Core Insights - Diversified Royalty Corp. reported a weighted average organic royalty growth of 5.9% in Q4 2024 and 5.0% for the year ended December 31, 2024, indicating a solid performance from its royalty partners [3][5] - The company experienced revenue growth of 3.9% in Q4 2024, reaching $17.0 million, and a 15.0% increase for the year, totaling $65.0 million [5][18] - Distributable cash increased by 21.5% in Q4 2024 to $12.6 million and by 17.5% for the year to $44.8 million, reflecting improved operational efficiency [5][19] Financial Performance - Adjusted revenue for Q4 2024 was $18.4 million, up 3.8% from Q4 2023, while for the year, it reached $70.2 million, a 14.0% increase [5][6] - The payout ratio for Q4 2024 was 82.3%, a decrease from 84.2% in Q4 2023, and 90.0% for the year, compared to 90.2% in the previous year [5][21] - Net income for Q4 2024 was $4.0 million, down from $9.1 million in Q4 2023, primarily due to impairment losses and higher share-based compensation [23][24] Royalty Partner Updates - Mr. Lube + Tires achieved same-store sales growth (SSSG) of 12.0% in Q4 2024, while Stratus and Nurse Next Door reported stable royalty income with fixed increases [8][10] - Mr. Mikes experienced a decline in SSSG, reporting -4.7% in Q4 2024, attributed to lower guest traffic [11][12] - AIR MILES® saw a decrease in royalty income, generating $0.9 million in Q4 2024, down 14.2% from the previous year, largely due to the loss of a key sponsor [15] Strategic Initiatives - The company is deferring 20% of Sutton's royalties to support business investments and growth, with plans to enhance marketing and franchise development [16] - BarBurrito's royalty income was $2.1 million for Q4 2024, with a fixed growth rate of 4% per annum starting March 2025 [17] - DIV aims to continue paying stable monthly dividends while increasing cash flow per share through strategic royalty acquisitions [27]