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Dream Industrl REIT
(TSX:DIR.UN)
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Rating:65Neutral
Price Target:
C$15.00
â–²(7.99% Upside)
Action:Reiterated
Date:08/09/26
The score is primarily supported by solid operating/balance-sheet fundamentals and a constructive earnings-call outlook with raised NOI guidance and improving FFO/unit, but it is held back by the recent TTM free-cash-flow step-down and only modest/soft technical momentum. Valuation is helped by the dividend yield, though the P/E limits the upside from a valuation standpoint.
Positive Factors
NOI Growth & Raised Guidance
Management raised full‑year comparative NOI guidance and reported a 10.3% YoY NOI increase, indicating durable rental income growth from leasing spreads, occupancy gains and CPI/contractual rent steps. Sustained NOI expansion supports recurring cash flow and the REIT’s ability to fund distributions and acquisitions over the medium term.
Negative Factors
Weak Cash Conversion
A marked TTM decline in free cash flow versus prior year and weak cash conversion relative to earnings signals less internal funding available for distributions, redevelopments or debt paydown. Persistently lower FCF would constrain reinvestment flexibility and increase reliance on external financing over months to quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
NOI Growth & Raised Guidance
Management raised full‑year comparative NOI guidance and reported a 10.3% YoY NOI increase, indicating durable rental income growth from leasing spreads, occupancy gains and CPI/contractual rent steps. Sustained NOI expansion supports recurring cash flow and the REIT’s ability to fund distributions and acquisitions over the medium term.
Read all positive factors
Dream Industrl REIT (DIR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.62B
Dividend Yield5.35%
Average Volume (3M)516.36K
Price to Earnings (P/E)22.6
Beta (1Y)0.98
Revenue Growth7.63%
EPS Growth-22.77%
CountryCA
Employees170
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.58
Shares Outstanding280,252,470
10 Day Avg. Volume443,843
30 Day Avg. Volume516,358
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.77
Price to Sales (P/S)7.24
P/FCF Ratio26.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.30Price Target Upside17.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.02
Revenue Forecast (FY)C$534.04M
Dream Industrl REIT Business Overview & Revenue Model
Company Description
Dream Industrial REIT operates as an unincorporated, open-ended trust dedicated to real estate investments. As of September 30, 2020, it maintained and managed a substantial portfolio of 266 industrial properties, encompassing roughly 26.6 million...
How the Company Makes Money
Dream Industrial REIT primarily makes money by earning rental revenue from leasing industrial properties to tenants under contractual lease agreements. Revenue is generally driven by (i) base rent paid over the lease term, and (ii) additional reco...
Dream Industrl REIT Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a clear positive operational and financial trajectory: strong organic NOI growth (10.3% YoY), rising FFO per unit (+7.8% YoY), robust leasing momentum, active accretive acquisitions and strategic expansion into the U.K. and across Europe, plus materially increased property management income (~+28% YoY). These achievements were balanced against manageable and disclosed risks — transitory European vacancies, shorter lease terms on certain acquisitions, higher refinancing costs and development yield constraints — which management is addressing through redeployment of capital, leasing efforts and hedging/financing strategies. On balance, the highlights substantially outweigh the lowlights.Positive Updates
Strong Comparative Properties NOI Growth
Comparative properties NOI grew 10.3% year-over-year for the quarter, driven by healthy leasing activity and strong occupancy.
Negative Updates
European Occupancy Pressure — Transitory Vacancies
In-place occupancy in Europe was 92.5%, impacted by an anticipated transitory vacancy in Spain and a vacant value-add asset in the Netherlands that require leasing to restore occupancy and returns.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Comparative Properties NOI Growth
Comparative properties NOI grew 10.3% year-over-year for the quarter, driven by healthy leasing activity and strong occupancy.
Read all positive updates
Company Guidance
Management raised 2026 guidance, now expecting full‑year comparative properties NOI growth of 7–8% (up from 5.7% in 2025) and average in‑place occupancy in the high‑94% to low‑96% range; full‑year FFO per unit guidance remains $1.00–$1.10 but is expected to finish slightly above the midpoint, with Q2 diluted FFO/unit of $0.28 (up 7.8% y/y) and a Q2 FFO payout ratio of 63%. They also said leverage (currently 35.8% and net debt/EBITDA 6.6x) should trend back toward a targeted high‑30% leverage and run‑rate net debt/EBITDA in the mid‑7x range as capital is deployed; liquidity is about $750M and the second DCI JV tranche generated $353M of net proceeds. Management noted the recent distribution increase of 2.5% to an annualized $0.75/unit (effective Sept. 15), Chancery Gate won’t materially affect 2026 FFO but should contribute over 6–18 months, and transaction/deployment metrics include ~$515M of acquisitions placed/under contract (including $332M closed, ~2M sq ft) with going‑in yields ~6.3% and mark‑to‑market/target yields in the mid‑7s–8% range (private ventures ~7.5% stabilized unlevered).Dream Industrl REIT Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 523.47M | 507.95M | 466.22M | 443.11M | 369.57M | 289.81M |
| Gross Profit | 380.78M | 368.54M | 355.43M | 339.69M | 281.59M | 217.90M |
| EBITDA | 284.50M | 258.27M | 348.53M | 169.78M | 762.88M | 234.02M |
| Net Income | 168.51M | 170.07M | 259.61M | 104.30M | 705.88M | 608.35M |
Balance Sheet | ||||||
| Total Assets | 8.06B | 8.46B | 8.12B | 7.86B | 7.28B | 6.05B |
| Cash, Cash Equivalents and Short-Term Investments | 197.59M | 41.43M | 80.28M | 49.92M | 83.80M | 164.01M |
| Total Debt | 2.90B | 3.12B | 2.98B | 2.86B | 2.42B | 2.06B |
| Total Liabilities | 3.34B | 3.66B | 3.39B | 3.28B | 2.83B | 2.55B |
| Stockholders Equity | 4.72B | 4.79B | 4.73B | 4.57B | 4.45B | 3.50B |
Cash Flow | ||||||
| Free Cash Flow | 54.20M | 140.62M | 151.31M | 115.84M | 70.78M | 128.14M |
| Operating Cash Flow | 168.69M | 256.15M | 295.73M | 302.39M | 218.39M | 174.10M |
| Investing Cash Flow | 387.40M | -258.63M | -113.74M | -689.44M | -780.36M | -1.76B |
| Financing Cash Flow | -396.14M | -35.33M | -151.96M | 356.52M | 487.95M | 1.50B |
Dream Industrl REIT Technical Analysis
Negative
13.89
Price Trends
14.01
Negative
13.86
Negative
13.15
Negative
Market Momentum
-0.25
Positive
25.52
Positive
6.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DIR.UN, the sentiment is Negative. The current price of 13.89 is above the 20-day moving average (MA) of 13.64, below the 50-day MA of 14.01, and above the 200-day MA of 13.15, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 25.52 is Positive, neither overbought nor oversold. The STOCH value of 6.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DIR.UN.
Dream Industrl REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$5.26B | 14.20 | 6.51% | 4.12% | 8.73% | 11.84% | |
73 Outperform | C$4.03B | 7.27 | 12.79% | 5.70% | 4.77% | 24.61% | |
70 Outperform | C$4.81B | 4.66 | 22.27% | 4.00% | 0.07% | 295.34% | |
66 Neutral | C$4.59B | 28.78 | 3.03% | 6.91% | -1.11% | -31.75% | |
66 Neutral | C$713.66M | 13.23 | 4.92% | 8.71% | 2.17% | 77.48% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | C$3.62B | 22.59 | 3.53% | 5.35% | 7.63% | -22.77% |
* Real Estate Sector Average
TSE:DIR.UN
Dream Industrl REIT
13.10
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9.78%
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Dream Industrl REIT Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Dream Industrial REIT Lifts Distribution on Strong Q2 Results and Expansion Drive
Positive
Aug 5, 2026
Dream Industrial REIT reported strong second-quarter 2026 operating performance, including 10.3% comparative properties NOI growth and a 7.8% rise in diluted FFO per unit to $0.28, driven by robust leasing and rental spreads. Net rental income inc...
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.