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Dream Industrial Real Estate Investment Trust

Market Cap

CA$2.6b

Last Updated

2021/04/18 22:09 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Good value average dividend payer.

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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DIR.UN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

DIR.UN

-0.01%

CA REITs

0.6%

CA Market


1 Year Return

38.8%

DIR.UN

20.9%

CA REITs

38.5%

CA Market

Return vs Industry: DIR.UN exceeded the Canadian REITs industry which returned 20.9% over the past year.

Return vs Market: DIR.UN matched the Canadian Market which returned 38.5% over the past year.


Shareholder returns

DIR.UNIndustryMarket
7 Day-2.0%-0.01%0.6%
30 Day1.3%3.2%2.0%
90 Day6.0%9.3%8.5%
1 Year47.4%38.8%27.6%20.9%43.2%38.5%
3 Year60.2%33.2%23.1%4.5%32.0%19.2%
5 Year134.1%65.5%40.9%5.9%57.6%33.4%

Long-Term 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

Valuation

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

39.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DIR.UN (CA$13.57) is trading below our estimate of fair value (CA$22.54)

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 (10.4x) compared to the CA REITs industry average (11x).

PE vs Market: DIR.UN is good value based on its PE Ratio (10.4x) compared to the Canadian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: DIR.UN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DIR.UN is overvalued based on its PB Ratio (1.1x) compared to the CA REITs industry average (0.9x).


Future Growth

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

-12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIR.UN's earnings are forecast to decline over the next 3 years (-12.4% per year).

Earnings vs Market: DIR.UN's earnings are forecast to decline over the next 3 years (-12.4% per year).

High Growth Earnings: DIR.UN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DIR.UN's revenue (11.7% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: DIR.UN's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

52.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIR.UN has a large one-off gain of CA$113.7M impacting its December 31 2020 financial results.

Growing Profit Margin: DIR.UN's current net profit margins (84.5%) are lower than last year (89.9%).


Past Earnings Growth Analysis

Earnings Trend: DIR.UN's earnings have grown significantly by 52.7% per year over the past 5 years.

Accelerating Growth: DIR.UN's earnings growth over the past year (12.8%) is below its 5-year average (52.7% per year).

Earnings vs Industry: DIR.UN earnings growth over the past year (12.8%) exceeded the REITs industry -17.1%.


Return on Equity

High ROE: DIR.UN's Return on Equity (10.5%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: DIR.UN's short term assets (CA$267.9M) exceed its short term liabilities (CA$181.4M).

Long Term Liabilities: DIR.UN's short term assets (CA$267.9M) do not cover its long term liabilities (CA$1.4B).


Debt to Equity History and Analysis

Debt Level: DIR.UN's debt to equity ratio (66.9%) is considered high.

Reducing Debt: DIR.UN's debt to equity ratio has reduced from 147.6% to 66.9% over the past 5 years.

Debt Coverage: DIR.UN's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: DIR.UN's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

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

5.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIR.UN's dividend (5.16%) is higher than the bottom 25% of dividend payers in the Canadian market (1.48%).

High Dividend: DIR.UN's dividend (5.16%) is in the top 25% of dividend payers in the Canadian market (4.68%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.6%), DIR.UN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DIR.UN's dividends in 3 years are forecast to be covered by earnings (82% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Brian Pauls

3.25yrs

Tenure

CA$1,087,848

Compensation

Mr. Brian D. Pauls has been Chief Executive Officer at Dream Industrial Real Estate Investment Trust since January 1, 2018 and has been its Trustee since May 17, 2018 and served as its President since Janu...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD870.24K) is below average for companies of similar size in the Canadian market ($USD2.17M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DIR.UN's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: DIR.UN's board of directors are considered experienced (5.9 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 12%.


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$2.601b
  • Market Cap: CA$2.350b
  • Shares outstanding: 191.70m
  • 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


Biography

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at September 30, 2020, Dream Industrial REIT owns and operates a portfolio of 266 industrial properties comprising ap...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 22:09
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.