Dream Unlimited Corp. ($DRM)

Hi, everyone. Good afternoon. It is 1:00. We will now call the meeting to order. My name is Joanne Ferstman, and I'm the Chair of the Board of Dream Unlimited Corp. Welcome to our Annual Meeting. I will act as chair of the meeting. Robert Hughes will act as Secretary of the meeting. With the consent of the meeting, I appoint Daniela Munoz and Josette Koffyberg of Computershare Investor Services, Inc. as scrutineers for the meeting. We will first proceed with our formal business. To expedite the formal part of the meeting, Robert Hughes, a shareholder, will move and Shannon Macri also a shareholder, will second all motions. After our formal business is concluded, our management team will make a brief presentation, and then there will be an opportunity to ask questions. Please hold questions that do not relate to the formal business of the meeting until that time. I have an affidavit from Computershare as to the mailing of the notice of availability of proxy materials and the form of proxy. Our circular and other meeting materials were made available through the notice and access system. I would ask the secretary to place the affidavit for the meeting and to keep the affidavit with the corporate records. The scrutineers have advised that there are at least 2 individuals present who are shareholders or who represent by proxy, shareholders who hold at least 10% of the votes attached to all outstanding shares. As a result, we have a quorum, and I declare the meeting to be regularly called and properly constituted for the transaction of business. The first item of business is the presentation of the company's 2025 annual report, which contains the company's audited financial statements for 2025 and the report of auditors thereon. I note that the secretary has placed before the meeting a copy of the 2025 annual report. The next item of business is the election of directors. As stated in our circular, 7 directors are to be elected at the meeting and 7 nominees are named. They are: Michael Cooper, James Eaton, Richard Gateman, Jane Gavan, Duncan Jackman, Jennifer Lee Koss, and myself. Rob, will you please propose the nominees for election?

To nominate the individuals listed in the management information circular dated April 16, 2026, for election as directors of the company to hold office for the upcoming term.

I second the motion.

Thank you. Are there any further nominations? Seeing no further nominations, I declare the nominations closed. Are there any questions on this motion? Seeing none. Based on the proxies received, I would mention that each of the 7 nominees received the majority of votes cast in favor of their election as director. After the meeting, we will issue a press release with detailed voting results. Given the proxies received and as the number of persons nominated for election as a director is equal to the number of directors to be elected I propose with the consent of the meeting not to take a formal vote on the election of directors. Therefore, I confirm that the motion has been carried and the 7 persons who were nominated have been elected as directors by acclamation. I would like to take this opportunity to thank Vincenza Sera, who is not standing for reelection, for her service and contributions over the years. The next item of business is the appointment of auditors. The Audit Committee and the Board have recommended the reappointment of PricewaterhouseCoopers LLP, chartered professional accountants as auditors. Can I have a motion, please?

I move that PricewaterhouseCoopers be appointed auditors of the company and its subsidiaries for the ensuing year and that the Board of Directors be authorized to fix their remuneration.

I second the motion.

Are there any questions on this motion? The meeting will now vote on the motion. I propose to take the vote by a show of hands. I would ask those registered shareholders and duly appointed proxy holders who are in favor of the motion to please raise your hand. Any votes withheld? The motion is carried. PricewaterhouseCoopers LLP have been reappointed as auditors and the directors authorized to fix their remuneration. The formal items of business as set out in the notice of meeting have now been dealt with. As there is no further business to come before this meeting, I declare the formal part of the meeting to be concluded, and the formal meeting adjourned. I now invite management to make a short presentation. After the presentation, we will have a question period.

Good afternoon, everyone. Thank you for taking the time to be here with us today. For this part of the presentation, Michael and I would like to talk about some of our key highlights from the year and discuss some of the significant transformations we've seen across our various communities and divisions. We'd be happy to take any questions at the end of the presentation. Overall, 2025 was a very strong year for Dream. Our key operating segments had some other highest level of earnings. We maintained very strong liquidity for the duration of the year and achieved healthy growth across the business. Over the last year, we've really focused on describing the business in simpler terms. Our key operating segments are income properties, asset management and Western Canada development which accounts for over 80% of the value of the company. All 3 divisions performed extremely well in 2025 and asset management and income property specifically represent significant areas of growth for the business. Using December 31 figures, Dream's net asset value is $55 per share, which represents an 8% growth year-over-year, including dividends. Since Q1 2025 we've created $170 million in value for shareholders between NAV growth and $20 million in dividends. While our NAV is down slightly to 4 years ago, what's meaningful to see is the composition has been shifting dramatically. In 2021, our 3 core segments represented less than half of our NAV for $20 per share compared to $45 today. Now looking at our segments. As of December 31, we had just under $1 billion of income properties on Dream's balance sheet. This reflects only our direct ownership in assets such as the distillery, certain apartments and retail and commercial assets. Over the last 5 years, NOI from our income property portfolio has generated a CAGR of about 20%. And with our strong construction progress and robust pipeline, we believe that this growth rate is sustainable for quite some time. We currently have about $800 million of income properties that are completed or under lease-up, made up of 1,100 multifamily units and 750,000 square feet of retail and commercial space. In addition, we also have another 1,000 units today and 126,000 square feet of commercial space under construction. Now if we were only to complete what is under active development today, which is obviously not our intention, our income property balance grows to $1.4 billion on stabilization in a few years. So we're making good progress realizing growth across the portfolio. And as we start construction on new builds, we have a very clear path to achieving meaningful scale for the portfolio. To look at some of the specifics within the division, since 2020 at Western Saskatoon, Dream has delivered over 550 purpose-built rental units in our Brighton community made up of apartments, townhomes and single detached homes with an additional 400 units currently under construction. Supported by planned schools, retail amenities, development is expected to continue at a pace of 150 to 200 units annually, with landholdings in place to accommodate several hundreds more. Shifting to Ottawa. We're making great construction progress at Odenak, which is jointly owned among Dream entities in a local non-for-profit. The project is comprised of 2 towers, making up 600 units in total or 200 at our direct ownership and is adjacent to a transit station in LeBreton Flats. Both towers are now topped off, and we expect to start leasing units at the end of this year. Also in Ottawa at no more than a 5-minute walk from Odenak, we have Block 204 at Zibi under construction. We expect to start leasing up early next year, adding another 245 units to our rental portfolio. Moving on to Asset Management. In 2025, we generated $80 million of margin, which included an incentive fee of $45 million from our Dream Industrial contract. We currently have $20 billion in fee-earning AUM across 3 public companies at 8 private vehicles. This includes our latest joint venture with Dream Industrial REIT and CPP investments, which we announced at the end of 2025. Since the sale of Dream Global in 2019, we've been focused on growing our private asset management mandates. Over the last 7 years, we've grown these mandates from $1.6 billion to $14 billion today, and they now represent more than double our public fee-earning AUM. We've done so by partnering amongst the global institutions who combined manage over $2 trillion of funds further solidifying our reputation in the sector. This past week, we were very pleased to see Dream's inclusion in the private equity real estate Top 100 list, which ranks the world's largest managers by capital raised over the last 5 years. We ranked 31st globally and, first, based on Canadian headquarters. And this recognition highlights our expanding presence among leading global real estate asset managers. As of December 31, we had $28 billion in assets under management, with over $5 billion of acquisition capacity available across our various mandates and an extensive deal pipeline, we are well set up to see the continued AUM growth we keep speaking of. Over the past decade, Dream has successfully crystallized $550 million in value from 2 of our asset management contracts and with the business now being valued at $633 million in our NAV and AUM continuing to grow, we remain very well positioned to continue delivering value to our shareholders. Today, over 60% of our total AUM is concentrated in industrial, with another 25% in residential-type assets. This represents a significant evolution in our Asset Management business since 2013, reflecting our deliberate shift towards sectors with stronger fundamentals. In 2025, we generated $100 million in fees across our various asset management contracts. We've been consistently increasing our recurring fee streams and expect 2026 to further increase as the CPP joint venture mandate becomes active. For the purposes of calculating our view of NAV, we're using our annualized net margin from our Q1 2026 results. On a comparative basis, net margin for this segment increased by 31% year-over-year due to AUM growth and higher incentive fee income relative to the comparative period. Lastly, our third segment is Western Canada development. This makes up 8,500 acres in Saskatchewan and Alberta with our most valuable landholdings being Holmwood in Saskatoon and Alpine Park in Calgary. We're currently active in 3 communities in Saskatoon, Hampton Village, The Willows and the primary one being Holmwood. You can see Holmwood located within the East End, which represents about half the market share of the entire city. Within Holmwood itself, we have 7 communities and Brighton being the first, has been active since 2015, and we're wrapping up that community later this year. We're now actively servicing the first 270 acres in Brighton East, which is right in the middle of the screen. In Calgary, we are active in Alpine Park having completed 180 acres to date. We're currently under development on another 200 acres, seen in orange, which includes 60,000 square feet of commercial, which has been leasing incredibly well as well as our very first apartment building in Calgary, which is expected to occupy next year. In Regina, we currently own 3,200 acres with Eastbrook winding down this year. Coopertown will be our main active development go forward. Coopertown is our 1,200-acre development located in the northwest quadrant of the city. Upon full build-out over the next 20 years, these lands will accommodate 24,000 residents. This past September, we were able to officially break ground at Coopertown and have started servicing the first 200 lots, now one quarter of these lots we retained for our internal housing division, and the remaining have been presold to third parties to be recognized in income leader in 2026. In 2025, we generated land margin of $54 million, which included $16 million of raw acre sales. Based on presales achieved to date, we're expecting 2026 land margin to be at least comparable, if not better, to last year's after normalizing for the JV income. So with that, I'll now pass it over to Michael.

So Meaghan went over the 3 divisions we've been talking about for a couple of years. And I think what you'll see is each of those divisions are getting stronger and stronger. I think the sort of evolution of our income properties, that's $1 billion of income properties we own on our balance sheet, not including any indirect interest in any of the other entities or joint ventures. It's going to grow wicked fast. Our asset management business, that was a -- 5 years, we ranked #1 in Canada and #31. But that 5 years is the entire time we've been doing institutional money management with GIC and CPP and others as investors, we've got pretty good credentials, literally when we meet anybody in the world. Meaghan mentioned that the few investors we have currently have over $2 trillion of assets. That's a lot of money to talk to about new ideas. So we think we're actually picking up momentum in that area. And last year, I've been thinking about this now for 364 days. I was saying that for 31 years, we've been trying to diversify away from Western Canada. And I think we're not -- I'll never say that again. So Western Canada has been doing very well. Just for kind of a sense of the numbers, we invested $4 million in 1994. We've invested some more since, but we've taken out way more just in terms of like how we've grown that business. but we've actually had profits in excess of $1 billion on that original $4 million investment. And we basically haven't bought any land since -- of any significance since 2014. As she showed that -- Meaghan showed that we had sold some broad land. We've gone from 10,000 acres to 8,500 in 15 years. So we got a lot of land, and that business is going to grow. So when we think about Western Canada, it is our development of the lands in Western Canada, but we are growing income properties there very quickly, and it's going to be significant. So Western Canada affects, not just our development segment, but also our income property segment. And this just keeps happening. So number one, the GDP in Alberta and Saskatchewan is much higher than everywhere else. Newfoundland with oil has also been doing well. But it's pretty significant. I mean, this is a story of the country, Ontario and Quebec are on the far right. That's not good because they're the biggest, but we're happy where we are. This is interesting because we talk to some of the others about Toronto and the country having negative population growth. While that is true, Saskatchewan, Alberta continue to grow, and that's going to only increase as we get -- we start reducing the temporary workers and get back to having 400,000 net population growth with immigrants. So I think that looks pretty good going forward. The Saskatchewan lease provinces with a 12% jump in private capital investments for 2025. If you want to get this country growing, you got to invest in Saskatchewan, Alberta, they're incredibly well positioned for growth that's higher than we were showing. It's quite diverse, the types of investments that are being made in Saskatchewan, and we're going to see a lot more coming in the very, very near future. This one's kind of interesting because the Orange's income properties, we've actually sold quite a few income properties over that time. We'll get into it a bit later, but apartments are becoming a much bigger factor. The blue is asset management. It's grown a lot. We'll talk a little bit about that in NAV. And Western Canada has actually been growing. The development part of Western Canada has been growing. So it's at or near the best numbers in the last 2 years in its history. This next portion is showing off our AI skills. We used to have to -- and I would say this, it's our AI skills from a guy in planning and strategy, not even a guy in creative or anything else, which I think is interesting. But trust me, no jobs will be lost. We'll get into, but this is also -- we wanted to show people what we actually do for a living. And it's kind of fast, but let's see how this goes. So this is what we've been doing in West Don Lands and the right is the Indigenous Hub. On the left is -- what's on the left, Jamie? Block 347, which is finished its use. That's 855 units at least 40% of it so far this year. So we're making tremendous progress. And those are income properties. They do not -- none of this is going to be on Dream Unlimited's balance sheet. They're through the Impact Fund and the Impact Trust. This is a different version, a different view. That's Block 8 -- just -- I think it's -- a lot of people want to know only about numbers, and it's incredibly important. But you'll see as we go through this, we're transforming Toronto East. This one is pretty dramatic is in the last 7 years. And another one -- I'm going to go back on this one because -- this one's kind of a joke. If you look at it closely, you'll see that the only thing that's happened is a bicycle lane. There you go. And Jose Maldonado, one of the most senior people at our company, thought that was really, really funny and asked me to present it. And I'm glad it got a chuckle. This is the whole shebang. And we've completed about 4,500 units in this area. We have land for another 5,500. That's direct and indirect, will get into that in a second. And it doesn't include that we probably have sites for 3 [ mobilities ] somewhere between 1,200 and 1,500 units at the Distillery District that cost us 0. Dream Unlimited share of the land cost very, very little and most of it's historic. So -- that's a big area. This is industrial that we built in the industrial REIT in Balzac, 1 million square feet. This one, it was just a farm. If you take a look, there's a semi-circle there. And when Meaghan showed you our lands, that semi circle is going to have 6 apartments. The fifth building is now topped off, the sixth building is under construction. And this is tiny and we hardly put any equity in. But these are the only rental that is available and, right, we do it all ourselves. This is going to be about 800 units in that semi circle. The other side is another 800. We're getting 1,600 units which should be worth about $500 million that will build over 10 years. And it's literally a posted stamp on the 3,000 acres we own. We have an unlimited amount of land to build as much apartment as is needed. One of the things that's interesting in Saskatoon is they have a very, very high homeownership rate. They're around 75%. They just haven't had a lot of apartments. So there's going to be -- I mean the numbers we're getting from the city is we're probably building half the rate they need. So this is like the type of thing I was saying is really going to contribute. We're building to a 6 cap. The rents we're getting are the best we've ever had there. They've been a little bit flat, depends on the month, up 2%, 3%. We just finished the third building, fully stabilized, got to take out financing every single number in it met or exceeded the pro forma that we did 4 years ago. So this is really working and generating -- like generally, what it does is there's $2 million of net operating income $1.1 million goes to pay interest, $400,000 goes to pay down principal. We get $500,000 a year. So that's a pretty good amount, multiply it by 6. Now we're getting to $3 million of NOI a year free cash flow. And the building is going up by 3% or 4% a year on $500 million or $600 million. That's a decent contributor to our overall value. These are Zibi, what we've done there. Again, we're creating something where there was nothing. And a lot of these are income properties Dream owns half of Zibi. So some of these are on our balance sheet. And this is what we've done in the last 10 years there. We're getting close to halfway through, Zibi. So it's going to increase as much. You saw Odenak which is really going to change the skyline in Ottawa. It is 400 meters from the Parliament buildings. It's between the new library, the $400 million library and the LRT, it looks outstanding, and that's going to be a very successful building for us. Just -- it's a lot. And now I think we'll get back to numbers. I want to focus a little bit on what's in the other category. It's about 18% of the entire business. So we got equity interest in a lot of our entities and most of that's going pretty good. Dream Impact Trust, if -- let's see. So we were talking about office before. Dream Industrial started. They're over a $4 billion market cap. Things are going great. We've got a bunch of joint ventures. I mean, Alex said it quickly, but our platform is 74 million square feet of industrial, which is -- includes the U.S. and Europe, but the Canadian portion, we haven't found anybody who has a larger portfolio than we do. It's interesting too because in 2018, we had a little bit of industrial, a lot of office. So that's been a big focus. But Dream Industrial is going really well. Then we had Dream Impact Trust, which is in the epicenter of bad. It's in Toronto, and it's in residential, and it owns land and it has debt. And we've been working hard at it. We've reduced the debt we showed by about $170 million over the last 3 years. We've moved a lot of assets into development. We've got great concessions from various governments. We're building at a relatively low cost compared to what it was in 2023. So we've got these unbelievable apartment buildings in downtown Toronto that are going to have a lower cost base than what it would have been in 2023. We need lower rents than we used to need and we got 20-year debt that really eliminates any concern about refinancing on completion and stabilization or even after 10 years. So there's a lot of time to compound rental rate growth and amortization to great buildings. And Dream Unlimited is very pleased with this business and has a big commitment to it. We look at our commitment extremely carefully to make sure that Dream Unlimited is getting a good return. We loaned $50 million. We've created a facility for $50 million. It's just a little bit more than half drawn and it's secured by the stuff that is creating value. So we're very comfortable with the money we have in this business. 49 Ontario is referring to -- at 1,200 units. It's going to be done in a couple of years, will be done after the condos are completed. The rents we're using in this building are significantly lower than we would have used 3 years ago. The construction costs are low, and it's being built very quickly at a very good price. That's going to be a big winner for us. Key side is the old Sidewalk Labs site, it's been talked about now for 15 years. And I don't call it people, but [ Saring ] and her team have done an amazing job dealing with every level of government to put together a deal that we hope will start October 1. And we've got great support from CMHC, great support from the city of Toronto. And this is on the waterfront. They're redoing the Parliament Slips, It's going to be amazing. They're rerouting Queens Quay and they're putting all that money into the Cherry Street parks and area there. So when this is finished, there's going to be a subway about 3 blocks north and right in front of it is going to be an LRT for the waterfront is going to have public transportation at a level that most places don't have. It's going to have 2 lines right there. So we're quite excited about it and the work that's gone into it. We've got a few boutique hotels. We took this over from a partner, and they're beautiful buildings. It's -- we're not really in the hospitality business. We've been around it forever. This year is going a lot better than last year. And we are pleased with the progress on it. It's perfectly fine. We paid down some debt. They're good buildings and good hotels. So we're pretty pleased to have them, but it's not necessarily core. Condo developments, we hardly have any in the entire Dream platform. But we have Brighton that is with -- Dream owns 7.75% of this, and it's partners with some large developers. It's on the waterfront, it's an incredible site, but it just caught up in what everybody else is. And if you take a look at the bottom right photo, the little building, which is only 73 stories, is under construction. It's, I think, at the 40th floor. If you haven't seen it, it's kitty-cornered to Roy Thompson Hall. This is designed by Frank Gehry. The curtain wall is amazing. And as -- it just reflects, it's so interesting, and it makes it a really, really attractive building. It's on time, on budget, and we've got about 87% sold. We think that will be pretty good. But again, on this one, we own 8.3%. So these are nice to haves. They're not something that we worry about. We're very much on top of them. But for Dream Unlimited, we'll get into in a second, but our company has a lot of things that are going great and those things generate a lot of cash. This is more of the Dream Unlimited stuff. Canary Block 13, that's a great site. We got that as part of completing the Pan Am Athlete's Village. We ascribed the $55 value to it, but we actually got it for nothing. It was just part of what we got at the end. One of my favorites is 318 Parliament, which bought for $1.8 million 20 years ago. It's now over 800,000 square feet. We can carry these sites forever. West Don Lands Block 20 has no debt on it. Victory Silos is through Impact Trust and Dream owns a little bit of it. Again, I think it's 12.5%. It's a great site, Quayside, and it's an okay shape Broadview and Eastern. This is just north of East Harbor. Like these sites are amazing. But Dream is in a position where if we do it next year or 2031 or in 2036, the company is in great shape. So this is the grand finale. We are pretty diligent the way we look at the company and look at the net asset value. If you were in the last couple of meetings, in the last meeting in Dream Office, we showed some numbers, I think they're conservative. But we kind of use the same approach to everything we do. We've been keeping track of this. I think -- it helps us understand where we're adding value. In the last year, we've added -- it's actually the last 9 months, but we're not annualizing. It's just 8% growth since March 31, 2025. That's on what was then $51 a share, 22% on the stock price, and let's get into where it comes from. Is it resting? There we go. Yes. So the core segments, Western Canada, it's still a big one. Asset management has gone from a variable number to $15 a share. We'll get into how we do it. Income properties is coming along. It's going to make a difference. And the other segment is pretty evenly divided between a little bit of the land we own for $3, our shares in the various entities and some loans and other assets. Here we go. We don't make up the accounting rules, but effectively, some things are carried to market, some things aren't. What we do is pretty simple. The land is on our books for cost. And asset management is kind of on our books for cost, but it doesn't cost anything. So dealing with asset management first, we're using $630 million. Last year, we were at 16x. This year, we're down to 13x. It really doesn't include anything for a very, very small component of the $300 million incentive fee at Dream Industrial. What I would say is that $633 million, Meaghan referred to between 2015 and 2019, we sold 2 contracts with $550 million. We were a smaller company and actually those contracts weren't as lucrative as what we're doing now. So we think that's a pretty conservative number. The Western Canada development, this is really interesting. We track it very closely. We're looking to -- we bid on a piece of land, 320 acres in Calgary. And we had an idea that we bring some partners in it was strategically beneficial, but we didn't want to use up a lot of cash. We got smoked, absolutely smoked. And it's a land that's not in an active community now. It's -- this is in Alpine Park. It's not in the first neighborhood. It's in the last neighborhood where we have 1,100 acres. And the numbers that we're using are provable and the income that we're making is provable. So I think these numbers are pretty solid. Let's see, and this one is just a similar -- our core business is getting better everywhere. And Dream Office, we said, hey, it's really stable now. Dream Impact has got incredible assets, needs a little bit of liquidity, but it's pretty special, very, very small compared to the power of the company. And I think this year, we're going to do very well. Hopefully, we'll do better than last year without even the incentive fees. Thank you. So Happy to answer any questions if people have any.

Just to clarify, [indiscernible]. How much of it is attributable to Dream Impact...

Say it again.

How much is attributable to Dream Impact that mean [indiscernible] or less? And how much is attributable to Dream Office.

Dream Impact so we use the stock price. So we have 7 million shares at $1.60 is $11.2 million divided by 42. It would be under $0.30. There's some smiles in the back. We talk about it a lot, but it's under $0.30. Dream Office is 70 -- about $110 million, so it's $2.50. So together, it's $3. Okay. Well, I do want to say that when we look at our business, we all work together regardless of the entities. And our team has done an unbelievable job over the last 12 months. I think everything that was struggling is in better shape and anything that's good has gotten better. So I want to thank the team. In Western Canada, our team is doing more innovative, more exciting things than anybody else. In our development business in Ontario we're leading in many different areas. Our #1 in Canada raising funds. So there's a lot of things that are going great, and it's only because of the dedication of the team at Dream. So I'd like to thank them. And yes, Paul, from where is it?

What's the timeline on for credit development.

Just like everybody else, we've got extra density. I think that's what developers do when they can't sell a single thing. So it's kind of infinite at this pace.

[indiscernible]

Yes, yes, we've done about -- is it 1,000 units [ Krystal ] that we've done? Yes. Yes. So -- go ahead.

[indiscernible]

No, I said Infinity, and that might be an exaggeration, but it's definitely not 2 or 3 years. The issue is there's very little absorption. Costs are high, and we need the market to change. We've got a lot of low rise there, a lot of townhouses, that could -- we're seeing it with HST and development charge changes we're seeing in the 905. -- there's been some improvement, so that might help on the condos, there's a lot of stuff that needs to happen before new condos make a lot of sense. So when you're stopped in traffic, the time to get somewhere is infinity and it kind of feels like that, but it's going better than that. It's just -- emotionally, that's what it feels like. Okay. Thank you, everybody.