Dream Industrial REIT Provides Business Update and Announces Continued Portfolio Growth in Target Markets

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 24, 2020 (GLOBE NEWSWIRE) -- Dream Industrial REIT (TSX: DIR.UN) (“Dream Industrial REIT”, “DIR”, or the “Trust”) announced today a business update and recent acquisition activity in its target markets.

“The strength of our operating platform, financial flexibility, and relationships with our tenants have enabled us to successfully navigate through the challenging environment brought on by the COVID-19 pandemic over the past few months,” said Brian Pauls, Chief Executive Officer of Dream Industrial REIT. “We have maintained occupancy, continued leasing momentum, and rent collections have been good. Given the current optimism and the fact that economies are starting to re-open in a number of our markets, we continue to actively position DIR to emerge stronger as supply chains return. Our strong balance sheet, with CAD 400 million of available liquidity, and disciplined investment strategy continue to create long-term opportunities to build value for DIR’s unitholders.”

OPERATIONS UPDATE

The Trust’s focus on active asset management has led to a healthy pace of leasing over the past three months and steady occupancy across the portfolio. The Trust has leased 1.1 million square feet of space since the beginning of the COVID-19 pandemic at rates that have exceeded budgeted rates. The average spread on these leases was 4% compared to prior rental rates. Included in this leasing volume is a 5-year early renewal of one of the Trust’s largest tenants in the Greater Toronto Area (“GTA”) for a 317,000 square foot production facility in Aurora leading to substantial value creation for the asset. Committed occupancy in the Trust’s portfolio remains high at 95%, with leases representing only 3% of its portfolio gross leasable area remaining to expire over the balance of the year. The expiring rates on these leases are below current market rents providing for opportunities to grow comparative properties net operating income (“NOI”) in the latter half of 2020 and 2021.