HOUSTON–(BUSINESS WIRE)–Westlake Royal Building Products™ (Westlake Royal), a Westlake company (NYSE:WLK), is proud to offer fire-rated roofing and stone solutions designed to provide homeowners in wildfire-prone regions with added peace of mind and protection.

As wildfires increase in frequency and intensity in North America, particularly in densely brushed areas like California’s wildland-urban interface, Westlake Royal’s Class A¹ fire-rated roofing solutions and fire-rated wall cladding systems deliver advanced protection against wind-blown embers, radiant heat and flames. These innovative solutions are engineered to meet strict fire-resistance standards, helping to safeguard homes and communities from the growing threat of wildfires.

Westlake Royal’s portfolio of Class A fire-rated roofing assemblies includes industry-leading brands like Newpoint™ Concrete Roof Tile, US Tile^® Clay Roofing Products, Unified Steel™ Stone Coated Roofing, and DaVinci^® Roofscapes; as well as a portfolio of stone brands, including Cultured Stone^® and Eldorado Stone^®. Each product combines durability, aesthetic versatility and superior performance to help protect homes while enhancing curb appeal.

“At Westlake Royal Building Products, we understand the growing challenges builders, developers and homeowners face in wildfire-prone areas,” said Eric Miller, vice president of sales, Westlake Royal Building Products’ stone and roofing solutions brands. “Our Class A fire-rated roofing solutions and fire-resistant stone products offer superior protection without compromising style or performance.”

Roofing: Fire-Resistant Solutions Built to Last

Many of Westlake Royal’s roofing solutions are Class A certified, which can provide a high level of fire resistance, in compliance with the strict Wildland-Urban Interface (WUI) guidelines.

• Newpoint Concrete Roof Tile: A powerhouse in both durability and energy efficiency, Newpoint’s Class A fire-rated concrete tile roof assemblies help defend against extreme heat while offering Cool Roof color options to reduce heat absorption and energy costs. Its high-strength, non-combustibility and Limited Lifetime Warranty ensures longevity and protection against hail, wind and fire.
• US Tile Clay Roofing Products: US Tile’s real clay roof tiles are forged in fire, offering natural fire resistance and lasting durability. All US Tile roof assemblies meet Class A fire rating. These tiles are designed to enhance the architectural aesthetics of any home while withstanding extreme conditions. They come with a 50-year Limited Clay Product Warranty and offer beauty, longevity and peace of mind to homeowners in wildfire-prone areas.
• Unified Steel Stone Coated Roofing: Combines Class A fire-rated protection for certain assemblies with superior impact resistance and energy efficiency. Featuring Above Sheathing Ventilation (ASV) technology, Unified Steel enhances airflow, reducing heat absorption and keeping homes cooler while providing industry-leading wildfire defense. With a Limited Fully Transferable Warranty lasting 50 years and durability nearly three times longer than asphalt shingles, it’s a smart investment in home safety.
• DaVinci Roofscapes: Lightweight and durable, DaVinci’s composite roofing is Class A fire-rated when installed with proper fire-resistant underlayment, making it a premier choice for homeowners seeking both elegance and resilience.

Stone: Naturally Non-Combustible, Built for Safety

In addition to fire-rated roofing, Westlake Royal’s assortment of stone products, including Cultured Stone and Eldorado Stone, offer exceptional fire resistance. Tested by Underwriters Laboratories, Inc., Westlake Royal’s stone veneer products feature:

• Class A Fire Rating – Proven to have zero flame spread and zero smoke development, reducing fire hazards in home exteriors.
• Non-Combustible Strength – Unlike wood or other combustible materials, stone will not ignite, making it a reliable choice for wildfire-prone regions.
• Timeless Durability – While exposure to extreme heat may cause some discoloration over time, our stone products maintain their integrity and protection.

For more information on Westlake Royal Building Products’ fire-rated roofing solutions, visit: https://westlakeroyalroofing.com/fire.

About Westlake Royal Building Products

Westlake Royal Building Products USA Inc., a Westlake company (NYSE:WLK), is a leader throughout North America in the innovation, design, and production of a broad and diverse range of exterior and interior building products, including Siding and Accessories, Trim and Mouldings, Roofing, Stone, Windows and Outdoor Living. Westlake Royal Building Products manufactures high quality, low maintenance products to meet the specifications and needs of building professionals, homeowners, architects, engineers and distributors, while providing stunning curb appeal with an unmatched array of colors, styles, and accessories.

For more information, please visit WestlakeRoyalBuildingProducts.com. Follow us on LinkedIn and Instagram and “Like” us on Facebook.

¹ For certain assemblies – please go to https://qai.org to find the full listing of classifications for each product.

Contacts

Kriss Swint

Westlake Royal Building Products

Kswint@Westlake.com

Westlake Royal also expands the line with two new accessories

HOUSTON–(BUSINESS WIRE)–Westlake Royal Building Products^™ (“Westlake Royal”), a Westlake company (NYSE: WLK), has added a new V-Groove profile to the Celect^® Cellular Composite Siding line.

With its clean, modern look in both horizontal and vertical applications, the new V-Groove profile for the Celect Cellular Composite Siding line adds effortless elegance to virtually any home style. Its distinctive 12-foot length makes it perfect for vertical installations in homes with high ceilings and contemporary designs. In addition to the new profile, Celect will also debut two new accessories: corner and window trim.

“Westlake Royal Building Products is redefining exterior home construction by offering our customers a diverse selection of products in the latest trending profiles and colors, all with exceptional performance,” said Steve Booz, vice president of marketing at Westlake Royal Building Products. “We are excited to expand our Celect siding line with a new profile and two new accessories, expanding design possibilities for architects, builders and homeowners.”

Celect Cellular Composite Siding mimics the timeless aesthetic of natural wood while remaining low maintenance and durable for a lifetime. Its patented interlocking system ensures easy installation and provides a seamless, authentic look while keeping moisture out. Plus, its unique gravity lock design keeps courses locked tight to maintain structural integrity, eliminating warping, buckling and shifting while boosting wind resistance to more than 210 mph.

Backed by a 25-year color protection limited warranty¹ and capable of withstanding the harshest weather conditions, Celect stands as a testament to both beauty and longevity. Its fade-resistant Kynar Aquatec^® provides superior UV resistance and reduces energy demands, while its cellular PVC material resists dirt, seasonal staining and insects.

To learn more about Celect Siding and Trim products from Westlake Royal Building Products, please visit www.royalbuildingproducts.com/celect.

About Westlake Royal Building Products

Westlake Royal Building Products USA Inc., a Westlake company (NYSE: WLK), is a leader throughout North America in the innovation, design, and production of a broad and diverse range of exterior and interior building products, including Siding and Accessories, Trim and Mouldings, Roofing, Stone, Windows and Outdoor Living. Westlake Royal Building Products manufactures high quality, low maintenance products to meet the specifications and needs of building professionals, homeowners, architects, engineers and distributors, while providing stunning curb appeal with an unmatched array of colors, styles, and accessories.

For more information, please visit WestlakeRoyalBuildingProducts.com. Follow us on LinkedIn and Instagram and “Like” us on Facebook.

¹ For full product warranty details, please visit our website. The warranties found there are the sole warranties applicable to Westlake’s products.

Contacts

Media Contact:

Kriss Swint

Westlake Royal Building Products

Kswint@Westlake.com

LAS VEGAS–(BUSINESS WIRE)–Westlake Royal Building Products™ (“Westlake Royal”), a Westlake company (NYSE:WLK) debuts Handformed Brick™, a new, elevated tumbled brick profile from Dutch Quality Stone^®, at this year’s International Builders’ Show (IBS) in Las Vegas from February 25-27 in booth C3819. This new profile is available in three colorways including the newest addition, Snowpack™, a serene white palette inspired by freshly fallen snow.

Handformed Brick is Dutch Quality’s first brick product, marking a new chapter for one of the leaders in the manufactured stone veneer industry. Each piece is meticulously molded with exquisite variation and robust dimension, ensuring that every brick brings a unique textured depth and artisanal charm to any space. This attention to detail enhances visual appeal and adds authenticity to the design, blending traditional craftsmanship and modern innovation in any setting.

“The launch of this new Handformed Brick profile and Snowpack colorway marks an exciting milestone for the Dutch Quality brand by extending our product offering to include brick in a range of trending palettes,” said Steve Booz, vice president of marketing and product management at Westlake Royal Building Products. “Our goal is to empower specifiers to deliver innovative and inspiring solutions for their projects, and this new profile and colorway do just that.”

The Handformed Brick profile is available in three Dutch Quality Stone colorways including:

• Snowpack: A new colorway inspired by the crisp, clean essence of freshly fallen snow. This bright white hue conveys a sense of serenity, adding a touch of light to airy open spaces or a backdrop for striking contrasts.
• Quail Grey™: A balanced dusky sandstone and pewter toned colorway that establishes a captivating neutral with an undeniable rustic charm. Distinctive yet unobtrusive, this alluring color palette brings a calm confidence to complement the architectural details of any space.
• Coal Crest™: Embodies a dark and moody aesthetic that elevates the visual appeal of any space. Characterized by a rich blend of charcoal and ash tones, Coal Crest adds a touch of drama and sophistication, making it the perfect choice for those seeking to create a statement feature.

Dutch Quality Stone is a brand within the Westlake Royal Building Products portfolio of exterior and interior building products. For more information visit https://dutchqualitystone.com/.

About Dutch Quality Stone

Created by a tight-knit group of local artisans in Ohio, Dutch Quality exemplifies the hard work, tempered skills and straightforward solutions that have formed the brand’s identity since its humble beginnings. Its manufactured stone veneer products exhibit all the unique qualities of nature for application in a range of residential and commercial settings. Pride goes in. Proud comes out. For more information, visit DutchQualityStone.com.

About Westlake Royal Building Products

Westlake Royal Building Products USA Inc., a Westlake company (NYSE:WLK), is a leader throughout North America in the innovation, design, and production of a broad and diverse range of exterior and interior building products, including Siding and Accessories, Trim and Mouldings, Roofing, Stone, Windows and Outdoor Living. For more than 50 years, Westlake Royal Building Products has manufactured high quality, low maintenance products to meet the specifications and needs of building professionals, homeowners, architects, engineers and distributors, while providing stunning curb appeal with an unmatched array of colors, styles, and accessories. For more information, please visit WestlakeRoyalBuildingProducts.com. Follow on LinkedIn and Instagram and “Like” us on Facebook.

Contacts

Media Contact:

Sarah Lograsso

Westlake Royal Building Products

SLograsso@Westlake.com

HOUSTON–(BUSINESS WIRE)–Westlake Royal Building Products^™ (“Westlake Royal”), a Westlake company (NYSE: WLK), is expanding its Versetta Stone^® siding offerings with the addition of three new colors—Granite Peak, Lunar Drift and Glen Canyon—reflecting the latest trends in home design for interior and exterior applications. Featuring a panelized format that simply hangs with screws, Versetta Stone siding provides the beauty and texture of authentic stone masonry without the added time required for installation.

The colors comprise both bold and neutral tones for ultimate versatility:

• Granite Peak: A dark gray stone siding, Granite Peak features rich tones and natural variances that embody a contemporary aesthetic. The hue delivers a striking, sophisticated visual contrast that adds a wow factor to any application.
• Lunar Drift: Lunar Drift’s white stone siding exudes a clean, modern elegance that can brighten any façade. Its subtle variations add depth for a bold sensibility.
• Glen Canyon: Like its namesake, Glen Canyon’s warm, earthy tones evoke a sense of comfort and natural beauty. Its textured surface and varied shades create an inviting atmosphere.

“Consumers continue to be drawn to rich hues that reflect both a sense of timelessness and a modern appeal, and these three new colors deliver on those trends,” said Steve Booz, vice president of marketing at Westlake Royal Building Products. “From the creamy white-gray of Lunar Drift to the modern gray of Granite Peak to the desert-like tans and taupes of Glen Canyon, each new color brings a level of authenticity and natural appeal to exterior and interior applications.”

The new colors are available in two of Versetta Stone’s profiles: Tight-Cut, a rugged texture with purposeful irregularity and a well-worn look that suggests years in the elements, and Ledgestone, offering the traditional look of quarried limestone fitted tightly together to emulate rural 19th-century American architecture.

To learn more, visit www.versettastone.com.

About Westlake Royal Building Products

Westlake Royal Building Products USA Inc., a Westlake company (NYSE:WLK), is a leader throughout North America in the innovation, design, and production of a broad and diverse range of exterior and interior building products, including Siding and Accessories, Trim and Mouldings, Roofing, Stone, Windows and Outdoor Living. Westlake Royal Building Products manufactures high quality, low maintenance products to meet the specifications and needs of building professionals, homeowners, architects, engineers and distributors, while providing stunning curb appeal with an unmatched array of colors, styles, and accessories.

For more information, please visit WestlakeRoyalBuildingProducts.com. Follow us on LinkedIn and Instagram and “Like” us on Facebook.

Contacts

Media Contact:

Kriss Swint

Westlake Royal Building Products

Kswint@Westlake.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 for rental rates and per unit amounts, unless otherwise stated.

TORONTO–(BUSINESS WIRE)–DREAM OFFICE REAL ESTATE INVESTMENT TRUST (D.UN-TSX) (“Dream Office REIT”, the “Trust” or “we”) today announced its financial results for the three months ended December 31, 2024. Management will host a conference call to discuss the financial results on Monday, February 24, 2025, at 10:00 a.m. (ET).

OPERATIONAL HIGHLIGHTS AND UPDATE
(unaudited)

	As at
	December 31,				September 30,			December 31,
		2024			2024			2023
Total properties(1)
Number of active properties		24			26			26
Number of properties under development		2			1			2
Gross leasable area (in millions of square feet)		4.8			5.1			5.1
Investment properties value	$	2,175,015		$	2,303,308		$	2,342,374
Total portfolio(2)
Occupancy rate – including committed (period-end)		81.1%			84.5%			84.4%
Occupancy rate – in-place (period-end)		77.5%			80.9%			82.0%
Average in-place and committed net rent per square foot (period-end)	$	27.20		$	26.37		$	26.35
Weighted average lease term (years)		5.5			5.2			5.2
Occupancy rate – including committed – Toronto (period-end)		83.8%			88.0%			89.0%
Occupancy rate – in-place – Toronto (period-end)		80.2%			84.5%			85.4%
See footnotes at end.

		Three months ended
		December 31,			December 31,
		2024			2023
Operating results
Funds from operations (“FFO”)(3)	$	14,104		$	14,588
Comparative properties net operating income (“NOI”)(4)		24,742			24,756
Net rental income		27,286			25,760
Net loss		(19,101)			(42,424)
Per unit amounts
Diluted FFO per unit(5)(6)	$	0.72		$	0.75
Distribution rate per Unit(6)		0.25			0.50
See footnotes at end.

“We continue to manage our business in a very uncertain environment with a focus on reducing risk, improving liquidity and increasing our occupancy,” said Michael Cooper, Chief Executive Officer of Dream Office REIT. “The announced sale of 438 University is an attractive transaction for the Trust that will immediately reduce debt and increase liquidity. Our proposed plan to convert 606-4^th Ave in Calgary from an office building to a new residential rental building will mitigate future office leasing risk in a very challenging market, diversify the Trust’s source of income and improve the average quality of our portfolio. We will be very focused on leasing 74 Victoria and other vacancies in our portfolio to improve occupancy in 2025.”

In the midst of significant macro-economic uncertainties and continuing challenges in the Canadian office real estate sector, the Trust remains focused on delivering stable operational and financial performance in 2025 and beyond.

We believe our portfolio is well-located, difficult to replace and uniquely positioned to outperform over the long term. Through our plan to invest capital in our best buildings over the past six years, the renovations across our best assets are substantially complete and we have created a uniquely competitive portfolio that is well positioned to attract high-quality tenants.

Relative to Q3 2024, our in-place occupancy decreased from 80.9% to 77.5% and our in-place and committed occupancy rate decreased from 84.5% to 81.1%. The quarter-over-quarter decrease of 3.4% of total portfolio in-place occupancy was attributable to the reclassification of 438 University Avenue to properties held for sale (-1.2%), 23,000 square feet of negative absorption in Other markets (-0.5%) which was partially offset by the reclassification of 606-4th Building & Barclay Parkade to properties under development (+0.5%), and 142,000 square feet of net negative absorption at 74 Victoria Street for a previously known and announced lease expiry during Q4 2024 (-3.1%). Despite this lease expiry, occupancy in Toronto downtown only decreased by 98,000 square feet as the Trust had positive absorption totalling 43,000 square feet over the remainder of the region quarter-over-quarter (+0.9%). Subsequent to the quarter, the Trust signed a conditional lease for approximately 54,000 square feet at 74 Victoria Street for a term of 5 years at approximately $28.50 net rent per square foot to increase the committed occupancy at 74 Victoria from 46% to 67%. The Trust is also in negotiations with prospective tenants for up to an additional 50,000 square feet. As part of the leasing strategy at 74 Victoria, the Trust is undergoing a renovation program to modernize the lobby and is constructing built-out space on certain floors to help attract future potential tenants.

Year-over-year, total portfolio in-place occupancy decreased from 82.0% in Q4 2023 to 77.5% in Q4 2024 and our in-place and committed occupancy declined from 84.4% in Q4 2023 to 81.1% in Q4 2024. In-place occupancy declined year-over-year due to negative absorption in both regions due to the reasons previously mentioned above. Excluding the effect of the lease expiry at 74 Victoria, Toronto downtown experienced overall net positive absorption of 0.9% in the remainder of its properties in the region compared to the prior year.

The Trust has 164,000 square feet of vacancy committed for future occupancy. In Toronto downtown, 95,000 square feet, or 3.3% of the region’s total gross leasable area, is scheduled to commence in 2025 at net rents 1.6% above prior net rents on the same space with a weighted average lease term of 8.2 years and 9,000 square feet in 2026 at 15.4% higher net rents than prior net rents on the same space with a weighted average lease term of 15.0 years.

In the Other markets region, 60,000 square feet, or 3.5% of the region’s total gross leasable area, is scheduled to commence in 2025 at 21.1% below prior net rents on the same space with a weighted average lease term of 12.6 years.

During Q4 2024, the Trust executed leases totalling approximately 122,000 square feet across its portfolio. In Toronto downtown, the Trust executed 43,000 square feet of leases at a weighted average initial net rent of $33.45 per square foot, or 5.5% higher compared to the weighted average prior net rent per square foot on the same space, with a weighted average lease term of 5.0 years. In the Other markets region, comprising the Trust’s properties located in Calgary, Saskatoon, Regina, Mississauga, Scarborough and the United States (“U.S.”), the Trust executed leases totalling 79,000 square feet at a weighted average initial net rent of $16.99 per square foot, or 16.4% lower than the weighted average prior net rent per square foot on the same space, with a weighted average lease term of 7.8 years. Subsequent to December 31, 2024, the Trust executed a further 76,000 square feet of leases in Toronto downtown at a weighted average initial net rent of $29.42 per square foot.

Since the beginning of the year to today’s date, the Trust has executed leases totalling approximately 710,000 square feet across its portfolio. In Toronto downtown, the Trust has executed 411,000 square feet of leases at a weighted average initial net rent of $33.84 per square foot, or 8.1% higher than the weighted average prior net rent per square foot on the same space, with a weighted average lease term of 5.8 years. In the Other markets region, the Trust has executed leases totalling 299,000 square feet at a weighted average initial net rent per square foot of $16.49, or 3.0% lower than the weighted average prior net rents on the same space, with a weighted average lease term of 7.3 years.

2025 REVOLVING CREDIT FACILITY AND MORTGAGE REFINANCING UPDATE

Subsequent to the quarter, the Trust obtained conditional credit approval for an extension of its $375 million credit facility from its existing syndicate of lenders. Prior to the Trust’s refinancing efforts during the year, the Trust’s 2025 debt maturities, including commitments, totalled $741 million, or 53.0% of its total debt stack. Since the beginning of 2024 to today’s date, the Trust has refinanced or received credit approval for a total of $711 million of maturing 2025 debt without paydown and at terms attractive to the Trust, which has eliminated all the Trust’s near-term refinancing risk.

The Trust is in advanced negotiations for its remaining $30 million mortgage maturity and anticipates the refinancing will be complete by Q2 2025.

The Trust’s 2026 debt maturities total $165.5 million across six mortgages. The Trust anticipates that it will be able to successfully address all of its 2026 debt expiries at or before maturity.

DISPOSITION OF 438 UNIVERSITY AVENUE

On January 24, 2025, subsequent to the quarter, the Trust announced that it entered into a binding agreement to sell 438 University Avenue in Toronto, Ontario, for gross proceeds before transaction costs of approximately $105.6 million or approximately $327 per square foot.

As part of the transaction, the Trust secured the benefit of relocating approximately 17,000 square feet of tenants from 438 University Avenue to other downtown Toronto buildings within the Trust’s portfolio which will increase net operating income in those buildings by over $1 million on an annual basis. In addition, the Trust also received a relocation right to move one of the last tenants at 250 Dundas St. W. so that the building is fully unencumbered which would reduce costs significantly in the development, thereby improving the profit and value of our purpose-built rental development site.

The Trust and the purchaser have also entered into a property management agreement at market terms for the Trust to continue to manage the property for the purchaser for a period of three years.

We believe the transaction is attractive to the Trust as we estimate that these combined incremental benefits represent a value of over $20 million or $62 per square foot to the Trust. The Trust intends to use the proceeds to repay the $68.9 million property mortgage outstanding and use the balance of the proceeds to pay down its corporate credit facility to reduce leverage and improve liquidity. The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions.

As at December 31, 2024, the Trust classified 438 University Avenue as an asset held for sale totalling $105.6 million, or approximately $327 per square foot and associated liabilities totalling $68.9 million.

REDEVELOPMENT OF 606-4th BUILDING & BARCLAY PARKADE

Since the end of 2014, the Trust has sold 64 buildings spanning 7.1 million of owned square feet in western Canada for $1.3 billion or approximately $177 per square foot which the Trust believes is attractive pricing relative to private market valuations in today’s market.

The Calgary Office market has remained very challenging with vacancy elevated at 27%⁽⁷⁾ over the trailing ten-year average. The Trust’s remaining three assets in the city, spanning approximately 464,000 square feet, are well located and in good condition with a weighted average occupancy of 84.9%, well above Downtown Calgary’s office occupancy of approximately 70%⁽⁸⁾ as at Q4 2024. The Trust continually explores strategies to reduce risk and improve the value of individual assets within the portfolio.

Over the past year, the Trust has been working on the design, approvals and strategic partnerships to create a financially viable redevelopment model. The redevelopment opportunity will convert the existing 126,000 square foot office building into a brand new 166-unit, purpose-built rental residential apartment. Concurrently, the Trust is working to relocate the office tenants within 606-4th Building to the adjacent 444-7th Building. At a 4.6%⁽⁹⁾ apartment market vacancy and 30%⁽⁸⁾ office vacancy in Calgary, this pivot in strategy derisks the portfolio while unlocking value. In addition, this strategy will allow the Trust to improve the occupancy of 444-7th while creating a new residential rental building in downtown Calgary, thereby reducing the operational and financial risk of both buildings.

The Trust is in advanced stages of negotiations for a grant of up to $11 million from the City of Calgary for residential conversion at 606-4th Building & Barclay Parkade as part of the City’s Calgary Downtown Development Strategy Incentive Program. The Trust is also in the process of securing government financing for a ten-year loan at an interest rate lower than that of conventional development and mortgage loans. The Trust is currently in the process of finalizing a construction management contract following a market bid process and is also in discussions to potentially bring in a joint venture partner on the project to further reduce construction and balance sheet risk.

With considerations of the above milestones that were achieved on the project during the quarter, the Trust has reclassified 606-4th Building & Barclay Parkade to properties under development.

67 RICHMOND STREET WEST – REDEVELOPMENT PROJECTS UPDATE

The development project at 67 Richmond Street West comprises full modernizations of the property, including technical systems, interior lighting and elevators, along with enhanced common areas and larger floorplates.

To date, we have spent $9.6 million on the project at 67 Richmond Street West, $6.3 million of which has been funded by the CIB Facility. As a result of the redevelopment, the Trust attracted Daphne restaurant, which has been awarded Best Upscale Restaurant by Hospitality Design, for the entire ground floor retail space for a term of ten years. Including a 6,500 square foot office lease signed during the quarter at net rents of $21.05 per square foot, the Trust has leased 18,600 square feet of the 51,000 square foot building and is currently in active discussions with prospective tenants for the remainder of the space in the building. During the quarter, the scope of the project at 67 Richmond Street West was expanded to include building out model suites for the remainder of the vacant space at the property to meet the current market demand for move-in ready space and reduce lease-up time.

During the year, the Trust implemented a model suite program investing capital in identified spaces across our portfolio to create move-in ready spaces. The program was implemented for nine suites, representing 56,000 square feet across four of its buildings and has since executed deals on all of the four completed suite spaces. The Trust anticipates replicating this strategy at 67 Richmond Street West will attract high-quality tenants to this building. With the expansion in project scope, 67 Richmond Street West is expected to be completed at the end of Q2 2025.

FINANCING AND LIQUIDITY UPDATE

KEY FINANCIAL PERFORMANCE METRICS		As at
(unaudited)		December 31,			December 31,
		2024			2023
Financing
Weighted average face rate of interest on debt (period-end)(10)		4.75%			4.53%
Interest coverage ratio (times)(11)		1.8			2.0
Net total debt-to-normalized adjusted EBITDAFV ratio (years)(12)		12.1			11.5
Level of debt (net total debt-to-net total assets)(13)		52.9%			50.0%
Average term to maturity on debt (years)		3.4			3.3
Undrawn credit facilities, available liquidity and unencumbered assets
Undrawn credit facilities (in millions)	$	119.7		$	174.0
Available liquidity (in millions)(14)		138.0			187.2
Unencumbered assets (in millions)(15)		2.3			17.1
Capital (period-end)
Total number of REIT A and LP B units (in millions)(6)(16)		19.0			18.9
Net asset value (“NAV”) per unit(6)(17)	$	59.47		$	66.31
See footnotes at end.

As at December 31, 2024, the Trust had $2.6 billion of total assets, including $2.2 billion of investment properties, $1.3 billion of total debt and $1.1 billion of equity.

During the quarter, the Trust closed on its $225.0 million maturity mortgage loan at Adelaide Place with a syndicate of global and Canadian financial institutions for a term of five years at a floating interest rate based on the daily Canadian Overnight Repo Rate Average (“CORRA”) plus 2.40%. In connection with the refinancing, the Trust entered into a fixed-for-variable swap to fix the interest rate on the mortgage at 5.479%.

On December 17, 2024, the Trust negotiated a one-year extension to December 7, 2026 for a $66.5 million interest-only mortgage secured by a property in Scarborough, Ontario, bearing interest at daily CORRA plus 2.245%. The Trust has previously entered into a fixed-for-variable interest rate swap relating to this mortgage, fixing the interest rate at approximately 6.44%.

As at December 31, 2024, the Trust had approximately $138.0 million of available liquidity⁽¹³⁾, comprising $18.3 million of cash, undrawn revolving credit facilities totalling $38.2 million, undrawn amounts on our non-revolving term loan facility pertaining to the 15-year lease at 366 Bay Street totalling $0.4 million and undrawn amounts on our CIB Facility of $81.0 million, which provides low-cost, fixed-rate financing solely for the purpose of commercial property retrofits to achieve certain energy efficiency savings and greenhouse gas emission reductions. Subsequent to the quarter, the Trust announced the sale of 438 University Avenue which is expected to close in Q1 of 2025. The Trust intends to use the proceeds to repay the property mortgage outstanding and use the balance of the proceeds to pay down its corporate credit facility to reduce leverage and improve liquidity.

During Q4 2024, the Trust drew $3.5 million against the CIB Facility. In total, we have drawn $31.8 million against the CIB Facility since 2022. These draws represent 80% of the costs to date for capital retrofits at 13 properties in Toronto downtown for projects to reduce the operational carbon emissions in these buildings by an estimated 3,241 tonnes of carbon dioxide, or 57.5%, per year on project completion. Of the $31.8 million drawn on the CIB facility, $8.8 million was used to fund the full building retrofit of 366 Bay Street to secure a full building lease for a term of 15 years. A further $6.3 million has been used for the redevelopment of 67 Richmond Street West.

SUMMARY OF KEY PERFORMANCE INDICATORS

• Net loss for the quarter: For the three months ended December 31, 2024, the Trust generated a net loss of $19.1 million. Included in net loss for the three months ended December 31, 2024 are negative fair value adjustments to investment properties totalling $38.9 million across the portfolio, interest expense on debt of $17.3 million, impairment of vendor takeback mortgage (“VTB mortgage”) receivables totalling $4.3 million, partially offset by net rental income totalling $27.3 million, fair value adjustments to financial instruments totalling $12.3 million primarily due to remeasurement of the carrying value of subsidiary redeemable units as a result of a decrease in the Trust’s unit price over the quarter net of fair value losses on rate swap contracts due to declining market yield curves, net income from our investment in Dream Industrial REIT of $3.4 million and a net deferred tax recovery of $2.2 million relating to our sole investment property in the U.S.

• Diluted FFO per unit⁽⁵⁾⁽⁶⁾ for the quarter: For the three months ended December 31, 2024, diluted FFO per unit decreased by $0.03 per unit to $0.72 per unit relative to $0.75 per unit in Q4 2023, driven by higher interest expense (-$0.07) and lower NOI from 438 University Avenue due to lower occupancy (-$0.02), partially offset by lower tenant provisions (+$0.03), higher income relating to properties sold in prior periods for post-closing adjustments (+$0.02) and higher FFO from Dream Industrial REIT (+$0.01). Included in FFO for the three months ended December 31, 2024, are year-end cash adjustments that are included in other income and income arising from properties sold in prior periods totalling $0.07 per unit, the amounts of which could vary from period to period. Excluding these items, diluted FFO per unit for the three months ended December 31, 2024 would have been $0.65 per unit.

• Net rental income for the quarter: For the three months ended December 31, 2024, net rental income increased by 5.9%, or $1.5 million, over the prior year comparative quarter, due to an overall reduction in provisions, income from sold properties for post-closing adjustments relating to properties sold in prior periods and other income comprising a write-off of provisions which are no longer required and year-end billing adjustments.

• Comparative properties NOI⁽⁴⁾ for the quarter: For the three months ended December 31, 2024, comparative properties NOI decreased slightly by 0.1%, or $14 thousand, over the prior year comparative quarter, as higher in-place rents in Toronto downtown and Other markets from rent step-ups, higher rates on new leases and renewals and free rent expiries were offset by lower weighted average occupancy in both regions.

  For the three months ended December 31, 2024, comparative properties NOI in Toronto downtown increased by 2.1%, or $0.4 million, over the prior year comparative quarter, primarily due to higher in-place rents from rent step-ups, higher rates on renewals and new leases and free rent periods rolling off, partially offset by lower weighted average occupancy in the region primarily driven by the 206,000 square foot lease expiry at 74 Victoria in October 2024.

• In-place occupancy: Total portfolio in-place occupancy on a quarter-over-quarter basis decreased by 3.4% relative to Q3 2024. In Toronto downtown, in-place occupancy decreased by 4.3% relative to Q3 2024 as 356,000 square feet of expiries were partially offset by 209,000 square feet of renewals and 49,000 square feet of new lease commencements. The major driver of the decrease in in-place occupancy in Toronto downtown was 142,000 square feet of net negative absorption at 74 Victoria (-4.9%) for a previously known and announced lease expiry during Q4 2024. Despite this lease expiry, occupancy in Toronto downtown only decreased by 98,000 square feet as the Trust had positive absorption totalling 43,000 square feet over the remainder of the region (+1.5%). The reclassification of 438 University Avenue to assets held for sale also led to a slight decrease in in-place occupancy in the region (-0.9%). Subsequent to the quarter, the Trust entered into a binding agreement to sell 438 University Avenue and as part of the transaction, the Trust secured the benefit of relocating approximately 17,000 square feet from the sold property to other Toronto downtown buildings within its portfolio, representing approximately 0.6% of the region’s total gross leasable area.

  In the Other markets region, in-place occupancy decreased by 1.6% relative to Q3 2024 driven by net negative absorption (-1.3%) as 84,000 square feet of expiries were partially offset by 46,000 square feet of renewals and 15,000 square feet of new lease commencements and the reclassification of 606-4th Building & Barclay Parkade to properties under development (-0.3%).

  Total portfolio in-place occupancy on a year-over-year basis decreased from 82.0% in Q4 2023 to 77.5% this quarter, driven by the lease expiry at 74 Victoria Street in Toronto downtown, negative absorption in Other markets, along with the aforementioned negative effects of 438 University Avenue classified as held for sale in Toronto downtown and the reclassification of 606-4th Building & Barclay Parkade to properties under development in Q4 2024.

• Lease commencements for the quarter: For the three months ended December 31, 2024, excluding temporary leasing, 258,000 square feet of leases commenced in Toronto downtown at net rents of $34.

Contacts

For further information, please contact:

Michael J. Cooper
Chairman and Chief Executive Officer

(416) 365-5145

mcooper@dream.ca

Jay Jiang
Chief Financial Officer

(416) 365-6638

jjiang@dream.ca

Read full story here

Survey Finds Nearly Half of Agents Planning to Increase Marketing Spend in 2025

TORONTO & NEW YORK–(BUSINESS WIRE)–The Real Brokerage Inc. (NASDAQ: REAX, “Real”), a technology platform reshaping real estate for agents, home buyers and sellers, today released results from its January 2025 Agent Survey. The findings indicate growing market momentum as 2025 begins, building off a survey high Agent Optimism Index reading in December 2024.

“For the first time in nearly three years, the housing market is showing more consistent signs of life,” said Tamir Poleg, Chairman and CEO of Real. “These early indications of recovery are a positive development for agents, buyers and sellers alike.”

“This month’s survey reinforces what we hear from agents every day—relationships drive real estate,” said Sharran Srivatsaa, President of Real. “Networking, referrals and community engagement remain the most effective lead generation sources, while social media and digital tools complement those efforts.”

Key Survey Findings: Market Trends and Insights

• Transaction Growth Index Moves into Positive Territory for the First Time: Real’s Transaction Growth Index, which measures year-over-year changes in home sales activity as reported by agents, rose to 51.3 in January, up from 47.7 in December. A score above 50 indicates year-over-year growth in transaction activity.
  • The U.S. sub-index reached 50.2—the second time it has been in expansionary territory since a brief uptick in April 2024.
  • Canada’s sub-index increased to 60.5 in January, up from 56.7 in December, continuing its expansionary streak since September 2024.
• Agent Optimism Index Holds Near Survey High: Real’s Agent Optimism Index, which tracks agent sentiment on their local market outlook over the next 12 months, came in at 74.0 in January, slightly lower than 76.4 in December, but still the second-highest reading to-date. In January, 49% of agents reported feeling more optimistic compared to the previous month, and an additional 27% felt significantly more optimistic. Only 6% of agents felt more pessimistic, while 18% were neutral.
• Markets Begin 2025 in Balance, With Slight Seller Advantage: Thirty-six percent (36%) of agents described their market as balanced in January, down from 40% in December. Meanwhile, 34% of agents reported a seller’s market, up from 30% the prior month, while 30% identified a buyer’s market, unchanged from December.
• Affordability Remains a Key Challenge for Buyers: With average mortgage rates briefly surpassing 7% again in January, 60% of agents cited affordability as the biggest hurdle for homebuyers, up slightly from 59% in December. Inventory constraints and economic uncertainty remained steady at 23% and 10%, respectively, while buyer competition remained low, with 3% of agents citing it as a key challenge.

Key Survey Findings: Lead Generation Trends

• Two-Thirds of Agents Cite Relationship-Based Lead Generation as Most Effective: When asked about their most effective lead sources, 66% of agents identified relationship-driven strategies as their primary source of business, with 42% relying on direct referrals and agent networking and 24% leveraging their sphere of influence and community engagement. Social media was cited as the most effective lead source by 13% of agents, while open houses (6%), residential search portals and traditional marketing strategies played a smaller role (each under 5%).
• Most Agents Spent Less Than $5,000 on Marketing in 2024: Given the dominance of networking and referrals, 41% of agents spent under $2,500 on marketing and lead generation in 2024, with another 20% spending between $2,500 and $5,000. Meanwhile, 15% of agents spent between $5,000 and $10,000 and 9% spent between $10,000 and $15,000. Fifteen (15%) of agents spent more, although the range varied widely. Only 3% of agents spent more than $50,000 on marketing and lead generation in 2024.
• Nearly Half of Agents Plan to Increase Marketing Budgets in 2025: Forty-seven percent (47%) of agents anticipate increasing their marketing and lead generation spend in 2025, with 35% planning a moderate increase and 12% expecting a significant boost—likely reflecting improved optimism for the year ahead. Meanwhile, 40% of agents expect to maintain their current spending levels, while only 8% foresee reducing their marketing budgets compared to 2024.
• Limited Use of Residential Search Portals, but Some Agents Invest Heavily: Only 31% of agents plan to use residential search portals (Zillow, Homes.com, Realtor.com, etc.) for lead generation in 2025, while 69% do not intend to allocate any marketing budget to these platforms. Among those who do utilize portals, 34% expect to spend less than $1,000, 14% plan to invest between $1,000 and $2,000, and 21% anticipate spending between $2,000 and $5,000. However, a subset of power users exists—31% of agents using portals (equivalent to 9% of total respondents) expect to spend over $5,000, including 7% (or 2% of total respondents) who plan to invest more than $20,000.

A summary presentation of these results can be found on Real’s investor relations website at the link here.

About the Survey

The Real Brokerage January 2025 Agent Survey included responses from approximately 900 real estate agents across the United States and Canada and was conducted between January 31, 2025 and February 7, 2025. Responses to questions regarding transaction growth and agent optimism were calibrated on a 0-100 point index scale, with readings above 50 indicating an improving trend, whereas readings below 50 indicate a declining trend. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real’s company-specific growth trends. Additionally, given the smaller sample size, there can be greater variability in Canada index results on a month-to-month basis.

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 over 25,000 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 the residential real estate market in the U.S. and Canada.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to expectations regarding 2025 market conditions. 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 and economic and industry downturns. 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, 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

press@therealbrokerage.com
201.564.4221