Sir Royalty Income Fund SIRZF

Primary Symbol: T.SRV.UN

Consumer Cyclical Restaurants

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

TSX:SRV.UN - Post by User

Sir Royalty Income Fund > Discount to peers

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Comment by BlueJay2020on Dec 10, 2020 5:06pm

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Post# 32082148

RE:Discount to peers

Yes, I've reached the same conclusion as you and I am nibbling away here and there. Because this is such an illiquid stock, you cannot wait for the dividend to be restored, because the price is going to go through the roof.

The other factor here is that royalties (as I understand it) have only been deferred. But sales are still being made and contractual royalties accrued, albeit at much reduced levels. So not only can we expect a dividend to be restored at some point in 2021, but presumably some form of special distribution as well - as we saw with A&W.

The beauty of this stock, potentially, is a significant capital gain followed by a very meaty dividend going forward, with a yield on cost at a very eye-popping rate north of 20 percent.

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