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

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