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) (“Dream Residential REIT” or the “REIT” or “we” or “us”) today announced its financial results for the quarter ended September 30, 2022 (Q3 2022) and the period from February 24, 2022, to September 30, 2022 (“YTD 2022”). The YTD 2022 period reflects the period from May 6, 2022, the date on which the REIT completed its initial public offering (“IPO”) of trust units (“Trust Units”). The REIT had no operations prior to May 6, 2022. The results for Q3 2022 are compared to the financial forecast (the “Forecast”) contained in the REIT’s final prospectus dated April 29, 2022. Management will host a conference call to discuss the financial results on November 3, 2022 at 10:00 a.m. (ET).

HIGHLIGHTS

• For the period ended September 30, 2022, net income was $23.4 million, which comprises net rental income of $7.0 million, fair value adjustments to investment properties of $1.2 million and fair value adjustments to financial instruments of $18.9 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”). Partially offsetting these items were cumulative other income and expenses of $(3.7) million.
• Diluted funds from operations (“FFO”)¹ per Unit was $0.15 for Q3 2022, in line with the Forecast.
• Net operating income (“NOI”)² was $5.5 million in Q3 2022, consistent with the Forecast.
• NOI margin³ in Q3 2022 was 49.9% compared to 50.0% for the Forecast.
• Average monthly rent as at September 30, 2022 was $1,060 per unit compared to $1,018 per unit at June 30, 2022, an increase of 4.1%.
• Portfolio occupancy was 93.7% as of September 30, 2022, with Greater Oklahoma City at 94.3%, Dallas-Fort Worth at 90.3% and Greater Cincinnati at 96.5%.
• Total assets were $432.7 million as at September 30, 2022, comprised primarily of $414.5 million of investment properties and $15.4 million of cash and cash equivalents.
• Total equity (per condensed consolidated financial statements) was $216.2 million as at September 30, 2022.
• Net asset value (“NAV”)⁴ per Unit was $14.58 as at September 30, 2022.
• Net total debt-to-net total assets⁵ was 29.0% as at September 30, 2022, total mortgages payable were $136.3 million and total assets were $432.7 million.
• On October 18, 2022, the Trust Units commenced trading on the OTCQX marketplace under the ticker DRREF.
• The REIT declared distributions totaling $0.105 per Unit during Q3 2022.

________________________________

1 Diluted FFO per Unit is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. 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.

2 Net operating income (“NOI”) is a non-GAAP financial measure. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. The most directly comparable financial measure to NOI is net rental income. The tables included in the Appendices section of this press release reconcile NOI for the period from May 6, 2022 to September 30, 2022 to net rental income. 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.

3 NOI margin is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. NOI margin is defined as NOI (a non-GAAP financial measure) divided by investment properties revenue, as a percentage. 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. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. 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.

5 Net total debt-to-net total assets is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. Net total debt-to-net total assets ratio is comprised of net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). 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			Actual		Forecasted		Variance			Actual
(unaudited) (in thousands unless otherwise stated)			Three months ended September 30, 2022		Three months ended September 30, 2022					For the period from May 6, 2022 to June 30, 2022
Operating results
Net income		$	23,445		3,443		20,002		$	84,825
Funds from operations (“FFO”)(1)			2,923		2,957		(34)			1,868
Net rental income			6,951		7,064		(113)			4,050
Net operating income (“NOI”)(10)			5,491		5,528		(37)			3,516
NOI Margin(11)			49.9%		50.0%		(10) bps			52.2%
Per Unit amounts
Distribution rate per Trust Unit		$	0.105		0.105		—		$	0.064
Diluted FFO per Unit(2)(3)			0.15		0.15		—			0.09
See footnotes at end

Net income for Q3 2022 was $23.4 million, which is $20.0 million higher than the Forecast primarily due to fair value gains on properties and financial instruments. Investment property revenue of $11.0 million during Q3 2022, was in line with the Forecast, with strong rental rate increases offset by induced vacancy as the REIT accelerated its value-add program during the quarter. NOI for Q3 2022 was $5.5 million or approximately 0.7% lower than the Forecast, primarily due to the induced vacancy from the value-add program during the quarter. Q3 2022 funds from operations was $2.9 million, which was 1.1% lower than the Forecast. Lower NOI was partially offset by interest income earned on cash deposits and lower interest expense due to lower than forecasted amortization of discounts related to the fair valuation of mortgage debt that occurred upon the REIT’s acquisition of 13 multi-family residential properties from AWH Holdings LLC on the closing of its IPO. Q3 2022 diluted FFO per unit at $0.15 was consistent with the Forecast.

PORTFOLIO INFORMATION			As at
(unaudited)			September 30, 2022
Total portfolio
Number of assets			16
Investment properties fair value (in thousands)		$	414,460
Rental units			3,432
Occupancy rate – in place (period-end)			93.7%
Average in-place base rent per unit		$	1,060
Estimated market rent to in-place base rent spread (%) (period-end)			7.0%
Retention rate (period-end)			53.7%

“We are pleased with the REIT’s results for our first full quarter which are tracking in line relative to our IPO Forecast,” said Jane Gavan, Chief Executive Officer of Dream Residential REIT. “Fundamentals in our primary markets remain strong and our value-add program continues to generate impressive returns.”

ORGANIC GROWTH

Dream Residential REIT continued to achieve attractive organic growth across the portfolio, capturing rental rate growth in its primary markets and progressing on implementing its value-add initiatives.

Weighted average monthly rent as at September 30, 2022 was $1,060 per unit, representing a 4.1% increase from June 30, 2021. Rental rate increases were experienced across all of the REIT’s primary markets including Greater Oklahoma City at 4.2%, Greater Dallas Fort-Worth at 4.3% and Greater Cincinnati at 3.9% from June 30, 2022.

Leasing momentum remained strong during Q3 2022, with blended lease trade outs averaging 13.6%, comprised of an average increase on new leases of approximately 16.2% and an average increase on renewals of approximately 11.1%. At September 30, 2022, estimated market rents were $1,134 per unit, or an average lease trade out for the portfolio of 7.0%. The retention rate for the quarter ended September 30, 2022 was 53.7%.

Value-Add Initiatives

The REIT continued to expand its value-add initiatives during Q3 2022, launching its renovation program in Greater Oklahoma City in July 2022. As of September 30, 2022, renovations were completed on 141 suites across Greater Dallas-Fort Worth and Greater Oklahoma City with an additional 45 suites under renovation. The average new lease trade-out on renovated suites was $429 higher than expiring leases, or a premium of 37%. Lease trade-outs on classic suites were $234 higher than expiring leases, or a premium of 22%.

“Our renovation program continues to drive value and is a key pillar of future organic growth,” said Scott Schoeman, Chief Operating Officer of Dream Residential REIT. “In addition to driving rent growth, value-add investment is improving the quality as well as lifespan of our assets and improving the overall tenant experience. We remain on track to complete our targeted 200 renovations by year-end.”

FINANCING AND CAPITAL INFORMATION

			As at
(unaudited)			September 30, 2022
Financing
Net total debt-to-net total assets(4)			29.0%
Average term to maturity on debt (years)			5.8
Interest coverage ratio (times)(5)			3.4
Undrawn credit facilities (in thousands)		$	70,000
Available liquidity(6) (in thousands)		$	85,392
Capital
Total equity (excluding Class B Units) (in thousands)		$	216,234
Total equity (including Class B Units) (in thousands)(7)		$	288,443
Total number of Trust Units and Class B Units (in thousands)(8)			19,788
Net asset value (NAV) per Unit(9)		$	14.58
Trust Unit price		$	7.25

As of September 30, 2022, net total debt-to-net total assets was 29.0%, total mortgages payable were $136.3 million and total assets were $432.7 million. The REIT ended Q3 2022 with total available liquidity of approximately $85.4 million⁽⁶⁾, comprised of $15.4 million of cash and cash equivalents and $70 million available on its undrawn revolving credit facility.

OTCQX Best Market

On October 18, 2022, the Trust Units commenced trading on the OTCQX marketplace under the symbol DRREF. The OTCQX provides U.S. investors with the opportunity to trade directly from their accounts so that more potential investors have access to buying and selling Trust Units.

“With a strong balance including low leverage, limited near term debt maturities and ample liquidity, we are well positioned to deal with an uncertain economic environment,” said Derrick Lau, Chief Financial Officer of Dream Residential REIT. “We continue to evaluate strategic initiatives to deploy capital and create value for our unitholders. With the Trust Units now trading on the OTCQX, we believe that this will provide increased visibility and broaden our investor reach going forward.”

CONFERENCE CALL

Senior management will host a conference call to discuss the financial results on Thursday, November 3, 2022, at 10:00 a.m. (ET). To access the conference call, please dial 1-866-455-3403 in Canada or 647-484-8332 elsewhere and use passcode 88134505#. To access the conference call via webcast, please go to Dream Residential REIT’s website at www.dreamresidentialreit.ca and click on the link for News, then click on Events. 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 condensed 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.sedar.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 an initial portfolio of 16 garden-style multi-residential properties, consisting of 3,432 units 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 condensed 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, NOI, NOI margin, total debt, net total debt-to-net total assets ratio, adjusted EBITDAFV ratio, 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 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 have been 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 period ended September 30, 2022, dated November 2, 2022 (the “MD&A for the third quarter of 2022”) and can be found under the sections “Non-GAAP Financial Measures and Ratios” and respective sub-headings labelled “Funds from operations (“FFO”)”, “NAV per Unit”, “Net operating income (“NOI”) and NOI Margin”, “Adjusted earnings before interest, taxed, 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” )”. The composition of supplementary financial measures included in this press release have been incorporated by reference from the MD&A for the third quarter of 2022 and can be found under the section “Supplementary Financial Measures and Other Disclosures”. The REIT’s MD&A for the third quarter of 2022 is available on SEDAR at www.sedar.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, net rental income, 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 intentions to implement our value-enhancing renovation initiatives at our properties and our expectations with respect to NOI growth and our belief that the OTCQX listing will broaden our investor base. 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, global and local economic and business conditions; uncertainties surrounding the COVID-19 pandemic; risks associated with unexpected or ongoing geopolitical events; risks inherent in the real estate industry; financing risks; and interest and currency rate fluctuations. 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; interest rates remain stable 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 final long-form prospectus dated April 29, 2022, including under the heading “Risk Factors” therein.

FOOTNOTES

(1) FFO is a non-GAAP financial measure. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. The most directly comparable financial measure to FFO is net income. 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 Appendices section of this press release reconcile FFO for the three months ended September 30, 2022 to net income.

(2) Diluted FFO per Unit is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. 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 MD&A for the period ended September 30, 2022, 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 ratio is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. Net total debt-to-net total assets ratio is comprised of net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). 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.

(5) Interest coverage ratio (times) is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. 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 reconcile Adjusted EBITDAFV to net income. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures and ratios and supplementary financial measures” in this press release.

(6) Available liquidity is a non-GAAP financial measure. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. The most directly comparable financial measure to available liquidity is cash and cash equivalents. The table included in the Appendices section of this press release reconcile available liquidity to cash and cash equivalents as at September 30, 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.

(7) Total equity (including Class B Units) is a non-GAAP financial measure. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. The most directly comparable financial measure to total equity (including Class B Units) is total equity. 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 Appendices section of this press release reconciles total equity (including Class B Units) to total equity as at September 30, 2022.

(8) Total number of Units includes 9,827,791 Trust Units and 9,959,830 Class B Units that are classified as a liability under IFRS.

(9) NAV per Unit is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. NAV per Unit is comprised of total equity (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.

(10) NOI is a non-GAAP financial measure. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. The most directly comparable financial measure to NOI is net rental income. The table included in the Appendices section of this press release reconciles NOI for the period from February 24, 2022 2022 to September 30, 2022 and to June 30, 2022 to net rental income. 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.

(11) NOI Margin is a non-GAAP ratio. This is not a standardized financial measure under IFRS and might not be comparable to similar measures disclosed by other issuers. NOI margin is defined as NOI (a non-GAAP financial measure) divided by investment properties revenue, as a percentage. 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.

Appendices

Reconciliation of F

Contacts

Dream Residential REIT
P. Jane Gavan
Chief Executive Officer

(416) 365-6572

jgavan@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

Acquisition provides the first international locations

BELOIT, Wis.–(BUSINESS WIRE)–ABC Supply Co., Inc., the nation’s largest wholesale distributor of roofing, siding and other select exterior and interior building products, has acquired the Monarch Group of Companies, which includes Monarch Siding Centre Inc., Monarch Exterior Centre Inc. and Monarch Metal Systems Inc. Monarch is a premier supplier of siding, roofing and select exterior building materials throughout Alberta, Canada.

The acquisition adds the first international ABC Supply branches. The five acquired locations in Calgary, Edmonton, Acheson, Red Deer and Lethbridge will operate under the Monarch trade name.

“This is an exciting time for the ABC Supply family,” said Keith Rozolis, ABC Supply’s president and chief executive officer. “Monarch is a strong, deeply rooted and highly regarded distributor of building products in Alberta, and we’re thrilled to have them join ABC Supply.”

Founded in 1992 and based in Calgary, Alberta, Canada, the Monarch Group distributes exterior building products, including vinyl, aluminum and fiber-cement siding; residential roofing materials; and related accessories, decking and gutters.

Visit abcsupply.com to learn more about the company and see all of ABC Supply’s locations.

About ABC Supply

ABC Supply Co., Inc. is the largest wholesale distributor of roofing in the United States and one of the nation’s largest wholesale distributors of select exterior and interior building products. Since its founding by Ken and Diane Hendricks in 1982, ABC Supply’s sole focus has been serving professional contractors and “making it easy” for them to do their jobs by offering the products, support and services they need — including myABCsupply, a tool that allows contractors to request measurement services, order materials, track deliveries, pay invoices and more.

A 16-time Gallup Exceptional Workplace Award winner and two-time recipient of Glassdoor’s Employees’ Choice Award for Best Places to Work, ABC Supply is an “employee-first” company that treats its associates with respect and gives them the tools they need to succeed. The company was also named a Best Employer for New Grads by Forbes in 2021.

Headquartered in Beloit, Wisconsin, ABC Supply has over 860 locations. More information is available at www.abcsupply.com. Contractors can find resources for growing and improving their businesses on ABC Supply’s blog and the company’s LinkedIn page.

Contacts

Marcie Waters

(608) 256-6357

mwaters@hiebing.com

Innovative Volumetric Prefabrication through Design-Assist & Manufacturing

LAS VEGAS–(BUSINESS WIRE)–#digitalfabrication—KHS&S, an industry leader in producing exterior finished wall panels, façades, interior framed walls, specialties, and themed construction, continues to pioneer prefabrication and offsite construction solutions. Now providing, Prefabricated Bathrooms Units (PBUs), Prefabricated Kitchen Units (PKUs), and prefabricated façades as Spek. KHS&S launches Spek at the Design-Build Conference & Expo (DBIA), Booth #654 in Las Vegas.

“Spek is a natural extension of the KHS&S brand. We’re excited to be back in the prefabricated bathroom and kitchen business while adding our prefabricated façade solutions to the brand,” said Bruce Holleran, Vice President, KHS&S. “Inquiries and increased interest from clients, general contractors and architects around PBUs and PKUs prompted us to launch Spek, which is positioned for success, because of our extensive history and experience.”

Industries geared toward volumetric prefabrication include healthcare, student housing, multi-family residential, education and hospitality, where projects require more than 100 repeatable PBUs or PKUs and are sized for trucking transport. For exterior prefabricated façades, feasibility is based on the number of building stories, finishes and integration of scope possibilities.

Optimal locations are metropolitan areas or remote areas. Busy city centers have limited laydown areas for onsite work, while rural areas may have difficulties securing materials, machinery, and a skilled workforce. Offsite construction solutions, eliminates these problematic areas that raise cost and increase timelines.

Design-Assist services coupled with Digital Fabrication is at the core of offsite construction. Digital Fabrication, the process where manufacturing is driven by technology, uses exact computer-generated measurements. This service allows clients to visualize their final Spek solution in an accurate 3D model prior to production. Once the drawings have been modeled and approved, output files are submitted to the Spek Fabrication Facility to construct.

“Whether designing PBUs, PKUs or prefabricated façades, collaboration in the Preconstruction phase is the driving force behind reducing costs, accelerating the schedule and improving constructability,” said Holleran. “Value analysis early in the process is important in driving long-term success.”

Located in Rancho Cucamonga, Calif., the Spek Fabrication Facility has the space and technology for mass production. More than 27 union associates work at the facility prefabricating all components of PBUs, PKUs, and prefabricated façades, including framing, drywall, tile, finishes and key MEP point of connection elements.

About Spek

Spek, an extension of the KHS&S brand, brings innovative prefabrication and manufacturing solutions to the construction industry. Providing the freedom to design and prefabricate volumetric units such as bathrooms, kitchens, and exterior facades in a controlled manufacturing environment. To learn more about Spek by KHS&S and its award-winning projects, please visit spek-ocs.com.

Contacts

Naomi Martin

Naomi.Martin@khsswest.com
+1 714-695-3670

The Ontario-based center will cater to Canadian & North American customers in Transportation Engineering Services and Digital Products

LTTS to hire 100 engineers over the next 18-24 months

TORONTO–(BUSINESS WIRE)–$LTTS #CommunicationsSystems–L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a leading global pure-play engineering services company, announced today the unveiling of its Engineering Research & Development (ER&D) Center in Toronto, Ontario (Canada), marking its third nearshore global design center in two quarters.

The ER&D Center in Toronto will initially focus on developing digital solutions for the transportation sector including railway engineering, for a global aerospace & rail major. The area of specialization would cover rail track defect detection, advanced mobility solutions, digital asset management, digital flyboard, sensors and communications systems.

The center will cater to LTTS’ Canada-based clients for developing cutting-edge solutions in Digital Products and also act as a nearshore site for North America-based customers to enable transformative, new-age initiatives in digital engineering.

With plans to hire over 100 engineers in the next 18-24 months, the ER&D center is expected to become a focal point to hire local talent and further bolster the region’s reputation as a hub for engineering and innovation.

The center was inaugurated by Mr. Amit Chadha, CEO and Managing Director of L&T Technology Services in the presence of Mr. Chris Pogue, CEO, Thales Canada, Mr. Ziad Rizk, COO of Ground Transportation Systems (GTS), Canada, Ms. Apoorva Srivastava, Consul General of India, The Hon. Victor Fedeli, Provincial Minister of Economic Development, Job Creation and Trade of Ontario, and Mr. Alind Saxena, Chief Sales Officer of LTTS.

Speaking on the occasion, Amit Chadha, Chief Executive Officer & Managing Director, L&T Technology Services said, “LTTS is recognized for being the engineering partner of choice for global leaders and developing new-age and sustainable technologies. Through this new ER&D center, our customers in Canada and North America can leverage our cutting-edge technologies and digital products. LTTS is committed to building exciting opportunities in the Canadian business ecosystem, while strategically expanding its North American footprint.”

Ziad Rizk, Chief Operating Officer, Ground Transportation Systems (GTS), Canada said, “With the vision to invest in new-age digital technologies in the railway engineering sector, we are delighted to partner with an ER&D leader like LTTS in Canada. We have over a decade-long partnership with LTTS which is further strengthened with the inauguration of this ER&D Center. Through this partnership, we are confident of continued innovation and providing effective, safe and modern railway capabilities for our customers.”

The Hon. Victor Fedeli, Ontarios’ Minister of Economic Development, Job Creation and Trade, said, “The City of Toronto is known to be the fastest growing city in North America due to its thriving technology ecosystem. We are delighted to welcome an industry leader like LTTS into our community and envision technological advancements and development of local talent through their ER&D centre. We look forward to LTTS’ participation in helping build economic value in the region, while supporting clients globally.”

His Excellency Mr. Manish, Acting High Commissioner of India to Canada, said, “The inauguration of this ER&D center is a big step towards further strengthening the relations between the two countries and promoting the Canada-India economic corridor. With the dedication to deliver innovative solutions and services to the North American clientele with the use of local resources, LTTS is establishing a strong technological footprint here in the region that is expected to benefit local communities and businesses.”

Earlier this year, LTTS inaugurated an Engineering Design Centre in Toulouse (France) and an ER&D Centre in Krakow (Poland), as part of its strategic global business expansion plans.

About L&T Technology Services Ltd

L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. We offer consultancy, design, development and testing services across the product and process development life cycle. Our customer base includes 69 Fortune 500 companies and 57 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries. Headquartered in India, we have over 21,400 employees spread across 20 global design centers, 28 global sales offices and 90 innovation labs as of September 30, 2022. For more information, please visit https://www.LTTS.com/

Contacts

Media Contact:
Aniruddha Basu

L&T Technology Services Limited

E: Aniruddha.Basu@LTTS.com
T: +91-80-67675707