Sir Royalty Income Fund SIRZF

Primary Symbol: T.SRV.UN

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.

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Sir Royalty Income Fund > Will a resumption of dividend sink the SP?

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Comment by BlueJay2020on Jul 02, 2021 4:36pm

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Post# 33487395

RE:RE:RE:Will a resumption of dividend sink the SP?

Nonsense.

Firstly, the restaurant industry is vastly different pre-and post-pandemic. The price immediately prior to COVID, reflecting short-term issues, is not a reliable guide of future value. The average price of the last 5 years is more reliable.

Secondly, the market is forward looking. The short-term distribution will be hampered by the impact of restrictions - it is the long-term possibilities that will entice buyers.

It will be getting on for the middle of next year before we really get a good idea of the new normal for distributions and company prospects.

A $1.20 dividend, assuming a yield of 7% would imply a SP of circa $17.