TORONTO--(BUSINESS WIRE)--DREAM IMPACT TRUST (TSX: MPCT.UN) ("Dream Impact", "we", "our" or the "Trust") today provided a business update.
We are pleased to report that year to date in 2023, the Trust has closed on two significant refinancings which have provided additional liquidity for the Trust to fund its ongoing capital commitments.
On January 31, 2023, the Trust closed on the refinancing of 49 Ontario St. for gross proceeds of $80 million, generating excess cash of approximately $30 million. Since acquiring the site and adjacent land assembly, the value of this asset has increased by $93 million. The Trust owns 100% of 49 Ontario St. and we anticipate achieving over 800,000 square feet (“sf”) of density through rezoning this year.
Victory Silos is a 5.2-acre site located along downtown Toronto’s waterfront and immediately adjacent to the Trust’s Quayside development site. The Trust has a 37.5% interest in the asset which was originally acquired in 2016. Due to the increase in land value since acquisition we were able to re-finance the in-place loan from $35 million to $150 million, covering capital requirements for Quayside and generating excess cash of $22 million for the Trust.
We are making steady progress on our development pipeline as we look to complete an additional $500 million in high-quality income generating assets over the next three-year period. Our next completed asset, West Don Lands Block 8, will add a further 770 multi-family rental units to the Trust’s portfolio (at 100% asset level) this year as we welcome our first tenants to the West Don Lands neighborhood.
As it relates to select assets outside of the GTA, we are extremely pleased to see strong leasing activity at Aalto Suites, our first rental building at Zibi. Aalto Suites is a 162-unit multi-family property located in Gatineau, Quebec on the shore of the Ottawa River. The property is currently 93% leased, ahead of our stabilization target, at rents in line with budget. Within its current development pipeline, the Trust has two additional multi-family rental buildings (Block 206 and Block 11) comprising 355 units currently under construction. We intend to build off of our leasing momentum with Aalto Suites, with first tenant occupancies for Block 206 and Block 11 anticipated in late 2023.
Since 2019, to assist the Trust with liquidity preservation, Dream Unlimited Corp. has settled its asset management fee in units of the Trust in lieu of cash, calculated based on the Trust’s most recently published net asset value figure. As of March 8, 2023, Dream Unlimited Corp. has a 32% ownership stake in Dream Impact, inclusive of units acquired in the open market, units received as settlement of asset management fees, units earned as part of the Trust’s distribution reinvestment plan, and interests held by the Trust’s Portfolio Manager, demonstrating strong sponsorship support and alignment with the Trust’s defined impact strategy.
About Dream Impact
Dream Impact is an open-ended trust dedicated to impact investing. Dream Impact’s underlying portfolio is comprised of exceptional real estate assets reported under two operating segments: development and investment holdings, and recurring income, that would not be otherwise available in a public and fully transparent vehicle, managed by an experienced team with a successful track record in these areas. The objectives of Dream Impact are to create positive and lasting impacts for our stakeholders through our three impact verticals: environmental sustainability and resilience, attainable and affordable housing, and inclusive communities; while generating attractive returns for investors. For more information, please visit: www.dreamimpacttrust.ca.
This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, or “continue”, or similar expressions suggesting future outcomes or events. Some of the specific forward-looking information in this press release may include, among other things, statements relating to the Trust's objectives and strategies to achieve those objectives; the Trust's plans and proposals for current and future development and redevelopment projects, including construction timing, rezoning, completion and occupancy dates, number of units, density, square footage and planned GLA; the capital requirements for our Quayside development; and our development pipeline, including size and timing of future completions. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: adverse changes in general economic and market conditions; the impact of the novel coronavirus (COVID-19 and variants thereof) pandemic on the Trust; risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, and international sanctions; inflation; the disruption of free movement of goods and services across jurisdictions; the risk of adverse global market, economic and political conditions and health crises; risks inherent in the real estate industry; risks relating to investment in development projects; impact investing strategy risk; risks relating to geographic concentration; risks inherent in investments in real estate, mortgages and other loans and development and investment holdings; credit risk and counterparty risk; competition risks; environmental and climate change risks; risks relating to access to capital; interest rate risk; the risk of changes in governmental laws and regulations; tax risks; foreign exchange risk; acquisitions risk; and leasing risks. Our objectives and forward-looking statements are based on certain assumptions with respect to each of our markets, including that the general economy remains stable; the gradual recovery and growth of the general economy continues over 2023; that no unforeseen changes in the legislative and operating framework for our business will occur; that there will be no material change to environmental regulations that may adversely impact our business; that we will meet our future objectives, priorities and growth targets; that we receive the licenses, permits or approvals necessary in connection with our projects; that we will have access to adequate capital to fund our future projects, plans and any potential acquisitions; that we are able to identify high-quality investment opportunities and find suitable partners with which to enter into joint ventures or partnerships; that we do not incur any material environmental liabilities; there will not be a material change in foreign exchange rates; that the impact of the current economic climate and global financial conditions on our operations will remain consistent with our current expectations; our expectations regarding the impact of the COVID-19 pandemic and government measures to contain it; our expectation regarding ongoing remote working arrangements; and competition for and availability of acquisitions remains consistent with the current climate.
All forward-looking information in this press release speaks as of March 9, 2023. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in the Trust’s filings with securities regulators filed on the System for Electronic Document Analysis and Retrieval (www.sedar.com), including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamimpacttrust.ca.