Mr. Sean Morrison reports

DIVERSIFIED ROYALTY CORP. ANNOUNCES A 6.8% INCREASE TO ITS DIVIDEND

Diversified Royalty Corp. is increasing its monthly dividend by 6.8 per cent.

The board has approved an increase to the dividend from 18.33 cents per share per month (22 cents per share on an annualized basis) to 19.58 cents per share per month (23.5 cents per share on an annualized basis) effective October, 2022.

Sean Morrison, president and chief executive officer of Diversified Royalty, stated: "DIV is pleased to announce a 6.8-per-cent dividend increase as our royalty partners, on an aggregate basis, experience positive trends consistent with DIV's second quarter earnings results announced Aug. 12, 2022. Following this dividend increase, DIV's annualized dividend of 23.5 cents per share will have fully recovered to prepandemic levels, and with a lower payout ratio (pro forma approximately 92 per cent for Q2, 2022). Management and our board will continue to monitor the performance of DIV and its royalty partners, and will consider further adjustments to its dividend while maintaining a target annual payout ratio below 100 per cent."

About Diversified Royalty Corp.

Diversified is a multiroyalty corporation, engaged in the business of acquiring top-line royalties from well-managed multilocation businesses and franchisors in North America. Diversified's objective is to acquire predictable, growing royalty streams from a diverse group of multilocation businesses and franchisors.

Diversified currently owns the Mr. Lube, Air Miles, Sutton, Mr. Mikes, Nurse Next Door and Oxford Learning Centres trademarks. Mr. Lube is the leading quick-lube service business in Canada, with locations across Canada. Air Miles is Canada's largest coalition loyalty program. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes currently operates casual steak house restaurants primarily in Western Canadian communities. Nurse Next Door is one of North America's fastest-growing home care providers with locations across Canada and the United States, as well as in Australia. Oxford Learning Centres is one of Canada's leading franchised supplemental education services.

Diversified's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. Diversified intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows.

We seek Safe Harbor.