06:43 AM EST, 02/19/2025 (MT Newswires) -- Dream Unlimited (DRM.TO) overnight Tuesday said it had halved its net loss in the fourth quarter, buoyed by improved recurring income, but added it is operating in a "very difficult and uncertain environment to navigate."

During Q4, the Trust reported a net loss of $8.3 million compared to $19.7 million in the prior year. It said the change in earnings was driven by fluctuations in fair value adjustments year over year ($8.9 million). In addition, the Trust recognized earnings from Brightwater condo occupancies ($3.6 million), partially offset by higher interest expense driven by the timing of completed multi-family rentals during the year ($1.1 million) which was previously capitalized as the buildings were under development.

In the fourth quarter, the Trust's recurring income segment generated a net loss of $2.5 million compared to $18.7 million in the prior year. The improvement year over year was largely driven by the composition of fair value adjustments in each respective period. While modest cap rate and discount rate expansion was recognized on the Trust's multi-family portfolio in the current period, comparative results included $15.0 million fair value losses on office properties.

"Our priority for 2024 was to create value for the Trust while managing liquidity in the most prudent manner," said Michael Cooper, Portfolio Manager. "In 2024, we accomplished many significant milestones for the Trust including selling assets, completing income properties thereby increasing our asset allocation to multi-family residential, progressing on the construction of 2,700 apartment units and major advancements for our large development assets. Nonetheless, the macro environment is beyond our control including 30 year lows for starts for new condos, diminution in land values, high construction costs and the potential for devastating tariffs, results in a very difficult and uncertain environment to navigate."