.39M	-113.74M	-689.44M	-780.36M	-1.76B	-644.31M
	Financing Cash Flow
-256.22M	-151.96M	356.52M	487.95M	1.50B	317.16M

Dream Industrl REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 11.81 is above the 20-day moving average (MA) of 11.14, above the 50-day MA of 10.65, and below the 200-day MA of 11.82, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 70.54 is Negative, neither overbought nor oversold. The STOCH value of 85.71 is Negative, 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$3.87B	8.70	11.23%	5.72%	4.54%	68.32%
SRU.UN	78 Outperform	C$4.39B	18.62	4.75%	7.21%	10.06%	-19.26%
DIR.UN	76 Outperform	C$3.35B	14.74	4.92%	5.93%	6.68%	14.72%
GRT.UN	76 Outperform	C$4.34B	14.06	5.70%	4.81%	10.23%	47.96%
CRR.UN	69 Neutral	C$2.72B	―	-0.49%	6.05%	6.96%	85.15%
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
HR.UN	58 Neutral	C$2.80B	―	-3.89%	5.62%	-6.43%	-35204.55%

Dream Industrl REIT Corporate Events

Dream Industrial REIT Confirms Trustee Elections and Auditor Appointment

Dream Industrial REIT announced the successful election of all nominees for trustees at its annual unitholders meeting. PricewaterhouseCoopers LLP was appointed as the auditor for the upcoming year, with trustees authorized to set the auditor’s remuneration. This decision reinforces the company’s commitment to maintaining a high-quality portfolio and investment-grade balance sheet, which supports its objective of delivering strong returns to unitholders.

The most recent analyst rating on ($TSE:DIR.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Dream Industrl REIT stock, see the TSE:DIR.UN Stock Forecast page.

Dream Industrial REIT Declares May 2025 Distribution

Dream Industrial REIT announced its May 2025 monthly distribution of 5.833 cents per unit, payable on June 13, 2025, to unitholders of record as of May 30, 2025. This announcement reflects the company’s commitment to providing secure distributions and highlights its stable financial strategy, which could positively impact stakeholders by ensuring consistent returns.

The most recent analyst rating on ($TSE:DIR.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Dream Industrl REIT stock, see the TSE:DIR.UN Stock Forecast page.

Dream Industrial REIT Achieves Strong Q1 2025 Financial Performance

Dream Industrial REIT reported strong financial results for Q1 2025, with a 5.8% increase in diluted funds from operations per unit and a 3.1% rise in comparative properties net operating income. The company closed over $460 million in acquisitions, adding significant square footage and land to its portfolio, and signed new leases and renewals with substantial rental rate increases in key regions. Despite a decrease in net income due to fair value losses in investment properties, the REIT maintained a stable asset base and implemented a normal course issuer bid program, reflecting its strategic focus on portfolio growth and financial stability.

Dream Industrial REIT Declares April 2025 Monthly Distribution

Dream Industrial REIT announced its April 2025 monthly distribution of 5.833 cents per unit, payable on May 15, 2025, to unitholders of record as of April 30, 2025. This announcement reflects the company’s ongoing commitment to providing secure distributions and enhancing value for its stakeholders, supported by its high-quality portfolio and investment-grade balance sheet.

Dream Industrial REIT to Announce Q1 2025 Financial Results

Dream Industrial REIT announced that it will release its financial results for the first quarter of 2025 on May 6, 2025. The company will host a conference call on May 7, 2025, to discuss these results, providing stakeholders with insights into its financial performance and strategic positioning in the industrial real estate market.

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.