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DREAM Unlimited Cl A (TSE:DRM)
TSX:DRM
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DREAM Unlimited Cl A
(TSX:DRM)
67Neutral
Positive Factors
Dividends
The company announced an 8% increase to its dividend, and it is now up 170% from 2020.
Financial Performance
Dream Unlimited continues to grow its recurring income and increase its liquidity at the same time.
Negative Factors
Earnings
For Q3/24, Dream Unlimited reported standalone FFO per diluted share of $0.09, down from $0.42 in Q3/23, largely due to a greater volume of land sales in Western Canada during the prior year.
Profitability
Costs are increasing, which could impact profitability.
DREAM Unlimited Cl A (DRM) vs. S&P 500 (SPY)
Market Cap
C$829.49M
Dividend Yield3.04%
Average Volume (3M)29.01K
Price to Earnings (P/E)4.4
Beta (1Y)1.63
Revenue Growth61.39%
EPS GrowthN/A
CountryCA
Employees500
SectorReal Estate
Sector Strength65
IndustryReal Estate - Development
Share Statistics
EPS (TTM)4.48
Shares Outstanding40,484,940
10 Day Avg. Volume18,704
30 Day Avg. Volume29,011
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.36
Price to Cash Flow (P/CF)-6.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$40.00Price Target Upside102.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
DREAM Unlimited Cl A Business Overview & Revenue Model
Company DescriptionDREAM Unlimited Corp. Class A (DRM) is a leading Canadian real estate company known for its extensive portfolio in residential and commercial property development, asset management, and renewable energy projects. The company is involved in the planning, development, and management of various real estate projects, including office, retail, industrial, and residential properties. DREAM Unlimited's operations span multiple sectors, including real estate development, asset management, and renewable energy, making it a diversified player in the industry.
How the Company Makes MoneyDREAM Unlimited Corp. generates revenue through several key streams. First, it earns income from the development and sale of residential and commercial properties. This involves acquiring land, developing the property, and selling it to end-users or investors. Secondly, the company makes money from rental income generated by its portfolio of income-producing properties, including office and retail spaces. Additionally, DREAM Unlimited provides asset management services, earning fees for managing real estate assets on behalf of other investors or institutional clients. The company is also involved in renewable energy projects, where it generates income from the production and sale of renewable energy. Strategic partnerships and joint ventures with other developers and investors further enhance its revenue potential and market reach.
DREAM Unlimited Cl A Financial Statement Overview
Summary
DREAM Unlimited Cl A shows revenue and net income growth, but operational efficiency and cash flow management challenges remain. The balance sheet reflects increased leverage, posing risks if not properly managed. Overall, while net income improved, operational and cash flow constraints need addressing for sustained growth.Income Statement
DREAM Unlimited Cl A showed a strong increase in revenue from 2023 to 2024, with a significant rise in gross profit margin. However, the company reported zero EBIT in 2024, which is concerning despite a high net income, indicating potential non-operating income influences. Net profit margin improvement is notable, but the absence of EBIT margin data suggests operational challenges.75
Positive
Balance Sheet
The company maintains a stable equity position with a healthy equity ratio. The debt-to-equity ratio has increased over recent years, indicating higher leverage. Despite increased assets, the rise in total debt raises concerns about financial risk management. Return on equity remains strong, supported by the recent net income improvement.70
Positive
Cash Flow
DREAM Unlimited Cl A experienced negative operating cash flow in 2024, pointing to potential liquidity issues. The free cash flow remains negative, although improved from the previous year, which suggests ongoing cash management challenges. The operating cash flow to net income ratio indicates difficulties in converting income into cash.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 624.51M | 386.95M | 343.77M | 325.92M | 347.62M | Gross Profit |
| 201.66M | 125.19M | 113.61M | 91.14M | 105.15M | EBIT |
| 0.00 | 114.20M | 99.35M | 133.90M | 145.50M | EBITDA |
| 304.89M | 68.31M | 106.88M | 140.34M | 152.62M | Net Income Common Stockholders |
| 187.86M | -117.08M | 164.44M | 110.03M | 159.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 83.88M | 60.20M | 47.63M | 52.56M | 185.12M | Total Assets |
| 3.92B | 3.88B | 3.96B | 3.49B | 2.84B | Total Debt |
| 1.88B | 1.82B | 1.64B | 1.31B | 768.62M | Net Debt |
| 1.79B | 1.76B | 1.59B | 1.25B | 583.50M | Total Liabilities |
| 2.42B | 2.47B | 2.40B | 2.07B | 1.44B | Stockholders Equity |
| 1.50B | 1.40B | 1.55B | 1.42B | 1.39B |
| Cash Flow | Free Cash Flow | |||
| -39.93M | -82.00M | -84.08M | -371.22M | -3.97M | Operating Cash Flow |
| -39.93M | -82.00M | -66.35M | 67.02M | -82.50M | Investing Cash Flow |
| 132.37M | -66.82M | -137.05M | -477.17M | 30.78M | Financing Cash Flow |
| -68.76M | 161.39M | 198.47M | 277.59M | -151.67M |
DREAM Unlimited Cl A Technical Analysis
Negative
19.71
Price Trends
20.83
Negative
21.83
Negative
23.13
Negative
Market Momentum
-0.30
Positive
39.73
Neutral
21.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRM, the sentiment is Negative. The current price of 19.71 is below the 20-day moving average (MA) of 20.10, below the 50-day MA of 20.83, and below the 200-day MA of 23.13, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 39.73 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DRM.
DREAM Unlimited Cl A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$4.31B | 19.03 | 4.50% | 7.26% | 9.46% | -42.77% | |
74 Outperform | C$384.00M | 11.52 | 2.70% | 3.59% | 10.87% | -46.32% | |
73 Outperform | C$3.50B | 17.08 | 5.20% | 5.24% | 6.55% | ― | |
72 Outperform | C$7.01B | 24.84 | 3.20% | 3.41% | 4.45% | ― | |
67 Neutral | C$829.49M | 4.41 | 12.93% | 3.04% | 61.39% | ― | |
63 Neutral | C$2.64B | ― | -2.29% | 5.97% | -6.92% | -310.05% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% |
* Real Estate Sector Average
Performance Comparison
TSE:DRM
DREAM Unlimited Cl A
19.90
2.37
13.52%
TSE:MRD
Melcor Developments
12.37
1.35
12.30%
TSE:FCR.UN
First Capital Realty
16.73
2.17
14.90%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
25.38
4.51
21.61%
TSE:HR.UN
H&R Real Estate ate Staple
10.05
1.69
20.22%
TSE:CAR.UN
Canadian Apartment
42.79
-0.22
-0.51%
DREAM Unlimited Cl A Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -6.32% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong operational performance with record profits in key divisions and successful strategic initiatives. However, significant caution was expressed due to external uncertainties, impacting areas like asset management earnings and market conditions in Regina. Overall, the positive highlights are balanced by the cautious outlook and external challenges.Highlights
Record Profits in Western Canada Land Division
The Western Canada land division achieved record profits since going public in 2013, generating substantial free cash flow and preselling $105 million in revenue for 2025, with expectations to secure an additional $60 million.
Growth in Asset Management
The asset management business closed a $1 billion joint venture in the Netherlands and announced plans for a $2 billion joint venture in Canada, with assets under management increasing by $3 billion in 2024 to reach $27 billion.
Expansion of Income Property Division
The income property division generated revenue growth, with $850 million of income properties owned. The company plans to start 500 rental units in Western Canada in 2025, projecting a development profit of $30 million with land at fair market value.
Strong Performance in Income Properties
The company's income properties, including those in the Distillery District and multifamily assets, performed well with high occupancy rates and the development of new rental units underway.
Increase in Dividend
Dream Unlimited increased its dividend, reflecting confidence in its cash flow and operational performance, with a preference to maintain a robust liquidity position.
Lowlights
High Uncertainty in Operating Environment
The company's cautious approach to liquidity reflects concerns about global economic uncertainty, potential tariffs, and political changes affecting the Canadian economy.
Decreased Earnings in Asset Management
The asset management segment saw a decrease in revenue and net margin compared to the previous year, driven by lower development fees recognized in the current period.
Challenges in Regina Market
While the Regina market holds potential, the current demand dynamics have not yet translated into increased home prices or demand similar to Saskatoon.
Reduced Activity in Share Repurchases
Despite high liquidity, the company has been cautious with share repurchases due to market uncertainties, opting to maintain flexibility in its capital allocation strategy.
Company Guidance
During the Dream Unlimited Corp.'s fourth-quarter conference call for the fiscal year 2024, several key metrics and guidance were highlighted. The company achieved its second-highest profits in total dollars, with ordinary income at $2.86 per share, marking the highest on record when excluding extraordinary events. The Western Canada land division ended 2024 with record profits and presold $105 million in revenue for 2025, aiming for an additional $60 million in presales. The asset management segment closed a $1 billion joint venture in the Netherlands and announced a $2 billion Canadian multifamily apartment joint venture, growing assets under management to $27 billion. The income properties division, valued at $850 million, continued to expand, with plans to start 500 rental units and 70,000 square feet of retail in 2025. The fourth-quarter pretax earnings reached $168 million, including a $157 million gain from the sale of the A-Basin. The company emphasized its strong liquidity position, with $367 million available as of December 31, 2024.DREAM Unlimited Cl A Corporate Events
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Dream Unlimited Reports Strong Q4 Results and Announces Dividend Increase
Positive
Feb 26, 2025
Dream Unlimited Corp. reported strong fourth-quarter results, highlighted by the sale of Arapahoe Basin, which generated a significant pre-tax gain. This sale, along with strategic acquisitions and expansions in their asset management and income properties divisions, positions Dream for continued growth. The company also announced a dividend increase, reflecting confidence in its financial stability and future prospects. Despite challenges in the office and GTA development markets, Dream has achieved its key objectives for 2024 and is focused on managing liquidity to navigate potential disruptions.
Product-Related AnnouncementsBusiness Operations and Strategy
DREAM Unlimited Expands Multi-Family Portfolio and Launches New Venture
Positive
Jan 28, 2025
DREAM Unlimited Corp. announced significant developments in its multi-family portfolio, including the completion of over 1,650 rental units in key areas like downtown Toronto, and the ongoing construction of nearly 2,000 more units. The company benefits from Toronto’s waiver of development charges on selected projects, enhancing the viability and acceleration of these developments. Furthermore, Dream has launched a new joint venture to invest up to $2 billion in Canadian multi-family properties, marking a significant expansion of its asset management platform and reinforcing its position in the rental market.
Business Operations and StrategyFinancial Disclosures
Dream Unlimited Announces Q4 2024 Financial Results Release
Neutral
Jan 27, 2025
Dream Unlimited Corp. has announced that it will release its financial results for Q4 2024 on February 25, 2025, followed by a conference call on February 26 to discuss these results. This announcement is crucial for stakeholders as it reflects Dream’s ongoing strategy to increase recurring income from its urban development projects and its commitment to innovation and effective investment practices.
Dream Unlimited Reports Significant Growth in Asset Management
Jan 9, 2025
Dream Unlimited Corp. has reported significant growth in its asset management platform, with a 51% increase in assets under management since the end of 2022, now totaling $27 billion. This growth is largely attributed to the expansion in multi-family rental and industrial sectors. The company recently closed a major acquisition in Europe and continues to expand its industrial platform through the Dream Summit venture. These developments are expected to enhance Dream’s market presence and recurring income potential.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.