Dream Industrial Real Estate Investment Trust
Market Cap
CA$1.5b
Last Updated
2020/03/28 03:18 UTC
Data Sources
Company Financials
Executive Summary
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust.
Rewards
Risk Analysis
Snowflake Analysis
Good value with acceptable track record.
Share Price & News
How has Dream Industrial Real Estate Investment Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DIR.UN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
11.6%
DIR.UN
4.6%
CA REITs
7.1%
CA Market
1 Year Return
-25.0%
DIR.UN
-25.5%
CA REITs
-25.3%
CA Market
Return vs Industry: DIR.UN matched the Canadian REITs industry which returned -25.5% over the past year.
Return vs Market: DIR.UN matched the Canadian Market which returned -25.3% over the past year.
Shareholder returns
| DIR.UN | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.6% | 4.6% | 7.1% |
| 30 Day | -33.2% | -30.7% | -24.1% |
| 90 Day | -32.7% | -27.8% | -26.7% |
| 1 Year | -21.1%-25.0% | -22.0%-25.5% | -22.9%-25.3% |
| 3 Year | 32.4%8.9% | -2.0%-16.6% | -15.6%-23.4% |
| 5 Year | 42.5%-1.4% | 10.8%-16.1% | -3.2%-17.5% |
Price Volatility Vs. Market
How volatile is Dream Industrial Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Investors Who Bought Dream Industrial Real Estate Investment Trust (TSE:DIR.UN) Shares A Year Ago Are Now Down 33%1 month ago | Simply Wall St
Dream Industrial Real Estate Investment Trust (TSE:DIR.UN): What Does Its Beta Value Mean For Your Portfolio?1 month ago | Simply Wall St
Did Dream Industrial Real Estate Investment Trust (TSE:DIR.UN) Use Debt To Deliver Its ROE Of 11%?Valuation
Is Dream Industrial Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DIR.UN (CA$8.95) is trading below our estimate of fair value (CA$26.12)
Significantly Below Fair Value: DIR.UN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DIR.UN is good value based on its PE Ratio (6.8x) compared to the REITs industry average (6.9x).
PE vs Market: DIR.UN is good value based on its PE Ratio (6.8x) compared to the Canadian market (10.6x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DIR.UN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: DIR.UN is overvalued based on its PB Ratio (0.8x) compared to the CA REITs industry average (0.7x).
Next Steps
Future Growth
How is Dream Industrial Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
-3.2%
Forecasted Real Estate industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dream Industrial Real Estate Investment Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Dream Industrial Real Estate Investment Trust is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Dream Industrial Real Estate Investment Trust competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Real Estate industry.
Past Performance
How has Dream Industrial Real Estate Investment Trust performed over the past 5 years?
33.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DIR.UN has a large one-off gain of CA$180.1M impacting its December 31 2019 financial results.
Growing Profit Margin: DIR.UN's current net profit margins (89.6%) are higher than last year (88.5%).
Past Earnings Growth Analysis
Earnings Trend: DIR.UN's earnings have grown significantly by 33.8% per year over the past 5 years.
Accelerating Growth: DIR.UN's earnings growth over the past year (24%) is below its 5-year average (33.8% per year).
Earnings vs Industry: DIR.UN earnings growth over the past year (24%) exceeded the REITs industry 1.7%.
Return on Equity
High ROE: DIR.UN's Return on Equity (11.3%) is considered low.
Next Steps
Financial Health
How is Dream Industrial Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: DIR.UN has a high level of physical assets or inventory.
Debt Coverage by Assets: DIR.UN's debt is not covered by short term assets (assets are 0.4x debt).
Financial Institutions Analysis
Asset Level: DIR.UN's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if DIR.UN has a sufficient allowance for bad loans.
Low Risk Liabilities: DIR.UN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if DIR.UN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: DIR.UN has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if DIR.UN has an appropriate level of bad loans.
Next Steps
Dividend
What is Dream Industrial Real Estate Investment Trust's current dividend yield, its reliability and sustainability?
7.82%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: DIR.UN's dividend (7.82%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).
High Dividend: DIR.UN's dividend (7.82%) is low compared to the top 25% of dividend payers in the Canadian market (8.79%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, DIR.UN has been paying a dividend for less than 10 years.
Growing Dividend: DIR.UN's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52.5%), DIR.UN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DIR.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Brian Pauls
2.17s
Tenure
CA$610,000
Compensation
Mr. Brian D. Pauls has been Chief Executive Officer and President at Dream Industrial Real Estate Investment Trust since January 1, 2018 and has been its Trustee since May 17, 2018. He is the Member of Boa ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD433.43K) is below average for companies of similar size in the Canadian market ($USD1.69M).
Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Trustee | 2.17yrs | CA$610.00k | 0.021% CA$326.5k | |
| Chief Financial Officer | 5.17yrs | CA$463.20k | 0.0024% CA$37.2k | |
| Chief Operating Officer | 0.083yr | no data | no data | |
| Senior Vice President of Portfolio Management - Quebec & Eastern Canada | no data | no data | no data | |
| President of Asset Management | no data | no data | 0.017% CA$264.3k | |
| Senior Vice President of Real Estate Investments | 2.17yrs | no data | no data | |
| Senior VP & Head of Investments of Europe | 0.083yr | no data | 0.011% CA$168.7k |
2.2yrs
Average Tenure
53yo
Average Age
Experienced Management: DIR.UN's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Trustee | 2.17yrs | CA$610.00k | 0.021% CA$326.5k | |
| Non-Independent Trustee | 7.42yrs | CA$277.40k | 0.23% CA$3.5m | |
| Independent Trustee | 3.75yrs | CA$100.00k | 0.011% CA$169.6k | |
| Independent Trustee | 5.83yrs | CA$110.00k | 0.0043% CA$65.5k | |
| Independent Trustee | 7.42yrs | CA$91.77k | no data | |
| Independent Chairman of the Board Trustees | 5.83yrs | CA$160.00k | 0.0083% CA$127.6k | |
| Independent Trustee | 6.83yrs | CA$100.00k | no data | |
| Independent Trustee | 2.83yrs | CA$98.23k | 0.012% CA$182.5k |
5.8yrs
Average Tenure
58yo
Average Age
Experienced Board: DIR.UN's board of directors are considered experienced (5.8 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 been diluted in the past year, with total shares outstanding growing by 46.4%.
Top Shareholders
Company Information
Dream Industrial Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Dream Industrial Real Estate Investment Trust
- Ticker: DIR.UN
- Exchange: TSX
- Founded: 2012
- Industry: Industrial REITs
- Sector: Real Estate
- Implied Market Cap: CA$1.537b
- Market Cap: CA$1.366b
- Shares outstanding: 171.20m
- Website: https://www.dream.ca/industrial
Number of Employees
Location
- Dream Industrial Real Estate Investment Trust
- State Street Financial Centre
- Suite 301
- Toronto
- Ontario
- M5C 3H1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DIR.UN | TSX (The Toronto Stock Exchange) | Yes | REIT Units | CA | CAD | Oct 2012 |
| DREU.F | OTCPK (Pink Sheets LLC) | Yes | REIT Units | US | USD | Oct 2012 |
Biography
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at December 31, 2019, Dream Industrial REIT owns and operates a portfolio of 209 geographically diversified light industrial properties comprising approximately 21.9 million square feet of gross leasable area in key markets across North America. Its objective is to grow and upgrade the quality of its portfolio and to provide attractive overall returns to its unitholders.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 03:18 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.