BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES 2025 SECOND QUARTER RESULTS AND 4.3% INCREASE TO MONTHLY CASH DISTRIBUTIONS TO UNITHOLDERS

Executive Summary

• Boston Pizza Royalties Income Fund reported strong second-quarter 2025 financial results, with Franchise Sales increasing 6.3% to $251.8 million and Same Restaurant Sales (SRS) rising 6.4%.
• Distributable Cash increased 6.1% to $8.0 million for the period, driven by higher royalty and distribution income, while the Payout Ratio decreased to 92.3%.
• The Fund announced a 4.3% increase in its monthly cash distribution rate to $0.120 per Unit, marking the highest distribution rate in the Fund's history.

Key Details

• Franchise Sales: $251.8 million for Q2 2025 (up 6.3% from $236.8 million in Q2 2024); $483.0 million Year-to-Date (up 5.3% from $458.8 million).
• Same Restaurant Sales (SRS): 6.4% for Q2 2025 (vs 1.7% in Q2 2024); 5.5% Year-to-Date (vs 0.4% in 2024).
• Net Income: $14.3 million for Q2 2025 (up from $7.5 million in Q2 2024), primarily due to a $7.9 million increase in fair value gains.
• Distributable Cash: $8.0 million for Q2 2025 (up 6.1% from $7.5 million); $15.3 million Year-to-Date (up 3.1%).
• Distributable Cash per Unit: $0.374 for Q2 2025 (up 6.3% from $0.352); $0.718 Year-to-Date (up 3.2%).
• Cash Flow from Operations: $9.9 million for Q2 2025 (up 3.4% from $9.6 million); $19.2 million Year-to-Date.
• Payout Ratio: 92.3% for Q2 2025 (down from 96.2%); 96.1% Year-to-Date; 99.6% on a trailing 12-month basis.
• Cash Balance: $5.3 million at the end of Q2 2025.
• Distribution Increase: Trustees declared a July 2025 distribution of $0.120 per Unit, payable August 29, 2025. This is an increase of $0.005 (4.3%) from the previous rate of $0.115 per Unit.
• Annualized Distribution Rate: The new rate equates to $1.440 per Unit annually (up from $1.380).
• Total Distributions Paid: Including the July 2025 distribution, the Fund has paid $470.5 million ($28.26 per Unit) across 271 monthly distributions and three special distributions.
• Royalty Income: $10.07 million for Q2 2025 (up from $9.47 million).
• Distribution Income: $3.31 million for Q2 2025 (up from $3.11 million).
• Restaurant Count: 372 restaurants in the Royalty Pool (unchanged from prior year).

Notable Quotes

• "We are pleased to announce a 4.3% increase in the monthly cash distribution rate to a new rate of $0.120 per Unit, the highest level ever in the history of the Fund", said Marc Guay, Chair of the Board of Trustees.
• "The strong continued financial performance of the Boston Pizza system, along with the Fund's growing cash balance, have enabled the trustees of the Fund to increase the monthly distribution rate payable to Unitholders."
• "While we are encouraged by recent business performance, given the ongoing economic uncertainty, the trustees of the Fund remain cautious and will continue to closely monitor the Fund's available cash balances and distribution levels, based on our goal of stable and sustainable distribution flow to Unitholders."