Dream Industrl REIT (DIR.UN) AI Stock Analysis

• Market Cap: C$3.48B
• Dividend Yield: 5.77%
• Average Volume (3M): 540.04K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.12
• Revenue Growth: 7.23%
• EPS Growth: 20.37%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 45
• Industry: REIT - Industrial
• EPS (TTM): 0.16
• Shares Outstanding: 284,961,880
• 10 Day Avg. Volume: 536,014
• 30 Day Avg. Volume: 540,037
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$13.80
• Price Target Upside: 13.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: C$13.50 ▲(11.29% Upside)

Dream Industrial REIT's strong financial performance and positive earnings call are the most significant factors contributing to the score. Technical analysis and valuation also support a favorable outlook, with stable momentum and an attractive dividend yield. The company's strategic acquisitions and robust balance sheet further enhance its growth prospects.

Positive Factors

Asset Acquisition

Dream Industrial acquired a property in Richmond Hill for $59.9 million, a region that is benefitting from strong industrial demand.

Earnings

Dream Industrial reported a solid quarter with same-property NOI up 5% and FFO per unit up 4%.

Negative Factors

Interest Expense

Greater interest expense from refinancing debt at market rates partially offset the solid operating performance.

Occupancy Levels

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 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 diversified tenant base, which includes logistics companies, retailers, manufacturers, and other businesses requiring industrial space. The company's key revenue streams are rental income from long-term lease agreements, often with built-in rent escalations, and ancillary income from property-related services. Dream Industrial REIT also seeks to enhance returns through strategic acquisitions of properties with high growth potential and by optimizing its existing portfolio through redevelopment and repositioning of assets. Additionally, the REIT benefits from strategic partnerships with institutional investors to co-invest in large-scale industrial projects, further driving revenue growth and shareholder value.

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	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
EBITDA	348.53M	169.78M	290.26M	234.02M	148.48M
Net Income	259.61M	104.30M	705.88M	608.35M	200.14M
Balance Sheet
Total Assets	8.12B	7.86B	7.28B	6.05B	3.52B
Cash, Cash Equivalents and Short-Term Investments	80.28M	49.92M	83.80M	164.01M	254.94M
Total Debt	2.98B	2.86B	2.42B	2.06B	1.26B
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: Positive
• Last Price: 12.13
• 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 12.13 is above the 20-day moving average (MA) of 11.91, above the 50-day MA of 11.74, and above the 200-day MA of 11.38, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 73.61 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	81 Outperform	C$3.86B	8.71	11.08%	5.92%	4.26%	72.02%
SRU.UN	78 Outperform	C$4.56B	20.70	4.42%	6.97%	7.01%	-15.80%
GRT.UN	76 Outperform	C$4.80B	14.74	6.18%	4.28%	9.87%	48.25%
DIR.UN	74 Outperform	C$3.48B	16.35	4.60%	5.77%	7.23%	20.37%
CRR.UN	69 Neutral	C$2.80B	―	-0.21%	5.93%	6.86%	92.60%
Sector *	60 Neutral	kr18.10B	20.02	2.74%	2.61%	2.27%	228.27%
HR.UN	56 Neutral	C$3.11B	―	-1.99%	6.28%	-5.67%	54.92%

Dream Industrl REIT Corporate Events

Dream Industrial REIT Reports Strong Q2 2025 Financial Results

Dream Industrial REIT reported strong financial results for Q2 2025, with a 4% growth in FFO per unit and a 5% increase in CP NOI. The company achieved a 96% occupancy rate, reflecting a positive leasing momentum. Significant acquisitions totaling over $540 million have expanded their portfolio, while strategic capital allocation and debt management efforts continue to enhance their financial position. Despite a decrease in net income due to fair value losses, the REIT’s overall asset base grew to $8.3 billion, driven by investments in joint ventures and development projects.

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 July 2025 Distribution

Dream Industrial REIT announced its July 2025 monthly distribution of 5.833 cents per unit, payable on August 15, 2025, to unitholders of record as of July 31, 2025. This distribution reflects the company’s ongoing commitment to providing secure returns to its investors, supported by its high-quality portfolio and investment-grade balance sheet, reinforcing its position in the industrial real estate market.

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 to Announce Q2 2025 Financial Results

Dream Industrial REIT announced it will release its Q2 2025 financial results on August 5, 2025, with a conference call scheduled for August 6. This announcement is part of the company’s ongoing efforts to keep stakeholders informed about its financial performance and strategic positioning in the industrial real estate market.

The most recent analyst rating on ($TSE:DIR.UN) stock is a Buy with a C$16.00 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 Completes C$200 Million Debenture Offering

Dream Industrial REIT has successfully completed a private placement of C$200 million in senior unsecured debentures, Series G, with a 4.287% interest rate maturing in 2030. The proceeds will be used to repay existing debt and for general purposes, with a strategic swap to Euros reducing the effective interest rate to 3.726%. This move is expected to enhance the trust’s financial flexibility and strengthen its market position, although the debentures will not be publicly traded.

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 June 2025 Distribution

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

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 Announces C$200 Million Debenture Offering

Dream Industrial REIT announced a private placement of C$200 million in senior unsecured debentures, Series G, maturing in 2030, with an interest rate of 4.287%. The proceeds will be swapped to Euros to lower the effective interest rate to 3.726%. The funds will be used to repay existing debt and for general purposes, addressing over 70% of 2025 debt maturities. The debentures are expected to be rated BBB with a Positive Trend by DBRS Limited, enhancing the company’s financial position and strategy to strengthen its balance sheet.

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 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.