SIR Royalty Income Fund (SRV.UN) Q3 2024 earnings summary

Executive summary

• Q3 pooled revenue fell 5.8% YoY to $64.8M; Royalty Pool SSS declined 4.7%. Net earnings rose to $3.7M, primarily on a larger fair-value gain on the SIR Loan.

Financial highlights

• Q3 royalty income was $3.888M vs. $4.128M YoY; Partnership income allocated to the Fund was $2.722M vs. $2.821M.

• YTD pooled revenue was $192.802M vs. $201.279M; net earnings were $9.839M vs. $7.828M.

• Q3 net earnings were $3.749M vs. $2.968M; EPS was $0.45 basic and $0.43 diluted, vs. $0.35 basic and diluted.

Outlook and guidance

• Three new Scaddabush locations opened in 2024, including Guelph; London, Guelph and Don Mills locations are expected to enter the Royalty Pool Jan. 1, 2025.

• Two Scaddabush restaurants are planned for Barrie and Oshawa in 2025; opening and Royalty Pool inclusion are not assured, and schedules may be adjusted.

• Renovations at 13 restaurants during 2023 and YTD 2024 were reported as successful; renovation and construction schedules will be reviewed amid ongoing conditions.