Diversified Royalty Corp T.DIV

Alternate Symbol(s): T.DIV.DB.A | BEVFF

Consumer Cyclical Auto & Truck Dealerships

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.

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Diversified Royalty Corp > Back in again

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Comment by dogatcaton Oct 23, 2023 11:45pm

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Post# 35697558

RE:Back in again

From 5i Research:

Diversified Royalty Corp. (DIV)

Q: please comment of DIV acquisition announced after close today oct 4

Asked by howard on October 05, 2023

5I RESEARCH ANSWER:

The $72M acquisition of BarBurrito looks good, but is also a fairly standard type of deal for DIV. The dividend increases 2.1%. The royalty deal adds $8.3M in revenue plus fees, for incremental revenue of 12%. The royalty grows at 4% for seven years. Payout ratio goes to 84.7%. The deal lasts for 99 years. BarBurrito has 260 locations, and is growing nicely. Same-store sales growth was recently at 4.4%. It looks like a good deal to us.

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