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Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s):  SIRZF

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

Bullboard Posts
Comment by logicandinertiaon Nov 05, 2019 8:13pm
221 Views
Post# 30313214

RE:RE:RE:RE:RE:RE:what happened?

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.  

Bullboard Posts