DBRS Morningstar Assigns Provisional Rating of BBB, Stable, to Dream Industrial REIT’s Series A Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a provisional rating of BBB with a Stable trend to Dream Industrial Real Estate Investment Trust’s (Dream Industrial or the REIT) Series A Senior Unsecured Debentures, due December 22, 2025 (the Series A Debentures), for up to $250 million. The assignment of this provisional rating follows DBRS Morningstar assigning an Issuer Rating of BBB with a Stable trend to Dream Industrial on October 22, 2020. The REIT’s contemplated issuance of the Series A Debentures is consistent with DBRS Morningstar’s expectations at that time. For greater clarity, subsequent to the assignment of the Issuer Rating, DBRS Morningstar is of the view that there have not been any material changes to the credit risk profile of Dream Industrial.

The Series A Debentures will be direct senior unsecured obligations of Dream Industrial and will rank equally and rateably with all other senior unsecured debt securities of the REIT and with all other unsecured and unsubordinated indebtedness of Dream Industrial, except to the extent prescribed by law. The Series A Debentures will be guaranteed, on an unsecured basis, by Dream Industrial LP, a subsidiary of the REIT, as well as those subsidiaries of the REIT that are guarantors under Dream Industrial’s unsecured credit facilities (the Guarantee). DBRS Morningstar reviewed the Guarantee for consistency with “DBRS Morningstar Criteria: Guarantees and Other Forms of Support.”

DBRS Morningstar understands that the net proceeds from the offering will be used to fund future acquisitions, repay existing indebtedness, and for general trust purposes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Entities in the Real Estate Industry (June 4, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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