Overview

* Diversified Royalty ( BEVFF ) Q3 adjusted revenue grows 12.6% yr/yr

* Company increases annualized dividend to 28.5 cents per share effective Dec 1, 2025

* Weighted average organic royalty growth at 5.0% in Q3 2025

Outlook

* Company increases annualized dividend to 28.5 cents per share, effective December 1, 2025

* Sutton's 20% royalty deferral to continue until end of 2025

* Company notes continued decline in AIR MILES royalties

Result Drivers

* MR. LUBE + TIRES GROWTH - Mr. Lube + Tires led with a 10.3% SSSG in Q3, contributing significantly to revenue growth

* CHEBA HUT CONTRIBUTION - Cheba Hut added incremental royalties in its first full quarter since joining the portfolio

* AIR MILES DECLINE - AIR MILES royalty income decreased by 10.7% due to continued softness in the rewards program

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$19.59

Adjusted mln

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the entertainment production peer group is "buy"

* Wall Street's median 12-month price target for Diversified Royalty Corp ( BEVFF ) is C$4.00, about 11.8% above its November 12 closing price of C$3.53

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)