Entering text into the input field will update the search result below

Dream Industrial: Reviewing 2020 With Perfect Hindsight


  • We have written about this REIT several times in the last year.
  • Today, we analyze the overall 2020 numbers and provide our take.
  • Key points we look at are the increasing payout ratio and the decreasing FFO per share.
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

All values are in CAD unless noted otherwise.

Last time we wrote on Dream Industrial Real Estate Trust (OTC:DREUF), we decided not to add to our small position as the market price was above our buy point.

Dream has been swept away from our original buy point by the wave of popularity currently being enjoyed by the Industrial REITs. We have a tiny position left on this and we are holding it. We might get a chance to get a bigger position in, once things normalize in this sector.

Source: Dream Industrial: The One That Got Away

Yes, things are not back to normal yet, and yes, the price is still above our original buy point. We will however, go over the most recent results and share our thoughts on our favorite (albeit at the right price) industrial REIT of the north.


Dream Industrial owns and operates a 177 property/27.3 million square feet portfolio comprising distribution, urban logistics and light industrial properties across North America and Europe.

Source: 2020 Annual Report

The 177 properties house 271 industrial buildings and are primarily comprised of distribution and urban logistics centers, with light industrial properties bringing up the rear.

Source: 2020 Annual Report

The REIT's 1,100 tenant base is well diversified at the industry level, notably with "Diversified" Industries making the highest single sector allocation at 14%.

Source: 2020 Annual Report

This REIT set up shop in 1994, and till 2016 their presence was confined to Canada. In 2017 they started venturing into the US, adding Europe to the mix since then. Unsurprisingly, they have been on a expansion tear since 2017 almost doubling their value along the way.

Source: December 31, 2020 Factsheet

And this growth endeavor is only gaining momentum going by the $355 million in acquisitions completed or under

Are you looking for Real Yields which reduce portfolio volatility?

Conservative Income Portfolio targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Cash Secured Put and Covered Call Portfolios are designed to reduce volatility while generating 7-9% yields. We focus on being the house and take the opposite side of the gambler.

Learn more about our method & why it might be right for your portfolio.

This article was written by

Trapping Value profile picture
Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder. Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income. The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.

Analyst’s Disclosure: I am/we are long DREUF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (12)

Jambr403 profile picture
Any thoughts on Dream Office REIT? They own a big chunk of Dream Industrial and also activist investor Sandpiper bought a nice chunk.
You are too late for the dance. The hypers have moved on, the money has already been made in this , only pennies
Seeking Value profile picture
Disagree with the statement about low growth possibilities. Growth should be able to come from organic means, and by that I mean increasing rents. Industrial real estate continues to have a structurally favourable supply/demand dynamic in most of the markets they operate in.
Trapping Value profile picture
@Seeking Value They have had that for the last decade.
Will104 profile picture
@Trapping Value

It’s really going nuts now though

The low average WALT is advantageous in this market
Rod Willmot profile picture
Great update, TV. I added a titch after seeing the latest results. I think rate fears are overblown and have more effect on the market than on the financial health of well-run REITs.
Trapping Value profile picture
@Rod Willmot Thanks Rod. Always good to see you around.
Thanks Trapping. Own Summit in this space, and believe I'll stick with it. A general question, if I may. Does this rising rate environment put most reits in the penalty box until rates stabilize. Or would you still consider adding to select names, headwinds or not?
Trapping Value profile picture
@62 falcon Thanks for reading.

My own view is that REITs tend to get hurt in rapidly rising rate environments. We might be getting there.
I have my thoughts on this in this article.
Thanks, T.V.! Great to see an updated view on this one.
Trapping Value profile picture
@caben Thanks for reading and commenting!
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.