tiprankstipranks
Trending News
More News >
Dream Unlimited Cl A (TSE:DRM)
:DRM
Advertisement

DREAM Un Cl A (DRM) AI Stock Analysis

Compare
79 Followers

Top Page

TSE:DRM

DREAM Un Cl A

(TSX:DRM)

Rating:75Outperform
Price Target:
C$24.00
▲(14.45% Upside)
The overall score reflects strong valuation metrics and positive technical indicators, which are offset by financial performance concerns, particularly in revenue growth and cash flow management. Corporate events provide a positive outlook for future growth.
Positive Factors
Development Projects
Dream Unlimited is well positioned for sustained cash flow growth due to progress on major development projects.
Dividend Growth
The company announced an 8% increase to its dividend, bringing it up 170% from 2020.
Financial Performance
For fiscal year 2024, diluted FFO per share was up 101% from the previous year, driven by greater land sales in Western Canada and stronger operating performance.
Negative Factors
Asset Management Performance
FFO from the asset management segment declined due to a significant non-recurring fee earned in the prior-year period.
Quarterly Performance
Dream Unlimited reported a soft quarter as lot sales are more back-end loaded, and the prior-year period was boosted by a large fee from the asset management division.
Valuation Concerns
Our NAV per share estimate for Dream is now at a 53.5% discount to the current share price.

DREAM Un Cl A (DRM) vs. iShares MSCI Canada ETF (EWC)

DREAM Un Cl A Business Overview & Revenue Model

Company DescriptionDream Unlimited Corp. formerly known as Dundee Realty Corporation is a real estate investment firm. The firm provides real estate asset management and advisory services including sourcing, acquiring, managing, and developing commercial and residential real estate primarily in Western Canada. It invests in the real estate markets across the globe. The firm also seeks to invest in renewable energy infrastructure and power projects with a focus on wind, hydro, and solar in North American. Dream Unlimited Corp. was founded in 1996 and is based in Toronto, Canada.
How the Company Makes MoneyDREAM Unlimited Corp makes money primarily through its diverse portfolio of real estate investments. Key revenue streams include income from property management services, leasing of office and retail spaces, and sales of residential properties. The company also generates earnings from its asset management services, where it manages real estate and infrastructure assets on behalf of institutional clients. Additionally, DREAM Unlimited has strategic partnerships and joint ventures that contribute to its earnings by leveraging shared expertise and resources to develop large-scale projects. The company focuses on sustainable practices and urban development, which enhances its appeal to investors and tenants, further contributing to its revenue growth.

DREAM Un Cl A Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q4-2024)
|
% Change Since: -1.83%|
Next Earnings Date:Nov 18, 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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 Un Cl A Financial Statement Overview

Summary
DREAM Un Cl A exhibits strong profit margins and operational efficiency. However, declining revenue and high leverage raise potential risks. Cash flow constraints further indicate liquidity challenges. The company must address revenue growth and improve cash management to enhance financial stability.
Income Statement
72
Positive
The income statement reveals a solid gross profit margin of 35.2% TTM, with a net profit margin of 31.8%. However, the revenue growth rate has declined by 14.38% TTM, indicating a potential slowdown in top-line growth. The EBIT margin remains healthy at 23.3%, and EBITDA margin is robust at 48.6%, showcasing operational efficiency. Despite these strengths, the revenue drop is a concern.
Balance Sheet
65
Positive
The balance sheet shows a high debt-to-equity ratio of 1.26, which may pose risks considering industry standards. However, a return on equity of 11.5% TTM indicates decent profitability for shareholders. The equity ratio stands at 38.6%, suggesting a balanced capital structure. The high leverage warrants cautious monitoring.
Cash Flow
58
Neutral
Cash flow analysis indicates a negative free cash flow growth rate TTM, highlighting cash management challenges. The operating cash flow to net income ratio of 0.03 reflects weaker cash generation relative to net income. Free cash flow to net income ratio is negative, aligning with cash flow constraints. Overall, liquidity and cash generation are areas of concern.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue624.51M386.95M343.77M325.92M347.62M
Gross Profit201.66M125.19M113.61M91.14M105.15M
EBITDA304.89M68.31M106.88M140.34M152.62M
Net Income187.86M-117.08M164.44M110.03M159.22M
Balance Sheet
Total Assets3.92B3.88B3.96B3.49B2.84B
Cash, Cash Equivalents and Short-Term Investments83.88M60.20M47.63M52.56M185.12M
Total Debt1.88B1.82B1.64B1.32B768.62M
Total Liabilities2.42B2.47B2.40B2.07B1.44B
Stockholders Equity1.50B1.40B1.55B1.42B1.39B
Cash Flow
Free Cash Flow-39.93M-82.00M-84.08M-371.22M-3.97M
Operating Cash Flow-39.93M-82.00M-66.35M67.02M-82.50M
Investing Cash Flow132.37M-66.82M-137.05M-477.17M30.78M
Financing Cash Flow-68.76M161.39M198.47M277.59M-151.67M

DREAM Un Cl A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price20.97
Price Trends
50DMA
20.88
Positive
100DMA
19.66
Positive
200DMA
20.94
Positive
Market Momentum
MACD
0.03
Positive
RSI
46.50
Neutral
STOCH
46.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRM, the sentiment is Neutral. The current price of 20.97 is below the 20-day moving average (MA) of 21.46, above the 50-day MA of 20.88, and above the 200-day MA of 20.94, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 46.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DRM.

DREAM Un Cl A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$900.93M11.025.58%7.75%-26.40%
68
Neutral
C$932.84M9.954.86%4.22%3.93%-29.40%
62
Neutral
AU$3.04B8.41-1.53%5.05%16.79%54.28%
$501.94M-3.37%7.98%
57
Neutral
C$665.32M-10.24%4.59%-1.10%61.83%
$538.75M27.442.47%8.09%
$457.74M3.7716.19%3.40%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DRM
DREAM Un Cl A
20.97
-3.18
-13.17%
TSE:MRG.UN
Morguard NA REIT UN
17.90
1.56
9.55%
ARESF
Artis Real Estate Investment
5.23
0.69
15.20%
TSE:HOM.UN
BSR Real Estate Investment Trust
17.01
0.05
0.29%
EFRTF
Nexus Real Estate Investment
5.76
0.62
12.06%
MHCUF
Flagship Communities REIT Investment Trust
18.28
5.05
38.17%

DREAM Un Cl A Corporate Events

Business Operations and StrategyFinancial Disclosures
Dream Unlimited Corp. Advances Western Canadian Developments Amid Strong Q2 Results
Positive
Aug 12, 2025

Dream Unlimited Corp. reported its second-quarter results, highlighting significant progress in its long-term business plan despite market uncertainties. The company is advancing its Western Canada land business with new communities in Saskatoon and Regina, and expanding Alpine Park in Calgary. Dream’s asset management business has grown by $2.5 billion over the past year, contributing to solid overall performance. The company’s strategic developments are expected to enhance profitability and provide growth opportunities, particularly in Regina, where the new Coopertown community will accommodate 21,000 residents over 20 years.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Dream Unlimited and CentreCourt Launch Major Rental Development in Toronto
Positive
Aug 11, 2025

Dream Unlimited Corp. and CentreCourt Developments have announced a joint venture to develop a mixed-income rental community at 49 Ontario St. in downtown Toronto, addressing the city’s urgent housing needs. The project will include 1,226 multi-family units, with 22% designated as affordable housing, supported by significant government financing and development charge waivers. This collaboration marks a significant expansion of their partnership into purpose-built rental developments, leveraging CentreCourt’s construction efficiency and Dream’s expertise in public-private partnerships.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Financial Disclosures
Dream Unlimited Corp. to Announce Q2 2025 Financial Results
Neutral
Jul 17, 2025

Dream Unlimited Corp. announced it will release its Q2 2025 financial results on August 12, 2025, followed by a conference call on August 13, 2025, to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Dividends
Dream Unlimited Corp. Declares Quarterly Dividend for Class A and B Shares
Positive
Jun 19, 2025

Dream Unlimited Corp. has announced a quarterly cash dividend of $0.1625 per Class A Subordinate Voting Share and Class B Common Share, payable on June 30, 2025, to shareholders of record on June 23, 2025. This announcement underscores Dream’s commitment to providing value to its shareholders and reflects its strong financial position and successful asset management operations.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Dream Unlimited Corp. Announces Key Decisions from Annual Shareholder Meeting
Positive
Jun 3, 2025

Dream Unlimited Corp. announced the successful election of all nominated directors at its annual shareholder meeting. Additionally, PricewaterhouseCoopers LLP was appointed as the auditor, and an amendment to the deferred share incentive plan was approved, increasing the number of units by 300,000. These decisions reflect Dream’s ongoing commitment to robust governance and strategic growth, potentially enhancing its market position and stakeholder value.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Dream Unlimited Corp. Highlights Growth Strategies at AGM
Positive
Jun 3, 2025

At its Annual General Meeting, Dream Unlimited Corp. provided an investor update, highlighting key business segments, strategies, and growth drivers aimed at enhancing returns and income quality. The company reported an updated net asset value per share of $51.64, compared to a standalone book equity per share of $30.53 as of March 31, 2025. This update reflects Dream’s strategic focus on improving financial performance and market positioning, potentially impacting stakeholders positively by showcasing the company’s robust asset management capabilities and growth potential.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 14, 2025