SIR Royalty Income Fund (SRV.UN) Q2 2024 earnings summary

Executive summary

• Q2 2024 Pooled Revenue fell 5.1% YoY to $67.5 million; net earnings declined to $3.8 million from $4.6 million.

• Distributable cash was $2.6 million, or $0.31 per Fund Unit; distributions totaled $2.4 million, for a 92.8% quarterly payout ratio.

Financial highlights

• Q2 Pooled Revenue was $67.479 million versus $71.122 million YoY; H1 revenue was $128.006 million versus $132.488 million.

• Q2 net earnings were $3.823 million versus $4.561 million; H1 net earnings increased to $6.090 million from $4.861 million.

• Q2 Partnership royalty income was $4.049 million versus $4.267 million; H1 income was $7.681 million versus $7.949 million.

• Q2 net earnings per Fund Unit were $0.46 basic and $0.44 diluted, versus $0.54 and $0.51; H1 were $0.73 basic and $0.72 diluted.

Outlook and guidance

• Ongoing monitoring of consumer spending, inflation, interest rates, minimum-wage changes, commodity costs and supply shortages; restaurant opening and renovation schedules may be adjusted.

• London, Guelph and Don Mills Scaddabush locations are expected to enter the Royalty Pool on January 1, 2025; timing and inclusion remain subject to development plans.

• Barrie Scaddabush and Oshawa Jack Astor’s are planned developments, with no assurance they will open or join the Royalty Pool.