Good morning, ladies and gentlemen. Welcome to the Dream Office REIT year-end conference call for Friday, February 19th, 2021. During this call, management of Dream Office REIT may make statements containing 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 Dream Office REIT's control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is contained in Dream Office REIT's filings with securities regulators, including its latest annual information form, and MD&A. These filings are also available on Dream Office REIT's website at www.dreamofficereit.ca. Later in the presentation, we will have a question and answer session. To queue up for your question, please press star one on your telephone keypad. Your host for today will be Mr. Michael Cooper, Chair and CEO of Dream Office REIT. Mr. Cooper, please go ahead. Thank you, operator, good morning to everybody. Today I'm with Gord Wadley, the Chief Operating Officer of Dream Office, and Jay Jiang, the Chief Financial Officer. This has been a challenging time to run any business, and running office buildings in this environment has been really peculiar. We're coming up to 12 months with very few people working out of offices and a tremendous amount of discussions over how people will work in the future. We will not answer that today. Today, we're going to focus on the assets that we own and what we're doing with them. I would say the following. We spent five years repositioning the portfolio so that we would be 85% assets in downtown Toronto. We're strong believers in the future of the city of Toronto. The city of Toronto was doing better than it ever did the day before the pandemic hit. We believe that Toronto will continue to do well after the pandemic is manageable. With regards to the buildings that we own, buildings of this quality and location over the last 150 years or so have done exceedingly well and we expect that they will do very well in the future. Dream Office is 85% downtown Toronto office buildings and 15% outside of downtown Toronto. Outside of downtown Toronto includes Sussex Centre, which is a great building that's been doing very well, and 2200 Eglinton, which is adjacent to a new LRT subway stop that will be opening later this year. We're getting that land rezoned. It's 50 acres. We think we'll end up with maybe 2.5 million square feet of extra density. At CAD 70 a foot, that's about CAD 175 million, which would be about CAD 4 a share of additional value. We're also an owner of Dream Industrial REIT stock, which is worth about CAD 340 million, which is another six. We're currently trading at below CAD 20, and we have CAD 10 a share in our Dream Industrial REIT stock, and likely we'll achieve that increment value this year at 2200 Eglinton. That leaves CAD 10 a share on all of our office buildings. We're very excited at this point to be able to announce that we've completed our Normal Course Issuer Bid in January. Looking forward, we'll be using our capital to improve our buildings and buy back stock. I'd like to turn it over to Gord to provide an update on the operations. After that, Jay will speak about the financials, and then we'd be happy to answer your questions. Gord? Well, thanks, Michael, and good morning. First and foremost, I hope everyone and your families are all staying well. It's great to get a chance to connect with you all today. Ultimately, prior to the pandemic, the Toronto leasing market was a very favorable arena for not just our company, but all landlords in general. Vacancy was sub 2%, and rents were at record highs on both new leases and renewals. Demand for office space from the tech, finance, and professional services sector provided tremendous tailwinds for commercial owners in downtown Toronto. The pandemic has resulted in office vacancy for Toronto to increase to over 7.5% downtown, a level not seen since the Great Financial Crisis. New leasing has slowed a bit, but this is a direct result of the various states of emergency being mandated. Largely as a result of these actions, many tenants are understandably delaying decisions on their future real estate strategy. Despite all of this, further despite what you read in the news and various social media hot takes, it was an active year of leasing for Dream Office. Of equal importance, rents held up very well on the over 500,000 sq ft of deals we completed in 2020. We continue to see real positive momentum and some increasing activity as we get to the spring. During the pandemic and closing out 2020, we completed approximately 65 deals for over 500,000 ft. For some additional context, we did three transactions over 25,000 ft and one at approximately 190,000 sq ft. From our perspective, deals of scale are getting done and companies are making commitments. Our rates have been very resilient, it's a testament to the quality and location of the buildings we own, the efforts of our operating team, and ultimately staying true to our asset and capital strategy. Net rents have continued to be strong and in line with our business plan at pre-pandemic levels. We've also seen steady growth in the NER performance of deals being completed, where on average we're 21% over budget on an aggregate basis. Like most of our peers, we've had some construction delays and challenges that we're managing through on our Bay Street Collection. These are due solely to the mandated shutdowns on interior construction, we're targeting substantial completion by the end of this summer. The feedback from tenants and brokers alike has been tremendous. We really look forward to unveiling it all to you all soon, and hopefully, we'll get a chance to walk you through in person. The optimism on our Bay Street Collection is further supported by the 12 deals that we did in that specific project at strong rents in many areas, 30% higher than budgeted. These are a new class of boutique assets that don't compete with large towers. They're low rise, walkable, both small private floor plates, element-based building systems, and showcase a level of luxury finishes that are unique to the market. In the current pipeline, we're actively negotiating and trading paper on 20 deals totaling over 215,000 ft. There's a lot of press and focus around shadow vacancy in the state of the sublease market in Toronto. This has not been an issue or something we're seeing in the REIT. Currently, in our portfolio, there's only 103,000 sq ft of sublet space available. Put differently, that's less than 1.8% of our portfolio nationally. In other markets, Saskatchewan and Calgary, occupancy is down a bit, due in large part to a few known vacates and one insolvency restructure. Tours and activities in these markets have, however, picked up, and that's due in large part to their phase of the reopening. We very recently received and are responding to three RFPs totaling 55,000 sq ft. To note, we've completed a few key deals that haven't taken occupancy yet in Saskatchewan. One being a major national bank for 15,000 sq ft and a large tech firm who are expanding significantly. Our current and committed occupancy is 94.5% in Toronto and approximately 72% in other markets. Collections continue to be strong at 97% through the year, with average WALT in the portfolio at almost five and a half years. Early in the pandemic, we dedicated team members, reallocated resources, and set our goals to ensure we stay in constant communication with our tenants. This was really to be a resource, a sounding board, and ultimately be a partner to help facilitate their occupancy decisions. We've had some great success with this approach on direct renewals without a broker. This also helps us provide guidance on government subsidies, and most importantly, in turn, be an active and empathetic partner on making payment arrangements which support our collection ratios. Operationally and of great importance, I also want to touch briefly on some of our ESG initiatives here at Dream. While Dream has always been an organization that's emphasized the importance of being a good corporate citizen, we are making it an absolute priority to increase transparency on ESG. More than ever, investors want to know how businesses are incorporating these principles into their operations. Our team recently published a 2019 sustainability report. In it, we highlight some of our accomplishments, which include our reductions in energy and waste water consumption, greenhouse gas emissions, as well as a number of highlights on employee development and the overall diversity of our workforce. We also discuss our five-year plan and targets for sustainability, which we think are a bit ambitious but achievable. I would encourage everyone who is listening or who is interested to go see our ESG program and our sustainability report on our website. Every time you go and click it open, we make a donation to a worthy charity. However, our work doesn't stop there. We're in the process of implementing many initiatives across the business. We built ESG into our corporate goals for the years ahead, ensuring we remain very accountable to the execution and ultimately that our progress is measurable. Our primary goal this year is to submit for the GRESB assessment, the leading sustainability benchmark in the real estate industry. We think this will be a valuable communication tool for our investors. We are also continuing to work towards additional green building certifications, well health and safety certifications, and achieving BOMA BEST and LEED in a number of our buildings. Internally, we established a diversity, inclusion, and advancement team to ensure that our entire workforce has equal opportunities to succeed, and also that our trades, contractors, and service providers align and share their inclusivity policies. This is to ensure everyone we deal with is doing their part to be leaders in inclusion. We also just kicked off our sustainability working groups internally, which will focus on green property operations, sustainability reporting, communication, and both employee and tenant engagement. Overall, our goal is to be recognized as one of the top sustainable REITs in Canada, and we look forward to sharing our progress over the coming quarters. Ultimately, I feel good about our portfolio. The quality of improvements we've made to our assets at both the operating and aesthetic level put us in a very strong position as we come through COVID. Bricks and mortar aside, I couldn't be more pleased with how the team has responded this past year. Their efforts and dedication to not only our company but to our clients is what I'm most proud of. At the end of the day, it's this combination of having irreplaceable assets coupled with the quality, high-character team of people we have operating and leasing those assets that gives me the greatest confidence going forward into 2021. Thank you, everyone, and I'll turn it over to Jay. Great. Thank you, Gord. We're pleased to report our fourth quarter and year-end results for 2020. The materials are fairly comprehensive, so we will try to avoid repeating the contents of the press release or MD&A. Instead, I will speak to our financial position, capital allocation, and our internal budget for 2021. We are happy to answer any questions on the materials afterwards. Despite being in a year-long public health crisis, we are pleased with the resiliency that our business has shown, allowing us to support our tenants and employees through COVID. We entered the pandemic having substantially completed our strategic plan to transform the business into a pure play downtown Toronto office REIT. We built a well-capitalized balance sheet, which has resulted in a much safer and less volatile business. We feel the strategy works out well when times are good or bad. We reported net asset value per unit of CAD 28.69, which implies an annualized total return of 11%, including distributions over 2020. We stated since February of 2016 that NAV was our focus metric, and it has now increased for 15 quarters in a row. Our year-end NAV includes independent appraisals for CAD 778 million of property, or 31% of our portfolio prepared this year. Our units reached a high of CAD 36 last March and dropped to CAD 15 within a month. The average unit price was about CAD 20 from March to year-end, or roughly a 30% discount between the trading price and where we think is the intrinsic value. Our IFRS carrying value implies a 4.8% cap rate, or implies a CAD 600 per square foot for downtown Toronto, and therefore less than CAD 200 per square foot for the rest of the portfolio. We have been monitoring private market transactions since COVID, which all fall in between 650-1,000 per square feet. In almost all instances, we like the quality and the location of our portfolio better. At this morning's trading price of roughly CAD 19.30, based on the 4.8% cap rate for Downtown Toronto, which we noted above we feel comfortable with based on the private market comps. The market is distributing either stabilized net rents in the low 20s net or structural vacancies in the low 80s. Please note that our in-place rents are currently about CAD 25, and as Gord noted, we did our leases during COVID at CAD 38 net. We feel there is a good margin of safety. Based on replacement costs to develop today, net rents need to be in between CAD 40 to CAD 50 net, and we believe there will be long-term demand for commercial and residential space in the downtown core. Toronto is well-positioned to continue to thrive as the economic center in Canada, supported by a strong immigration forecast and continuing expansion to multinational organizations. Obviously, COVID has been a real distraction. Currently, real estate is very thematic, and the narrative is unfavorable for office REITs, with lots of opinion about work from home versus return to the office. We feel that while it's too early to tell how tenants will behave post-pandemic, businesses will continue to need space to collaborate, meet clients, drive sales, and provide a separation between work and home. As the city opens back up and everything which makes Toronto a world-class city returns, the people will follow. For many businesses, providing a desirable workplace will be critical in talent recruitment and retention. With all that in consideration, we believe repurchasing our own units represent the best long-term investment for every dollar. We have maximized our Normal Course Issuer Bid program and repurchased 5.8 million units or 9.4% of our own company at an average price of CAD 19.08. After the buybacks, our balance sheet remains in very good shape. We are at 41% debt to gross book value, have approximately CAD 150 million of liquidity, and an unencumbered asset pool of CAD 250 million with no covenant restrictions. Over the next few years, we do not have a lot of capital commitments, so our balance sheet remains flexible. We have approximately CAD 110 million of debt to refinance in 2021 with a weighted average expiry rate of 4.88%. We think we will be able to obtain higher net refinancing proceeds and lower the interest rate by about 150 basis points on secured financing based on today's rates. We are also continuing to move forward with applications for our three major mixed-use development projects, 250 Dundas, 2200 Eglinton, and 212 320 King. In 2020, we received council zoning approval at 250 Dundas, for which we got appraisal and then recognized a CAD 43 million fair value gain in the first quarter. All the projects are still in pre-development for 2021. We anticipate approximately CAD 12 million of soft costs to be spent. We think the capital is a great return on investment without adding a lot of risk as we continue to elevate the highest and best use of each site. Gord has already talked about our commitment to the Dream Collection on Bay Street. Once the construction stoppage is lifted, we will resume our work and anticipate substantial completion in 2021. We spent CAD 20 million to date, which implies CAD 30 million left to spend this year. While we manage our business and financial planning with a very long-term view, we acknowledge that everyone on this call want annual guidance for 2021. We will share our internal budget. I would proceed with the obvious caveat that budgeting is challenging because we still do not know the extent or duration of the pandemic, when the economy will reopen, how it will reopen, or how tenants will behave when that happens. We anticipate that annual comparative property general liability to be flat to down slightly for 2021, as the in-place occupancy will likely be lower in the first two quarters of 2021 as a result of state of emergency measures limiting physical tours and leases to be signed. Many of our prospective tenants have identified a space but need to wait to finalize the decisions on their lease. We believe many deals in our pipeline will be signed by the second half of 2021, and in-place and committed occupancy for the portfolio will trend up and end 2021 relatively in line with where we are at today. This will position us well for 2022. Our development obligation at 357 Bay in downtown Toronto was completed this quarter, and we will commence rent payments in November. We will realize the full year's rent in 2021. In addition, we anticipate 1,900 Sherwood Place in Regina to be completed on time and potentially exceeding our budget of 8.0% development yield by the second half of the year. Both of these projects will contribute to net operating income, but not comparable property NOI. We anticipate total properties NOI to be up in 2021. Using rounded numbers, we budget approximately CAD 12 million of general and administrative expenses, relatively flat interest expense, CAD 2.5 million increase in FFO from our share of Dream Industrial REIT units based on guidance of 5% FFO NOI growth and over 10% per unit FFO growth that their management team provided on Wednesday. As a side note, based on current share price, our holdings in Dream Industrial REIT are about a third of our market cap. In our budget, we assume no acquisitions or dispositions in the base case. However, we will be marketing certain assets in Western Canada and our loan asset in Overland Park, U.S.A. If we add up all of the assumptions I just spoke to, on a leverage-neutral basis, our FFO per year a unit works out to roughly CAD 1.60 per unit for 2021, or about a 4% increase. As mentioned before, we manage our business with a longer-term view. We look forward to business as usual in Dream Office, and we will update you all accordingly over the course of the year. I'll now turn the call back to the moderator. Thank you. We will now begin our question and answer session. If you have a question, please press star then one on your touch-tone phone. If you're using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, that is star then one with your question. I see we have our first question. It comes from Mark Rothschild with Canaccord. Please go ahead, sir. Thanks. Good morning. It's Mark. Thanks. Maybe just expanding on your conversation about the sublease market. There's been definitely notable from brokerage reports about a huge increase in amount of available sublease space. It seems like no change, really, as far as your portfolio. Can you give some additional information on why you think that is, what you're seeing overall in the market? Ultimately, do you expect that to have an impact on rental rates? Yeah. It's Gordon. Gordon. That's a great question. It's a great question. In our portfolio, we're not seeing much, if any, sublease availability. The reason being is a lot of the subleases you're hearing and reading in publications across the market are large users. They're large contiguous pockets of sublease availability. Our average user size is a lot smaller. If we have a company that subleases space, the impact to our portfolio isn't as apparent to some of the other landlords. We've got a lot of smaller users that qualify for the government subsidies. We've made it a real point to contact and discuss with each one of our tenants what their occupancy plans are to get ahead of them rushing to make a sublease decision. It's a combination of those factors, and I just think in general, given the size of our average tenant base, given the size of our buildings, we're just in a better position to weather the exposure of having large tenants sublease space in the market. Yes. Thank you. In 2020, Dream Office sold some units of Dream Industrial, clearly some of that money, if not all of it, went to buy back units in Dream Office. Can you talk maybe more strategically how you view the Dream Industrial position? Is it something that you would do from time to time if you see better value in one versus the other? Sure, Mark. I think that we're finding that the Dream Industrial units are very valuable, and it's a real great source of cash flow. It's free of CapEx, and we expect that Industrial REIT will continue to perform well. It's a great asset to own. We did sell some in the fall to buy back stock, and as time goes by, we'll probably sell some more from time to time, but nothing dramatic. Okay, great. Maybe just one last question for Jay. Maybe you want to follow up after privately with some of this here. If you can just give some additional detail on when some of the new leases that you spoke about in your disclosure on the call will take effect, in particular, maybe at 1110 and Saskatoon Square. Sure. No problem. Typically, you see a lag about six to eight months between when the lease is signed to when they take effect. For larger leases, they might take effect longer than one year. For your question on other markets, I would anticipate most of that to hit in-place occupancy in the second half, probably a lot of that in the third quarter. Keep in mind, Sherwood Place goes online in the third quarter as well, so you will see an occupancy lift. Okay, great. Thank you so much. Thank you. We have our next question from Sam Damiani with TD Securities. Thanks. Good morning, everyone. Just on the occupancy drop in-place occupancy drop in Q4, it was a pretty significant drop. Was that fully expected, or were there any surprises there? Gord? Yeah, I can take that question. Good question, Sam. It was fully expected. We've had this asset strategy over the better part of the last 18 months where we had a lot of small tenants on small floor plates coming off really low expiry rents. There's a lot more appeal, especially post-COVID, to have dedicated small floors for users. We've been working through that strategy of strategic vacates and getting full floor. What I would say too, Sam, is a lot of the buildings where you've seen a drop in the occupancy, these are small buildings. These are buildings that are 40,000 sq ft. The average floor plate on some of these buildings is 3,000 sq ft. If we do lose a half-floor tenant, it shows a drop in the occupancy, but really it's by design. We're just trying to work through some of those lower expiring rents and set ourselves up for success, having these smaller full floor plates to take out to the market. Thank you. That's helpful. Just bigger picture, looking at the occupancy drop during the year last year, how much of that would've been unexpected versus just slower demand and maybe the physical difficulty and longer time to get deals done during the economic lockdowns? Just trying to figure out what is going on and, if things aren't going to change from the pandemic in the near term, should we expect some continued erosion in occupancy as a potential? Yeah. Maybe I'll jump in here from a budgeting perspective. If you notice that the retention, and renewal rates are fairly strong, I would say that is generally in line with budget. What's really hurt us is the two state of emergencies that were enacted, really hurt the new leasing momentum in terms of the physical tours and ability for tenants to sign leases. What happens is you just have a bigger pipeline. I'd say that probably without COVID, if we were hitting our budget, our in-place occupancy would still be in the high 90s, and that you wouldn't really see the lag and the churn. Nevertheless, I think it gives us the opportunity, as Gord mentioned, in some of these smaller buildings, to take back contiguous floors to turn it into turnkey space. We did a couple test cases as early as 2019, where we took the rents up from CAD 18, CAD 19, all the way into the CAD 40s. We're still seeing strong rents and good demand for the space. They just take longer. Okay. Just finally, on the Bay Street properties, I think there's a handful, maybe half a dozen buildings where the WALT has gone under two and a half years and some of them have dropped vacancy by over 500 basis points in the fourth quarter. Gord, you kind of talked about this in terms of some of this being by design, strategic vacates and whatnot. As 2021 progresses and you reach completion on these redevelopments, how should we expect those buildings to perform in terms of reported occupancy and WALTs over the course of the year? Great question, Sam. We have occupancy where we are actively negotiating on a number of deals on Bay Street Collection, and we have occupancy rising towards the end of this year. Probably one of the biggest outliers on that building where you have seen the biggest drop in quarter-over-quarter occupancy has been 366 Bay. That is a building where we are taking the same approach as 357 Bay. There is tremendous potential for this building. It is a small building that we currently have measured at about 38,000 sq ft. If that is a building we go to substantially remediate, like we have done with 357 Bay, we take the rentable area up by about 5,000 sq ft. We have got these small turnkey floors. There are some users in the market that are in that 30,000 sq ft-45,000 sq ft plate, that would get their own standalone building on Bay Street. We've got a whole holistic building management plan we're looking at for 366. We think if we can take the rents up by CAD 10 over expiry, that's an extra CAD 450,000 in NOI per annum, and we think it's a really attractive building. We see our occupancy going up towards the end of the year and we've got an asset plan for each one. Thank you. I'll turn it back. Thank you, sir. Our next question is from Mario Saric with Scotiabank. Hi, guys. Good morning and thank you. Maybe the first question for Jay, just on the 2021 guidance. In that CAD 1.60 FFO per unit, is there the expectation for any lease termination fees for the year, number one? Number two, does the guidance inherently assume that the government subsidy programs are going to expire in June 2021? Hi, Mario. First question, no, we do not forecast lease termination income. We do not anticipate there being material terminations currently. Second question, on wage subsidy, it's formulaic and then right now we expect nominal amounts in the first quarter and therefore the guidance for the formula hasn't really been brought out yet for Q2 and beyond. I think it's very nominal in a budget. I think like CAD 58,000 is in there. We do not rely on the subsidy. Okay. In addition to the wage subsidy, I was also thinking about the CERB program, just the government assistance programs for tenants. Yeah, under the old program with CECRA, you sort of have to try to forecast the provision because you're forgiving 25% of the rent. Under the new program, the tenants are eligible for a higher percentage. What we would do is maybe forecast a little bit of provisions in there, but our expectations are that that program will continue to support our tenants' ability to pay. Our rent collections are continuing to be in the high 90s. By really the second or third quarter of the year, we're going to start to see a recovery. Both the tenants coming back, businesses to reopen, and our parking garages, which actually is a pretty material figure in our NOI to gradually recover as well. Got it. The parking revenue, as you mentioned, fairly meaningful. Is the expectation that that will fully recover by the end of the year back to 2019 levels? Yeah. I would say that is really like an inverse curve. You had okay parking in Q1 2020. Then it dropped. In the summer, it came back a little bit. By here now, it's really hard to say when we're going to come back. I think by the summer we're going to gradually build the curve back up. By the end of the year, we're going to expect that most of our parking garages will be well-utilized. Got it. Okay. Maybe shifting to capital allocation and the NCIB. Can you remind us of when you can launch the new NCIB? I think, Michael, you mentioned that the appetite is still there to buy back units given where the stock is trading. How would you characterize that appetite today relative to August 2020, given the balance sheet leverage has ticked up a little bit, while you're not expecting many dollars to be spent on development or redevelopment in 2021, I think you mentioned CAD 12 million. Presumably 2022 onwards, that will be an increase in use of capital. How do you think about the unit buyback with all of that in mind? I would say that the NCIB, we had a new one mid-August. I would expect on what we see now, if the stock is where it is, we'll use it all up. It's nice, too, because between now and August, we'll get some answers on all the questions that have been raised today. If we can see that the company is producing higher rents, higher occupancy, getting approvals, we'd be happy to use up the entire Normal Course Issuer Bid. We're funded either through increased mortgages. I think we're getting a bunch of gains in our book value so that will offset the capital structure. It's not that much money. I think we'll continue to buy back stock as much as we can. One of the things, we had 114 million shares at the peak, now we're about 54 million, so we've reduced them by more than 50 million shares. It's kind of like a habit I got working on a break. Fair enough. Okay. Just from a Dream Industrial perspective, you talked about potentially doing a bit more, not materially so. Just wondering from a tax perspective, is there anything that prevents you from more materially selling down your stake, and then redeploying into either redevelopment or your units just from an efficiency perspective? I'm sorry. Was the question whether there's anything to prevent us from doing that? Yeah. Is tax inefficiency an obstacle to doing that if you're so inclined to do so? Our view has been that we really like Dream Industrial, and if we want to get some liquidity, we would do it. Jay, do you want to go through any numbers on that? Sure. To answer your question at a high level, I would say it's a consideration, not an obstacle. In 2020, we sold a little bit that didn't really have a material impact. We monitor our sort of tax basis compliance with SIFT rules and the liquidity concurrently. We anticipate the sources of capital use for the NCIB will be achievable within a tax structure. Got it. Okay. My last question just pertains to leasing. Of the 450,000 square feet that was leased during the COVID crisis, and I think you've already taken care of 420,000 square feet of your 2021 lease expiries, so you're well along your way there. Have you seen any tangible data points pertaining to tenants either shrinking their respective footprints due to work from home strategies going forward, or conversely, increasing footprints due to new social distancing requirements. Is there anything in the data there that would suggest tenants are altering their behavior at all? That's a really good question, Gord. We see a couple of different data points there. As early as yesterday, we had a tenant discussion with a large tenant that was asking for the availability of contiguous space so that they can grow their footprint and make a little bit more space. Let me rephrase that. I'd say few and far between have been the tenants that are downsizing as a result, and we're starting, as we come through this, to speak to more and more tenants about potentially growing their footprint. Our client services team, we like to self-perform some construction and project management on our side as well, too. We've been using that as an opportunity to talk to our tenants and help plan their space with them. We've had a lot of these conversations, and I'd say it's marginally more skewed towards people taking more space than it is the opposite and taking less. That's really interesting. Okay. Thanks, Gord. You're welcome. Thank you. Thank you. Our next question is from Matt Kornack with National Bank Financial. Yeah. A quick follow-up on that line of questioning with regards to discussions with your tenants. Just wondering, in terms of some of the vacancy that you've had, were those tenants that ultimately had financial strains related to COVID? Then maybe in addition to that, if you could discuss kind of your talks with the governments because you've got them in there, you've got some financial services tenants, and then maybe what some of the smaller tenants are thinking with regards to space as well. Sure. Thanks, Matt. It's Gord again. Just on unpack your first question. When we were speaking to some of the tenants, unfortunately, that haven't weathered COVID as well, I'd say notably, the majority of them were people that were traditionally AR issues prior to the pandemic. I think this just kind of was an inflection point for a number of those tenants that were already struggling a little bit when COVID happened. For the most part, our collections have been tremendous, in the high 90s. The bulk of the tenants that we're dealing with are committed to trying to make their business work, and we're doing whatever we can to help them on the occupancy side. You made a really good point, and not a lot of people are asking about the government and large users, but our position in working with the government is they've been tremendous to work with throughout the pandemic. We've done a number of notable renewals with them. We're working on a couple of other deals with them at both the provincial and the federal level. Keep in mind, we did 190,000 sq ft with them at one of our buildings at the beginning of the year. They did what they could to work with us to get the deal done throughout COVID, and they were a great partner to deal with. They're looking at their occupancy strategies as well, too, from the vein of what their workplace is going to look like. They've gone to Workplace 2.0 this previous year. They're looking at doing another kind of hybrid where they're providing more space to their employees. We're having these active conversations with them. For the most part, the government has been staying with us and potentially expanding in some spots. Our larger institutional users, we haven't come to any real occupancy variances with them as of yet. Okay. Fair enough. On the lease maturity profile, and I think, Jay, you've probably highlighted this in your guidance. I think for other markets, you already anticipate you have commitments in excess of your maturities. For the Toronto market, I think it's about 60% of total. What would you expect in terms of a retention ratio on maybe both markets, but what are the thoughts on retention at this point? Sure. Retention ratio in Toronto, it's been pretty steady, and it hasn't really changed in COVID, and we're seeing about 70%-75%. I think the easiest way to sort of explain downtown Toronto is we don't expect a lot of activity given that right now it's almost March for the first two quarters. A lot of the pipelines, the tenants are ready to sign. We think that in Q3, Q4, we're budgeting about maybe 300 basis points of positive absorption in each of them. In other markets, as you said, if you look at the spread between the committed and in place, a lot of that's already picked up. When Sherwood comes in, that'll help the occupancy. Otherwise, they will commence in sort of the second half of the year. On retention ratios, just because the portfolio is only 15% of the business and the buildings are unique to the geographies, it's hard to forecast the retention ratio. It's block and tackle, and I would generally say that we are in the business to fill up the space, and we are very open-minded, and we will get the occupancy up because that improves those liquidity from both the financing or private market perspective. Sure. At this point, it sounds like rents have held fairly firm. Obviously, that can change. Definitely in Toronto, is that a fair characterization? It is, Matt. Yeah. They've stayed very consistent to pre-pandemic levels. Maybe this quarter, leasing costs were up a bit. Is that a function of, I think it may have just been 357 Bay, but is there something else to that in terms of the pandemic or? That was actually unique because the commencement this quarter was weighted or skewed heavily towards the Overland Park lease that took occupancy, I think, at the end of the year. Okay. Last question from me. You have some very pretty-looking renderings of some pretty impressive density that you could add on your sites. Do you foresee that being done within Dream Office REIT? Would it be sold to another entity, or what would be the timeline if it is going to be done within Dream Office? In reverse order, 212 King. We have a partner there. We've started the zoning process. That would likely take two years before we have zoning, let alone a site plan approval. That's pretty distant. 250 Dundas is a really interesting building because it's got a lot of apartments, and it's right in the hospital district. We could've started it sooner, but I think that with all the changes in healthcare, we're looking at opportunities to get higher returns on that building by working with the hospital. That's going to take some time. They're really quite busy right now. I think that we have four buildings in the healthcare district, and I think that they may surprise on the upside for what they're worth. At 2200 Eglinton, as I mentioned, in the Golden Mile study area, we're making a lot of progress. That's probably, hopefully, one year away for zoning, two years away for site plan. What's really nice about that one is it's so much land, and there's so much density there, we can do it in smaller chunks. 2,200 Eglinton, I think we'll start that the minute we can. 250 Dundas, Gord, what do you think? If you had to estimate a start date, when would you do that? About two years, Michael. Two and a half years. Yeah, two or three years, I think. As far as whether we have partners or not, these projects will all be owned by Dream Office going forward. We could look at bringing in partners, not in 212 King but maybe in 2200 Eglinton. Okay, perfect. Appreciate the call. Anything further, sir? No. Thank you so much. As a reminder, with your question, you can queue up by pressing star then one. We have our next question from Jenny Ma with BMO Capital Markets. Thank you. Good morning. I wanted to talk a little bit about what you're seeing in investment markets. Jay, you mentioned in the guidance that you haven't assumed any dispositions. You also mentioned that you're marketing some Western Canada and the Kansas assets. I'm just wondering, when you're thinking about that, do you think, right now it's going to be productive to be managing it? When you're thinking about these non-core assets, is the desire to maximize the value of these assets or really try to get them off the books, and really shore up your Toronto portfolio? Jay, you want to answer that? Sure. Yeah. There was an earlier remark where I made that improving the occupancy of all the buildings in the other markets will be beneficial for financing, and that if we don't sell it, we could probably get a pretty good LTV relative to the fair value or carrying value. If we get the occupancy higher, it also increases the desirability for these properties to be sold. In our budget, just because of uncertainty, it's really hard to forecast both the timing of the dispositions, if that happens, and what the price would be. We tend to want to avoid that. Also for the purpose, we do not want to rely on their liquidity, for capital allocation purposes. Overland Park is unique. Just as a background, that building was tied to an industrial building that is now in the Dream Industrial REIT, and the debt is in a CMBS pool. In April of this year, we can pay it off without a defeasance cost. We will market that building shortly. It's got a great covenant, U.S. Bank. We recently signed the five-year deal that's occupancy, or it was a renewal in December. We're curious to see what that pricing will come in at. Once again, we don't rely on it. Generally, I'd say that, in other markets we're able to get the occupancy up. We're fine managing it. We think the value is very reasonable on the books. We're really happy that sold the assets that we did over the past four or five years and just focus on downtown Toronto because we think that's where the future is. It sounds like CECRA could be something that happens sort of second half of this year, and then maybe the other stuff is a little bit more uncertain. Is that fair to say? Hopefully. The other stuff, it's really kind of random because we have marketed over the past couple of years. We sold a majority of it, excluding 1900 Sherwood, which feels just like a bond right now. The other buildings, I'd say right now from time to time, we get unsolicited interest, and we would take a look at them seriously. We're open. People definitely know these are on the market, and if there's good interest, we'll engage. We'll see. Have you seen that interest shift at all recently? I think everybody understands. I was asking, have you seen the interest level shift recently, especially on a post-vaccine basis? Is it really just random tire kickers here and there that you've been dealing with for the past couple of years? For most of these properties, I would say it's been quite random. Nothing really has changed. Maybe financing is a consideration, but there's so much capital out there right now, so we may be able to sell one or two buildings this year. Okay. Jenny, keep in mind that about half of the other properties are Burnhamthorpe and 2,200 Eglinton. You add in Overland. Otherwise, they're pretty small numbers, I think CAD 50 million would be in Saskatoon, maybe CAD 80 million in Calgary. Overland we would sell as non-strategic. The two Toronto assets we really, really like. We're sort of, we could go either way on the other assets. Okay, great. Moving back to the sublet space, I know it's very small, but, and I apologize if I missed this, but what is the distribution of that space? Is it fairly reflective of the portfolio, or is it more concentrated towards downtown Toronto? I guess the weighted average rent on it is CAD 25. A little bit more color on that would be great. It's spread out pretty much everywhere. We've got some sublet space at Sussex. We've got a couple of very small pockets on Bay Street and Richmond. I believe there's another sublet opportunity at Adelaide Place. It's distributed throughout our portfolio. Okay, great. Thank you very much. Thank you. Our next question is from Mike Markidis with Desjardins Capital Markets. Hi, everyone. Quickly from me, Mike, you piqued my interest with talking about potentially a different use at the Dundas site. I was wondering if you can elaborate on that a little bit? Secondly, would that require any more negotiation with the council in terms of the zoning, which you bring up? Thanks. I think what we're looking at is the hospitals are booming. They're going to need more space. We're looking to see if it makes sense to work with the hospitals to have them take space in our building, whether they need any special requirements for it. We think that could be good for the hospitals. It'll free up space within their buildings. The other thing is we could look at, on the residential, making arrangements with the hospitals to make sure that they've got accommodations for people that work at the hospital within 300 ft. Okay. No, I think I got you there. Instead of conventional office, maybe an office use or a lab-type space and then on the central side, maybe some sort of contract. Yeah. It's well within the shape of the building we got approved. It shouldn't require anything to go back to the city for. Okay, great. Thanks very much. Thank you. Thank you, sir. We have no further questions. I will now turn the call back over to Mr. Michael Cooper for our closing remarks. Well, I'd like to thank everybody for their continued interest in the company. Please feel free to call Gord, Jay, or myself if you have any further questions. We hope that over the next 90 days, we'll do a lot of leasing, get a lot of answers. In the meantime, thank you for, again, spending your time with us. Have a great day. Goodbye. And thank you. Ladies and gentlemen, this concludes our conference. Thank you for participating. You may now disconnect. Speakers, please stand by.