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.

TSX:SRV.UN - Post by User

Sir Royalty Income Fund

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Comment by logicandinertiaon Oct 22, 2019 11:18am

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Post# 30254811

RE:RE:RE:what happened?

The 17 percent cut to distribution is really sizeable and does leave quite a cushion. Given that the distribution is directly tied to sales (and the royalty is 6 percent of sales), sales would have to just plummet to cause another cut so I think management was fairly prudent. The share price reset quickly to recently yield greater than 10 percent on the REDUCED distribution of $1.05 per year. I think menu prices for most Ontario restaurants got a little high post min wage increases, and this has hurt traffic along with delivery. Adjustments are underway, but this shouldn't take away from the fact that SIR is well run and has been around and thrived for a long time. Locations are quite good , especially in the GTA. With interest rates close to 0%, patient investors should be fine at these levels IMO.

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