annual general meeting | may 9, 2016 · *retai :l assumes $111/ psf of total profitability to 2.1...
TRANSCRIPT
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Annual General Meeting | May 9, 2016
Ned GoodmanChairman of the Board
Michael CooperChief Responsible Officer
Jane GavanPresident Asset Management,
CEO Dream Office,CEO Dream Global
Pauline AlimchandaniCFO
Corporate Strategy & Finance
Development Transactions
Financial Reporting& Investor Relations
Jason LesterSVP, Vice Chair,
Partnership Investments
Development Partnerships & Private Funds
Joshua KaufmanSVP, Retail Development
Retail Development
Dan MarinovicSVP, Vice Chair,
Partnership Investments
Calgary Edmonton
ReginaSaskatoon
David LeemingSVP, Commercial
Development
Commercial Development
George ValentiniEVP, General Counsel
Legal, Transactions
John DaminanakisCIO
Business & Information Systems
Our Senior Management Team
Dream Unlimited Corp.[TSX: DRM]
Michael Cooper Chief Responsible Officer
Across all our entities, we have amassed expertise in…..
Transactions & Deal Structuring Development Asset Management Legal People & Culture
Strategic Finance Construction, Planning & Estimating Acquisitions/Dispositions Strategic Tax and Compliance Brand & Media
Capital Markets Engineering Design,Architecture & Procurement Leasing Internal Controls Human Resources
Corporate & Project Finance Development Finance & Underwriting Property Accounting Technology Services Shared Sustainability
Debt & Equity Financing Joint Venture Partnerships Property Operations Business Transformation Risk & Insurance
Financial Reporting & Analysis Investments incl. Equity and Mezzanine Investments Portfolio Management Custom IT Platform Sales & Marketing
Our breadth of capabilities
Our Strategy
Our Strategy
_We continue to experience profound changes driven by our commitment to continuously elevate our capabilities to be experts in all areas of development
_In addition, we continue to provide asset management services for approximately $12 billion of income properties in Canada & Europe and have developed a business of providing asset management in our development activities and renewable power projects for another $3 billion.
Our Strategy
_We are changing every aspect of our development business to change with how people are living and to align our capabilities with the need for greater integration of the different types ofland uses within a community.
Our Strategy
_We are focusing on the urbanization in our cities.
We are also integrating income properties into both the development of our master planned communities in Western Canada and our urban residential / mixed-use properties in Toronto & Ottawa.
This will be our competitive advantage.
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Our Strategy
_ZibiOttawa/Gatineau
_Canary District (Pan Am Games Village)Toronto
_Distillery District Toronto
These three projects represent increasing opportunities to become a leading community where arts, culture, health and wellness blend with bustling business, shopping and entertainment to create desirable places to live, work and play. Demand is shifting towards these urban communities.
Building Urban Communities – Pan Am (Before)
Building Urban Communities – Pan Am (After)
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Building Urban Communities – Distillery District (Before)
Started as a historical heritage site
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Building Urban Communities – Distillery District (After)
Building Urban Communities – Distillery District (After)
Pure Spirit Clear Spirit Gooderham
Building Urban Communities – Zibi, Ottawa/Gatineau (Today)
Building Urban Communities – Zibi, Ottawa/Gatineau (Next)
_A World-Class sustainable community and redevelopment project.
Live an exceptionally unique and balanced lifestyle, combining the best of urbanity and healthy-living principles with a vibrant waterfront.
Our Core Development Business
Our Business
_As an integrated developer, we intend to participate in the market shareand profits of building:
_Retail & CommercialProperties
_Urban Mixed-Use & Condo Properties
_Single andMulti-family Properties
Our Business
_And manage all of our newly developed income generated properties as they are completed. We expect to find more opportunities in addition to what we already have.
Our Business
_We are fully immersed in each stage of the real estate development cycle.
This allows us to stay current, adapt, course-correct and manage in a changing economic environment to stay ahead in all areas we operate in.
This continues to be our competitive advantage
Our Strategy
building more sources ofrecurring income
Our Strategy – Building More Sources of Recurring Income
We are building out our current capabilities to diversify and generate recurring income
Retail Properties
$51M2015 Pre-Tax
IncomeCommercial Properties
Multi-Family Rental
Investment & Recreational
Properties
Asset Management
& Development Partnerships
Asset Management -
Energy & Infrastructure
Asset Management -
Dream Alternatives
2,200 skiers on average
each day
A-Basin has invested capital wisely and its recurring cash flow generation continues to increase
Recurring Income – Arapahoe Basin, Colorado
_Our little ski area has become increasing more significant to our organization
Net operating income grew by 94% from $3.5 million in 2013 to $7 million in 2015.
Overview of Our Markets –Western Canada
Our Markets: Calgary Calgary
1,816 Acres
163 Acres
479 Acres_Calgary
Dream’s Total Acreage: 2,800
# of units: 19,400(Single and Multi Family)
Commercial sq. ft. ~6 Mln
Dream Lands Held Future Ring RoadCity BoundaryCompleted Ring Road
ShoppingCentre
Commercial Homes
Our Markets: Calgary, Providence
Our Markets: Edmonton
Dream Lands Held
Future Ring Road
City Boundary
Completed Ring Road
_Edmonton
Dream’s total acreage in Edmonton: 2,100
# of units: 16,000(Single and Multi Family)
Commercial sq. ft. 0.5 Mln
ShoppingCentre
Commercial Homes
Building Retail within Our Markets: Edmonton, Tamarack
— x
Our Markets: Regina
Dream Lands Held
City Boundary
Ring Road_Regina
Dream’s total acreage in Regina: 3,800
# of units: 29,800(Single and Multi Family)
Commercial sq. ft. 1.2 Mln
ShoppingCentre
Commercial Homes
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Our Markets: Regina, Coopertown
Our Markets: Saskatoon: Saskatoon
_Saskatoon
Dream’s total acreage in Saskatoon: 4,500
# of units: 29,900(Single and Multi Family)
Commercial sq. ft. 5.1 Mln
Dream Lands Held
City Boundary
ShoppingCentre
Commercial Homes
Our Markets: Saskatoon, Holmwood
Asset Management
Property Operations
Housing Development
~500 Units
LandDevelopment
10,000 acres of land
Condominium& Mixed-Use Development
8,000 Condos
Retail & Commercial Development
280 acres
AssetManagement
& Management Services
Recreational Properties
Arapahoe Basin Ski- Hill
Energy &Infrastructure
214 MW
InvestmentProperties
576,000 sf
DreamAlternativesTrust
[TSX:DRA.UN]
Publicly listed funds – 54 Million sf.
Dream IndustrialREIT[TSX: DIR.UN]
Dream OfficeREIT[TSX: D.UN]
Dream GlobalREIT[TSX: DRG.UN]
Private
Institutional,DevelopmentPartnerships & Private Funds
Technology & Transformation People & Culture Legal & Risk Tax Corporate Branding
& Marketing
Shared Services Platform
Dream Unlimited Corp.[TSX: DRM]
$ 15 Billion of Assets Under Management
Pauline AlimchandaniChief Financial Officer
Changing Composition of our Income
2014 Composition of Income
2015 Composition of Income
2016Composition of Income
Land Housing Condo Investment & Recreational Properties Asset Management & Equity Ownership Energy & Infrastructure
*income presented excludes fair value gains
Historical Earnings Growth
0
50
100
150
200
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$ in
Mill
ions
Target is to continue to increase our earnings by 20% per year on average.
12 Year CAGR = 20%
A Lot of Embedded Growth Potential in Our Current Development Pipeline
345 Carlaw_Looking forward 10 years to 2025.
RetailFully owned pipeline of projects in Western Canada expected to be completed before 2025 have the potential to generate ~$230 million* of total profit (190 net acres or 2.1 million SF)
CondoPartnership pipeline of projects in Toronto & Ottawa expected to be completed before 2025 have the potential to generate ~$300 million* of total profit (6,700 units at project level / 6 million SF)
*Retail: assumes $111/psf of total profitability to 2.1 million of potential GLA in the retail pipeline, with profitability metrics based on active retail projects under construction as of March 31, 2016
* Condo: assumes $50/psf of total profitability to 6 million of potential SGFA in the condo pipeline, with profitability metrics based on active condo projects under construction as of March 31, 2016 (excludes CMCC Funds
2009 2010 2011 2012 2013 2014 2015 2016E
Development & Other Asset Management:
1. Dream Hard Asset Alternatives Trust
2. New Institutional Partnerships both in Canada and abroad
3. Development Partnerships
4. Energy & Infrastructure
Diversification & Growth of our Asset Management Business
Significant growth and diversification of our asset management business through the years.
Public REITs Development & Other Asset Management Activities
Our Financials
$3.73
$5.23
$6.43 $6.67
June 2013 2014 2015 Q1 2016 2016E
Growth in book equity per share since becoming a public company in 2013.
24% CAGR in Book Equity to Q1/16
excess liquidity | conservative leverage | strong access to capital | unencumbered assets
Our Financials – Strong Balance Sheet
32.8% Debt –to- Total Assets
Unencumbered Asset Pool
Up to $167 Million of Available
Liquidity
As always, our liquidity is our most important asset and we have ample excess liquidity. We also have a deep inventory of assets that can provide us with even more liquidity if needed
*As at March 31, 2016
Michael CooperChief Responsible Officer
_We have so many opportunities within our core/existing business lines, even more we execute on new transactions or ideas.
_Opportunity to foster a development company that can create income properties for Dream was not in our original plan when we became a public company less than 3 years ago.
_Our retail opportunities are massive and will make our company stronger, safer and more valuable over time.
_Our condo division has evolved into a real business with a strong pipeline and continues to be very profitable for our company.
_Maintaining our excess liquidity position enables to operate with immense flexibility in Western Canadian markets.
_Our lands are very valuable and do not believe our IRR’s are impacted materially over the long term from a lower level of “normal” in our lot volumes.
_It is an exciting time to invest, work and be a part of our company both from a financial and non-financial perspective.
Forward Looking Information & Non-IFRS MeasuresForwardLookingInformation
Thispresentationmaycontainforward-lookinginformationwithinthemeaningofapplicablesecuritieslegislation including,but notlimitedto,statementsregarding thetiminganddetailsofourcurrentandfuturehousing,condominiumandretaildevelopments,includingsize,capacity,density,cost,developmentmixandconstructionstart,completionandclosingdates,thestatusofourdevelopmentapplications,timingofoccupanciesandturnoverofourcondominiumprojects,ourexpectationsregardingourjointventuresandouranticipatedassetmixandcompositionofincome.Forward-looking informationisbasedonanumberofassumptionsandissubjecttoanumberofrisksanduncertainties,manyofwhicharebeyondDream’scontrol,whichcouldcauseactualresultstodiffermaterially fromthosethataredisclosedinorimpliedbysuchforward-lookinginformation.Theseassumptions,risksanduncertaintiesinclude,butarenotlimited to,generalandlocaleconomicandbusinessconditions;inflation;expandingourlanddevelopment,homebuildingandassetmanagementsegmentsinlinewithmanagement’sgoals;executingourplanswithrespecttoourretailandmulti-familysegments;achievingourcurrentfinancialgoals,includingwithrespecttopre-taxincome;continuedgrowthrateinlineourpastperformance;employment levels; regulatory risks;timingandcontentofourdevelopmentapprovals;mortgage ratesandregulations;environmental risks;consumerconfidence;seasonality;adverseweatherconditions; relianceonkeyclientsandpersonnelandcompetition.Allforwardlookinginformationinthispresentationspeaksasofthedateofthispresentation. Dreamdoesnotundertaketoupdateanysuchforwardlookinginformationwhetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbylaw.AdditionalinformationabouttheseassumptionsandrisksanduncertaintiesisdisclosedinfilingswithsecuritiesregulatorsfiledonSEDAR(www.sedar.com).
Non-IFRSMeasures
Dream’scondensedconsolidatedfinancialstatementsarepreparedinaccordancewithInternationalFinancialReportingStandards(“IFRS”).Inthispresentation,asacomplement toresultsprovidedinaccordancewithIFRS,Dreamdisclosesanddiscussescertainnon-IFRSfinancialmeasures,including:internalrateofreturn(IRR),assetsundermanagement, feeearningassetsundermanagement, debt-to-totalassets,netoperatingincomeor“NOI”,netmargin,grossmargin,developmentyield,estimatedcostofdevelopmentandestimatedstabilizedNOIaswellasothermeasuresdiscussedelsewhereinthisrelease.Thesenon-IFRSmeasuresarenotdefinedbyIFRS,donothaveastandardizedmeaningandmaynotbecomparablewithsimilarmeasurespresentedbyotherissuers.Dreamhaspresentedsuchnon-IFRSmeasuresasManagementbelieves theyare relevant measuresofourunderlyingoperatingperformanceanddebtmanagement. Non-IFRSmeasuresshouldnotbeconsideredasalternativestocomparablemetricsdeterminedinaccordancewithIFRSasindicators of Dream’sperformance,liquidity,cashflow,andprofitability.Forafulldescriptionofthesemeasuresand,whereapplicable,areconciliationtothemostdirectlycomparablemeasurecalculatedinaccordancewithIFRS,pleaserefer tothe“Non-IFRSMeasures”sectioninDream’sMD&AendedMarch31,2016.