TSX:D.UN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Dream Office Real Estate Investment Trust

Executive Summary

Dream Office REIT is an unincorporated, open-ended real estate investment trust. More Details


Snowflake Analysis

Good value with proven track record and pays a dividend.

Share Price & News

How has Dream Office Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: D.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: D.UN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.5%

D.UN

1.5%

CA REITs

-0.2%

CA Market


1 Year Return

-37.2%

D.UN

-19.6%

CA REITs

1.5%

CA Market

Return vs Industry: D.UN underperformed the Canadian REITs industry which returned -19.6% over the past year.

Return vs Market: D.UN underperformed the Canadian Market which returned 1.4% over the past year.


Shareholder returns

D.UNIndustryMarket
7 Day3.5%1.5%-0.2%
30 Day3.6%1.5%2.7%
90 Day8.8%11.4%12.5%
1 Year-34.3%-37.2%-14.9%-19.6%5.2%1.5%
3 Year2.6%-9.7%11.3%-5.7%13.5%2.7%
5 Year66.2%27.6%40.4%6.5%60.0%35.5%

Long-Term Price Volatility Vs. Market

How volatile is Dream Office Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dream Office Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: D.UN (CA$20.54) is trading below our estimate of fair value (CA$32.05)

Significantly Below Fair Value: D.UN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: D.UN is good value based on its PE Ratio (4.8x) compared to the CA REITs industry average (9x).

PE vs Market: D.UN is good value based on its PE Ratio (4.8x) compared to the Canadian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate D.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: D.UN's PB Ratio (0.7x) is in line with the CA REITs industry average.


Next Steps

Future Growth

How is Dream Office Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if D.UN's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if D.UN's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: D.UN's revenue is expected to decline over the next 3 years (-3% per year).

High Growth Revenue: D.UN's revenue is forecast to decline over the next 3 years (-3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if D.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dream Office Real Estate Investment Trust performed over the past 5 years?

58.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: D.UN has a large one-off gain of CA$57.9M impacting its September 30 2020 financial results.

Growing Profit Margin: D.UN's current net profit margins (87.4%) are higher than last year (44.7%).


Past Earnings Growth Analysis

Earnings Trend: D.UN has become profitable over the past 5 years, growing earnings by 58.1% per year.

Accelerating Growth: D.UN's earnings growth over the past year (83.7%) exceeds its 5-year average (58.1% per year).

Earnings vs Industry: D.UN earnings growth over the past year (83.7%) exceeded the REITs industry 16.4%.


Return on Equity

High ROE: D.UN's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Dream Office Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: D.UN's short term assets (CA$31.8M) do not cover its short term liabilities (CA$182.4M).

Long Term Liabilities: D.UN's short term assets (CA$31.8M) do not cover its long term liabilities (CA$1.1B).


Debt to Equity History and Analysis

Debt Level: D.UN's debt to equity ratio (74.2%) is considered high.

Reducing Debt: D.UN's debt to equity ratio has reduced from 84.9% to 74.2% over the past 5 years.

Debt Coverage: D.UN's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: D.UN's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Dream Office Real Estate Investment Trust current dividend yield, its reliability and sustainability?

4.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: D.UN's dividend (4.87%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).

High Dividend: D.UN's dividend (4.87%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: D.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: D.UN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.4%), D.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: D.UN's dividends in 3 years are forecast to be covered by earnings (58.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Michael Cooper (59 yo)

3yrs

Tenure

CA$1,475,200

Compensation

Mr. Michael J. Cooper serves as Portfolio Manager of Dream Hard Asset Alternatives Trust. Mr. Cooper has been Chief Executive Officer of Dream Office Real Estate Investment Trust since January 1, 2018 and ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.16M) is about average for companies of similar size in the Canadian market ($USD1.18M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Cooper
Chairman & CEO3yrsCA$1.48m0.97%
CA$ 11.1m
Jay Jiang
Chief Financial Officer2.33yrsCA$763.00k0.0020%
CA$ 22.6k
Gordon Wadley
Chief Operating Officer0.92yrCA$759.16k0.00055%
CA$ 6.3k
Ayesha Shafiq
Senior Vice President of Real Estate Investments3yrsno datano data

2.7yrs

Average Tenure

Experienced Management: D.UN's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Cooper
Chairman & CEO3yrsCA$1.48m0.97%
CA$ 11.1m
Donald Charter
Independent Lead Trustee4yrsCA$191.04k0.059%
CA$ 676.7k
P. Gavan
Non-Independent Trustee2.67yrsCA$115.04k0.13%
CA$ 1.5m
Robert Goodall
Independent Trustee17.58yrsCA$137.04k0.053%
CA$ 608.6k
Detlef F. Bierbaum
Independent Trustee17.58yrsCA$131.04k0.12%
CA$ 1.4m
Karine MacIndoe
Independent Trustee5.67yrsCA$157.04k0.013%
CA$ 154.1k
Khristinn Leitch
Independent Trustee4.83yrsCA$126.04k0.010%
CA$ 118.6k

5.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: D.UN's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dream Office Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dream Office Real Estate Investment Trust
  • Ticker: D.UN
  • Exchange: TSX
  • Founded: NaN
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$1.147b
  • Market Cap: CA$1.040b
  • Shares outstanding: 55.87m
  • Website: https://www.dream.ca/office

Number of Employees


Location

  • Dream Office Real Estate Investment Trust
  • State Street Financial Center
  • Suite 301
  • Toronto
  • Ontario
  • M5C 3H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
D.UNTSX (The Toronto Stock Exchange)YesREIT Units Series ACACADDec 1995
DRET.FOTCPK (Pink Sheets LLC)YesREIT Units Series AUSUSDDec 1995

Biography

Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT owns well-located, high-quality office properties, primarily in downtown Toronto.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 23:36
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.