Diversified Royalty: De-Risking Through Fixed Royalties

Diversified Royalty offers a highly predictable, bond-like royalty stream with a counter-cyclical portfolio spanning nine businesses. Recent portfolio de-risking—especially Air Miles' shift to a fixed royalty—reduces execution risk for DIV:CA and enhances cash flow stability. Distributable cash and payout ratios remain comfortable, with FY 2025 payout at 88.1% and projected stability even under conservative scenarios.