Sir Royalty Income Fund T.SRV.UN

The Facts

[SurfForWealth]

Anion, most of your statements are without merit and simply show us how little you understand this trust structure & the business of SIR. The SIR Royalty Income Trust does not own or run the SIR business assets. SIR outlets are almost entirely wholly owned, except for a small numbers of exceptions and not franchised. It is a matter of opinion whether this is a good thing or not. However the Trust simply receives a 6% royalty on the total revenue applicable to the relevant assets. As such it will always pay out 100% of those royalties collected less an effective MER of about 0.85% and some expenses. The SIR business itself is a complex ownership structure which has not been profitable and until the creation of the Trust was in poor financial condition after taking on debt to buy out many minority owners and turn locations into wholly owned outlets. The Trust provided much needed cash in exchange for the royalties. This makes SIR corp financially strong at this point allowing them the resources to remodel and open new locations. These expenses will not have any direct effect on the Trust. It is hoped that this new life will help to grow the revenue pool which in turn will increase the pool of royalties and distributable cash. SIR Corp effectively owns 10% of the Trust units as part of the deal. It is my opinion as a frequent customer of many of their locations that they run a great & strong franchise. If you read the prospectus you would learn that they have a very high rate of revenue per location & other favourable statistics. At this point SIR Corp is financially strong and there is very low risk to the royalty/distribution payouts. Twelve percent yield with some potential growth is a decent return. However in the longer term if SIR Corp cannot figure out a way to become profitable then they will eventually eat through the cash and the units of the Trust will certainly be at risk. I will be watching the SIR Earnings results as they get posted on Sedar under the SIR Royalty Income Trust site for indications of success or failure. I have been invested here since mid December at $9.45-$9.80. Cheers!!!