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Toronto Stock Exchange: BPF.UN
September 2021 distribution increased to $0.085 per unit from $0.065 per unit
VANCOUVER, BC, Oct. 8, 2021 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") (TSX: BPF.UN) announced today a cash distribution to unitholders of $0.085 per unit for September 2021. This is an increase of $0.020 per unit, or 30.8%, from the previous monthly rate of $0.065 per unit. On an annualized basis, the new monthly distribution rate equates to $1.02 per unit compared to $0.78 per unit for the previous monthly distribution rate. The September distribution will be paid on October 29, 2021 to unitholders of record at the close of business on October 21, 2021.
"We are pleased to announce a 30.8% increase to the monthly cash distribution rate to unitholders" said Marc Guay, Chair of the Board of Trustees. "While Boston Pizza's underlying restaurant business continues to suffer negative effects from COVID-19 compared to times prior to COVID-19, the recent financial performance of Boston Pizza International Inc. and the Fund, along with the Fund's growing cash balance, have enabled the trustees of the Fund to increase the monthly distribution rate payable to unitholders. However, 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."
In deciding to increase monthly cash distributions from $0.065 per unit to $0.085 per unit, the trustees of the Fund considered, among other factors, the recent financial performance of the Fund, Boston Pizza International Inc. and Boston Pizza restaurants in the Fund's royalty pool, the Fund's cash position and debt repayment obligations, and internal financial projections for the Fund, and Boston Pizza restaurants in the Fund's royalty pool for the remainder of 2021 and beyond.
The Fund is a limited purpose open ended trust with an excellent track record for investors since its IPO in 2002. Including the September 2021 distribution which is payable on October 29, 2021, the Fund will have paid out 225 monthly distributions and one special distribution totaling $364.2 million or $23.29 per Unit. The Fund earns revenue based on the franchise system sales of the 387 Boston Pizza restaurants in the Fund's royalty pool.
Boston Pizza International Inc. ("BPI") is Canada's number one casual dining brand. The Boston Pizza brand has served communities from coast-to-coast for over 56 years since opening its first restaurant in Edmonton, Alberta in 1964. Today Boston Pizza proudly remains a Canadian company with its hundreds of local franchise owners operating more dining rooms, sports bars and patios than any other single brand in the country, along with take-out and delivery. BPI has been recognized as a Platinum Member of Canada's 50 Best Managed Companies and has been a Franchisees' Choice Designation winner for eight consecutive years.
The trustees of the Fund have approved the contents of this news release.
Certain information in this press release constitutes "forward-looking information" that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, BPI, their respective subsidiaries, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Fund or its trustees expect or anticipate will or may occur in the future, including such things as, Boston Pizza's underlying restaurant business continuing to suffer negative effects from COVID-19 compared to times prior to COVID-19, the Fund remaining cautious and continuing to closely monitor the Fund's available cash balances and distribution levels, based on its goal of stable and sustainable distribution flow to unitholders, and other such matters are forward-looking information. When used in this press release, forward-looking information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan", "should", "continue" and other similar terminology. The material factors and assumptions used to develop the forward-looking information contained in this press release include the following: the COVID situation will continue to negatively impact the restaurant industry, franchise sales, same restaurant sales and the resulting royalty, distribution income and cash available for distribution to unitholders. Risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking information contained herein, relate to (among others) competition, demographic trends, consumer preferences and discretionary spending patterns, business and economic conditions, legislation and regulation, reliance on operating revenues, accounting policies and practices, the results of operations and financial condition of the Fund, BPI and their respective subsidiaries, as well as those factors discussed under the heading "Risks and Uncertainties" in the most recent Annual Information Form of the Fund. In particular, the continued payment of monthly distributions will be dependent on the financial performance of the Fund and BPI, and the Fund cautions that monthly distributions could be negatively impacted by the COVID situation. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release. Except as required by law, neither the Fund nor BPI assumes any obligation to update previously disclosed forward-looking information. For a complete list of the risks associated with forward-looking information and the Fund's business, please refer to the "Risks and Uncertainties" and "Note Regarding Forward-Looking Information" sections included in the most recent Annual Information Form of the Fund available at www.sedar.com and www.bpincomefund.com.
® Boston Pizza Royalties Limited Partnership. All Boston Pizza registered Canadian trademarks and unregistered Canadian trademarks containing the words "Boston", "BP", and/or "Pizza" are trademarks owned by the Boston Pizza Royalties Limited Partnership and licensed by the Boston Pizza Royalties Limited Partnership to Boston Pizza International Inc.
© Boston Pizza International Inc. 2021
SOURCE Boston Pizza Royalties Income Fund
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