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.
2023 Highlights
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Improvedenergy efficiency through LED retrofits at 5 properties in Ohio and Oklahoma
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Completed
water fixture upgrades across 410 unit renovations in Oklahoma and Texas to improve water efficiency
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100%coverage rate of 2023 resident survey
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Completedinaugural Principles for Responsible Investment (“PRI”) submission and achieved scores above the PRI median in two out of three modules(1)
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Completed
second annual reporting requirements for the Net Zero Asset Managers (“NZAM”) initiative(1)
(1) DRM completed the submission of behalf of the Dream group of companies.
ESG Scorecard
| Indicator | 2022(1) | 2023 | YoY% Change | |
| Energy | ||||
| Energy Consumption (ekWh)(2) | 3,477,297 | 6,438,182 | 85% | |
| Water | ||||
| Water Consumption (m³) | 371,888 | 515,923 | 39% | |
| GHG Emissions(3) | ||||
| Scope 1 Emissions (tCO2e) | 399 | 814 | 104% | |
| Scope 2 Emissions (tCO2e) | 515 | 798 | 55% | |
| Total Scope 1 and 2 GHG Emissions (tCO2e) | 914 | 1,612 | 76% | |
| Scope 3 Emissions (tCO2e) | 196 | 538 | 174% |
| Indicator | 2023 |
| Employees(9)(10)(11) | 86 |
| Women executives(13) | 46% |
| Indicator | 2022(5) | 2023(6) |
| Women Directors | 40% | 40% |
| Independent Directors | 60% | 60% |
(1) Covers data from DRR.U’s incorporation in May 2022 to end of December 2022.
(2) Energy consumption reflects energy consumed within organizational control. Please refer to the Supplementary Disclosures ↗ section in the Sustainability Report for additional details, including data coverage.
(3) 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).
(4) Based on DRR.U employees of Pauls Corp.
(5) Board composition as at December 31, 2022.
(6) Board composition as at December 31, 2023.
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’s energy conservation program is focused on identifying and implementing sustainable practices and cost-effective retrofits that benefit its communities, customers, and employees as well as reduce energy consumption and GHG emissions across its portfolio.
Dream Residential’s water conservation programs aim to minimize its use of potable water and decrease water consumption where possible through fixture retrofits and efficiency upgrades. It also incorporates the planting of native and drought-tolerant species across the properties during landscaping to reduce the amount of potable water required for irrigation, wherever possible. Through water audits and site visits by trained professionals, it continues to evaluate various water conservation opportunities including smart irrigation systems, low-flow fixtures and other system upgrades such as water conservation valves, as well as increasing resident awareness.
In 2023, Dream Residential continued to make progress on increasing data coverage and quality for operational and tenant utility data and associated GHG emissions. Dream Residential’s Scope 1 and 2 operational GHG emissions from a typical asset come from exterior and common area lighting, and heating and cooling of shared spaces. The key category of Dream Residential’s Scope 3 GHG emissions is tenant utility consumption.
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 Dream Residential 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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Highest-level executive with oversight over ESG and impact matters, including sustainability and climate change, at
Dream ResidentialWorks with the Chief Financial Officer to provide leadership over the sustainability strategy and oversee adoption of the
ESG Framework -
ESG Executive Committee (Members of the Executive Leadership team from each Dream entity)
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Receive regular updates from the Sustainability and ESG team on behalf of all departments and the sustainability
working groupsAdopt ESG Framework for Dream Residential
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 with 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 Groups
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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
Disclosure Frameworks
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Principles for Responsible Investment ↗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, on behalf of the Dream group of companies, became a signatory to the PRI in 2021, and completed the inaugural submission in 2023. -
United Nations Principles for Responsible Investment ↗The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. There are 17 goals in total which provide a shared blueprint to achieve the 2030 goals. The Dream group has identified relevant SDGs throughout its investment strategy and considers how projects may contribute to the achievement of these goals. In particular, the Dream group of companies is dedicated to building safe, resilient, inclusive, and sustainable cities – expressed by Goal 11. -
Taskforce on Climate-related Financial Disclosures ↗In 2021, Dream Unlimited became an official supporter of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. To align with TCFD recommendations and enable appropriate oversight, Dream Unlimited 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 Unlimited prepares for the implications of climate change and climate-related financial disclosures. -
Net Zero Asset Managers ↗The Net Zero Asset Managers (NZAM) initiative is an alliance of global asset managers committing to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with the global efforts to limit warming to 1.5 degrees Celsius. As one of the first Canadian companies to join the NZAM initiative, Dream Unlimited, on behalf of the Dream group of companies, made its initial target disclosure in 2022. In 2023, 69% of the Dream group of companies’ total assets under management were committed to be managed in line with net zero by 2050, an increase from 61% in 2022.(1)
Sustainability Reports
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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.
