SIR Royalty Income Fund (SRV.UN) Q4 2024 earnings summary

Executive summary

• 2024 Pooled Revenue was $255.0 million, down from $266.0 million in 2023; Royalty Pool same-store sales declined 2.6%.

• New restaurant openings expanded the portfolio, while a September cybersecurity incident disrupted operations and weighed moderately on revenue.

Financial highlights

• Q4 2024 Pooled Revenue was $62.3 million, down 3.8% YoY; FY 2024 revenue was $255.0 million, down from $266.0 million.

• FY 2024 net earnings were $12.0 million versus $19.1 million in 2023; Q4 net earnings were $2.2 million versus $11.3 million.

• FY 2024 net earnings per Fund Unit were $1.44 basic and $1.40 diluted, versus $2.28 and $2.14 in 2023.

• FY 2024 royalty income was $15.3 million and Partnership income allocated to the Fund was $10.7 million, versus $16.0 million and $11.1 million in 2023.

Outlook and guidance

• Priorities include innovation, new product and guest-service offerings, and increasing dine-in visits while capturing takeout and delivery demand.

• Two Scaddabush locations are planned for Barrie and Oshawa; openings and inclusion in the Royalty Pool are not assured, and schedules may change.

• Construction and renovation schedules will be reviewed and adjusted as needed amid economic conditions and related operating pressures.