Dream Unlimited Corp. is a company built on dreams. Dreams of vibrant communities, bustling retail centers, and a skyline dotted with modern apartments. And while 2023 may have felt like a cold shower of economic reality, the company's latest earnings call whispers of a reawakening, a potential surge of profit driven by an unexpected powerhouse: Western Canada.

Analysts, fixated on the company's recent dividend adjustments within <a href="https://seekingalpha.com/symbol/DRETF" alt="source1">Dream Office REIT</a> and <a href="https://seekingalpha.com/symbol/DMPPF" alt="source2">Dream Impact Trust</a>, may be overlooking a seismic shift brewing in the west. Dream Unlimited, it seems, is strategically repositioning itself, not just for survival, but for explosive growth. Their secret weapon? A potent cocktail of burgeoning income properties, a shrewd asset management strategy, and a resurgent Western Canadian market that's showing signs of life not seen in nearly a decade.

The Calgary market, in particular, is pulsating with activity. Dream Unlimited's Alpine Park development, a massive project they've nurtured since 1997, is witnessing an unprecedented wave of pre-sales. In fact, the company has secured the highest level of pre-sales in its history, a testament to the growing demand for housing in the region.

But there's more. Dream Unlimited is not just selling land; they're actively building an integrated ecosystem of housing and retail, effectively stitching together a tapestry of recurring income. Apartment buildings are reaching completion and filling up rapidly, townhouses are flying off the shelves, and even single-family rentals are exceeding expectations. This multi-pronged approach, this deliberate creation of a self-sustaining community, is poised to generate a steady stream of revenue, minimizing the inherent lumpiness of land development and providing a more predictable, higher-quality earnings profile.

Saskatoon, another Western Canadian jewel in Dream Unlimited's crown, is echoing Calgary's optimistic tune. Their Brighton community is buzzing with the construction of apartments, each projected to generate an annual net income of approximately $1 million, with a development IRR exceeding 20%. But here's the kicker: Dream Unlimited possesses land for 12 more apartment buildings and 360 townhouses, totaling nearly 2,000 units in this area alone.

Imagine this: each apartment building generates $1 million in annual income. Twelve buildings equal $12 million in recurring revenue. Add in the townhouses and single-family rentals, and the potential for sustained, ever-increasing income becomes staggering. This is not a pipe dream; it's a meticulously calculated blueprint for financial success.

Adding fuel to the fire is a recent announcement by the Saskatchewan government, injecting a powerful dose of growth hormone into Saskatoon's Homewood community. The government has committed to building four new schools – two Catholic, two public – and a $50 million community center. This educational and recreational complex, spanning 35 acres, will serve over 3,500 students and potentially attract 7,000 to 10,000 new residents to the area.

The implications for Dream Unlimited are clear: accelerated absorption of land, higher profits, and a faster realization of their vision. This is not just development; it's the creation of a thriving ecosystem, one that feeds its own growth and generates long-term value.

Beyond Western Canada, Dream Unlimited is weaving a similar story of expansion and diversification. Their income property portfolio is swelling, fueled by projects like <a href="https://www.zibi.ca/" alt="source3">Zibi in Ottawa</a>, with new buildings reaching completion and lease-up at a rapid pace.

The company's asset management business, though susceptible to the industry's fundraising challenges, is quietly amassing a war chest of potential. Dream Unlimited is adept at forging strategic joint ventures, leveraging its expertise to attract institutional capital and create opportunities for outsized returns.

The Hypothesis: A Western Canada Powerhouse in the Making

Here's the hypothesis: while the market is distracted by dividend adjustments within the REITs, Dream Unlimited is quietly building a powerhouse in Western Canada, with the potential to generate hundreds of millions in profit over the coming years.

Consider this: Dream Unlimited expects to sell between 500 and 600 lots in Western Canada this year alone. Conservatively estimating an average profit of $50,000 per lot, that translates to $25 million to $30 million in revenue from lot sales alone. Factor in the recurring income from the burgeoning income property portfolio, the lucrative asset management deals, and the anticipated acceleration of development driven by the new schools and community center in Saskatoon, and the potential for a significant surge in profitability becomes undeniable.

Projected Recurring Income from Saskatoon Apartments

The table below shows a hypothetical projection of recurring income from the planned 12 apartment buildings in Saskatoon. This assumes a conservative annual net income of $1 million per building and does not include potential income from townhouses or single-family rentals.

Source: Dream Unlimited Corp. Q1 2024 Earnings Call Transcript

Dream Unlimited is not just riding a wave; they're creating it. And as the company continues to skillfully navigate the ever-changing tides of the real estate market, their vision of a brighter future, built on a foundation of strong, recurring income, is becoming increasingly tangible.

"Fun Fact: Dream Unlimited's Alpine Park development in Calgary is so large that it could house the entire population of Iceland! With over 1,800 acres, this master-planned community is a testament to Dream's ambitious vision and commitment to creating thriving communities."