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Diversified Royalty Corp BEVFF


Primary Symbol: T.DIV Alternate Symbol(s):  T.DIV.DB.A

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.


TSX:DIV - Post by User

Comment by JayBankson Nov 07, 2024 10:40pm
109 Views
Post# 36302422

RE:RE:RE:RE:RE:RE:RE:RE:Time for stockholder dilution again?

RE:RE:RE:RE:RE:RE:RE:RE:Time for stockholder dilution again?

What is difficult to follow on it? On the current dividend/Distributable cash, they did not distribute $654,000, the previous quarter was $1.32 M... They they make an acquisition and the new royalty will add to the Distributable income number, and without adding to the dividend payout until after the debt is payed off, Maybe that difference is between $1.5-3M... 

 

If they were to make a similar deal to what they have with Stratus, they expected that to earn $6 mill to the pool per year (1.5/Q), it cost them 60 M - 16 cash on hand = 44 M on the facility, let’s average last quarter and this quarters undistributed income = 985k + 1.5 income from deal per Quarter = 2.485 M… 44 / 2.485 = 17.7 Quarters to pay off or 4.5 years, let’s call the interest and royalty increases from most of the rest of the portfolio a wash, although the interest cost will be reducing over time and the royalty contracts are ever increasing. I don’t think 4.5 years (maybe 3.5-4 years in real time due to the payoff over time) is that long to pay for an acquisition that added 14% to our income size without diluting…

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