February 17, 2026 — Leads & Copy —
Dream Industrial Real Estate Investment Trust (DIR.UN-TSX) announced its financial results for the three months and year ended December 31, 2025. A conference call to discuss the results will be held on February 18, 2026, at 11:00 a.m. (ET).
According to Alexander Sannikov, President & Chief Executive Officer, Dream Industrial closed out 2025 with strong performance, achieving 5% FFO per Unit growth, while absorbing a 70 bps increase in the weighted average cost of debt. Sannikov said this resilience in earnings was driven by strong CP NOI growth of 6%, contributions from developments, growing ancillary revenue and accretive acquisitions. Leasing momentum picked up in the second half of 2025, leading to over 1 million square feet of development leasing and 10 million square feet transacted across the company’s wholly-owned and managed portfolio for the full year.
In 2025, Dream Industrial enhanced its access to capital, completing or firming up on approximately $850 million of dispositions at premiums to prior carrying values. The company’s balance sheet has strengthened, and its private capital partnerships business added further scale, positioning it well to continue delivering results to its unitholders.
Highlights from the financial results include:
- Diluted funds from operations (“FFO”) per Unit was $1.05 in 2025, a 4.9% increase compared to $1.00 in 2024. For the quarter, diluted FFO per Unit was $0.27, a 5.3% increase compared to $0.26 in Q4 2024.
- Comparative properties net operating income (“CP NOI”) (constant currency basis) increased by 5.7% to $404.9 million in 2025, compared to $383.0 million in 2024. For the quarter, CP NOI (constant currency basis) increased by 8.4% to $107.1 million, compared to $98.8 million in Q4 2024.
- In-place occupancy was 95.5% as at December 31, 2025 compared to 94.5% as at September 30, 2025. In-place and committed occupancy was 96.2% as at December 31, 2025 compared to 95.4% as at September 30, 2025.
- Leased over 1.2 million square feet across the Trust’s development projects during the year, including full lease-up of its 20-acre and 50-acre greenfield developments in Balzac, Alberta totalling 1 million square feet.
- Signed nearly 7.4 million square feet of new leases and renewals across the Trust’s wholly-owned portfolio at an average rental spread of 19.6% since the beginning of 2025 through January 31, 2026, driven by 35% spread in Ontario, 41% spread in Québec and 10% spread in Western Canada.
- Closed on approximately $610 million of acquisitions across the Trust’s wholly owned portfolio and private ventures during 2025 ($165 million at the Trust’s share), adding over 2 million square feet of GLA to the Trust’s owned and managed portfolio.
- Completed or substantially completed four wholly-owned development projects in 2025 at an expected average unlevered yield on cost of 6.3%, adding over 1.4 million square feet of GLA to the Trust’s portfolio.
- Net rental income was $385.0 million in 2025, a 8.3% increase compared to $355.4 million in 2024, driven by 9.5% in Ontario, 4.5% in Québec, 14.7% in Western Canada and 10.5% in Europe, excluding disposed investment properties. For the quarter, net rental income was $100.2 million, a 9.6% increase compared to $91.4 million in Q4 2024.
- Net income was $170.1 million in 2025, a decrease of $89.5 million compared to $259.6 million in 2024. For the quarter, net income was $30.2 million, compared to $109.6 million in Q4 2024.
- Total assets were $8.4 billion as at December 31, 2025, a 3.9% increase compared to $8.1 billion as at December 31, 2024.
The Trust disposed of a non-strategic asset located in Edmonton, Alberta, for $4.7 million during the quarter.
The Trust has agreed to sell a portfolio of 11 wholly-owned Canadian industrial assets (27 buildings) totaling 3.6 million square feet across Ontario, Québec and Alberta to the newly formed joint venture with CPP Investments. The DCI JV has agreed to acquire the Initial DCI Portfolio for a purchase price of $805 million on an unencumbered basis.
On February 5, 2026, the Trust closed the first tranche sale to the DCI JV for estimated net proceeds of $375 million, with this tranche comprising six industrial assets (22 buildings) totaling 1.9 million square feet. The Trust expects to close the second tranche comprising the remaining assets by the end of H1 2026.
During the quarter, the Trust closed on the previously announced acquisition of a 130,000 square foot asset located near Osnabrück in Germany, which included a rooftop solar system, for a purchase price of $12.9 million.
In December, the Trust acquired a 65,000 square foot asset located in Germany for a purchase price of $8.3 million. As previously disclosed, the DSI JV completed the acquisition of an asset in Calgary, Alberta, for a purchase price of $34.5 million ($3.4 million at DIR’s share) during the fourth quarter.
During the quarter, the Trust substantially completed its 389,000 square foot redevelopment project in the GTA East. During the quarter, the Trust signed or commenced occupancy on 0.5 million square feet of leases across its 20-acre and 50-acre Balzac developments in Calgary, Alberta.
The Trust continues to advance its solar program with the installation of rooftop solar panel installations across 33 projects in Canada, the Netherlands and Germany, representing 26 megawatts of renewal power generation. The Trust has deployed approximately $32 million into these projects achieving an estimated unlevered yield on cost of 12%.
The Trust received an issuer rating and senior unsecured debentures credit rating upgrade to BBB (high) with Stable trends, from BBB (mid), assigned by Morningstar DBRS (“DBRS”).
During the quarter, the Trust repaid its $450 million Series A Debentures by temporarily utilizing its unsecured revolving credit facility. Effective December 22, 2025, the Trust’s $200 million Series G Debentures issued in July 2025 were swapped to euros at an effective fixed interest rate of 3.726% per annum.
In conjunction with the announcement of the sale of the Initial DCI Portfolio to the DCI JV, the Trust suspended its Distribution Reinvestment and Unit Purchase Plan (the “DRIP”) effective as of the distribution payable on January 15, 2026 to unitholders of record as at December 31, 2025. The DRIP will remain suspended until further notice and distributions of the Trust will be paid only in cash going forward.
Since the announcement of the DCI JV and up to February 13, 2026, the Trust purchased for cancellation 2,444,964 REIT Units under its normal course issuer bid at a weighted average price of $13.08 per REIT Unit for a gross amount of $32.0 million.
Senior management will host a conference call to discuss the financial results on Wednesday, February 18, 2026, at 11:00 a.m. (ET).
Information appearing in this press release is a select summary of financial results. The consolidated financial statements and management’s discussion and analysis for the Trust will be available at www.dreamindustrialreit.ca and on www.sedarplus.ca.
Dream Industrial REIT is an owner, manager and operator of a global portfolio of well-located, diversified industrial properties. As at December 31, 2025, the REIT has an interest in and manages a portfolio which comprises 342 industrial assets (555 buildings) totaling approximately 73.6 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S.
Source: Dream Industrial REIT
