RE:RE:RE:RE:RE:RE:what happened? Quick follow up regarding this trust.
I indicated in my last post that SIR had returned $68 million since Jan 1/2012.
the market cap on Jan 1/2012 was $33 million. Even after the horrible last few months , the market cap has climbed 162 percent (using today price) since 2012. Moreover, cash distributions have been $68 million. So total return on that $33 million has been $53 million in market cap and $68 million in distributions , totaling $121 million . Units outstanding did pop up from 7.3 to 8.4 million so per unit return was lower , but still decimated the broader cdn market (even accounting for the recent price drop).
If SIR can only hold its distribution steady at the reduced $1.05 per unit (despite its long term track record) for the next seven years, the return on the dividends alone (assuming reinvestment) would be 97 percent (power of compounding). This also assumes that the share price yield remains at double digits. A reduction in the yield pushes the share price up, enhancing the return.
Not risk less , but certainly massively reduced risk at present. If you think Canada and specifically the Toronto market is going to plummet, then SIR should be the least of your worries. For the patient investor looking for yield, SIR more appealing than other inferior restaurants royalties that have yet to cut (yet still trade at a yield 3-4 points lower than SIR). Just my $0.02. Good luck.