SIR Royalty Income Fund (SRV.UN) Q1 2025 earnings summary

Executive summary

• Pooled Revenue rose 7.0% YoY, driven by four restaurants added to the Royalty Pool; consolidated same store sales declined 1.3%.

• Net earnings declined to $1.0 million from $2.3 million, primarily due to a fair-value loss on the SIR Loan versus a gain in Q1 2024.

Financial highlights

• Pooled Revenue was $64.7 million, up from $60.5 million; royalty income rose to $3.9 million from $3.6 million.

• Partnership income allocated to the Fund was $2.5 million, similar to $2.5 million in Q1 2024.

• Net earnings were $1.0 million, or $0.12 per unit, versus $2.3 million, or $0.27 per unit, in Q1 2024.

Outlook and guidance

• Consumer spending is being monitored amid inflation, interest rates, Canada-U.S. tariffs, minimum-wage changes, rising commodity costs and supply shortages.

• Innovation and new product and service offerings are intended to increase dine-in visits and capture take-out and delivery growth; restaurant opening schedules will be reviewed as conditions evolve.

• Two Scaddabush locations are planned for leased Barrie and Oshawa properties; opening and Royalty Pool inclusion are not assured.