Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

Financial Services Asset Management

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 > Investor Relations

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Comment by Fabozzion Jan 12, 2021 5:32pm

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Post# 32278937

RE:RE:RE:RE:RE:RE:Investor Relations

I owned some in the 8s/9s pre-Covid and then accumulated more significantly in the 1.60-2.40 area to get an average cost in the low 2s. I would book a good return if this proposed transaction were to be finalized. But as Logicandinertia has so effectively described the forward looking valuation on this should be signficantly higher...and that's why I accumulated. The running yield on the takeout price a year forward should be 15-20% and grow from there IMO. And the fact the guys at SIR Corp want to borrow to buy out the Sir Royalties and have roughly the same amount of debt outstanding pisses me off. Shareholders need to be prepared, however, that if this is turned down without a competing offer the first move in price, other things equal, will be lower.

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