Dream Office Real Estate Investment Trust (Dream Office Real Estate Investment Trust) Beneish M-Score

: -3.08 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Dream Office Real Estate Investment Trust's Beneish M-Score or its related term are showing as below:

DRETF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08 Med: -2.56 Max: -1.79
Current: -3.08

During the past 13 years, the highest Beneish M-Score of Dream Office Real Estate Investment Trust was -1.79. The lowest was -3.08. And the median was -2.56.

Dream Office Real Estate Investment Trust Beneish M-Score Historical Data

The historical data trend for Dream Office Real Estate Investment Trust's Beneish M-Score 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.

* Premium members only.

Dream Office Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.88

-3.04

-2.09

-2.36

-3.08

Dream Office Real Estate Investment Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.36	-1.98	-2.38	-2.31	-3.08

Competitive Comparison

For the REIT - Office subindustry, Dream Office Real Estate Investment Trust's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the REITs industry and Real Estate sector, Dream Office Real Estate Investment Trust's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Dream Office Real Estate Investment Trust's Beneish M-Score falls into.

Dream Office Real Estate Investment Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Dream Office Real Estate Investment Trust for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.5181

0.528 * 1.0058

0.404 * 1.0458

0.892 * 0.9422

0.115 * 0.9622

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0642

4.679 * -0.015817

0.327 * 1.117

-3.08

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $4.4 Mil.
Revenue was 35.536 + 35.138 + 35.39 + 35.233 = $141.3 Mil.
Gross Profit was 19.201 + 18.555 + 19.04 + 19.127 = $75.9 Mil.
Total Current Assets was $17.6 Mil.
Total Assets was $1,988.9 Mil.
Property, Plant and Equipment(Net PPE) was $0.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.3 Mil.
Selling, General, & Admin. Expense(SGA) was $9.2 Mil.
Total Current Liabilities was $99.9 Mil.
Long-Term Debt & Capital Lease Obligation was $937.8 Mil.
Net Income was -31.622 + 10.018 + -37.412 + 1.007 = $-58.0 Mil.
Non Operating Income was -36.085 + 5.62 + -43.574 + -5.044 = $-79.1 Mil.
Cash Flow from Operations was 15.103 + 12.119 + 14.271 + 11.039 = $52.5 Mil.

Total Receivables was $9.0 Mil.
Revenue was 36.515 + 36.656 + 37.604 + 39.197 = $150.0 Mil.
Gross Profit was 20.127 + 20.045 + 20.448 + 20.429 = $81.0 Mil.
Total Current Assets was $117.8 Mil.
Total Assets was $2,257.6 Mil.
Property, Plant and Equipment(Net PPE) was $0.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.6 Mil.
Selling, General, & Admin. Expense(SGA) was $9.2 Mil.
Total Current Liabilities was $236.8 Mil.
Long-Term Debt & Capital Lease Obligation was $817.7 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(4.407 / 141.297)	/	(9.028 / 149.972)
	=	0.03119	/	0.060198
	=	0.5181

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(81.049 / 149.972)	/	(75.923 / 141.297)
	=	0.540428	/	0.537329
	=	1.0058

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (17.607 + 0.09) / 1988.916)	/	(1 - (117.842 + 0.207) / 2257.582)
	=	0.991102	/	0.94771
	=	1.0458

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	141.297	/	149.972
	=	0.9422

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(2.61 / (2.61 + 0.207))	/	(2.335 / (2.335 + 0.09))
	=	0.926518	/	0.962887
	=	0.9622

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(9.201 / 141.297)	/	(9.177 / 149.972)
	=	0.065118	/	0.061191
	=	1.0642

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((937.756 + 99.93) / 1988.916)	/	((817.72 + 236.766) / 2257.582)
	=	0.521734	/	0.467086
	=	1.117

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-58.009 - -79.083	-	52.532)	/	1988.916
	=	-0.015817

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Dream Office Real Estate Investment Trust has a M-score of -3.08 suggests that the company is unlikely to be a manipulator.

Dream Office Real Estate Investment Trust Beneish M-Score Related Terms

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

Industry

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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.