SIR Royalty Income Fund Reports 2025 Third Quarter Financial Results

Executive Summary

• SIR Royalty Income Fund reported its financial results for the third quarter and nine months ended September 30, 2025, highlighting a 10.4% increase in Pooled Revenue year-over-year.
• The Fund approved a 5.3% increase in monthly unitholder distributions, raising the rate from $0.095 to $0.10 per unit, effective July 31, 2025.
• Net earnings declined to $1.1 million for Q3 2025 (from $3.7 million in Q3 2024), primarily due to a $0.8 million decrease in the estimated fair value of the SIR Loan, which was partially offset by higher royalty income and revenue growth.

Key Details

• Pooled Revenue: Totalled $71.4 million for Q3 2025, an increase of 10.4% compared to $64.7 million in Q3 2024.
• Same Store Sales (SSS): Consolidated SSS growth was 3.3% for Q3 2025.
  • Jack Astor's: 0.8% growth (includes all 35 open locations; impacted by Barrie renovation closure).
  • Scaddabush: 7.8% growth (includes 10 of 14 locations).
  • Signature Restaurants: 16.2% growth (includes Reds Square One and The Loose Moose).
• Royalty Income: Increased to $4.3 million in Q3 2025 from $3.9 million in Q3 2024.
• Equity Income: Increased to $2.9 million in Q3 2025 from $2.7 million in Q3 2024.
• Net Earnings: $1.1 million for Q3 2025 ($0.13 per unit basic/diluted), down from $3.7 million ($0.45 basic / $0.43 diluted) in Q3 2024.
• Distributable Cash: Totalled $2.6 million for Q3 2025 ($0.31 per unit), with a payout ratio of 95.7%.
• Distribution Increase: Monthly cash distribution increased from $0.095 to $0.10 per Fund unit, approved July 9, 2025.
• Cybersecurity Insurance Payout: SIR received a maximum payout of $2.0 million from its cyber insurance policy for first-party losses related to a September 2024 incident ($0.2M reimbursement + $1.8M business interruption). The Fund received none of these proceeds as it is not a party to the policy.
• Operational Updates:
  • Jack Astor's in Barrie, Ontario, closed for 30 days in Q3 for renovation and launched the new "Freida's Beverage Kitchen" concept upon reopening on October 1, 2025.
  • New Scaddabush location in Barrie, Ontario (opened June 25, 2025) is expected to be added to the Royalty Pool on January 1, 2026.
  • Permanently closed Jack Astor's in Longueuil, Quebec, will cease to be a Royalty Pool restaurant effective January 1, 2026.
  • SIR has leased a property in Oshawa, Ontario, for a new Jack Astor's and has a commitment to lease a property in Windsor, Ontario, for a new Scaddabush.

Notable Quotes

• "We had solid operating performance in the quarter, with Pooled Revenue growth of 10.4% compared to Q3 last year and consolidated same store sales growth of 3.3%. In light of the solid performance of the Royalty Pooled Restaurants, the Fund Trustees approved a 5.3% increase to unitholder distributions during the quarter," said Peter Fowler, CEO of SIR Corp.
• "Scaddabush continues to have strong momentum with 7.8% same store sales growth in the quarter, and we are pursuing additional sites to expand this brand. We are also continuing our focus on immersive new guest experiences."