TORONTO, ONTARIO--(Marketwired - June 21, 2017) - DREAM GLOBAL REIT (TSX:DRG.UN)(FRANKFURT:DRG) today is announcing exceptional leasing momentum with Deutsche Post agreeing to renew the leases for 70 properties expiring in 2018, totalling 2.5 million sf of gross leasable area ("GLA") or approximately 18% of total portfolio GLA. This represents the largest lease renewal in the Trust's history and results in a retention ratio of 90%. The Trust expects that these lease renewals will enhance the value and the stability of its portfolio.

"The high renewal level reflects our continued efforts to work with Deutsche Post, to understand their space requirements and to achieve a result that is beneficial for both them and Dream Global," said Jane Gavan, Chief Executive Officer of Dream Global REIT. "With this renewal, we have removed the uncertainty associated with Deutsche Post leases and have continued driving the stability and quality of the Trust's long-term cash flows."

Proactive Negotiations Resulting in High Tenant Retention. Of the total 2.8 million sf of GLA that was scheduled to mature on June 30, 2018, Deutsche Post will renew 2.5 million sf, or approximately 90% of the total space, at rents comparable to those currently in-place with minimal lease incentives of EUR1.32 per sf. The average term of the renewed leases is approximately five years, commencing July 1, 2018. These renewals will increase the Trust's overall weighted average lease term to 5.1 years from 4.3 years at Q1 2017. Deutsche Post will remain in 70 of 75 buildings with the Trust retaining 88.5% of the gross rental income ("GRI") relating to the 2018 lease maturities or approximately EUR13.7 million on an annualized basis. Rent payable under the renewed leases will continue to be subject to automatic adjustment in relation to the German Consumer Price Index.

The following table summarizes the terms of the lease renewals with Deutsche Post:

Number of
Renewed GRI
(EUR mln.)
Average Lease
Long-term renewal (6 to 10 years) 8 3.4 8.1 years
Mid-term renewal (2 to 5 years) 54 9.2 4.2 years
Short-term renewal (1 year) 8 1.1 1.0 years
Total / Average 70 13.7 4.9 years

GRI Upside on Postbank Leases. Deutsche Postbank ("Postbank") will remain a tenant under a sublease arrangement with Deutsche Post in 42 of the renewed properties. The Trust is in direct negotiations with Postbank on three buildings that were not renewed by Deutsche Post for approximately 20,000 sf that could further increase the GRI retention to over 90%.

Comprehensive Asset Management Strategies. For the five properties that were not renewed, the Trust will continue its active management strategies including, recycling non-core assets and reinvesting net proceeds into income-producing assets that will be held over the long term, active leasing, and the pursuit of redevelopment and intensification opportunities. The Trust is in advanced stages of repositioning two of these properties, accounting for approximately 75% of the space that was not renewed by Deutsche Post.

Dream Global REIT is an unincorporated, open-ended real estate investment trust that provides investors with the opportunity to invest in commercial real estate exclusively outside of Canada. Dream Global REIT's portfolio currently consists of approximately 13.6 million square feet of gross leasable area of office, industrial and mixed-use properties across Germany, Austria and Belgium. For more information, please visit

Forward-looking information

This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding the outcome of renewal negotiations with Deutsche Post. 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 Global 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; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Our objectives and forward-looking statements are based on certain assumptions, including that the Canadian and European economies remain stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dream Global 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 Global REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Global REIT's website at

Contact Information:

Dream Global REIT
P. Jane Gavan
President and Chief Executive Officer
(416) 365-6572

Dream Global REIT
Tamara Lawson
Chief Financial Officer
(416) 365-6560

Dream Global REIT
Alexander Sannikov
Senior Vice President, Commercial Properties
(416) 365-4106