SIR Royalty Income Fund Reports 2025 Fourth Quarter and Year-End Financial Results

Executive Summary

• SIR Royalty Income Fund reported strong fourth-quarter and full-year 2025 financial results, driven by significant growth in pooled revenue and same-store sales across its restaurant portfolio.
• The Fund declared a special year-end cash distribution of $0.035 per unit in December 2025 and subsequently approved a 5% increase to monthly unitholder distributions, raising the monthly rate from $0.10 to $0.105 per unit effective January 2026.
• The Royalty Pool expanded to 52 restaurants as of January 1, 2026, with the new Scaddabush location in Barrie added and the closed Jack Astor's in Longueuil removed; the new Jack Astor's + Freida's in Oshawa is expected to join the pool in January 2027.

Key Details

• Q4 2025 Financials:
  • Pooled Revenue: $73.1 million (up 17.4% from $62.3 million in Q4 2024).
  • Royalty Income: $4.4 million (up from $3.7 million in Q4 2024).
  • Equity Income from Partnership: $2.8 million (up from $2.6 million in Q4 2024).
  • Net Earnings: $2.8 million (up from $2.2 million in Q4 2024).
  • Net Earnings Per Unit: $0.33 (basic and diluted).
  • Distributable Cash: $2.5 million ($0.30 per unit).
  • Cash Distributed: $2.8 million, resulting in a payout ratio of 111.3% (includes special distribution).
• Full Year 2025 Financials:
  • Pooled Revenue: $282.2 million (up 10.7% from $255.0 million in 2024).
  • Royalty Income: $16.9 million (up from $15.3 million in 2024).
  • Equity Income from Partnership: $11.1 million (up from $10.7 million in 2024).
  • Net Earnings: $8.5 million (down from $12.0 million in 2024).
  • Net Earnings Per Unit: $1.01 (basic) / $1.01 (diluted).
  • Distributable Cash: $10.0 million ($1.19 per unit).
  • Cash Distributed: $10.1 million, resulting in a payout ratio of 101.3%.
• Same-Store Sales (SSS) Growth:
  • Q4 2025 Overall SSS: +8.0% (vs -1.5% in Q4 2024).
  • 2025 Overall SSS: +2.8% (vs -2.6% in 2024).
  • Jack Astor's Q4 SSS: +8.7% (driven by guest traffic, pricing, and weather/Blue Jays impact).
  • Scaddabush Q4 SSS: +6.0%.
  • Signature Restaurants Q4 SSS: +8.9%.
• Distributions:
  • Special Year-End Distribution: $0.035 per unit declared Dec 10, 2025, paid Dec 31, 2025.
  • Monthly Distribution Increase: 5% increase approved Jan 7, 2026, raising monthly distribution from $0.10 to $0.105 per unit, effective for the Jan 30, 2026 payment.
• Operational Updates & Royalty Pool Changes:
  • Royalty Pool Count: 52 restaurants as of Jan 1, 2026 (35 Jack Astor's, 14 Scaddabush, Reds Square One, The Loose Moose Tap + Grill, Edna + Vita).
  • New Additions: Scaddabush in Barrie added Jan 1, 2026.
  • New Openings: Jack Astor's + Freida's in Oshawa opened Dec 3, 2025 (expected to be added to Royalty Pool Jan 1, 2027).
  • Closures: Jack Astor's in Longueuil, Quebec removed from pool Jan 1, 2026; Duke's Refresher in Toronto closed.
  • Renovations: Jack Astor's in Barrie re-opened Oct 1, 2025, after 30-day closure for renovation and new "Freida's Beverage Kitchen" concept launch.
• Outlook & Strategy:
  • Three new Scaddabush locations planned for Windsor, Aurora, and Kanata, Ontario (leases signed, no assurance of opening or inclusion in Royalty Pool).
  • New Jack Astor's + Freida's in Oshawa expected to join Royalty Pool Jan 1, 2027.
  • Credit Agreement effective May 15, 2025, supports continued growth of Scaddabush.
  • Monitoring macroeconomic factors including inflation, interest rates, tariffs, and minimum wage changes.

Notable Quotes

• "We ended the year with strong fourth quarter performance, highlighted by Pooled Revenue growth of 17.4% compared to Q4 last year and same store sales growth of 8.0%. Guest traffic increased at our restaurants, particularly in Toronto, supported by the postseason run of the Toronto Blue Jays, and we continue to benefit from the popularity of our Scaddabush brand," said Peter Fowler, CEO of SIR Corp.
• "Supported by the solid performance of the Royalty Pooled Restaurants, the Fund Trustees approved a special year-end cash distribution to unitholders in December 2025, as excess distributable cash was available, and subsequently approved a 5% increase to monthly unitholder distributions in January 2026."
• "We remain focused on growing the Royalty Pool. In January 2026, the new Scaddabush location in Barrie was added, meaning that all 14 Scaddabush locations are now part of the Royalty Pool. And in January 2027, the new Jack Astor's restaurant in Oshawa, which includes the Freida's Beverage Kitchen concept, is expected to be added to the Royalty Pool," continued Mr. Fowler.