Thank you, Operator, and welcome to Dream Unlimited's first quarter conference call. Today, as always, I'm with Meaghan Peloso, and I'd like to call on her to speak to the financials, and I'll make some comments afterwards.

Thanks, Michael. Good morning, everyone.

Overall, our financial results for the quarter were very much in line with our expectations. In the period, we incurred a net loss of $4.8 million, which was an improvement from a loss of $8.1 million in the prior year.

Due to seasonality, Western Canada was not a large contributor as most of the income from the division will occur in the back half of the year. Nonetheless, margin from our core divisions—being asset management, income properties, and Western Canada—was $19.6 million in the quarter, which is an increase of 12% relative to prior year.

At a segmented level, in the first quarter, our asset management division generated revenue and net margin of $15.6 million and $12.2 million respectively, up significantly from $13.0 million and $9.3 million in the prior period. The increase versus prior year was driven by continued AUM growth and higher incentive fee income in 2026.

Western Canada development generated net margin of $0.4 million in the first quarter, down modestly from prior year due to the specific product mix and volume sold in each period. Since our last reporting in February, we've secured a further $32 million in presales commitments, which is strong activity for the period.

Based on presales commitments secured to date, we've locked in revenue of $138.9 million for land sales to be recognized in 2026, which is in addition to the $13.3 million of revenue recognized already in the first quarter. In the first quarter, our income properties portfolio generated NOI of $7.0 million, up from $6.6 million in the prior year, largely driven by lease-up activity across our apartment portfolio.

We currently have 950 apartment units under construction that will be completed now through the end of 2027 and expect to start at least another 200 units later this year, all of which will continue to support steady growth for the division. Our other investments segment generated $6.9 million of negative net margin in the first quarter, an improvement compared to $8.7 million of negative net margin in the comparative period.

We expect our development fee income in this segment to increase over time as new projects come online, but for 2026 specifically, don't anticipate earnings from this segment as we have minimal inventory available for sale. Over the course of and subsequent to the quarter, we've spent $7.7 million in share repurchases.

Now lastly, as of March 31st, we had ample liquidity of $342 million. On a consolidated basis, the company had about $450 million of current debt.

Of that amount, about $100 million rolls automatically on an annual basis, and we're pretty active on another $165 million, which were on track to be completed over the next couple of quarters. Of the remaining maturities, a significant balance relates to a CMHC-insured loan that doesn't mature until the fourth quarter of 2027, which will be renewed or refinanced in normal course, but closer to the maturity.

Overall, we feel very well-positioned on our near-term maturities, and we'll provide further updates as we report this year. With that, I'll turn the call back over to you, Michael.

Thanks, Meaghan. The first quarter is of not a lot of relevance in the history of our company.

In fact, I'd bet the fourth quarter produces maybe 10 or more times the profit, historically. Today what I wanted to talk about was some of the massive changes we're seeing since the beginning of the year.

There's really two themes: one is government, government, government, and the other one is tailwinds starting to sort of assemble. In housing, we're seeing tremendous involvement from the federal government, and most of it is very positive.

I think it's important because it is affecting a lot of our business, number one, and again, much to the better. I'd also say it is probably quicker to get money into housing through the provinces, cities, and developers than it is to do major projects, and I think that we're going to see a lot of benefit in our economy from what the government has already undertaken.

I'll get into that in a minute. Then as far as tailwinds go, we're living in a time of tremendous chaos, but I think we've adjusted pretty well.

Assuming this amount of chaos, and not more, we're seeing a lot of positive things happening. Firstly, with the government, in housing, they've reduced HST in many situations.

In Ontario, between the province and the Feds, they're putting up $8.8 billion to pay for infrastructure that will reduce development charges by half. In both of those cases, the final legislation isn't complete, we're expecting it soon, but you can see already they're having benefits with the reduced HST.

The Build Ontario Fund is now become quite active, and it is putting money into the system. That's been making a difference, I'll get into that in a second.

Build Canada housing is also being very active, they're working a lot with not-for-profits, cities, and provinces, but they're also benefiting private developers. Just yesterday, they announced in Alberta that the federal government and Alberta had gotten together to create grants for affordable housing, and [ACPL?]

financing is one that's been around, but it's very, very positive. That's just a small amount, but I would say that with reduced HST, we're seeing people starting to buy condos.

There's been one that's been funded, in part, by the Build Ontario Fund. There's been another group that is going to buy, I think, $500 million of condos.

Both groups will benefit from a 13% refund of HST, plentiful financing available from banks, and I'm just curious how 3,300 condominiums are going to be purchased, and what that's going to do to pricing. Basically, the math works pretty well.

Rents are a little bit lower, but they're still pretty good. You can borrow maybe 65% debt from banks, that leaves 35%, you get 13% back, and you can get some type of return on your capital in an initial instance, and then I think people are basically thinking if they can buy for $750 or $800 a foot, they can sell within 5 years for $1,000, and that'll generate a 20% return.

Why that's important is it's certainly putting a floor on the value of condominiums, and I think we're going to see a lot more demand from those two groups plus others saying I think it's not a bad investment at these prices. I think that's going to be very positive for condos.

Another thing that's happening is we saw that the US government approved a pipeline from Canada. It looks like Ottawa is getting close with Alberta on an MOU, and it looks like the Trans Mountain pipeline will probably be increased.

These are not insignificant. Today, Canada will sell $600 million US of oil, and they'll do it every day.

It's a massive amount of money. Canada produces 6 million barrels a day of oil equivalents.

That's up quite a bit from 10 years ago. The US has done the best, they're at 20 to 22 million barrels, that's a massive amount.

Saudi Arabia and Russia are both between 10 and 11, Canada's at 6, and with these pipelines, we could easily get beyond 8. Canada's going to be approaching Russia and Saudi Arabia in terms of the revenue generated from oil and gas.

This is having a massive effect on the Alberta budget. It was going to be a negative $9 billion.

Now, we're hearing numbers, if this continues, could be as high as $10 to $16 billion. That's a swing of about $6,000 per person in Alberta, which is pretty massive.

The Fed is also doing better. We're hearing about defense, and I think that it's probably not a bad idea to take the federal government at their word that they're going to pump money into industries to encourage growth.

I think we're going to see it, and I think we're seeing it at housing first, but we're going to see it everywhere. I also think that with the Prime Minister doing a road show around the world promoting Canada, it's had a massive change in Canada's appeal for foreign investors.

We're seeing that in our asset management business, but I think that's going to have a significant effect as well. Another area is the federal government's requiring people to go back to work 4 days a week.

We've been told that actually means they need to lease a lot of space. That'll be good for both Zibi and Dream Office, although it may take at least a year before we get the outcomes.

We have three major groups that we've been talking about for years, and I hope that for investors it's becoming clear. Our Western Canadian business continues to be very strong and growing, our income property is getting more profitable every year, and our asset management business is growing by every metric every year as well.

Some eight 80-something percent of our business is strong and getting stronger, which I think is very, very positive. In Western Canada, in Saskatoon, we're hearing things like the trades are the busiest they've been in 10 years, land prices are at all-time highs.

The city is saying that over the next 10 years, they're expecting growth in population of 100,000 people in the city of Saskatoon, whereas, I think, just under 70,000 in the last 10 years. Our base numbers using that is that if that were true, we would use up twice the amount of land that we're planning on using, and that would be extremely profitable.

That's very exciting about Saskatoon. Regina's similar.

Alberta's seen quite strong in our business area. Actually, I don't think the benefits of the higher revenue from oil have gone through the economy yet, ironically Saskatoon seems to be a bit stronger now than Alberta, but both are very positive.

In asset management, we have lots of activity going on in the platform. We've been successful starting new ventures, we've got significant commitments, I think Meaghan referred to $5 billion of dry powder, and that includes Dream Industrial after the sale to CPP.

We've been very active on industrial across the board in Europe and in Canada. In apartments, because of the declining population, rents have been a little bit lower, there's also been a lot of condos added.

That's become a little bit less certain, that's been a little bit harder to deploy capital, but we expect to make progress throughout the balance of the year. Asset management looks really strong.

This quarter, our income properties went through $1 billion, which was pretty exciting. Western Canada properties are doing well.

We've finished our third apartment, we have two townhouse sites, we got two or three single-family rental sites. It's certainly adding up, but we've just hit stabilization.

I actually think we're 100% leased at Brighton Village Rental 3. We're putting together our financing.

It looks like when you compare our financing package to what we approved to build the property, we're hitting every number or doing better, so that's pretty exciting. BVR 4 is now topped off and it will be occupying by year-end.

BVR 5, I think, is just started to come out of the ground. BVR 6 will start by year-end, we're really getting it down into an assembly line.

We're very pleased with that. In addition, we're expecting that [Odenak?]

in Ottawa, which is a building we own a third of, it will start to occupy by year-end. The buildings that we built, they're pretty much fully leased and our pipeline is really started to work for us, I think this year and next year are going to be very significant years.

In fact, in 2027, our first building in Alpine Park will be finished and leasing, and Block 204 in Ottawa, which is about 200 units, a little more than 200 units, will also be complete, we're really going to see some growth in our apartments on the properties we own directly in Dream. Our Ontario apartments are filling up and occupancy's pretty good.

We're seeing less incentives, but the rents are still much lower than we would have liked. The biggest asset we own within our income property division is the Distillery District, and it continues to do very well and it looks like it has quite good prospects.

We're pretty pleased with Western Canada, asset management, and income properties. All of them look like they're going to do well this year and do better in future years.

I would add that it was just announced yesterday that a 350-unit building in Alpine Park in Calgary that we want to build has been conditionally approved for a $31 million grant that would help us get that off the ground. It's not actually quite enough considering the affordable, but if we can put it together with another program, we're going to have a really great building to build that will have reduced risk because of the lower rents, we're looking forward to getting that all together this year and starting next year.

In our other category, we're quite pleased that it's stable now. We saw a 240 basis point increase in occupancy and we're seeing good signs that it should stay around here or improve for the balance of the year.

Zibi office, as I mentioned, is likely to benefit from the federal need for space in Ottawa. Impact Trust is one that we spent a lot of time on.

We think it's got incredible assets. 49 Ontario is ahead of schedule, it's under budget, we're building without HST, we're not paying development charges, and our construction costs are the best we've had in years.

We're going to end up with an excellent building across from the subway at a very low cost base, and it works at today's rents. With the policy on immigration, I think we probably got another 4 or 5 quarters before we start to see what I think's going to be between 0.5% and 1% population growth.

I think that's going to make a really big difference on the rents in Toronto, and I think 49 Ontario could be a real winner. We're working hard on Quayside.

Impact owns 25% of Quayside. I don't know if we made it clear, but Quayside is a joint venture with the City of Toronto and Waterfront Toronto.

We're building 1,200 apartment units, all market, and the city and Waterfront Toronto are working on 500 affordable units that they will own. It's a joint venture in terms of we're the developer with [Setter Court?]

, but we're doing them both together. The city and Waterfront Toronto have been amazing.

There's been so many challenges, but we're getting through them as teammates. We're working together on debt with the Feds, and I think that's going to be an amazing asset.

Then we got West Don Lands, we got some of the Zibi assets. Impact Trust has great assets.

We have too much debt and we've got a lot of development, but we're really seeing the development go through the system and come out the other end. I think it's going to be an excellent portfolio, but it's just the wrong time now and Dream has continued to support Impact.

We're very confident that the money we're lending is well-secured and we will continue doing that provided the conditions remain the same or better. Overall, I actually feel that we have better days ahead.

We set our assumptions for our budget in October, maybe November, that's more than 6 months ago. We've got our first quarter results, but we also have all kinds of other progress reports and it looks like things are going as we had hoped, and the pre-development or interest from builders for 2027 and beyond are looking better than we hoped.

We're pretty pleased with where we sit in spite of the chaos, things are looking better and better. With that, Operator, we'd be happy to answer questions.

Thank you. Good morning, everyone.

Thank you very much for the detailed business update and and re or and review, and glad to say see here things are going going well. Michael, you you mentioned talked a lot about Western Canada.

You're seeing you're seeing good interest from from builders, and I think your outlook for 2027 is pretty constructive. Just curious on the on the quarter and on what you expect for 2026, with Coopertown, up and running now, is it is is it are you incurring lot I mean recognizing lot sales on that project and is it having an impact on the average sale price?

I just saw that, the average lot sale price did did sneak down a little bit in in Q1.

Hi, Sam. I would say the Coopertown revenue would be later in the year.

There wasn't anything specific to call out on the average sale price, it's really just based on the specifics of the lot and phase that got sold in the period, but on the overall, there isn't anything odd or irregular that we're expecting from the sales price when we look at the entire year.

Sam, it's good. Firstly, with Western Canada, initially we always meant that as land development.

That business is going well, but now we're developing more and more income properties and it's adding up to a lot, and it is Western Canada exposure, I think there's going to be very strong population growth. While the whole country is negative, Saskatoon and Alberta are still having positive growth.

I think the apartments we're building are needed, I think we're going to see our exposure to Western Canada is going to be both in income properties and in our land development business. What has happened is our Holmwood development, the approvals have been delayed, we're going to miss selling single-family lots in that area.

In fact, part of that is because in working with the city and the 3,400-student school, we've been trying to accommodate more public transportation, which will be better in the long term, but we're going to miss some sales because of government approvals in Saskatoon. From our own numbers, we're able to make it up elsewhere for the most part.

Western Canada will be a little bit light this year, but it's all because of timing and we'll get it back next year.

That is good color, because I did notice the sort of lot commitments, it's early in the year still, but the commitments are a little bit down from where they were a year ago, and so I guess that would explain it. Michael, you mentioned a 350-unit rental property at Alpine Park.

Is that all in one building, in one sort of tower? That would be a large asset on that site.

This is part of our City Centre and Alpine Park is an incredible, walkable community by one of the leaders of the Urban Modernism, and what we're doing is we're having retail at grade and apartments above it. It's actually Block 1, 2, and 3, it's three buildings.

Because of the parking and how integrated it is, they're going to go more or less at the same time.

Got it. That would be owned by Dream?

That one. Okay.

Interesting. That's great to see.

Just over on asset management, the incentive fees recognized in Q1, just to be clear, I assume none of it was from the DCI joint venture. If you can just confirm that, and then I guess just what sort of things did contribute to the incentive fees in Q1?

The incentive fee that was recognized in Q1 did not relate to the joint venture. All of that incentive fee was picked up in the fourth quarter of last year.

There is some normal course dispositions from the industrial REIT that took place that was the biggest driver for that fee in the period.

Okay. All right.

Okay. I'll let someone else jump in.

Thanks very much.

Thank you.

Thanks, and good morning. Michael, in particular, one of the first things you spoke about is the condo market and the investors that are coming in to purchase condos is something that's important.

Can you maybe expand on how you feel that impacts Dream and why you think that's important for Dream?

I think it's going to bring some stability to the condo market and get rid of the excess supply, I think that's good. I think really why it's happening is because there's a reasonable economic case to be buying condos and renting them out.

I think that means there may be pretty big demand, and hopefully the condo market will become in better balance. That'll clear things out, whether somebody built apartments in the future or condos, the market will be more stable.

For us, I don't think it's a really big deal right now, but I think that it does suggest that the balance of supply and demand in Toronto is likely to get better on the for-sale side.

Thanks. Maybe just following up on the last point you spoke with Sam as far as fees and the promotes aren't on this Dream Industrial joint venture transaction or the new funds, you spoke about how some of that proceeds would be used for share buybacks.

Has there been any change to what your target or range is maybe for the year, how you're looking at buying back shares?

I think we said we were looking at about a million shares or $18 million, $20 million, depending on the share price, although it's been pretty much the same for most of my career.

Okay. Thank you.

Thank you, Sam and Mark, for your intense interest in the company, and hopefully people who didn't have to ask a question are also interested. Meaghan and I'll be available if anybody has any questions after the call, please feel free to contact us.

Thank you very much.