VANCOUVER, British Columbia, July 12, 2021 (GLOBE NEWSWIRE) -- The Keg Royalties Income Fund (TSX: KEG.UN or the “Fund”) today announced that it would be increasing the monthly distributions on units of the Fund (“Units”) commencing with the July 2021 distribution. Monthly distributions will be increased from their current level of $0.035 per Unit to $0.07 per Unit. The revised monthly distribution of $0.07 per Unit has therefore been declared and will be paid on July 30, 2021 to unitholders of record on July 21, 2021. Annually, the revised distributions result in an increase from the current level of $0.42 per Unit to $0.84 per Unit. The Fund currently plans to make those distributions each month for the next three months on the traditional pattern ending on September 30, 2021.
“The relaxation of many COVID-related operating restrictions in most provinces has led to significant increases in The Keg’s sales levels in those provinces. While we have remained unable to resume inside dining in our 45 Ontario Keg locations, and some physical distancing and other COVID protocols remain in most of the other jurisdictions in which we operate, those issues are expected to be largely resolved in the near future. As that unfolds, we expect our business to return to the pre-COVID levels of sales and success we have enjoyed for over fifty years,” said David Aisenstat, CEO of The Keg. “Where we have been able to open Kegs, two things have been very clear: our loyal Keg guests are delighted to be back in droves and our dedicated Keggers are more excited than ever to provide our legendary hospitality,” added Mr. Aisenstat.
“The Trustees of the Fund are very happy to see the sales increases The Keg has generated over the past couple of months. As a result of the rebounds in sales, we are exceptionally pleased to be able to increase distributions closer to their pre-pandemic levels,” said Kip Woodward, Chairman of the Fund. “The Trustees will continue to monitor Keg's sales, as well as the Fund's cash reserves and distributable cash, in order to assess further distribution increases as The Keg's operations continue to return to their normal performance.”
The Fund is a limited purpose, open-ended trust established under the laws of the Province of Ontario that, through The Keg Rights Limited Partnership (the "Partnership"), a subsidiary of the Fund, owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd. (“KRL”). In exchange for use of those trademarks, KRL pays the Fund a royalty of 4% of gross sales of Keg restaurants included in the royalty pool.
Vancouver-based KRL is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. KRL has been named one of the "50 Best Employers in Canada" for the past eighteen years.