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Dream Industrial REIT Announces C$250 Million Green Bond Offering With Issuance of 5-Year Series D Senior Unsecured Debentures at an Effective Fixed Interest Rate Of 0.54%

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This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.

NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH U.S. NEWS OR WIRE SERVICES

TORONTO, November 23, 2021--(BUSINESS WIRE)--Dream Industrial REIT (TSX: DIR.UN) (the "Trust") announced today that it has priced a private placement of senior unsecured debentures (the "Offering") consisting of C$250 million principal amount of 2.539% Senior Unsecured Debentures, Series D maturing on December 7, 2026 (the "Series D Debentures"). The Offering is the Trust’s second "green bond", following the C$400 million Series C Debentures issued in June 2021.

The Series D Debentures are being offered on an agency basis by a syndicate of agents led by TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc. and National Bank Financial Inc. The Series D Debentures are being offered on a private placement basis in each of the provinces of Canada in reliance upon exemptions from the prospectus requirements under applicable securities legislation.

Upon closing of the Offering, the Trust plans to convert the proceeds into Euros through cross-currency interest rate swap arrangements, which is expected to result in an effective fixed interest rate of 0.541%. The closing of the Offering is expected to take place on December 6, 2021.

The Series D Debentures will be issued at a price equal to $1,000 per $1,000 principal amount and bear interest at a rate of 2.539% per annum and will mature on December 7, 2026. Interest is payable on the Series D Debentures on June 7 and December 7 of each year commencing June 7, 2022. The Series D Debentures will be direct senior unsecured obligations of the Trust and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust, except to the extent prescribed by law.

The Series D Debentures are expected to be rated BBB (stable) by DBRS Limited. An amount equal to the net proceeds from the Offering is expected to be utilized to finance and/or refinance eligible green projects within the meaning of the Trust’s Green Financing Framework ("Framework") established in June 2021. Prior to allocation of the net proceeds of this Offering to eligible green projects, the net proceeds may be initially used to fund future acquisitions and development costs, repay existing indebtedness, and for general trust purposes. The Trust’s Framework has been reviewed by DNV, a global leader in pioneering green, social, and sustainable frameworks, and is aligned with the International Capital Markets Association Green Bond Principles 2018 and the Loan Market Association Green Loan Principles 2021.

"We continue to incorporate sustainability and impact investing principles to how we do business and create long term value for our stakeholders," said Brian Pauls, Chief Executive Officer of Dream Industrial REIT. "We have already allocated or committed the entire proceeds of our existing $400 million Green Bond issued earlier this year, well ahead of schedule. We continue to see significant opportunities to add energy efficient buildings to our portfolio through our acquisition program and rapidly expanding development pipeline, while also investing in energy efficient lighting, sustainable roofing as well as renewable power infrastructure within our existing portfolio."

The Series D Debentures have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer or sale of the Series D Debentures in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Series D Debentures will not be listed on any stock exchange and there will be no market for such securities. The Series D Debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States and may not be offered or sold to other persons who are not residents of a province of Canada.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series D Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Dream Industrial Real Estate Investment Trust

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at September 30, 2021, Dream Industrial REIT owns, manages and operates a portfolio of 221 industrial assets (326 buildings) comprising approximately 39.8 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S. Dream Industrial REIT’s objective is to continue to grow and upgrade the quality of its portfolio which primarily consists of distribution and urban logistics properties and to provide attractive overall returns to its unitholders. For more information, please visit www.dreamindustrialreit.ca.

Forward Looking Information

This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Some of the specific forward-looking information in this news release may include, among other things, our strategy to create sustainable long-term value for our stakeholders; opportunities to add energy efficient buildings to our portfolio and add efficient lighting, sustainable roofing as well as renewable power infrastructure within our existing portfolio; the anticipated closing date of the Offering and the use of proceeds therefrom. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Industrial REIT’s control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, global and local economic and business conditions; uncertainties surrounding the COVID-19 pandemic; the financial condition of tenants; our ability to finance or refinance eligible green projects; interest and currency rate fluctuations; competition; and the risk that there may be unforeseen events that cause the Trust’s actual capital structure, overall cost of debt and results of operations to differ from what the Trust currently anticipates. Our objectives and forward-looking statements are based on certain assumptions with respect to each of our markets, including that the general economy remains stable, the gradual recovery and growth of the general economy continues over the remainder of 2021 and in 2022, interest rates remain stable, conditions within the real estate market remain consistent, competition for and availability of acquisitions remains consistent with the current climate, the capital markets continue to provide ready access to equity and/or debt, the timing and ability to sell certain properties remains in line with the Trust’s expectations, valuations to be realized on property sales will be in line with current IFRS values, occupancy levels remain stable, and the replacement of expiring tenancies will remain consistent. All forward-looking information in this news release speaks as of the date of this news release. Dream Industrial REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dream Industrial REIT’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Industrial REIT’s website at www.dreamindustrialreit.ca.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211123005915/en/

Contacts

For further information, please contact:

DREAM INDUSTRIAL REAL ESTATE INVESTMENT TRUST

Brian Pauls
Chief Executive Officer
(416) 365-2365
bpauls@dream.ca

Lenis Quan
Chief Financial Officer
(416) 365-2353
lquan@dream.ca

Alexander Sannikov
Chief Operating Officer
(416) 365-4106
asannikov@dream.ca