Welcome to the Dream Impact Trust third quarter 2023 results conference call for Wednesday, November 8th, 2023. Please be advised that all participants are currently in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. During this call, management of Dream Impact Trust 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 Impact Trust'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 Impact Trust's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available on Dream Impact Trust's website at www.dreamimpacttrust.ca. Your host for today will be Mr. Michael Cooper, Portfolio Manager of Dream Impact Trust. Mr. Cooper, please proceed. Thank you very much, and I'd like to welcome everybody to the third quarter conference call for Dream Impact. First, I want to talk a little bit about the progress we're making with the operations, and then I'd like to talk a little bit about how the market's changed, and then I want to show you a little bit about how we look at the business and what we're doing to adapt to the changing market. So firstly, with throughout our portfolio, we have incredible assets, and they have great opportunities. We're very excited about it. We're making lots of progress, finishing buildings and financing in place to start a couple of others and getting zoning done. So a lot of things are going according to plan. Examples are Maple, which is Block 8 at West Don Lands. It's a 751 units, and we're now doing leasing it up, and it's going quite well. In Gatineau, we also finished what was Block 11, now it's Aalto II. We're about a quarter leased. We're ahead of schedule, and we're getting rents that we had hoped for, so that's working out great. We expect that the new Common at on the Ontario side, in Mississauga, we'll start to market it this probably next month. So it's great to see those projects completed with construction and getting on to occupancy. And they're pretty much on budget, and the values are great, so we're pleased with that. With Quayside, we were working through the city to get the zoning, and it looks like we should have the zoning in place by the first half of next year, and that will cement the value of a great site. Victory Silos has its zoning. Gary West has its zoning. So we're really getting to a point where most of our assets are zoned, and that's a great accomplishment. Our apartments that are in operation are proceeding very well, and we have increasing occupancy and rents consistently, and they're doing a lot of what we expected. So, within the four corners of a piece of paper, things are going well. In the last six months, interest rates went, the ten-year bond went from 2.5% to 4.2%, while the 30-day number went up by only 10%. So the 30-day or the overnight rate went up 10%, and the long rate went up about 60% or 70%. And I think that's really created a shiver within the real estate community and a lot of projects are being delayed, and people are thinking about their portfolios. So things have really slowed down. On top of that, there was another war that started, which is just another level of risk. So I think what we're seeing in real estate is things are getting pretty frozen. And then all of a sudden, last week, we saw that interest rates came off 50 basis points. So in March of this year, we wanted to start with LeBreton Flats Library Parcel, but the financing that we had with CMHC, it wasn't a project that works. So over the last six months, we've been working with CMHC and others to make the project a better project. Then on September 18th, the federal government waived GST, and the province recently agreed to do it as well. That made the project very desirable. And then from September 18th, interest rates went from about 3.55% to 4.20%, and the increase in interest rates offset the GST in terms of capital. So that didn't look good. But with the decline in the last couple of weeks, the project is getting close to what we had hoped it would be, and we're working with CMHC to finalize the documents, and hopefully, we'll be able to get all of that done, have a ten-year debt at an attractive rate, and have the whole project set up to proceed by the end of January. So what I'm trying to get at is, the viability of projects right now are incredibly sensitive to the interest rates, and interest rates are moving around quite a bit. So people's moods and people's decisions are going to vary quite a bit, depending on what happens with the ten-year bond over the next while. S o I think that's really been a big push. The interest rates, it affects our ability to achieve the returns we think we need to proceed as a developer. But we're also seeing that, the interest rates are affecting the demand for housing. Because especially when you think about condos and houses, they're very expensive. Still, the price is expensive, and the cost of carrying is much higher than it used to be. It's ironic, while we talk about a housing crisis, that we're seeing a decline in housing starts, and it seems as if, intuitively anyways, something's going to give so that housing can be created to, meet the needs of, the Canadian population. Tomorrow, I'm speaking to, a subcommittee of the Ministry of Finance in the House of Commons about housing. There's five other deputies speaking, and it's clear that the governments are very focused on how do we create more supply? So I think one way or another, that'll work out well for us. But when I look at the business as it is today, we basically have about a little over CAD 600 million of income properties, and we have another CAD 365 million properties that are very far advanced, that are going to become income properties, or like condos in Canary, which is 70% tender and 85% sold. So we've got about CAD 1 billion of assets that are income properties or very advanced developments. They've got about 33% equity, 67% debt at the current carrying value, and they have very little requirements for new, new equity. They're a very desirable portfolio and very valuable, and I think the highest value most likely is to continue holding them and, like, finishing the products and holding them. But we're open-minded how we deal with them in the future, but it's pretty amazing to have CAD 1 billion of assets in this company that don't require much further equity and are such high value. In addition to that, we have about CAD 250 million invested in Zibi and Brightwater, which are two master-planned communities. They've got about 60% debt and 40% equity, and the nice thing about that is they consist, in the case of Zibi, we probably have about another 30 development blocks, and we can choose to sell individual blocks to third parties. We can build them out at about CAD 60 million-CAD 100 million each one, or we can partner with people. So that's got a lot of flexibility. Brightwater is a project, 72 acres on Lake Ontario, and the teams have done an incredible job with our partners. But right now, the demand is low, so it's taking longer, but that's CAD 250 million of great properties with 40% equity. Aside from that, we have some land holdings, and the land holdings are also about CAD 250 million, but most of that is Victory Silos, and the Gary project is over CAD 200 million, and those are great sites. You know, it's a little bit more difficult because it's hard to start these projects, but the carry on them isn't too bad. So, I think as we get through the next 12 or 24 months, they should turn around. Then we have some passive investments that obviously we're going to want to liquidate to get the cash out and concentrate on the CAD 1 billion of revenue properties we have, furthering the master-planned communities for CAD 250 million and advancing the CAD 250 million of land holdings. I think we've got a good plan. The market conditions are not in our favor. We're very disappointed in the stock price, especially when we have such good assets. So we're going to be mining the entire portfolio to see where we can bring in partners for projects, maybe sell some assets, and generate more liquidity. You know, just kind of distill the business to get to an incredible portfolio of assets that are self-sustaining over the long term. Meaghan? Thank you, Michael, and good morning, everyone. In the third quarter, the trust recognized a net loss of CAD 12.4 million, compared to net income of CAD 0.3 million in the prior year. Broadly speaking, the fluctuation year-over-year was attributable to fair value write-downs in this period, although there are a number of puts and takes, which I'll describe further on a segmented basis. As it relates to our development segment, in the period, the segment reported net income of CAD 3.1 million, up slightly from prior year. Most of current quarter earnings related to a fair value gain on Maple House, which we previously referred to as West Don Lands Block 8. Over the summer, we were extremely pleased to commence leasing at Maple House, which is a 770-unit rental building, of which one-third of the units are dedicated as affordable. The site is located in downtown Toronto, adjacent to the Distillery District, Canary District. As of November 6, nearly a third of units were leased, and we expect to realize additional fair value gains on this asset over the next 16-18 months as the building stabilizes. As it relates to our Ottawa portfolio, we recognize the fair value gain in the third quarter, primarily related to Aalto II, our second multifamily rental building at Zibi, which also commenced leasing in the period. Following shortly behind next quarter, we'll be leasing commencement for Common at Zibi, which is a 207-unit rental building, which will offer a mix of unit typologies. We're also pleased, or we're very pleased with the momentum we're gaining across our multifamily portfolio as we continue to grow our recurring income segment and further diversify our asset composition. Once stabilized, we expect Maple House, Aalto II, and Common at Zibi to add CAD 200 million at share to the trust recurring income segment assets. In the third quarter, the development segment recognized income related to condo occupancies at Brightwater West. This is the first vertical block of the development to occupy, with roughly half the units occupying in the period and the remainder to follow in the fourth quarter. Sales for this building initially launched in late 2020. Now, as it relates to our recurring income segment, NOI from commercial properties was CAD 2.7 million in the quarter, down slightly from the prior year due to higher OpEx from assets within equity accounted investments, combined with lower revenues on an income property currently under renovation. NOI from the multifamily rental portfolio was CAD 1.5 million in the period, up from CAD 1.3 million in the comparative period, due to increased tenant occupancy and the timing and completion at Aalto Suites at Zibi. Total segmented earnings from recurring income assets was a loss of CAD 16.6 million, compared to net income of CAD 1.2 million in the prior year. Now, the fluctuation was driven by fair value adjustments on the trust office portfolio due to increases in discount rate assumptions, as well as higher interest expense in the current period. As of September 30th, the trust had CAD 28.6 million in available liquidity, which includes cash on hand and availability under the corporate credit facility. We've previously given guidance on our expected capital needs for development projects over the next 18-month period. Based on current timelines and market conditions, we anticipate capital contributions could be anywhere between CAD 25 million-CAD 30 million. However, I want to stress that the lion's share of the spend is objective and dependent on advancing new development blocks across our projects. Should market conditions worsen or alternative liquidity needs arise, we could defer construction starts and spend. It's also worth noting that for the trust's advanced development projects, including Maple House, Cherry House, and Forma, among others, we do not anticipate additional equity needs to complete these buildings, as they are fully funded through construction-level financing, which should not have a significant impact on our leverage. Said differently, to add the additional CAD 200 million of stabilized income properties, which I referred to earlier, no additional cash is needed. Overall leverage for the trust increased slightly from 36.1% last quarter to 37% as of September 30th, or 65.5%, including project level debt. Nearly a third of the trust debt profile is considered government affiliated, which we consider to be less risky than conventional debt, as it oftentimes provides for higher LTVs, lower interest rates, and longer amortization periods. As this period ends, two-thirds of the trust debt was fixed at a weighted average interest rate of 4.2%. With that, I'll turn the call back over to Michael. Thank you, Meaghan, and we'd be happy to answer any questions. Thank you. We'll now begin the question- and- answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. Our first question is from Sairam Srinivas with Cormark Securities. Please go ahead. Thank you, operator. Thanks for the color, Michael and Meaghan, and congratulations on the Maple. Just, Michael, if you could just probably give some more color on the 3,000 additional suites that you see kind of coming into the pipeline by 2025. Sorry, the pipeline of completed projects? No, the incremental 3,000 units that you see, you can probably add between now and 2025, thanks to the GST announcement. So that would include some of our active projects that are all within, so if you're looking at the section 1.4 of the MD&A, our development pipeline details, that would include projects such as LeBreton, some future phases at Zibi, among others. But those would be the most significant ones, part of it. Oh, okay. Yeah, I was. I know I interpreted it as additional units, but I guess that's fine. Just looking at Aalto, Common and Maple, how are you guys seeing the unwritten rents compared to what you're seeing in terms of leasing? Look, when we, when we started the building, it was 2018, we did a budget that would show rental increases, maybe average 3% or 4% per year. And right as soon as COVID hit, rents went down a lot. It took until about October of 2022 before the rents we were seeing in the market caught up to 2019 untrended rents, and since then, ironically, we're just slightly ahead now. So it's been anything but, i t turns out our estimates were fine, but nothing happened like our estimates for the five years in between. Perfect. That sounds good. And Michael, in terms of, you know, when you look at projects and you think about, you know, properties that you would like to probably sell in terms of condo developments or the ones that you'd like to own, how is the decision here and what's the thought process behind it in terms of understanding the capital allocation on that side? Yeah, I think it's a little—it's quite a bit different now from what it used to be, because I think that before we were looking about whether we should build a condo or an apartment. Now what we're seeing market-wide is, are the returns high enough to justify building? And then you look at whether a condo or an apartment makes sense. So, what we're seeing at the minute is, I say the minute because it's—everything is so sensitive to interest rates on apartments. But right now, with the HST, that is a benefit for apartments. And the softer condo market is a negative for condos. So whether it's equal or not, it definitely is swinging towards choosing apartments over condos. But it depends on each project and how it's funded. But I think that what the government's doing with the RCFI financing, what it means is you have to have your equity in it first, but you get all the debt you need to finish the project fixed for 10 years, so you don't take any interest rate risk for when you complete your project and get it stabilized. So that makes an apartment decision quite good. On a condo, you don't have to spend that much money before you can go to the market and test it to see how interested customers are at buying units at a certain price. So just recently on the lakefront, there was a very successful launch at about CAD 1,650 a sq ft, and that was great to see. There was another one around Rosedale that was a large project that did pretty good. Other ones aren't doing that well, so it's, it's really hit and miss. So I think you got to have something relatively special, not just a, a, a commodity-type condo. But what's happened is everything's harder to do, but if you hit it right, you can build both condos and apartments, at, in this market, but probably less so than you would have expected to, but not as much. That's actually a really good color, Michael. And just I know you mentioned the RCFI financing. Does that actually make some markets for purpose-built rentals more attractive related to others in terms of how you can actually make the math work over there? You know, it's interesting that you say that because we're building through the Dream Group apartments in Western Canada, and they pencil out very well. It's cheaper to build, the rents are good, yield on cost is good. We're finding Ottawa is working okay. But right now, Toronto is so complicated. It's been a harder market to make work. But like literally 20 basis points on the 10-year bond, and there's lots of opportunities to build again. That's, that's amazing. Thanks, Michael. Thanks for the color. I'll turn it back. Thank you. Once again, if you have a question, please press star, then one. Our next question is from David Chrystal with Echelon. Please go ahead. Hey, thanks. Good morning, guys. Just in terms of kind of crystallizing, demonstrating value, are you in any kind of advanced discussions with respect to either wholesale dispositions or partial dispositions of anything with potential partners? It's a great question, and I don't know precisely what you mean by advanced. We have had, over the last three months, effectively introductions to various groups that could invest in projects. And we're talking to a lot of different groups right now. And we are looking at selling off individual properties to raise some capital as well, for properties that we don't think really enhance the value or quality of our portfolio. But if you're asking me, is there a specific transaction that we want to foreshadow? There is not. Would those be existing partners looking to up their stake in current projects, or would those be kind of new third-party arm's length entities? You know what? Do you think it's A or B? I think the answer is it could be complete third party, as you say, but it could also be people who invested with us in other projects that might invest with us on the next project. So we're dealing with both people we never dealt with before and people we dealt with before on other things. Okay, good. Good color. And then it sounds from your commentary that, you know, you're, you're, you like the various development projects you have, and you'd be leaning more towards crystallizing value in more kind of passive, passive holdings. Is, is that fair to say? You'd be looking at kind of disposing of income properties rather than developments? Oh, I'm glad you asked that because I want to be clear. When we say passive investments, we think about money we've invested in third-party developers or with third parties, so we want to get that money back to the best that we can. So those are the passive investments I was referring to. I think that maybe on some of the commercial property, we'd love to cull the portfolio a bit. On the developments, we would be happy to bring partners in. So, you know, at Zibi, if we bring in third-party money to partner with us, it would mean that the Impact Trust would not need very much money to participate in the next building, let's say, at the same time that the land loan gets paid down and everything gets safer and safer. You know, if we had a 50% partner for every new building in Zibi, that would free up a lot of liquidity and reduce risk in the business. That's just an example of the kind of thing we're looking at. Okay, fair. And, maybe just building on that answer, how much incremental corporate-level equity or cash is required to advance what you have in active development over the next couple of years? So again, I'm going to thank you for that question, because when we do a business plan, we have a static business plan, and it assumes a lot of starts to developments. I think over the next 4 years, we're thinking, let's say in our business plan, maybe we need CAD 100 million, but if we decide not to proceed with things, we need under CAD 20 million. So how much money we need is based on how many choices we make. So if we bring in partners, we could see not needing any of that money. So it's really up to us to make the decisions. I think embedded in the answers you get from everybody in our company, from each of the companies, is they refer to a corporate model that includes a tremendous number of decisions to start new things or make acquisitions, but we don't, we don't have to do that. So there isn't a lot of new money that's required for any of these properties or developments. Okay. So the kind of base case is CAD 20 million of new cash if you don't do anything, if you don't sell anything, if you don't partner on anything, that's the kind of base case. But obviously, you know, things are very fluid. Yeah, I think that, I mean, that's my numbers, is that it's probably about CAD 20 million, which has to do with capital being invested in some of the apartment buildings, a little bit of leasing costs in the commercial buildings, and honestly, a little bit of interest, but most of the pre-development has debt that includes inter-servicing. Okay, fair. And, and Meaghan, maybe a last housekeeping item for me. On the multifamily equity accounted, if I look at the expenses quarter-over-quarter, there was a pretty big jump. I believe from your disclosure that there are no new developments added into that bucket yet. They're still carried as developments until the fourth quarter. Is there any reason for that sequential jump, or is it just timing of expenses or anything to read through going forward there? Yeah, there's a little bit of timing here. I think going forward, NOI as a percentage should even out. So, probably it's not overly material. It just stands out as we're building up the portfolio and that NOI contribution. So, we're going to look to try and include some new disclosures going forward so that it's more transparent from a same-property comparison period-over-period. So, excuse me, I'd say a little bit of one-time noise, which should even out going forward. Okay, great. Appreciate it. I'll turn it back. This concludes the question- and- answer session. I'd like to turn the conference back over to Mr. Cooper for closing remarks. Well, I would love to thank everybody for continuing to participate in these calls. If you have any questions, please reach out to Steven, Meaghan, or myself, and we'll keep you updated on how the changes in the economy affect what we're doing, but it's a very volatile time right now. So, you know, once again, thank you, and we're looking forward to reporting to you after year-end.