Dream Impact Trust Forges Ahead With Key Projects Despite Q1 Net Loss

TORONTO, ON – May 04, 2026 – Dream Impact Trust reported a net loss of $4.6 million for the first quarter of 2026, but the headline figure belies a story of strategic advancement and financial fortification. While navigating a challenging housing market, the impact-focused real estate trust made significant strides in its flagship development projects, strengthened its balance sheet, and saw continued growth in its multi-family rental portfolio, signaling a long-term strategy that prioritizes both community impact and investor value.

Fortifying the Financial Foundation

Despite the net loss widening from $3.8 million in the same period last year, Dream Impact Trust demonstrated considerable progress in managing its financial health. A key highlight was the significant reduction in its debt-to-asset value, which dropped to 36.2% from 43.7% at the end of 2025. This improvement was primarily driven by the successful arrangement of government-affiliated financing for its major 49 Ontario development, allowing the settlement of a land loan and a strategic partnership reorganization.

"We have started 2026 with strong momentum on our key developments as we secured government-affiliated financing at 49 Ontario and are making good progress tendering construction and are doing well on our schedule," said Michael Cooper, Portfolio Manager, in the company's press release. "We continue to work on our strategic plan, including advancing development projects, crystallizing value on commercial and passive investments and addressing near term debt maturities."

The Trust also proactively addressed its liquidity. It amended and increased its credit facility with Dream Asset Management Corporation to $50 million, providing $21 million in available funds as of early May. Furthermore, it tackled its near-term debt obligations, reducing its 2026 maturities by $58.7 million since the start of the year. These moves, including a proposal to settle management fees with convertible debentures, are designed to provide the financial runway needed to execute its large-scale, multi-year development pipeline.

Building the Future of Urban Living

The quarter saw tangible progress on the ground at several transformative projects that are central to the Trust’s mission.

At 49 Ontario in downtown Toronto, demolition is now underway. This follows the securing of a crucial long-term, government-affiliated construction loan for the 1,226-unit purpose-built rental project. With the Trust retaining a 90% ownership stake, the development is poised to become a significant addition to the city's housing supply, with approximately 22% of its units designated as affordable housing. The project's viability was enhanced by the City of Toronto waiving development charges, a move that supports the creation of much-needed rental stock. Initial occupancy is anticipated in 2028.

Progress was also made at Quayside, the landmark Toronto waterfront revitalization project. A partnership reorganization was completed, resulting in Dream Impact Trust and its fund partner now collectively owning 100% of the first phase's multi-family portfolio. This phase is set to deliver over 1,700 units, including approximately 1,100 market-rate rentals and 550 affordable units, in partnership with Waterfront Toronto. Construction is expected to begin by the end of 2026.

Meanwhile, leasing continues at the nearly completed Cherry House at Canary Landing. This 855-unit development in Toronto’s West Don Lands is seeing strong absorption, with one of its three blocks already fully leased. Upon completion, the Trust's portfolio will include over 3,800 multi-family units, bolstering its recurring income stream.

A Resilient Rental Portfolio

The Trust's recurring income segment is increasingly anchored by its growing multi-family rental portfolio. While overall recurring income saw a net loss due to softness in the commercial segment, the multi-family properties provided a bright spot. Same-property net operating income (NOI) grew to $2.8 million from $2.6 million year-over-year, driven by properties like Maple House and Aalto II reaching near-stabilization with high lease rates of 96% and 89%, respectively.

This performance is particularly noteworthy given the cooling rental market in the Greater Toronto Area. Recent market data shows a five-year high in vacancy rates and a decline in year-over-year rents as a wave of new supply comes online. Dream Impact's ability to achieve 94.4% occupancy across its portfolio, a significant increase from 86.8% a year prior, underscores the appeal of its modern, well-located, and impact-focused properties in a more competitive environment.

The Double Bottom Line in Action

Dream Impact Trust operates under a unique "double bottom line" mandate, aiming to generate positive social and environmental outcomes alongside financial returns. The first-quarter results illustrate this strategy in practice. The progress at 49 Ontario and Quayside directly advances the Trust's goals of creating attainable and affordable housing and building inclusive communities.

This commitment is measured and reported through a robust internal system and validated by external benchmarks. The Trust has earned high marks from the UN-supported Principles for Responsible Investment (PRI) and achieved a top ranking in its Canadian peer group from GRESB, a global ESG benchmark for real assets.

The environmental sustainability vertical is exemplified by projects like Zibi in the National Capital Region. Its innovative district energy system, using waste heat and river-source cooling, significantly reduces greenhouse gas emissions. This focus on long-term sustainability, coupled with strategic financial management, positions the Trust to navigate the complexities of the current market while building a portfolio of assets designed for resilience and community value. The continued advancement of its development pipeline is expected to be a key driver of long-term value for unitholders.