Dream Unlimited (TSE:DRM) executives highlighted what they described as a strong finish to 2025 and outlined several transactions and development milestones they believe set up continued momentum into 2026 and beyond, during the company’s fourth-quarter 2025 conference call held Tuesday.
Fourth-quarter results shaped by prior-year comparisons
Chief Financial Officer Meaghan Peloso said net earnings on a standalone basis were CAD 56.2 million for the fourth quarter, compared with CAD 135.7 million a year earlier. Peloso noted the prior-year quarter included a CAD 157 million gain on the sale of “A Basin,” completed in November of the prior year, making quarter-over-quarter comparisons less meaningful.
Asset management boosted by incentive fees and new ventures
In the quarter, the asset management division generated CAD 61.5 million in revenue and CAD 52.9 million in net margin, up significantly from the comparative period. Peloso said results included CAD 44.8 million of incentive fee income from DIR stemming from a CPP joint venture transaction. She added that after year-end, 75% of that incentive fee was paid in cash, with the remainder taken in REIT units.
Chief Responsible Officer Michael Cooper said 2025 underscored the contributions of the company’s three major business lines—asset management, Western Canada development, and income properties. Cooper pointed to two major ventures announced during 2025: a CAD 2 billion venture to acquire value-add apartments in Canada, and a CAD 3 billion industrial venture with CPP announced in the fourth quarter. Cooper said these represented CAD 5 billion of new ventures, with about CAD 1.1 billion invested on behalf of clients to date. He also said the Summit Venture continued to expand, adding “about half a billion” last year.
Cooper said he expects base fees and transaction fees to continue growing, and noted he anticipates incentive fees “on an annual basis for some amount,” while also expressing hope the firm could add new clients in 2026. In response to an analyst question about visibility into additional AUM growth, Cooper said the company sees a “fair amount of dry powder” and suggested market conditions appear more favorable, with increased interest from both foreign and domestic investors. However, he cautioned that the company does not have specific visibility into imminent announcements.
Western Canada development: strong activity, with some sales pushed into 2026
Dream’s Western Canada development segment produced CAD 113.5 million of revenue and CAD 42.5 million of net margin in the fourth quarter. Peloso said the company recorded 438 lot sales, 204 acre sales, and 38 housing occupancies during the period. Results included a 201 raw acre sale in Edmonton to a joint venture, generating CAD 19.7 million in revenue and CAD 15.8 million in net margin.
Peloso said period-to-period fluctuations, excluding the joint venture, were driven largely by the mix of lot and acre sales. She also highlighted continued progress on land pre-sales, noting that as of Feb. 20 the company had secured nearly CAD 150 million in lot and acre sales commitments expected to be recognized between 2026 and 2027—an increase of CAD 28 million from the prior quarter.
Cooper said Western Canada results in 2025 were “a little bit sloppy” due to not receiving all required municipal servicing in time to recognize some sales, which he said pushed revenue into 2026. When asked whether 2025 lot sales reflected any pull-forward from 2026, Cooper said there was no pull-forward and instead reiterated that some lots expected to sell in 2025 would not be recognized until the first and third quarters of 2026.
Cooper also said he has seen somewhat lower homebuyer volume over the last four to six months, but expressed hope for improvement in the spring. He discussed progress across projects including Coopertown, Homewood, and Alpine Park, and said 2026 should be a good year, with a stronger impact expected in 2027 as additional approvals come through.
Income properties: NOI growth, leasing progress, and a large pipeline
The income properties portfolio generated CAD 16.7 million in revenue and CAD 8.4 million in net operating income (NOI) in the fourth quarter, up from CAD 15.6 million in revenue and CAD 7.1 million in NOI a year earlier. Peloso attributed the increase primarily to lease-up activity across completed apartments in Western Canada.
Peloso said the portfolio included nearly 1,100 multifamily units that were stabilized or in lease-up as of quarter-end, with a further 950 units under construction expected to be completed over the next 24 months—an expected driver of continued NOI growth.
Cooper said the income properties business is “just under CAD 1 billion of assets,” and he expects it could reach CAD 1.4 billion over the next couple of years. He also discussed operating conditions in Ontario, saying rental rates were not as strong as the company would like due to competition from a large number of condo rentals. Still, he said the company reached 95% occupancy in its Toronto buildings during the year, including Maple House and Pine House, and noted Block 347 had entered leasing.
On expected NOI mix, Cooper responded to an analyst question by saying apartments would represent “100%” over half of total NOI by 2027, adding that 2026 could be close.
Capital allocation, liquidity, and development updates
Peloso said Dream spent just over CAD 8.9 million on share repurchases in 2025, which she described as about 2% of the float. She said the company had been “fairly active” with buybacks so far in 2026 and expects repurchases this year to be at least double 2025 levels.
Dream also announced a dividend increase. Peloso said the company paid CAD 27 million to shareholders in 2025 and will raise the annual dividend to CAD 0.70 per share from CAD 0.65 per share.
On the balance sheet, Peloso reported liquidity of CAD 324 million at quarter-end. She said the company had CAD 215 million of debt maturities in 2026, including about CAD 60 million that auto-renews annually. She said Dream was in advanced discussions with lenders regarding maturities in the first and second quarters and would provide updates during the year.
Cooper also provided updates on projects within the company’s “other” category. He said that as of Jan. 5, Dream completed the first draw on a CAD 600 million loan for 49 Ontario Street and had brought in a 10% partner. He also described a restructuring at Quayside, saying the project was split into condo lands and apartment lands, resulting in Dream Group owning 100% of the apartments while the partner owns 100% of the condo units. Cooper said the change was intended to help proceed with CMHC to complete funding commitments, and he said the company was in good shape to potentially start the development prior to the end of the year.
In the Q&A session, Cooper also confirmed that Dream Impact would own 25% of 1,200 units at Quayside, with 900 units owned by a private fund, while noting the partnership structure is complex due to affordable housing elements.
About Dream Unlimited (TSE:DRM)
DREAM Unlimited Corp is a real estate company. The company’s divisions include Asset management; Stabilized income generating assets; Urban development – Toronto and Ottawa and Western Canada community development. It generates maximum revenue from the Asset Management segment. Its segments are Recurring income and Development.
