Overview

* Dream Office REIT Q2 net loss C$41.8 mln, impacted by fair value adjustments of C$32.4 mln

* Diluted FFO per unit falls to C$0.62 from C$0.76 yr/yr due to lower net rental income

* Company reports increased committed occupancy and leasing momentum in Toronto

Outlook

* Dream Office REIT sees market stabilization in downtown Toronto

* Company notes decline in sublease space to 16.3% of vacant space

* Dream Office REIT expects higher future net operating income

* Company anticipates narrowing occupancy spread over time

Result Drivers

* LEASING MOMENTUM - Dream Office REIT reports increased leasing activity, securing 189,000 sq ft of leases in Q2, per CEO Michael Cooper

* OCCUPANCY IMPROVEMENT - Committed occupancy increased by 70 bps from Q1, driven by new leases in Toronto downtown

* MARKET STABILIZATION - Signs of stabilization in Toronto office market with steady vacancy rates and reduced sublease space

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net -C$41.80

Income mln

Q2 FFO C$0.62

Per

Share

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the commercial reits peer group is "hold"

* Wall Street's median 12-month price target for Dream Office Real Estate Investment Trust is C$17.50, about 7% above its August 6 closing price of C$16.27

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)