DALLAS–(BUSINESS WIRE)–Hyphen Solutions, a leader in cloud-based residential construction technology, and informXL, the foremost data visualization platform, are excited to announce the expansion of their partnership. This enhanced collaboration integrates informXL’s robust analytics capabilities with Hyphen Solutions’ two flagship Enterprise Resource Planning (ERP) systems, BRIX and Hyphen HomeFront, to provide unparalleled efficiency and data management for Home Builders.

Hyphen BRIX: Revolutionizing Home Building Operations

Hyphen BRIX, a comprehensive ERP solution with a focus on North American Home Builders, continues to innovate in streamlining residential construction operations. In 2022, it facilitated the issuance of over 543,000 purchase orders, demonstrating its efficacy in automating tasks and connecting field staff with back-office operations. This integration with informXL will further empower Builders to extract actionable insights from their data, enhancing decision-making and operational efficiency.

Hyphen HomeFront: A Synthesis of Build Process and Data Management

Hyphen HomeFront, tailored for mid to large-size Home Builders, offers an intuitive ERP solution that encompasses the entire build process from sales to service and warranty. Its seamless integration with major accounting systems like QuickBooks and Sage underscores its adaptability. The collaboration with informXL will enable Builders to harness data more effectively, improving build times and reducing errors through enhanced information management.

informXL: At the Forefront of Data-Driven Decision Making

informXL takes pride in turning complex ERP data into actionable insights, aiding Builders in cost control, employee efficiency and executive decision making. As informXL grows, with over 100 years of combined Home Builder experience and servicing over 250 Builders, their partnership with Hyphen Solutions reflects a commitment to innovation and industry leadership in reporting and process solutions.

Hyphen Solutions: Celebrating 25 Years of Industry Leadership

Marking its 25th anniversary in 2024, Hyphen Solutions remains committed to connecting systems, data and teams in residential construction. Serving a third of new homes built in America, Hyphen Solutions is dedicated to providing software solutions that drive economical outcomes and further improve collaboration in the construction industry.

This enhanced partnership between Hyphen Solutions and informXL symbolizes a shared vision of innovation and efficiency. By integrating informXL’s data analysis expertise with Hyphen’s cutting-edge ERPs, this collaboration is set to redefine the landscape of residential construction technology.

Contacts

Jessica Katz

VP of Marketing

Hyphen Solutions

Phone: (972) 728-8100

Email: jkatz@ihyphen.com

Erin Morris

Director of Client Relations

informXL

Phone: (304) 676-5159

Email: erin@informxl.com

TORONTO & NEW YORK–(BUSINESS WIRE)–The Real Brokerage Inc. (NASDAQ: REAX), the fastest growing, publicly traded real estate brokerage, today announced that its Chairman and Chief Executive Officer, Tamir Poleg, will present at the 8th Annual Evercore ISI Payments & Fintech Innovators Forum in New York on Thursday, February 29, 2024 at 10:30 a.m. ET. A live webcast of the presentation will be available at the link below, and a replay will be available shortly after the conclusion of the presentation on the investor relations section of the company’s website at https://investors.onereal.com/.

Presentation Details:

Date: Thursday, February 29, 2024

Time: 10:30 a.m. ET

Webcast link: https://wsw.com/webcast/evercore41/reax/2363904

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports more than 15,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses. Additional information can be found on its website at www.onereal.com.

Contacts

For additional information, please contact:

Ravi Jani

Vice President, Investor Relations and Financial Planning & Analysis

investors@therealbrokerage.com
908.280.2515

For media inquiries, please contact:

Elisabeth Warrick

Senior Director, Marketing, Communications & Brand

elisabeth@therealbrokerage.com
201.564.4221

The business services leader continues to expand its footprint with its latest acquisition.

CINCINNATI–(BUSINESS WIRE)–Cintas Corporation (Nasdaq: CTAS) has acquired SITEX, a Kentucky-based, family-owned supplier of uniform and facility service programs.

SITEX was founded by the Sights family in Henderson, Kentucky in 1961. Currently, Wes Sights serves as CEO of SITEX, which has five different locations servicing customers in a four-state region, including Illinois, Indiana, Kentucky and Tennessee.

“The Sights family has grown SITEX into a strong regional provider of quality apparel and facility service solutions to their customers in the central Midwest,” said Scott Garula, President and COO of Cintas’ Rental Division. “They’ve built a successful company with a well-earned reputation for delivering outstanding customer and employee experiences. We look forward to welcoming SITEX’s customers and employees to Cintas in the coming months.”

“Our customers and employees have always been and remain our primary focus for any decision we make,” said Wes Sights, CEO of SITEX. “The opportunity for SITEX to become part of the industry-leading Cintas team allows us to offer more services and products for our customers and capitalize on Cintas’ supply chain support while still delivering the highest level of service.”

About Cintas Corporation

Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

Contacts

Michelle Goret, Cintas Vice President of Corporate Affairs | goretm@cintas.com, 513-972-4155

Allegations of prejudice against top lenders highlight inaccuracy and bias of credit report algorithms, creating “redlining 2.0.”

NEW YORK–(BUSINESS WIRE)–VeriFast, the AI-powered Verification-as-a-Service platform that automates financial analysis and decision making for tenant screening, mortgage underwriting, and other verticals, responded today to the upcoming Senate investigation into the discrimination by mortgage lenders. In 2022, Navy Federal Credit Union (NFCU) rejected more than half of conventional mortgage applications from African Americans. Innovative solutions, including objective, data-driven application processes that don’t rely on flawed credit scores, can prevent the inherent racial bias of credit reports from interfering with home purchases and create a level playing field for all applicants.

“People of color have long known about these unfair practices, which are often driven by the lending industry’s overreliance on inaccurate and biased credit checks,” said Tim Ray, Co-Founder and CEO OF VeriFast. “The statistics are disturbing, but are unfortunately inevitable when lenders base decisions on incomplete models that often include errors and incorporate structural racism. This isn’t just a mortgage problem but also a rental applicant screening problem. Transparent, data-driven approaches can help people attain home ownership and get into better apartments. These solutions will show lenders the whole picture, reduce risk, and remove race from the equation to keep homeowning dreams from being deferred.”

In past decades, banks would often refuse home loans, mortgages, and insurance to applicants who lived in low-income areas. This practice, called redlining, prevented people of color from moving to more affluent neighborhoods. Though declared illegal in 1968, failing to account for biases baked into borrower screening algorithms threatens to reintroduce redlining as a modern practice.

“The mortgage industry can turn things around by adopting an objective, data-driven platform that is colorblind and uses hard-coded underwriting practices to avoid the flawed assumptions that lead to biased algorithms,” said Verifast Co-Founder and CTO Craig Schoen. “Verifast considers an applicant’s income, assets, employment history, and cashflow without invading anyone’s privacy — never race, creed, sexual or gender orientation, current neighborhood, or place of origin. Lenders can make safe bets, free from prejudice or the appearance of bias.”

About Verifast

VeriFast provides a single-source configurable API platform that allows companies to immediately validate customers’ ability to pay while eliminating fraud. Delivering deep analytics in minutes, VeriFast provides powerful consumer – borrower insights far beyond conventional credit checks. The company is based in Toronto and has customers throughout North America. VeriFast is privately held. For more information on VeriFast, please visit the company website at www.verifast.com.

Contacts

Cameron Thomas for Verifast

cameron@verbfactory.com

416.660.9801

• Visit Tricon’s Investor Relations website at www.triconresidential.com to access materials and information related to the upcoming Special Meeting.

• Company Shareholders who have questions or need assistance with voting their Common Shares should contact Tricon’s proxy solicitation agent and shareholder communications advisor Laurel Hill Advisory Group by telephone at 1-877-452-7184 or by email at assistance@laurelhill.com.  

All financial and share price-related information is presented in U.S. dollars unless otherwise indicated.

TORONTO–(BUSINESS WIRE)–Tricon Residential Inc. (NYSE: TCN, TSX: TCN) (“Tricon” or the “Company”) today announced that on February 15, 2024, the Ontario Superior Court of Justice (Commercial List) (the “Court”) granted an interim order (the “Interim Order”) in connection with the previously announced statutory plan of arrangement under the Business Corporations Act (Ontario) (the “Arrangement”) pursuant to which Blackstone Real Estate Partners X (“BREP X”), together with Blackstone Real Estate Income Trust, Inc. (“BREIT”, and together with BREP X and their respective affiliates, “Blackstone”) will acquire all outstanding common shares of Tricon (“Common Shares”) for $11.25 (approximately C$15.18 based on the Bank of Canada USD/CAD exchange rate at February 15, 2024) per Common Share (the “Consideration”) in cash (the “Transaction”). The Interim Order authorizes the calling and holding of a special meeting on March 28, 2024 (the “Special Meeting”) of the holders of Common Shares (the “Company Shareholders”), the granting of dissent rights to registered Company Shareholders, and other matters relating to the conduct of the Special Meeting.

The Consideration of $11.25 per Common Share in cash represents a premium of approximately 30% to the closing price of the Common Shares on the New York Stock Exchange (“NYSE”) as of January 18, 2024, the last trading day prior to the public announcement of the Arrangement, and a premium of approximately 42% to the volume weighted average share price on the NYSE over the 90-day period ended January 18, 2024. BREIT will maintain its approximately 11% ownership stake in the Company post-closing.

On the unanimous recommendation of a special committee of the board of directors of the Company (the “Board”) consisting entirely of independent directors, the Board (excluding the conflicted director), in consultation with its financial and legal advisors, determined that the Arrangement is in the best interests of the Company and fair to the Company Shareholders (excluding Blackstone) and unanimously recommends that Company Shareholders vote FOR the resolution relating to the Arrangement at the Special Meeting.

Details of the Special Meeting of Company Shareholders

The Interim Order authorizes and orders that the Special Meeting be held on Thursday, March 28, 2024 at 10:00 a.m. (Toronto time) in virtual-only format via live audio webcast, including any adjournments or postponements thereof. Company Shareholders of record as of the close of business on Tuesday, February 13, 2024 are entitled to receive notice of, to participate in, and to vote their Common Shares at the Special Meeting.

The management information circular (the “Circular”) and related proxy materials in respect of the Special Meeting have been filed and are available under Tricon’s profile on SEDAR+ at www.sedarplus.ca, and are in the process of being mailed to Company Shareholders. A Schedule 13E-3 Transaction Statement (the “Schedule 13E-3”), which includes the Circular and related proxy materials, has been filed with the U.S. Securities and Exchange Commission (“SEC”) and is available under Tricon’s profiles on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Details of the Special Meeting and how Company Shareholders or their duly appointed proxyholders can attend, access, participate in and vote at the Special Meeting are set out in the Circular.

The Transaction is subject to the approval of: (i) at least two-thirds (66 2/3%) of the votes cast by Company Shareholders present or represented by proxy at the Special Meeting, voting as a single class; and (ii) because the proposed Arrangement is a “business combination” subject to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), a simple majority (more than 50%) of the votes cast by Company Shareholders present or represented by proxy at the Special Meeting, excluding the votes of Blackstone and other Company Shareholders whose votes are required to be excluded pursuant to MI 61-101.

How to Vote

The Special Meeting will be held on Thursday, March 28, 2024 at 10:00 a.m. (Toronto time) in virtual format via live audio webcast at https://web.lumiconnect.com/#/411155572, Password: tricon2024 (case sensitive) and Meeting ID: 411-155-572.

Registered Company Shareholders and duly appointed proxyholders will be able to attend, participate and vote at the Special Meeting online. Guests and non-registered Company Shareholders (being shareholders who hold their common shares through an intermediary) must duly appoint themselves as proxyholder in order to be able to vote or ask questions at the Special Meeting.

Company Shareholders are encouraged to submit their vote in advance by completing a form of proxy accompanying the Circular (in the case of registered Company Shareholders) or voting instruction form provided by their intermediary (in the case of non-registered Company Shareholders).

Company Shareholders must vote their proxy before 10:00 a.m. (Toronto time) on Tuesday, March 26, 2024 (or, if the Special Meeting is adjourned or postponed, 48 hours, excluding Saturdays, Sundays and statutory holidays, prior to the commencement of the reconvened Special Meeting).

Completion of the Transaction

In addition to the receipt of the requisite approval of the Company Shareholders at the Special Meeting, the completion of the Transaction is subject to the final approval of the Arrangement by the Court, regulatory approvals under the Competition Act (Canada) and Investment Canada Act, and the satisfaction or waiver of the other customary conditions. Completion of the Transaction is expected to occur in the second quarter of this year.

INVESTORS AND COMPANY SHAREHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE CIRCULAR, SCHEDULE 13E-3 (INCLUDING ANY SUPPLEMENTS THERETO) AND OTHER PROXY MATERIALS FILED ON SEDAR+ AND EDGAR, AS THEY CONTAIN IMPORTANT INFORMATION ABOUT TRICON, THE TRANSACTION, THE SPECIAL MEETING AND RELATED MATTERS. In addition to receiving the Circular and related proxy materials by mail, Company Shareholders are also able to obtain these documents, as well as other filings containing information about Tricon, the Transaction, the Special Meeting and related matters, without charge on Tricon’s Investor Relations website at www.triconresidential.com as well as under Tricon’s profiles on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.

About Tricon Residential Inc.

Tricon Residential Inc. (NYSE: TCN, TSX: TCN) is an owner, operator and developer of a growing portfolio of approximately 38,000 single-family rental homes in the U.S. Sun Belt and multi-family apartments in Toronto, Canada. Our commitment to enriching the lives of our employees, residents and local communities underpins Tricon’s culture and business philosophy. We provide high-quality rental housing options for families across the United States and in Toronto, Canada through our technology-enabled operating platform and dedicated on-the-ground operating teams. Our development programs are also delivering thousands of new rental homes and apartments as part of our commitment to help solve the housing supply shortage. At Tricon, we imagine a world where housing unlocks life’s potential. For more information, visit www.triconresidential.com.

Questions

If you have any questions about the information contained in this news release in connection with the Special Meeting, or require any assistance voting, please contact our proxy solicitation agent and shareholder communications advisor, Laurel Hill Advisory Group, at 1-877-452-7184 (toll-free within North America) or by calling 1-416-304-0211 (outside of North America) or by email at assistance@laurelhill.com.

Forward -Looking Information

Certain statements contained in this news release may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the following: statements with respect to the holding of the Special Meeting and the timing thereof, statements with respect to the mailing of the Circular and related proxy materials, statements with respect to the anticipated benefits to Company Shareholders, and statements with respect to the expected completion of the Transaction and the timing thereof, and the satisfaction of the conditions to closing of the Transaction.

Such forward-looking information and statements involve risks and uncertainties and are based on management’s current expectations, intentions and assumptions, including expectations and assumptions concerning receipt of required approvals and the satisfaction of other conditions to the completion of the Transaction. There can be no assurance that the proposed Transaction will be completed, or that it will be completed on the terms and conditions contemplated. Accordingly, although the Company believes that the expectations and assumptions on which the forward-looking information contained in this news release is based are reasonable, undue reliance should not be placed on the forward-looking information because Tricon can give no assurance that it will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the failure to obtain necessary approvals or satisfy (or obtain a waiver of) the conditions to closing the Transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the Transaction; material adverse changes in the business or affairs of Tricon; Tricon’s ability to obtain the necessary Company Shareholder approval (including the “minority approval”) at the Special Meeting; the parties’ ability to obtain requisite Court and regulatory approvals; either party’s failure to consummate the Transaction when required or on the terms as originally negotiated; risks related to the disruption of management time from ongoing business operations due to the Transaction and possible difficulties in maintaining customer, supplier, key personnel and other strategic relationships; potential litigation relating to the Transaction, including the effects of any outcomes related thereto; the possibility of unexpected costs and liabilities related to the Transaction; competitive factors in the industries in which Tricon operates; interest rates, currency exchange rates, prevailing economic conditions; and other factors, many of which are beyond the control of Tricon. Additional factors and risks which may affect Tricon, its business and the achievement of the forward-looking statements contained herein are described in the “Risk Factors” section of the Circular as well as Tricon’s annual information form and Tricon’s management’s and discussion and analysis for the year ended December 31, 2022, and in the other subsequent reports filed on the SEDAR+ profile of Tricon at www.sedarplus.ca and Tricon’s filings with the SEC, including the Schedule 13E-3, which includes the Circular, on www.sec.gov.

The forward-looking information contained in this news release represents Tricon’s expectations as of the date hereof, and is subject to change after such date. Tricon disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Contacts

For further information, please contact:
Wissam Francis

EVP & Chief Financial Officer

Email: IR@triconresidential.com

Wojtek Nowak

Managing Director, Capital Markets

Tricon Media Contact:
Tara Tucker

Senior Vice President, Corporate and Public Affairs

Email: mediarelations@triconresidential.com

TORONTO–(BUSINESS WIRE)–Granite Real Estate Investment Trust (“Granite”) (TSX: GRT.UN / NYSE: GRP.U) announced today that its board of trustees has declared a distribution of CDN $0.275 per stapled unit for the month of February 2024. The distribution will be paid by Granite on Friday, March 15, 2024 to stapled unitholders of record at the close of trading on Thursday, February 29, 2024.

Granite confirms that no portion of the distribution constitutes effectively connected income for U.S. federal tax purposes. A qualified notice providing the breakdown of the sources of the distribution will be issued to the Depository Trust & Clearing Corporation subsequent to the record date of February 29, 2024, pursuant to United States Treasury Regulation Section 1.1446-4.

ABOUT GRANITE

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 143 investment properties representing approximately 62.9 million square feet of leasable area.

OTHER INFORMATION

Copies of financial data and other publicly filed documents about Granite are available through the internet on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval +(SEDAR+) which can be accessed at www.sedarplus.ca and on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at www.sec.gov. For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at 647-925-7560 or Andrea Sanelli, Associate Director, Legal & Investor Services, at 647-925-7504.

Contacts

Teresa Neto

Chief Financial Officer

647-925-7560

Andrea Sanelli

Associate Director, Legal & Investor Services

647-925-7504

TORONTO & NEW YORK–(BUSINESS WIRE)–$REAX #therealbrokerage–The Real Brokerage Inc. (NASDAQ: REAX), the fastest-growing, publicly traded real estate brokerage, today announced that Mission Realty, a 30-person, top-producing team, has joined the company.

Based in Richmond, Va., Mission Realty has distinguished itself by developing innovative approaches to assist buyers in winning their dream home, regardless of market conditions, and helping sellers sell their homes faster. Since its founding, the team, led by Clayton Gits, has amassed nearly 900 five-star Google reviews and a number of industry accolades, including being named Best of Zillow and counted among RealTrends Top 1.5% of Global Real Estate Teams. The team has sold more than 4,000 homes for a combined value of $1.5 billion, with over $136 million in 2023 alone.

Gits has dedicated his career to helping other real estate professionals build successful businesses. His success is also demonstrated by his ability to expand his professional network to more than 1,500 agents and growing.

“Clayton’s unwavering commitment to helping others grow and achieve success is exactly what Real is all about. His belief in the dual values of working hard and being kind cannot be understated, and in that he has found a perfect home at Real,” said Real President Sharran Srivatsaa. “Beyond Real’s core values, the company’s flexible model and attractive financial incentives inspire powerhouse teams like Mission Realty to align themselves with Real’s vision. We are incredibly proud to welcome Clayton, his team and the entire Mission network to the Real family.”

An early adopter of the team-based model, Gits contributed significantly to the growth of a leading cloud-based brokerage. He attributes his team’s move to Real to the company’s technology and connected community.

“Although many companies talk about collaboration, at Real it starts at the top,” Gits said. “The idea that we’re all on the same team is incredibly attractive and so unique in this industry. That, combined with Real’s commitment to building a visionary solution that streamlines home buying and selling for both agents and consumers, made our decision to join Real an easy one.”

About Real 

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports more than 15,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.

Forward-Looking Information 

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding Real’s ability to continue to attract agents.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns and Real’s ability to attract new agents and retain current agents. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Contacts

Investor inquiries:

Ravi Jani

Vice President, Investor Relations and Financial Planning & Analysis

investors@therealbrokerage.com
908.280.2515

Media inquiries:

Elisabeth Warrick

Senior Director, Marketing, Communications & Brand

press@therealbrokerage.com
201.564.4221

This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts are in U.S. dollars.

TORONTO–(BUSINESS WIRE)–DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U, TSX: DRR.UN) (“Dream Residential REIT” or the “REIT” or “we” or “us”) today announced its financial results for the three months (“Q4 2023”) and year ended December 31, 2023. Management will host a conference call to discuss the financial results on February 15, 2024 at 10:00 a.m. (ET).

HIGHLIGHTS

• Strategic property sale 3.3% above Q3 2023 IFRS value: On November 29, 2023, the REIT sold its Forrest Grove property for gross proceeds before adjustments and transaction costs of $9.0 million. We intend to invest the net proceeds in other existing assets to improve rents and enhance their value.
• Comparative properties net operating income (“Comparative properties NOI”)¹ was $6.1 million in Q4 2023, a 10.3% increase when compared to $5.6 million in Q4 2022. Net rental income was $2.6 million in Q4 2023 or $0.8 million higher than Q4 2022, due to an increase in investment properties revenue of $0.6 million and a decrease in investment properties expenses of $0.2 million.
• Diluted funds from operations (“FFO”) per Unit² was $0.18 for Q4 2023, a 10.9% increase compared to $0.16 for Q4 2022. The increase in diluted FFO per Unit over Q4 2022 was mainly due to increased net rental income and comparative properties NOI, partially offset by higher general and administrative expenses.
• Portfolio occupancy was 93.7% as at December 31, 2023, up from 93.4% at the end of Q3 2023, with Greater Oklahoma City at 93.8%, Greater Dallas-Fort Worth at 92.4% and Greater Cincinnati at 95.1%. Occupancy was consistent with expectations as we continue to manage our value-add program, completing 85 units during the quarter.
• Average monthly rent as at December 31, 2023 was $1,156 per unit, representing a 1.1% increase compared to $1,143 per unit at September 30, 2023.
• Conservative balance sheet continues to provide financial flexibility. Net total debt-to-net total assets³ was 31.6% as at December 31, 2023, compared to 29.7% as at December 31, 2022. Total mortgages payable were $137.6 million consisting of 11 fixed rate mortgages with a weighted average contractual interest rate of 4.0%. Total assets (per consolidated financial statements) were $411.9 million as at December 31, 2023. Total assets were comprised primarily of $398.3 million of investment properties and $10.9 million of cash and cash equivalents.

“In 2023, DRR successfully delivered on its IPO forecast, followed by strong operational and financial performance for the year, despite facing broader market challenges,” said Brian Pauls, Chief Executive Officer of Dream Residential REIT. “We are pleased to report 10.3% CP NOI growth in the fourth quarter and our balance sheet remains safe and flexible, with low leverage and a solid liquidity position.

We believe that the market is undervaluing our portfolio relative to our peers and private market valuations. Our business has been resilient in the face of higher interest rates, cost inflation and a tougher operating environment. Looking ahead, we will continue to explore opportunities to enhance our portfolio, drive internal growth and generate long-term value for our unitholders, while providing an attractive distribution yield supported by a conservative payout ratio.”

• Q4 2023 net loss was $(12.9) million, which comprises net rental income of $2.6 million, fair value adjustments to investment properties of $(12.9) million and fair value adjustments to financial instruments of $1.2 million, primarily from the revaluation of Class B units of DRR Holdings LLC, a subsidiary of the REIT (“Class B Units” and together with the Trust Units, “Units”). Cumulative other income and expenses totalled $(3.8) million.
• Total equity (per consolidated financial statements) was $218.0 million as at December 31, 2023, compared to $239.3 million as at December 31, 2022.
• Net asset value (“NAV”)⁴ per Unit was $13.50 as at December 31, 2023, compared to $14.50 as at
  
  December 31, 2022.
• The REIT declared distributions totalling $0.105 per Unit during Q4 2023.
• During the year ended December 31, 2023, the REIT purchased a total of 150,758 Trust Units under its normal course issuer bid (“NCIB”) that commenced on January 6, 2023, for a total of $1.2 million.
• Subsequent to December 31, 2023, approximately 3.3 million Class B Units were redeemed and exchanged for Trust Units.

______________________________________
1		Comparative properties NOI is a non-GAAP financial measure. The tables included in the Appendices section of this press release reconcile comparative properties NOI to net rental income for the three months and year ended December 31, 2023, three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
2		Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
3		Net total debt-to-net total assets is a non-GAAP ratio. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
4		NAV per Unit is a non-GAAP ratio. NAV per Unit is comprised of total equity (including Class B Units) (a non-GAAP financial measure) divided by the number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

FINANCIAL HIGHLIGHTS

(in thousands unless otherwise stated)		Three months ended December 31, 2023			Three months ended December 31, 2022			Year ended December 31, 2023			Period from May 6, 2022 to December 31, 2022
Operating results
Net income (loss)	$	(12,882)		$	4,556		$	(14,849)		$	112,826
FFO(1)		3,497			3,163			13,944			7,954
Net rental income		2,642			1,805			24,850			12,806
Comparative properties NOI(10)		6,140			5,569			23,963			14,345
Comparative properties NOI margin(11)		52.1%			50.4%			51.7%			50.7%
Per Unit amounts
Distribution rate per Trust Unit	$	0.105		$	0.105		$	0.420		$	0.270
Diluted FFO per Unit(2)(3)		0.18			0.16			0.71			0.40

See footnotes at end

Net income (loss) for Q4 2023 was $(12.9) million compared to $4.6 million in Q4 2022, primarily due to a change in fair value adjustments to investment properties of $(14.8) million and a change in fair value adjustments to financial instruments of $(3.1) million from Q4 2022, partially offset by an increase in net rental income of $0.8 million. The remaining difference was mainly driven by lower interest expense on Class B Units as a result of Class B Units that were redeemed on a one-for-one basis for Trust Units in Q4 2022. FFO for Q4 2023 was $3.5 million compared to $3.2 million in Q4 2022 due largely to an increase in NOI of $0.5 million. Q4 2023 diluted FFO per Unit was $0.18 compared to $0.16 in the prior year comparative quarter.

Net rental income for Q4 2023 was $2.6 million compared to $1.8 million in the prior year comparative quarter. Comparative properties NOI for Q4 2023 was $6.1 million compared to $5.6 million in the prior year comparative quarter. Comparative properties NOI margin of 52.1% was 170 basis points higher than Q4 2022. Q4 2023 comparative properties NOI includes comparative investment properties revenue of $11.8 million, which exceeded the prior year comparative quarter by $0.7 million, primarily driven by rental rate growth and value-add rental premiums. Investment properties operating expenses decreased $0.2 million as a result of decreased property taxes, partially offset by increased property insurance and maintenance expenses.

On November 29, 2023, the REIT sold the Forrest Grove property in Wichita, Kansas for gross proceeds before adjustments and transaction costs of $9.0 million. This transaction provides the REIT with enhanced liquidity and financial flexibility to support our value-add program across the portfolio.

PORTFOLIO INFORMATION
		December 31, 2023			September 30 2023			December 31, 2022
Total portfolio
Number of assets		15			16			16
Investment properties fair value (in thousands)	$	398,310		$	414,830		$	418,230
Units		3,300			3,432			3,432
Occupancy rate – in place (period-end)		93.7%			93.4%			95.5%
Average in-place base rent per month per unit	$	1,156		$	1,143		$	1,079
Estimated market rent to in-place base rent spread (%) (period-end)		8.3%			6.1%			6.8%
Tenant retention ratio(12)		59.6%			51.2%			46.8%

See footnotes at end

ORGANIC GROWTH

In 2023, Dream Residential REIT achieved solid organic growth across the portfolio, capturing rental rate growth and executing on implementing its value-add initiatives.

Weighted average monthly rent as at December 31, 2023 was $1,156 per unit, representing a 1.1% increase from September 30, 2023. Rental rates increased in the Greater Cincinnati region at 1.0%, Greater Oklahoma City region at 2.3% from September 30, 2023. Greater Dallas-Fort Worth experienced a rental rate decrease of (1.4)% from September 30, 2023. Since December 31, 2022, rental rates have increased 7.1% for the portfolio. This consists of an increase from December 31, 2022 of 8.2% for the Greater Cincinnati region, 8.2% for the Greater Oklahoma City region and 4.0% for the Greater Dallas-Fort Worth region.

During Q4 2023, blended lease trade outs averaged 1.6% compared to 5.4% in Q3 2023. This is comprised of an average increase on renewals of approximately 3.5% (7.3% – September 30, 2023) and an average decrease on new leases of approximately (1.1)% (3.5% – September 30, 2023). As at December 31, 2023, estimated market rents were $1,252 per unit, or an average gain-to-lease for the portfolio of 8.3%. The retention rate for the quarter ended December 31, 2023 was 59.6% compared to 46.8% for the three months ended December 31, 2022 due to our leasing efforts in securing renewals during the period.

Value-Add Initiatives

During Q4 2023, renovations were completed on 85 suites across Greater Dallas-Fort Worth and Greater Oklahoma City, with 16 suites under renovation as at December 31, 2023. For the three months ended December 31, 2023, the average new lease trade-out on renovated suites was $187 per unit higher than expiring leases, or a lease trade out of 17.9%.

“While facing challenging market conditions, the REIT’s portfolio has performed well and operations were consistent with management’s expectation,” said Scott Schoeman, Chief Operating Officer of Dream Residential REIT. “During the quarter, we sold Forrest Grove, a non-core asset with limited value-add runway, at a value above Q3 2023 IFRS. We expect to use the net proceeds to invest in our existing assets to drive rental rate growth and enhance value and overall portfolio quality. Our value-add program continues to deliver strong returns and we are excited to expand it into Cincinnati this year.”

FINANCING AND CAPITAL INFORMATION

				As at
(unaudited) (dollar amounts presented in thousands, except for per Unit amounts)		December 31, 2023		December 31, 2022
Financing
Net total debt-to-net total assets(4)		31.6%		29.7%
Average term to maturity on debt (years)		5.3		5.6
Interest coverage ratio (times)(5)		2.9		2.7
Undrawn credit facility	$	70,000		70,000
Available liquidity(6)	$	80,943		81,645
Capital
Total equity	$	218,032		239,291
Total equity (including Class B Units)(7)	$	265,358		286,968
Total number of Trust Units and Class B Units(8)		19,656,471		19,787,621
Net asset value (NAV) per Unit(9)	$	13.50		14.50
Trust Unit price	$	6.75		6.80

See footnotes at end

As at December 31, 2023, net total debt-to-net total assets was 31.6%, total mortgages payable were $137.6 million and total assets were $411.9 million. The REIT ended Q4 2023 with total available liquidity of approximately $80.9 million⁽⁶⁾, comprised of $10.9 million of cash and cash equivalents and $70.0 million available on its undrawn revolving credit facility.

Total equity of $218.0 million decreased from December 31, 2022 by $21.3 million. As at December 31, 2023, there were approximately 12.6 million Trust Units and 7.0 million Class B Units.

NAV per Unit as at December 31, 2023 decreased to $13.50 from $14.50 as at December 31, 2022, mainly due to fair value losses on investment properties recognized during the period.

In 2023, the REIT purchased 150,758 Trust Units under its NCIB for a total of $1.2 million. Subsequent to December 31, 2023, the REIT renewed its prior NCIB for a one-year period, which commenced on January 8, 2024. Under the bid, the REIT will have the ability to purchase for cancellation a maximum of 1,174,446 of its Trust Units through the TSX. Daily purchases are limited to 2,258 Trust Units and the NCIB will remain in effect until the earlier of January 7, 2025 or the date on which the REIT has purchased the maximum number of Trust units permitted.

CONFERENCE CALL

Senior management will host a conference call to discuss the financial results on Thursday, February 15, 2024, at 10:00 a.m. (ET). To access the conference call, please dial 1-800-319-4610 (toll free) or 416-915-3239 (toll). To access the conference call via webcast, please go to Dream Residential REIT’s website at www.dreamresidentialreit.ca and click the link for the webcast. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call.

OTHER INFORMATION

Information appearing in this press release is a select summary of financial results. The consolidated financial statements and management’s discussion and analysis for the REIT will be available at www.dreamresidentialreit.ca and under the REIT’s profile on www.sedarplus.com.

Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States. For more information, please visit www.dreamresidentialreit.ca.

Non-GAAP financial measures, ratios and supplementary financial measures

The REIT’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the REIT discloses and discusses certain non-GAAP financial measures and ratios, including FFO, diluted FFO per Unit, comparative properties NOI, comparative investment properties revenue, NOI, comparative properties NOI margin, net total debt-to-net total assets ratio, net total debt, net total assets, adjusted EBITDAFV, interest coverage ratio (times), available liquidity, total equity (including Class B Units) and NAV per Unit as well as other measures discussed elsewhere in this press release. These non-GAAP financial measures and ratios are not defined by or recognized under IFRS and do not have a standardized meaning under IFRS. The REIT’s method of calculating these non-GAAP financial measures and ratios may differ from other issuers and may not be comparable with similar measures presented by other issuers. The REIT has presented such non-GAAP financial measures and ratios as management believes they are relevant measures of the REIT’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release are expressly incorporated by reference from the management’s discussion and analysis of the financial condition and results from operations of the REIT as at and for the three months and year ended December 31, 2023, dated February 14, 2024 (the “Q4 2023 MD&A”) and can be found under the section “Non-GAAP Financial Measures and Ratios” and respective sub-headings labelled “FFO and diluted FFO per Unit”, “NAV per Unit”, “Comparative properties NOI and comparative properties NOI margin”, “Adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments (Adjusted EBITDAFV)”, “Available liquidity”, “Total equity (including Class B Units)”, “Interest coverage ratio (times)” and “Net total debt-to-net total assets”. In this press release, the REIT also discloses and discusses certain supplementary financial measures, including tenant retention ratio and weighted average number of units. The composition of supplementary financial measures included in this press release is expressly incorporated by reference from the Q4 2023 MD&A and can be found under the section “Supplementary Financial Measures and Other Disclosures”. The Q4 2023 MD&A is available on SEDAR+ at www.sedarplus.com under the REIT’s profile and on the REIT’s website at www.dreamresidentialreit.ca under the Investors section. Non-GAAP financial measures and ratios should not be considered as alternatives to net income (loss), net rental income, investment properties revenue cash flows generated from (utilized in) operating activities, cash and cash equivalents, total assets, non-current debt, total equity, or comparable metrics determined in accordance with IFRS as indicators of the REIT’s performance, liquidity, cash flow, and profitability.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes statements regarding our ability to drive rental rate growth; future market conditions; our ability to maintain a safe and flexible balance sheet which will drive operations; our anticipated investments in our properties and their effect on portfolio quality and rent growth; our intention to implement our value-enhancing renovation initiatives across our portfolio; the resiliency of our portfolio; and the ability of our value-add program and regional diversification to enhance the safety of our business. Forward-looking information generally can be identified by the use of forward-looking terminology such as “will”, “expect”, “believe”, “plan”, or “continue”, or similar expressions suggesting future outcomes or events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Residential REIT’s control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, risks inherent in the real estate industry; financing risks; inflation, interest and currency rate fluctuations; global and local economic and business conditions; risks associated with unexpected or ongoing geopolitical events; changes in law; tax risks; competition; environmental and climate change risks; insurance risks; cybersecurity; and uncertainties surrounding the COVID-19 pandemic and other public health crises and epidemics. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; there are no unforeseen changes in the legislative and operating framework for our business; we will have access to adequate capital to fund our future projects and plans and that we will receive financing on acceptable terms; inflation and interest rates will not materially increase beyond current market expectations; and geopolitical events will not disrupt global economies. All forward-looking information in this press release speaks as of the date of this press release. Dream Residential REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dream Residential REIT’s filings with securities regulators, including its latest annual information form and management’s discussion and analysis. These filings are also available at the REIT’s website www.dreamresidentialreit.ca.

FOOTNOTES

(1) FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income (loss). For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. The table included in the Appendices section of this press release reconciles FFO for the three months and year ended December 31, 2023, three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022 to net income (loss).

(2) Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(3) A description of the determination of diluted amounts per Unit can be found in the REIT’s 2023 MD&A in the section “Supplementary Financial Measures and Other Disclosures”, under the heading “Weighted average number of Units”.

(4) Net total debt-to-net total assets is a non-GAAP ratio. Net total debt-to-net total assets comprises net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). The most directly comparable financial measure to net total debt is mortgages payable, and the most directly comparable financial measure to net total assets is total assets. For further information on this non-GAAP ratio and these non-GAAP financial measures, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(5) Interest coverage ratio (times) is a non-GAAP ratio. Interest coverage ratio is comprised of adjusted EBITDAFV (a non-GAAP financial measure) divided by interest expense on debt. The table included in the Appendices section of this press release reconciles adjusted EBITDAFV to net income (loss). The most directly comparable financial measure to adjusted EBITDAFV is net income (loss). For further information on this non-GAAP ratio and non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(6) Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is the undrawn credit facility. The table included in the Appendices section of this press release reconciles available liquidity to the undrawn credit facility as at December 31, 2023 and December 31, 2022. For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

Contacts

Dream Residential REIT

Brian Pauls

Chief Executive Officer

(416) 365-2365

bpauls@dream.ca

Derrick Lau
Chief Financial Officer

(416) 365-2364

dlau@dream.ca

Scott Schoeman
Chief Operating Officer

(303) 519-3020

sschoeman@dream.ca

Read full story here

Not for distribution to U.S. News Wire Services or dissemination in the United States.

TORONTO–(BUSINESS WIRE)–#valueforgenerations–Choice Properties Real Estate Investment Trust (“Choice Properties”) (TSX: CHP.UN) announced today that the trustees of Choice Properties have declared a cash distribution for the month of February, 2024 of $0.0625 per trust unit, representing $0.75 per trust unit on an annualized basis, payable on March 15, 2024 to Unitholders of record at the close of business on February 29, 2024.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties.

We believe that value comes from creating spaces that improve how our tenants and communities come together to live, work, and connect. We strive to understand the needs of our tenants and manage our properties to the highest standard. We aspire to develop healthy, resilient communities through our dedication to social, economic, and environmental sustainability. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.

For more information, visit Choice Properties’ website at www.choicereit.ca and Choice Properties’ issuer profile at www.sedarplus.ca. 

Contacts

Mario Barrafato

Chief Financial Officer

Choice Properties REIT

(416) 628-7872

Mario.Barrafato@choicereit.ca

DALLAS–(BUSINESS WIRE)–Hyphen Solutions, a pioneer in cloud-based residential construction technology, is excited to announce a strategic partnership with HomebuilderONE, the Microsoft Cloud-based ERP for Home Builders. This collaboration aims to integrate Hyphen’s flagship Construction Management and Supply Chain software, BuildPro with HomebuilderONE’s business management software, empowering Builders with flexible scheduling options and leveraging the latest in modern Home Building solutions.

BuildPro: Transforming Construction Management

BuildPro, recognized as North America’s largest supply chain and residential construction management software solution, is set to revolutionize the industry further through this partnership. With its cloud-based platform, BuildPro offers real-time information access, enhancing accuracy and efficiency in construction scheduling and supply chain management. With this strategic partnership, Builders can produce more efficiently while optimizing costs, ensuring the highest levels of operational efficiency.

HomebuilderONE: Powering Homebuilding with a Unified Platform

HomebuilderONE, the leading ERP for Home Builders on the Microsoft Cloud, delivers a comprehensive, all-in-one solution for streamlined home construction. From land acquisition to warranty management, the platform enables consistency in data for reporting and actioning, boosting efficiency, accuracy and profitability. Home Builders can effortlessly scale with market conditions and acquisitions and maximize resources to deliver complex projects on time using the Microsoft Cloud-based platform.

Hyphen Solutions & HomebuilderONE: Driving Innovation in Homebuilding Technology

Through Hyphen Solutions’ partnership with HomebuilderONE, these organizations continue to lead the industry in providing innovative software solutions. With the connection to HomebuilderONE, Hyphen reinforces its commitment to connecting systems, data and teams in residential construction, further empowering Builders and Suppliers to succeed in a competitive market.

This partnership opens doors for Builders who have BuildPro to modernize with a Microsoft-Cloud ERP, offering them enhanced scalability and access to a robust ecosystem of tools and services tailored for the construction industry’s evolving needs.

About Hyphen Solutions

Celebrating 25 years in 2024, Hyphen continues to strengthen and innovate, to help Home Builders and Suppliers resolve business challenges and increase efficiency and collaboration in a unified platform. As the leading provider of cloud-based residential construction technology, 1 in 3 new homes in America is built with Hyphen’s software. Hyphen’s full-cycle software suite is uniquely tailored for Builders and Suppliers and is designed to support their businesses at every stage. Before, during and beyond the build, Hyphen serves as the ultimate hub for comprehensive residential construction software solutions. For more information, visit, www.hyphensolutions.com.

About HomebuilderONE, part of sa.global

HomebuilderONE is an end-to-end business management system on the Microsoft Cloud purpose-built for and with Home Builders. It empowers Builders to harness the capabilities of Microsoft’s unified cloud platform, ensuring scalability, data unification and streamlined processes. This results in the construction of homes with greater accuracy, repeatability and efficiency. Moreover, Microsoft’s native tools—Power BI, Power Platform, Microsoft 365, and Azure—seamlessly connect teams in the way they work. For more information, visit, www.saglobal.com/HomebuilderONE.

Contacts

Jessica Katz

VP of Marketing

Hyphen Solutions

Phone: (972) 728-8100
Email: jkatz@ihyphen.com

Emilie Toll

Product Marketing Manager, Americas

Contact for HomebuilderONE

Phone: 888-350-3123

Email: emilie.toll@saglobal.com

This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts in our tables are presented in thousands of Canadian dollars, except unit and per unit amounts, unless otherwise stated.

TORONTO–(BUSINESS WIRE)–DREAM IMPACT TRUST (TSX: MPCT.UN) (“Dream Impact”, “we”, “our” or the “Trust”) today reported its financial results for the three months (“fourth quarter”) and year ended December 31, 2023.

Over the course of 2023, the Trust made steady progress on the build-out of its multi-family portfolio. We accomplished important milestones, with over 900 units (at 100% asset level) added to our recurring income segment as we achieved first tenant occupancies at Maple House and Aalto II. The Trust’s active development projects have progressed well over the year, and we are on track to finish construction on an additional 1,300 purpose-built rental units by the end of 2025. This is significant for the Trust as our recurring income properties provide meaningful impact and stable cash flows to support our fixed operating costs and we are de-risking the business as we work through our best-in-class development pipeline.

The Trust’s projects under construction today require limited incremental equity, if any, to complete. These projects include: Cherry House (855 rental units), Forma East (864 condominium units), Birch House (444 rental and condominium units) and active phases at Brightwater (approximately 500 condominium/town home units). While further capital investments may be made to bring new projects online, these will be evaluated on a case-by-case basis.

With the current economic and geopolitical uncertainty, the Trust remains focused on creating value within our business and maintaining sufficient liquidity. These uncertainties have made it more challenging to commence development on land that we are carrying. We are pleased to have secured attractive financing on LeBreton and expect our site to be under development in March. We are also progressing on achieving the prerequisites for other projects although some development starts have been delayed due to market conditions.

We continue to pursue partnership opportunities for the re-development of 49 Ontario Street, the Trust’s wholly owned 88,000 square feet (“sf”) commercial building located in downtown Toronto and adjacent to a future Ontario line subway stop. The Trust achieved rezoning for the site earlier in 2023 for approximately 809,000 sf of residential gross floor area (or approximately 1,250 residential units) and 68,000 sf of non-residential space.

Subsequent to year-end, the Trust launched the sales process for two commercial assets located in downtown Toronto, comprising 95,000 sf in total. These potential dispositions are expected to provide additional liquidity and help reduce the Trust’s exposure to the asset class, which will lessen over time as we continue to own and build-out our multi-family development pipeline.

Since 2019, the management fees payable to Dream Asset Management Corporation (“DAM”), a subsidiary of Dream Unlimited Corp. (“Dream”), the Trust’s asset manager, have been settled by the delivery of units of the Trust, which has supported our overall liquidity objectives. The current arrangement to satisfy these fees expired on December 31, 2023. Dream has communicated its intent to the Trust, subject to necessary unitholder approvals, to renew the fee arrangement effective January 1, 2024 demonstrating their strong alignment with the Trust’s overall strategy. In aggregate, DAM owns 34.9% of the Trust as at February 12, 2024. Information on the proposed fee arrangement will be included in the Trust’s management information circular for its upcoming 2024 annual meeting.

To further bolster the Trust’s liquidity position, the Board of Trustees of the Trust (“the Board”) has decided to suspend the Trust’s monthly distribution. In doing so, the Trust expects to retain an additional $11 million annually to grow its income property portfolio, reducing risk for the business and increasing free cash flow over the long-term, and allowing us to better support the interest on our land loans. As we get land under development and complete build-to-hold projects currently under construction, the Board will re-evaluate the distribution.

“Although the year had its challenges, we are pleased with the progress we have made,” said Michael Cooper, Portfolio Manager. “Dream Impact’s operating environment continues to face headwinds, as interest rates remain high and the market remains volatile from broader geopolitical influences. Despite this, we have seen significant progress across the build-out of our multi-family portfolio, which is integral for the stability of our recurring income segment. We believe the Trust’s development portfolio represents some of the best opportunities within the Canadian real estate market, and we are proactively taking steps to manage the Trust’s capital to weather further market uncertainty should it arise. Dream’s ownership in the Trust demonstrates its strong commitment to the ongoing success of this vehicle.”

Selected financial and operating metrics for the fourth quarter and year ended December 31, 2023 are summarized below:

		Three months ended December 31,						Year ended December 31,
(in thousands of dollars, except per Unit amounts)		2023			2022			2023			2022
Consolidated results of operations
Net income (loss)		$	(19,706)		$	(44,863)		$	(44,144)		$	(43,554)
Net income (loss) per unit(1)			(1.13)			(2.69)			(2.57)			(2.64)
Distributions declared and paid per unit(3)			0.16			0.40			0.80			1.60
Units outstanding – end of period			17,571,967			16,760,628			17,571,967			16,760,628
Units outstanding – weighted average			17,459,097			16,686,724			17,171,777			16,479,232

As at		December 31, 2023			December 31, 2022
Consolidated financial position
Total assets		$	707,426		$	724,169
Total liabilities			278,769			245,437
Total unitholders’ equity			428,657			478,732
Total unitholders’ equity per unit(1)			24.39			28.56

During the fourth quarter, the Trust reported a net loss of $19.7 million relative to $44.9 million in the prior year. The fluctuation was primarily a result of the composition of fair value adjustments on multi-family and commercial properties year over year, driven by project milestones and valuation assumptions reflecting market conditions, and the Trust’s net tax position in each period. Included in comparative results was a fair value loss on the Trust’s investment in the Virgin Hotels Las Vegas (the “U.S. Hotel”) in 2022. Further described in the Trust’s segmented results discussion below.

Liquidity Update

As at December 31, 2023, the Trust had total liquidity⁽¹⁾ of $22.9 million, comprised of cash-on-hand and funds available under the Trust’s credit facility. As at December 31, 2023, the Trust’s debt-to-asset value^(1,2) was 38.6%, an increase compared to 37.0% at September 30, 2023 driven by fluctuations in fair value adjustments. For further details refer to the “Capital Resources and Liquidity” section of the Trust’s MD&A for the three months and year ended December 31, 2023.

In 2024, the Trust’s only anticipated debt maturities relate to certain equity accounted investments. Approximately 70% of this debt is expected to be repaid from condominium unit closing proceeds or is in advanced discussions with lenders for renewals. The remaining maturities will become due in the latter half of the year and relate to the Trust’s non-core passive investments which we believe carries limited refinancing risk due to the low leverage at the respective investment levels.

Recurring Income

In the fourth quarter, the Trust’s recurring income segment generated a net loss of $18.3 million compared to net income of $16.9 million in the prior year. The largest factor impacting earnings for this segment was the net impact of fair value adjustments. Current period results included net fair value losses of $18.0 million driven by cap rate and discount rate expansion across both multi-family and office assets, which is consistent with general market trends. While comparative results included fair value losses as well, they were offset by a $29.0 million fair value gain on 49 Ontario Street supported by a third-party appraisal in 2022. As net income increases from higher rental rates, we would expect the fair value losses recognized on the Trust’s multi-family portfolio may be reversed.

Multi-family rental properties

During the fourth quarter and year ended December 31, 2023, same property NOI⁽¹⁾ was $1.4 million and $5.2 million, compared to $1.4 million and $3.9 million in the prior year periods. Growth in same property NOI was primarily driven by higher occupancies and rental growth throughout the portfolio. The Trust anticipates that NOI from multi-family rental units will add meaningful income to recurring income as they stabilize over the next two years.

Over the fourth quarter, tenant occupancies have continued to progress well at Maple House and Aalto II at rental rates in line with budget. As these assets reached substantial construction completion in the period, they were transferred from the development segment to recurring income in the quarter.

Maple House is the first multi-family rental building in Canary Landing (previously West Don Lands) located in downtown Toronto. As of February 9, 2024, over 40% of units in the 770-unit building were leased. The Trust has a 25% interest in Canary Landing. Aalto II is the second multi-family rental building at Zibi located in Gatineau, Quebec. As of February 9, 2024, approximately 40% of the 148-unit building had been leased. As both developments were financed through CMHC’s Rental Construction Financing Initiative, take-out financing risk has been mitigated and in-place debt will become non-recourse as the assets stabilize over the next 12 to 24 month period.

As of December 31, 2023, approximately 80% the Trust’s debt relating to its multi-family rental portfolio was government affiliated and carried a weighted average interest rate of 2.8% and time to maturity of 5.3 years.

Commercial

During the fourth quarter, NOI from commercial properties⁽¹⁾ was $2.7 million, consistent with prior year. Overall occupancy for the Trust’s commercial portfolio as at December 31, 2023 held relatively consistent with prior quarter and was up relative to prior year to date due to NOI contribution from completed blocks at Zibi.

Development

During the fourth quarter, the development segment reported a net loss of $4.7 million, compared to net income of $0.5 million in the prior year after adjusting for the fair value loss on the U.S. Hotel in 2022. The fluctuation relative to the prior year was driven by fair value gains on Maple House in 2022, partially offset by occupancy income from Phase I at Brightwater generated during the fourth quarter. As previously noted, Maple House was transferred to the Trust’s recurring income segment in the fourth quarter.

For complete details on the Trust’s development pipeline, please refer to the section titled “Development and Investment Holdings” in the Trust’s MD&A for the three months and year ended December 31, 2023.

Other⁽²⁾

In the fourth quarter, the other segment generated earnings of $3.3 million relative to a loss of $3.2 million in the prior year. The change in the other segment was primarily due to a higher tax recovery as a result of the composition of earnings and fluctuations on the asset management and deferred compensation expenses in relation to the Trust’s unit price.

Distribution

Effective February 12, 2024, the Board decided to suspend the Trust’s monthly distributions, and distribution reinvestment and purchase plan (“DRIP”), beginning with the Trust’s distribution that would have otherwise been declared for the month of February 2024 and would have otherwise been payable to unitholders in March 2024. The last distribution declared prior to the suspension will be paid on February 15, 2024.

Footnotes

(1)		Net income (loss) per unit, total unitholders’ equity per unit, total liquidity, debt-to-asset value, NOI – commercial properties, and NOI – multi-family rental, Same Property NOI -multi-family rental, are supplementary financial measures. Please refer to the cautionary statements under the heading “Specified Financial Measures and Other Measures” in this press release and the “Specified Financial Measures and Other Disclosures” section of the Trust’s MD&A for the three months and year ended December 31, 2023.
(2)		Debt-to-asset value is a non-GAAP ratio, which calculated as total debt payable, a non-GAAP financial measure, divided by the total asset value of the Trust as at the applicable reporting date. The most directly comparable financial measure to total debt payable is total debt.
(3)		Distributions declared and paid per unit include the impact of the Unit consolidation.

Conference Call

Senior management will host a conference call on Monday, February 12, 2024 at 5:00 pm (ET). To access the call, please dial 1-800-319-4610 (toll free) or 416-915-3239. To access the conference call via webcast, please go to the Trust’s website at www.dreamimpacttrust.ca and click on Calendar of Events in the News and Events section. A taped replay of the conference call and the webcast will be available for 90 days.

About Dream Impact

Dream Impact is an open-ended trust dedicated to impact investing. Dream Impact’s underlying portfolio is comprised of exceptional real estate assets reported under two operating segments: development and investment holdings, and recurring income, that would not be otherwise available in a public and fully transparent vehicle, managed by an experienced team with a successful track record in these areas. The objectives of Dream Impact are to create positive and lasting impacts for our stakeholders through our three impact verticals: environmental sustainability and resilience, attainable and affordable housing, and inclusive communities, while generating attractive returns for investors. For more information, please visit: www.dreamimpacttrust.ca.

Specified Financial Measures and Other Measures

The Trust’s consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). In this press release, as a complement to results provided in accordance with IFRS Accounting Standards, the Trust discloses and discusses certain specified financial measures, including total liquidity, debt-to-asset value, total debt payable, net income (loss) per unit, NOI — commercial properties, NOI — multi-family rental, Same Property NOI – multi-family rental and debt-to-total asset value, as well as other measures discussed elsewhere in this release. These specified financial measures are not defined by or recognized measures under IFRS Accounting Standards, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Trust has presented such specified financial measures as management believes they are relevant measures of our underlying operating performance. Specified financial measures should not be considered as alternatives to unitholders’ equity, net income, total comprehensive income or cash flows generated from operating activities, or comparable metrics determined in accordance with IFRS Accounting Standards as indicators of the Trust’s performance, liquidity, cash flow and profitability. Certain additional disclosures such as the composition, usefulness and changes as applicable are expressly incorporated by reference from the Trust’s MD&A for the three months and year ended December 31, 2023 dated February 12, 2024 in the section titled “Specified Financial Measures and Other Disclosures”, subsection “Non-GAAP Ratios”, heading “Debt-to-asset value”, subsection “Supplementary Financial Measures and Other Measures”, headings “Net income (loss) per unit”, “total liquidity”, “NOI — commercial properties”, “NOI – multi-family rental”, and “Same Property NOI – multi-family rental” and subsection “Non-GAAP Financial Measures”, heading “Total debt payable”,. which has been filed and is available on SEDAR+ under the Trust’s profile.

“Total debt payable” is defined by the Trust as the balance due at maturity for its debt instruments. Total debt payable is a non-GAAP measure and is included as part of the definition of debt-to-asset value, a non-GAAP ratio. Total debt payable is an important measure used by the Trust in evaluating the amount of debt leverage; however, it is not defined by IFRS Accounting Standards, does not have a standardized meaning and may not be comparable with similar measures presented by other issuers. Total debt payable is reconciled to total debt, the most directly comparable financial measure, below.

As at		December 31, 2023			December 31, 2022
Total debt		$	270,056		$	220,889
Unamortized discount on host instrument of convertible debentures			820			1,086
Conversion feature			(7)			(449)
Unamortized balance of deferred financing costs			2,196			2,789
Total debt payable		$	273,065		$	224,315

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “timeline”, “potential”, “strategy”, “targets”, “believe”, “should”, “plans”, or “continue”, or similar expressions suggesting future outcomes or events.

Some of the specific forward-looking information in this press release may include, among other things, statements relating to the Trust’s objectives and strategies to achieve those objectives; the Trust’s leasing activities and the expected results thereof; our review of all our assets and capital allocation strategy and the expected results thereof; our expectation to finish construction on an additional 1,300 purpose built rental units by the end of 2025; expectations regarding the Trust’s disposition of commercial assets and their expected impact on the Trust’s asset class exposure and liquidity; expectations for the Trust to renew the fee arrangement with DAM, its asset manager in 2024; the Trust’s expectations regarding its distribution policy; the Trust’s expectations regarding upcoming debt maturities; the Trust’s income generation expectations in relation to Maple House; the status of the Trust’s ongoing active development projects and the projected completion dates; remaining occupancies; Brightwater’s construction status including units and GLA under construction; the Trust’s objectives of creating positive and lasting impacts for our stakeholders through our three impact verticals; environmental sustainability and resilience, attainable and affordable housing, and inclusive communities, while generating attractive returns for investors; expectations for multi-family assets to add meaningful income to the Trust’s recurring income segment; expected project stabilization timelines; the expectation that development income will fluctuate and not contribute meaningfully to earnings until development milestones and occupancy are achieved; and the Trust’s plans and proposals for current and future development and redevelopment projects, construction initiation, rezoning, completion and occupancy dates, number of units, square footage and planned GLA. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: adverse changes in general economic and market conditions; liquidity risk; financing and risks relating to access to capital; interest rate risks; public health risks; risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, and international sanctions; inflation; the disruption of free movement of goods and services across jurisdictions; the risk of adverse global market, economic and political conditions and health crises; risks inherent in the real estate industry; risks relating to investment in development projects; impact investing strategy risk; risks relating to geographic concentration; risks inherent in investments in real estate, mortgages and other loans and development and investment holdings; credit risk and counterparty risk; competition risks; environmental and climate change risks; risks relating to access to capital; interest rate risk; the risk of changes in governmental laws and regulations; tax risks; foreign exchange risk; the risk that corporate activities and reviews will not have the desired impact; acquisitions risk; and leasing risks. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; the gradual recovery and growth of the general economy continues in 2024; that no unforeseen changes in the legislative and operating framework for our business will occur; that there will be no material change to environmental regulations that may adversely impact our business; that we will meet our future objectives, priorities and growth targets; that we receive the licenses, permits or approvals necessary in connection with our projects; that we will have access to adequate capital to fund our future projects, plans and any potential acquisitions; that we are able to identify high-quality investment opportunities and find suitable partners with which to enter into joint ventures or partnerships; that we do not incur any material environmental liabilities; there will not be a material change in foreign exchange rates; that the impact of the current economic climate and global financial conditions on our operations will remain consistent with our current expectations and that inflation and interest rates will not materially increase beyond current market expectations; our expectations regarding the availability and competition for acquisitions remains consistent with the current climate.

All forward-looking information in this press release speaks as of February 12, 2024. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in the Trust’s filings with securities regulators filed on the System for Electronic Document Analysis and Retrieval+ (www.sedarplus.ca), including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamimpacttrust.ca.

Contacts

Meaghan Peloso
Chief Financial Officer

416 365-6322

mpeloso@dream.ca

Kimberly Lefever
Director, Investor Relations

416 365-6339

klefever@dream.ca

Cintas earns its 16th Most Admired Companies recognition from its industry peers

CINCINNATI–(BUSINESS WIRE)–Cintas Corporation (Nasdaq: CTAS) has been named one of FORTUNE’s 2024 World’s Most Admired Companies, ranking second amongst all companies in the Diversified Outsourcing Services category.

This is the 16^th time that Cintas has been recognized by FORTUNE for this honor.

“We are proud to be recognized by our peers and industry experts as a well-run and successful organization,” said Todd Schneider, Cintas President and CEO. “Being recognized again for this award is a reflection of our unique culture and commitments to providing excellent products and services to our customers, developing our employee-partners, creating value for our shareholders and being a good corporate citizen in the communities we serve.”

Of the companies in the Diversified Outsourcing Services category, Cintas has been ranked first in the following categories: People management, Use of corporate assets, Quality of Management and Quality of Products and Services.

To determine its 2024 World’s Most Admired Companies List, FORTUNE partnered with global management consulting firm Korn Ferry to identify and rank the Most Admired Companies. Companies among an initial pool of 657 candidates were divided into 52 industry groupings. Approximately 15,000 senior executives, outside directors, and industry analysts were surveyed to rate their peers on nine attributes, ranging from social responsibility to the community and the environment and financial soundness, to the quality of products or services. The top finishers in each industry were named to the World’s Most Admired List.

Cintas is also currently listed on the 2023 Fortune 500.

The complete listing of FORTUNE’s 2024 World’s Most Admired Companies is available at fortune.com. FORTUNE’s print edition featuring the 2024 World’s Most Admired Companies list will be available on newsstands beginning Tuesday, Feb. 20.

About Cintas Corporation

Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

Contacts

Michelle Goret, Cintas Vice President of Corporate Affairs | goretm@cintas.com, 513-972-4155