DREM (Dream Homes & Development) Effective Interest Rate on Debt %: 1.12% (As of Dec. 2025)


What is Dream Homes & Development Effective Interest Rate on Debt %?

Dream Homes & Development DREM Effective Interest Rate on Debt % is 1.12% as of Dec. 2025. The stock has 4 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Dream Homes & Development's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was $0.04 Mil. Dream Homes & Development's average total debt for the quarter that ended in Dec. 2025 was $3.93 Mil. Therefore, Dream Homes & Development's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 1.12%.

Dream Homes & Development  (OTCPK:DREM) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Dream Homes & Development Effective Interest Rate on Debt % Related Terms

Dream Homes & Development Effective Interest Rate on Debt % Historical Data

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The historical data trend for Dream Homes & Development's Effective Interest Rate on Debt % can be seen below:

* 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 Homes & Development Effective Interest Rate on Debt % Chart

Dream Homes & Development Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.47 1.69 2.51 1.22 1.93

Dream Homes & Development Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.26 1.32 0.29 5.52 1.12

DREM vs BDCC, DHI, PHM: Effective Interest Rate on Debt % Comparison

For the Residential Construction subindustry, Dream Homes & Development's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Homes & Development Effective Interest Rate on Debt % vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Homes & Development's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Dream Homes & Development's Effective Interest Rate on Debt % falls into.


Dream Homes & Development Effective Interest Rate on Debt % Calculation

Dream Homes & Development's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -0.089/( (5.589+3.641)/ 2 )
=-1  *  -0.089/4.615
=1.93 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.943 + 2.646
=5.589

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.835 + 1.806
=3.641

Dream Homes & Development's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Sep. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -0.044/( (4.221+3.641)/ 2 )
=-1  *  -0.044/3.931
=1.12 %

where

Total Debt  (Q: Sep. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.647 + 1.574
=4.221

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.835 + 1.806
=3.641

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 1.12% mean?
Dream Homes & Development (DREM) has a Effective Interest Rate on Debt % of 1.12% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Dream Homes & Development and its competitors.
Is Dream Homes & Development's Effective Interest Rate on Debt % too high?
Dream Homes & Development's current Effective Interest Rate on Debt % is 1.12%.
How does Dream Homes & Development's Effective Interest Rate on Debt % compare to BDCC and DHI?
Dream Homes & Development's Effective Interest Rate on Debt % of 1.12% can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Homebuilding & Construction company?
A good Effective Interest Rate on Debt % depends on the Homebuilding & Construction industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Dream Homes & Development and its competitors. Dream Homes & Development's current Effective Interest Rate on Debt % is 1.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dream Homes & Development stock overvalued right now?
Based on GuruFocus' analysis, Dream Homes & Development (DREM) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.03, compared to a current price of $0.01 — trading 55.7% below its estimated fair value. The current Effective Interest Rate on Debt % is 1.12%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Dream Homes & Development (DREM), the current Effective Interest Rate on Debt % is 1.12% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Dream Homes & Development Business Description

Address 314 South Main Street, Forked River, NJ, USA, 08731
Dream Homes & Development Corp is a regional builder and developer of new single and multi-family homes and subdivisions, as well as a market leader in real estate development. Operations include custom homes, Build to Lease, Build for Sale and Sale of Improved Lots to national builders.