TORONTO, May 10 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) ("the
Fund") today declared a cash distribution of $0.083 per trust unit for
the period April 1, 2011 to April 30, 2011. The distribution will be
payable on May 31, 2011 to unitholders of record at the close of
business on May 19, 2011.
The cash distribution of $0.083 per trust unit reflects the obligation
of the Fund to make tax payments as a result of certain legislative
changes to the tax treatment of income trusts, commonly referred to as
Specified Investment Flow Through Tax ("SIFT Tax"), effective January
1, 2011. As announced in August 2010, the Fund continues to operate as
an income trust. The SIFT Tax applies to the Fund at the estimated
prevailing corporate tax rate of approximately 28.25% for 2011 and, as
a result, cash available for the Fund to distribute to Unitholders is
reduced by that amount.
As a result of the SIFT Tax effective January 1, 2011, cash
distributions to Unitholders are classified for tax purposes as
eligible dividends. Unitholders who are Canadian residents and hold
their Units in a non-tax deferred account may claim the dividend tax
credit for eligible dividends, which would if applicable reduce the
after tax impact of the SIFT Tax. Unitholders are advised to consult
their own tax advisors to determine the impact of this change in tax
laws on the distributions from their investment in the Fund.
Notice of Timing of Q1/11 Results
For reporting periods ended January 1, 2011 and later, Canadian public
issuers are required to prepare their financial statements under
International Financial Reporting Standards ("IFRS"). The Canadian
Securities Administrators ("CSA") have extended the deadline for
TSX-listed issuers filing their first interim financial statements
under IFRS to 75 days following quarter end from the usual 45 days
following quarter end. SIR Royalty Income Fund will report its
financial results for the first quarter of 2011 within the 30-day
extension period, which for the Fund ends June 14, 2011, to allow
additional time for preparation of its financial statements under IFRS.
About SIR Corp.
SIR is a privately held Canadian corporation that owns and operates a
portfolio of 47 restaurants in Canada. SIR's concept brands include:
Jack Astor's Bar and Grill®, with 31 locations; Alice Fazooli's!®, with
five locations; and Canyon Creek Chop House® , with eight locations.
SIR also operates one-of-a-kind "signature" brands in downtown Toronto,
which comprise the upscale reds®, Far Niente® /FOUR® / Petit Four®, and the Loose Moose Tap & Grill® .
All trademarks related to the concept and signature brands noted above
are used by SIR under a license agreement with SIR Royalty Limited
Partnership in consideration for a Royalty, payable by SIR to the
Partnership, equal to six percent of the revenue of the 46 restaurants
currently included in the Royalty pool. For more information on SIR
Corp. or the SIR Royalty Income Fund, please visit www.sircorp.com.
About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the province of Ontario that
receives distribution income from its investment in the SIR Royalty
Limited Partnership and interest income from the SIR Loan. The Fund
intends to pay distributions to unitholders on a monthly basis
Caution concerning forward-looking statements
Certain statements in this news release may constitute "forward-looking" statements which involve known
and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Fund to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
When used in this document, such statements are such words as "may",
"will", "expect", "believe", "plan", "anticipate", "intend", "estimate"
and other similar terminology. These statements reflect SIR
Management's current expectations regarding future events and operating
performance and speak only as of the date of this document. The Fund
and SIR expressly disclaim any obligation or undertaking to publicly
release any updates or revisions to any forward-looking statements
contained herein to reflect any change in expectations with regard
thereto or any changes in events, conditions or circumstances on which
any statement is based, except as expressly required by law.
In formulating the forward-looking statements contained herein,
Management has assumed that business and economic conditions affecting
SIR's restaurants and the Fund will continue substantially in the
ordinary course, including without limitation with respect to general
industry conditions, general levels of economic activity (including in
downtown Toronto), regulations (including those regarding employees,
food safety, tobacco and alcohol), weather, taxes, foreign exchange
rates and interest rates, that there will be no pandemics or other
material outbreaks of disease or safety issues affecting humans or
animals or food products, and that there will be no unplanned material
changes in its facilities, equipment, customer and employee relations,
or credit arrangements. These assumptions, although considered
reasonable by Management at the time of preparation, may prove to be
incorrect. For more information concerning the Fund's risks and
uncertainties, please refer to the Fund's periodic interim filings,
and/or its March 31, 2011 Annual Information Form.
SOURCE SIR Royalty Income Fund
For further information:
| Peter Fowler |
| || || || || || || Lawrence Chamberlain |
Tel: (416) 815-0700 ext. 257