-
29properties(1)(2)
-
85.7%portfolio occupancy rate including committed(1)(3)
-
5.4M sfof gross leasable area (GLA)(1)(2)
-
5.3 yrsweighted average lease term(1)(3)
Dream Office REIT (TSX:D.UN) is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. D.UN has carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world.
(1) As at September 30, 2022.
(2) Excludes investments in joint ventures which are equity accounted.
(3) Excludes properties under development and joint ventures which are equity accounted.
(2) Excludes investments in joint ventures which are equity accounted.
(3) Excludes properties under development and joint ventures which are equity accounted.
D.UN is proud to report that 97% of its Canadian properties over 100,000 square feet are BOMA BEST certified with operating standards requiring ongoing management of energy, water and waste. Additionally, D.UN is raising the bar and challenging our sites to achieve a BOMA Gold Certification standard across the portfolio moving forward.
2021 Highlights
-
ESG impact and managementD.UN, as part of Dream’s overarching agreement with the Canada Infrastructure Bank, received an investment commitment of a $113 million over five years for deep building retrofits at properties across Ontario and Saskatchewan. The investment will reduce emissions by 30% and create 1,500 jobs over 5 years
-
Certifications
Achieved LEED Gold certification at Sussex Centre in Mississauga, Ontario
-
Health, safety and wellness
Recognized as Canada’s largest commercial portfolio to earn the WELL Health-Safety Rating
-
Climate change resilienceAssessed the physical climate risk at each property in D.UN’s portfolio against the following hazards: flooding, wildfire, windstorm, tornado, hailstorm, lightning, and earthquake, using third-party climate data
-
Innovation and technology adoption
Completed real-time metering projects at 12 properties
-
Carbon and resource efficiency
350 Bay Street won BOMA Toronto’s 2021 Building Challenge Top Reducer Award as part of the Beyond Earth Hour Challenge
-
Government collaborationJoined the City of Toronto Green Will Initiative to support Toronto-based best practices for low carbon buildings and operations
-
Community/NGO partnerships
Partnered with ArtworxTO, as part of Toronto’s Year of Public Art 2021-2022, to support the Project Reframed Initiative, which aims to highlight and empower local, emerging BIPOC artists. In partnership with ArtworxTO, Dream Office REIT and Dream Unlimited unveiled a seven-storey portrait photograph by emerging artist, Jorian Charlton, in the heart of Toronto’s Financial District
-
Government collaboration
Recognized as a Green Lease Leader (Gold) by the Institute for Market Transformation and the US Department of Energy Better Buildings Alliance
-
ESG impact and managementLaunched the Net Zero Steering Committee, which includes executive representatives from across the Dream group of companies
-
Valuing employees
As part of an initiative pursued by the entire Dream Group of Companies, D.UN conducted an employee engagement survey to better understand employee
satisfaction across a variety of topics -
Corporate governance
Achieved a five-star rating, which is a recognition of D.UN’s placement in the top 20% of the GRESB* benchmark
ESG Scorecard
| Indicator | 2020 | 2021 | YoY% change(2) | On track for target | Target | |
| Energy | |||||
| Energy consumption (ekWh) | 141,298,958 | 146,268,282 | 4% | √ | |
| Energy intensity (ekWh / sq. ft.) | 21.8 | 22.5 | 3% | ||
| Water | |||||
| Water Consumption (m3) | 274,097 | 258,502 | -6% | √ | |
| Water intensity (m3/sq. ft) | 0.042 | 0.039 | -7% | ||
| GHG Emissions(3) | |||||
Scope 1 emissions (tCO2e) |
9,121 | 9,969 | 9% | ||
Scope 2 emissions (tCO2e) |
12,162 | 10,853 | -11% | ||
Total GHG emissions (Scope 1 and 2 tCO2e) |
21,283 | 20,822 | -2% | √ | |
GHG emissions intensity (kgCO2e/sf) |
3.3 | 3.21 | -3% | ||
| Waste(3)(4) | |||||
| Waste to landfill (tonnes) | 430 | 502 | 17% | ||
| Waste diverted (tonnes) | 565 | 315 | -44% | ||
| Total waste generated (tonnes) | 995 | 817 | -18% | ||
| Waste diversion | 57% | 39% | -32% | | |
| Certifications and ratings | |||||
| Percent of portfolio with green building certification | 93% | 97% | 4% | | |
| Percent of eligible portfolio with an energy rating(5) | 83% | 94% | 13% |
| Indicator | 2019 | 2020 | 2021 |
| Employees(6)(7) | 211 | 210 | 222 |
| Voluntary turnover rate(8) | 30% | 9% | 16% |
| Women employees(9)(10) | 38% | 40% | 44% |
| Women managers(9)(11) | 45% | 45% | 47% |
| Women executives(9)(12) | 0% | 0% | 0% |
| Indicator | 2019 | 2020 | 2021 |
| Women trustees | 43% | 50% | 50% |
| Independent trustees | 71% | 75% | 75% |
(1) Unless otherwise stated, each year’s energy, GHG, water, waste, building certification and energy rating data is based on the relevant Canadian properties owned for the full calendar year where D.UN pays the utility bills. Excludes assets that are sold and under developments and major renovations. Co-owned assets are included at 100% of GLA.
(2) GHG emissions are calculated in accordance with the World Resource Institute Greenhouse Gas Protocol. Calculations in this table capture activities D.UN has direct and indirect operational control over:
Scope 1 emissions generated directly from its operations, including heating with D.UN’s properties
Scope 2 emissions indirectly associated with generation of purchased electricity, heating, cooling and steam consumed by properties
(3) Data coverage represents 89% of D.UN’s portfolio in 2019, 80% of D.UN’s portfolio in 2020 and 97% of D.UN’s portfolio in 2021. We continue to strive to improve our data coverage.
(4) Includes 100% of waste generated at Sussex Centre which is a co-owned asset by D.UN and MPCT.UN.
(5) Represents the percentage of portfolio based on sf using ENERGY STAR Portfolio Manager (ESPM).
(6) Includes only employees 100% dedicated to Dream Office REIT and shared services functions for the Dream entities. Excludes employees on unpaid leaves of absence (e.g., permanent disability, long-term
disability, parental leave) and interns.
(7) Numbers represented as total head count, not full time equivalent.
(8) Turnover is calculated as a percentage of average employee headcount for 2021.
(9) Percentages are based on total headcount.
(10) Includes employees at all levels.
(11) Managers include Manager level and above.
(12) For the purposes of this graph, Executives include: the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of Dream Office REIT.
Environmental
D.UN takes pride in working to meet its environmental targets and objectives and creating inclusive, healthy spaces. Prioritizing efficient and livable buildings has always been a core value and connects to D.UN’s mission to Build Better Communities.
36 Toronto’s Net Zero Roadmap
The historically significant 36 Toronto Street was selected for D.UN’s first detailed net zero roadmap as part of the Canada Infrastructure Bank’s (CIB) Commercial Building Retrofits Initiative. This initiative aims to decarbonize and modernize existing buildings and support the low carbon economy. Located just steps away from the core of the Financial District, 36 Toronto Street offers prime Class A office and retail space in a beautifully restored and renovated historical building.
To create a baseline of greenhouse gas (GHG) emissions for 36 Toronto Street, D.UN engaged an independent consultant to verify 2019 emissions, conducted an in-depth GHG audit, created a calibrated energy model using eQuest, and produced a comprehensive ASHRAE Level 2 Energy Audit, including 11+ energy conservation measures for consideration. The energy model became a powerful tool allowing D.UN’s teams to effectively explore the impact of numerous project and system combinations, including evaluating the impact of GHG, energy and water reductions, capital costs, and utility costs savings.
ESG impact and managementCarbon and resource efficiency
Building Certifications(1)
-
96%BOMA BEST certification of
all Canadian properties -
17%LEED certified buildings, downtown Toronto -
91%WELL certified buildings
(1) The chart is based on GLA of assets as of December 31, 2021 including all Canadian properties at 100% of GLA.
Key Accomplishments
-
As part of the Dream group of companies’ commitment(1), D.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.
-
As part of the Dream group of companies’ commitment, D.UN is supporting the United Nations Principles for Responsible Investing (UN PRI) initiative, 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.
-
D.UN is an official supporter of the Task Force for 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, D.UN will be an active participant in the reporting to the NZAM initiative and UN PRI as part of the Dream group of companies’ commitment.
Social
D.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.
Return to Operations Plans: Supporting our Tenants to Return to Work Safely
As we continue navigating the COVID-19 pandemic, keeping our tenants safe at work is our number one priority.
Over the last year, we improved tenant-facing Return to Operations plans to help ensure the safe return of tenants to our office buildings. As part of these plans, we’ve prepared our buildings with numerous safety measures to ensure a safe and healthy workplace for our tenants and their employees.
Health, safety and wellnessTenant relationships
We have implemented a variety of enhancements including increased cleaning measures, new operational safety checks, building employee PPE, HVAC upgrades, UV lights and behavioural and directional signage. We’ve also acquired some of North America’s leading safety designations including WELL Health-Safety ↗ and Post Promise ↗.
D.UN Employee Gender Breakdown
(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, D.UN links ESG performance to executive and employee goals and compensation.
We are proud to share that D.UN achieved a five-star rating for the second consecutive year in the 2022 Global Real Estate Sustainability Benchmark (GRESB)* real estate assessment. Dream Office REIT achieved an impressive score of 92/100. The 2022 GRESB* real estate assessment covered the reporting period January 1 – December 31, 2021. This score exceeds the GRESB* average of 74/100 and can be attributed to excellent performance in Leadership, Policies, Reporting, Targets and Data Monitoring & Review.
Established in 2009, GRESB* has become the leading ESG benchmark for real estate and infrastructure investments across the world, trusted by 170 institutional and financial investors to inform decision-making and covering USD 6.9 trillion of AUM and 150,000 individual assets.
Corporate governance
Sustainability at D.UN is managed by the following:
-
Governance, Environmental and Nominating Committee
+
Provides oversight of sustainability at the Board level
-
ESG Executive Committee
+
Adopts ESG Framework for each Dream entity
Communicates sustainability strategy and commitment across company and key external stakeholders
Delegates implementation to D.UN’s Sustainability and ESG team
Reports to the Compensation, Health and Environmental Committee
-
Head of Sustainability
+
Oversees the implementation of the ESG Framework for each Dream entity
Embeds sustainability strategy and commitment across company and key external stakeholders
Reports to the ESG Executive Committee on a quarterly basis
-
Sustainability and ESG Team
+
Oversees and manages portfolio sustainability initiatives, including, building certifications, energy, water and waste management and monitoring, as well as strategic initiatives
Meets quarterly with the ESG Executive Committee
-
Sustainability Working Groups
+
Responsible for advancing sustainability initiatives and activities at company and property level.
Includes four working groups covering the following focus areas: Green Property Operations, Employee Engagement, Tenant Engagement, Reporting and Communications
Includes representatives from central functions, regions and properties
Each group reports monthly to the Sustainability and ESG team
Environmental
BOMA Beyond Earth Hour Challenge
D.UN’s 350 Bay Street was the Top Reducer of this year’s Beyond Earth Hour Challenge, which saw buildings compete to reduce energy use over a 60-hour weekend period. Hosted by BOMA Toronto, the Challenge evaluated competitors in two categories: Building and Tenant. This was the second D.UN property to win BOMA’s Beyond Earth Hour Challenge. In 2020, 67 Richmond Street West won for impressive energy reductions over the earth hour weekend.
Environmental
Smart Building Pilot
In 2020, we continued our Smart Building Pilot project at 80 Richmond Street West in Toronto to reposition this 80-year-old asset as a technological market leader. Despite delays caused by the COVID-19 pandemic, the new Building Automation System (BAS), Smart LED lighting, upgraded tenant workplace experience app and advanced indoor air quality sensors are nearing completion. The pilot also involves modernizing the HVAC system to the latest standards and adding a variety of energy management and people counting technology features to optimize operations and improve tenant comfort. In early 2022, we expect the project to move into the testing and commissioning phase, getting real world feedback from our tenants and building operators.
80 Richmond Street West is also currently undergoing certification under the BOMA BEST Smart Buildings program as well as WiredScore’s SmartScore certification. These new certifications sets a global standard for how to measure smart buildings while also guiding owners and managers on digital transformation within the built environment. In 2021, we will also finish developing a new Digital Transformation standard that will apply to future construction projects as well as serve as a benchmark for our existing assets. This standard includes requirements for base building networks, converged operations platforms, sub-metering and security systems as well as the outcomes from the Smart Building Pilot at 80 Richmond.
Social
WELL Health-Safety Rating
In 2021, Dream Office was recognized as Canada’s largest commercial portfolio to earn the WELL Health-Safety Rating for 25 buildings across Canada totalling 4.6 million square feet. Our property management teams have implemented a wide range of protocols and design solutions to ensure a safe and healthy return as part of our Return to Operations plans for tenants. This includes upgraded air filtration systems, enhanced cleaning protocols and reducing contact with high-touch surfaces, which all meet rigorous and thorough criteria set out by the International WELL Building Institute.
Social
ArtworxTO
Dream is proud to be a supporter, as part of ArtworxTO’s Year of Public Art, of the initiative Project Reframed, which aims to highlight and empower local, emerging BIPOC artists. As part of ArtworxTO’s Year of Public Art, through the initiative Project Reframed, Dream Office REIT and Dream Unlimited unveiled a large-scale, seven-storey portrait photograph by emerging artist Jorian Charlton in the heart of the Financial District.
The stunning artwork adorning 330 Bay Street and the largest to date among the Year of Public Art pieces unveiled in 2021, spanning 3,000 sq. ft. and climbing 70 ft. high. The art will be on display until Spring 2022, as construction is underway on the building to modernize its façade.
An up-and-coming artist, Charlton is best known for her portrait photography and innate ability to capture intimate moments. Her experiences as a Jamaican-Canadian have informed her work, culminating in her distinct style that effortlessly fuses fashion, identity, and beauty with black representation.
Social
UVC light sanitation in elevators
As part of our Return to Operations plans, we have installed UV sanitation ventilation fans to keep people safe while using the elevators in our buildings. These units consist of ventilation fan and fluorescent UVC lamps, which work together to continuously draw in air, treat it with UV light to kill 99.9% of viruses and bacteria and expel clean, sanitized air into the elevator.
Sustainability Reports
-
2021 D.UN Sustainability Update Report
↗ -
2021 Dream Group of Companies Sustainability Update Report
↗
- Previous years +
-
Policies
+
Declaration of Trust
Dream Office REIT’s Declaration of Trust governs our operations and includes such topics as investment guidelines and operating policies, financing restrictions, units and distributions, and the responsibilities and obligations of the Trustees.
Disclosure PolicyThe objective of our disclosure policy is to ensure that communications to the investing public about Dream Office REIT are timely, factual and accurate, and disseminated in accordance with all applicable legal and regulatory requirements. The policy covers topics including trading restrictions and blackout periods, confidentiality, and designated spokespersons. This policy applies to all trustees, officers and employees of Dream Office REIT and its subsidiaries, including trusts and partnerships in which Dream Office REIT owns directly or indirectly at least a 50% equity interest.
Code of ConductOur Code of Conduct (the “Code) is our statement of the values and principles that guide us in our day-to-day business activities. The keystones are: integrity, respect, fairness, accountability and transparency. The Code supports our commitment to operate our business at the highest level of legal, moral and ethical standards. The Code applies to all trustees, officers and employees of Dream Office REIT and subsidiaries.
Whistleblower PolicyAt Dream Office REIT, we are steadfast in our commitment to maintaining the highest business and personal ethical standards by dealing openly and honestly with our investors, tenants, suppliers and employees. With our Whistleblower Policy we marry this commitment to that of securities laws and regulations with respect to accounting standards and internal control standards. We have contracted EthicsPoint Inc., an independent service provider, to manage any complaints or concerns on our behalf. This service reports directly to the Audit Committee of Dream Office 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 Trust has a majority voting policy, requiring that each Trustee nominee receive the support of a majority of the total number of votes cast by the unitholders entitled to elect such Trustee nominee, failing which such Trustee shall submit his or her resignation to the Board for consideration.
Diversity Inclusion & Advancement CommitmentAs one of Canada’s leading real estate companies, we always invest with purpose, embracing creativity and diversity, passion and innovation, while positively impacting our communities and the world around us.
Board Diversity PolicyDream seeks to maintain a Board comprised of talented and dedicated trustees whose skills and backgrounds reflect the diverse nature of the business environment in which Dream 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 trustees.
* All intellectual property rights to this data belong exclusively to GRESB B.V. All right reserved. GRESB B.V. has no liability to any person (inclusing a natural person, corporate or unincorporated body) for any losses, damages, costs, expenses or other liabilities suffered as a result of any use of or reliance on any of the information which may be attributed to it.