Mr. Behzad Khosrowshahi reports

DRI HEALTHCARE TRUST REPORTS FIRST QUARTER 2024 RESULTS

DRI Healthcare Trust has released its financial results for the quarter ended March 31, 2024. The trust's first quarter 2024 financial statements and management's discussion and analysis (MD&A) have been filed on SEDAR+.

"The trust started the year with a successful quarter as the growth assets we added to the portfolio over the last 18 months began to generate significant returns," said Behzad Khosrowshahi, the trust's chief executive officer. "Our second transaction with Omeros on Omidria shows how we take a partnership rather than purely transactional approach and are a preferred partner for repeat deals. This transaction helps continue building the foundation for further portfolio growth by increasing our exposure to an immediately cash-flowing asset. Our recent preferred securities refinancing increased clarity in our capital structure and solved a substantial dilution overhang. We believe we are set for continued success with an improved cost of capital and a robust pipeline ahead of us."

First quarter highlights:

• Deployed $115-million (U.S.) in the expansion of royalty entitlement on U.S. net sales of Omidria;
• Total income of $42.1-million (U.S.);
• Normalized total cash receipts of $63.5-million (U.S.) (1);
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $55.1-million (U.S.) (1);
• Comprehensive loss of $5.0-million (U.S.);
• Adjusted cash earnings per unit of 47 U.S. cents (basic and diluted) (1) (2);
• Net loss per unit of 11 U.S. cents (basic and diluted) (2);
• Paid a quarterly cash distribution of 8.5 U.S. cents per unit on April 19, 2024.

Subsequent to the quarter-end:

• Declared a quarterly cash distribution of 8.5 U.S. cents per unit for the second quarter of 2024, payable on July 19, 2024, to unitholders of record on June 30, 2024;
• Completed preferred securities and warrants refinancing on April 23, 2024.

(1) Normalized total cash receipts and adjusted EBITDA are non-GAAP (generally accepted accounting principles) financial measures. Adjusted cash earnings per unit is a non-GAAP ratio. These measures are not standardized measures under IFRS (international financial reporting standards) and might not be comparable with similar financial measures disclosed by other issuers.

(2) The weighted average number of units for the purposes of calculating earnings per unit for the three months ended March 31, 2024, were 56,358,240 for both basic and diluted.

Asset performance

As at March 31, 2024, the trust's portfolio included 25 royalty streams on 19 products that address a variety of therapeutic areas, such as oncology, neurology, ophthalmology, endocrinology, hematology, dermatology, lysosomal storage disorders and immunology. On March 31, 2024, the royalty asset portfolio had a book value, net of accumulated amortization, of $789.5-million (U.S.), which, during the three months ended March 31, 2024, generated total cash royalty receipts (1) of $63.5-million (U.S.) and royalty income of $41.3-million (U.S.).

Liquidity and capital

On March 31, 2024, the trust had cash and cash equivalents of $66.6-million (U.S.). The trust's credit facility had an outstanding principal balance of $239.5-million (U.S.) on March 31, 2024.

The trust had 56,358,240 units issued and outstanding on March 31, 2024.

Distributions

On Feb. 28, 2024, the board of trustees approved a quarterly cash distribution of 8.5 U.S. cents per unit to unitholders of record as of March 31, 2024, which was paid on April 19, 2024. The trust also announced today that its board of trustees has declared a quarterly cash distribution in the amount of 8.5 U.S. cents per unit for the second quarter of 2024, payable on July 19, 2024, to unitholders of record as of June 30, 2024.

Omidria royalty amendment

On Feb. 1, 2024, the trust amended its existing royalty agreement with Omeros Corp. to expand its royalty interest on the U.S. net sales of Omidria for an upfront purchase price of $115.0-million (U.S.). In accordance with the terms of the amended royalty agreement, the royalty seller may be entitled to receive up to $55.0-million (U.S.) in potential sales-based milestone payments. Accordingly, the trust is now entitled to receive a 30-per-cent royalty on U.S. net sales of Omidria until Dec. 31, 2031, and all previously agreed-upon annual royalty caps have been eliminated. As part of the amendment, the trust is no longer entitled to ex U.S. royalties.

Omidria was approved by the U.S. Food and Drug Administration (FDA) in May, 2014, and the European Medicines Agency (EMA) in July, 2015, for intracameral use during cataract surgery or intraocular lens replacement to maintain pupil dilation and reduce postoperative pain. Omidria was launched in the United States in 2014 but has yet to be launched in the European Union. Omidria is marketed by Rayner Surgical, one of the world's leaders in the field of cataract surgery with operations in over 80 countries.

First quarter 2024 conference call and webcast

As previously announced, management will hold a conference call on Tuesday, May 7, 2024, at 8 a.m. ET, to review the trust's 2024 first quarter results. You can join the call by dialling 1-888-664-6392 or 416-764-8659 approximately 15 minutes prior to the call to secure a line.

A live webcast of the conference call, including a slide presentation, will be available. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on the trust's website following the call date. Investors should carefully review the factors, assumptions and uncertainties included in such related presentation.

About DRI Healthcare Trust

DRI Healthcare is managed by DRI Capital Inc., the pioneer in global pharmaceutical royalty monetization with a 35-year history of accelerating innovation by providing capital to inventors, academic institutions and biopharma companies. Since its founding in 1989, DRI Healthcare has deployed more than $3.0-billion (U.S.), acquiring more than 70 royalties on 45-plus drugs, including Eylea, Keytruda, Orserdu, Spinraza, Stelara, Vonjo, Zejula and Zytiga. DRI Healthcare's units are listed and traded on the Toronto Stock Exchange in Canadian dollars under the symbol DHT.UN and in U.S. dollars under the symbol DHT.U.

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