Dream Residential Real Estate Investment Trust (TSX: DRR.U) (Dream Residential, or DRR.U) is an unincorporated, open-ended real estate investment trust.
Dream Residential owns and operates a portfolio of garden-style multi-residential properties primarily located in three attractive, high-growth markets across the Sunbelt and Midwest regions of the United States.
Dream Residential owns and operates a portfolio of garden-style multi-residential properties primarily located in three attractive, high-growth markets across the Sunbelt and Midwest regions of the United States.
Dream Residential REIT completed its initial public offering (IPO) on May 6, 2022 to acquire a portfolio of 16 garden-style multi-residential properties located in the United States consisting of 3,432 units. The properties target mid-market renters across the Sunbelt and Midwest markets in the U.S., including the Greater Dallas-Fort Worth region, Greater Oklahoma City region, and Greater Cincinnati region.
2021/2022 Highlights
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Completed energy auditsat all 16 Dream Residential properties
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97% data coverage
for water(2)
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97% data coverage
for electricity(2)
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33%of executives are women(3)
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43%
of executives are men(4)
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Hosted regular resident events
to promote inclusivity focused on holidays, cultural themes, seasons or local events
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Increased alignment to the TCFD recommendationsby integrating responsibility of ESG and impact matters into corporate governance
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Achieved ‘Low’ risk rating, among top 11%
of all companies assessed by Sustainalytics(5) -
Hosted board education sessions
on ESG and climate-related risks and opportunities
(1) Includes Scope 1 and Scope 2 emissions.
(2) Represents utility accounts under DRR.U’s operational control.
(3) For the purposes of this Report, executives includes the CEO, CFO and COO of DRR.U.
(4) Based on DRR.U employees of Pauls Corp.
(5) Based on pre-IPO Corporate ESG Assessment Copyright ©2023 Sustainalytics. All rights reserved. This report contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.
(6) As at December 31, 2022.
ESG Scorecard
| Indicator | 2022 | |
| Energy | ||
| Energy Consumption (ekWh)(3) | 3,477,297 | |
| Water | ||
| Water Consumption (m³) | 371,888 | |
| GHG Emissions(4)(5) | ||
| Scope 1 Emissions (tCO2e) | 399 | |
| Scope 2 Emissions (tCO2e) | 515 | |
| Total GHG Emissions (Scope 1 and Scope 2 tCO2e) | 914 | |
| Scope 3 Emissions (tCO2e) | 196 |
| Indicator | 2022 |
| Women Trustees | 40% |
| Independent Trustees | 60% |
(1) Covers data since DRR.U’s incorporation in May 2022.
(2) DRR.U is currently collecting data for energy, GHG emissions, and water.
(3) Energy consumption reflects energy consumed within organizational control. Please refer to Supplementary Disclosures section for additional details, including data coverage.
(4) GHG emissions are calculated in accordance with the World Resource Institute Greenhouse Gas Protocol. Calculations in this table capture activities DRR.U 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. Scope 3 emissions reported are associated with category 13 (downstream leased assets).
(5) Please refer to Supplementary Disclosures section for more information.
(6) As at December 31, 2022.
Environmental
As an owner and property manager, Dream Residential integrates sustainability into the design and operations of all its buildings and communities. Dream Residential is executing impactful capital planning initiatives that improve both the environmental footprint and the tenant experience in its buildings.
Resource Management
Dream Residential is working to achieve energy efficiency and reduce GHG emissions through capital investments.
In 2022, Dream Residential conducted energy audits across all communities. The energy audits estimated and benchmarked baseline energy and water consumption and analyzed dozens of potential projects, including identifying water and LED lighting retrofit projects lead to significant energy and water savings. Based on the results of these audits, Dream Residential is investing in energy efficient capital upgrades in 2023 to improve the performance of its assets. The energy audits will also inform Dream Residential’s path toward meeting its net zero commitments. In 2022, Dream Residential conducted ASHRAE Level 1 energy audits across all communities.
Dream Residential has established a robust strategy to collect, monitor and track energy, Scope 1 and Scope 2 GHG emissions. Utility invoices are collected and processed through a data analytics software. The comprehensive data set is collected in accordance with the World Resource Institute’s GHG Protocol standard. Dream Residential collects and discloses information in an alignment with an internal controls framework that standardizes the collection, measurement, and review of ESG data across the portfolio.
(1) As at March 2023. Copyright ©2023 Sustainalytics. All rights reserved. This report contains information developed by Sustainalytics (www. sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www. sustainalytics.com/legal-disclaimers.
Social
Dream Residential has a US-based human resources team to help support and grow its team during its first year of operation. This team is responsible for employee engagement, professional development, and ensuring that employees feel supported and engaged in their roles.
Dream Residential Gender Breakdown(1)
(1) Based on DRR.U employees of Pauls Corp.
(2) For the purposes of this report, Executives include: the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer of DRR.U.
Governance
As part of the ESG Framework, Dream Residential links ESG considerations to executive goals and compensation.
Sustainability and ESG-related matters at DRR.U is managed by the following:(1)
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Board of Trustees
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The DRR.U board is responsible for the oversight of ESG matters and has delegated such oversight to the Governance, Compensation and Environmental Committee
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Governance, Compensation and Environmental Committee
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Oversee approach to environmental, social, governance and impact investing matters
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Chief Executive Officer
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Provide oversight of sustainability and ESG
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ESG Executive Committee
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(Members of the Executive Leadership team from each Dream entity)
Adopt ESG Framework for DRR.U
Communicate sustainability strategy and commitment across company and key external stakeholders
Delegate implementation to Sustainability and ESG team
Reports to the Governance, Compensation and Environmental Committee
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Sustainability and ESG Team
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Embed sustainability strategy and commitment across company and key external stakeholders
Oversee the implementation of the ESG Framework for each Dream entity
Manage portfolio sustainability initiatives including building certifications, energy, water and waste management and monitoring, as well as strategic initiatives
Meet quarterly with the ESG Executive Committee
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Sustainability Working Group
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Responsible for advancing sustainability initiatives and activities at company and property level
Works across departments to embed sustainability within operations
Discussion topics include green property operations, employee engagement, and tenant engagement
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Investment Committee
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Review the investment’s Acquisition Checklist and approve investments that meet both financial and impact goals
Hold the project team accountable to achieve goals and create impact
(1) The responsibilities set out in this section are for illustrative purposes only, reflect certain relevant ESG matters, and do not purport to reflect the full extent of responsibilities or the full mandate of any of the board, committees or teams referred to in this section.
Disclosure Frameworks
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Operating Principles for Impact Management ↗The United Nations Principles for Responsible Investment (PRI) is the world’s leading responsible investor collaboration. It supports its signatories to incorporate ESG factors into their investment and ownership decisions. Signatories commit to follow PRI’s six principles and report annually on their progress through the PRI Reporting Framework. Dream Unlimited became a signatory to the PRI in 2021 and will report on its responsible investment
activities, with the support of Dream Residential, starting in 2023. -
Taskforce on Climate-related Financial Disclosures ↗During the formation of Dream Residential, based on the TCFD
recommendations, ESG and impact matters were integrated into the corporate
governance of the REIT.
Dream Residential became an official sponsor of the TCFD recommendations in 2022. To align with TCFD
recommendations and enable appropriate oversight, Dream Residential hosted board education sessions to increase understanding
of ESG and climate-related risks and opportunities. To strengthen oversight, responsibility for ESG and impact matters was formally integrated into corporate board governance. Scenario analysis was also completed, which is a
corporate strategy and risk/opportunity identification exercise to evaluate how
Dream Residential prepares for the implications of climate change and climaterelated
financial disclosures.
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(1) Assets under management as at June 30, 2022.
Sustainability Reports
- Previous Years +
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Policies
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Disclosure Policy
The objective of our disclosure policy is to ensure that communications to the investing public about DRR are timely, factual and accurate, and disseminated in accordance with all applicable legal and regulatory requirements.
Code of ConductOur Code of Conduct (the “Code) is DRR’s statement of the values and principles that guide day-to-day business activities. The keystones are: integrity, respect, fairness, accountability and transparency. The Code supports DRR’s commitment to operate the business at the highest level of legal, moral and ethical standards. The Code applies to all directors, officers and employees of Dream Residential REIT.
Whistleblower PolicyDRR is steadfast in its commitment to maintaining the highest business and personal ethical standards by dealing openly and honestly with investors, tenants, suppliers and employees. The Whistleblower Policy marries this commitment to that of securities laws and regulations with respect to accounting standards and internal control standards. DRR has contracted EthicsPoint Inc., an independent service provider, to manage any complaints or concerns on its behalf. This service reports directly to the Audit Committee of Dream Residential REIT. and is available seven (7) days a week, 365 days a year. Any concerns may be reported directly, confidentially, and, if preferred, anonymously, through www.ethicspoint.com.
Majority Voting PolicyThe Corporation has a majority voting policy, requiring that each Director nominee receive the support of a majority of the total number of votes cast by the shareholders entitled to elect such Director nominee, failing which such Director shall submit his or her resignation to the Board for consideration.
Diversity Inclusion u0026 Advancement CommitmentDRR always invests with purpose, embracing creativity and diversity, passion and innovation, while positively impacting communities and the world.
Board Diversity PolicyDRR seeks to maintain a Board comprised of talented and dedicated directors whose skills and backgrounds reflect the diverse nature of the business environment in which it operates. Accordingly, the composition of the Board is intended to reflect a diverse mix of skills, experience, knowledge and backgrounds, including an appropriate number of women directors.
