/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 02/16/16 -- This news 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 INDUSTRIAL REIT (TSX: DIR.UN) today announced its financial results for the three and twelve months ended December 31, 2015.

HIGHLIGHTS

--  Adjusted Funds From Operations ("AFFO") per unit increased by 4.0% over
    prior year - Largely as a result of acquisitions completed in September
    2014, comparative properties growth, and interest savings on re-
    financings.
--  Comparative Properties Net Operating Income increased by 1.2% over 2014
    - Driven by contractual rent increases and positive leasing spreads.
--  AFFO payout ratio decreased to 85.1% - The AFFO payout ratio was 85.1%
    in 2015 compared to 88.5% in 2014, reflecting the growth in cash flow
    from the portfolio.
--  Capital recycling program - During the quarter, the Trust sold a 59,000
    square foot single-tenant property in the Greater Toronto Area ("GTA").
    The Trust completed $21 million in dispositions and $22 million in
    acquisitions for the year. Additionally, the Trust has two non-core
    assets in various stages of a sale process, and maintains an ongoing
    program to review non-core asset strategies.
--  1.5 million square feet of lease commitments completed to date -
    Representing 51% of 2016 expiries.

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SELECTED FINANCIAL INFORMATION
(un-audited)              Three Months Ended                Year Ended
                 ----------------------------------- -----------------------
($000's except                 September
 unit and per       December         30,    December    December    December
 unit amounts)      31, 2015        2015    31, 2014    31, 2015    31, 2014
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Investment
 properties
 revenue         $    44,463 $    43,634 $    44,588 $   176,992 $   166,249
Net operating
 income
 ("NOI")(1)           29,913      29,872      29,989     119,446     112,764
Funds from
 operations
 ("FFO")(1)           18,732      18,742      18,833      74,826      70,484
Adjusted funds
 from operations
 ("AFFO")(1)          16,191      16,044      15,541      63,975      58,028
Investment
 properties        1,692,856   1,689,412   1,681,781   1,692,856   1,681,781
Debt                 923,101     911,425     921,293     923,101     921,293

Per unit
 data(1), (2)
FFO - diluted(1) $     0.237 $     0.238 $     0.240 $     0.951 $     0.944
AFFO -
 diluted(1)            0.207       0.206       0.202       0.823       0.791
Distributions          0.175       0.175       0.175       0.700       0.700
FFO payout
 ratio(1), (3)         73.8%       73.5%       72.9%       73.6%       74.2%
AFFO payout
 ratio(1), (3)         84.5%       85.0%       86.6%       85.1%       88.5%

Units (period-
 end)
REIT Units        58,645,223  58,484,305  58,035,125  58,645,223  58,035,125
LP Class B Units  18,551,855  18,551,855  18,551,855  18,551,855  18,551,855
                 -----------------------------------------------------------
Total number of
 units            77,197,078  77,036,160  76,586,980  77,197,078  76,586,980
                 -----------------------------------------------------------
                 -----------------------------------------------------------

Portfolio gross
 leasable area
 (square feet)    16,979,158  16,928,397  16,942,899  16,979,158  16,942,899
Occupied and
 committed space       95.0%       94.6%       96.0%       95.0%       96.0%
Average
 occupancy for
 the period            93.7%       93.4%       94.6%       94.0%       94.4%
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See footnotes.

"Amid the challenging Canadian economy, Dream Industrial REIT continued to deliver consistent growth in AFFO per unit," said Brent Chapman, President and Chief Executive Officer.

FINANCIAL HIGHLIGHTS

--  Increase in FFO per unit - FFO per unit was 95.1 cents for the year,
    0.7% higher than in 2014. FFO for the quarter was 23.7 cents per unit, a
    slight decrease compared to the same period in the prior year, and
    remained stable compared to the third quarter of 2015. The year-over-
    year increase was largely a result of our September 2014 acquisitions
    and comparative properties NOI growth.
--  AFFO Growth - AFFO for the quarter was $16.2 million, or 20.7 cents on a
    per unit basis. AFFO per unit for the quarter was 2.5% higher compared
    to the same period in the prior year and remained relatively flat
    compared to the third quarter of 2015. The increase in AFFO was driven
    by the same factors as FFO growth, and interest savings on refinancings.
--  Total NOI of $29.9 million for the quarter - Total NOI for the quarter
    remained stable compared to the same period last year, and increased to
    $119.4 million for the year ended December 2015, or 5.9%, compared to
    prior year, primarily as a result of acquisitions completed in September
    2014 and comparative properties NOI growth of 1.2%.
--  Stable capital structure - Interest coverage of 3.1 times and a weighted
    average term to maturity of 3.7 years.

OPERATIONAL HIGHLIGHTS

--  Leasing profile - Leasing activity during the fourth quarter included
    301,000 square feet of new leases, 433,000 square feet of renewals, and
    lease commitments of 267,000 square feet, compared to 805,000 square
    feet of expiries and early terminations. The average remaining lease
    term at December 31, 2015 was 4.3 years.
--  Portfolio occupancy at 95.0% - Overall occupancy (including committed
    space) was 95.0% compared to 94.6% at September 30, 2015 and 96.0% at
    December 31, 2014. Leasing commitments for vacant space for the quarter
    totalled 267,000 square feet.
--  Positive leasing spreads on renewals - In-place rents remained stable at
    $7.14 per square foot compared to September 30, 2015. Renewals for the
    quarter were completed at $6.88 per square foot, which is $0.14, or
    2.1%, above the expiring rates.
--  Estimated market rents 2.9% above average in-place rents - At quarter-
    end, estimated market rents were approximately 2.9% above the Trust's
    current average in-place rents of $7.14 per square foot (September 30,
    2015 - $7.15).

                                                    Average in-    Estimated
                     GLA                   Average   place rent  market rent
                (million    Occupancy   lease term     (per sq.     (per sq.
                sq. ft.)          (%)      (years)         ft.)         ft.)
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Western
 Canada              4.9         97.8          4.0       $ 9.06       $ 9.58
Ontario              5.2         96.5          4.1         5.99         6.05
Quebec               4.1         93.9          5.6         6.15         6.22
Eastern
 Canada              2.8         88.9          3.3         7.33         7.46
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Total               17.0         95.0          4.3       $ 7.14       $ 7.35
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CAPITAL STRUCTURE

The Trust's capital structure remained stable during the quarter, with its interest coverage of 3.1 times. The level of debt (debt-to-total assets) increased to 53.8% primarily due to a goodwill impairment, which reduced the Trust's total assets but has no impact on the underlying business. $119 million of the Trust's assets were unencumbered as at December 31, 2015, providing an additional source of financial flexibility.

                                    December 31, September 30,  December 31,
Key performance indicators                  2015          2015          2014
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Level of debt (debt-to-total
 assets)(1)                                53.8%         52.2%         52.9%
Interest coverage ratio(1)             3.1 times     3.1 times     3.0 times
Weighted average face interest
 rate on all debt(4)                       3.91%         3.94%         4.07%
Weighted average effective
 interest rate on all debt(4)              3.81%         3.83%         3.85%
Debt - weighted average term to
 maturity (years)                            3.7           4.0           3.9
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During the quarter, the Trust completed a $6.3 million mortgage financing for a term of five years at a rate of 3.25%, secured by a portfolio of six properties in Saskatchewan. The Trust continues to improve its financial metrics, and is strategically evaluating opportunities to take advantage of the current favourable interest rate environment, while continuing to maintain a balanced debt maturity profile.

CONFERENCE CALL

Senior management will host a conference call to discuss the results tomorrow, February 17, 2016 at 2:00 p.m. (ET). To access the conference call, please dial 1-888-465-5079 in Canada and the United States or 416-216-4169 elsewhere and use passcode 9411 711#. To access the conference call via webcast, please go to Dream Industrial REIT's website at www.dreamindustrialreit.ca and click on the link for News & Events, then click on Calendar of Events. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call.

Other information

Information appearing in this news release is a select summary of results. The consolidated financial statements and management's discussion and analysis for the Trust will be available at www.dreamindustrialreit.ca and on www.sedar.com.

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. Dream Industrial REIT owns a portfolio of 219 primarily light industrial properties comprising approximately 17.0 million square feet of gross leasable area in key industrial markets across Canada. Its objective is to build upon and grow its portfolio and to provide stable, sustainable and growing cash distributions to its unitholders. For more information, please visit www.dreamindustrialreit.ca.

FOOTNOTES

(1) AFFO, FFO, comparative properties NOI, NOI, FFO and AFFO payout ratios,
level of debt (debt-to-total assets) and interest coverage ratio are non-
GAAP measures used by Management in evaluating operating performance and
debt management. Please refer to the cautionary statements under the heading
"Non-GAAP Measures" in this press release.
(2) A description of the determination of diluted amounts per unit can be
found in our Management's Discussion and Analysis for the three and twelve
months ended December 31, 2015 under the heading "Non-GAAP Measures and
Other Disclosures".
(3) Payout ratios for FFO and AFFO (non-GAAP measures) are calculated as the
ratio of distribution rate to diluted FFO and AFFO per unit, respectively.
(4) Weighted average effective interest rate is calculated as the weighted
average face rate of interest net of amortization of fair value adjustments
and financing costs of all interest bearing debt. Weighted average face
interest rate is calculated as the weighted average face interest rate of
all interest bearing debt.

Non-GAAP Measures

The Trust's 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, the Trust discloses and discusses certain non-GAAP financial measures, including net operating income ("NOI"), comparative properties NOI, funds From operations ("FFO"), adjusted funds from operations ("AFFO"), FFO payout ratio, AFFO payout ratio, level of debt (debt-to-total assets) and interest coverage ratio as well as other measures discussed elsewhere in this release. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other income trusts. The Trust has presented such non-GAAP measures as Management believes they are relevant measures of the Trust's underlying operating performance and debt management. Non-GAAP measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of the Trust's performance, liquidity, cash flow, and profitability. For a full description of these measures, please refer to the "Non-GAAP Measures and Other Disclosures" in Dream Industrial REIT's Management's Discussion and Analysis for the three and twelve months ended December 31, 2015.

Forward looking information

This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding the timing of certain transactions. 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 Industrial REIT's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate fluctuations. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dream Industrial REIT 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 contained in Dream Industrial REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Industrial REIT's website at www.dreamindustrialreit.ca.

Contacts:
Dream Industrial REIT
Brent Chapman
President and Chief Executive Officer
(416) 365-5265
bchapman@dream.ca

Dream Industrial REIT
Lenis Quan
Chief Financial Officer
(416) 365-2353
lquan@dream.ca