VANCOUVER, BC, Dec. 9, 2024 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") (TSX: BPF.UN) announced today a cash distribution to unitholders of $0.115 per unit for November 2024 (the "November 2024 Distribution"). This is an increase of $0.002 per unit, or 1.8%, from the previous monthly rate of $0.113 per unit. On an annualized basis, the new monthly distribution rate equates to $1.380 per unit compared to $1.356 per unit for the previous monthly distribution rate. The Fund also announced today a special one-time cash distribution to unitholders of $0.075 per unit (the "Special Distribution"). Both the November 2024 Distribution and the Special Distribution will be paid on December 31, 2024 to unitholders of record at the close of business on December 21, 2024.
"We are pleased to announce a 1.8% increase in the monthly cash distribution rate, along with a special one-time distribution of $0.075 per unit for our unitholders," said Marc Guay, Chair of the Board of Trustees. "Thanks to the recent solid financial performance of Boston Pizza International Inc. and the Fund, as well as our growing cash balance, we are in a position to boost the monthly distribution rate and provide an additional special cash payout."
In deciding to increase monthly cash distributions from $0.113 per unit to $0.115 per unit and declare the Special Distribution, the trustees of the Fund considered, among other factors, the recent financial performance of the Fund, Boston Pizza International Inc. ("BPI") and Boston Pizza restaurants in the Fund's royalty pool, the Fund's cash position and debt service costs, and internal financial projections for the Fund, BPI and Boston Pizza restaurants in the Fund's royalty pool for the remainder of 2024 and 2025. The trustees of the Fund believe that increasing the monthly cash distribution rate and declaring the Special Distribution at this time are appropriate given the performance of the Boston Pizza system and the Fund's growing cash balances. The trustees of the Fund will continue to closely monitor the Fund's available cash balances and distribution levels to maintain a stable and sustainable return for the unitholders.
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The Fund is a limited purpose open ended trust with an excellent track record for investors since its IPO in 2002. Including the November 2024 Distribution and Special Distribution which are payable on December 31, 2024, the Fund will have paid out 263 monthly distributions and three special distributions totaling $450.9 million or $27.34 per unit. The Fund earns revenue based on the franchise system sales of the 372 Boston Pizza restaurants in the Fund's royalty pool.
Boston Pizza is the premier casual dining brand in Canada. The first Boston Pizza restaurant opened in Edmonton, Alberta in 1964 and 60 years later Boston Pizza proudly remains a 100% Canadian company serving communities from coast-to-coast-to-coast. It boasts a vast network of local franchise owners who collectively operate the largest number of dining rooms, sports bars, and patios across the nation, complemented by robust takeout and delivery services. Boston Pizza International Inc. has been recognized as a Franchisees' Choice Designation winner and a Platinum Member of Canada's 50 Best Managed Companies for many years, and has received awards from Great Place To Work in the categories of Best Workplaces: in Canada – 100-999 Employees, in British Columbia, in Retail & Hospitality, for Mental Wellness, for Women, for Giving Back, and with Most Trusted Executive Teams.
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 the trustees of the Fund continuing to closely monitor the Fund's available cash balances and distribution levels to maintain a stable and sustainable return for the 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. 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. 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.sedarplus.ca and www.bpincomefund.com.
The trustees of the Fund have approved the contents of this news release.
