07:31 AM EDT, 05/15/2026 (MT Newswires) -- Diversified Royalty (DIV.TO) first quarter net income fell slightly but adjusted revenue climbed higher, the company said on Friday. The company separately said it is acquiring its best performing royalty partner Mr Lube + Tires for $235 million.

Net income for the quarter ended March 31, edged down to $7.6 million from $8.0 million for the prior year period. The company did not provide per share amounts. The lower net income was mainly due to higher expenses and finance costs and impairment loss due to the 10-year, fixed royalty payment period of the Air Miles amendment, announced in January.

Adjusted revenue climbed to $18.8 million from $17.0 million, but missed the $19.32 million consensus analyst estimate, as compiled by FactSet. Adjusted revenue increased primarily due to Mr. Lube + Tires'and Oxford's positive SSSG, the company said.

"The first quarter of 2026 saw an overall positive performance. Our top royalty partner, Mr. Lube + Tires, continues to produce positive growth, generating SSSG6 of 3.0%, albeit at a reduced level compared to the comparable quarter. Oxford also produced positive SSSG of 4.4% while Mr. Mikes results were flat,"said chief executive Sean Morrison.

Diversified Royalty separately said it is acquiring the Mr. Lube + Tires franchisor business in Canada for $235 million. Mr Lube + Tires is its largest and best performing royalty partner, Morrison said.

The company estimates the acquisition will increase its distributable cash per share from $0.3128 on a run-rate basis to $0.3478 on a pro-forma basis.

The board is maintaining the current $0.285 per share annualized dividend, to provide Diversified Royalty the financial flexibility to deleverage following the acquisition's close, a statement added.

Diversified Royalty shares closed up $0.07, to $4.32 on Thursday on the Toronto Stock Exchange.