World News: 00:05 GMT Wednesday 15th May 2019. [Dream Unlimited Corp. via Globe Newswire via SPi World News]
TORONTO, May 14, 2019 (GLOBE NEWSWIRE) -- today announced its financial results for the three months ended March 31, 2019. Basic earnings per share (“EPS”) for the three months ended March 31, 2019 was $0.17, down slightly from $0.22 in the comparative quarter on a standalone basis, which excludes operational income generated from Dream Hard Asset Alternatives Trust (TSX: DRA.UN) (“Dream Alternatives”). At March 31, 2019, Dream’s total equity, on a standalone basis, increased to $9.47 per share, up 8% from $8.75 per share one year ago.
"Our underlying operational results were solid for a quarter which is typically our quietest” said Michael Cooper, President & Chief Responsible Officer of Dream. “As a significant portion of our development pipeline is in the planning or pre-development stages, the financial results for 2019 will not easily reflect the progress we are making towards creating and owning best in class assets. Nonetheless, we are extremely pleased with the advancements we are making. Dream is the largest unitholder of both Dream Office REIT and Dream Alternatives, both of which are focused on owning and developing core assets predominately in Toronto. With the execution of a new shared services agreement with Dream Office REIT, we are now developing properties on behalf of Dream Office REIT and Dream Alternatives, which further adds to the exceptional asset pipeline in Toronto. ”
A summary of our results for the three months ended March 31, 2019 is included in the table below.
In the three months ended March 31, 2019, on a consolidated basis the Company recognized a loss of $33.5 million, down from income of $147.1 million in the comparative prior year period. Results in the comparative period included a one-time net gain on acquisition of Dream Alternatives of $130.0 million. Current period results included fair value losses on the Dream Alternatives trust units of $61.9 million which are fair valued each period under IFRS and were generated as a result of an increase in the Trust’s unit price of 15% since December 31, 2018. Excluding these non-cash items, results were more comparable year-over-year.
In the three months ended March 31, 2019, the Company recognized earnings before income taxes on a standalone basis of $23.7 million, a decrease of $5.8 million from the prior year due to increased interest expense of $1.5 million and a one-time net gain on acquisition of Dream Alternatives in the comparative period of $12.6 million. This was partially offset by fair value gains on financial instruments as a result of an increase in the unit price of Dream Global REIT relative to the prior year.
Adjusted EBITDA is calculated on a standalone basis using earnings for the period adjusted for interest and income tax expense, depreciation and amortization, fair value changes and the net distribution component of income from the Company’s investment in Dream Office REIT. It is an important measure for the Company as it eliminates the impact of significant non-cash items from earnings. Adjusted EBITDA for the three months ended March 31, 2019 was $21.4 million, an increase of $6.5 million relative to the prior year primarily due to increased contribution from our asset management segment, improved net operating income from Arapahoe Basin, our ski area in Colorado, and growth in distributions from the Dream Publicly Listed Funds due to additional units acquired since the comparative period.
Effective this quarter we have redefined our segment information to better reflect how we view and manage our business. Our operating results have been defined as follows:
Select financial operating metrics for Dream’s segments for the three months ended March 31, 2019 are summarized in the table below.
Dream is one of Canada’s leading real estate companies with over $15 billion of assets under management in North America and Europe. The scope of the business includes asset management and management services for four Toronto Stock Exchange ("TSX") listed trusts and institutional partnerships, condominium and mixed-use development, investments in and management of a renewable power portfolio, commercial property ownership, residential land development, and housing and multi-family development. Dream has an established track record for being innovative and for its ability to source, structure and execute on compelling investment opportunities. For further information, please contact:
Globe Newswire: 00:05 GMT Wednesday 15th May 2019
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