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DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) Stock Fundamental Analysis

TSX:DIR-UN - Toronto Stock Exchange - CA26153W1095 - REIT - Currency: CAD

11.96  +0.34 (+2.93%)

Fundamental Rating

6

Taking everything into account, DIR-UN scores 6 out of 10 in our fundamental rating. DIR-UN was compared to 43 industry peers in the Diversified REITs industry. While DIR-UN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DIR-UN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year DIR-UN was profitable.
In the past year DIR-UN had a positive cash flow from operations.
Each year in the past 5 years DIR-UN has been profitable.
DIR-UN had a positive operating cash flow in each of the past 5 years.
DIR-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFDIR-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

The Return On Assets of DIR-UN (1.75%) is better than 88.37% of its industry peers.
DIR-UN has a better Return On Equity (3.03%) than 72.09% of its industry peers.
DIR-UN has a Return On Invested Capital of 2.82%. This is amonst the worse of the industry: DIR-UN underperforms 86.05% of its industry peers.
DIR-UN had an Average Return On Invested Capital over the past 3 years of 2.48%. This is below the industry average of 5.64%.
The last Return On Invested Capital (2.82%) for DIR-UN is above the 3 year average (2.48%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.75%
ROE 3.03%
ROIC 2.82%
ROA(3y)7.02%
ROA(5y)6.59%
ROE(3y)11.84%
ROE(5y)11.5%
ROIC(3y)2.48%
ROIC(5y)2.64%
DIR-UN.CA Yearly ROA, ROE, ROICDIR-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

DIR-UN has a better Profit Margin (30.85%) than 90.70% of its industry peers.
In the last couple of years the Profit Margin of DIR-UN has declined.
DIR-UN has a Operating Margin of 65.81%. This is amongst the best in the industry. DIR-UN outperforms 95.35% of its industry peers.
DIR-UN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 76.30%, DIR-UN belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
DIR-UN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 65.81%
PM (TTM) 30.85%
GM 76.3%
OM growth 3Y5.06%
OM growth 5Y4.17%
PM growth 3Y-34.5%
PM growth 5Y-24.66%
GM growth 3Y2.6%
GM growth 5Y1.41%
DIR-UN.CA Yearly Profit, Operating, Gross MarginsDIR-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100 150 200

4

2. Health

2.1 Basic Checks

The number of shares outstanding for DIR-UN has been increased compared to 1 year ago.
Compared to 5 years ago, DIR-UN has more shares outstanding
The debt/assets ratio for DIR-UN is higher compared to a year ago.
DIR-UN.CA Yearly Shares OutstandingDIR-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
DIR-UN.CA Yearly Total Debt VS Total AssetsDIR-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

DIR-UN has an Altman-Z score of 0.93. This is a bad value and indicates that DIR-UN is not financially healthy and even has some risk of bankruptcy.
DIR-UN has a better Altman-Z score (0.93) than 69.77% of its industry peers.
The Debt to FCF ratio of DIR-UN is 9.43, which is on the high side as it means it would take DIR-UN, 9.43 years of fcf income to pay off all of its debts.
DIR-UN's Debt to FCF ratio of 9.43 is amongst the best of the industry. DIR-UN outperforms 93.02% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that DIR-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, DIR-UN belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 9.43
Altman-Z 0.93
ROIC/WACCN/A
WACCN/A
DIR-UN.CA Yearly LT Debt VS Equity VS FCFDIR-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 0.32 indicates that DIR-UN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.32, DIR-UN is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that DIR-UN may have some problems paying its short term obligations.
DIR-UN has a better Quick ratio (0.32) than 69.77% of its industry peers.
Industry RankSector Rank
Current Ratio 0.32
Quick Ratio 0.32
DIR-UN.CA Yearly Current Assets VS Current LiabilitesDIR-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 74.58% over the past year.
DIR-UN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.95% yearly.
DIR-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.54%.
DIR-UN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.23% yearly.
EPS 1Y (TTM)74.58%
EPS 3Y-31.97%
EPS 5Y-23.95%
EPS Q2Q%-73.28%
Revenue 1Y (TTM)7.54%
Revenue growth 3Y22.87%
Revenue growth 5Y22.23%
Sales Q2Q%6.78%

3.2 Future

DIR-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.51% yearly.
DIR-UN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.48% yearly.
EPS Next Y20.31%
EPS Next 2Y29.9%
EPS Next 3Y20.51%
EPS Next 5YN/A
Revenue Next Year6.55%
Revenue Next 2Y8.35%
Revenue Next 3Y8.48%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DIR-UN.CA Yearly Revenue VS EstimatesDIR-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M 500M
DIR-UN.CA Yearly EPS VS EstimatesDIR-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.41, DIR-UN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DIR-UN indicates a somewhat cheap valuation: DIR-UN is cheaper than 76.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.35, DIR-UN is valued at the same level.
With a Price/Forward Earnings ratio of 10.96, the valuation of DIR-UN can be described as very reasonable.
76.74% of the companies in the same industry are more expensive than DIR-UN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.00, DIR-UN is valued rather cheaply.
Industry RankSector Rank
PE 24.41
Fwd PE 10.96
DIR-UN.CA Price Earnings VS Forward Price EarningsDIR-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 200 400 600

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of DIR-UN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 10.64
EV/EBITDA N/A
DIR-UN.CA Per share dataDIR-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

DIR-UN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DIR-UN has a very decent profitability rating, which may justify a higher PE ratio.
DIR-UN's earnings are expected to grow with 20.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y29.9%
EPS Next 3Y20.51%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.00%, DIR-UN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.03, DIR-UN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, DIR-UN pays a better dividend.
Industry RankSector Rank
Dividend Yield 5%

5.2 History

The dividend of DIR-UN has a limited annual growth rate of 2.56%.
DIR-UN has paid a dividend for at least 10 years, which is a reliable track record.
DIR-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.56%
Div Incr Years0
Div Non Decr Years11
DIR-UN.CA Yearly Dividends per shareDIR-UN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

DIR-UN pays out 97.73% of its income as dividend. This is not a sustainable payout ratio.
DIR-UN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.73%
EPS Next 2Y29.9%
EPS Next 3Y20.51%
DIR-UN.CA Yearly Income VS Free CF VS DividendDIR-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M
DIR-UN.CA Dividend Payout.DIR-UN.CA Dividend Payout, showing the Payout Ratio.DIR-UN.CA Dividend Payout.PayoutRetained Earnings

DREAM INDUSTRIAL REAL ESTATE

TSX:DIR-UN (2/5/2025, 7:00:00 PM)

11.96

+0.34 (+2.93%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-05 2024-11-05
Earnings (Next)02-18 2025-02-18/amc
Inst Owners32.84%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap3.32B
Analysts81.33
Price Target16.07 (34.36%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5%
Yearly Dividend0.49
Dividend Growth(5Y)2.56%
DP97.73%
Div Incr Years0
Div Non Decr Years11
Ex-Date01-31 2025-01-31 (0.05833)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.87%
PT rev (3m)-2.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-21.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
Industry RankSector Rank
PE 24.41
Fwd PE 10.96
P/S 7.25
P/FCF 10.64
P/OCF 10.64
P/B 0.71
P/tB 0.71
EV/EBITDA N/A
EPS(TTM)0.49
EY4.1%
EPS(NY)1.09
Fwd EY9.12%
FCF(TTM)1.12
FCFY9.4%
OCF(TTM)1.12
OCFY9.4%
SpS1.65
BVpS16.8
TBVpS16.8
PEG (NY)1.2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.75%
ROE 3.03%
ROCE 3.91%
ROIC 2.82%
ROICexc 2.85%
ROICexgc 2.85%
OM 65.81%
PM (TTM) 30.85%
GM 76.3%
FCFM 68.13%
ROA(3y)7.02%
ROA(5y)6.59%
ROE(3y)11.84%
ROE(5y)11.5%
ROIC(3y)2.48%
ROIC(5y)2.64%
ROICexc(3y)2.52%
ROICexc(5y)2.82%
ROICexgc(3y)2.52%
ROICexgc(5y)2.82%
ROCE(3y)3.44%
ROCE(5y)3.67%
ROICexcg growth 3Y-3.49%
ROICexcg growth 5Y-1.52%
ROICexc growth 3Y-3.49%
ROICexc growth 5Y-1.52%
OM growth 3Y5.06%
OM growth 5Y4.17%
PM growth 3Y-34.5%
PM growth 5Y-24.66%
GM growth 3Y2.6%
GM growth 5Y1.41%
F-Score7
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 9.43
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 4.77
Cash Conversion N/A
Profit Quality 220.89%
Current Ratio 0.32
Quick Ratio 0.32
Altman-Z 0.93
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)116.5%
Profit Quality(5y)96.71%
High Growth Momentum
Growth
EPS 1Y (TTM)74.58%
EPS 3Y-31.97%
EPS 5Y-23.95%
EPS Q2Q%-73.28%
EPS Next Y20.31%
EPS Next 2Y29.9%
EPS Next 3Y20.51%
EPS Next 5YN/A
Revenue 1Y (TTM)7.54%
Revenue growth 3Y22.87%
Revenue growth 5Y22.23%
Sales Q2Q%6.78%
Revenue Next Year6.55%
Revenue Next 2Y8.35%
Revenue Next 3Y8.48%
Revenue Next 5YN/A
EBIT growth 1Y8.84%
EBIT growth 3Y29.09%
EBIT growth 5Y27.33%
EBIT Next Year17.51%
EBIT Next 3Y12.88%
EBIT Next 5YN/A
FCF growth 1Y53.93%
FCF growth 3Y30.94%
FCF growth 5Y31.26%
OCF growth 1Y53.93%
OCF growth 3Y30.81%
OCF growth 5Y31.16%