Dream Office REIT Renews Normal Rate Offering and Announces Automatic Securities Purchase Plan

This press release contains forward-looking information that is based on assumptions and is subject to risks and uncertainties as set out in the cautionary statement contained in this press release.

TORONTO, August 19, 2024–(BUSINESS WIRE)–DREAM OFFICE REAL ESTATE INVESTMENT TRUST (D.UN-TSX) announced today that the Toronto Stock Exchange (“TSX“) accepted the notification submitted by Dream Office REIT (hereinafter “Trust“) to renew its previous issuer offer at the normal rate for a period of one year. Under the offer, the Trust will have the option to purchase for cancellation up to 862,071 of its REIT, Series A units (“REIT A Units“) (representing 10% of the Trust’s public float of 8,620,718 REIT A Units as of August 12, 2024) through the TSX. The offering will commence on August 21, 2024 and will be valid until August 20, 2025, or until the date on which the Trust purchases the maximum number of REIT A Units permitted under the offer, whichever is earlier. Daily redemptions will be limited to 15,752 REIT A Units, representing 25% of the average daily trading volume of REIT A Units on the TSX during the last six calendar months (of 63,011 REIT A Units per day), excluding purchases pursuant to applicable block purchase exceptions. As of August 12, 2024, there were 16,335,563 REIT A Units issued and outstanding.

In connection with the renewal of the offer to purchase shares in the ordinary course, the Trust has established an automatic securities purchase plan (the “Plan“) with its appointed broker to facilitate the purchase of REIT A Units under the normal offering of the issuer at times when the Trust would not normally be permitted to purchase its REIT A Units due to regulatory restrictions or self-restriction periods. Purchases will be made by the Trust’s broker based on parameters established by the TSX and the terms of the parties’ written agreement. Outside of such restriction periods or self-restriction periods, REIT A Units may also be purchased at the discretion of the Board of Directors. The Plan has been preliminarily approved by the TSX and will close on August 20, 2025.

The Foundation has renewed its regular offer to sell because it believes that REIT A Units may become available during the offering period at prices that will permit the redemption of such REIT A Units in the best interests of the Foundation and its unitholders.

During the period from August 21, 2023 to August 18, 2024, under its previous regular stock offering expiring on August 20, 2024, Dream Office REIT did not purchase any REIT A Units for redemption.

About Dream Office REIT

Dream Office REIT is an unregistered, open-ended real estate investment trust. Dream Office REIT is a leading office landlord in downtown Toronto, owning and managing over 3.5 million square feet. We have carefully curated an investment portfolio of high-quality assets in compelling locations in one of the world’s premier office markets. For more information, visit our website at www.dreamofficereit.ca.

Forecast information

This press release may contain forward-looking information within the meaning of applicable securities laws, including with respect to future purchases of REIT A units by the Trust. 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 the control of the Trust, which could cause actual results to differ materially from those disclosed or implied in such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions, including with respect to real estate; mortgage lending and interest rates and regulation; inflation; risks related to a potential economic downturn in certain jurisdictions in which we operate and the impact of inflation and such economic downturn on market conditions and leasing rates; risks related to unexpected or ongoing geopolitical events, including disputes between nations, war, terrorism or other acts of violence; uncertainties regarding the availability, timing and amount of future equity and debt financing; risks related to development, including construction costs, project timing and labor availability; NOI from development properties upon completion; the impact of the COVID-19 pandemic on the Trust; the impact of government restrictions on leasing and building traffic; the ability of the Trust and its tenants to access government programs; the financial condition of tenants and borrowers; employment levels; uncertainty regarding the timing and amount of future financings; leasing risks, including those related to the ability to lease vacant space and properties under construction; rental rates for future leases; and interest rate and currency fluctuations. Our objectives and forward-looking statements are based on certain assumptions, which include, but are not limited to: that the general economy remains stable; our interest costs will be relatively low and stable; that we will be able to refinance our debts as they mature; inflation and interest rates will not increase materially above current market expectations; real estate market conditions will remain stable; the timing and extent of the return of current and prospective tenants to the office; our future projects and plans will be implemented as expected; that governmental restrictions due to public health crises on our and our tenants’ ability to conduct business at our properties will not be imposed in any material respects; competition for acquisitions remains consistent with the current climate; and the capital markets continue to provide ready access to equity and/or debt capital to fund our future projects and plans. All forward-looking information contained in this press release is as of August 19, 2024. The Trust undertakes no obligation to update any such forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions, risks and uncertainties is disclosed in our filings with securities regulators on SEDAR+ (www.sedarplus.com). These reports are also available on the Trust’s website at www.dreamofficereit.ca.

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Communication

More information:
DREAM OFFICE REAL ESTATE INVESTMENT TRUST
Michael J. Cooper
President and CEO
(416) 365-5145
[email protected]

Jay Jiang
Financial Director
(416) 365-6638
[email protected]