Dream Industrial Real Estate Investment Trust (DIR-UN) Q4 2025 earnings summary

Executive summary

• FFO per unit grew 5% in 2025 to CAD 1.05, with resilience despite global trade volatility and a 70 bps increase in average debt cost due to refinancing over $800 million.

• Leasing velocity increased in H2 2025, with over 10 million sq ft leased at 30% spreads, and occupancy at 96.2% with 70% tenant retention.

• Ancillary revenue streams, including solar and private capital, outpaced core business growth and contributed meaningfully to FFO and cash flow.

• Enhanced access to capital with $850 million of dispositions at premiums, strengthening the balance sheet and scaling private capital partnerships.

• Net income was $170.1 million in 2025, down from $259.6 million in 2024, impacted by negative fair value adjustments and incentive fees on dispositions.

Financial highlights

• Diluted FFO per unit was CAD 0.27 in Q4 (up 5.3% YoY) and CAD 1.05 for the year (up 4.9% YoY).

• Comparative Properties NOI grew 8.4% in Q4 and 5.7% for the year; net rental income rose 8.3% to $385.0 million in 2025.

• Net asset value at year-end was CAD 16.60 per unit; unit price at year-end was $12.58.

• Net debt to EBITDA at year-end was 7.9x, with leverage expected to decrease as asset sale proceeds are deployed.

• Over CAD 700 million in liquidity after repaying facility draws; 2.4 million units repurchased in 2026 at CAD 13.08 average.

Outlook and guidance

• 2026 FFO per unit expected at CAD 1.08–1.10, with Q1 slightly lower than Q4 2025 but accelerating as proceeds are deployed.

• Comparative Properties NOI growth in H1 2026 to match Q4 2025 (8.4%), with full-year growth expected to exceed 2025.

• In-place occupancy forecasted to remain stable in the high 94%-low 96% range.

• Market rent growth anticipated to resume in H2 2026, led by Western Canada and small/mid-bay assets in Toronto and Montreal.

• Management expects continued strong results, supported by a robust leasing pipeline, capital recycling, and strategic growth initiatives.