Dream Industrl REIT (DIR.UN) AI Stock Analysis

• Market Cap: C$3.42B
• Dividend Yield: 5.61%
• Average Volume (3M): 555.72K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.15
• Revenue Growth: 7.31%
• EPS Growth: 74.70%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.16
• Shares Outstanding: 285,711,330
• 10 Day Avg. Volume: 669,792
• 30 Day Avg. Volume: 555,721
• PEG Ratio: 0.09
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 7.33
• P/FCF Ratio: 22.60
• 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$14.00
• Price Target Upside: 12.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$13.00 ▲(4.17% Upside)

Dream Industrial REIT's overall score is driven by strong financial performance and positive earnings call sentiment, indicating stable profitability and growth prospects. The valuation is attractive, supported by a reasonable P/E ratio and high dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive aspects.

Positive Factors

Revenue Growth

Consistent growth in FFO and NOI indicates strong revenue generation capabilities, driven by increased rents and successful leasing, supporting long-term financial stability.

High Occupancy and Leasing Success

High occupancy rates and successful leasing efforts enhance cash flow stability and indicate strong demand for the company's industrial properties.

Strong Financial Liquidity

Robust liquidity and proactive debt management provide financial flexibility, enabling strategic investments and mitigating refinancing risks.

Negative Factors

Longer Lease Negotiations

Extended lease negotiations can delay revenue realization and affect occupancy rates, potentially impacting short-term cash flow and growth.

Higher Interest Expenses

Higher interest expenses from refinancing can strain profitability and cash flow, affecting the company's ability to fund growth initiatives.

Challenges in Leasing Pace

Trade tensions and slower leasing pace can hinder revenue growth and occupancy rates, challenging the company's ability to maintain its growth trajectory.

Dream Industrl REIT Business Overview & Revenue Model

Company Description

Dream Industrial REIT (DIR.UN) is a real estate investment trust focused on acquiring, owning, and managing a diversified portfolio of industrial properties across North America. The REIT primarily targets logistics and distribution centers, warehouses, and light manufacturing facilities, capitalizing on the growing demand for industrial space driven by e-commerce and supply chain optimization. By providing high-quality, strategically located assets, Dream Industrial REIT aims to deliver sustainable income and capital appreciation to its unitholders.

How the Company Makes Money

Dream Industrial REIT generates revenue primarily through leasing its industrial properties to a diverse range of tenants, including logistics companies, manufacturers, and retailers. The company's revenue model is based on long-term leases, which provide stable cash flow and predictable income. Key revenue streams include rental income from these leases, as well as potential increases in rental rates over time through lease escalations. Furthermore, the REIT may benefit from strategic partnerships with logistics firms and other tenants that require specialized industrial space, enhancing its occupancy rates and reducing tenant turnover. Additionally, the company may engage in property acquisitions and developments to expand its portfolio, creating further revenue opportunities.

Dream Industrl REIT Financial Statement Overview

Summary

Dream Industrial REIT demonstrates solid profitability with strong gross and net profit margins. The balance sheet reflects prudent leverage, though return on equity is low. Cash flow generation is positive, but there are concerns about cash conversion efficiency. Overall, the company is in a stable financial state with room for improvement in operational efficiency.

Income Statement

Dream Industrial REIT shows strong profitability with a high gross profit margin of 75.73% and a net profit margin of 48.89% for TTM. The revenue growth rate is modest at 1.72%, indicating stable growth. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting potential efficiency issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.62, reflecting a balanced approach to leverage. Return on equity is relatively low at 4.93%, indicating limited profitability from equity investments. The equity ratio stands at 57.84%, showing a strong equity base relative to total assets.

Cash Flow

Free cash flow growth is strong at 19.62%, and the free cash flow to net income ratio is healthy at 56.76%. However, the operating cash flow to net income ratio is low at 40.80%, suggesting potential issues in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	483.72M	466.22M	443.11M	369.57M	289.81M	235.95M
Gross Profit	369.75M	355.43M	339.69M	281.59M	217.90M	168.88M
EBITDA	305.79M	348.53M	169.78M	290.26M	234.02M	148.48M
Net Income	217.56M	259.61M	104.30M	705.88M	608.35M	200.14M
Balance Sheet
Total Assets	8.27B	8.12B	7.86B	7.28B	6.05B	3.52B
Cash, Cash Equivalents and Short-Term Investments	42.59M	80.28M	49.92M	83.80M	164.01M	254.94M
Total Debt	3.01B	2.98B	2.86B	2.42B	2.06B	1.26B
Total Liabilities	3.49B	3.39B	3.28B	2.83B	2.55B	1.62B
Stockholders Equity	4.78B	4.73B	4.57B	4.45B	3.50B	1.90B
Cash Flow
Free Cash Flow	189.82M	151.31M	115.84M	70.78M	128.14M	127.95M
Operating Cash Flow	304.79M	295.73M	302.39M	218.39M	174.10M	135.08M
Investing Cash Flow	-129.11M	-113.74M	-689.44M	-780.36M	-1.76B	-644.31M
Financing Cash Flow	-255.48M	-151.96M	356.52M	487.95M	1.50B	317.16M

Dream Industrl REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 12.48 is above the 20-day moving average (MA) of 12.20, above the 50-day MA of 12.24, and above the 200-day MA of 11.37, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 38.80 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	75 Outperform	C$3.78B	8.12	11.49%	6.08%	4.11%	35.99%
GRT.UN	75 Outperform	C$4.66B	14.30	6.18%	4.32%	9.87%	48.25%
SRU.UN	72 Outperform	C$4.46B	20.28	4.42%	6.98%	7.01%	-15.80%
DIR.UN	71 Outperform	C$3.42B	16.00	5.27%	5.61%	7.31%	74.70%
CRR.UN	66 Neutral	C$2.75B	-714.49	-0.21%	6.01%	6.86%	92.60%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HR.UN	52 Neutral	C$2.91B	-30.02	-1.99%	6.56%	-5.67%	54.92%

Dream Industrl REIT Corporate Events

Dream Industrial REIT Achieves Strong Q3 2025 Financial Performance

Dream Industrial REIT reported strong financial results for Q3 2025, with a 4.3% increase in diluted funds from operations per unit and a 6.4% rise in comparative properties net operating income. The company has seen significant leasing momentum, transacting over 2.7 million square feet since the end of Q2, and continues to enhance its portfolio through acquisitions and strategic initiatives. The REIT’s focus on capital recycling and accretive opportunities is aimed at upgrading portfolio quality and driving additional value.

The most recent analyst rating on ($TSE:DIR.UN) stock is a Buy with a C$13.50 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 October 2025 Distribution

Dream Industrial REIT announced its October 2025 monthly distribution of 5.833 cents per unit, payable on November 14, 2025, to unitholders of record as of October 31, 2025. This announcement reflects the company’s ongoing commitment to providing secure distributions and enhancing shareholder value, 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$14.00 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 to Release Q3 2025 Financial Results

Dream Industrial REIT announced it will release its Q3 2025 financial results on November 4, 2025. The company will hold a conference call on November 5, 2025, to discuss these results, accessible via audio or webcast. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and demonstrate its financial performance, which could impact its market positioning and investor confidence.

The most recent analyst rating on ($TSE:DIR.UN) stock is a Buy with a C$14.00 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 Renews Shelf Prospectus and ATM Program to Bolster Growth

Dream Industrial REIT has renewed its universal base shelf prospectus and at-the-market equity program, allowing it to issue units, subscription receipts, and debt securities over a 25-month period. The ATM Program enables the Trust to issue up to $250 million of units from treasury, with proceeds intended for property acquisitions, development, and debt repayment. This strategic move is expected to enhance Dream Industrial’s financial flexibility and support its growth objectives, 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$14.00 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 Declares September 2025 Distribution

Dream Industrial REIT announced its September 2025 monthly distribution of 5.833 cents per unit, payable on October 15, 2025, to unitholders of record as of September 30, 2025. This announcement underscores the company’s commitment to delivering secure distributions and highlights its strong portfolio and investment-grade balance sheet, which are central to its strategy of providing robust returns to stakeholders.

The most recent analyst rating on ($TSE:DIR.UN) stock is a Buy with a C$14.00 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 Declares August 2025 Distribution

Dream Industrial REIT announced its August 2025 monthly distribution of 5.833 cents per unit, payable on September 15, 2025, to unitholders of record as of August 29, 2025. This announcement reflects the company’s commitment to delivering secure distributions and enhancing shareholder value, 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$14.50 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’s Strategic Growth Shines in Earnings Call

Dream Industrial REIT’s latest earnings call painted a picture of robust growth and strategic maneuvering, despite facing some challenges in early 2025. The company showcased strong leasing performance, strategic acquisitions, and financial growth, positioning itself well for future expansion. The overall sentiment was positive, highlighting the company’s proactive strategies in capital recycling and development.