05:26 PM EDT, 03/24/2025 (MT Newswires) -- Diversified Royalty Corp. ( BEVFF ) after trade Monday reported lower net income for the fourth quarter, despite higher revenues on weighted average organic royalty growth, even amid "varying degrees of performance within the portfolio."

Net income for Q4 2024 was $4.0 million, compared to net income of $9.1 million for the same respective period in 2023. It said the decrease in net income in Q4 2024 was primarily due to impairment loss on intangible assets and higher share-based compensation expense, partially offset by higher adjusted revenue and lower general and administrative expenses, interest expense on credit facilities, and income tax expense.

In Q4 2024, DIV generated $17.0 million of revenue compared to $16.4 million in Q4 2023. After considering the DIV Royalty Entitlement related to DIV's royalty arrangements with Nurse Next Door, DIV's adjusted revenue was $18.4 million in Q4 2024, compared to $17.7 million in Q4 2023. It said adjusted revenue increased primarily due to incremental revenue received through the acquisition of the BarBurrito rights on October 4, 2023, positive SSSG at Mr. Lube + Tires and Oxford, the annual contractual royalty increases at Stratus and Nurse Next Door, partially offset by negative SSSG from Mr. Mikes and lower royalty income from AIR MILES and the 20% deferral of the Sutton royalties.

Sean Morrison, President and Chief Executive Officer, said: "Overall, DIV is pleased with how its royalty partners performed with weighted average organic royalty growth of 5.9% in Q4 2024 and 5.0% for the year ended December 31, 2024.

"As with all portfolios, there are varying degrees of performance within the portfolio. Mr. Lube, our largest royalty partner, continued to see strong double-digit growth, generating SSSG of 12.0% for the three-month period ended December 31, 2024, and 10.5% for the year ended December 31, 2024. This exceptional performance is the result of Mr. Lube's management team working with their franchisees to share best practices and optimize the performance of each location. DIV's other variable royalty partners generated mixed results with Oxford generating positive SSSG and Mr. Mikes generating negative SSSG in Q4. DIV's fixed royalty partners, Nurse Next Door, Stratus and BarBurrito made their fixed royalty payments.

"DIV is deferring 20% of Sutton's royalties to help them invest in the business and build on the positive momentum in Q4. DIV continues to see a decrease in royalty income from AIR MILES because of the loss of Metro as a loyalty partner and continued softness across the AIR MILES Rewards Program."

DIV closed up $0.04 or 1.5% at $2.77 today on the TSX.