KEG Royalties Income Fund T.KEG.UN

Alternate Symbol(s): KRIUF

Consumer Cyclical Restaurants

The Keg Royalties Income Fund (the Fund) is a limited-purpose open-ended trust. The Fund’s objective is to provide consistent monthly distributions to unitholders at the highest sustainable level. The Fund, through its subsidiary The Keg Rights Limited Partnership (the Partnership), purchased The Keg trademarks and other related intellectual property (the Keg Rights) from Keg Restaurants Ltd. (KRL). The business of the Partnership is the ownership of the Keg Rights and, through a License and Royalty Agreement with KRL to exploit the use of the Keg Rights and the collection of the royalty payable under the License and Royalty Agreement equal to 4% of gross sales of Keg restaurants included in a specific pool (the Royalty Pool). KRL’s principal activity is the operation and franchising of Keg steakhouse and bar restaurants in Canada and the United States. The Keg GP Ltd. is the general partner of the partnership and administrator of the Fund.

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KEG Royalties Income Fund > two things to note

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Post by Robsopinionon Sep 15, 2023 1:51pm

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Post# 35638697

two things to note

Negative: SRS went from double digit up to single digit down this qaurter vs last.
Positive: the fund has under paid so far this year based on its model royalty payout, so the risk of a distribution cut is currently low.
Also important to note, about a third of the market cap is a loan gaurenteed by Fairfax, and thats like cash in the bank (paying 7.5% interest.
I'm loaded up here, but if it drops below $14, I will take what people want to give up. :)

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