Dream Residential REIT Reports Q3 2025 Financial Results

Core Insights - Dream Residential REIT reported Q3 2025 financial results, highlighting a net operating income increase and a strategic acquisition agreement with Morgan Properties [1][3][43] Financial Performance - Comparative properties net operating income (NOI) was $6.4 million in Q3 2025, a 4.5% increase from Q3 2024, driven by a 3.0% rise in investment properties revenue [3][6] - Net rental income for Q3 2025 was $7.8 million, consistent with the prior year [3][7] - Diluted funds from operations (FFO) per Unit remained at $0.18 for Q3 2025, unchanged from Q3 2024 [3][5] - Total equity decreased to $172.8 million as of September 30, 2025, down from $240.5 million at the end of 2024 [6][14] Portfolio and Occupancy - Portfolio occupancy was 93.7% as of September 30, 2025, down from 95.2% at the end of Q2 2025 [3][8] - Average monthly rent increased to $1,195 per unit from $1,186 at the end of Q2 2025 [3][9] - Tenant retention ratio improved to 59.9% in Q3 2025 compared to 57.4% in Q2 2025 [10][8] Strategic Developments - The strategic review concluded with an agreement for Morgan Properties to acquire Dream Residential REIT for $10.80 per unit in an all-cash transaction [3][43] - The acquisition was approved by unitholders on October 16, 2025, and received court approval on October 21, 2025 [3][44] Value-Add Initiatives - Renovations were completed on 13 units in the Greater Cincinnati region during Q3 2025, with an average new lease trade-out of $232 per unit higher than expiring leases [11][3] Financing and Capital Structure - As of September 30, 2025, net total debt-to-net total assets was 38.2%, with total debt at $146.5 million [13][40] - Available liquidity was approximately $61.6 million, consisting of $7.6 million in cash and $54 million in an undrawn credit facility [13][36]