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  5. DRM: Could you comment on earnings and an updated outlook? [DREAM Unlimited Corp. Class A Subordinate Voting Shares]
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Q: Could you comment on earnings and an updated outlook?

Thanks in advance. - Jeff
Asked by Jeff on May 16, 2024
5i Research Answer:

DRM saw strong land sales in the Q1, with the sale of 146 raw acres and $162M in sales secured for the remainder of 2024 and 2025. Assets are now $25B, up 43% since year end 2022. Q1 revenue was $61.5M, up $2M. Higher occupancy rates helped income (operating income $27.2M). Income from equity investments fell slightly. Several projects continue with development. The stock remains very cheap at 7X earnings, and has recovered somewhat from October's lows. The dividend was raised in February. It was a good quarter, and fundamentals appear to be shifting to the better. Lower rates should help. Still, it is relatively small, and closely tied to rates/the economy. Much is going to depend here on how Canada works its way out of potential recession. We would consider it OK, but not great, with size risk a factor.