NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW
CALGARY, Alberta, May 07, 2026 (GLOBE NEWSWIRE) -- Alaris Equity Partners Income Trust (together, as applicable, with its subsidiaries, "Alaris" or the "Trust") is pleased to announce its results for the three months ended March 31, 2026. The results are prepared in accordance with IFRS Accounting Standards. All amounts below are in Canadian dollars unless otherwise noted.
Highlights
Net Book Value Growth: Net book value(4) per unit increased by $0.52 to $25.31, The increase was driven by $0.55 per unit in earnings from operations, a $0.44 per unit unrealized foreign exchange gain, offset by $0.10 per unit in finance costs and income tax, and $0.37 per unit in distributions to unitholders.
Revenue and Operating Income: Total revenue and operating income increased by 2.7% in Q1, driven primarily by an 11.4% increase in Partner distributions, reflecting higher capital investment throughout 2025 as well as higher-than- expected common distributions.
Partner Revenue Ahead of Guidance: Q1 total Partner revenue of $48.6 million exceeded guidance by 2%, including $47.9 million in distributions and $0.7 million in third-party fees, reflecting contributions from new investments in 2025 and higher-than-expected common distributions.
Cash Flow & Payout ratio: Alaris Net Distributable Cash Flow(1) increased 6.6% compared to Q1 2025, as a result of higher partner distributions offset by a net increase in operating costs. Alaris' Payout Ratio(5) was 51.9% for the quarter (2025 - 51.2%), remaining below the Trust's 65%–70% target range.
Distribution Growth: In April, the quarterly distribution was increased 3% to $0.38 per unit (annualized $1.52), supported by capital deployment, reset growth and a payout ratio below target range. Proforma the increase in distribution, Alaris' payout ratio increases to approximately 60%.
Capital deployment: Subsequent to March 31, 2026, Alaris completed a $75.3 million investment in a new Canadian partner, Kubik Inc.
Portfolio Fundamentals: Alaris' Portfolio Partners have maintained a weighted average Earnings Coverage Ratio(3) of 1.5x. Of the current portfolio, 16 of 24 Partners above 1.5x and carry no debt or senior debt leverage below 1.0x senior debt to EBITDA.
"This was another solid quarter for our company, with fair value gains and strong portfolio health. Adding our 24th partner and another dividend increase shortly after the quarter ended keeps our momentum going into Q2. We anticipate further deployment and the potential for partner exits in the second half of this year as the climate for transactions is constructive." said Steve King President and CEO.
Results of operations
Three months endedMarch 31
$ thousands except per unit amounts
2026
2025
% Change
Change in Net book value (4) per unit
$
0.52
$
0.12
Net book value (4) per unit
$
25.31
$
24.34
+4.0
%
Total revenue and operating income
$
37,369
$
36,388
+2.7
%
Cash from / (used in) operations, prior to changes in working capital
$
20,431
$
19,817
+3.1
%
Total Partner distribution revenue (9)
$
47,878
$
42,972
+11.4
%
Alaris net distributable cashflow (1)
$
32,324
$
30,320
+6.6
%
Payout Ratio (5)
51.9
%
51.2
%
+0.7
%
Annualized distribution yield on preferred capital invested (2)
12.0
%
12.8
%
-80pts
Capital deployment
$
871
$
120,883
-99.3
%
Revenue and Earnings
Total revenue and operating income increased 2.7% to $37.4 million compared to Q1 2025. The increase was primarily attributable to contributions from new and follow-on investments in 2025.
Earnings and comprehensive income increased by 75.9% to $40.4 million and the increase was primarily attributable to an unrealized foreign exchange gain of $20.1 million (Q1 2025, loss $4.9 million).
Partner Distributions and Portfolio Performance
Total Partner distribution revenue(9) increased 11.4%, reflecting higher contributions from new and follow-on investments including Berg, PEC, McCoy, Shipyard, Cresa, Renew and Optimus in 2025. During Q1 2026, Edgewater was the most significant of the common distributions and higher than expected at $1.7 million, compared to $0.6 million in Q1 2025.
The annualized distribution yield on preferred capital invested(2) was 12.0% in Q1 2026 compared to 12.8 in Q1 2025.
Cash Flow and Capital Allocation
Cash from operations prior to changes in working capital increased compared to 2025, primarily due to higher distributions from Partner investments and proceeds from the partial redemption of Partner investment 3E.
Alaris Net Distributable Cash Flow(1) increased by 6.6%, due to higher preferred distributions from new and follow-on investments including Berg, PEC, McCoy, Shipyard, Cresa, Renew and Optimus, made throughout 2025. The payout ratio was 51.9% as compared to 51.2% in Q1 2025, remaining below the Trust's target range of 65%–70%.
Outlook
Total Partner revenue(9) for Q2 2026 is expected to be approximately $47.9 million, reflecting seasonal distribution timing. Actual results may vary based on the timing and level of common distributions.
Run Rate Revenue(6) for the next twelve months is estimated at approximately $203.6 million, based on current contractual terms. Run Rate Payout Ratio(8) is expected to range between 60% and 65%, excluding the impact of potential future investments.
Run Rate Cash Flow ($ thousands except per unit)
Amount ($)
$ / Unit
Run Rate Revenue, Partner Distribution revenue
$
203,600
$
4.49
General and administrative expenses
(20,500
)
(0.45
)
Third party Interest and taxes
(75,500
)
(1.66
)
Net cash from operating activities
$
107,600
$
2.38
