Sir Royalty Income Fund SIRZF

2021 Third Quarter Results

[Betteryear2]

BURLINGTON, ON, Nov. 11, 2021 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) (the "Fund") today reported its financial results for the third quarter ("Q3 2021") and nine months ("YTD 2021") ended September 30, 2021, and provided a business update. 

Q3 2021 Summary

• The operations of SIR Corp. ("SIR") were adversely impacted by a series of restrictions in the various regions in which it operates that were introduced to mitigate the spread of COVID-19. However, the easing of operating restrictions, particularly in Ontario, starting in June 2021, resulted in increased Pooled Revenue in Q3 2021 compared to the third quarter ended September 30, 2020 ("Q3 2020"). Please refer to the Fund's Management Discussion and Analysis ("MD&A") for Q3 2021 for additional details on the timing and duration of various restrictions that impacted SIR's operations.
   
• Pooled Revenue for Q3 2021 increased 34.2% to $53.5 million, compared to $39.9 million in Q3 2020.
   
• Royalty income in the Partnership increased to $3.2 million in Q3 2021 from $2.4 million for Q3 2020.
   
• Equity income from the Partnership, which represents the Fund's pro rata share of the residual distributions of the Partnership, was $1.7 million in Q3 2021 compared to $1.2 million in Q3 2020.
   
• Net earnings were $2.2 million, or $0.26 per Fund unit (basic and diluted), for Q3 2021 compared to a net loss of $15.7 million, or $1.87 per Fund unit (basic and diluted), for Q3 2020.
   
• Adjusted Net Earnings(1) were $2.2 million for Q3 2021 compared to $1.3 million for Q3 2020.
   
• The Royalty Pooled Restaurants generated same store sales growth ("SSSG")(2) of 34.9%.
   
• Distributable cash(3) totaled $2.0 million, or $0.24 per unit (basic and diluted), and cash distributed to unitholders totaled $1.9 million, representing a payout ratio(3) of 94.5%. The Fund's target payout ratio(3) is 100% per annum.
   
• On July 15, 2021, the Fund announced that its Trustees approved the resumption of monthly distributions effective July 30, 2021. The initial monthly distribution of $0.07 per Fund Unit was paid on July 30, 2021 to unitholders of record as at July 22, 2021.
   
• On September 9, 2021, the Fund announced that its Trustees approved a $0.02 increase in monthly distributions, resulting in an increase in the Fund's monthly distributions from $0.07 per Fund Unit to $0.09 per Unit, effective for the cash distribution paid on September 30, 2021 to unitholders of record as at September 20, 2021.

"During the quarter, our operations continued to gradually return to a more normalized environment due to the easing of COVID-19 related operating restrictions, particularly in Ontario," said Peter Fowler, CEO of SIR Corp. "We experienced significant growth in same store sales and Pooled Revenue in the quarter as we welcomed our guests back, while maintaining our focus on safety measures. The resumption of monthly distributions to Fund unitholders reflects these improved business conditions."