- Subsequent to the end of the quarter, completed the previously announced transaction to internalize its investment management function
- Portfolio assets generate Total Income of $44.1 million
- Reactivated NCIB and repurchased ~958 K units for $9.1 million, while redeeming $10 million of Series C Preferred Securities for $9.5 million
TORONTO, Aug. 13, 2025 /CNW/ – DRI Healthcare Trust (TSX:DHT) (TSX:DHT) (“DRI Healthcare”) today announced its financial results for the quarter ended June 30, 2025. DRI Healthcare’s second quarter 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.
DHT, DHT.U)) (CNW Group/DRI Healthcare Trust)” alt=”DRI Healthcare Trust (TSX:DHT, DHT.U)) (CNW Group/DRI Healthcare Trust)”>
“Over the past few months, DRI Healthcare has undergone a truly transformational period. By successfully internalizing our external manager, we now have direct alignment between our management team and our unitholders—every decision is focused squarely on creating long-term value.”, said Ali Hedayat, DRI Healthcare’s Chief Executive Officer. “We’ve integrated a deeply committed team, sharpened our operating discipline, and are executing with the benefit of a high-quality portfolio of assets with durable growth potential. I’m especially proud that our first pre-approval investment has now been approved, validating our underwriting approach and accelerating future cash flow visibility. Together, these milestones position DRI Healthcare for stronger, more sustainable returns in the years ahead.”
Q2 Highlights
- Total Income of $44.1 million;
- Total Cash Receipts of $40.2 million1;
- Adjusted EBITDA of $30.4 million2;
- Comprehensive Loss of $0.7 million;
- Adjusted Cash Earnings per Unit of $0.51 (basic and diluted)1,2;
- Received Toronto Stock Exchange (“TSX”) approval for normal course issuer bid to allow DRI Healthcare to acquire up to 3,148,536 units of DRI Healthcare (“Units”) between May 20, 2025 and May 19, 2026.
- Repurchased 958,279 Units under its Normal Course Issuer Bid (“NCIB”) at an average price of $9.54, totaling $9.1 million under the Automated Purchase Plan (“AUPP”).
- Paid a quarterly cash distribution of US$0.10 per Unit on July 18, 2025.
Subsequent to Quarter End
- Completed the previously announced transaction to internalize its investment management function, terminated the management agreement with DRI Capital Inc. (“DRI Capital”) for a termination payment of $48 million, and acquired the relevant assets of DRI Capital for a purchase price of $1 million.
- Completed the funding of the Ekterly (sebetralstat) optional payment of $22 million which increases DRI Healthcare’s royalty entitlement on net sales up to and including the first $500 million from 5.0% to 6.0% and the potential one-time sales-based milestones payment to KalVista from $50 million to $57 million. Our total investment in Ekterly is now $127 million.
- Repurchased 208,580 Units under its NCIB at an average price of US$10.24 totaling $2.1 million under the AUPP.
- Declared a quarterly cash distribution of US$0.10 per Unit for the third quarter of 2025, payable on October 20, 2025 to unitholders of record on September 30, 2025.
|
_________________________ |
|
1 Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted Cash Earnings 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 press release and in DRI Healthcare’s MD&A. |
|
2 The weighted average number of basic and diluted units for the purposes of calculating Earnings per Unit for the three months ended June 30, 2025 were 55,685,363 Units. |
Financial Highlights
|
Three months ended |
Six months ended |
|||
|
(thousands of US dollars, except per Unit amounts) |
June 30, 2025 |
June 30, 2024 |
June 30, 2025 |
June 30, 2024 |
|
Total income |
44,130 |
41,604 |
88,158 |
83,671 |
|
Management fees |
2,657 |
2,825 |
6,733 |
6,989 |
|
Performance fees |
— |
— |
533 |
231 |
|
Amortization of royalty assets |
24,751 |
25,679 |
49,496 |
50,725 |
|
Impairment of royalty assets |
— |
820 |
— |
5,200 |
|
Other expenses |
15,375 |
15,825 |
31,801 |
29,800 |
|
Gain (loss) on preferred securities |
(971) |
2,176 |
(971) |
2,176 |
|
Other loss |
— |
(764) |
— |
(1,575) |
|
Net earnings (loss) |
376 |
(2,133) |
(1,376) |
(8,673) |
|
Net unrealized gain (loss) on derivative instruments |
(1,076) |
228 |
(1,156) |
1,425 |
|
Comprehensive earnings (loss) |
(700) |
(1,905) |
(2,532) |
(7,248) |
|
Net earnings (loss) per Unit – basic |
0.01 |
(0.04) |
(0.02) |
(0.15) |
|
Net earnings (loss) per Unit – diluted |
0.01 |
(0.04) |
(0.02) |
(0.15) |
|
Total Cash Receipts1 |
40,152 |
42,955 |
102,142 |
106,472 |
|
Adjusted EBITDA1 |
30,372 |
32,903 |
82,031 |
88,367 |
|
Adjusted EBITDA Margin1 |
76 % |
77 % |
80 % |
83 % |
|
Adjusted Cash Earnings per Unit – Basic1 |
0.51 |
0.49 |
0.95 |
0.97 |
|
Adjusted Cash Earnings per Unit – Diluted1 |
0.51 |
0.49 |
0.95 |
0.97 |
|
Weighted average number of Units – Basic |
55,685,363 |
56,426,259 |
55,743,876 |
56,392,250 |
|
Weighted average number of Units – Diluted |
55,685,363 |
56,426,259 |
55,743,876 |
56,392,250 |
Asset Performance
As at June 30, 2025, DRI Healthcare’s portfolio included 28 royalty streams on 21 products that address a variety of therapeutic areas, such as oncology, neurology, ophthalmology, endocrinology, hematology, dermatology, lysosomal storage disorders and immunology. On June 30, 2025, the royalty asset portfolio had a book value, net of accumulated amortization, of $774.4 million, which during the three and six months ended June 30, 2025 generated Total Cash Royalty Receipts1 of $40.2 million and $102.1 million, respectively, and royalty income of $44.8 million and $84.4 million, respectively. On June 30, 2025, the financial royalty asset had a book value of $54.2 million and generated a gain (loss) on the change in its fair value of $(0.9) million and $1.7 million, respectively, during the three and six months ended June 30, 2025.
|
_______________________ |
|
1 Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted EBITDA Margin and Adjusted Cash Earnings 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 press release and in DRI Healthcare’s MD&A. |
Portfolio
|
(thousands of US dollars) |
Cash Receipts |
|||||
|
Three months ended |
Six months ended |
|||||
|
Royalty Asset |
Therapeutic Area |
Marketer(s) |
June 30, |
June 30, |
June 30, |
June 30, |
|
Casgevy |
Hematology |
Vertex Pharmaceuticals |
— |
— |
5,000 |
— |
|
Empaveli/Syfovre |
Hematology/Ophthalmology |
Apellis, Sobi |
147 |
2,552 |
1,272 |
2,575 |
|
Eylea I |
Ophthalmology |
Regeneron, Bayer, Santen |
1,158 |
1,321 |
2,680 |
|