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Highlights

  • DIR’s Q32024 net rental income grew by 7%, reaching CAD 90.4 million
  • In 3Q 2024, operating expenses rose 11.7%, mainly due to higher debt and financing costs
  • DIR announced a monthly distribution of CAD 5.833 cents per unit for November 2024

Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) is an open-ended, unincorporated real estate investment trust. Its portfolio includes industrial properties situated in key markets throughout Canada and the U.S. As of December 02, 2024, the company has a market cap of CAD 3.67 billion.

DIR’s net rental income increased by 7% to CAD 90.4 million in the third quarter of 2024 (Q32024) compared to the previous corresponding period (pcp). The growth in rental income was driven by a larger gross leasable area and higher net property management fees.

However, the company faced an 11.7% rise in operating expenses in Q3 2024. This was mainly due to higher debt and other financing costs. As a result, the company’s income before income tax dropped to CAD 15.7 million compared to CAD 51.8 million in pcp. This decline was largely due to fair value adjustments to financial instruments. Consequently, the company posted a net income of CAD 13.8 million, a decrease from CAD 50.4 million in pcp, a YoY decline of 72.6%.

Recent Business Update

The company recently announced its monthly distribution for November 2024. The distribution is CAD 5.833 cents per unit, which equals 70 cents annually. The November distribution is expected to be paid on December 13, 2024. It would be given to unitholders of record as of November 29, 2024.

Company Outlook

The Trust maintains financial flexibility as it works on its strategy to grow and improve its portfolio. It is also investing in key markets, focusing on industrial assets which offer long-term cash flow and potential for NAV growth.

Top 10 Shareholders

The top 10 shareholders of DIR hold approximately 23.58% of the total shares. BlackRock Institutional Trust Company, N.A. has the largest stake at around 4.25%. Cohen & Steers Capital Management, Inc. follows closely with a stake of about 4.03%.

Stock Information

DIR’s stock price has dropped by around 5.20% in the past month and 9.57% over the last six months. As of December 04, 2024, the stock’s closing price is CAD 12.56, which is below the average of its 52-week high of CAD 14.65 and 52-week low of CAD 12.02.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 4, 2024. The reference data in this report has been partly sourced from EODHD/Others.