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Dream Hard Asset Alternatives TrustJune 2015 Investor Presentation
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*Implied yield is based on fixed distribution of $.40 per unit and TSX closing price as of May 11, 2015. Unlike fixed income securities, there is no obligation on the Trust to distribute to unitholders any fixed amount, and reductions in, or suspensions of, cash distributions may occur that would reduce the yield based on market price
3*IRR (Internal Rate of Return) represents the discount rate of annual net cash paid out to shareholders and the equity value (including minority interest) as at March 31, 2015 over the initial investment in 2003
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*Information is as at May 12, 2015, 2015
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Manages 60 million square feet of
commercial properties across three publicly
listed REITs
Develops $400 million per year of residential land and
housing
Has developed $300 million a year in renewable power
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*Net of Non-Controlling interests as at March 31, 2015 per Q1 Financial Statements.
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Income
Properties
Lending
Portfolio
Development
& Investment
Holdings
Renewable
Power
Cash and
other
NAV Per Unit
$3.45
$2.06 $2.28
$0.93 $0.98
$9.70
Adjusted Net Asset Value* Per Segment
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$-
$2.00
$4.00
$6.00
$8.00
$10.00
NAVPU
Current Trading Price
$9.70
$6.45
Adjusted NAV vs Current Trading
Price**
34% discount
*Based on net asset value as at March 31, 2015 as disclosed first quarter Financial Statements. ** Based on net asset value as at March 31, 215 and TSX closing price as of May 12, 2015.
As per page 60 of the Q1 Financial Statements, the Income Properties, Development and Investment Holdings, and Cash and Other Trust Consolidated Working Capital are measured at fair value and the Lending Portfolio and Renewable Power segments are measured at amortized cost. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation.
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Average Interest Rate 3.31%
*Represents mortgage debt on the co-owned properties with Dream Office REIT and renewable power construction loan.
Portfolio Highlights
11,363
West Metro CentreToronto (x%)
Valhalla CentreToronto
Sussex CentreToronto
Commerce WestToronto
London City CentreLondon
10 Lower SpadinaToronto
2010 Winston Park DriveOakville
2810 Matheson Blvd.Missisauga
219 Laurier Avenue WestToronto
Gateway Business CentreToronto
49 Ontario StreetToronto
Mortgages Payable
Lease Expiries
Overview of Investments
282 Diversified
Tenants
16 Office Properties
3 Retail Properties
91.2% in-place &
Committed Occupancy
$75
$44
$72
$53
$6
30%
17%
29%
21%
2% 0%
5%
10%
15%
20%
25%
30%
35%
$- $10 $20 $30 $40 $50 $60 $70 $80
2015 2016 2017 2018 2020 and
thereafter
Mil
lio
ns
5%
15% 17%11%
5%
47%
102283 325
221 97
911
0%
10%
20%
30%
40%
50%
0
200
400
600
800
1000
2015 2016 2017 2018 2019 2020 and
after
Tho
usa
nd
s
GLA Percentage of Portfolio
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Tenant
Number of
Buildings GLA
% of total
GLA
% of total Gross
Revenue
Remaining
Lease Term
Credit
Rating
TD Canada Trust 2 256,609 12.0% 9.9% 7.5 AA-
SNC-Lavalin Inc. 4 176,625 8.3% 9.5% 5.8 BBB
Government of Canada 1 109,592 5.1% 5.7% 1.2 AAA
Trader Corporation 1 48,318 2.3% 2.9% 2.2 N/A
Technicolor Creative Services
Parmalat Canada Inc. 1 45,941 2.2% 2.7% 8.4 BBB+
Edward D. Jones & Co. 1 39,256 1.8% 2.6% 4.8 N/A
Government of British Columbia 2 65,628 3.1% 2.6% 4.8 AAA
Livingston International Inc. 1 37,646 1.8% 2.3% 1.8 N/A
Smucker Foods of Canada
Total 15 864,965 40.3% 42.5% 4.9
(1) Credit ratings obtained from Standard & Poor’s and Egan Jones, which may reflect the parent’s or a guarantor’s credit rating(2) Not available
Icon Waterloo, ON
Hilldale RetirementGardens, Thunder Bay, ON
Isabella Developments Inc, Thunder Bay, ON
MMS Enterprises (Empire)Oakville, Ontario
Fairmont Tremblant Resort, Mt Tremblant, QC
Empire Communities Wyndance, Uxbridge, ON
InGastownVancouver, BC
St Clair Avenue WestToronto, ON
Portfolio Highlights
Maturity Summary of Lending Portfolio
Sector Allocation of Lending Portfolio
Over 61% of the original lending portfolio has been repaid, allowing us to reinvest the proceeds at higher risk adjusted returns.
Many of the loans which had been considered higher risk at the time of launch have been
repaid.
Overview of Investments
First Mortgages
71%
Weighted Average Effective
Interest Rate8.94%
Hospitality loans represented 52% of the original loan portfolio. Today, hospitality represent 13% of
the current loan portfolio.
13.0%
34.2%
14.5% 13.8% 12.7%
6.7% 5.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Hotels /
Hospitality
Land Corporate Loan
/ Other
Retirement
Home
Industrial (Self
Storage)
Multi-Residential Retail
.
Overview of Investments
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*Total Current plus. committed occupancy for the Villarboit retail development assets was 39.8%. As at December 31, 2014, the completed developments comprised 180,500 sq.ft. and had a leased and occupied rate of 91.5%, which includes leasable area where tenants have occupied the space but are not yet paying rent. The dates presented represent the timing of when all tenants become rent-paying within their respective development project Information is for the three months ended Dec. 31, 2014 per Q4 Financial Statements. Please see Glossary of Terms at end of presentation for definitions of terms used throughout this presentation
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Information as at December 31, 2014 per Q4 Financial Statements.
Overview of Investments
Ownership Installed Capacity MW
PPA Years
Estimated / ActualOperational Date
Estimated Project Cost
Estimated Carrying Value
Operational Projects
Ontario Rooftop Solar 100% 0.7 20 August, 2014 $3.2 million $3.2 million
Projects Under Development - Wind
Nova Scotia Wind 80% 10.6 20 September, 2015 $28.3 million $22.1 million
Projects Under Development - Solar
Ontario Rooftop Solar 100% 4.9 20 April – October 2015 $13.5 million $4.1 million
Ontario Ground Mount Solar 100% 5.0 20 Jul – October 2015 $76.5 $33.3 million
Total 21.2 $118.4 million $62.6 million
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*As at May 12, 2015. **Per management’s estimate as at May 12, 2015.
ROI Funds - 6 Mths Prior to
Announcement
DAT - Since Inception
0
50
100
150
200
30
130
Relative Average Trading Volume Between Aggregate of 3 ROI Funds & DAT
Original Units61%
Units Turned Over39%
Unitholder Turnover Since Listing July 8
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IncomeProperties
33%
RenewablePower33%
Real EstateDevelopment
DevelopmentLoans
TraditionalLoans
33%
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Dan MarinovicSVP Land & Housing
Jason LesterSVP Urban Development
Victor SettinoVP, Commercial Development
Michael KosiancicVP, Firelight Infrastructure
Partners
Adam ReedsDirector, Renewable Power
Investments
Joshua KaufmanVP, Retail & Commercial
Development
Kevin HardySVP, Portfolio Management
Andrew ReialSVP, Portfolio Management
Paul SkeansSVP, Portfolio Management
Real Estate Opportunities
Jane Gavan President, Asset Management;
CEO Dream Office; CEO Dream Global
Ayesha ShafiqDirector, Real Estate
Investments
Kim LefeverSenior Manager, Investor Relations
Michael CooperCEO Dream, Portfolio Manager DAT
Joshua KaufmanVP, Retail & Commercial
Development
Adam ReedsDirector, Renewable Power
Investments
Michael KosiancicVP, Firelight Infrastructure
Partners
Lindsay BrandInvestments
Renewable Power and
Development Opportunities
Portfolio Management
Real Estate Asset Management
Finance
Real Estate Asset
Management
Renewable Power and
Development Opportunities
Real Estate Opportunities
Pauline Alimchandani CFO Dream
CFO Dream Alternatives Trust
Brian RoweController, DAT
Jay JiangVP Finance, DAT
Pauline AlimchandaniCPA, CA, CFA
James Eaton
Jane Gavan
• CFO –Dream Unlimited Corp
• Vice President, Research Analyst, Real Estate & REITs - BMO Capital Markets
• Assurance, Consulting & Deals - PricewaterhouseCoopers LLP
• President - Weatons Holdings Ltd.
• Board/Trustee Member - J.C. Clark Ltd., Defyrus Inc. True Patriot Love Foundation, Canadian Art Foundation, John David and Signy Eaton Foundation
Joanne FerstmanCPA, CA
• Board Member – Dream Unlimited Corp., Dream Office REIT, Excellon Resources Inc., Aimia Inc., Osisko Mining Corporation
• President & CEO – Dundee Capital Markets Inc.
• Vice-Chair, Head of Capital Markets – Dundee Wealth Inc.
• President, Asset Management – Dream Unlimited Corp.
• CEO – Dream Office REIT, Dream Global REIT
• Board Member – Dream Unlimited Corp., Dream Office REIT, Dream Industrial REIT
David Kaufman CAIA, Chair of the Board of Trustees
• Founder, President & CEO – Westcourt Capital Corporation
• Host/Writer/Contributor – BNN “Alternative Investing”, Financial Post “Alternative Investor”, CBC “Lang & O’Leary Exchange”
• Real Estate/Private Equity – Magna Golf Club, Menkes Developments, Lynx Equity
Andrew Lapham• Executive Advisor – The Blackstone Group, Canada
• Private Equity/Hedge Fund - Onex Partners, Odyssey Partners, John A. Levin & Co.
Michael Cooper• President & CEO –Dream Unlimited Corp.
• Board Member – Dream Unlimited Corp., Dream Office REIT, Dream Global REIT, Dream Industrial REIT, Atrium Mortgage Investment Corporation
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Dream Hard AssetAlternatives Trust
Pauline AlimchandaniChief Financial [email protected]
Dream Hard AssetAlternatives Trust
Kimberly LefeverSenior Manager, Investor [email protected]
Dream Hard AssetAlternatives Trust
Michael Cooper
Portfolio Manager
416-365-5145
Contact Information:
Dream Hard Asset Alternatives Trust
Jay JiangVice President, [email protected]
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Sussex CentreMississauga, ON
55 Norfolk St. SouthSimcoe, ON
Valhalla CentreToronto, ON
80 Whitehall Drive Markham, ON
2010 Winston Park Dr.Oakville, ON
219 Laurier Ave. WestOttawa, ON
West Metro CentreToronto, ON
49 Ontario StreetToronto, ON
460 Two Nations Fredericton Inc. LP
Fredericton, NB
10 Lower SpadinaToronto, ON
Commerce WestToronto, ON
Gateway Business CtreVictoria, BC
London City CentreLondon, ON
2810 Matheson Blvd.Mississauga, ON
Wedgewood PlazaHalifax, NS
Lansdowne Village Kamloops, BC
Tillsonburg Gateway, Tillsonburg, ON
6501 Mississauga Rd.Mississauga, ON
6531 Mississauga Rd.Mississauga, ON
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Description Two Class A office towers Two Class A, LEED Gold, office buildings
Three building Class A office complex
Two Class A office towers with excellent exposure along arterial highways.
Three office buildings, (one 9 storey and two 6 storey)
5 storey suburban office building with high visibility from the QEW.
7 storey, Class A office Building, with ground floor retail space
Total (Owned GLA)(square feet)
324,560 175,850 and 152,679 148,944, 79,288 and80,567
247,106 163,521 47,482 36,153
Location Centrally located in the heart of downtown London, Ontario
Mississauga, Ontario Mississauga, Ontario Located in a high visibility area on the Highway 427 corridor of the GTA.
Mississauga, Ontario along Highway 427
Mississauga, Ontario Located near Highway 427, 401, Gardiner and QEW
Oakville, Ontario Toronto, Ontario South core with direct views of Lake Ontario
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London City Centre Sussex Centre West Metro Corporate Centre
Commerce West Valhalla Executive Centre
2010 Winston Park Drive
10 Lower Spadina
Description 8 storey office building within the AirportCorporate Centre
Contemporary office building in East node of downtown Toronto, near public transit and amenities
10 building shopping centre with an array of national and local retailers and professional and medical offices
2 storey Class B office building in Victoriaslargest business park,.
Sobey’s anchored shopping centre, comprised of a single storey retail centre, a 10 pump gasoline station and a two tenant strip plaza.
14 storey Class B office building located steps from Parliament Hill.
Newly constructed three storey office building with easy access to the major arterial road.
Total (Owned) GLA
70,201 52,263 114,464 109,016 23,555 112,670 30,567
Location Mississauga, Ontario near Pearson International Airport and major arteries
East End Downtown Toronto, Ontario
Downtown Kamloops, BC Victoria BC, short drive from downtown Victoria and Victoria international airport.
Tillsonburg, Ontario Downtown Ottawa, Ontario
Fredericton, NB
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2810 Matheson Blvd 49 Ontario Street Lansdowne Village Gateway Business Centre
Tillsonburg Gateway 219 Laurier Ave West
460 Two Nations Crossing
Description 2 storey Class B building which serves as one of the main Royal bank branches in Simcoe Ontario
Suburban retail plaza with excellent frontage on a high traffic street providing great visibility.
2 storey Class A office building in the heart of Markham, close to Buttonville Airport and Highway 407 & 404
Several single storey office buildings located in Meadowvale,bungalow style buildings and an excess of green space
Several single storey office buildings located in Meadowvale, bungalow style buildings and an excess of green space
Total(Owned) GLA (square feet)
7,732 23,629 36,483 50,835 42,715
Location Simcoe, Ontario Halifax, Nova Scotia Markham, Ontario Mississauga, Ontario Mississauga, Ontario
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55 Norfolk St S. Wedgewood Plaza 80 Whitehall 6501-6523 Mississauga Road
6531 – 6559 Mississauga Road
Description 440,000 square feet of GLA, 32 acre site.
Five acre, 65,000 square foot retail development.
Mixed use site, 11 acre retail, 4.5 acre residential 2 phase 94,000 sq ft of GLA.
2 phase development 116,000 square feet of GLA, 12 acre site.
2 phase development, 160,000 square feet of GLA, 14 acre site.
Mixed Use site, 30 acres 20 of which is retail (2 phases, phase 1-145,000 sq. ft. of GLA, phase 2-75,000 GLA).
133,000 square feet of GLA, 11.5 acres.
Location Corner of Highway 48 and Major Mackenzie Drive East, Markham, Ontario.
Immediately south of the city of Pembroke, Ontario.
7959 Mcleod Road, Niagara Falls, Ontario
Intersection of two major roads in Cornwall,Ontario directly across from a Home Depot.
West side of Brantford, Ontario on the corner of a major arterial road.
16th Street East, Owen Sound, Ontario in the largest retail node in the East quadrant of city.
North Bay, Ontario on the main north south highway adjacent to a Canadian Tire.
Stage Zoning is ongoing. Major tenants: Winners, SportChek and Michaels
100% leased.
Income Producing
First phase is partially leased with construction in progress.
Fully zoned, first phase fully occupied with SportChek, Michaels, Winners and PetSmart.
2nd phase of development is substantially completed.
Fully zoned, first phase fully occupied with Michaels, PetSmart and Bed Bath and Beyond.
2nd phase is in lease up with construction expected to begin upon substantially leasing up the balance.
Retail is substantially zoned. Phase 1 is partially occupied with Michaels, Winners and Value Village.
Leasing for the balance continues with construction to start once finalized.
Fully zoned and will be anchored by fivenational mid box retailers. Leasing is substantially complete and construction has started with an expected completion date of summer 2015.
Total GLA Projected on Completion : 1.2 million square feet36
VillamarkMarkham, ON
Laurentian SquarePembroke, ON
Mcleod CentreNiagara Falls, ON
Brookdale SquareCornwall, ON
221 Henry StreetBrantford, ON
Heritage GroveOwen Sound, ON
890 Mckeown RoadNorth Bay, ON
Description Mixed use development, 165,000 square feet of GLA of residential space and 172,000 square feet of commercial space.
Eau Du Soleil: 1258 unit, two tower condominium development on prime waterfront at Lakeshore Blvd. West and Parklawn Road.
Lakeside: 96 acre site, 686 units, low-rise residential.
Location 158 Sterling Road in the Junction Triangle (south of Bloor St West and Dundas St West).
Lakeshore Blvd. West and Parklawn Road. Located in north Brampton close to Highway 410.
Stage Substantially rezoned. Construction to commence early 2015 with projected completion in 2020.
75.5% presold. (Dec. 31, 2014)
Construction started in October 2014 with first home closings expected in second quarter of 2015 and final closings projected for second quarter 2020.
50% presold (Dec 31, 2014)
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Castlepoint Empire (Eau du Soleil) Empire (Lakeside)
Total GLA Mill Woods Town Centre: 539,252
Office Building: 47,265
Frontenac Mall: 289,715.
Garden City Mall: 287,854
Description Retail mall located in the Mill Woods region. The LP is also the 100% owner of an office building in the same area.
Bayfield Retail (2009) LP is invested in Frontenac Mall in Kingston, Ontario and Garden City Mall in Winnipeg, Manitoba.
Location Mill Woods Region, Southeast of Edmonton, Alberta.
Frontenac Mall is a partially enclosed community centre inKingston, ON.
Garden City Mall is an enclosed mall located in Winnipeg, Manitoba.
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Bayfield Mill Woods LP Edmonton, AB
Bayfield Retail 2009 LPKingston, ON; Winnipeg, MB
The Bayfield LP Investments consist of an approximately 20% limited partnership interest in two separate L.P.’s with an investment value of approximately $15 million.
Bayfield Retail (2009) L.P. owns a 70% co-ownership interest in two shopping centres.
Bayfield Mill Woods LP (together with Bayfield Retail (2009) LP, owns approximately 60% of a shopping centre and 100% of an office building. RioCan REIT owns the balance of these shopping centres
Icon Waterloo, ON
Hilldale RetirementGardens, Thunder Bay, ON
Isabella Developments Inc, Thunder Bay, ON
MMS Enterprises (Empire)Oakville, Ontario
Fairmont Tremblant Resort, Mt Tremblant, QC
Empire Communities Wyndance, Uxbridge, ON
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InGastownVancouver, BC
St Clair Avenue WestToronto, ON
Forward Looking Information
This presentation may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is
based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could
cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and
uncertainties include, but are not limited to general and local economic and business conditions, employment levels, mortgage and interest rates
and regulations, regulatory risks, environmental risks, consumer confidence, the financial condition of tenants and borrowers, local real estate
conditions, adverse weather conditions and variability in wind conditions and solar irradiation, reliance on key clients, partners and personnel, the
uncertainties of acquisitions and new projects, inflation and competition. All forward looking information in this presentation speaks as of May 12,
2015. The Trust does not undertake to update any such forward looking information whether as a result of new information, future events or
otherwise. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on
SEDAR (www.sedar.com). These filings are also available at the Trust’s website at www.dreamalternatives.ca.
Non-IFRS Measures
The Trust’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this
presentation, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-IFRS financial measures
including adjusted funds available for distribution (“AFAD”), annualized AFAD return on net assets, net assets attributable to unitholders of the Trust,
debt-to-gross book value, adjusted net asset value per unit, and average yield on equity, as well as other measures discussed elsewhere in this
release. These non-IFRS measure are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures
presented by other issuers. The Trust has presented such non-IFRS measures as Management believes they are relevant measures of our underlying
operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, total comprehensive
income or cash flows generated from operating activities or comparable metrics determined in accordance with IFRS as indicators of the Trust’s
performance, liquidity, cash flow and profitability. For a full description of these measures and where applicable a reconciliation to the most
directly comparable measure calculated in accordance with IFRS please refer to the “Non-IFRS Measures” in the Trust’s Management’s Discussion
and Analysis for the year ended March 31, 2015. 40
