SIR Royalty Income Fund Announces October 2021 Distribution

BURLINGTON, ON, Oct. 12, 2021 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) ("the Fund") today declared a cash distribution of $0.09 per unit for the period September 1, 2021 to September 30, 2021. The distribution will be payable on October 29, 2021 to unitholders of record as at the close of business on October 21, 2021.

SIR Corp. ("SIR") has advised the Fund that it intends to pay interest to the Fund on the amounts of interest that were deferred between April 2020 and June 2021 (the "Deferred Interest on the SIR Loan") by the Deferrals Agreement dated April 23, 2020 (such agreement as amended and extended, the "Deferrals Agreement"), as a result of the adverse effects of the COVID-19 pandemic on the business of SIR.  The Deferrals Agreement did not contemplate SIR paying interest on any of the deferred royalty payments or on the Deferred Interest on the SIR Loan.  However, SIR has advised the Fund that the original SIR Loan Agreement between SIR and the Bank of Montreal, that was acquired by the Fund on October 14, 2004, provides for the payment of interest on amounts owed by the Borrower to the Lender which are not paid when due, from the date on which such amount is due until such amount is paid in full at a rate equal to the normal interest rate paid on the SIR Loan of 7.5% plus 2% per annum, not compounding.  These amounts will be recorded in SIR's August 29, 2021 year-end financial statements and in the Fund's financial statements for the quarter and year to date ended September 30, 2021.  The accrued interest as at September 30, 2021 of $0.3 million will be paid by SIR to Fund in October 2021.  Interest on the remaining unpaid Deferred Interest on the SIR Loan is expected to be paid monthly until the Deferred Interest on the SIR Loan is repaid in full.

About SIR Royalty Income Fund

The Fund is a trust governed by the laws of the province of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR Loan. The Fund intends to pay distributions to unitholders on a monthly basis.

About SIR Corp.

SIR Corp. ("SIR") is a privately held Canadian corporation that owns a portfolio of 53 restaurants in Canada. SIR's Concept brands include: Jack Astor's Bar and Grill®, with 37 locations; Scaddabush Italian Kitchen & Bar® with nine locations; and Canyon Creek®, with two locations. SIR also operates one-of-a-kind "Signature" brands including Reds® Wine Tavern, Reds® Square One and The Loose Moose®. All trademarks related to the Concept and Signature brands noted above are used by SIR under a License and Royalty Agreement with SIR Royalty Limited Partnership. SIR also owns one Duke's Refresher® & Bar locations in downtown Toronto, and one seasonal Signature restaurant, Abbey's Bakehouse®, which are currently not in consideration to be part of the Royalty Pool. For more information on SIR Corp. or the SIR Royalty Income Fund, please visit www.sircorp.com.

Caution concerning forward-looking statements

Certain statements in this material change report may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund or SIR to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  When used in this document, such statements are such words as "may", "will", "expect", "believe", "plan", "anticipate", "intend", "estimate", "expected", "targeted" and other similar terminology.  These statements reflect SIR's current expectations regarding future events and operating performance and speak only as of the date of this document.  The Fund and SIR expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any changes in events, conditions or circumstances on which any statement is based, except as expressly required by law. 

In formulating the forward-looking statements contained herein, SIR has assumed that there will be no material worsening of the COVID-19 pandemic or other material outbreaks of disease or safety issues affecting humans or animals or food products, and that COVID-19 related restrictions will gradually be lifted and business will gradually improve.  In addition, SIR has assumed that other factors affecting its business will continue substantially in the ordinary course, including regulations (including those regarding employees, food safety, tobacco and alcohol), weather, taxes, foreign exchange rates and interest rates, and that there will be no unplanned material changes in its facilities, equipment, customer and employee relations, lease arrangements or credit arrangements. These assumptions, although considered reasonable by SIR at the time of preparation, may prove to be incorrect.  For more information concerning the Fund's risks and uncertainties, please refer to the Fund's periodic interim filings and its March 31, 2021 Annual Information Form.

SOURCE SIR Royalty Income Fund