DRI Healthcare Trust Reports Fourth Quarter and Fiscal 2023 Results

– 82% royalty income growth over prior year period underscores transformative year –

– Announcing 2024 royalty income guidance of US$153 to US$155 million, excluding milestone income and any new transactions –

– Increasing quarterly cash distribution –

TORONTO, Feb. 28, 2024 /CNW/ – DRI Healthcare Trust (TSX:DHT) (TSX:DHT) (“DRI” or the “Trust”), a global leader in providing financing to advance innovation in the life sciences industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2023. The Trust’s annual 2023 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.

“2023 marked a significant step forward for the growth of the Trust,” said Behzad Khosrowshahi, the Trust’s Chief Executive Officer. “Our solid performance resonated through all aspects of the business. We invested in strong new assets to complement our existing portfolio, which continues to perform at a high level; we expanded our shareholder base with several new investors; and we rounded out our capital structure to enhance our deployment capability moving forward. In addition to our recently announced updated deployment and royalty income CAGR guidance targets, we are excited to announce for the first time our 2024 royalty income guidance of US$153 million to US$155 million, excluding any new transactions. This figure also excludes milestone income, allowing for year-over-year comparability. Having deployed US$500 million in the past twelve months coupled with these recently updated guidance targets, we believe we have laid a strong foundation upon which to continue delivering further accretive value for our unitholders.”

Fourth Quarter Highlights

Total Income of US$75.8 million;
Normalized Total Cash Receipts of US$52.3 million1;
Adjusted EBITDA of US$46.5 million1;
Comprehensive Earnings of US$20.4 million;
Basic and diluted Adjusted Cash Earnings per Unit of US$1.03 and US$1.02, respectively1,2;
Net Earnings per Unit of US$0.39 (basic and diluted)2;
Increased total credit available under our credit facility to US$500.0 million; and
Declared a special cash distribution of US$0.2662 per unit, a special unit distribution of US$0.7640 per unit and a regular quarterly cash distribution of US$0.075 per unit to unitholders of record as at December 31, 2023.

Fiscal 2023 Highlights 

Deployed US$384.7 million in 5 royalty transactions;
Completed two follow-on public offerings of 18,653,000 units at US$8.123 per unit for gross proceeds of US$151.5 million;
Total Income of US$166.3 million;
Normalized Total Cash Receipts of US$131.2 million1;
Adjusted EBITDA of US$113.2 million1;
Comprehensive Earnings of US$91.2 million;
Basic and diluted Adjusted Cash Earnings per Unit of US$2.53 and US$2.52, respectively1,4;
Basic and diluted Net Earnings per Unit of US$2.08 and US$2.07, respectively4; and
Declared total distributions of US$92.1 million, comprised of cash distributions of US$49.1 million and unit distributions of US$43.0 million.

Subsequent to Quarter End

Deployed US$115.0 million to expand interest in Omidria royalties by replacing previously agreed-upon annual royalty caps with a 30% royalty on all U.S. net sales; and
Declared a quarterly cash distribution of US$0.085 per unit for the first quarter of 2024, payable on April 19, 2024 to unitholders of record on March 31, 2024.

Financial Highlights

Asset Performance 

As at December 31, 2023, the Trust’s portfolio included 26 royalty streams on 20 products that address a variety of therapeutic areas, such as oncology, neurology, ophthalmology, endocrinology, hematology, dermatology, lysosomal storage disorders, immunology and influenza. On December 31, 2023, the royalty asset portfolio had a book value, net of accumulated amortization, of US$$706.1 million, which generated Total Cash Royalty Receipts1 of US$52.3 million and US$127.9 million during the three months and year ended December 31, 2023, respectively, and royalty income of US$75.4 million and US$158.9 million during the three months and year ended December 31, 2023, respectively.

Portfolio

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