Trading Update and Follow-on Investment

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to provide guidance on its trading for its third financial quarter ending 31 December 2023 ("Q3 FY24") and to announce a follow-on investment of CA$8.6 million (approximately £5.1 million) into its existing royalty partner Creō-Tech Industrial Group Inc. ("Creō-Tech").

Trading Update

Based on current trading, Duke expects to achieve recurring cash revenue* of £6.3 million in Q3 FY24. This represents a 12% increase on Q3 FY23 (£5.6 million) and an increase on the prior quarter, Q2 FY24, which saw the Company deliver record recurring cash revenue of £6.2 million.

Overview of quarterly revenue growth:

* Recurring cash revenue excludes buyback premium receipts and cash gains from equity sales

** Total cash revenue is monthly cash distributions from Duke's royalty partners plus cash gains received from the sales of equity assets and buyback premiums

Other Highlights

• In December, Duke invested a further CA$8.6 million into Creō-Tech, taking its total exposure to CA$27.1 million (£16.0 million). The investment will be used to facilitate the refinancing of its existing senior lender.
• During the quarter, Duke strengthened its investment team adding two new associate hires to take advantage of the current market opportunities.
• Duke also embarked on a review of the Company's branding and positioning. This review is still ongoing, and the Board looks forward to sharing these exciting changes upon completion in the next quarter.

Neil Johnson, CEO of Duke Royalty, said:

"We are pleased to report that despite the ongoing macroeconomic uncertainties, we continue to deliver revenue growth, with Q3 FY24 on course to maintain this upward trend, underpinning our stable dividend which at the current share price, represents an approximate 9% yield.

"We believe the Company's rebrand, alongside our expanded investment team, will position Duke to take advantage of the abundance of new opportunities in the Private Credit market, which has become increasingly mainstream in the SME lending space."