Dream Industrial REIT Provides Business Update and Announces Continued Portfolio Growth in Target Markets - Seite 3

LIQUIDITY AND CAPITAL DEPLOYMENT UPDATE

The Trust closed on the previously announced USD 250 million unsecured revolving credit facility, which replaced its CAD 150 million secured credit facility, and boosted borrowing capacity by approximately CAD 190 million to CAD 340 million currently, resulting in overall liquidity of approximately CAD 400 million. The new facility is currently undrawn, bears interest at similar rates for Canadian and U.S. dollar draws, and adds the ability to drawdown in Euros at 1.70%. With the new unsecured facility, the Trust’s unencumbered assets have increased by CAD 270 million to CAD 1.1 billion, representing 38% of the Trust’s investment properties value as at March 31, 2020. In addition to its growing unencumbered asset pool, with leverage (net debt-to-assets ratio) at 28% as of March 31, 2020, the Trust is well-positioned to execute on attractive growth opportunities as well as pursue an investment grade credit rating in the near-term.

Through on-the-ground investment teams in both North America and Europe, the Trust has access to local relationships that boost market reach and increase deal flow. The Trust continues to successfully leverage these unique opportunities to source off-market deals of high quality properties at attractive economics. Most recently, the Trust waived conditions on EUR 37 million (CAD 56 million) of accretive acquisitions in Germany, representing a going-in capitalization rate (“cap rate”) of approximately 6.1%, with closing expected in Q3 2020. Spanning 575,000 square feet with an average clear height of 29 feet, these two highly functional properties are located close to major transportation corridors and are 95% occupied by tenants primarily in the logistics and the food and beverage industries. These acquisitions allow the Trust to drive NOI yields higher over time with in-place rental rates 17% below current market rent and an attractive weighted average lease term of 3.5 years. Moreover, developing excess land could add up to an additional 500,000 square feet of gross leasable area to these properties, significantly increasing the yield on the Trust's investment.