Core Viewpoint - Diversified Royalty Corp. has announced an increase in its annual dividend from 25.0 cents per share to 27.5 cents per share effective July 1, 2025, with a cash dividend of $0.02292 per common share for the period of July 1, 2025, to July 31, 2025 [1] Company Overview - Diversified Royalty Corp. is a multi-royalty corporation focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America [2] - The company's objective is to acquire predictable and growing royalty streams from a diverse group of businesses and franchisors [2] Business Operations - DIV currently owns trademarks for several brands including Mr. Lube + Tires, AIR MILES®, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, BarBurrito, and Cheba Hut [3] - Mr. Lube + Tires is the leading quick lube service in Canada, while AIR MILES® is the largest coalition loyalty program in the country [3] - Sutton is a leading residential real estate brokerage franchisor, and Mr. Mikes operates casual steakhouses primarily in western Canada [3] - Nurse Next Door provides home care services across Canada, the U.S., and Australia, while Oxford Learning Centres offers supplemental education services [3] - Stratus Building Solutions is a commercial cleaning service franchise, BarBurrito is the largest quick-service Mexican restaurant chain in Canada, and Cheba Hut is a fast-casual toasted sub sandwich franchise in the U.S. [3] Financial Strategy - The company aims to increase cash flow per share through accretive royalty purchases and the growth of purchased royalties [4] - DIV intends to maintain a predictable and stable monthly dividend to shareholders and increase the dividend over time as cash flow per share allows [4]

Core Viewpoint - Diversified Royalty Corp. has announced a cash dividend of $0.02083 per common share for the period of June 1, 2025, to June 30, 2025, which annualizes to $0.25 per common share, to be paid on June 30, 2025, to shareholders of record as of June 13, 2025 [1] Company Overview - Diversified Royalty Corp. is a multi-royalty corporation focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America [2] - The company's objective is to acquire predictable and growing royalty streams from a diverse group of businesses and franchisors [2] Business Operations - DIV currently owns trademarks for several brands including Mr. Lube + Tires, AIR MILES®, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito [3] - Mr. Lube + Tires is recognized as the leading quick lube service business in Canada, while AIR MILES® is the largest coalition loyalty program in the country [3] - Sutton is a prominent residential real estate brokerage franchisor, and Mr. Mikes operates casual steakhouse restaurants primarily in western Canada [3] - Nurse Next Door provides home care services across Canada, the U.S., and Australia, while Oxford Learning Centres offers supplemental education services [3] - Stratus Building Solutions is a leading commercial cleaning service franchise in the U.S., and BarBurrito is the largest quick-service Mexican restaurant chain in Canada [3] Financial Strategy - The company's goal is to increase cash flow per share through accretive royalty purchases and the growth of purchased royalties [4] - DIV aims to maintain a predictable and stable monthly dividend for shareholders and plans to increase the dividend over time as cash flow per share allows [4]

Core Insights - Diversified Royalty Corp. reported strong financial results for Q1 2025, with adjusted revenue of $17.0 million, up 3.6% from $16.4 million in Q1 2024, driven by positive same-store sales growth (SSSG) from key partners [3][5][6] - The company continues to experience mixed results from its variable royalty partners, while fixed royalty partners maintained their payments [3][4] - Leadership changes include the promotion of Greg Gutmanis to President and Chief Financial Officer, effective July 1, 2025, indicating a strategic focus on operational oversight and growth [20][21][22] Financial Performance - Q1 2025 revenue was $15.6 million, a 3.7% increase from $15.1 million in Q1 2024 [5][17] - Distributable cash rose to $11.1 million, up 16.3% from $9.6 million in Q1 2024, with a payout ratio of 93.8% [5][15][16] - Net income for Q1 2025 was $8.0 million, compared to $7.5 million in Q1 2024, attributed to higher adjusted revenues and lower expenses [17] Royalty Partner Updates - Mr. Lube + Tires achieved SSSG of 9.5% in Q1 2025, although down from 14.6% in Q1 2024, reflecting sustained growth [7] - Stratus reported royalty income of $2.4 million, with a fixed royalty increase of 5% effective November 2024 [8] - Nurse Next Door's royalty entitlement was $1.3 million, growing at a fixed rate of 2% per annum [9] - Mr. Mikes saw SSSG of 1.5%, a recovery from -5.5% in Q1 2024, indicating improved guest traffic [10] - Oxford Learning Centres reported SSSG of 5.5%, a significant improvement from -2.1% in Q1 2024 [11] - AIR MILES® royalty income decreased by 15.2% to $0.8 million due to ongoing softness in the rewards program [12] - Sutton's royalty income was $0.9 million, including a 20% deferral, compared to $1.1 million in Q1 2024 [13] - BarBurrito generated $2.1 million in royalty income, with a fixed growth rate of 4% per annum starting March 2025 [14] Leadership and Governance - The upcoming Annual General Meeting will address the election of directors and the appointment of KPMG LLP as auditors [19] - Sean Morrison will continue as CEO, focusing on strategic direction, while Greg Gutmanis will oversee day-to-day operations and growth initiatives [20][22]

Core Viewpoint - Diversified Royalty Corp. has adjusted the Mr. Lube + Tires royalty pool to include six new flagship locations, bringing the total to 149 locations, while removing one permanently closed location [1] Company Performance - Mr. Lube + Tires is experiencing strong same-store sales growth across its franchise system, indicating a positive outlook for continued growth [2] - The performance of franchisees in 2024 has been commendable, with a focus on brand growth and enhancing store-level economics [3] Royalty Pool Adjustments - The Mr. Lube + Tires Royalty Pool is adjusted annually on May 1 to include new locations opened since July 1 of the previous year and to remove permanently closed locations [4] - The initial consideration for the additional royalty revenue from the new locations was $4.0 million, which is 80% of the total estimated consideration of $5.0 million, paid in the form of common shares [5] - The remaining consideration for the new locations will be paid on May 1, 2026, adjusted based on actual system sales for the year ending December 31, 2025 [6] Previous Adjustments - On May 1, 2023, the royalty pool was adjusted to include five new locations, with an initial consideration of $4.7 million, which was also 80% of the total estimated consideration [7] - The actual system sales for the 2023 True-Up Locations were determined to be $10.1 million, leading to a total consideration of $7.1 million, with a remaining cash payment of $2.4 million made on May 1, 2025 [8] Dividend Announcement - The board of directors has approved a cash dividend of $0.02083 per common share for May 2025, equating to an annualized rate of $0.25 per share, to be paid on May 30, 2025 [10] Company Overview - Diversified Royalty Corp. is focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America, aiming to generate predictable and growing royalty streams [12][14]