Diversified Royalty Corp. · TSX:DIV
Diversified Royalty — Q2 2025 Earnings Presentation
13 slides from Diversified Royalty's earnings presentation, Aug 8, 2025
Slide 1: Investor Update – Post Q2, 2025
Investor Update – Post Q2, 2025 August 8, 2025
Slide 2: Legal Disclaimer
Legal Disclaimer Notice The contents of this presentation are for information purposes only. This presentation does not constitute an offer to sell securities of Diversified Royalty Corp. ("DIV“ or the “Corporation”) or any other entity and it is not soliciting an offer to buy any such securities. T
Slide 3: Non-IFRS Measures
Non-IFRS Measures Management believes that disclosing certain non-IFRS financial measures, non-IFRS ratios and supplementary financial measures provides readers with important information regarding DIV’s financial performance and its ability to pay dividends and the performance of its royalty partne
Slide 4: Q2, 2025 Highlights
Q2, 2025 Highlights ➢ Weighted average organic royalty growth1 was 5.5% in Q2, 2025 ➢ Payout ratio1 of 83% (on $0.25 per share annualized dividend) – would have been 91.3% on pro forma $0.275 per share annualized dividend ➢ 5 net new locations added May 1, 2025 to the Mr. Lube + Tires royalty pool ➢
Slide 5: Cheba Hut Transaction
Cheba Hut Transaction Driving Returns with a Proven and Scalable U.S. Franchise Model Company Overview ➢ Cheba Hut, founded in 1998, is a 79-location fast casual toasted submarine sandwich franchise, with ~US$174M of run-rate system sales1 ➢ Cheba Hut is an excellent royalty partner for DIV: ▪ Prove
Slide 6: Impact to DIV – Pro Forma Cheba Hut Deal
Impact to DIV – Pro Forma Cheba Hut Deal Current Run Rate Pro Forma $71.3M $76.9M Adjusted Adjusted Revenue1 Revenue1 $66.8M $72.4M Normalized EBITDA1 Normalized EBITDA1 $45.5M $48.6M Distributable Cash1 Distributable Cash1 $0.2714 $0.2897 Distributable Cash Per Share1 Distributable Cash Per Share1
Slide 7: Portfolio Pro-Forma Adjusted Revenue %
Portfolio Pro-Forma Adjusted Revenue %1 7 1) Pro-forma adjusted revenue is a non-IFRS financial measure. See “Non-IFRS Measures”. (TSX: DIV)
Slide 8: Cheba Hut Summary
Cheba Hut Summary Cheba Hut is an excellent royalty partner for DIV – it is a profitable, well-run franchisor with a proven business model and attractive growth prospects Company Highlights ➢ History of Success. Cheba Hut, founded in 1998, is a high-quality franchisor with 79 locations across 20 US
Slide 9: DIV Portfolio – Variable
DIV Portfolio – Variable Royalties from 4 of DIV’s royalty partners representing 58% of Pro-Forma Adjusted Revenue(1) are based on SSSG(2) of the locations in the royalty pool or are otherwise a variable royalty Company Pro-Forma Adjusted Revenue(1) ➢ Canada’s largest quick lube brand – 47-year hist
Slide 10: DIV Portfolio – Fixed Growth
DIV Portfolio – Fixed Growth Royalties from 5 of DIV’s royalty partners representing 42% of Pro-Forma Adjusted Revenue(1) contractually grow at fixed rates ranging from 2.0% to 5.0% Pro-Forma Adjusted Company Revenue(1) ➢ Residential real estate brokerage – 35-year history ➢ ~200 locations, 2.0% ann
Slide 11: Relative Valuation
Relative Valuation ➢ Relative to single-name Canadian publicly traded franchise comps, DIV remains undervalued, offering investors an attractive entry point; DIV’s G&A includes a full transactional team, unlike leaner single-name comps(1). ➢ DIV has outperformed peers on historical same-store sales
Slide 12: Dividend Policies
Dividend Policies ➢ DIV has paid a more consistent dividend than comparables over the last 5 years Dividend Per Share 140% Covid-19 DIV Pandemic 120% BP PZA SIR 100% A&W % of Jan 2020 Dividend KEG 80% 60% 40% 20% 0% Jan-2020 Jun-2020 Nov-2020 Apr-2021 Sep-2021 Feb-2022 Jul-2022 Dec-2022 May-2023 Oct
Slide 13: Corporate Profile
Corporate Profile Dividend (Monthly / Annually) $0.02292 / $0.275 Corporate Number of Employees 5 Summary Sean Morrison, CEO 236-521-8470 Contact Information Greg Gutmanis, CFO 236-521-8471 Ticker Symbol TSX: DIV Market Shares Outstanding(1) 169.7M Summary Share Price(2) $3.36 Market Capitalization(