Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

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.

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Sir Royalty Income Fund > Just need to get through winter

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Comment by logicandinertiaon Nov 10, 2020 2:12pm

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RE:Just need to get through winter

Respectfully disagree about winter being a severe risk. With the vaccines now coming definitively late this year, the risk of another year of quasi lockdown has plummeted to zero. The big risk around SIR was no effective vaccine on the horizon and the bank takes action. That tail risk of going to zero is now very low, which leaves an asymmetric return profile to the upside for the Trust. Hence why the stock is starting to lift.

Even prior to the vaccine disclosure, Sir's banking partners had provided it with covenant waivers and they hadnt touched the BDC loan. Net debt will have fallen when Corp reports their next set of results.

I still contend that this can be a $7-8 stock within 15 months.

good luck.

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