05:19 PM EDT, 06/17/2025 (MT Newswires) -- Diversified Royalty ( BEVFF ) after trade Tuesday said it acquired the trademarks and certain other intellectual property rights used by Cheba Hut Franchising for US$36 million and certain additional consideration, while also increasing its dividend and the boosting the size of its Acquisition Facility.

The company said the Cheba Hut buy adds a ninth royalty stream, and the second based in the United States, to DIV's portfolio.

Among acquisition highlights, the company cited initial annual royalty revenue from Cheba Hut of US$4 million, representing about 7% of Diversified's pro-forma adjusted revenue. It also noted the royalty grows at a fixed rate equal to the greater of 3.5% and the U.S. Consumer Price Index up 1.5% per year.

Diversified said the annual dividend on its shares will increase 10% ti $0.275 pfrom $0.25, effective July 1. It amended its Acquisition Facility to increase its size to $70 million from $50 million and extended the maturity date to May 30, 2027, and thereafter to June 17, 2028, if certain conditions are met.

The company said its "strong" balance sheet enabled it to fund the transaction without the need to raise equity.

DIV edged down $0.04 to $2.87 today.