Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

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.

TSX:SRV.UN - Post by User

Sir Royalty Income Fund > Fiscal 2022 First Quarter Results

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Comment by BlueJay2020on Dec 26, 2021 1:17am

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Post# 34262579

RE:RE:RE:Fiscal 2022 First Quarter Results

It's mostly standard boilerplate stuff to satisfy the auditors and really a very similar tone to the last 18 months. Upside is never really referred to.

You have to read between the lines. If the bank has supported them thus far there is no reason why they won't do in future, assuming we don't reach Armageddon with perpetual lockdowns.

If you believe vaccines will prevent lengthy restrictions, then SRV is a strong hold and even a speculative buy at just over $11.

JayBanks wrote:

I haven't read many quarterlies from this company yet so I don't know thier normal tone, but that sounded somewhat ominous with few attempts at perks.

As you mention they compare where they have been during this pandemic, but I like your comparison of 75% of where they were, I think that's more useful info especially since this situation isn't over. It signals there is upside, but mentioning closed locations and one not contributing and laying out the already known restrictions kinda reinstalls they are still in rough shape.

The mention of losses followed by the section on "Liquidity and Capital Resources" sounded rough. I don't think there would be an issue negotiating longer term credit agreements and the like, but it seemed like a shot across the bow.

Does anyone that's used to this company think this is normal speak? Or am I reading too into these statements? It seems to signal they wouldn't be surprised to see a rougher outlook for themselves.