- Total income of $61.7 million in the fourth quarter
- Adjusted EBITDA margin of 91% in the fourth quarter; internalization benefits pacing ahead of schedule
- Delivered record full year Total income, Total Cash Receipts and Adjusted EBITDA
- Committed capital over $1.25 billion, including future contingent milestone payments
- Returned over $36 million of capital to Unitholders in 2025 while investing for growth
- Announced quarterly distribution increase to $0.11 per Unit for 2026
TORONTO, March 3, 2026 /CNW/ – DRI Healthcare Trust (TSX:DHT) (TSX:DHT) (“DRI Healthcare”) today announced its financial results for the quarter ended and year ended December 31, 2025. DRI Healthcare’s annual 2025 financial statements and Management’s Discussion & Analysis (“MD&A”) have been filed on SEDAR+ (www.sedarplus.ca). All dollar amounts are expressed in U.S. dollars unless otherwise indicated.
“2025 marked a clear inflection point for DRI Healthcare,” said Ali Hedayat, Chief Executive Officer of DRI Healthcare. “We successfully completed the internalization of our investment management function while delivering record operating results for the full year. On a total committed basis, including potential near-term milestone payments, we achieved our five-year deployment target of $1.25 billion. These achievements underscore the scalability of our model and the disciplined execution of our team.”
“Looking ahead, we expect 2026 to be a foundational year for our new multi-year growth agenda.” Hedayat continued. “We have already taken two meaningful steps in 2026 to enhance Unitholder value, announcing the refinancing of the preferred securities, which extends the maturity profile of our existing debt, and the pricing of $250.0 million aggregate principal amount of Senior Secured Notes. These transactions are expected to strengthen our capital structure by reducing annual debt amortization while maintaining financial flexibility. I am confident DRI Healthcare is well positioned to continue executing on its growth strategy and delivering durable, compounding returns for Unitholders over the long term.”
Fourth Quarter Highlights
- Total income of $61.7 million;
- Total Cash Receipts of $50.7 million1;
- Adjusted EBITDA of $46.2 million1;
- Comprehensive earnings of $9.1 million;
- Recorded an impairment on the Omidria royalty asset of $9.7 million;
- Basic and diluted Adjusted Cash Earnings per Unit of $0.78 and $0.77, respectively1,2;
- Repurchased 97,352 Units under its Normal Course Issuer Bid (“NCIB”) at an average price of $10.66, totaling $1.0 million under the Automated Purchase Plan (“AUPP”); and
- Paid a quarterly cash distribution of $0.10 per Unit on January 20, 2026.
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1 Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted Cash Earnings (Loss) per Unit is a non-GAAP ratio. These measures are not standardized measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The reconciliation of these measures can be found later in this news release and in DRI Healthcare’s MD&A. |
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2 The weighted average number of basic and diluted Units for the purposes of calculating Earnings (Loss) per Unit for the three months ended December 31, 2025 were 55,116,438 Units and 55,311,470 Units, respectively. |
Annual 2025 Financial & Strategic Highlights
Financial Highlights:
- Deployed $87.0 million in capital and committed an additional $115 million in near-term contingent commitments related to the Viridian deal;
- Total income of $198.6 million;
- Total Cash Receipts of $196.4 million3;
- Adjusted EBITDA of $165.0 million1;
- Comprehensive loss of $51.1 million;
- Recorded impairments on the Vonjo II and Omidria royalty assets totaling $23.4 million;
- Basic and diluted Adjusted Cash Earnings per Unit of $2.261,4;
- Repurchased 1,449,249 Units under its NCIB at an average price of $9.82, totaling $14.2 million under the AUPP; and
- Declared total cash distributions of $22.2 million.
Strategic Highlights:
- Successful internalization of our investment management function positioning DRI Healthcare for scalable growth; promoting greater strategic alignment, stronger governance, and more efficient cost structure with expected synergies of $200 million over the next 10 years;
- Announced that KalVista Pharmaceuticals received FDA approval for Ekterly, the first pre-approval deal completed by DRI Healthcare, and executed on its second pre-approval royalty acquisition with Viridian
- Returned over $36 million to Unitholders, including over $14 million of unit repurchases and over $22 million of distributions; and
- On a total committed basis, including near-term contingent milestone payments, DRI Healthcare delivered against target of deploying $1.25 billion over five years and tracking at double-digit CAGR against royalty income growth target.
Subsequent to Quarter End
- Today, DRI Healthcare is pleased to announce that its subsidiary has priced $250 million aggregate principal amount of its Senior Secured Notes, which will be sold in a private offering to eligible purchasers. The issuance and sale of the Senior Secured Notes is subject to customary closing conditions;
- As previously announced, DRI Healthcare entered into subscription agreements with the holders of its outstanding 7.50% Series C preferred securities (the “Preferred Securities”) pursuant to which the company has agreed to issue C$108.7 million aggregate principal amount of convertible unsecured subordinated debentures (the “Debentures”) to the holders, in exchange for their existing Preferred Securities with a currency adjusted principal amount equal to the principal amount of Debentures being subscribed for. Closing of the transaction is expected to occur on March 19, 2026, and is subject to approval of the TSX and other customary closing conditions;
- Repurchased 75,938 Units under its NCIB at an average price of $11.31, totaling $0.9 million under the AUPP;
- Purchased and cancelled an additional $9.9 million face value of preferred securities in February 2026; and
- Increased quarterly distribution to $0.11 per Unit in the first quarter of 2026, payable on April 20, 2026 to Unitholders of record on March 31, 2026.
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3 Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted Cash Earnings (Loss) per Unit is a non-GAAP ratio. These measures are not standardized measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The reconciliation of these measures can be found later in this news release and in DRI Healthcare’s MD&A. |
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4 The weighted average number of basic and diluted Units for the purposes of calculating Earnings (Loss) per Unit for the year ended December 31, 2025 were 55,735,690 and 55,735,690 Units, respectively. |
Financial Highlights
|
Three months ended |
Year ended |
|||
|
(thousands of U.S. dollars, except per Unit amounts) |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, |
|
Total income |
61,686 |
61,521 |
198,589 |
186,747 |
|
Amortization of intangible royalty assets |
25,921 |
26,046 |
101,743 |
102,869 |
|
Impairment of intangible royalty assets |
9,674 |
9,686 |
23,365 |
15,787 |
|
Management fees |
— |
2,938 |
6,733 |
11,397 |
|
Performance fees |
— |
1,665 |
533 |
1,896 |
|
Other expenses1 |
18,400 |
14,185 |
69,029 |
58,763 |
|
Gain (loss) on debt refinancing |
789 |
— |
(182) |
2,176 |
|
Other loss |
— |
— |
— |
(1,575) |
|
Termination fee |
— |
— |
(48,000) |
— |
|
Net earnings (loss) before tax |
8,480 |
7,001 |
(50,996) |
(3,364) |
|
Income tax recovery |
285 |
— |
525 |
— |
|
Net earnings (loss) |
8,765 |
7,001 |
(50,471) |
(3,364) |
|
Net unrealized gain (loss) on derivative instruments |
333 |
871 |
(639) |
664 |
|
Comprehensive earnings (loss) |
9,098 |
7,872 |
(51,110) |
(2,700) |
|
Net earnings (loss) per Unit – basic |
0.16 |
0.12 |
(0.91) |
(0.06) |
|
Net earnings (loss) per Unit – diluted |
0.16 |
0.12 |
(0.91) |
(0.06) |
|
Total Cash Receipts2 |
50,655 |
44,599 |
196,442 |
189,992 |
|
Adjusted EBITDA2 |
46,237 |
36,965 |
164,993 |
156,642 |
|
Adjusted EBITDA Margin2 |
91 % |
83 % |
84 % |
82 % |
|
Adjusted Cash Earnings per Unit – basic2 |
0.78 |
0.76 |
2.26 |
2.18 |
|
Adjusted Cash Earnings per Unit – diluted2 |
0.77 |
0.76 |
2.26 |
2.18 |
|
Weighted average number of Units – basic |
55,116,438 |
56,282,403 |
55,735,690 |
56,339,759 |
|
Weighted average number of Units – diluted |
55,311,470 |
56,678,956 |
55,735,690 |
56,339,759 |
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1 Prior period figures have been adjusted to conform with the current period’s classification. |
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2Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted EBITDA Margin and Adjusted Cash Earnings (Loss) per Unit are non-GAAP ratios. These measures and ratios are not standardized measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The reconciliation of these measures can be found later in this news release and in DRI Healthcare’s MD&A. |
Asset Performance
As at December 31, 2025, DRI Healthcare’s portfolio included 29 royalty streams on 23 products that address a variety of therapeutic areas, such as oncology, neurology, ophthalmology, endocrinology, hematology, dermatology, lysosomal storage disorders (“LSD”) and immunology. On December 31, 2025, the intangible royalty asset portfolio had a book value, net of accumulated amortization, of $777.8 million, which during the three months and year ended December 31, 2025 generated Total Cash Royalty Receipts2 of $50.7 million and $196.4 million, respectively, and royalty income of $57.6 million and $188.9 million, respectively. On December 31, 2025, the financial royalty assets had a book value of $57.3 million and generated a gain on the change in its fair value of $1.9 million and $4.7 million, respectively, during the three months and year ended December 31, 2025. During the three months ended December 31, 2025, an impairment of $9.7 million was recognized on the Omidria royalty asset. During the year ended December 31, 2025, impairments totaling $23.4 million were recognized on the Vonjo II and Omidria royalty assets.
Portfolio
|
(thousands of U.S. dollars) |
Cash Receipts |
|||||
|
Three months ended |
Year ended |
|||||
|
Royalty Asset |
Therapeutic Area |
Marketer(s) |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
|
Casgevy |
Hematology |
Vertex Pharmaceuticals |
— |
— |
5,000 |
— |
|
Ekterly |
Immunology |
KalVista |
821 |
— |
821 |
— |
|
Empaveli/Syfovre |
Hematology/Ophthalmology |
Apellis, Sobi |
1,944 |
1,977 |
4,931 |
|