Dream ready to soar

Article Excerpt

DREAM OFFICE REIT $22.58 (Toronto symbol D.UN; TSINetwork Rating: Extra Risk) (416-365-3535; www.dream.ca/office; Units o/s: 75.1 million; Market cap: $1.8 billion; Dividend yield: 4.4%) launched a three-year strategic plan in early 2016 to push up its unit price. As part of that plan, Dream has now sold roughly $3.2 billion in properties. It used most of the proceeds to pay down its high-interest debt. It also bought back 21.0 million, or 20.3%, of its units for $440.0 million. In the quarter ended September 30, 2017, Dream’s revenue fell 35.3%, to $110.5 million from $170.7 million a year earlier. Cash flow per share fell 22.6%, to $0.48 from $0.62. The declines reflect the sale of properties, down to 46 from 148 a year earlier. However, now that its restructuring is complete, Dream has a strong balance sheet and a high-quality office portfolio—one better focused on downtown properties in Toronto and other key markets. Its units yield a high 4.4%. Dream Office REIT remains a buy…

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