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Dream Impact Trust (TSE:MPCT.UN)
TSX:MPCT.UN
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Dream Impact Trust
(TSX:MPCT.UN)
35Underperform
Dream Impact Trust (MPCT.UN) vs. S&P 500 (SPY)
Market Cap
C$50.75M
Dividend Yield1.93%
Average Volume (3M)14.32K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-2.06%
EPS Growth43.41%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength69
IndustryREITs
Share Statistics
EPS (TTM)-1.45
Shares Outstanding18,385,940
10 Day Avg. Volume12,679
30 Day Avg. Volume14,325
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-2.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.25Price Target Upside17.75% Upside
Rating ConsensusHold
Number of Analyst Covering1
Dream Impact Trust Business Overview & Revenue Model
Company DescriptionDream Impact Trust (MPCT.UN) is a Canadian real estate investment trust focused on owning and operating a diversified portfolio of impact-focused real estate properties. The company invests in development and income properties that deliver positive and lasting social and environmental outcomes, while also generating attractive returns for investors. Dream Impact Trust primarily operates in the sectors of residential, commercial, and mixed-use real estate, with a commitment to sustainability and community enrichment.
How the Company Makes MoneyDream Impact Trust generates revenue through rental income from its portfolio of properties, which includes residential, commercial, and mixed-use developments. The trust also benefits from property appreciation and strategic property sales, which enhance overall returns. Additionally, Dream Impact Trust may engage in joint ventures and partnerships with other real estate developers and stakeholders to optimize the development and management of its properties. These collaborations can provide additional streams of income and share the risks and rewards associated with large-scale real estate projects. The trust's focus on impact investing attracts socially conscious investors, which can lead to increased investment inflows and capital appreciation over time.
Dream Impact Trust Financial Statement Overview
Summary
Dream Impact Trust faces significant financial challenges, particularly in terms of revenue decline and profitability. The income statement shows declining revenues and negative profit margins, reflecting poor financial performance. The balance sheet is stable due to a strong equity base and reduced debt levels, but cash flow difficulties raise concerns about liquidity and operational efficiency.Income Statement
The company has been experiencing a declining revenue trend over the past few years, with significant negative revenue growth rates. Both gross and net profit margins are negative, indicating losses. The EBIT and EBITDA margins have also been negative, showing operational inefficiencies. Overall, the income statement reflects poor financial performance with a trajectory of declining profitability.10
Very Negative
Balance Sheet
The balance sheet shows a strong equity base with a high equity ratio, indicating sound financial health in terms of asset financing. The company has no total debt as of the latest report, significantly improving its debt-to-equity ratio. However, the return on equity is negative due to the net losses incurred, which weakens the overall financial position.45
Neutral
Cash Flow
The company struggles with negative operating and free cash flows, highlighting liquidity issues. There is a negative free cash flow to net income ratio, indicating inefficiencies in cash generation relative to losses. Despite these challenges, the company has improved its cash position, reducing net debt significantly, but the overall cash flow situation remains concerning.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| -19.61M | -43.51M | -31.03M | 36.49M | 36.76M | Gross Profit |
| -19.61M | -53.22M | -43.92M | 23.59M | 23.38M | EBIT |
| 39.88M | -59.85M | -37.58M | 20.25M | 20.20M | EBITDA |
| 0.00 | -84.46M | -37.58M | 20.25M | 0.00 | Net Income Common Stockholders |
| -26.03M | -44.14M | -43.55M | 21.45M | 16.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.22M | 8.71M | 2.24M | 8.43M | 110.67M | Total Assets |
| 684.42M | 707.43M | 724.17M | 701.70M | 648.51M | Total Debt |
| 0.00 | 270.06M | 226.34M | 133.15M | 88.19M | Net Debt |
| -16.22M | 263.88M | 224.09M | 124.72M | -22.48M | Total Liabilities |
| 283.18M | 278.77M | 245.44M | 164.77M | 108.64M | Stockholders Equity |
| 401.24M | 428.66M | 478.73M | 536.93M | 539.88M |
| Cash Flow | Free Cash Flow | |||
| -15.23M | -23.50M | -10.96M | 13.31M | 4.14M | Operating Cash Flow |
| -12.47M | -21.46M | -7.42M | 15.43M | 6.33M | Investing Cash Flow |
| 21.90M | -12.62M | -60.71M | -128.87M | 38.99M | Financing Cash Flow |
| 611.00K | 38.01M | 61.95M | 11.21M | -52.44M |
Dream Impact Trust Technical Analysis
Negative
2.76
Price Trends
3.14
Negative
3.63
Negative
3.67
Negative
Market Momentum
-0.10
Negative
35.45
Neutral
23.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MPCT.UN, the sentiment is Negative. The current price of 2.76 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 3.14, and below the 200-day MA of 3.67, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MPCT.UN.
Dream Impact Trust Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$4.29B | 19.11 | 4.50% | 7.29% | 9.46% | -42.77% | |
74 Outperform | C$3.36B | 12.88 | 5.58% | 6.05% | 7.62% | 139.80% | |
72 Outperform | C$3.59B | 17.25 | 5.20% | 5.19% | 6.55% | ― | |
71 Outperform | $5.52B | 11.77 | 6.34% | 6.29% | 11.62% | 1120.60% | |
61 Neutral | $4.74B | 19.16 | -3.00% | 7.93% | 6.45% | -20.78% | |
59 Neutral | C$2.61B | ― | -2.29% | 5.98% | -6.92% | -310.05% | |
35 Underperform | C$50.75M | ― | -6.27% | 1.93% | -2.06% | 43.41% |
* Real Estate Sector Average
Performance Comparison
TSE:MPCT.UN
Dream Impact Trust
2.76
-1.17
-29.77%
TSE:REI.UN
RioCan Real Estate Investment
18.63
1.84
10.99%
TSE:FCR.UN
First Capital Realty
16.91
2.16
14.64%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
25.31
4.04
18.99%
TSE:HR.UN
H&R Real Estate ate Staple
9.95
1.79
21.94%
TSE:DIR.UN
Dream Industrl REIT
11.64
-0.58
-4.75%
Dream Impact Trust Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -7.69% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of strategic progress in debt management and development projects, alongside challenges in commercial property performance and market conditions affecting project launches. Improvements in financial metrics and successful asset sales are positive, yet offset by difficulties in the office market and occupancy concerns.Highlights
Debt Management and Financing Progress
Successfully obtained extensions for approximately $130 million of current debt and working on extending $195 million of debt for 2025. Only $25 million in maturities remain for 2024, which are being addressed.
Improved Financial Performance
Net loss decreased to $7.6 million from $12.4 million in the same period last year, driven by fair value adjustments and a deferred income tax recovery position.
Sale of Assets
Closed on the sale of 10 Lower Spadina and 349 Carlaw for net proceeds of $30.1 million, immediately repaying $7 million on the Trust's credit facility.
Residential Developments and Leasing
Continued progress on Brightwater, Canary Landing, and other residential projects with significant condo occupancies achieved and lease-up phases underway.
Interest Savings
Expected annual savings of $4.5 million due to interest rate cuts in Canada and the U.S.
Lowlights
Commercial Asset NOI Decline
NOI from commercial assets was $2.2 million compared to $2.7 million in the previous year due to asset sales and lease terminations.
Office Property Challenges
A $5.2 million loss within equity accounted investments on an office property in Ottawa due to discount and cap rate expansion.
Delayed Development Projects
Delays in condo project launches and market apartment developments due to high interest rates, construction costs, and development charges.
Occupancy Issues at Sussex Center
Occupancy decline at Sussex Center due to a tenant downsizing, with no significant changes expected in the near term.
Company Guidance
During the Q3 2024 earnings call for Dream Impact Trust, key financial metrics and strategic guidance were discussed. The Trust ended the quarter with $23.8 million in cash and net proceeds of $30.1 million from asset sales, which were used to repay a $7 million credit facility balance. Despite a net loss of $7.6 million, this marked an improvement from the $12.4 million loss in the previous year, influenced by fair value adjustments and transaction costs. The Trust successfully extended approximately $130 million of current debt and is working on $25 million of 2024 maturities, with $320 million due in 2025. In terms of recurring income, same property NOI from multi-family rental assets increased to $1.7 million, driven by rent growth and lower operating expenses. The commercial asset portfolio saw a decline in NOI to $2.2 million, mainly due to asset sales and lease terminations. The Trust also highlighted significant development activities, including the completion of condo occupancies at Brightwater and the launch of Birch House leasing. Looking ahead, the Trust anticipates substantial NOI growth from lease-ups in multi-family projects and is actively managing its capital commitments to support future development initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.