/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 11/05/15 -- This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.

Dream Unlimited Corp. (TSX: DRM)(TSX: DRM.PR.A) ("Dream", "the Company" or "we") today announced its financial results for the three and nine months ended September 30, 2015. Basic earnings per share ("EPS") for the three months ended September, 2015 were $0.23, up from $0.07 for the three months ended September 30, 2014. Basic EPS for the nine months ended September 30, 2015 were $1.36, up from $0.35 for the nine months ended September 30, 2014. At September 30, 2015, the Company's total equity increased to $719.7 million, up 22% from $591.8 million at December 31, 2014.

Michael Cooper, President & Chief Responsible Officer of Dream commented: "Our third quarter and year to date results are quite strong, despite headwinds as a result of low oil prices, poor crop quality in Saskatchewan, general political and economic uncertainty and continued lower growth expectations for Canada. We continue to extract the highest and best value from our existing assets and outstanding people in both the near and longer term. We are making progress in achieiving development approvals for our lands in Western Canada, our urban development projects in Toronto and Ottawa are progressing well and we are pleased with the continued success and value creation by our new retail division."

A summary of our results for the three and nine months ended September 30, 2015 is included in the table below.

                                 Three months ended        Nine months ended
                                      September 30,            September 30,
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(in thousands of Canadian
 dollars, except per share
 amounts)                          2015        2014         2015        2014
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Revenue                     $   130,350 $    77,704  $   244,039 $   261,246
Net margin(1)               $    25,935 $    14,411  $    55,632 $    65,606
Net margin %(1)                   19.9%       18.5%        22.8%       25.1%
Earnings before income
 taxes                      $    23,193 $     9,272  $   175,504 $    55,587
Earnings for the period (4) $    26,085 $     7,825  $   153,704 $    39,072
Basic earnings per share(2) $      0.23 $      0.07  $      1.36 $      0.35
Diluted earnings per share  $      0.22 $      0.07  $      1.29 $      0.35

Net margin by major business
 segment before eliminations
Land development(3)         $    13,127 $     3,854  $    24,380 $    20,055
Housing development(3)      $     1,596 $     2,459  $     3,337 $     5,966
Condominium development     $    10,538 $     1,485  $     9,720 $    19,779
Investment and recreational
 properties                 $   (1,976) $   (1,390)  $     4,256 $     3,636
Asset management and
 management services        $     4,543 $     9,436  $    18,362 $    19,577

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                                                       September    December
                                                        30, 2015    31, 2014
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Total assets                                         $ 1,446,442 $ 1,223,198
Total liabilities                                    $   726,732 $   631,365
Total equity                                         $   719,710 $   591,833
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(1) Net margin (see "Additional Items" on page 38 of our management's
discussion and analysis ("MD&A") for the period ended September 30, 2015)
represents revenue less direct operating costs and asset management and
advisory services expenses; including selling, marketing and other operating
costs.
(2) Basic EPS is computed by dividing Dream's earnings attributable to
owners of the parent by the weighted average number of Dream Subordinate
Voting Shares and Dream Class B shares outstanding during the year.
(3) Net margin (see "Additional Items") results are shown before
eliminations of internal lot sales to our housing division, as the homes
have been sold to external customers during the period. Net margin of $1.9
million and $4.4 million for the three and nine months ended September 30,
2015 ($1.4 million and $3.4 million - three and nine months ended September
30, 2014) have been eliminated on consolidation. For additional details,
please refer to the discussion on page 9-10 of our MD&A for the period ended
September 30, 2015.
(4) During the three and nine months ended September 30, 2015, the Company
recognized a recovery of $9.2 million through income tax expense. For
additional details please refer to the discussion on page 31 of our MD&A.

Key Highlights: Development

--  In the nine months ended September 30, 2015, we achieved 456 lot sales,
    24 developed acre sales, 45 undeveloped acre sales and 168 housing unit
    occupancies (nine months ended September 30, 2014 - 336 lot sales, 40
    developed acre sales, no undeveloped acre sales and 160 housing unit
    occupancies). The Company expects to achieve almost 900 lot sales, 30
    developed acre sales, 45 undeveloped acre sales and 200 housing unit
    occupancies for the twelve months ended December 31, 2015 (twelve months
    ended December 31, 2014 - 821 lots, 61 developed acre sales and 219
    housing unit occupancies).
--  In the nine months ended September 30, 2015, Dream achieved
    approximately 52,000 square feet of retail occupancies within its
    Tamarack North East and South East development sites within the
    community of Meadows in Edmonton, Alberta, where Dream has been actively
    developing over 1,400 acres of residential land since 1997. Including
    Tamarack North, which achieved its first tenant occupancy subsequent to
    September 30, 2015, these three properties are expected to comprise
    184,300 square feet of gross leasable area ("GLA") upon completion. As
    at October 31, 2015, Dream has committed leases for approximately 67% of
    the aggregate GLA with a weighted average lease term of approximately 12
    years. Management expects that the properties will be fully leased by
    their expected completion dates in 2017 and 2018. Dream recognized fair
    value gains in the amount of of $0.4 million and $10.1 million for the
    three and nine months ended September 30, 2015, respectively, which
    resulted primarily from a change in use of under IFRS from inventory
    (held at cost) to investment property (held at fair value) on
    achievement of first tenant occupancies.
--  The Pan/Parapan American Games Athletes' Village in Toronto, utilized by
    the athletes as a temporary home during the games, has now been returned
    by the organizing entity to a 50/50 partnership owned by Dream and
    Kilmer Van Nostrand Co. Limited. Planning and construction work has
    successfully commenced to convert the $800 million development to its
    final use. The legacy of the Athletes Village will include a YMCA, a
    student residence (affordable housing) for George Brown College and 810
    market condominium units. To date, 80% of the condominium units have
    been sold and, together with the sale of the other components to third
    parties, over 90% of the revenue has been contracted. Sales of the
    condominiums continue to progress well and the development is expected
    to be substantially sold out when construction is complete in mid-2016.
    The "Stage 2" lands (collectively Blocks 12, 13 and 16) will be
    transferred to the partnership in the fourth quarter of 2015 and the
    partnership expects to develop another 1,000 market condominium units
    and 20,000 square feet of retail in addition to the 30,000 square feet
    in Stage 1. For Stage 2, Dream will have the advantage of being able to
    market the project with the very exciting Canary District being open and
    accessible to the public. For more details on the Canary District and
    the scope of the development project please visit:
    http://canarydistrict.com.
--  In the three and nine months ended September 30, 2015, Dream achieved
    172 condominium units occupancies (excluding equity accounted
    investments) within the Carlaw and the Carnaby in downtown Toronto,
    which are 98% and 99% sold, respectively. Our condominium projects
    include 2,344 (996 units at Dream's share) in various stages of pre-
    construction or active development. Approximately 85% of the condominium
    projects were either sold or pre-sold as at September 30, 2015.
    --  Dream's return on investment from certain of its condominium project
        currently under construction have a higher degree of predictability
        as a result of pre-sales activity. Dream expects to generate
        approximately $85 million of incremental shareholders' equity
        related to condominium projects, closing before 2017. For details of
        specific projects, refer to the Condominium Development section on
        page 20 of our MD&A.
--  During the nine months ended September 30, 2015, a partnership between
    Dream and Windmill Development Group Ltd. ("Dream Windmill"), acquired
    22 acres of land located on the former Domtar lands along the Ottawa
    River in Gatineau, Quebec, for the purpose of developing a mixed-use
    master planned community to be marketed under the name "Zibi". Dream
    Windmill has an additional 15 acres of directly adjacent lands under
    contract which it expects to acquire in 2016, pending certain approvals.
    The project concept plan for the 37 acres includes over 3 million square
    feet of density, with 2,000 residential units and over 1 million square
    feet of commercial space. In June 2015, Zibi's first condominium project
    was launched in Gatineau. The six-storey project with 65 units and a
    ground floor retail component is marketed under the name "O" and is over
    50% pre-sold to date.

Other Advancements & Updates in Western Canada

--  Dream has completed its formal public engagement sessions with respect
    to its ownership of 650 acres in the Providence Area Structure Plan and
    320 acres in the Glacier Ridge (Panorama) Area Structure Plan in
    Calgary, Alberta. Both of these significant Area Structure Plans
    received unanimous approval at Calgary Planning Commission and are
    scheduled for Calgary City Council approval in December 2015, which when
    achieved, will represent a significant planning milestone for the
    Company.
--  Dream recently established homebuilding capacity in Alberta, having
    hired a regional lead, and supported by additional senior hires in the
    areas of architecture, procurement and marketing. The division will
    focus on commencing the Company's Alberta housing operations, by
    optimizing and leveraging the existing platform and resources in
    Saskatchewan. Dream is currently in the planning process for
    approximately 70 initial internal housing starts in Calgary and is
    targeting to achieve its first housing occupancies in 2016.
--  Dream remains in active negotiations with Alberta Infrastructure for the
    transfer of 172 acres of its land required to construction the Southwest
    Calgary Ring Road. The expected date of the transfer will be in early
    2016.

    Update on Approvals:
    o In addition to the above, Dream continues to make progress towards the
    approval of over 5,000 acres of land held for development in Alberta and
    Saskatchewan, which includes approximately 1,100 acres in Northwest
    Regina, 1,000 acres in Holmwood (Saskatoon), 900 acres in Harbour
    Landing West (Regina) and 370 acres in Edmonton.

Asset Management:

--  Fee earning assets under management across the listed funds were
    approximately $5.0 billion, relatively consistent with the prior
    quarter, and down from $11.8 billion in the prior year, due to the
    impact of the reorganization of the asset management agreement with
    Dream Office REIT on April 2, 2015. Total assets under management were
    unchanged at approximately $15.0 billion.
--  Net margin from asset management, which includes income earned on three
    publicly listed funds and certain development projects under management
    was $4.5 million and $18.4 million for the three and nine months ended
    September 30, 2015, respectively. Net margin as a percentage of revenues
    for the three and months ended September 30, 2015 were 65% and 75%,
    respectively.
--  Our investments in the units of listed funds totalled $165.3 million at
    September 30, 2015 and generated $9.2 million in cash distributions for
    the nine months ended September 30, 2015. Our statement of operations
    includes only the income portion of the distributions. Accordingly, we
    recorded $3.5 million of investment income pertaining to the listed
    funds in the nine months ended September 30, 2015.
--  During the nine months ended September 30, 2015, Dream and Canadian
    Pacific (NYSE/TSX: CP) announced an agreement to form a joint venture
    called Dream Van Horne Properties LP (Dream VHP). The joint venture will
    maximize the value of Canadian Pacific's surplus real estate portfolio
    in Canada and the United States by leveraging the experience and
    expertise of Dream to develop real estate assets over the next several
    years. Under the terms of the joint venture with Canadian Pacific, Dream
    will earn development and management feees as properties are developed
    by the joint venture. Dream is entitled to an equity interest in these
    properties. We have commenced leasing our first property, a
    neighbourhood retail/commercial mixed-use development in Toronto.

Capital Structure & Financing

--  During and subsequent to the nine months ended September 30, 2015, Dream
    has repurchased 871,127 shares for cancellation under its normal course
    issue bid ("NCIB").
--  In the nine months ended September 30, 2015, Dream concluded two
    significant financing transactions which included a new $175 million,
    three year secured facility and the amendment of its existing $290
    million operating line. On conclusion of these financings, we made
    substantial progress in improving both our immediate and longer term
    liquidity, financing position and cost of capital. At September 30,
    2015, our debt to total assets ratio was 33.2% (June 30, 2015 - 32.0%),
    with up to $144.6 million of undrawn credit availability under our
    operating line. We believe that our capital structure is conservative an
    offers significant flexibility to grow and manage the business and
    assets to their highest and best value over the long term.

Select financial operating metrics for the three and nine months ended September 30, 2015 are summarized in the table below.

                                Three months ended         Nine months ended
                                     September 30,             September 30,
                        ----------------------------------------------------
(in thousands of
 dollars, except average
 selling price and
 units)                          2015         2014         2015         2014
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LAND DEVELOPMENT
Lot revenue              $     34,974 $     18,459 $     54,765 $     38,178
Acre revenue(1)          $      5,993 $      7,225 $     19,066 $     31,515
Total revenue(1),(2)     $     40,967$$     25,684 $     73,831 $     69,693
Gross margin(1),(2),(6)  $     15,558 $      6,582 $     31,849 $     26,859
Gross margin (%)                38.0%        25.6%        43.1%        38.5%
Net margin(1),(2),(6)    $     13,127 $      3,854 $     24,380 $     20,055
Net margin (%)                  32.0%        15.0%        33.0%        28.8%
Lots sold                         285          163          456          336
Average selling price -       123,000                   120,000
 lot                     $            $    111,000 $            $    113,000
Undeveloped acres sold              -            -           45            -
Average selling price -
 undeveloped acres                  -            -       19,000            -
Developed acres sold                7            7           24           40
Average selling price -
 developed acres         $    850,000 $    966,000 $    759,000 $    786,000
HOUSING DEVELOPMENT
------------------------
Housing units occupied             62           67          168          160
Revenue(1)               $     25,269 $     29,051 $     67,515 $     68,837
Gross margin(2),(6)      $      4,795 $      5,580 $     12,176 $     14,135
Gross margin (%)                19.0%        19.2%        18.0%        20.5%
Net margin(2),(6)        $      1,596 $      2,459 $      3,337 $      5,966
Net margin (%)                   6.3%         8.5%         4.9%         8.7%
Average selling price -       408,000                   402,000
 housing units           $            $    434,000 $            $    430,000
Average selling price -
 per square foot for
 units occupied          $        282 $        280 $        282 $        281
CONDOMINIUM DEVELOPMENT
------------------------
Attributable to Dream,
 excluding equity
 accounted investments
Condominium occupancies
 - units                          172           12          172          169
Revenue(3)               $     54,727 $      8.430 $     56,745 $     70,857
Gross margin(4),(6)      $     12,277 $      1,981 $     13,005 $     21,854
Gross margin (%)                22.4%        23.5%        22.9%        30.8%
Net margin(6)            $     10,538 $      1,485 $      9,720 $     19,779
Net margin (%)                  19.3%        17.6%        17.1%        27.9%
Average selling price of
 condominiums occupied
Per unit                 $    304,000 $    517,000 $    304,000 $    377,000
Per square foot          $        470 $        559 $        470 $        503
ASSET MANAGEMENT AND
 MANAGEMENT SERVICES
------------------------
Total assets under
 management - listed
 funds(6)                $ 11,687,946 $ 11,844,327 $ 11,687,946 $ 11,844,327
Fee earning assets under
 management - listed
 funds(6)                $  4,947,195 $ 11,844,327 $  4,947,195 $ 11,844,327
Revenue                  $      7,030 $     11,600 $     24,595 $     28,903
Net margin(6)            $      4,543 $      9,436 $     18,362 $     19,577
Net margin (%)                  64.6%        81.3%        74.7%        67.7%
INVESTMENT INCOME EARNED
 ON INVESTMENTS IN
 LISTED FUNDS
------------------------
Dream Office REIT        $        909 $        227 $      2,044 $        681
Other distributions from
 listed funds            $        411 $        422 $      1,474 $      1,224
INVESTMENT AND
 RECREATIONAL PROPERTIES
------------------------
Revenue                  $      7,412 $      7,111 $     33,702 $     33,177
Net margin(5),(6)        $    (1,976) $    (1,390) $      4,256 $      3,636
Net margin (%)                (26.7)%      (19.5)%        12.6%        11.0%
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(1) Results include revenue and gross margin of $0.8 million and $0.2
million, respectively relating to 45 acres of undeveloped land sold to the
Saskatchewan Ministry of Highways and Infrastructure for $0.8 million. See
Results of Operations - Land for Regina on page 16 of our MD&A for further
details.
(2) Results include land revenues and net margin on internal lot sales to
our housing division as the homes have been sold to external customers by
the housing division during the year. Revenue and net margin results of $5.1
million and $1.9 million, and $12.3 million and $4.4 million in the three
and nine months ended September 30, 2015 ($4.2 million ($1.4 million) and
$10.2 million ($3.4 million) in the same period in the prior year),
respectively, recognized in both the land and housing divisions, have been
eliminated on consolidation. For more details, please refer to page 9-10 of
our MD&A.
(3) Comparative condominium revenue results include a reclassification of
guarantee fees income, previously included in investment and other income.
(4) Gross margin for condominium operations include interest expense, which
is capitalized during the development period and expensed through cost of
sale as units are occupied.
(5) Net margin for investment and recreational properties includes
depreciation expense.
(6) Assets under management and fee earning assets under management are non-
IFRS measures used by Management in evaluating operating performance. Please
refer to the cautionary statements under the heading "Non-IFRS Measures" in
this press release. Refer to "Additional Items" on page 38 of our MD&A for
further details on gross margin and net margin.

Other Information

Information appearing in this press release is a select summary of results. The financial statements and MD&A for the Company for the period ended September 30, 2015 are available at www.dream.ca and on www.sedar.com.

Conference Call

Senior management will host a conference call on November 6, 2015 at 9:oo am. (ET). To access the call, please dial 1-888-465-5079 in Canada and the United States or 416-216-4169 elsewhere and use passcode 6281 674#. To access the conference call via webcast, please go to Dream's website at www.dream.ca and click on the link for News and Events, then click on Calendar of Events. A taped replay of the conference call and the webcast will be available for 90 days.

About Dream Unlimited Corp.

Dream is one of Canada's leading real estate companies with approximately $15 billion of assets under management in North America and Europe. The scope of the business includes residential land development, housing and condominium development, asset management for three TSX-listed real estate investment trusts and one TSX-listed diversified, hard asset alternatives trust, investments in and management of Canadian renewable energy infrastructure and commercial property ownership. Dream has an established track record for being innovative and for its ability to source, structure and execute on compelling investment opportunities.

Non-IFRS Measures

Dream's condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, Dream discloses and discusses certain non-IFRS financial measures, including: internal rate of return (IRR), assets under management, fee earning assets under management anddebt-to-total assets as well as other measures discussed elsewhere in this release. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. Dream has presented such non-IFRS measures as Management believes they are relevant measures of our underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to comparable metrics determined in accordance with IFRS as indicators of Dream's performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the "Non-IFRS Measures" section in Dream's MD&A for the period ended September 30, 2015.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, anticipated lot and developed acres sales results and housing unit occupancies, expected GLA of retail developments, timing of leasing of future retail developments, anticipated sales of condominium units, parking and lockers, the estimated hard construction costs and soft costs associated with the construction of projects including sales and marketing expenses, finance, design and development fees and other direct overhead expenses, development plans of future stages of the Athletes' Village, timing of land acquisitions in connection with our Zibi development and the timing of Alberta housing occupancies.. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These assumptions include, but are not limited to: the nature of development lands held and the development potential of such lands, our ability to bring new developments to market, anticipated positive general economic and business conditions, including low unemployment and interest rates, positive net migration, oil and gas commodity prices, our business strategy, including geographic focus, anticipated sales volumes and performance of our underlying business segments. Risks and uncertainties include, but are not limited to, general and local economic and business conditions, employment levels, regulatory risks, mortgage rates and regulations, environmental risks, consumer confidence, seasonality, adverse weather conditions, reliance on key clients and personnel and competition. All forward looking information in this press release speaks as of November 5, 2015. Dream does not undertake to update any such forward looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR (www.sedar.com).

Contacts:
Dream Unlimited Corp.
Michael J. Cooper
Chief Responsible Officer
(416) 365-5145
mcooper@dream.ca

Dream Unlimited Corp.
Pauline Alimchandani
Chief Financial Officer
(416) 365-5992
palimchandani@dream.ca

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