• $7.1B
    total assets(1)
  • 46.5M sf
    of GLA(1)
  • 99%
    in-place and committed occupancy(1)
  • 258
    assets(1)
Dream Industrial REIT (TSX: DIR.UN) owns, manages, and operates a global portfolio of well-located, diversified distribution, urban logistics and light industrial properties across Canada, Europe and the U.S. DIR.UN has a proven track record of acquiring assets where it can leverage its asset management platform to create value. DIR.UN’s strategy is to invest in high-quality assets and markets that provide growing cash flow and net asset value over the long-term to its unitholders.
(1) Figures as at September 30, 2022.

DIR.UN aspires to be a market leader in sustainability, it has a responsibility to manage the impact its operations have on the environment and it recognizes that investing in sustainability is a key driver of creating long-term value for its stakeholders.

2021 Key Accomplishments and Initiatives

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    Certifications

    2 million sf of green building certifications underway for 11 properties (including properties under development)(1)

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    Amenities and inclusive atmosphere

    Enhanced outdoor space at an 840,000 sf industrial park by planting trees, creating lounge areas and installing bike racks

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    Amenities and inclusive atmosphere

    Engaged a third-party consultant to assist in developing a sustainable roofing policy including roof categories such as cool roofs, green/vegetative roofs, energy efficient roofs, and solar-ready roofs. DIR.UN currently has 7 million sf of cool and green roofs in our portfolio

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    Tenant relationships

    Conducted a survey to benchmark tenant sustainability goals and provide insight into opportunities to broker new sustainability-related partnerships. Survey results have been incorporated into our asset planning process to align tenant sustainability goals with our asset strategies

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    Government collaboration

    Engaged with the Institute for Market Transformation (supported by the U.S. Department of Energy’s Better Buildings Alliance) to adopt green lease standards through the Green Lease Leaders program

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    Tenant relationships

    Held engagement sessions with our tenants to inform them of the opportunity to purchase renewable energy generated by Dream-installed solar arrays for their operations that led to the execution of seven rooftop solar projects and a $4.5 million capital investment

  • Future Ready FR Icon
    Innovation and technology adoption

    Refined internal process to identify buildings that are the best candidates for solar installations

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    Carbon and resource efficiency

    Explored low-carbon strategies such as mass timber and low-carbon concrete, to reduce the embodied carbon of new industrial warehouses, while maintaining a high level of marketability

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    Climate change resilience

    Assessed the physical climate risk at each property in DIR.UN’s portfolio against the following hazards: flooding, wildfire, windstorm, tornado, hailstorm, lightning, and earthquake, using third-party climate data

  • ESG impact and management

    Issued $850 million to date in Green Bonds using DIR.UN’s Green Financing Framework. In 2021, DIR.UN completed over $295 million in eligible green projects

  • Corporate governance

    Became one of the first Canadian public real estate companies to become an official supporter of the Task Force on Climate-related Financial Disclosures (TCFD)

  • ESG impact and management

    Launched the Net Zero Steering Committee, which includes executive representatives from across the Dream group of companies

(1) Existing and forecasted building areas as of September 30, 2022. Excludes Development Joint -Venture owned projects at owned share.

ESG Scorecard

Indicator 2019 2020 2021 Target
Energy
Energy consumption (ekWh)(2) see note(3) see note(3) 16,691,442
Annual MWh of renewable energy produced(4)(5) 2,507 2,975 6,119(6)
Cumulative on-site solar PV system capacity (kW)(5) 2,433 2,817 5,795(7)
Cumulative percentage of total floor area with on-site
renewable energy generation(5)(8)
3.7% 4.2% 5.8%(9)
GHG emissions(10)
Scope 1 emissions (tCO2e) see note(3) see note(3) 852(2)
Scope 2 emissions (tCO2e) see note(3) see note(3) 2,461(2)
Total GHG emissions (scope 1 and 2; tCO2e) see note(3) see note(3) 3,313(2)
Water
Annual water savings from climate-controlled irrigation (litres)(11) 15,667,000 13,331,000 10,712,000
Building lighting upgrades
Cumulative total floor area with LED lighting upgrades (sf)(12) 4,022,407 9,173,345
Green Buildings
Cumulative GLA of portfolio with green building certifications(sf) 472,123 472,123 1,601,587 Persue green building certifications for an additional 2.7 million sf (includes LEED, BREEAM, ZCB, BOMA or DGNB) by 2025 vs. 2020 baseline
Percentage of eligible portfolio with an energy rating(13) see note(3) 25% 49%
Percentage of portfolio with sustainable roofs(14) see note(3) 12% 20%
Number of EV charging stations(15) see note(3) see note(3) 93

(1) Excludes US Portfolio.
(2) Represents data coverage of 18% of utility meters in Canada paid for or controlled by DIR.UN. For buildings where there was no utility account information available, the number of meters was assumed based on the industry standards.
(3) Indicators tracked for the first time in 2021.
(4) Includes estimations from engineering calculations for some solar panel systems where production data was not provided.
(5) Includes capacity and production from rooftop solar PV that is owned by tenants or third parties or DIR.UN.
(6) Approximately, 95% of the annual MWh of renewable energy produced is from tenant-owned/third-party owned solar panels whereas the remaining 5% is from panels owned by DIR.UN.
(7) The total capacity includes DIR.UN-owned solar PV systems with capacity of 299 kW and third-party or tenant-owned solar PV systems capacity of 5,496 kW.
(8) Represents total GLA of buildings with rooftop solar PV system.
(9) The total square footage 2,011,717 sq. ft includes DIR.UN owned solar PV systems covering 392,366 sf and third-party or tenant-owned solar PV systems covering 1,619,351 sf.
(10) GHG emissions are calculated in accordance with the World Resource Institute Greenhouse Gas Protocol. Calculations in this table capture activities DIR.UN has direct and indirect operational control over:
Scope 1 emissions generated directly from its operations, including heating properties.
Scope 2 emissions indirectly associated with generation of purchased electricity, heating, cooling and steam consumed by properties.
(11) Data is based of 42 sites in Calgary.
(12) Historic numbers are updated to exclude T5 lighting and US Portfolio GLA to stay consistent with our future reporting.
(13) Represents 100% of GLA of floor area of properties in ENERGY STAR Portfolio Manager or have Energy Performance Certificates (EPC) ratings.
(14) Sustainable roofs include cool roofs and green roofs with vegetation.
(15) Includes EV chargers owned or installed by tenants.
(16) Includes only employees 100% dedicated to DIR.UN and excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave) and interns.
(17) Numbers represented as total head count, not full time equivalent.
(18) Turnover is calculated as a percentage of average employee headcount for 2021.
(19) Percentages are based on total headcount.
(20) Includes employees at all levels.
(21) Managers include Manager level and above.
(22) The Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of Dream Industrial REIT are employees of Dream Asset Management Corporation. For the purposes of this Report, we are including them under DIR.UN.

Environmental

DIR.UN’s approach to sustainability includes engaging tenants to uncover opportunities to enhance asset value and incorporate energy management initiatives into capital expenditures to increase energy efficiency throughout its portfolio and lower operational costs.

Solar Program Financial Returns

DIR.UN launched its Alberta rooftop solar feasibility program in 2020 as part of a program launched by Energy Savings for Business (ESB) via Emissions Reductions Alberta. In 2021 DIR.UN completed assessments of 11 potential projects and is proceeding with the installation of 7 rooftop solar projects.

To facilitate these projects, in 2021 DIR.UN conducted information sessions with its tenants to inform them of the opportunity to purchase renewable energy generated by DIR.UN, installed solar arrays for their operations, and amended leases to incorporate the recovery of renewable energy. Procuring solar power from DIR.UN provides tenants financial and sustainability benefits including cost certainty amid rising electricity rates, as well as mitigating greenhouse gas emissions from their energy usage. The estimated carbon dioxide equivalent (CO2e) savings over the lifetime of these seven Alberta projects will be 38,655 tonnes.

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ESG impact and management
Tenant relationships
Carbon and resource efficiency
Innovation and technology adoption

DIR.UN is also implementing an extensive solar program in the Netherlands, where it is executing on projects and continually expanding the inventory of projects to be assessed for on-site solar feasibility. The goal is to ensure all available government incentives are pursued while also preparing for future grid capacity requirements. DIR.UN currently has a total of 8 projects in execution in the Netherlands and 9 projects in its feasibility pipeline. The projects that are currently underway have a savings of 50,586 tCO2 over the lifetime of the projects.

In addition to the environmental benefits, the capital investment in solar projects is delivering a new and expanding revenue stream. The 15 projects that are currently underway will provide an unlevered return of 8% on an overall capital investment of $11.6 million, contributing to DIR.UN’s commitment to drive organic NOI and NAV growth in its portfolio.

Key Accomplishments

  • Net Zero Asset Managers logo
    As part of the Dream group of companies’ commitment(1), DIR.UN, is supporting the Net Zero Asset Managers (NZAM) Initiative, which is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius.
  • Principles for Responsible Investment logo
    As part of the Dream group of companies’ commitment(1), DIR.UN is supporting the United Nations Principles for Responsible Investment (UN PRI), which includes a group of more than 4,300 investment managers and asset owners from nearly 90 countries committed to developing a more sustainable global financial system.
  • Task Force on Climate-Related Financial Disclosures logo
    DIR.UN is an official supporter of the Task Force on Climate-related Financial Disclosures (TCFD) which provides guidance and recommendations to help companies provide better climate disclosures to support capital allocation. More than 2,300 companies support the TCFD and Dream is one of the first Canadian public real estate companies to become an official supporter.

(1) While DRM is the official signatory, DIR.UN will be an active participant and included in the boundary for reporting to the NZAM initiative and UN PRI as part of the Dream group of companies’ commitment.

Courtney Park Net Zero Development

As part of our Net Zero Action Plan, DIR.UN is targeting net zero by 2035 on all new developments and major renovations. DIR.UN has engaged an independent consultant to develop roadmaps to net zero by conducting an in-depth GHG audit, creating a calibrated energy model, and completing a Life Cycle Assessment (LCA) for its Courtney Park project, an industrial warehouse that is currently under construction and scheduled to be completed in 2024.

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Carbon and resource efficiency
Sustainable development
Innovation and technology adoption
ESG impact and management

In alignment with the Canada Green Building Council’s (CaGBC) Zero Carbon Building (ZCB) Design Standards and ZCB Performance Standards, DIR.UN is establishing its approach to developing this net zero base building warehouse through:

  • Upgrading the HVAC ventilation systems to the highest efficiency ERVs
  • Recovering 90% of heat exhausted
  • Full HVAC electrification
  • Installation of a rooftop solar array
  • Procuring renewable energy credits (RECs) and carbon offsets

For other new industrial warehouse developments, DIR.UN is also undertaking an architectural design review to assess how low carbon materials, such as mass timber and low carbon concrete, can reduce the embodied carbon of an industrial warehouse development, while maintaining a high level of marketability for the building.

Social

DIR.UN’s strength as an organization comes from our strong and diverse workforce. Our employees possess expertise in a wide variety of areas that benefit our business, from real estate management and development to capital markets, risk, insurance and many more.

Tenant Engagement

DIR.UN conducted a tenant engagement and satisfaction survey in 2021 to benchmark and enhance tenant satisfaction.

Sustainability-related questions have been incorporated into the survey to help us to better understand tenant sustainability preferences, identify priority assets for sustainability investments, such as rooftop solar and EV charging stations, and provide insight into opportunities to broker new sustainability-related partnerships. As part of this process,
we are holding feedback sessions with tenant sustainability teams to discuss results and develop action plans.

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Tenant relationships

  • 71% have shown interest in using renewable energy for their energy requirements. Dream Industrial’s progress in roof top solar projects and continuous research and analyses on other sources of renewable energy will address the interest of our tenants in getting access to cleaner forms of energy.
  • 80% are interested in pursuing LED retrofits in their premises, which will inform our LED retrofit planning.
  • 64% of respondents have expressed interest in green building certifications, which we will align with our green certification program for our portfolio.
  • 55% are interested in installing EV charging stations at their buildings.

DIR.UN Employee Gender Breakdown(1)(2)

(1) Includes only employees 100% dedicated to DIR.UN and excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term disability, parental leave) and interns.
(2) Numbers represented as total head count, not full time equivalent.
(3) Includes employees at all levels.
(4) Managers include Manager level and above.
(5) The Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of Dream Industrial REIT are employees of Dream Asset Management Corporation. For the purposes of this Report, we are including them under DIR.UN.

Governance

As part of the ESG Framework, DIR.UN links ESG performance to executive and employee goals and compensation.

Sustainability at DIR.UN is managed by the following:

Zibi Boardroom - 30 Adelaide - Toronto, ON
Zibi Boardroom – 30 Adelaide – Toronto, ON

Case Studies

Sustainability Reports