Dream Impact Trust Reports Third Quarter 2026 Results

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 unit and per unit amounts, unless otherwise stated.

TORONTO--(BUSINESS WIRE)--DREAM IMPACT TRUST (TSX: MPCT.UN) ("Dream Impact", "we", "our" or the "Trust") today reported its financial results for the three and nine months ended September 30, 2026 ("third quarter").

“The Trust continues to build leasing momentum across its completed multi-family portfolio,” said Michael Cooper, Portfolio Manager. “Construction at 49 Ontario is advancing in line with budget with nearly all contracts tendered, and Odenak is nearing completion, with leasing to begin in early 2027. As we advance our development pipeline and stabilize recently completed buildings, we remain focused on managing liquidity through disciplined capital management. The recent $15 million increase to the Dream loan supports the Trust's near-term liquidity requirements as we continue to evaluate a range of longer-term strategies to improve liquidity and financial independence over time. These include loan extensions, increased borrowing capacity and potential asset sales to support execution of our strategic plan while building a stronger recurring income base.”

As at September 30, 2026, the Trust's multi-family portfolio comprised 3,824 units (at 100% asset level or 1,250 units at share) across the GTA and National Capital Region and was nearly 90% occupied (in-place and committed). During the three months ended September 30, 2026, the Trust transferred its investment in Cherry House to the recurring income segment in accordance with the Trust's accounting policy. This transfer added 855 units to the segment, including 30% of units which are designated as affordable. Over the next four years, the Trust's investment in the multi-family rental developments is expected to increase by an additional 2,800 units (1,550 units at the Trust's share) - including Odenak and 49 Ontario which are currently under construction.

Selected financial and operating metrics for the three and nine months ended September 30, 2026 are summarized below:

	Three months ended September 30,				Nine months ended September 30,
(in thousands of dollars, except per Unit amounts)		2026		2025		2026		2025
Condensed consolidated results of operations
Net loss	$	(6,758)	$	(10,297)	$	(14,295)	$	(30,582)
NOI - recurring income^(1)		4,920		4,425		14,291		12,942
NOI - multi-family rental^(1)		3,468		2,305		10,381		7,668
Net loss per unit^(1)		(0.35)		(0.56)		(0.75)		(1.63)
Units outstanding – end of period		19,088,488		18,416,970		19,088,488		18,416,970
Units outstanding – weighted average		19,088,488		18,412,465		19,051,858		18,711,510

As at	September 30, 2026		December 31, 2025
Condensed consolidated financial position
Total assets	$	506,000	$	646,004
Total liabilities		168,037		296,055
Total unitholders' equity		337,963		349,949
Total unitholders' equity per unit^(1)		17.71		18.55

During the third quarter, the Trust recognized a net loss of $6.8 million compared to $10.3 million in the prior year. The decrease in net loss was primarily driven by increased leasing activity and growth within the Trust's multi family portfolio, net favourable fair value adjustments across the portfolio and lower interest expense as a result of the capitalization of interest at 49 Ontario following the commencement of construction earlier in the year. This was partially offset by higher interest expense at Cherry House following construction completion, interest expense resulting from increased draws on the Dream loan, and higher asset management and shared service fees.

Liquidity Update
At September 30, 2026, the Trust had total cash on hand of $5.7 million and a debt-to-asset value⁽²⁾ of 30.6%, compared to 37.2% at June 30, 2026. The change in debt-to-asset value was primarily driven by the transfer of a mortgage payable to an equity accounted investment, partially offset by draws on the Dream loan. During the nine months ended September 30, 2026, the Trust amended and restated the Dream loan to, among other things, increase the capacity of the loan to $50.0 million, bearing interest at a rate equal to the higher of 10% or 6% above CORRA. Subsequent to September 30, 2026, the Trust further increased the capacity from $50.0 million to $65.0 million. The incremental $15.0 million of capacity will bear interest at the greater of 12% or 8% above CORRA and will mature November 1, 2028. The carrying value of the additional net assets pledged on the upsized loan is $16.1 million. The Dream loan is subject to certain covenants and is secured by a general security agreement. As at October 30, 2026, $46.5 million was drawn. The Trust and Dream are actively pursuing various liquidity strategies for the Trust to enhance its financial independence over time. Management expects to provide a more fulsome update as part of the Trust’s fourth quarter results.

At September 30, 2026, the Trust's debt profile was comprised of $154.9 million of consolidated debt payable ($156.3 million of total debt) and $1,090.6 million of debt at its proportionate share from equity accounted investments. Included in this balance is $52.8 million of debt, at the Trust's share, that matures in 2026. The debt balance maturing in 2026 decreased by $28.8 million since June 30, 2026, primarily due to the extension of loans on Zibi commercial assets.

Since December 31, 2025, the Trust has extended, refinanced or repaid over $275.0 million of debt, including land loans at Victory Silos, Scarborough Junction, and 49 Ontario, the Zibi commercial loans, the construction loan for The Mason at Brightwater, and other mortgages maturing during the period. The Trust continues to work with its lenders on the remaining near-term debt maturities, which includes mortgages and underlying debt on certain passive investments.

For further details refer to the "Capital Resources and Liquidity" section of the Trust's management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2026.

Recurring Income
In the third quarter, the Trust's recurring income segment recognized a net loss of $1.8 million compared with $6.1 million in the prior year. The decrease in net loss was primarily attributable to the composition of fair value adjustments in each period, higher net operating income ("NOI") from the Trust's multi-family assets and the capitalization of interest from 49 Ontario during its redevelopment. This was partially offset by the loss of NOI from 49 Ontario and interest expense related to Cherry House. During the third quarter, the Trust transferred its investment in Cherry House to the recurring income segment in accordance with the Trust's accounting policy.

Multi-family rental properties
In the third quarter, same property NOI⁽¹⁾ was $3.3 million compared to $2.3 million in the prior year. The increase in NOI was primarily driven by completed multi-family properties as these assets have achieved stabilization. This includes Maple House (96% occupied), Aalto II (95% occupied) and Birch House (96% occupied). Including assets in lease-up, NOI increased 35% year-over-year. As Cherry House continues to progress through lease-up, the increase in NOI and low-cost government affiliated financing is expected to contribute additional earnings for the recurring income segment.

Debt from the Trust's multi-family portfolio presented within this segment carries a weighted average term of 3.4 years at a weighted average interest rate of 2.6%.

Commercial
In the third quarter, NOI from commercial properties⁽¹⁾ was $1.5 million compared to $2.1 million in the prior year. The decrease was primarily attributable to reduced earnings from 49 Ontario as demolition commenced at the end of 2025, and general leasing softness. This was partially offset by improved leasing at 34 Madison and Brightwater Retail.

Development
In the third quarter, the Trust recognized a net loss of $1.3 million from its development segment compared to $1.4 million in the prior year. The reduction in net loss was attributable to condo sales at Brightwater in the third quarter partially offset by the composition of fair value adjustments year-over-year. Subsequent to September 30, 2026, the Trust's investment in the IVY condos completed a bulk unit sale for cash proceeds of $2.4 million (at the Trust's share).

Other
In the third quarter, the other segment reported a net loss of $3.6 million compared to $2.9 million in the prior year. The change in year-over-year earnings was primarily attributable to interest incurred from draws on the Dream loan and higher related party and asset management fees. This was partially offset by a fair value gain on the convertible debentures and a deferred tax recovery position in the period.

Footnotes
^(1)	Net income (loss) per unit, total unitholders' equity per unit, NOI - recurring income, NOI - multi-family rental, NOI-commercial properties, same property NOI - multi-family rental ("same property NOI"), are supplementary financial measures. Please refer to the cautionary statements under the heading "Specified Financial Measures and Other Measures" in this press release and the "Specified Financial Measures and Other Disclosures" section of the Trust’s MD&A for the three and nine months ended September 30, 2026.
^(2)	Debt-to-asset value is a non-GAAP ratio, which is calculated as total debt payable, a non-GAAP financial measure, divided by the total asset value of the Trust as at the applicable reporting date. The most directly comparable financial measure to total debt payable is total debt.

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 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.

Specified Financial Measures and Other Measures
The Trust’s condensed consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"). In this press release, as a complement to results provided in accordance with IFRS Accounting Standards, the Trust discloses and discusses certain specified financial measures, including total debt payable, net income (loss) per unit, same property NOI - multi-family rental, NOI - multi-family rental, NOI - recurring income, NOI -commercial properties, total unitholders' equity per unit, and debt-to-asset value, as well as other measures discussed elsewhere in this release. These specified financial measures are not defined by or recognized measures under IFRS Accounting Standards, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Trust has presented such specified financial measures as management believes they are relevant measures of the Trust's operating performance. Specified financial measures should not be considered as alternatives to unitholders' equity, net income, total comprehensive income or cash flows generated from operating activities, or comparable metrics determined in accordance with IFRS Accounting Standards as indicators of the Trust’s performance, liquidity, cash flow and profitability. Certain additional disclosures such as the composition, usefulness and changes as applicable are expressly incorporated by reference from the Trust’s MD&A for the three and nine months ended September 30, 2026, dated November 2, 2026 in the section titled “Specified Financial Measures and Other Disclosures”, subsection “Non-GAAP Ratios”, heading “Debt-to-asset value”, subsection “Supplementary Financial Measures and Other Measures”, headings “Net income (loss) per unit”, "NOI — commercial properties", "NOI - multi-family rental", "NOI - recurring income", "total unitholders' equity per unit" and "Same Property NOI - multi-family rental" and subsection “Non-GAAP Financial Measures”, heading “Total debt payable”, which has been filed and is available on SEDAR+ under the Trust’s profile.

"Total debt payable" is defined by the Trust as the balance due at maturity for its debt instruments, including debt related to assets held for sale. Total debt payable is a non-GAAP measure and is included as part of the definition of debt-to-asset value, a non-GAAP ratio. Total debt payable is an important measure used by the Trust in evaluating the amount of debt leverage; however, it is not defined by IFRS Accounting Standards, does not have a standardized meaning and may not be comparable with similar measures presented by other issuers. Total debt payable is reconciled to total debt, the most directly comparable financial measure, below.

As at	September 30, 2026		December 31, 2025
Total debt	$	156,262	$	283,983
Unamortized discount on host instrument of convertible debentures		(401)		(365)
Conversion feature		(1,356)		(2,154)
Unamortized balance of deferred financing costs		436		968
Total debt payable	$	154,941	$	282,432

Forward-Looking Information
This press release contains 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”, "timeline", "potential", "strategy", "targets", “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 leasing activities and the expected timing and results thereof, including with respect to the multi-family portfolio; expectations regarding the Trust's multi-family portfolio including segment growth, and number of units available for occupancy and lease-up and timelines thereof; expectations regarding 49 Ontario, including construction and development plans, progress and timelines; the Trust's focus on addressing near-term capital priorities and continuing execution on its strategic plan and the ability to build a stronger recurring income base; the Trust's expectation that over the next four years it will add over 1,550 additional units (at share) to its multi-family portfolio; expectations regarding the Trust's ability to address its upcoming liquidity objectives; the Trust's pursuit of loan extensions, increased borrowing capacity (including under the Dream loan) and potential asset sales to manage liquidity; the Trust's progress on advancing key developments and enhancing liquidity; the expectation regarding development, completion, occupancy and lease-up of rental units at Birch House at Canary Landing, Maple House at Canary Landing, Cherry House at Canary Landing and Odenak, including number of units and timing and contributions to higher NOI over time; the expectation that as Cherry House progresses through lease-up the increase in NOI and low-cost government affiliated financing will contribute additional earnings for the recurring income segments; the Trust's expectations regarding upcoming debt maturities and the expectations of repayment, refinancing, extension and/or renewal of debt and timing thereof; the status of the Trust’s ongoing active development projects and the projected construction timing and completion dates; the Trust’s expectations regarding the impacts of advancing construction at certain developments and the related impact on debt exposure and project risk; the Trust's ability to utilize government-affiliated financing and the expected benefits thereof; and the Trust's plans and proposals for current and future development and redevelopment projects, including construction initiation, completion and occupancy/stabilization dates/timing and number of units. 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; liquidity risk; financing risks; public health risks; risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, and international sanctions; inflation; risks related to the imposition of duties, tariffs and other trade restrictions and their impacts; 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; the risk that corporate activities and reviews will not have the desired impact; acquisitions risk; and leasing risks. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; the gradual recovery and growth of the general economy; 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 and that inflation and interest rates will not materially increase beyond current market expectations; that no duties, tariffs or other trade restrictions will negatively impact us; our expectations regarding the availability and competition for acquisitions remains consistent with the current climate.

All forward-looking information in this press release speaks as of November 2, 2026, unless otherwise noted. 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.sedarplus.ca), including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamimpacttrust.ca.