Dream Office Real Estate Investment Trust (Dream Office Real Estate Investment Trust) Financial Strength : 3 (As of Dec. 2023)

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What is Dream Office Real Estate Investment Trust Financial Strength?

Dream Office Real Estate Investment Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Dream Office Real Estate Investment Trust displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Dream Office Real Estate Investment Trust's Interest Coverage for the quarter that ended in Dec. 2023 was 1.45. Dream Office Real Estate Investment Trust's debt to revenue ratio for the quarter that ended in Dec. 2023 was 7.04. As of today, Dream Office Real Estate Investment Trust's Altman Z-Score is -0.21.

Competitive Comparison of Dream Office Real Estate Investment Trust's Financial Strength

For the REIT - Office subindustry, Dream Office Real Estate Investment Trust's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dream Office Real Estate Investment Trust's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Dream Office Real Estate Investment Trust's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dream Office Real Estate Investment Trust's Financial Strength falls into.

Dream Office Real Estate Investment Trust Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Dream Office Real Estate Investment Trust's Interest Expense for the months ended in Dec. 2023 was $-11.7 Mil. Its Operating Income for the months ended in Dec. 2023 was $17.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $937.8 Mil.

Dream Office Real Estate Investment Trust's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	17.003	/	-11.689
	=	1.45

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Dream Office Real Estate Investment Trust interest coverage is 1.43, which is low.

2. Debt to revenue ratio. The lower, the better.

Dream Office Real Estate Investment Trust's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(63.634	+	937.756)	/	142.144
	=	7.04

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dream Office Real Estate Investment Trust has a Z-score of -0.21, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.21 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Dream Office Real Estate Investment Trust (OTCPK:DRETF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Dream Office Real Estate Investment Trust Financial Strength Related Terms

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Dream Office Real Estate Investment Trust (Dream Office Real Estate Investment Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Dream Office Real Estate Investment Trust (OTCPK:DRETF) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

D.UN:Canada

Address

30 Adelaide Street East, Suite 301, State Street Financial Centre, Toronto, ON, CAN, M5C 3H1

Website

https://www.dream.ca

Dream Office Real Estate Investment Trust is a real estate investment trust that acquires, manages, and leases primarily central business district and suburban office properties in urban areas throughout Canada. The majority of the company's real estate portfolio, in terms of revenue generation, is located in the Canadian province of Ontario. The province of Alberta also brings in a sizable percentage of revenue. The company generates nearly all of its revenue in the form of rental income from mid-to long-term lease agreements with tenants. The company's office buildings located in central business districts are responsible for the vast majority of its revenue generation. Most of Dream Office's customers are in the finance, insurance, science, and government industries.