Investors

Why Invest in Freehold Royalties Ltd.?

We have an attractive dividend yield.

  • Currently, we pay a monthly dividend of $0.14 per share, which equates to a cash-on-cash yield of 7% as at December 31, 2013.
  • We offer a dividend reinvestment plan for Canadian holders at a 5% discount to market prices.

Our royalty focus results in strong netbacks.

  • We manage one of the largest non-Crown portfolios of oil and gas royalties in Canada. Royalties offer the benefit of sharing in production revenue without exposure to the capital costs, operating costs, and environmental costs typically associated with oil and gas operations.
  • Our high percentage of royalty production (70% in 2013) gives us one of the lowest all-in cost structures in our sector and results in strong netbacks.

Our solid track record of performance spans more than 17 years.

  • We have outperformed the major indices. If you had invested $10 in Freehold at the time of our Initial Public Offering (November 1996), and reinvested all of the distributions and dividends we have paid ($27.25 per share), your investment would be worth $168 as at December 31, 2013.

  • Our Manager has an experienced management team and a full complement of audit, accounting, land, petroleum engineering and geoscience personnel providing support.

  • Since inception and to date, we have invested $660 million on acquisitions, with a focus on royalty interests.

Our broad asset base provides a diversified revenue stream.

  • We have interests in three million gross acres of land, geographically widespread from northeastern British Columbia to southern Ontario.

  • We have interests in more than 30,000 wells.

  • Our properties have upside development potential. Many of our operators continue to actively drill new wells on our royalty lands.

Our production is oil weighted.

  • Our production is approximately 64% oil and NGL and unhedged, allowing our shareholders to benefit from the current strength of oil prices.

We are financially strong with a low risk profile.

  • We have a healthy balance sheet with a net debt to net debt plus equity ratio of 12% of total capitalization.

  • At December 31, 2013, our net debt obligations totalled $49 million, and available capacity under our credit facilities was $161 million.

  • Our diversified asset base, along with a conservative approach to managing our assets, gives us a low risk profile.

 

Note:  All information is at the period ended December 31, 2013 unless otherwise stated.