TSX:DIR.UN

Stock Analysis Report

Dream Industrial Real Estate Investment Trust

Executive Summary

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


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

-0.6%

DIR.UN

-2.0%

CA REITs

-0.05%

CA Market


1 Year Return

-26.0%

DIR.UN

-26.4%

CA REITs

-24.6%

CA Market

Return vs Industry: DIR.UN exceeded the Canadian REITs industry which returned -24.6% over the past year.

Return vs Market: DIR.UN exceeded the Canadian Market which returned -23.7% over the past year.


Shareholder returns

DIR.UNIndustryMarket
7 Day-0.6%-2.0%-0.05%
30 Day-34.2%-32.3%-21.2%
90 Day-32.0%-28.5%-24.7%
1 Year-21.6%-26.0%-22.6%-26.4%-22.1%-24.6%
3 Year31.7%7.6%-4.7%-19.3%-14.2%-22.1%
5 Year43.0%-1.8%8.9%-18.0%-1.9%-16.5%

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

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$9.39) is trading below our estimate of fair value (CA$26.11)

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 (7.2x) compared to the REITs industry average (7.4x).

PE vs Market: DIR.UN is good value based on its PE Ratio (7.2x) compared to the Canadian market (10.4x).


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?

-3.3%

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

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 4.7%.


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?

7.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIR.UN's dividend (7.45%) is higher than the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: DIR.UN's dividend (7.45%) is low compared to the top 25% of dividend payers in the Canadian market (8.66%).


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?

2.3yrs

Average management tenure


CEO

Brian Pauls

2.25s

Tenure

CA$610,000

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 ($USD430.35K) is below average for companies of similar size in the Canadian market ($USD1.71M).

Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Pauls
CEO & Trustee2.25yrsCA$610.00k0.021% CA$317.3k
Lenis Quan
Chief Financial Officer5.25yrsCA$463.20k0.0024% CA$36.2k
Alexander Sannikov
Chief Operating Officer0.17yrno datano data
Joe Iadeluca
Senior Vice President of Portfolio Management - Quebec & Eastern Canadano datano datano data
P. Gavan
President of Asset Managementno datano data0.017% CA$256.9k
Ayesha Shafiq
Senior Vice President of Real Estate Investments2.25yrsno datano data
Bruce Traversy
Senior VP & Head of Investments of Europe0.17yrno data0.011% CA$164.0k

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: DIR.UN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Pauls
CEO & Trustee2.25yrsCA$610.00k0.021% CA$317.3k
Michael Cooper
Non-Independent Trustee7.5yrsCA$277.40k0.23% CA$3.4m
J. Knowlton
Independent Trustee3.83yrsCA$100.00k0.011% CA$164.9k
Sheldon Wiseman
Independent Trustee5.92yrsCA$110.00k0.0043% CA$63.7k
Leerom Segal
Independent Trustee7.5yrsCA$91.77kno data
Vincenza Sera
Independent Chairman of the Board Trustees5.92yrsCA$160.00k0.0083% CA$124.1k
Ben Mulroney
Independent Trustee6.92yrsCA$100.00kno data
Vicky Schiff
Independent Trustee2.92yrsCA$98.23k0.012% CA$177.4k

5.9yrs

Average Tenure

58yo

Average Age

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: DIR.UN 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$1.495b
  • Market Cap: CA$1.359b
  • Shares outstanding: 171.22m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIR.UNTSX (The Toronto Stock Exchange)YesREIT UnitsCACADOct 2012
DREU.FOTCPK (Pink Sheets LLC)YesREIT UnitsUSUSDOct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:45
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.