BURLINGTON, ON, June 12, 2012 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) ("the Fund") today announced a 6.0% increase in the monthly cash distribution from $0.083 per Fund unit to $0.088 per Fund unit. On an annualized basis, this is an increase from $0.996 per Fund unit to $1.056 per Fund unit.
The new distribution amount will commence with the cash distribution declared today of $0.088 per Fund unit for the period May 1, 2012 to May 31, 2012. The distribution will be payable on June 29, 2012 to unitholders of record at the close of business on June 21, 2012.
"We are pleased to announce an increase in our monthly cash distribution, the result of our confidence in the stability of the Royalty pool" said Peter Fowler, President and Chief Executive Officer of SIR Corp. "The Fund continues to be committed to delivering stable and sustainable distributions to our unitholders. While we are encouraged by recent growth in our sales, we recognize the need to remain prudent in the current environment. This is the fourth distribution increase since the Fund's inception in October 2004."
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 32 locations; Alice Fazooli's!®, with four 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 47 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 contained 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 do not undertake 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 applicable securities laws.
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 30, 2012 Annual Information Form.
All of the forward-looking statements made in this report are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Fund or SIR.
For further information:
Tel: (416) 815-0700 ext. 257
Email: [email protected]