Dream Office REIT Provides Business Update

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.

TORONTO, June 08, 2020 (GLOBE NEWSWIRE) -- DREAM OFFICE REAL ESTATE INVESTMENT TRUST (D.UN-TSX) or (“Dream Office REIT”, the “REIT” or “we”) today provided a business update for the month of May 2020 during the COVID-19 pandemic.

While the long-term effects of the COVID-19 pandemic remain uncertain, we believe that our well-located assets, diversified tenant base and solid balance sheet position us well to manage near-term financial and operational risks. We are looking forward to helping reopen the economy by providing our tenants with a safe and attractive office environment where they can begin their process of recovery.

MAY RENT COLLECTION & OPERATIONAL UPDATE

As of June 5, 2020, we have collected approximately 91% of May rents with an additional 1% of rents for the month of May from various government agencies due to timing of automatic payment programs that we have confirmed will be received in June.

We have agreed to work with certain tenants by deferring their gross rent for a period of one to three months. As of June 5, 2020, the REIT has agreed on May rent deferrals with repayment plans representing an additional 1.4% of May total gross rents.

Since the COVID-19 pandemic was announced, our tenant relations team has been in touch with our tenants on a bi-weekly basis, updating them on new government programs and Dream initiatives to prepare our buildings for their return. We have been educating tenants on government-led relief initiatives and assisting tenants with back to work planning for their employees.

We are actively working with smaller tenants who qualify for the Canada Emergency Commercial Rent Assistance (“CECRA”) program. Tenants who are eligible for CECRA are those who pay less than $50,000 in gross rent per month, generate less than $20 million in revenues at a corporate level and have experienced a decline in revenues of at least 70% during the months of April, May and June.

We are currently reviewing approximately 50 applications to participate in the CECRA program and we are working with those tenants to assess their eligibility and provide assistance in the application. We do not believe the financial impact from participating in CECRA will be material to the REIT. However, for our tenants, we hope these programs will assist them through these difficult times so they can recover quickly with an economically viable business for the long term.