Dream Unlimited Corp. Reports First Quarter 2025 Results and Provides Business Update
Dream Unlimited Corp. (TSX: DRM) (“Dream” or the “Company”) today released its financial results for the three months ended March 31, 2025, marking the first quarter of the year. The Company reported a notable shift in its business structure following the sale of its ski operations at Arapahoe Basin in November 2024, which historically contributed significant profits to its first quarter performance. This strategic change was highlighted by Michael Cooper, Chief Responsible Officer, who discussed the absence of Arapahoe Basin’s results, a key component of Dream’s financial performance for 27 years. He stated, “For the first time since 1997, Arapahoe Basin’s results are not included in our quarter as it was sold this past November.”
Impact of Arapahoe Basin Sale
Historically, Arapahoe Basin ski area was a major contributor to Dream’s earnings during the first quarter, often accounting for $10 million to $15 million in profits. These profits were typically achieved during the ski season, which runs from November to March, and played a crucial role in offsetting lower earnings during this traditionally quieter period. With the ski hill’s sale, Dream’s first quarter results for 2025 were expected to be “relatively quiet,” as Cooper noted, though they remained largely in line with the Company’s expectations.
Despite the absence of Arapahoe Basin’s contribution, Dream emphasized that its diversified asset portfolio and long-term growth strategy remain strong. Cooper pointed out that today, over 80% of Dream’s value is now derived from its asset management division, Western Canada developments, and its directly owned income properties. The Company is focused on driving growth in these areas as part of its evolving business model.
Growth in Asset Management and Western Canada Developments
Dream’s asset management division showed strong performance, with the Company generating revenue and net margin of $13.7 million and $6.1 million, respectively, in the first quarter of 2025. This represented an increase from the $13.0 million in revenue and $5.6 million in net margin recorded during the same period in 2024. The growth was largely driven by continued growth in assets under management (AUM) and the timing of performance and development fees, which fluctuate based on milestones being met throughout the year.
One key development for Dream was the progress made by Dream Impact Trust, which entered into an agreement to sell a minority interest in the 49 Ontario Street property. This redevelopment project, located near Toronto’s Distillery District and a future Ontario Line transit stop, will see the creation of a 1,200 multi-family unit complex. The development, which secured construction financing in the first quarter of 2025, is set to begin construction by the end of the year, positioning Dream Impact Trust to further grow its portfolio of high-value, large-scale affordable housing projects.
In Western Canada, Dream achieved strong sales, with 62 lot sales and 30 housing occupancies in the first quarter, generating a net margin of $6.3 million. Looking ahead, Dream is on track to meet its land sales targets for 2025, having secured $160 million in commitments for land pre-sales. The majority of this revenue is expected to be recognized over the course of the year, driven by sales at Dream’s Alpine Park (Calgary) and Holmwood (Saskatoon) master-planned communities.
Additionally, Dream’s income properties division, which includes its growing multi-family rental portfolio, generated revenue and net operating income (NOI) of $11.8 million and $6.4 million in the first quarter, compared to $10.3 million and $4.5 million, respectively, in the prior year. The increase in both revenue and NOI was attributed to higher rents driven by ongoing lease-up activity and rental turnover across Dream’s multi-family rental portfolio. Furthermore, the Company’s stabilized rental properties in Western Canada showed improvement as operating costs normalized, reflecting the stabilization of previously acquired properties.
Dream is also actively expanding its portfolio of income properties, with over 1,000 multi-family rental units (at Dream’s share) currently under construction in Western Canada and Ottawa. These units will further support Dream’s income property division, contributing to steady long-term growth as they are completed over the next three years. Additionally, Dream broke ground on 60,000 square feet of retail space at its Alpine Park development, marking the first retail project within this community. As of May 2025, 80% of the space is already committed through leasing agreements, a positive sign for the continued success of the development.
Performance of Non-Core Assets and Corporate Segment
The Corporate and Other segment, which includes non-core assets, generated $19.4 million in revenue but posted a negative margin of $5.5 million during the first quarter. This performance was significantly impacted by the absence of the previously profitable Arapahoe Basin ski operations, as well as lower activity related to occupancies at Ivy Condos. Dream does not anticipate significant development income from the Greater Toronto Area (GTA) or National Capital Region in 2025, further contributing to a quieter performance in this segment.
In late 2024, Dream acquired its partner’s interest in a boutique hotel portfolio that includes the Broadview Hotel, Gladstone Hotel, and Postmark Hotel, along with certain retail and condominium assets. While the retail assets are considered non-core and will likely be disposed of over time, the acquisition of the hotel portfolio marks an important shift in Dream’s asset base. The Company now owns 100% of these assets, including the recently opened Postmark Hotel in August 2024. The first quarter marked Dream’s first full period of operations with complete ownership of these hotels, which are typically affected by seasonal fluctuations. The hotel portfolio generated net operating losses of $2 million during the quarter, but Dream is committed to refining the operations to drive future profitability.
Additionally, Dream disposed of three non-core retail assets in Toronto, totaling 36,600 square feet, for gross proceeds of $16.7 million. The proceeds from these sales were used to reduce property-level debt, further strengthening Dream’s balance sheet.
Liquidity and Debt Management
As of March 31, 2025, Dream reported available liquidity of $346.3 million and $380 million in contractual debt maturities expected in 2025. The Company took proactive steps to manage its debt, having repaid $92.5 million of construction debt subsequent to the quarter-end and replaced it with more favorable take-out financing. Additionally, Dream is in advanced discussions with lenders regarding the renewal of $250 million in debt, which is expected to be completed in the normal course of business.
Dream’s strong liquidity position, coupled with its disciplined debt management approach, ensures that the Company is well-positioned to navigate the current economic climate and remain flexible in pursuing new investment opportunities as they arise.
Shareholder Meeting and Future Outlook
Looking ahead, Dream’s senior management will host its annual meeting of shareholders on June 3, 2025, at 2:00 PM (ET) at the TMX Market Centre in Toronto, Ontario. In light of the meeting, no conference call will be held for the first quarter results. Shareholders and interested parties can access the annual meeting via webcast through Dream’s website at www.dream.ca. A replay of the webcast will be available for 90 days following the meeting.
In conclusion, Dream’s first-quarter results reflect the Company’s ongoing transformation, with substantial growth in asset management, development projects in Western Canada, and the performance of its income properties. While the absence of Arapahoe Basin’s results impacted the first-quarter performance, Dream is confident in its ability to achieve its long-term growth objectives. The Company remains focused on executing its strategic initiatives, including expanding its real estate holdings and asset management platform, while maintaining a strong balance sheet to support future investments.
As Dream continues to evolve, the Company is well-positioned to capitalize on new opportunities, particularly in the affordable housing sector, and expects to see further growth and value creation from its diversified portfolio of assets.
