-
Dream Office Real Estate Investment Trust (D.UN)
-
Dream Industrial Real Estate Investment Trust (DIR.UN)
Q: Dream Industrial REIT seems to be doing very well on its own. I am confused and concerned over how it relates to, and is impacted by, the other Dream offerings (Dream Office, Dream Equity etc.). The market didn't like the Secondary Bought Deal Offering (May 16th) and I'm wondering if there are other such risks with DIR.UN being part of the Dream umbrella. Any insights would be much appreciated.
5i Research Answer:
At year end, D.UN owned 9.7% of DIR.UN but this has been reduced to about 4.9% following the issue. D.UN also owns 18.5M special trust units. There is some cross management and board memberships across the group, but each is a separate legal entity. D.UN's holdings in DIR represented more than 60% of its portfolio, so it made sense to diversify. With only a small portion left we would not expect much further impact. Other than 'reputation' risk if a group company rank into trouble, D.UN selling DIR.UN shares would be the only material connection.