/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 08/15/16 -- 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 six months ended June 30, 2016. Basic earnings per share ("EPS") for the three months ended June 30, 2016 were $0.29, down from $1.12 for the three months ended June 30, 2015. On a more comparable basis, basic EPS was up over 90% from $0.15 for the three months ended June 30, 2015, excluding the one-time gain of $0.97 per share on the reorganization of an asset management agreement. At June 30, 2016, the Company's total equity increased to $779.2 million ($6.91 per share), up 9% from $716.8 million ($6.33 per share) in the prior year.

Michael Cooper, President & Chief Responsible Officer of Dream commented: "Our second quarter results were significant, with strong financial results from our condominium developments in downtown Toronto and from our development and other asset management activities. Historically, a large proportion of our income has been driven by our Western Canadian land development business and while we expect this will be the case over the long term, our financial results demonstrate the benefit of operating a diverse business. Our Toronto condominium business is strong. We continue to look to grow this business, directly and through new development partnerships. We continue to make progress on getting our lands in Western Canada approved, which will continue to make our lands more valuable. We expect to have a significant financial year in 2016, despite some short-term market concerns in Western Canada."

A summary of our results for the three and six months ended June 30, 2016 is included in the table below.

                                 Three months ended        Six months ended
                                           June 30,                June 30,
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(in thousands of Canadian
 dollars, except per share
 amounts)                          2016        2015        2016        2015
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Revenue                      $   96,391  $   65,538  $  197,687  $  113,689
Net margin(1)                $   31,662  $   17,988  $   64,931  $   26,697
Net margin %(1)                    32.8%       27.4%       32.8%       26.1%
Earnings before income taxes $   45,644  $  149,725  $   73,647  $  154,215
Earnings for the period      $   32,912  $  125,795  $   51,887  $  129,260
Basic earnings per share(2),
 (4)                         $     0.29  $     1.12  $     0.46  $     1.15
Diluted earnings per share   $     0.29  $     1.07  $     0.45  $     1.09

Basic earnings per share
 (ex. prior year gain on
 reorg.) (4)                 $     0.29  $     0.15  $     0.46  $     0.19
Net margin by major business
 segment before eliminations
Land development(3)          $      374  $   11,732  $   23,644  $   11,253
Housing development(3)       $     (999) $    1,835  $   (2,437) $    1,741
Condominium development      $    4,597  $     (811) $    6,175  $     (818)
Investment and recreational
 properties                  $    3,397  $    2,833  $    8,894  $    6,232
Asset management and
 management services         $   24,980  $    4,098  $   29,876  $   13,819

Earnings (losses) from
 equity accounted
 investments                 $   20,649  $    3,000  $   20,251  $   (3,103)
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Total assets                 $1,564,621  $1,403,511  $1,564,621  $1,403,511
Total liabilities            $  785,388  $  686,745  $  785,388  $  686,745
Total equity                 $  779,233  $  716,766  $  779,233  $  716,766
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(1)  Net margin (see "Additional IFRS Measures" on page 38 of our
     management's discussion and analysis ("MD&A") for the quarter ended
     June 30, 2016) 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 IFRS Measures" on page 38 of our
     management's discussion and analysis ("MD&A") for the quarter ended
     June 30, 2016) 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 $0.7 million for the three
     months ended June 30, 2016 (three months ended June 30, 2015 - $1.7
     million) have been eliminated on consolidation. For additional details,
     please refer to the discussion on pages 11 & 12 of our MD&A for the
     quarter ended June 30, 2016.
(4)  Included in earnings in the three and six months ended June 30, 2015 is
     a gain of $127.3 million ($110.0 million after tax) from the
     reorganization of the Dream Office REIT asset management contract. For
     further details refer to page 22 of our MD&A for the quarter ended June
     30, 2016.

Key Results Highlights: Development

--  In the second quarter of 2016, we achieved 430 condominium unit
    occupancies (215 at Dream's share) within Blocks 4 and 11 at the Canary
    District generating net margin of approximately $16.8 million within
    earnings from equity accounted investments. Approximately 380 units (190
    units at Dream's share) are left to occupy, of which 98% are sold as at
    August 12, 2016. Management expects that the buildings will be
    substantially occupied by the end of 2016. The site, developed through a
    50/50 partnership owned by Dream and Kilmer Van Nostrand Co. Limited,
    was used as a temporary home by athletes during the Pan/Parapan American
    Games Athletes' Village in 2015. Stage 1 of the Canary District includes
    a YMCA, a 500 bed George Brown College student residence, 253 affordable
    housing rental units and 810 market condominium units. As part of the
    Stage 2 lands, the partnership expects to develop another 1,000 market
    condominium units and 20,000 square feet ("sf") of retail in addition to
    the 29,000 sf in Stage 1, which is 76% leased to date. Management
    expects that the existing Canary District retail will be fully leased by
    the third quarter of 2017. For more details on the Canary District and
    the scope of the development project please visit:
    www.canarydistrict.com.
--  In the three months ended June 30, 2016, Dream achieved 111 condominium
    unit occupancies (held through direct ownership) within The Carnaby in
    downtown Toronto. The project is now almost fully occupied and is
    expected to close in the third quarter of 2016. As at June 30, 2016, our
    condominium projects include 1,498 units in inventory (622 units at
    Dream's share) in various stages of pre-construction or active
    development. Approximately 92% of these condominium projects were either
    sold or pre-sold as at June 30, 2016.
--  In the three months ended June 30, 2016, Dream added $11.4 million to
    its condominium inventory related to both the acquisition of land at 677
    Queen Street East and an increase in ownership in our Riverside Square
    development in downtown Toronto. Riverside Square is a five acre, two
    phased, mixed-use development located in Toronto's downtown east side on
    the south side of Queen St. East and immediately east of the Don Valley
    Parkway. Included in condominium inventory as at June 30, 2016 is $24.7
    million related to the development. Dream has a 32.5% interest as at
    June 30, 2016 (up from 25% previously) in the project and its partners
    include: a condominium/mixed-use developer and an automotive group. The
    first phase of the project consists of 690 residential condominium
    units, of which 97% are sold to date, a multi-brand auto-plex (Infiniti,
    Nissan, Ford, Toyota and Hyundai), which will be acquired by the
    automotive group and approximately 16,000 sf of retail space. The second
    phase is planned to consist of a 55,000 sf grocery-anchored multi-tenant
    retail component together with 140 condominium units and 98 residential
    apartment units. Marketing for the condominium units within the second
    phase was launched in May 2016 and is already 91% sold to date.
    Construction on the first phase of the project commenced in the second
    quarter of 2016. The first and second phases are anticipated to be
    completed by the end of 2018 and 2020, respectively.
--  In the six months ended June 30, 2016, Dream achieved 94 lot sales, 172
    undeveloped acre sales, 4 developed acre sales and 44 housing unit
    occupancies, compared to 171 lot sales, 45 undeveloped acre sales, 17
    developed acre sales and 106 housing unit occupancies in the in the six
    months ended June 30, 2015.
--  At June 30, 2016, Dream's backlog consisted of 264 lots and 2 acres.
    Backlog represents the total pre sold lots or acres under construction
    and/or lots, acres or units on which we have received a deposit but for
    which construction has yet to commence.

Dream does not issue specific annual guidance for its external lot, acre or housing sales. Given the current environment in Western Canada, we are continuously reviewing our land supply to ensure the inventory we bring to market is paced with demand. Additionally, as we execute on our strategy to participate in more of the market share within our new communities by developing more single family homes, retail and commercial properties ourselves, our external lot and acre sales volumes are expected to gradually decline from prior years. As we build out and sell, lease or rent these properties, we intend to capture the development profit on both the land and building components and add to our recurring income sources by holding any income properties developed. Currently, we are focusing on building out our existing communities and strategically evaluating when servicing should commence in new communities. Given these factors, we anticipate having less sales volume overall in 2016, as compared to the prior year. However, with the undeveloped acre sales that occurred during the six months ended June 30, 2016, our overall net margin for the land division in fiscal 2016 is expected to generally meet that of the prior year, assuming consistent market conditions in Western Canada.

Key Advancements & Updates in Western Canada

Approvals in Western Canada:

--  In the second quarter of 2016, the Eastbrook (formerly referred to as
    the Towns) Concept Plan and the rezoning applications for Dream's first
    three phases of development within the neighbourhood received approval
    from Regina's City Council. Dream's land holdings within the approved
    planning area consist of approximately 179 acres and are expected to
    accommodate 1,400 residential units for a projected population of 3,500
    people. Dream expects development in Eastbrook to commence in 2016 with
    first sales expected in 2017. Altogether, Dream owns approximately 320
    acres in Eastbrook, which it expects to remain active in over the next
    10+ years.

Retail Development Partnership Formed to Develop Brighton Marketplace, a 234,000 SF Shopping Centre within Brighton in Saskatoon, Saskatchewan:

--  In the three months ended June 30, 2016, Dream Wilson Brighton
    Development LP ("Dream Wilson"), a new (equity accounted) joint venture
    partnership between Dream and its 50% partner, acquired 20.5 acres of
    retail land located in our Brighton (Holmwood) development in Saskatoon.
    To form this partnership, Dream contributed 7.6 acres of retail land and
    cash consideration to equalize each partner's contribution to the joint
    venture at fair value. As a result of contributing these lands to the
    joint venture at fair value, Dream recognized $2.3 million of gross
    margin during the three months ended June 30, 2016, which is included
    within the Company's financial results from its land division.

    The 20.5 acre retail site is strategically located in the south west
    quadrant of College Drive and McOrmand Drive, allowing the future
    shopping centre to cater to the needs of the existing large population
    immediately to the north and the rapidly growing Brighton neighbourhood
    of 15,000 residents immediately to the south and east. Upon completion
    in 2020, the site is expected to comprise 224,100 sf of gross leasable
    area ("GLA"). As at June 30, 2016, Dream had committed leases for
    approximately 37% of the aggregate GLA, from tenants such as: Save-On-
    Foods, Motion Fitness, State and Main, TWA Vision, and The Keg. Dream is
    currently developing 509 acres of residential land in Brighton. As part
    of the broader Holmwood development, which includes the neighbourhood of
    Brighton, Dream has a leading land position of over 3,000 acres.
    Holmwood is expected to include nine future neighbourhoods containing
    over 32,000 residential units and 5.5 million sf of commercial space
    (80% of which Dream expects to develop) over a period of 20+ years. A
    preliminary estimate indicates that Dream's lands will accommodate
    approximately 28,000 residential units.

Commenced Construction of the Shops of South Kensington in South Kensington, Saskatoon:

--  In the three months ended June 30, 2016, Dream commenced construction on
    its 6.5 acre retail site in South Kensington for its first tenant, Save-
    On-Foods. When open, the 34,000 square foot Save-On-Foods location will
    be the first in the Saskatoon market. The total shopping centre will
    comprise 72,000 sf of GLA and will include other tenants such as
    Scotiabank and Shoppers Drug Mart. As at June 30, 2016, Dream had
    secured leases for 77% of the site for a weighted average lease term of
    17.7 years. Management expects that Shops of South Kensington will be
    fully leased upon its expected completion date in 2018.

Asset Management:

--  Fee-earning assets under management across the listed funds were
    approximately $5.1 billion, relatively consistent with the prior
    quarter, and up slightly from $4.9 billion in the prior year. Fee
    earning assets under management across private institutional,
    development partnerships and/or funds was $1.7 billion, consistent with
    the prior quarter. Total assets under management were approximately
    $14.5 billion at June 30, 2016.
--  Revenue from development and other asset management fees, including
    institutional partnerships, was $22.0 million, or approximately 80% of
    total asset management revenue in the second quarter of 2016. Net margin
    from asset management was $25.0 million, or 89.7% of revenue for the
    three months ended June 30, 2016, up materially from the comparative
    prior year period due to fees earned within certain development
    partnerships for the successful achievement of significant milestones.
    Fees earned from development arrangements may fluctuate from period to
    period depending on the development stage of active projects.
--  During and subsequent to the six months ended June 30, 2016, the Company
    acquired approximately 0.8 million units in Dream Hard Asset
    Alternatives Trust ("Dream Alternatives") (TSX: DRA.UN) in the open
    market, taking its total ownership to 4.9 million units, or
    approximately 7% of total units outstanding. Altogether, with Dream's
    investments in Dream Office REIT and Dream Global REIT, the Company
    holds $180.6 million of units as at June 30, 2016 in the publicly listed
    funds which generated cash distributions of $6.6 million in the six
    months ended June 30, 2016. In 2016, the Company began to record its
    investment in the units of Dream Alternatives within equity accounted
    investments. Additional details are included on page 27 of the MD&A.

Investment and Recreational Properties

--  In the three months ended June 30, 2016, investment and recreational
    properties generated $3.4 million of net margin, up from $2.8 million in
    the prior year, primarily attributable to Arapahoe Basin ("A-Basin").
    Dream's financial results continues to benefit from strong operational
    results from A-Basin, our ski resort in Colorado.
--  In the three months ended June 30, 2016, our retail properties in
    Western Canada (which are only partially income producing as they are
    under development) continue to progress on schedule and welcome new
    retail tenants. Within the Meadows in Edmonton, our Tamarack North,
    North East and South East developments achieved an additional 29,000 sf
    of retail occupancies in the second quarter of 2016, including
    Michael's. The three Tamarack properties are expected to comprise
    approximately 179,000 sf of GLA upon completion. As at June 30, 2016,
    Dream had committed leases for approximately 71% 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. Once completed and fully stabilized
    these properties are expected to produce over an 8% development yield on
    cost.

Capital Structure & Financing

--  As at June 30, 2016, our debt to total asset ratio was 33.1% with up to
    $143.9 million of undrawn credit availability on our operating line, up
    from $123.6 million at December 31, 2015, providing the Company with
    ample excess liquidity.

Select financial operating metrics for the three and six months ended June 30, 2016 are summarized in the table below.

                                Three months ended         Six months ended
                                          June 30,                 June 30,
                          --------------------------------------------------
(in thousands of dollars,
 except average selling
 price and units)                2016         2015        2016         2015
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LAND DEVELOPMENT
Lot revenue                $    6,426   $   12,565  $   11,530   $   19,791
Acre revenue(1)            $    2,432   $   12,225  $   41,386   $   13,073
Total revenue(1)           $    8,858   $   24,790  $   52,916   $   32,864
Gross margin(1)            $    4,044   $   14,589  $   30,278   $   16,590
Gross margin (%)                 45.7%        58.9%       57.2%        50.5%
Net margin(1)              $      374   $   11,732  $   23,644   $   11,253
Net margin (%)                    4.2%        47.3%       44.7%        34.2%
Lots sold                          55          102          94          171
Average selling price -
 lot                       $  117,000   $  123,000  $  123,000   $  116,000
Undeveloped acres sold              4            -         176           45
Developed acres sold                -           17           -           17
Average selling price -
 acres                        640,000      719,000     235,000      210,000
HOUSING DEVELOPMENT
Housing units occupied             24           62          44          106
Revenue(1)                 $    8,798   $   25,360  $   16,354   $   42,246
Gross margin(1)            $    1,697   $    5,211  $    3,041   $    7,680
Gross margin (%)                 19.3%        20.5%       18.6%        18.2%
Net margin(1)              $     (999)  $    1,835  $   (2,437)  $    1,741
Net margin (%)                  (11.4%)        7.2%      (14.9%)        4.1%
Average selling price -
 housing units             $  367,000   $  409,000  $  372,000   $  402,000
Average selling price -
 per square foot for units
 occupied                  $      269   $      288  $      276   $      281
CONDOMINIUM DEVELOPMENT
Attributable to Dream,
 including equity
 accounted investments
Condominium occupancies -
 units                            326            -         413            -
Revenue                    $  115,204   $      950  $  146,013   $    2,018
Gross margin(2)            $   28,078   $      889  $   32,784   $    1,954
Gross margin (%)                 24.4%         n/a        22.5%         n/a
Net margin                 $   21,070   $   (1,201) $   21,759   $   (1,638)
Net margin (%)                   18.3%         n/a        14.9%         n/a
Average selling price of
 condominiums occupied
Per unit                   $  331,000   $      n/a  $  338,000   $      n/a
Per square foot            $      505   $      n/a  $      497   $      n/a
ASSET MANAGEMENT AND
 MANAGEMENT SERVICES
Fee earning assets under
 management(4)             $5,144,000   $4,946,000  $5,144,000   $4,946,000
Revenue                    $   27,862   $    6,109  $   34,984   $   17,565
Net margin(4)              $   24,980   $    4,098  $   29,876   $   13,819
Net margin (%)                   89.7%        67.1%       85.4%        78.7%
INVESTMENT INCOME EARNED
 ON INVESTMENTS IN LISTED
 FUNDS
Dream Office REIT          $      887   $    2,384  $    3,511   $    3,039
Other distributions from
 listed funds              $      613   $      535  $    1,124   $    1,063
Interest and other income  $    1,074   $      704  $    1,862   $    1,479
Total                      $    2,574   $    3,623  $    6,497   $    5,581
INVESTMENT AND
 RECREATIONAL PROPERTIES
Attributable to Dream,
 excluding equity
 accounted investments
Revenue                    $   12,648   $   13,131  $   29,154   $   26,290
Net margin(3)              $    3,397   $    2,833  $    8,894   $    6,232
Net margin (%)                   26.9%        21.6%       30.5%        23.7%
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(1)  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. The revenue and net margin
     recognized in both the land and housing divisions, have been eliminated
     on consolidation. For more details, please refer to pages 11 & 12 of
     this MD&A.
(2)  Gross margin (refer to "Additional IFRS Measures" on page 38 of our
     MD&A for further details) for condominium operations include interest
     expense, which is capitalized during the development period and
     expensed through cost of sale as units are occupied.
(3)  Net margin (refer to "Additional IFRS Measures" on page 38 of our MD&A
     for further details) for investment and recreational properties
     includes depreciation expense.
(4)  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
     IFRS Measures" 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 are available at www.dream.ca and on www.sedar.com.

Conference Call

Senior management will now host semi-annual conference calls. It's next conference call will be on August 16, 2016 at 9:00 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 7552 747#. 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 $14.5 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 four TSX-listed trusts, 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 and debt-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 three and six months ended June 30, 2016.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements regarding expected GLA of retail developments, timing of leasing or commencement of future retail developments, as well as expected development yield, timing of condominium occupanices, future residential and commercial densities, development plans of future stages of the Canary District and performance of the land development, retail development and housing development divisions. 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, performance of our underlying business segments and conditions in the Western Canada land and housing markets. 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 August 12, 2016. 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
www.dream.ca