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

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Post by logicandinertiaon Mar 14, 2018 9:30pm

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Post# 27717511

Q4 results strong and portend to an encouraging 2018

Q4and full year results shows continued execution and strong same store growth in the flagship brands. Jack Astor’s (75 percent of revs) did a 5.5 percent comp while Scaddabush remains in double digits (10.6%) and total same store was 4.6 percent. Note that these are some of the best jacks numbers in years. Clear that Jacks renovations are seeing some effectiveness and addressable market for the Scaddabush concept is considerable. The Leafs and Raptors momentum this year can only help Jacks, especially the downtown Toronto locales. And multiple new Scaddabush were added to the fund on Jan 1/18. this Is not a liquid stock but pays an 8 percent dividend and has considerable optionality, given zero franchising, virtually no presence outside of Ontario , and track record of introducing successful new concepts (Scaddabush). Note mgmt commentary: With three new Scaddabush restaurants added to the Royalty Pool at the beginning of 2018, there are now seven Scaddabush locations included in the Royalty Pool. We are excited by the growth prospects for this brand, both for SIR and the Fund."