SIR Royalty Income Fund Reports 2025 Second Quarter Financial Results

BURLINGTON, ON, Aug. 7, 2025 /CNW/ – SIR Royalty Income Fund (TSX:SRV) (the “Fund”) today reported its financial results for the second quarter (“Q2 2025”) and six months (“YTD 2025”) ended June 30, 2025.

“We generated Pooled Revenue growth of 8.1% in the quarter, supported by the four new restaurants that were added to the Royalty Pool in January 2025, and consolidated same store sales increased by 1.1%, driven by the continued strong performance of Scaddabush, which generated same store sales growth of 7.0%,” said Peter Fowler, CEO of SIR Corp. (“SIR”). “During the quarter, SIR entered into a credit agreement with new senior lenders that provides it with greater financial capacity and flexibility to advance its growth objectives. We also opened a new Scaddabush location in Barrie, Ontario, bringing the current number of Scaddabush restaurants to 14, positioning us to further benefit from the popularity of this brand.”

Q2 2025 Summary

• Pooled Revenue totaled $72.9 million, an increase of 8.1% compared to $67.5 million for the three months ended June 30, 2024 (“Q2 2024”).
• Royalty income in the SIR Royalty Limited Partnership (the “Partnership”) increased to $4.4 million, from $4.0 million in Q2 2024.
• Equity income from the Partnership, which represents the Fund’s pro rata share of the residual distributions of the Partnership, increased to $2.9 million, from $2.8 million in Q2 2024.
• The Royalty Pooled Restaurants (the “Royalty Pool”) had consolidated same store sales (“SSS”)⁽¹⁾ growth of 1.1%.
• Net earnings were $3.5 million, compared to $3.8 million in Q2 2024.
• Distributable cash⁽²⁾ totaled $2.5 million, or $0.30 (basic and diluted) per Fund Unit, and cash distributed to unitholders totaled $2.4 million, representing a payout ratio⁽²⁾ of 94.5%. The payout ratio⁽²⁾ since the Fund’s inception in 2004, up to and including Q2 2025, is 99.9%, in line with the Fund’s target payout ratio⁽²⁾ of 100% per annum.
• SIR Corp. (“SIR”) permanently closed the Jack Astor’s® location in the Greenfield Park neighbourhood of Longueuil, Quebec effective April 27, 2025. This restaurant will cease to be a Royalty Pooled Restaurant effective January 1, 2026.
• On May 15, 2025, SIR entered into a new credit agreement (“New Credit Agreement”) with a syndicate of two Schedule 1 Canadian chartered banks (the “Lenders”) to refinance the previous credit facility. The New Credit Agreement provides for a three-year facility for a maximum principal amount of $68.0 million consisting of: i) a $5.0 million revolving term credit facility, ii) a $38.0 million revolving term loan and iii) a $25.0 million non-revolving term loan. SIR and the Lenders also entered into a purchase card agreement providing credit of up to an additional $1.5 million. The revolving term loan was fully drawn at closing and was used to extinguish SIR’s existing senior debt. The New Credit Agreement replaces the previous Credit Agreement which, prior to the May 15, 2025 closing of the New Credit Agreement, provided SIR with a maximum principal amount of $38.7 million of senior debt.
• On June 25, 2025, SIR opened a new Scaddabush Italian Kitchen & Bar® (“Scaddabush”) restaurant in Barrie, Ontario. This new restaurant is expected to be added to the Royalty Pooled Restaurants effective January 1, 2026. Management is encouraged by the positive guest response to this new restaurant.

Subsequent Events

• On July 9, 2025, the Fund announced that its Trustees approved a $0.005 increase to the monthly cash distribution, resulting in an increase in the Fund’s monthly cash distribution from $0.095 per Fund unit to $0.10 per Fund unit, effective for the distribution paid on July 31, 2025 to unitholders of record as at July 18, 2025.
• Following the previously disclosed cybersecurity incident on September 26, 2024, SIR submitted a business interruption claim and worked with its insurance provider to determine the appropriate compensation for the disruption. Subsequent to June 30, 2025, SIR received the maximum payout for first party losses of $2.0 million under the cyber insurance policy. The approved proceeds paid to SIR were comprised of a $0.2 million reimbursement of costs directly attributable to the cybersecurity incident and $1.8 million toward the business interruption portion of the claim. The insurer had also previously paid directly to vendors $0.4 million of the $0.5 million maximum for breach response costs. The Fund is not a party to SIR’s cyber insurance policy. As such, none of the approved proceeds will flow to the Fund.

Q2 2025 Financial Results Summary

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