SIR Royalty Income Fund (SRV.UN) Q2 2025 earnings summary

Executive summary

• Q2 pooled revenue rose 8.1% YoY to $72.9M, supported by four restaurants added to the Royalty Pool in January and 1.1% consolidated same-store sales growth.

• Net earnings fell to $3.5M from $3.8M YoY; quarterly distributable cash was $2.5M, with a 94.5% payout ratio.

Financial highlights

• Q2 royalty income increased to $4.4M from $4.0M YoY; equity income from the Partnership rose to $2.9M from $2.8M.

• H1 pooled revenue was $137.7M vs. $128.0M; net earnings were $4.6M vs. $6.1M YoY.

• Q2 net earnings were $3.5M vs. $3.8M; EPS was $0.42 basic and $0.40 diluted vs. $0.46 and $0.44, respectively.

Outlook and guidance

• Growth plans include a Jack Astor’s under development in Oshawa and pursuing additional Scaddabush sites; openings and renovations will be reviewed against economic conditions.

• Continued investment in existing restaurants and new offerings aims to drive sales, earnings, dine-in visits, takeout and delivery.