Sorry - missed this question previously.
I am of the opinion that Dream Industrial is one of the better REITs out there. It has performed quite well and has grown the business consistently over the years. Personally, I'd have no problems owning Dream, I just prefer Granite as it has just slightly better financials and a commitment to growing that distribution.
As for why Dream doesn't? I'm not sure - but since it has grown the business quite a bit over the years, it is likely that they view better opportunities through growth than raising the distribution. It's not like it isn't well covered. The distribution accounts for only 71% of FFO YTD which is very sustainable and reasonable number. In fact, it's on the lower end of TSX-listed REITs and only Granite (65%) is lower in the industrial segment. They also have a strong interest coverage ratio (4x) and their leverage ratios are also strong. That means that they are more than capable of servicing their debt at these levels. Once again, they have some of the best debt ratios among all TSX-listed REITs and are second only to Granite in the industrial segment.
For me, Granite and Dream are a two headed beast. You'll also see that sometimes Granite outpeforms and others Dream does. Circling back to the why? I do believe it has to do with them preferring to re-invest in capital projects/growth. At 5.6%, their yield is already quite attractive (even higher than Granite @ 4.6%), so they are competitive in that regards.
Sorry again for missing that question. Hope this helps. Let me know if you have any more follow ups.
Mat