Dream Unlimited Corp.

Dream reported stand-alone Q4 2025 net earnings of $56.2 million versus $135.7 million in the prior year; the year-ago period included a $157 million gain on the sale of A-Basin. Q4 asset management revenue and net margin were $61.5 million and $52.9 million, including $44.8 million of incentive fee income from the CPP joint venture transaction. Western Canada development revenue and net margin were $113.5 million and $42.5 million, with 438 lot sales, 204 acre sales, and 38 housing occupancies; the quarter included a 201 raw acre sale in Edmonton to a joint venture that generated $19.7 million of revenue and $15.8 million of net margin. Income properties revenue and NOI were $16.7 million and $8.4 million, up from $15.6 million and $7.1 million a year ago. Other Investments generated $11.1 million of revenue and negative $5.3 million of net margin. For 2025, the company said it spent just over $8.9 million on share repurchases, paid out $27 million to shareholders, and raised the annual dividend from $0.65 to $0.70 per share. It ended the quarter with $324 million of liquidity and $215 million of debt maturity in 2026, including about $60 million that is actually renewed each December; management said it is in advanced discussions with lenders on maturities over the first and second quarter. On guidance/commentary, management said nearly $150 million of lot and acre sales commitments had been secured as of February 20 for recognition between 2026 and 2027, up $28 million from last quarter. Management expects 2026 share repurchases to be at least twice the 2025 level, sees 2026 as a good year for Western Canada with more of the business flowing into 2026 from servicing delays, and expects a bigger step-up in income properties NOI in 2026 and a further large increase in 2027 as more units and retail come online.

Michael Cooper said the quarter was strong and argued the company is entering 2026 with momentum across all three major segments: asset management, Western Canada development, and income properties. He highlighted the growth in AUM-driven opportunities, including the $2 billion apartment venture and the $3 billion industrial venture with CPP, and said the business is becoming more valuable as these initiatives scale. He also emphasized that 2026, 2027, and 2028 should each benefit from growing earnings contributions, especially from income properties and better visibility in development.

Meaghan Peloso framed Q4 as a strong quarter with two significant transactions and explained that the year-over-year earnings comparison is not directly comparable because the prior-year quarter included the $157 million A-Basin gain. She gave specific segment figures: asset management revenue of $61.5 million with $52.9 million of net margin, Western Canada revenue of $113.5 million with $42.5 million of net margin, income properties revenue of $16.7 million with $8.4 million of NOI, and other investments at $11.1 million of revenue and negative $5.3 million of net margin. She also said incentive fee income from the CPP transaction was $44.8 million, nearly $150 million of land-sale commitments are expected to be recognized in 2026-2027, liquidity was $324 million, and the company expects to keep buying back stock aggressively while increasing the dividend to $0.70 per share.

Analysts asked whether management would update its prior view on about $2 billion of AUM growth, and Michael Cooper said he would not provide a near-term announcement timeline but feels more confident in the current environment and would not be surprised if Dream adds one or two more opportunities in 2026. On Western Canada, management said 2025 lot sales were not pulled forward; rather, some sales were pushed into the first and third quarters of 2026 due to servicing delays. On income properties, Cooper said multifamily should clearly exceed 50% of total NOI by 2027, while 2026 would be close but not certain. A private investor asked about Quayside, and Cooper said the restructuring leaves Dream Impact with 25% of the 1,200 units, with the rest split between a private fund and affordable housing components not owned by Dream.