Dream Impact Trust Provides a Business Update

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.

TORONTO–(BUSINESS WIRE)–DREAM IMPACT TRUST (TSX: MPCT.UN) (“Dream Impact”, “we”, “our” or the “Trust”) today provides a general business update on liquidity, development and strategic initiatives.

Over the last 90 days, we have made significant progress furthering our business plan and preserving and adding value to the Trust.

Strategic Business Plan

The board of trustees have approved a five-year strategic plan which focuses on developing 49 Ontario and Quayside, which are our two milestone projects, in addition to continuing to develop Zibi and Brightwater. The plan includes crystalizing value on almost all of the Trust’s commercial assets and passive investments and selling certain multi-family assets as needed for liquidity. The goal is for the Trust to eventually own approximately 2,300 residential rental units (at share) by 2030, with the multi-family segment comprising approximately 90% of the Trust’s value, approximately 72% of our debt being CMHC Affordable Construction Loan Program (“ACLP”) financing and another 9% being MLI Select CMHC financing. These CMHC financings are valuable as they tend to have long terms and government insurance which facilitates refinancing.

“In 2025, we made significant progress in supporting the Trust’s value. Pursuant to our business plan, we expect the portfolio to be 90% multi-family in Toronto and the National Capital Region by 2030 with stable and low-cost government financing and one of the most attractive multi-family rental portfolios in the industry,” said Michael Cooper, Portfolio Manager. “We have commenced construction of 49 Ontario with low cost 20-year financing, we have significantly advanced the pre-development of Quayside, dramatically increased occupancy in our recently completed purpose-built rentals, reduced our land debt substantially and secured long term corporate debt resulting in a better positioned business as 2025 ended. We expect to build on this momentum throughout 2026.”

49 Ontario

49 Ontario is a 1,226-unit, two-tower purpose-built rental development, including 308 affordable units. Demolition on the site commenced in November and the Trust has now closed on the previously announced government affiliated financing, locking in a 20-year term.

On January 5^th, we completed the sale of a 10% interest in the project to our co-developer and long-term partner, CentreCourt, which will also act as construction manager. CentreCourt’s proven track record of delivering quality residential projects in a cost-efficient and timely manner strengthens execution certainty and aligns long-term interests across the partnership.

With many of the components of the development now in place, we are able to demonstrate the strong achievements to date. We have benefited from the federal government’s waiver of HST on apartment projects as well as the City of Toronto’s waiver of development charges for certain affordable housing projects under the Rental Housing Supply Program. To date, construction tendering and pricing has been encouraging, and management is optimistic that significant project savings will be realized.

49 Ontario is a significant and strategically de-risked investment for the Trust. While interest rates have increased over the past three years, the project’s 20-year debt materially mitigates financing and refinancing risk. With no refinancing required until 2046, the loan’s principal balance is expected to decline by approximately 13% over the term. Assuming annual rental growth of 2.5% (which is well below the historical 20-year average of 3.4%), net operating income is expected to increase by approximately 63% over the loan term. Combined with the principal reduction, growth in net operating income and a government guarantee, these factors should result in a substantially lower loan-to-value ratio at maturity and are expected to facilitate future refinancing requirements.

While the construction costs, the development charge waiver and the HST waiver are permanent, the decline in rents is not. Currently, the decline in immigration and the new supply of condominiums are reducing demand and increasing supply, though the new supply of multi-family units in Toronto is expected to decline substantially over the next few years.

Following the sale of the 10% project interest for $6.5 million, the Trust’s remaining equity value in the development is $58.5 million and we will also recover $4.9 million of pre-development costs. In addition, we own surplus land at the site that is not required for the development, which we intend to sell in 2026.

“With the support of the federal and provincial governments and the City of Toronto, 49 Ontario is well-positioned as we have realized significant development savings that offset current lower rental rates. With this condo cycle coming to an end and a return to historic immigration growth, we anticipate a more constructive rental rate environment during the development period of our new buildings, which ultimately results in a fair return to our unit holders, while also providing new housing adjacent to public transit and over 300 affordable units,” said Michael Cooper, Portfolio Manager.

Quayside

We are making the progress we anticipated at Quayside and estimate that it is about nine months behind the development start of 49 Ontario, subject to various approvals and continued final negotiations. Quayside is also expected to benefit from the HST waiver, development charge waivers and construction savings that have benefited 49 Ontario. Quayside is a two-tower development on Toronto’s waterfront due south of the Distillery District. It will have over 1,100 market rental units as part of a public private partnership with Waterfront Toronto and the City of Toronto and will also include over 500 affordable housing units that are not owned by MPCT. MPCT is expected to own 25% of the development. We expect to provide significant updates on Quayside over the next 90 days.

Reducing Land Loans

At the beginning of 2025, the Trust had $237 million of land loans, at the Trust’s share, for projects that were not under development. Over the course of the year and through early 2026, the Trust has reduced its land loan exposure to $144 million. Further, in 2026 we expect to reduce our land loans by an additional $56 million related to Scarborough Junction, Quayside, Forma West and Lakeshore East. This will reduce our land loans on projects not yet started to $87 million, which primarily comprises Lakeshore East and Forma West. We expect land loans to be reduced by over 60% from the beginning of 2025 to the end of 2026.

Dream Loan Upsize

The Trust previously announced a $15 million loan from Dream Asset Management Corporation (“DAM”), our asset manager, demonstrating DAM’s continued support for Dream Impact. In early 2026, we expect that the facility will be upsized to $50 million and will bear interest at a rate equal to the higher of 10% or 6% above the Canadian Overnight Repo Rate Average. The facility matures in five years and is secured by general and continuing collateral over certain of the Trust’s assets.

2026 Asset Management Fee

Since 2019, the management fees payable to DAM, the Trust’s asset manager, have been settled by the delivery of units of the Trust, which has supported our overall liquidity objectives. The current arrangement to satisfy these fees expired on December 31, 2025, and the Trust and DAM have agreed, subject to necessary TSX, regulatory and unitholder approvals, to settle the 2026 management fee through the issuance of approximately $3.6 million of unsecured convertible debentures. The debentures will be on similar terms to the Trust’s existing 5.75% convertible unsecured subordinated debentures that mature on December 31, 2027. The reduced asset management fee and payment in convertible debentures in lieu of cash preserves liquidity for the Trust, provides it with further financial flexibility to execute on its strategic initiatives and demonstrates DAM’s strong alignment with the Trust’s overall strategy. In aggregate, DAM and its joint actors own 39.3% of the Trust as at January 7, 2026. Information on the proposed fee arrangement will be included in the Trust’s management information circular for its upcoming 2026 annual meeting.

2026 Debentures Extension

The Trust announced today that it has closed on its previously announced agreement to extend and amend certain terms of the Trust’s 5.50% convertible unsecured subordinated debentures due July 31, 2026 (the “2026 Debentures”). All of the Debentures are beneficially owned by certain controlled affiliates of Fairfax Financial Holdings Limited (collectively, “Fairfax”). The maturity date of the 2026 Debentures has been extended from July 31, 2026 to July 31, 2031. In addition, the interest rate of the 2026 Debentures will change from 5.50% to 6.50% for periods commencing on February 2, 2026 and the conversion price of the Debentures has been adjusted to $2.75 per unit. Under the amended terms of the 2026 Debentures, the Trust has the right at its sole option to satisfy any conversion request in cash in lieu of delivering units of the Trust that would otherwise be issuable on conversion of the 2026 Debentures. The 2026 Debentures will be redesignated as 6.50% convertible unsecured subordinated debentures following the upcoming February 2, 2026 interest payment date.

“The steps taken to reduce our land debt, extend our convertible debt for five years, and increase the loan from DAM are improving our financial position,” said Derrick Lau, Chief Financial Officer. “The commencement of new developments and leasing of recently completed purpose built rental projects continue to support and add value to our portfolio. While we still have much work to do to achieve the plan, given the swift and significant negative changes to the housing market, the steps taken in 2025 and the recently approved strategic business plan provide a road map for a stronger business in the future.”

Board Update

The Trust also announces that Ms. Karine MacIndoe is retiring from the board of trustees of Dream Impact Trust to focus on other ventures and commitments and has also retired from the board of Dream Office REIT. The Trust wishes Karine success in these endeavours.

About Dream Impact

Dream Impact is an open-ended trust dedicated to impact investing. Dream Impact’s underlying portfolio is comprised of exceptional real estate assets reported under two operating segments: development and recurring income, that would not be otherwise available in a public and fully transparent vehicle, managed by an experienced team with a successful track record in these areas. The objectives of Dream Impact are to create positive and lasting impacts for our stakeholders through our three impact verticals: environmental sustainability and resilience, attainable and affordable housing, and inclusive communities, while generating attractive returns for investors. For more information, please visit: www.dreamimpacttrust.ca.

Forward-Looking Information

This press 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”, “would”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “timeline”, “potential”, “strategy”, “targets”, “believe”, “should”, “plans”, or “continue”, or similar expressions suggesting future outcomes or events.

Some of the specific forward-looking information in this press release may include, among other things, statements relating to the Trust’s goals, objectives and strategies to achieve those objectives; our expectations regarding our developments including 49 Ontario, Quayside, Zibi and Brightwater; the Trust’s ability to achieve the items set forth in its five-year strategic plan, including the crystallization of value and disposition of certain assets, the number of units owned by 2030 and the relative percentage of value and debt generated from certain segments and programs; the Trust’s expectations regarding increases to its occupancy and reduction on its land-debt and its ability to continue to best position the business throughout 2026; expectations regarding 49 Ontario including the impact of the partnership with CentreCourt, total development costs, reduction of loan principal over the term, assumptions regarding rental growth rates and its impact on net operating income and the ability to meet refinancing requirements upon loan maturity; expectations regarding the supply of multi-family units in Toronto over time; the Trust’s ability to sell certain undeveloped land at 49 Ontario and the timing thereto; the Trust’s expectations regarding economic cycles including its impact on the condo markets and the rental rate environments; the Trust’s expectations regarding Quayside, including timing, benefits from waivers and construction savings similar to 49 Ontario, the number of units, the Trust’s ownership of the development and anticipated timing for updates thereto; expectations regarding the reduction in land loans including the quantum of reductions, the related projects, the percentage of overall reduction and timing thereto; the expectation that we will be able to upsize our facility with DAM to $50 million; the Trust’s ability to receive necessary approvals to settle the 2026 management fee through the issuance of debentures along with the terms thereto and impact thereof; and the Trust’s expectations that the strategic business plan provides a road map for a stronger business in the future. 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 the Trust’s control, which 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: adverse changes in general economic and market conditions; liquidity risk; financing and risks relating to access to capital; interest rate risks; public health risks; risks associated with unexpected or ongoing geopolitical events, including disputes between nations, terrorism or other acts of violence, and international sanctions; inflation; risks related to the imposition of duties, tariffs and other trade restrictions and their impacts; the disruption of free movement of goods and services across jurisdictions; the risk of adverse global market, economic and political conditions and health crises; risks inherent in the real estate industry; risks relating to investment in development projects; impact investing strategy risk; risks relating to geographic concentration; risks inherent in investments in real estate, mortgages and other loans and developments; credit risk and counterparty risk; competition risks; environmental and climate change risks; risks relating to access to capital; interest rate risk; the risk of changes in governmental laws and regulations; tax risks; foreign exchange risk; the risk that corporate activities and reviews will not have the desired impact; acquisitions risk; and leasing risks. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; the gradual recovery and growth of the general economy in 2026; that no unforeseen changes in the legislative and operating framework for our business will occur; that there will be no material change to environmental regulations that may adversely impact our business; that we will meet our future objectives, priorities and growth targets; that we receive the licenses, permits or approvals necessary in connection with our projects; that we will have access to adequate capital to fund our future projects, plans and any potential acquisitions; that we are able to identify high-quality investment opportunities and find suitable partners with which to enter into joint ventures or partnerships; that we do not incur any material environmental liabilities; there will not be a material change in foreign exchange rates; that the impact of the current economic climate and global financial conditions on our operations will remain consistent with our current expectations and that inflation and interest rates will not materially increase beyond current market expectations; that no duties, tariffs or other trade restrictions will negatively impact us; our expectations regarding the availability and competition for acquisitions remains consistent with the current climate.

All forward-looking information in this press release speaks as of January 7, 2026, unless otherwise noted. The Trust 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 disclosed in the Trust’s filings with securities regulators filed on the System for Electronic Document Analysis and Retrieval+ (www.sedarplus.com), including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamimpacttrust.ca.

Contacts

Derrick Lau
Chief Financial Officer

416 365-2364

dlau@dream.ca

Kimberly Lefever
Director, Investor Relations

416 365-6339

klefever@dream.ca