KEG Royalties Income Fund T.KEG.UN

Share price appreciation opportunity

[flamingogold]

Typically, Keg is not the stock one would invest for cap appreciation. But, given recent public protests and how governments are moving away from a focus on case counts and now the easing of restrictions, the liklihood of future shutdowns is reduced substantially.

Keg therefore stands to greatly benefit. Historically, if I'm not mistaken, the distribution rate is about 6%. Given the current share price of $15 and a distribution rate of $7.6%, there is an opportuntiy for a catch up play here as 6% would imply a share price of around $19 or 25% higher than currently.

[logicandinertia]

I hope so. Looking back to when the KEG unit price was really performing was the periods when same store sales (SSS) growth was robust (2013 to 2017), with figures such as 11% in 2014, 8% in 2015, 1.5% in 2016, 4.7% in 2017, and slowing to 1.5% in 2018 before going negative in 2019 at -1.3%.   While the restaurant count hasn’t really grown much (around 101 in 2011 and 107 in 2022), the